Monday, March 8, 2010

Dell'Oro: Mobile Infrastructure Market Continues Decline

Mobile infrastructure market revenues declined 13 percent in the fourth quarter of 2009 to $10 billion, according to a recently published report by Dell'Oro Group. The report indicates the market contraction was a result of steep declines in the GSM market, which more than offset a nearly 50 percent growth of the WCDMA market.


Although the WCDMA and WiMAX markets are forecast to realize double-digit growth during 2010 and initial LTE revenue is expected in the second half of this year, the steep declines in the GSM and CDMA markets will result in 2010 total market revenue being flat with 2009.


"Although 3G spending by China Mobile and China Unicom, which drove the market in the first half of the year, came to a halt in the second half of last year, the massive growth in data traffic resulted in operators worldwide heavily investing in their 3G networks," commented Scott Siegler, Senior Analyst of Mobile Infrastructure research at Dell'Oro Group. "To keep pace with the strong demand, mobile data traffic is putting on their networks, operators are investing in both the expansion of their network footprints with new Node B deployments, as well as adding additional capacity to their existing footprint. We expect that growth in mobile data traffic will double in 2010 and forecast operators to deploy over 40 percent more Node B's this year," continued Siegler.
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