Life Delights

Even though the mobile industry is considered to be the least affected by recession, plans for 3G and 4G investments have received a setback. The Australian has reported a much gloomier situation than believed so far. According to the paper, companies like Orange and T-Mobile are planning to delay their investments in 4G development. Moreover, the impending 3G internet upgrades are also likely to take a hit.

The report goes on to say that due to lesser profits, companies want to reduce their capital expenditure. This contradicts the recent statement coming out of the Mobile World Congress in Barcelona that investment will not be slowed down in the mobile industry. At the GSMA Leadership Summit, it was even declared that mobile broadband could help improve global economic conditions through massive investments.

There is no doubt that the mobile broadband segment had so far been providing growth to mobile operators facing stagnant voice revenues, but there is question mark over whether it can continue to do so in the current situation.

Before the economic conditions went haywire, huge investments were expected to take place for network upgrades and faster mobile broadband services. But now it seems the wait for the consumers just got longer and they will have to be content with the existing broadband infrastructure. It is difficult for anyone to set a date for economic revival, but until that happens, it seems most companies will be in a wait and watch mode.