Tuesday, February 3, 2009

Dell'Oro: Mobile Infrastructure Market Prepares for Rough Times

The mobile infrastructure market is forecasted to experience three successive years of revenue decline, according to a new report from the Dell'Oro Group.. According to the report, between 2009 and 2011, the total market revenue is expected to contract 7 percent. The report also shows that combined GSM and CDMA markets represented over 70 percent of the total infrastructure market revenue in 2008. By 2013, these technologies will represent less than 20 percent.

"The revenue contraction in 2009 is directly attributable to the downturn in the economy," stated Scott Siegler, Senior Analyst of Mobile Infrastructure research at Dell'Oro Group."Looking beyond 2009, while we anticipate seeing significant growth in the 3G, and even 4G technologies, this growth will not be enough to outpace the steep and rapid declines in the GSM and CDMA markets. It is not until 2012, when the WCDMA market returns to its double-digit growth rate, and LTE revenue triples, that the total infrastructure market will return to becoming a growth market. We forecast revenue growth to exceed 10 percent between 2012 and 2013," continued Siegler.