2G to 3G Evolution Hinders Growth of Mobile Infrastructure Market Over Next Five Years

Posted by at 12:10 pm on February 12, 2010

In a newly released report by Dell’Oro Group, the trusted source for information about the networking and telecommunications industries, mobile infrastructure market revenues are forecast to grow over the next 5 years and reach $42 billion in 2014, but will still be shy of the record revenues of over $43 billion reached in 2008.

“We are in the midst of the mobile infrastructure market transitioning from 2G to 3G technologies,” stated Scott Siegler, Senior Analyst of Mobile Infrastructure research at Dell’Oro Group. “The impact of this technology evolution is that steep declines in the GSM and CDMA markets will significantly offset strong growth forecast for the WCDMA market over the next five years. While we expect WCDMA to drive the market in the foreseeable future, we also expect to see very strong growth in both the WiMAX and LTE markets. However, despite this anticipated growth in the 3G and 4G markets, we forecast revenue of the total market in 2014 to still be below the peak levels reached in 2008,” concluded Siegler.

The report also shows that initial LTE deployments will begin in 2010. Although the WCDMA market is expected to be the prime contributor to the market over the next 5 years, LTE revenue during the same period is forecast to be nearly equal to aggregate revenue from the GSM, CDMA and WiMAX markets.

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