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19 September 2006


Base-station revenues to decline after 2008

Revenue from sales of cellular base-stations will remain strong through 2008 but, by 2009, will begin a steep decline, says In-Stat in its report "Base Station 5-Year Forecast 2005-2011".

"Spending on cellular base stations by cellular service providers these last few years has been untypical, as spending on deployment of new WCDMA networks is much higher than typical had cellular carriers only been main- taining, upgrading, and increasing the capacity of current networks," says analyst Allen Nogee. "Once deployment of most of these new networks is complete, yearly spending will drop to more typical levels."

Recent research by In-Stat found the following:

  • New cellular base-station revenue will reach $53.2m in 2006, and is forecast to drop sharply in the years that follow.
  • In the last few years, base-station prices, especially for WCDMA, have been cut to a fraction of their cost of just a few years ago.
  • Deployment of WiMAX, Wi-Fi and other wireless technologies will increasingly put pressure on cellular technology.

Visit: http://www.in-stat.com