Massive spending on 3G networks by China's three mobile carriers will cause spending on wireless infrastructure equipment in the nation to surge by 27.7% to reach US$6.3 billion in 2009, marking a peak for expenditures, according to iSuppli Corp.
"After a strong increase in purchases of wireless communications gear in China in 2009, 2010 will bring a 2.4% decline to US$6.1 billion as China Telecom completes purchasing for its massive rollout of 3G cell-phone base-station transceivers," said Will Kong, analyst for China Research at iSuppli. "Revenue will continue to decline in the following years as the carriers move beyond the initial deployment stage of their 3G services."
The carriers' massive investment in infrastructure is expected to result in the number of 3G subscribers in the nation rising to more than 100 million in 2013, up from 338,000 in 2008.