Wednesday, August 6, 2008

Dell'Oro: China's Telecom Restructuring to Impact Mobile Infrastructure Market

The recently announced restructuring of the telecom industry in China is expected to greatly benefit the mobile infrastructure market over the next five years, according to a new report from Dell'Oro Group. According to the report, growth in China will help WCDMA market revenues and base station shipments surpass those of the GSM market in 2011.

"We believe the restructuring of the Chinese telecom industry will be completed by the first quarter of 2009," stated Scott Siegler, Analyst of Mobility Infrastructure research at Dell'Oro Group. "Once the restructuring is complete, we expect 3G licenses to be issued to the three mobile operators. China Mobile will be issued a TD-SCDMA license. The reorganized China Unicom is likely to be issued a WCDMA license, and we forecast the operator will begin deploying its WCDMA network beginning in 2010. In addition, we believe in the second half of 2009, the CDMA market will begin to benefit from increased investment by China Telecom, as it focuses on its single CDMA network, rather than the GSM and CDMA networks China Unicom has been maintaining. We also believe China Telecom will begin launching its CDMA 1X network beginning in 2010. This new growth of CDMA in China will help to offset the declines of CDMA in North America, Korea and Japan," continued Siegler.