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.
The cost of taking a FTTH connection to all of Europe's homes could be as low as €137 billion or as high as €360 billion, if you give any credence to studies from two of the region's broadband lobby groups.
5G promises connectivity 10 to 100 times faster than 4G networks, with latencies less than 1msec, making real-time applications such as tactile Internet useable over mobile networks for the first time. However, mobile operators will need to deploy ten times as many radio sites, each with highly reliable plug-and-go multi-gigabit connections, to achieve that level of performance.
In this UBB2020 webinar, Heavy Reading's Gabriel Brown and ADTRAN's Ryan McCowan will:
Discuss 5G densification strategies and their network impact
Outline the different requirements for backhaul and fronthaul needed to support 5G densification strategies
Explore next-generation PON-fixed access technologies and software defined networking principles as emerging solutions to accelerate 5G densification
Outline how NG-PON2, the next-generation multi-gigabit fiber technology, supports the x-haul (fronthaul, backhaul and crosshaul applications) requirements of 5G
NG-PON2 broadband access technology is already in trials with multiple major network operators but is it too early for the commercial deployment of this next generation ultra-broadband technology? In this UBB2020 live radio show, ADTRAN's Kurt Raaflaub provides an update on NG-PON2 developments and chats to Light Reading's Ray Le Maistre about how this technology could play a role in production access networks in 2017.