The U.S. telecommunications industry is presently riding a growth trajectory, and the momentum is likely to continue in 2015 as well. Telecommunications is one of the few industries to have seen rapid technological improvement even during the recession.
Owing to the significance of telecommunications as an infrastructure product, we expect the overall economic dynamics to shift in the industry’s favor. Unprecedented growth in high-speed mobile Internet traffic, in particular of wireless data and video, has transformed the industry into the most evolving, inventive and keenly contested space.
Any new network standard aims at providing faster data connectivity, quick video streaming with high resolution and rich multimedia applications. The rising demand for technically superior wireless products has been the silver lining for the telecom industry in an otherwise tough environment.
The ongoing Advanced Wireless Servies-3 (AWS-3) spectrum auction being conducted by the Federal Communications Commission (FCC) has so far accumulated a record-breaking $45 billion. Unexpectedly high bidding for AWS-3 Spectrum clearly indicates that telecom operators expect the demand for mobile data and video services to rise in the future.
The FCC also plans to conduct a broadcast incentive (spectrum at the hands of TV broadcasters) auction in 2016 to ease the pressure on wireless operators and thereby ensure uninterrupted transmission of data/voice packets.
The spectrum license winners from different regions will upgrade their respective networks to gain a competitive edge. Wireless network standards are continuously evolving around the globe to offer faster speeds. This in turn will result in increased capital expenditures and a surge in demand is likely to be seen by telecom infrastructure gear manufacturers.