Can Wireless Network Infrastructure Market Sustain Momentum?
Zacks Investment Research | Nov 27, 2017 09:06PM ET
As per reports from SNS Research, the wireless or mobile network infrastructure industry is expected to grow at a rate of 2% over the next three years.Per projections, the market will witness an annual spending of $56 billion by 2020, up from $53 billion in 2017.
The wireless network infrastructure industry continues to expand on the back of increased investments by mobile operators. Notably, the operators have increased investments in Heterogeneous Network or HetNet infrastructure. The spending will be allocated to small cells, carrier Wi-Fi and DAS (Distributed Antenna Systems) and 5G NR (New Radio) rollouts — beginning in 2019, to cope up with the increasing capacity and coverage requirements. Further, mobile operators are keen to shift towards a C-RAN (Centralized RAN) architecture.
By the end of 2020, C-RAN, small cells, DAS and carrier Wi-Fi, together with their fronthaul and backhaul segments, will account for more than 45% of total infrastructure spending. With increasing demand for LTE (Long-Term Evolution) and its latest updated versions, LTE, LTE-Advanced and LTE-Advanced Pro networks are expected to generate more than $950 billion in service revenues annually by 2020.
New market players are striving to strengthen foothold as mobile operators continue transition to virtualized network infrastructure. Notably, carriers are opting for wider range of hardware and technologies in order to upgrade their networks.
Meanwhile, annual investments in LTE infrastructure for public-safety purposes have also attracted everyone’s attention in the domestic market. Public safety LTE infrastructure initiatives are being pursued around the world and the segment is expected to exceed $800 million by the end of 2017. Multiple LTE networks dedicated to public safety are already in use,globally.
To this end, AT&T Inc (NYSE:T) and First Responder Network Authority (FirstNet) have Zacks Investment Research
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