As you might expect, global telecommunications industry spending on infrastructure will be driven largely by launches of Long Term Evolution (LTE) wireless networks in many countries in 2012 and for the next several years.
According to the Telecommunications Industry Association, infrastructure spending in the United States, for example, will continue to grow at double-digit rates through 2014.
Overall growth will moderate somewhat from the 2011 gain, but TIA still expects increases of more than five percent annually during the next three years.
The U.S. market will continue to grow at slower rates than international markets, but the gap will narrow. Between 2005 and 2011, growth in international markets averaged 7.6 percent compounded annually, 4.1 percentage points faster than the 3.5 percent compound annual increase in the United States.
During the next four years, the difference will be only two percentage points, with international spending increasing at a 7.3 percent compound annual rate compared to the U.S. compound annual growth rate of 5.3 percent.
Global telecommunications industry spending rose 6.3 percent in 2011, comparable to six percent in 2010, according to the Telecommunications Industry Association.
More moderate growth in international regions in 2011 offset an improvement in the U.S. market. International spending rose 6.5 percent in 2011, down from the 7.6 percent increase in
2010, while growth in the United States accelerated from one percent in 2010 to 5.9 percent in 2011.
The slowdown in international regions principally reflected a decrease in spending on wireless devices following the surge in 2010. Excluding wireless devices, spending in international
regions rose 7.2 percent in 2011.
In the United States, growth was fueled primarily by a 24 percent jump in landline and wireless infrastructure spending, an increase in spending on wireless devices stemming from
the growing popularity of smartphones, and growth in cloud computing, data center construction, internetworking equipment and videoconferencing equipment. Underlying these gains was the jump in data traffic, which either caused or was the result of growth in each category except videoconferencing, TIA reports.