5G

Europe Mobile Network Infrastructure Spending Forecast, 2017-2027: From 3G to LTE to 5G

Both LTE and 3G networks provide mobile service to the vast majority of mobile subscribers in Europe. To meet the increasing demand for mobile bandwidth, especially to support video, the major mobile operators are in the process of upgrading their LTE networks with features from the latest 3GPP releases and densifying the cellular architecture. To support additional LTE capacity, mobile operators are also increasingly refarming 2G and 3G spectrum, as well as acquiring additional spectrum resources through auctions and private transactions. The next major iteration of mobile networks will be 5G, the first versions of which are expected to be deployed in Europe starting in late 2018.

The demand for mobile data bandwidth will continue to rise and mobile operators will strive to provide sufficient capacity to meet the growing needs of the subscriber base, while minimizing unnecessary network spending. As well as spending on new network builds, this includes minimizing network operating costs wherever possible.

This market study presents a model for the mobile network infrastructure investment and network operating costs, and presents a forecast for the cost of building, deploying and operating LTE and 5G networks in Europe beginning in 2017 and continuing through 2027. The build forecast is further detailed by mobile network component (RAN, front/backhaul, and core) and generation (LTE and 5G). In addition to the forecasts, the market study provides detailed information on evolving mobile network architectures, 5G networks, and how the European mobile industry is progressing towards 5G.


Key Questions Answered

  • What are the various 3GPP standards leading up to 5G and what are they likely to contain?
  • What is 5G? How is it defined and/or viewed right now? When will 5G be deployed?
  • What are some of the goals and use cases for 5G?
  • How will European mobile operators get from their 4G LTE networks of today to tomorrow’s 5G networks?
  • What is Non-standalone New Radio (NSA-NR)?
  • How will the amount of data traffic carried on LTE and 5G networks grow in Europe in the next ten years?
  • How big is the LTE and 5G infrastructure opportunity in Europe in the next ten years?
  • What is the share of infrastructure spending for the network components of RAN, fronthaul/backhaul, and core in the next ten years?
  • What is the share of infrastructure spending for LTE and 5G in the next ten years?
  • What are the expected mobile network operating costs in the next ten years?
  • Who are some of the major vendors that will support LTE and 5G networks over the next ten years?

Who Should Read

  • Mobile operators
  • Infrastructure OEMs
  • Small cell product and solution vendors
  • Backhaul service providers and equipment OEMs
  • Financial analysts and investors.

Table of Contents

  • Abstract
  • Executive Summary
  • Methodology
    • Network Model
    • Current Model Assumptions
    • 5G Model Assumptions
    • Variance from mobile operator financial disclosures
  • Basic Mobile Operator Network Architecture
    • Devices
    • MIMO
    • Massive MIMO
    • Wireless Spectrum
    • Cell Sites
    • Fronthaul & Backhaul
    • Mobile Network Core
  • 3GPP Releases and Standards
    • 3GPP Release 11
    • 3GPP Release 12
    • 3GPP Release 13
    • 3GPP Release 14-16
    • Carrier Aggregation
    • COMP
    • ICIC and eICIC
  • What is 5G?
    • Potential 5G Use Cases
    • Latency
    • 5G Network Requirements
    • 5G Timeline
    • Potential Requirements of 5G
  • 5G Network Needs
    • Spectrum Needs
    • How LTE Might Evolve
    • Challenges Along the Road to 5G
    • What will the first 5G networks look like?
    • MIMO & Beamforming
    • MU-MIMO
    • Massive MIMO and mmWave
    • Beamforming
    • Use of MIMO and Beamforming
  • What the Industry is Doing to Prepare for 5G
    • Densification
    • In-building coverage
    • D-RAN and C-RAN
      • eCPRI
    • LTE Release 12 and Release 13
    • Virtualization and SDN
  • What European Mobile Operators are Doing to Prepare for 5G
    • European Union
    • Spectrum
    • Other European Developments
    • Operator Developments
      • Deutsche Telekom
      • EE
      • Elisa
      • MTS
      • Orange
      • Telecom Italia
      • Telefónica
      • Telia
      • Turkcell
      • Vodafone Spain
      • Vodafone UK
  • Europe Mobile Connections and Data Traffic Forecast
    • Europe Mobile Connections Forecast
    • Europe Mobile Data Traffic Forecast
  • Europe Infrastructure Build Cost Forecast
    • Methodology and Assumptions
    • Europe Mobile Infrastructure Build Spending by Network Component
    • Europe Mobile Infrastructure Build Spending by Generation
  • Europe Mobile Network Operating Cost Forecast
  • Europe Total Mobile Network Cost Forecast
  • Major Mobile Network Infrastructure Vendor Profiles
    • Airspan Networks
    • American Tower
    • Argela
    • ClearSky Technologies
    • CommScope
    • Crown Castle
    • Ericsson
    • ExteNet Systems
    • Fujitsu Network Communications
    • Gemtek
    • Huawei
    • ip.access
    • Juni
    • Juniper Networks
    • NEC
    • Nokia Networks
    • Oracle
    • Quortus
    • Samsung Electronics
    • SBA Communications Corporation (SBA)
    • Sercomm
    • SpiderCloud Wireless (Corning)
    • ZTE Corporation
  • Definitions
  • About iGR
    • Disclaimer

List of Tables

  • Table 1: Forecasted Europe Mobile Connections, 2017-2027(Millions)
  • Table 2: Assumed Total Europe Network Usage, 2017-2027(EBs)
  • Table 3a: Europe Mobile Network Infrastructure Build Spending, 2017-2022($M)
  • Table 3b: Europe Mobile Network Infrastructure Build Spending, 2023-2027($M)
  • Table 4a: Europe Mobile Network Infrastructure Build Spending, 2017-2022(%)
  • Table 4b: Europe Mobile Network Infrastructure Build Spending, 2023-2027(%)
  • Table 5a: Europe Mobile Data Traffic by Generation, 2017-2022 (%)
  • Table 5b: Europe Mobile Data Traffic by Generation, 2023-2027 (%)
  • Table 6a: Europe Mobile Network Infrastructure Build Spending by Generation, 2017-2022 ($M)
  • Table 6b: Europe Mobile Network Infrastructure Build Spending by Generation, 2023-2027 ($M)
  • Table 7a: Europe Mobile Network Operating Costs, 2017-2022 ($M)
  • Table 7b: Europe Mobile Network Operating Costs, 2023-2027 ($M)
  • Table 8a: Total Europe Mobile Network Build and Operating Spending, 2017-2022 ($M)
  • Table 8b: Total Europe Mobile Network Build and Operating Spending, 2023-2027 ($M)

List of Charts and Figures

  • Figure A: Europe Mobile Network Infrastructure Build Spending by Generation, 2017-2027 ($M)
  • Figure B: Europe Mobile Network Operating Costs, 2017-2027 ($M)
  • Figure C: Total Europe Mobile Network Build and Operating Spending, 2017-2027 ($M)
  • Figure D: Total Europe Mobile Network Build and Operating Spending, 2017-2027 ($M)
  • Figure 1: Basic Components of Cellular Voice/Data Network
  • Figure 2: Typical Macrocell Site
  • Figure 3: Cell Site Backhaul Capabilities and Use Cases, Wired and Wireless
  • Figure 4: Overview of the EPC
  • Figure 5: Carrier Aggregation, LTE-Advanced
  • Figure 6: Overview of COMP
  • Figure 7: Example of Intercell Interference
  • Figure 8: Example of Coordinated Resource Blocks via ICIC
  • Figure 9: Blanking of subframes in eICIC
  • Figure 10: Wired Broadband Weighted Median Latency, Reported by FCC in 2016
  • Figure 11: Timeline for IMT-2020 (5G)
  • Figure 12: Beamforming and MIMO
  • Figure 13: 2x2 MIMO
  • Figure 14: Conceptual view of MU-MIMO
  • Figure 15: Another take on MU-MIMO
  • Figure 16: Analog and Digital Beamforming for mmWave
  • Figure 17: Prototype Massive MIMO Antenna, Lund University
  • Figure 18: Other Massive MIMO Antenna Designs
  • Figure 19: Massive MIMO Antenna Designs / Systems
  • Figure 20: Conceptual view of Analog and Digital Beamforming
  • Figure 21: Inter-relation of Beamforming and MIMO
  • Figure 22: Forecasted Europe Mobile Connections, 2017-2027 (Millions)
  • Figure 23: Assumed Total Europe Network Usage, 2017-2027 (EB/year)
  • Figure 24: Europe Total Mobile Network Infrastructure Build Spending, 2017-2027 ($M)
  • Figure 25: Europe Mobile Network Infrastructure Build Spending by Component, 2017-2027 ($M)
  • Figure 26: Europe Mobile Network Infrastructure Build Spending by Component, 2017-2027 (%)
  • Figure 27: Europe Mobile Data Traffic by Generation, 2017-2027 (%)
  • Figure 28: Europe Mobile Network Infrastructure Build Spending by Generation, 2017-2027 ($M)
  • Figure 29: Europe Mobile Network Infrastructure Build Spending by Generation, 2017-2027(%)
  • Figure 30: Europe Mobile Network Operating Costs, 2017-2027 ($M)
  • Figure 31: Total Europe Mobile Network Build and Operating Spending, 2017-2027 ($M, Total)
  • Figure 32: Total Europe Mobile Network Build and Operating Spending, 2017-2027 (%)

For additional information on the Europe Mobile Network Infrastructure Spending Forecast, 2017-2027: From 3G to LTE to 5G market study, please contact Iain Gillott, at (512) 263-5682 or by email.