Mobility Infrastructure Revenues Rise in Q2

According to Dell'Oro Group, mobility infrastructure revenues increased 1% in 2Q03 to US$6.5 Billion, compared to 1Q03. This modest increase was achieved largely due to strong growth in GSM equipment revenues.

The 12% increase in sales of GSM-based infrastructure was able to offset a 21% decline in WCDMA revenues. Revenues for WCDMA infrastructure equipment remain volatile based on a relatively small number of accounts, strict revenue recognition rules, and delays in service introductions. The market for CDMA-based infrastructure declined 6% during the quarter as Lucent delayed revenue recognition on a large installation in Asia.

"The second calendar quarter is typically seasonally strong, and we did see some sequential growth, however, the mobility infrastructure market was down 14% overall compared to the same quarter last year," said Greg Collins, Director, Dell'Oro Group. "This decline is consistent with our overall projection for 2003. That is a 15% decline due to Capex cuts and continued delays in WCDMA service introductions."

Posted to the site on 15th August 2003