IHS, a top market research agency, today said the mobile infrastructure market slowed down dramatically in India in Q1 2016. Spectrum issues and various deals between local mobile operators have impacted the mobile infrastructure market in India.
Interestingly, India was the only BRICS (Brazil, Russia, India, China and South Africa) nation bright spot last year. India has more than 900 million mobile subscribers.
IHS revealed the substantial decrease in the growth in mobile infrastructure spending in India at a time when top telecoms are in the process of expanding their 3G and 4G networks across the country. Reliance Jio Infocomm and Bharti Airtel are the top two telecoms that are investing in 4G networks. Vodafone and Idea Cellular have also committed funds in 4G networks.
Due to bad business conditions, India’s spectrum auction will happen in July 2016. IHS pointed out some of the deals have impacted the mobile infrastructure market. Some of the telecom spectrum deals include Airtel-Videocon and Airtel-Aircel. Reliance Jio is relying on Reliance Communications for 4G roll outs. Reliance Communications is in the final process of grabbing MTS India and Aircel.
Global mobile infrastructure market
The size of the macrocell mobile infrastructure market revenue fell 18 percent quarter on quarter to $10 billion in Q1 2016, according to Stephane Teral, senior research director, mobile infrastructure and carrier economics, IHS Technology.
The dip in macrocell mobile infrastructure market was dragged by all regions except countries such as Japan, North America and Mexico. Both India and China did not assist.
Mobile infrastructure peaked in China last year. Telecom analysts are expecting double-digit declines in evolved NodeB (eNodeB) deployments in China this year.
The mobile infrastructure market decreased 8 percent year on year basis.
2G, 3G and 4G mobile technologies experienced sharp decline. The decline was for the first time since the beginning of LTE rollouts in 2012.
Revenue for software that goes with 2G, 3G and 4G networks grew 17 percent in 2015 over the prior year to top $15.2 billion, mostly driven by LTE-Advanced (LTE-A) upgrades.
Ericsson is leading the macro 2G/3G/4G radio in Q1 2016. Huawei remained number-two, followed closely by Nokia (including Alcatel-Lucent’s share).
Software for 2G, 3G and 4G networks is forecast to grow at a 2015–2020 compound annual growth rate (CAGR) of 9 percent and is projected to top $23 billion in 2020.
The report said the global LTE infrastructure market revenue fell 23 percent quarter on quarter and dropped 6 percent year on year.