Tuesday, May 21, 2013

CTIA: CAPEX Hits All Time High for U.S. Operators

U.S. mobile operators invested $30 billion in their networks in 2012, representing an all time high in capital expenditure spending for one year.  This is part of a "virtuous cycle" that is boosting the networking industry and the American economy, said Steve Largent, President of CTIA, speaking at the opening of CTIA 2013 in Las Vegas.

The CAPEX spending by U.S. operators accounted for 25% of all wireless network CAPEX worldwide.  It also represented an investment of $94 for each mobile subscriber in the U.S., compared to a global average of $16 per subscribers by other mobile operators worldwide.

Largent said the virtuous circle has enabled the U.S. to leap ahead in mobile technologies.  The biggest LTE networks are now in the U.S.  The mobile platforms developed in the U.S. are second to none.  And the ecosystem of app developers is stronger in the U.S. than anywhere else.

Largent also spoke of the urgency to make additional spectrum available in the U.S. market.  He expects that it the ambitious target of adding 500 MHz of spectrum for commercial is realized by 2020, it could increase the nation's GDP by $800 billion.

Finally, Largent previewed the much larger "SuperShow" that CTIA is planning in partnership with IFA for September 2014.