Mobile CAPEX to Grow Over 4% YoY in 2010

A recently published report from ABI Research shows that wireless carriers around the world are set to increase the capital expenditure for improving their networks during the ongoing year, after getting through two rather rough years. According to the research firm, mobile CAPEX is expected to register a growth of more than 4 percent on a yearly basis during 2010, although it contracted by 2.7 percent during the last year.

The key elements of the growth will be the investments made in 3.5G technologies such as HSPA and HSPA+, the report notes, adding that the roll-out of 4G LTE networks by carriers like Verizon Wireless and Telia Sonera should also help the increase. Moreover, ABI Research also says that the fastest growth in capital expenditures will be registered in South America, where the CAGR should be of 10 percent between 2009 and 2015.

At the same time, the research firm also states that aggregate service revenue bounced back in 2009 and that should help carriers fund their CAPEX plans in 2010. The mobile services revenues went up all around the world by 5.9 percent on a yearly basis between 3Q 2009 and 3Q 2008, and the growth was of 8.8 percent in North America during the same time frame, ABI Research's report shows.

”The rapid adoption of smartphones will drive service revenue growth in 2010, as more consumers adopt data plans to take advantage of their handsets’ features,” says analyst Bhavya Khanna. Vice President and CRO Stuart Carlaw added, “The growing popularity of Internet-capable handsets will drive the increasing adoption of mobile data among consumers. ABI Research forecasts mobile Internet service revenues to grow at a CAGR of 9.4% between 2009 and 2015.”

The growth in mobile Internet revenues was of more than 17 percent on a yearly basis in developed markets like North America and Western Europe, the research firm also notes. Moreover, it seems that the trend is expected to continue in 2010 too. As most of you might already know, the sales of smartphones went up during the last year, even if the mobile market shrunk globally. Additional details on the new report can be found on the research firm's website.