3G Infrastructure Sales Slowing - Report

Dell'Oro Group has reported that the total mobility infrastructure market grew 13% in the second quarter of 2005 verses the same quarter a year ago. For the first half of 2005, growth in the WCDMA market slowed to 13% over the same period in 2004. This relatively small increase in the first half of 2005 contrasts with the stunning 44% increase for the WCDMA market in the second half of 2004 verses the same period in 2003.

"WCDMA infrastructure growth is being held back by lack of cost effective handsets, which is limiting subscriber uptake," said Greg Collins, Senior Director of Mobility Research at Dell'Oro Group. "However, as Cingular in the United States and service providers in China begin to introduce WCDMA-based services in 2006, equipment manufacturers should see a resurgence in WCDMA revenue growth."

According to the Dell'Oro Group report, the market for GSM-based infrastructure grew 16% to reach US$6.6 billion in the second quarter of 2005 compared to the same quarter a year ago. The GSM market remains resilient since a large percentage of the world is only at the beginning stages of transitioning to WCDMA. The worldwide market for CDMA-based infrastructure grew 5% year-over-year driven by CDMA 1X-EV-DO upgrades in North America. The North American market for CDMA infrastructure grew 14% versus the second quarter of 2004."

Posted to the site on 19th August 2005