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Mobile capital expenditure in Western Europe contracted 3.8 percent quarter-on-quarter (QoQ) even though mobile operators are building out coverage for 4G, and to a lesser extent enhancing capacity and coverage of their 3G networks. Not only was QoQ spend down but also, year-on-year (YoY) growth was down significantly (19 percent). “Overall capital expenditure for the region is expected to drop 12 percent to $14.4 billion for the year. Western European carriers are at different stages in development which will very likely impact 4G adoption patterns,” said Jake Saunders, VP for Forecasting at ABI Research:
For Telefonica, capital investment was a mixed bag in Europe. In Spain, capex for the 1H-2012 year was €787 million, down -12.7 percent YoY. The operator claims that because it has achieved substantial “quality indicators improvements,” it meant the operator could reduce capex. In UK, capex reached €375 million by June 2012 with a YoY increase of 9.5 percent. Telefonica UK improved coverage and capacity of its mobile network, and refarmed 900 MHz spectrum in urban areas. In Germany, the boost in capital expenditure of €271 million in 1H-2012 was driven by an expansion in LTE network deployment.
ABI Research’s study, “Mobile Capital Expenditure Forecast: Western Europe,” focuses on the Western European region and includes base station and core network data. It is part of ABI Research’s Mobile Capex Database Service which includes Market Data, Insights, and Competitive Assessments.
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