Global mobile operators are expected to spend more than $18bn through 2019 in expanding their network capacity, in a bid to cater for 3G and 4G broadband demand.
The latest report from ABI Research noted that despite majority of the telecom market being hit with a dip during the first quarter, packet core expansion would continue with Just-In-Time deployment.
ABI Research practice director, Joe Hoffman, said that operators closely manage their CapEx and OpEx with a sharp eye on the Top Line and while NFV gains momentum, current business needs require continued investment in the Packet Core.
"Continued advances in semiconductor technology as manifested with Commercial IT scale will regularly deliver a 20% to 30% cost performance improvement," Hoffman added.
"Moore's Clock keeps on ticking, and SDN/NFV brings WebScale and Moore's advantages to the telecom community."
With the developed markets continuing to lead, the rest of the world requires further capacity as operators broaden with the demand, the report adds, seeking operators to make their network deployment choices to meet the growth.
Regardless of Mobile BroadBand traffic growth, packet core spending will shrink same as WebScale use and efficiencies take hold, the report noted.
"As the telecom Mmrket transforms to WebScale, infrastructure vendors are nearly ready to ride this wave rather get swamped," Hoffman added.
The latest Juniper Research report found that mobile connections to the super-fast 4G network are expected to reach over one billion by 2017, trailing to 1.8 billion by 2018.