According to a study by IHS iSuppli, China’s investment in next-generation 4G wireless technology LTE will double in 2011 as major Chinese telecom operators upgrade services.
Although China currently has very little capital expenditure on LTE, operators' expenses will increase rapidly in the next few years. It is estimated that LTE capital expenditure in 2011 will reach 100 million U.S. dollars, which is double the 2010 figure. It will grow to 300 million U.S. dollars next year, and will rise to 600 million U.S. dollars in the next year, and it will reach 1.3 billion U.S. dollars by 2014.
In contrast, for most of the next three years, capital expenditures on 2G and 3G wireless technologies will decline. 2G and 3G technologies continue to be used in China. China has the largest population in the world and the third largest territory.
There are three different 3G technologies in China that have been put into commercial applications. This is unique in the world. After the large-scale reorganization of China's telecommunications industry in 2008, three operators launched three 3G technologies. However, as 3G networks are now collectively upgraded to 4G, all three operators may turn to LTE.
China Mobile is the largest operator in China and the largest number of subscribers in the world. It is expected that it will launch LTE this year. In an LTE cooperation trial, China Mobile has already joined forces with Verizon and Vodafone. Equipment suppliers participating in the trial included Alcatel-Lucent, Ericsson, Motorola, Nokia Siemens Networks and Nortel Networks. The trial aims to deploy more than 100 base stations in six cities, covering more than 100 million users.
China Telecom and China Unicom are two other operators in China. They will deploy LTE in 2012-2013. IHS understands that China Telecom is waiting for LTE to mature and then fully invest. China Unicom will first deploy LTE in major cities such as Shanghai and Beijing while considering commercial deployment after 2013.
Although each operator has its own timetable, its development of next-generation 4G technology has received support from the Chinese government. IHS believes that if it wants to have a positive and early impact on the market, especially when Chinese operators conduct business in an increasingly competitive environment, equipment suppliers should occupy a favorable position so that they can take advantage of the current wireless business and move to a new standard. Opportunity to come.
Currently, 3G technology accounts for a large proportion of China's wireless capital expenditure. However, 3G will only account for 55% of capital expenditure in 2014, which is lower than the 67% this year. IHS iSuppli's research shows that on the contrary, the proportion of China's wireless spending on LTE will rise to about 36% after three years, and the proportion of total spending in 2011 is actually insignificant.
Although China currently has very little capital expenditure on LTE, operators' expenses will increase rapidly in the next few years. It is estimated that LTE capital expenditure in 2011 will reach 100 million U.S. dollars, which is double the 2010 figure. It will grow to 300 million U.S. dollars next year, and will rise to 600 million U.S. dollars in the next year, and it will reach 1.3 billion U.S. dollars by 2014.
In contrast, for most of the next three years, capital expenditures on 2G and 3G wireless technologies will decline. 2G and 3G technologies continue to be used in China. China has the largest population in the world and the third largest territory.
There are three different 3G technologies in China that have been put into commercial applications. This is unique in the world. After the large-scale reorganization of China's telecommunications industry in 2008, three operators launched three 3G technologies. However, as 3G networks are now collectively upgraded to 4G, all three operators may turn to LTE.
China Mobile is the largest operator in China and the largest number of subscribers in the world. It is expected that it will launch LTE this year. In an LTE cooperation trial, China Mobile has already joined forces with Verizon and Vodafone. Equipment suppliers participating in the trial included Alcatel-Lucent, Ericsson, Motorola, Nokia Siemens Networks and Nortel Networks. The trial aims to deploy more than 100 base stations in six cities, covering more than 100 million users.
China Telecom and China Unicom are two other operators in China. They will deploy LTE in 2012-2013. IHS understands that China Telecom is waiting for LTE to mature and then fully invest. China Unicom will first deploy LTE in major cities such as Shanghai and Beijing while considering commercial deployment after 2013.
Although each operator has its own timetable, its development of next-generation 4G technology has received support from the Chinese government. IHS believes that if it wants to have a positive and early impact on the market, especially when Chinese operators conduct business in an increasingly competitive environment, equipment suppliers should occupy a favorable position so that they can take advantage of the current wireless business and move to a new standard. Opportunity to come.
Currently, 3G technology accounts for a large proportion of China's wireless capital expenditure. However, 3G will only account for 55% of capital expenditure in 2014, which is lower than the 67% this year. IHS iSuppli's research shows that on the contrary, the proportion of China's wireless spending on LTE will rise to about 36% after three years, and the proportion of total spending in 2011 is actually insignificant.
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