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.
Over the next two years, approximately 60% of service providers (both large and small) will adopt virtualization on a wide scale across their networks, according to the latest survey report from Ovum. Why are providers making these moves? Is there an easy way to start?
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Current network infrastructure and the move to virtualization
Benefits and challenges of network virtualization
How providers can get started
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