The mobile broadband market till now has been seen as one of the few places immune to recession. However, it seems the confidence in the industry could be misplaced, as the economic downturn is forcing operators to cut down on their capital expenditure and slowing down the process of network upgrades.

The GSMA Leadership Summit attended by the movers and shakers of the global mobile industry concluded recently with the statement that Mobile broadband could act as a major force in bringing the economy out of recession. It was highlighted that mobile broadband is providing growth to companies that were earlier losing revenue in both voice call volumes and handset sales.

However, the sad reality is that the optimism is not being reflected in the operators’ revenues and profits. The recession has effectively forced all major players to defer their 3G mobile broadband upgrades and 4G investment plans scheduled for this year.

The Mobile World Congress that concluded in Barcelona last week assured everyone that investments will not be held back. But confirming the emerging trend, a report by The Australian has revealed that major operators are planning to slow down expenditure on 3G and 4G. This includes the likes of Orange, Vodafone and T-Mobile. The industry giants are waiting for the economy to get back on track again and it is clear that the mobile broadband sector too has finally fallen prey to ill effects of the global economic slump.

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