According to ABI Research, investments in 4G long term evolution (LTE) networks is expected to drive mobile telecom capex in Latin America to $6.1 billion in 2014.
Further, the research firm forecasts that the operators will also undertake upgradation and expansion of 3G wideband code division multiple access (WCDMA) and 4G LTE networks. These initiatives in turn will lead to radio access network-related spending accounting for 40 per cent of the total capex invested in telecom networks in Latin America. Meanwhile, investment in small cell base stations will also grow at 40 per cent in 2014 to reach $484 million.
ABI Research states that majority of chief technology officers are prioritising investment in the core network functions. At present, internet packet traffic and value-added 3G and 4G services are playing an increasingly important role in catering to the telecom requirements of users in the region.
The research firm estimates that over the next two years the number of LTE subscribers in Latin America will increase from 2.33 million to 23 million. ABI Research concludes that Latin America is expected to witness significant investments in 3G, 4G and small cell networks by players such as Telefonica Chile, TIM Brazil and Avantel.
