Downward Trend in Mobile Network Capital Expenditures in 2007

Pyramid Research says that it expects a slowdown in capital expenditures (Capex) by mobile network operators (MNOs) in 2007. Even though MNO Capex volume increased at double-digit rates in 2005 and 2006, new technologies and changing business models are affecting the Capex landscape and consequently the fortunes of equipment vendors.

"We are seeing a trend toward subsiding Capex levels, even in some developing markets," says Daniel Locke, Pyramid Research analyst. "In mature markets, many operators have completed the bulk of their 3G investments and are focused on less costly investments such as software, applications, and minimal hardware upgrades to support rising mobile data traffic."

Posted to the site on 14th June 2007