Mobile capex declined despite the upcoming 4G launch

In the second quarter of this year, the expenditure of the capital on the mobile networks has decline in the Western Europe.

According to the ABI Research, the financial expenditures to develop the mobile networks in the Western Europe had declined although the carriers are getting ready for the upcoming launch of the next generation 4G service.

The analyst disclosed that the total network expenditure has declined quarter on quarter from 3% to 9% in just three months by the end of the month June in this year whereas year-on-year development also declined considerably by 19%.

The capital expenditure of T-Mobile in the first half yearly was only 4.9% that is lower in relation to the same period of the last year; Vodafone is also trying to cut down its network expenditure by up to £100 million capital year on year.

Jake Saunders who is the vice president for forecasting at ABI predicted that the capital expenditure by the end of this year is set to decline from 12% to 4 billion as the whole for this year.

He also explained that the carriers in the Western Europe are at the different level of development that will probably impact the adoption plan of 4G.

The sole operator in the UK is ready to rollout the next generation 4G mobile broadband service in this year is Everything Everywhere that is planning to expand the networks across 16 major cities in the coming three months.

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