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Cambridge, MA, April 21, 2005 – The wave of mobile operator consolidation in North America will reduce infrastructure expenditures by $2.5bn during the 2005-2009 period according to the latest Pyramid Research forecasts. Through the combination of networks, the New Cingular will reduce CAPEX by $5bn over a five year period compared to AT&T and Cingular’s combined CAPEX projections compiled last year. Similarly, the merger of Canada’s Rogers and Microcell will result in a $170m decrease in equipment investment.
While there is an overall decrease in infrastructure investment from consolidation, Pyramid Research Senior Analyst Taha Rangwala states, “Consolidation opens a significant opportunity for vendors to increase revenues by providing network management and optimization services – especially as operators must integrate networks and redeploy infrastructure within and outside their current network coverage.” As an example, Rangwala expects “Cingular [to] redeploy roughly 25-30% of AT&T’s cellular infrastructure to expand coverage into new markets and using the remaining base stations to support existing subscribers and fill coverage gaps in key metro markets.”
Dampening the impact on equipment sales from market consolidation is greater than expected increases in minutes of use and subscriber uptake. Rangwala concludes, “The recent activity is a hit to equipment vendors that can be countered by landing service contracts for network management and other services.”
About Pyramid Research’s Mobile CAPEX Coverage
Pyramid Research tracks mobile operator infrastructure CAPEX globally by analyzing carriers’ network infrastructure requirements based on network planning techniques, including detailed coverage and capacity models. Join Pyramid Research Senior Analyst Taha Rangwala on May 4th at 10am EDT (2pm GMT) for a conference call discussing North American mobile CAPEX. Email info@pyr.com for more details.
About Pyramid Research
Pyramid Research is the growth strategy expert for the global communications, media and technology industries. Founded in 1986, Pyramid provides research and consulting services in over 100 countries - helping clients to go beyond existing boundaries by tracking and exploiting business opportunities worldwide.
Pyramid Research has offices in Cambridge, MA (Corporate Headquarters), Miami, London and Hong Kong. For more information on Pyramid Research visit www.pyramidresearch.com.
Press Contact:
Jared Jost
Pyramid Research
jjost@pyr.com
(617)494-1515
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