#2 – Network infrastructure
Price pressure on mobile network infrastructure will decrease for the first time in seven years
For the first time in seven years – since the entrance of the large Chinese equipment vendors – we are seeing the beginnings of an end to excessive price pressures. A number of factors have led to this development, and finally vendors will begin to see pricing that is in line with the real cost of delivering mobile broadband.
The infrastructure market is maturing and normalizing, and the result is that there is less aggressive pricing to win market share. Ericsson and Huawei have created a clear leadership and will not contribute to price wars. At the same time NSN, Alcatel-Lucent and even ZTE are under financial pressure and cannot continue to try to buy market share.
For operators, the need for constant and ongoing network modernization increases the demand for more capable hardware, greater capacity and greater network optimization. As the complexity of planning and implementing a multi-service network increases, operators are taking a more holistic approach to their sourcing activities, putting less focus on price and more on finding the right partner. Without the right equipment partner, operators will not be able to manage the spiralling growth in mobile data consumption.