"First quarter results were only a bump-in-the-road for the wireless packet core market this year," said Greg Collins, Vice President at Dell'Oro Group. "Data usage and smartphone penetration continue to increase and will drive the need for more signaling and bandwidth capacity. Because of these strong demand drivers and despite lower than expected first quarter results, our forecast for 2010 remains essentially unchanged at $2.1 billion, or almost 10 percent growth versus 2009," he added.
The report indicates that Huawei surpassed both Ericsson and Nokia Siemens in the first quarter to capture the top spot in the market with more than 25 percent revenue share. Given a very strong fourth quarter in 2009 in North America for GGSN and SGSN equipment, Ericsson and Nokia Siemens both saw very large sequential declines in the first quarter this year due to order volatility. With the anticipated growth in wireless data and signaling needs, it is likely that both of these vendors will rebound in the coming quarters.
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