Mobility Infrastructure Wireless Markets Continue to Decline

Total Market	2Q02	Quarterly Growth
Mobility Infrastructure	$7.2	4%

Vendor	Rank	Growth
Ericsson	1	+7%
Lucent	2	-9%
Nortel	3	-2%
Nokia	4	+5%

According to a recently published report by Dell'Oro Group, the Mobility Infrastructure market showed some seasonal strength in 2Q02 posting revenues of $7.2 billion. Compared to the second quarter in 2001, however, the market declined 22%.

"The market for mobility infrastructure equipment continues to be under pressure from service providers, many with high debt levels and high capital costs, who increasingly need higher returns on investment (ROI) to justify their capital spending. Typically these higher ROI projects, entail extending the life of current base station infrastructure, rather than adding more cell sites and base stations," says Greg Collins, a Director at Dell'Oro Group. "The GSM/GPRS/EDGE and CDMA markets are being buoyed by North America, where service providers continue to build networks for both coverage and data functionality. The TDMA (IS.136) market continues to contract substantially."

"While some vendors are beginning to recognize revenues from WCDMA or UMTS systems, through 1H02, revenues from these systems have not had a material impact on the market. We expect that WCDMA will become a significant portion of some vendors' revenues in 2H02."