Infrastructure Market Posts Gains on Strong Sales of GSM and WCDMA Equipment

Dell'Oro Group has reported that the total mobility infrastructure market grew 6% in the third quarter of 2005 compared to the same quarter in 2004, on strong sales of GSM/GPRS/EDGE and WCDMA equipment.

In the third quarter of 2005, the market for GSM/GPRS/EDGE infrastructure totaled US$6.1 billion, a 12% increase compared to year ago period. Very strong subscriber growth -- over 100 million net additions in the third quarter of 2005 alone -- is driving the growth of the GSM-based infrastructure market. The market for WCDMA increased 8% in the third quarter compared to the same quarter in 2004, as the gradual migration away from GSM-based services to WCDMA-based services continued.

In contrast, the market for CDMA-based infrastructure declined 2% to US$2.1 billion in the third quarter compared to the year ago period.

"CDMA 1X-EV-DO upgrades, especially in North America, have driven the growth in the CDMA market over the past two years," said Greg Collins, Senior Director of Mobility Research at Dell'Oro Group. "It is likely that the coverage phase of the upgrade cycle to DO is nearing its end, and as DO enters the capacity phase of its life cycle, it is likely that spending on DO will moderate. The next upgrade for CDMA (CDMA 1X-EV-DO Revision A) will likely not be material to the market until 2007," Collins added."

Posted to the site on 23rd November 2005