Leading CSPs pull forward 5G-related investments, driving CAGR increase in the North America TIS market

According to Technology Business Research, Inc.’s (TBR) Telecom Infrastructure Services North America Market Forecast 2018-2023, the CAGR of the TIS market in North America increased compared to last year’s forecast as leading communication service providers (CSPs) in the U.S. committed to accelerate and broaden the scope of their 5G-related initiatives.

In the past 12 months, the five largest mobile operators in the U.S. have made formal commitments to deploy 5G at scale across their U.S. footprints over the next few years. This acceleration in deployment timetables is primarily in response to competitive and government pressures. Spend pertaining to these overarching trends will be partly offset by cost savings from legacy infrastructure decommissioning, cloud, and NFV/SDN as well as synergies that are realized from M&A.

Though 5G will be the primary driver of the TIS market in North America over the next five years, digital transformation-related initiatives, which encompass network and business model transformation, will also support TIS market development. With the competitive landscape in the U.S. facing significant disruption from M&A events and new entrants, CSPs will be under pressure to respond by continuing their transformations. Digital transformation requires rearchitecting networks to become cloudified, virtualized and intelligent. AT&T (NYSE: AT&T), Verizon (NYSE: VZ), Comcast (Nasdaq: CMCSA) and T-Mobile (Nasdaq: TMUS) are expected to drive the bulk of digital transformation-related spend through the forecast period.

TBR’s Telecom Infrastructure Services North America Market Forecast provides annual analysis and forecasting of the deployment, maintenance, professional services and managed services markets for network and IT suppliers.