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Can Wireless Network Infrastructure Market Sustain Momentum?
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As per reports from SNS Research, the wireless or mobile network infrastructure industry is expected to grow at a rate of 2% over the next three years.Per projections, the market will witness an annual spending of $56 billion by 2020, up from $53 billion in 2017.
The wireless network infrastructure industry continues to expand on the back of increased investments by mobile operators. Notably, the operators have increased investments in Heterogeneous Network or HetNet infrastructure. The spending will be allocated to small cells, carrier Wi-Fi and DAS (Distributed Antenna Systems) and 5G NR (New Radio) rollouts — beginning in 2019, to cope up with the increasing capacity and coverage requirements. Further, mobile operators are keen to shift towards a C-RAN (Centralized RAN) architecture.
By the end of 2020, C-RAN, small cells, DAS and carrier Wi-Fi, together with their fronthaul and backhaul segments, will account for more than 45% of total infrastructure spending. With increasing demand for LTE (Long-Term Evolution) and its latest updated versions, LTE, LTE-Advanced and LTE-Advanced Pro networks are expected to generate more than $950 billion in service revenues annually by 2020.
New market players are striving to strengthen foothold as mobile operators continue transition to virtualized network infrastructure. Notably, carriers are opting for wider range of hardware and technologies in order to upgrade their networks.
Meanwhile, annual investments in LTE infrastructure for public-safety purposes have also attracted everyone’s attention in the domestic market. Public safety LTE infrastructure initiatives are being pursued around the world and the segment is expected to exceed $800 million by the end of 2017. Multiple LTE networks dedicated to public safety are already in use,globally.
To this end, AT&T Inc (T - Free Report) and First Responder Network Authority (FirstNet) have introduced a new developer program focused on public safety innovation. The program will supply applications to a new FirstNet app store. These apps will be utilized by responders who will select appropriate solutions to operate on the FirstNet network.
In March, the U.S. telecom behemoth was selected by FirstNet to build and manage the first nationwide broadband network dedicated to America's police, firefighters and emergency medical services. The network will cover 50 states, five U.S. territories and the District of Columbia, including rural communities and tribal lands in those states and territories. The consortium includes Motorola Solutions Inc. (MSI - Free Report) , General Dynamics Corp. (GD - Free Report) , Sapient Consulting and Inmarsat Government.
Accordingly, the market for U.S. public safety network for first responders and civil protection services is becoming intensely competitive. In August, telecom giant Verizon Communications Inc. (VZ - Free Report) announced plans of dedicating network capacity to emergency services providers.
LTE has been primarily considered a supplementary mobile broadband technology in the public safety sector. This is because LTE enables high-bandwidth data applications which cannot be delivered over existing narrowband LMR (Land Mobile Radio) systems.
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Can Wireless Network Infrastructure Market Sustain Momentum?
As per reports from SNS Research, the wireless or mobile network infrastructure industry is expected to grow at a rate of 2% over the next three years.Per projections, the market will witness an annual spending of $56 billion by 2020, up from $53 billion in 2017.
The wireless network infrastructure industry continues to expand on the back of increased investments by mobile operators. Notably, the operators have increased investments in Heterogeneous Network or HetNet infrastructure. The spending will be allocated to small cells, carrier Wi-Fi and DAS (Distributed Antenna Systems) and 5G NR (New Radio) rollouts — beginning in 2019, to cope up with the increasing capacity and coverage requirements. Further, mobile operators are keen to shift towards a C-RAN (Centralized RAN) architecture.
By the end of 2020, C-RAN, small cells, DAS and carrier Wi-Fi, together with their fronthaul and backhaul segments, will account for more than 45% of total infrastructure spending. With increasing demand for LTE (Long-Term Evolution) and its latest updated versions, LTE, LTE-Advanced and LTE-Advanced Pro networks are expected to generate more than $950 billion in service revenues annually by 2020.
New market players are striving to strengthen foothold as mobile operators continue transition to virtualized network infrastructure. Notably, carriers are opting for wider range of hardware and technologies in order to upgrade their networks.
Meanwhile, annual investments in LTE infrastructure for public-safety purposes have also attracted everyone’s attention in the domestic market. Public safety LTE infrastructure initiatives are being pursued around the world and the segment is expected to exceed $800 million by the end of 2017. Multiple LTE networks dedicated to public safety are already in use,globally.
To this end, AT&T Inc (T - Free Report) and First Responder Network Authority (FirstNet) have introduced a new developer program focused on public safety innovation. The program will supply applications to a new FirstNet app store. These apps will be utilized by responders who will select appropriate solutions to operate on the FirstNet network.
In March, the U.S. telecom behemoth was selected by FirstNet to build and manage the first nationwide broadband network dedicated to America's police, firefighters and emergency medical services. The network will cover 50 states, five U.S. territories and the District of Columbia, including rural communities and tribal lands in those states and territories. The consortium includes Motorola Solutions Inc. (MSI - Free Report) , General Dynamics Corp. (GD - Free Report) , Sapient Consulting and Inmarsat Government.
Accordingly, the market for U.S. public safety network for first responders and civil protection services is becoming intensely competitive. In August, telecom giant Verizon Communications Inc. (VZ - Free Report) announced plans of dedicating network capacity to emergency services providers.
Currently, AT&T and Verizon carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bottom Line
LTE has been primarily considered a supplementary mobile broadband technology in the public safety sector. This is because LTE enables high-bandwidth data applications which cannot be delivered over existing narrowband LMR (Land Mobile Radio) systems.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>