Cisco Getting More of Orange’s Network Upgrade Budget



Cisco involved in Orange’s planned 5G test in Romania

Cisco Systems (CSCO) is one of the telecom equipment and technology suppliers helping Orange (ORAN) with its preparation for the 5G network, which is expected to begin rolling out globally by 2020.

Orange tapped Cisco to be part of its 5G network trial set to begin in 2H18 in Romania, one of Orange’s European markets.

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Cisco collaborating with Samsung on Orange’s 5G test

Samsung (SSNLF), which last year dethroned Intel (INTC) as the world’s top semiconductor company by revenue, is also involved in Orange’s scheduled 5G network trial in Romania. Samsung is collaborating with Cisco Systems on that project.

Samsung is also helping Verizon (VZ) with its initial commercial 5G network rollout in the US. Verizon is aiming to launch 5G fixed wireless services in up to five US markets by the end of 2018.

5G to take up a huge portion of operators’ infrastructure budgets

Getting involved in a 5G project is a big deal. According to SNS Research, 5G-related spending could consume ~40.0% of mobile operators’ network infrastructure spending by the end of 2025. It’s estimated that 2G, 3G, and 4G network infrastructure spending reached $53.8 billion in 2017.

Telecom service providers such as Orange, Verizon, and AT&T (T) have maintained a high level of capital spending in recent years. This spending can be expected to increase as the 5G rollout gains momentum in the next few years.

Orange’s capital spending was 7.4 billion euros in 2017. The company spent 8.5 billion euros on capital projects in 2016 and 7.8 billion euros in 2015.


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