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The remainder of the chapter will unfold as In developing markets, current service availability
follows: and penetration rates for mobile broadband
remain low: for example, there is a 19 per cent
• Section 1.2 provides an overview of penetration rate in in Africa and 23 per cent in
telecommunication and ICT infrastructure the Asia and Pacific region. Penetration rates are
investment trends worldwide. even lower for fixed broadband services, with a
0.4 per cent rate in Africa, 3 per cent in the Arab
• Sections 1.3 and 1.4 examine investment and States and 7.7 per cent in the Asia and Pacific
implementation approaches for PPP projects. region . But an increase in investment in 3G and
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(in time) LTE mobile infrastructure is expected to
• Section 1.5 investigates alternative funding drive growth and increase service penetration,
approaches that can be used to facilitate the leading to the higher revenues depicted in Figure
roll-out of broadband infrastructure. 2.2. Aided by increasing gross domestic produce
(GDP) per capita, economies such as China, Brazil
• Section 1.6 provides an overview of financial and India are expected to see increased revenue
innovations for funding investments, mostly in growth – driven mainly by investment in mobile
higher-layer services and applications. infrastructure and mobile broadband services.

• Section 1.7 summarizes some conclusions In developed markets, current service availability
regarding the investment trends explored in and penetration rates remain high for mobile
the chapter. data – 64 per cent in Europe, for example. In
addition, nearly 79 per cent of all fixed broadband
• Sub-section 1.7.2 provides a summary of best- connections globally are in Europe and in the
practice regulatory considerations. developed markets in Asia. Mobile operators
have been making significant investments in LTE
networks and offering attractive mobile data
1.2 Global investment trends services and applications. As a result, revenue
growth will come from higher consumer spending.
The global telecommunication marketplace is vast, Growth will be particularly high in Japan, Korea
and each market varies depending on its own (Rep. of) and the United States (which are the
unique set of macro-environmental characteristics. world leaders in terms of LTE take-up and data
Fixed and wireless telecommunication operators usage), but also in some European markets (as LTE
and higher-layer service providers – whether in gains traction). Incumbent and alternative fixed
developed or developing markets – have had to operators in developed markets also have been
adapt to local conditions. Consequently, they investing in fibre networks to create ultra-fast
have developed a range of different strategies to broadband networks capable of speeds of up to
remain competitive and to invest in broadband 1 gigabit per second (Gbit/s).
infrastructure. This section provides a summary
of the investment trends being exhibited The sections below discuss the fixed and wireless
by operators investing in fixed and wireless investment trends in further detail.
broadband networks and higher-layer services.

1.2.2 Fixed network investment trends
1.2.1 Investment: driving telecommunication
revenue growth Operators’ investment choices will vary in terms of
different fibre technologies. Capital expenditures
Operator investment in fixed and wireless on fibre infrastructure (expressed as "fibre to
networks is driving revenue growth in both the x" or "FTTx," with x standing for "home" or
developing and developed markets. The global "premises") are expected to total USD 144.2 billion
telecommunication services market will be worth between 2014 and 2019. USD 52.5 billion of that
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an estimated USD 1.79 trillion in 2019, up from an will be in Western Europe and USD 55.1 billion will
estimated USD 1.68 trillion in 2014 (Figure 1.2). be in developing markets (see Figure 1.3) .
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