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Jun. 14, 2007

Overall, capital expenditures by wireless network operators are expected to be reduced this year, according to a report from Pyramid Research.

Even if wireless operators increased their spending at double-digit rates in 2005 and 2006, new mobile technology and rapidly changing business models are affecting the wireless landscape.

Additionally, these changes are consequently affecting the fortunes and thus the overall success of many equipment vendors, noted Pyramid Research.

Daniel Locke, a Pyramid Research analyst noted in the report that "overall, we are seeing a definite trend towards reduced capital expenditure levels, even in some developing markets."

Locke added "in mature markets, many wireless operators have completed the bulk of their 3G investments."

He also said that "carriers are now focused on less expensive investments such as software, applications and minimal hardware upgrades to support rising mobile data traffic."

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Source: Wireless Week