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Networks & Service Platforms

Capacity and CAPEX Required for Mobile Broadband thru 2014 Is there a CAPEX Funding Gap



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Report Summary:

Mobile Broadband service providers have been bombarded recently with dire predictions as they face geometric growth in traffic and linear growth in revenues.

In December 2010 a report commissioned by four of Europe's biggest operators Deutsche Telekom, France Telecom, Telecom Italia and Telefonica and titled ‘A Viable Future Model for the Internet’ projected that there will be insufficient capital investment available to fund the required incremental capacity for HSPA+ and LTE mobile networks. At Mobile World Congress in February 2011 Telefonica’s Chairman César Alierta estimated a cumulative shortfall of €21 billion for the period 2010 - 2014 for the 27 EU countries.

We therefore decided to estimate the actual likely Capital Investment required both globally and by region based on GigaBytes(GB) of capacity required and lower cost for HSPA+ and LTE infrastructure per GB.


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