Telecoms spending rises as firms prepare for 4G

Global spending on telecoms equipment has begun to pick up for the first time since the start of the financial meltdown, according to analyst firm Yankee Group.

It predicts that spending will increase from $275.7bn (£168.7bn) in 2011 to $302.2bn (£185.0bn) by 2014 – driven largely by increased spending on 4G mobile technology.

“Now that we’ve passed through the worst of the macroeconomic doldrums, 2011 represents the beginning of a new cycle of capital spending in the telecommunications market,” said Brian Partridge, a Yankee Group analyst.

Earlier this week, BT and mobile operators Everything Everywhere announced a 4G trial will kick off in Cornwall this September.

Meanwhile, UK telecoms watchdog Ofcom has predicted that while the 4G services – based on LTE technology – will increase the mobile bandwidth available, businesses will demand yet more.

It plans to auction off additional spectrum to meet that demand – although those plans have met with fierce criticism from MPs, who argue bidders should be forced to cover a higher proportion of the country.