Mobile operator spending for wireless core
gateways will exceed $1billion in 2011.

The deployment of LTE networks is the
primary driver for increased spending on gateways, which is driving Evolved
Packet Core (EPC) spend. Wireless core gateway spend is expected to be $1.1
billion in 2012, of which LTE EPC spend will be $588 million.

“There are approximately 35 LTE
networks in commercial service today and that number will grow to more than 100
next year,” said Aditya Kaul, practice director, mobile networks, ABI Research.

This growth in LTE networks has almost
doubled total mobile gateway network spend between 2006 and 2011.

The LTE EPC spend consists of P-Gateway,
S-Gateway, MME, and eHRPD equipment, which account for LTE EPC deployments in
both WCDMA and CDMA networks.

The vendors benefiting from the increase in
EPC spend include the five major wireless network equipment vendors such as
Alcatel-Lucent, Ericsson, Huawei, Nokia Siemens Networks, and ZTE as well as
router vendors including Cisco Systems, Juniper Networks, and Tellabs.

Though some operators are able to upgrade
their 3G core networks to EPC networks to support LTE, the majority are
installing new EPC networks.

“Operators’ existing core networks are
stretched to capacity by dramatic increases in mobile broadband data traffic
and most view LTE deployment as an opportunity to install the latest core
network technologies for improved network operations,” said Jim Eller,
principal analyst, wireless infrastructure, ABI Research.

By Telecomlead.com Team

[email protected]