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13 August 2009


Mobile infrastructure market to fall 10% over next five years

Mobile infrastructure market revenues will fall almost 10% over the next five years, forecasts Dell’Oro Group’s ‘Mobility 5-Year Forecast Report’. The retreat will be greatest in the first two years, when the market is forecast to reach revenue levels not seen since 2004. The market is then expected to recover slowly, with low yearly single-digit growth through 2013.

“The market has been experiencing and will continue to experience very steep price erosion,” says Scott Siegler, senior analyst of Mobile Infrastructure research. “Competition among vendors, particularly in India and China that have increasingly become instrumental market drivers, is putting a tight squeeze on vendors’ margins,” he adds. “As over 300 million new subscribers are added per year and the consumption of mobile data traffic begins to grow in leaps and bounds, operators will deploy the necessary capacity to keep up with the demand. However, offsetting our forecast of high double-digit growth in total base-station shipments over the next five years is a 40% decline in base-station average selling prices.”

Also, initial LTE (long-term evolution) rollouts are expected in 2010, and eNode B shipments in 2013 will represent nearly 10% of the 2 million worldwide base-station shipments.

See related items:

Pause in 2G spending leads to record GSM network revenue drop in Q1/2009

Base-station semiconductor market to drop 12.3% per year to 2012

LTE base-station infrastructure market to grow to $8.6bn by 2013

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