UK Infrastructure Market Falls Again - Report

After falling from 2000 levels during 2001, the European market for cellular infrastructure is projected to fall again in 2002 as operators struggle with debt, and delays in 3G equipment availability continue to slow network rollout. IMS Research's latest annual report on the worldwide cellular infrastructure market estimates that in 2001 there were 651,000 cellular transceivers shipped in Europe. However, this figure is projected to only be 582,000 in 2002. Demand for new infrastructure is being driven by increases in cellular subscribers, increases in average traffic per installed subscriber and the roll out of new networks.

"At 12.5%, subscriber growth in Europe in 2002 is projected to be considerably less compared to 2001 when growth was an estimated 23.3%. Although average traffic per subscriber seems to have turned the corner and started to increase, it is doing so at only a very small rate and not placing too much demand on network capacity. Finally, delays in the availability of 3G handsets has meant that many European operators have knocked back their 3G network launches. This has meant that 3G network rollout in 2002 will mainly consist of limited network trials." stated the report's author Alex Green. Along with massive operator debt, the report concludes that these three factors mean that the European infrastructure market in 2002 will be subdued.

The report predicts a limited recovery in 2003 as 3G network rollout accelerates. In addition, increases in the size if the subscriber base and in the volumes of average traffic per subscriber will force operators to invest in capacity stretched 2G/2.5G networks to improve the QoS. However, it is forecast to be some time after 2004 before 3G really injects significant growth back into the European cellular infrastructure market.'"

Posted to the site on 18th August 2002