The wireless sector is expected to expand over the next several years, growing from $38.3 billion last year to $49 billion in 2007, according to a new report from industry analyst firm International Data Corp. That's welcome news considering the slide that the industry suffered last year, posting a 22% decline in spending.
''The essential rationale for deployment of 3G networks -- gaining spectrum efficiencies, easing network capacity constraints, lowering operating costs and expanding revenue opportunities through provisioning of data services -- remains intact,'' says Shiv Bakhshi, research manager for IDC's Wireless and Mobile Network Infrastructure program.
Bakhshi adds, in IDC's report 'Worldwide Wireless and Mobile Network Infrastructure Forecast and Analysis', that the increasing popularity of picture messaging, along with the proliferation of public WLANs and hotspots will spur the deployment of network infrastructure and legitimize the wireless industry in the eyes of corporate buyers.
While wireless services are hogging the technology spotlight these days, Bakhshi notes that traditional voice services will garner its fair share of network infrastructure spending. Quality issues are expected to be the main drivers in that category.