3G "Future Proof" Test Equipment

US : Continuous evolution of industry standards and limited capital expenditure budgets in the wireless communication market have impelled the development of modular and upgradable test devices.

New analysis from Frost & Sullivan reveals that this industry generated revenues totaling $1.33 billion in 2002. Total market revenues are expected to reach $1.91 billion in 2009.

Following the tremendous growth of the wireless communication market in the late nineties, the test and measurement industry pinned considerable hopes on the deployment of 3G networks to drive market demand. Mobile network operators, who had invested considerably in 3G spectrum licenses, have recorded decline in average revenue per user (ARPU) and profitability resulting in the adoption of a cautious approach towards new capital investments.

With the delayed rollout of 3G networks, a shift in demand towards test equipment for 2.5G standards has been observed. The expected widespread launch of 3G services in the near future will potentially propel demand for versatile test equipment capable of scaling up to the requirements of complex new standards.

"Mobile network operators have not yet experienced the complexities involved in the design, installation and management of multi-protocol voice, video and data driven wireless networks," says Frost & Sullivan Research Analyst Jaidev Rammohan. "This provides opportunities for test equipment vendors to partner with end-users towards successful deployment of these next generation wireless networks, by developing unique test solutions."

The growing interest for next generation wireless services has resulted in demand for mobile equipment with enhanced features that include multimedia messaging, interactive gaming, always-on connectivity and MP3 playback capability. This portends demand opportunity for test solutions for application layer protocols.

The increasing requirement for field testing of the base stations in mobile networks has manifested in the development of user-friendly single-box portable solutions. This has simplified the task for network field technicians by making the routine periodic tests faster, easier and more effective. Development of remote air interface monitoring systems is expected to aid in effective real time testing of soft-handover of signals between mobile equipment and base stations.

"The E911 mandate, as well as the expected convergence of wireless LAN (WLAN) and cellular services are some of the other promising drivers that lie ahead for the test equipment industry," says Rammohan.

The following is a key list of industry participants: Agilent Technologies, Inc.; Anite Telecoms; Anritsu Corp.; Wireless Telecom Group, Inc. (NoiseComm); Catapult Communication Corp.; Comarco Wireless Technologies, Inc.; Ericsson Inc.; Fluke Networks, Inc.; Grayson Wireless/ Allen Telecom, Inc.; IFR Systems, Inc.; Keithley Instruments, Inc.; Marconi Corp., Plc; Micronetics Wireless, Inc.; NetHawk, Inc.; NetTest; Nokia Corp.; Racal Instruments; Rohde & Schwarz GmbH & Co. KG; Sage Instruments, Inc.; Spirent Communications, Inc.; Tekelec; Tektronix, Inc.; Ubinetics; Willtech International; and Willtek Communications GmbH.

Frost & Sullivan is a global leader in strategic growth consulting and training. This ongoing growth opportunity analysis is part of the Communication Test Equipment Subscription, which also includes market insights on, Telecommunication Datacommunication Test Equipment, and Voice Over Internet Protocol (VoIP) Test Equipment.