HSPA+ makes better ROI sense: Aircom

Mobile operators can cut capex by two-thirds if they upgrade to HSPA+ rather than deploy LTE, according to telecoms consultancy Aircom.
 
Analysis of the infrastructure required to meet growing demand for mobile broadband services reveals UK operators would need to invest $750 million (€611 million) in the first year to deploy an LTE network, but that HSPA+ would cost just $250 million over the same period.
 
US carriers could save $1.19 billion by using HSPA+, while savings for Gulf state and Asia Pacific carriers would be $225 million and $155 million respectively.
 
The most important factor in deciding a future network technology is return on investment (ROI), said Aircom’s Fabricio Martinez.
 
“Due to the low capex investment and new revenue opportunities, deployment of HSPA+ will allow operators to see ROI in three years,” Martinez said.
 
“[And that’s a…] perfect timing to upgrade to LTE, when that technology’s ecosystem has matured, devices have come to market, and equipment prices have reduced.”
 
Aircom pegs a tier-one US carrier’s first year LTE capex at $1.8 billion, due in part to operators’ high 700MHz auction licensing costs, compared with $750 million for the UK.
 
In recent times, a number of operators initially supporting LTE have since announced HSPA+ strategies as an interim measure, according to Martinez.
 
"We are seeing operators delay their LTE plans now, and we expect this trend to continue," Martinez told Reuters.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.