Overall telecom and cable operator capital expenditure is set to shrink in 2017 but investments in fixed line infrastructure will see an uptick, according to the analyst team at industry and equity research firm MKM Partners .
In a research note issued early Wednesday, the MKM team noted that it expects total global service provider capex (including cable) to decline by about 1% to US$314 billion, with wireless network capex receding year-on-year by about 4% as mobile operators step back from major macro 4G network rollouts in the run up to the 5G era.
Wireline capex, though, is expected to grow by about 3% to $147 billion, with investments in 100G+ and ultra-broadband access networks driving that rise, according to the MKM team.
And the MKM team agrees. "We view the expected shift toward Wireline spending in 2017-2018 as pre 5G-spending since it will require a much more robust Wired Optical, Access, back-haul and front-haul infrastructure to be able to achieve the 10x-100x Wireless speed increases over 4G that Carriers envision for 5G in 2020 and beyond," notes the research team. "Another driver of the Wireline spend is the strategy many Carriers now have of becoming video content providers in addition to Access providers," it adds.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.