Challenging Base Station Market Will Witness Growing 3G Spending

The market for wireless infrastructure has been under constant pressure to adapt to new markets, technologies, and changing standards. The base station plays a key role in these cellular networks, and is under extreme pricing pressure and market competitiveness. Vendors and suppliers to the wireless base station market are looking for areas of growth with few strategies for relief. Continued lack of visibility haunts the players in this market as they search out the high ground.

There are some areas for opportunity in this market with the changes in contracts and shifts in network timetables. The 3G equipment market represents the largest sector in terms of revenue growth over other air interface technologies. Research firm Allied Business Intelligence (ABI) projects a CAAG of 49% for 3G gear spending from 2002 to 2007. This growth rate is slightly down from previous projections, as the market continues to be hesitant.

"This market has been difficult for the past few years, and equipment vendors are looking to make gains in the markets that count," explains Tim Shelton, ABI Senior Analyst and author of the report update. "Targeting the markets that are going to grow will be key for survivors in this market."

Spending for 3G base station (BTS) equipment will continue to become a larger portion of the whole over the next several years. The percentage of 3G BTS spending in 2007 is projected to grow to greater than 78% of the total BTS market.

The report, "Wireless Base Stations, Global Deployments and Revenue for 2G, 2.5G and 3G Systems," an update from ABI's 2002 report, examines the pending transition to 3G, including the various hurdles faced by operators, equipment providers and startups."

Posted to the site on 2nd May 2003