70% of Operators Are Not Provisioning For 3G Future

3G Market No Improvement 2003

According to a recently published report by Dell'Oro Group, the Mobility Infrastructure market (GSM/GPRS/EDGE, TDMA, CDMA, and WCDMA) will continue to decline through 2003, however the market will experience a slow recovery beginning in 2004.

Inset is Greg Collins, Director, Dell'Oro Group who is quoted below.

On the strength of WCDMA, and to a lesser extent CDMA, along with the prolonged lifecycle of GSM-based infrastructure, Dell'Oro Group forecasts that the overall market will experience high single-digit growth beginning in 2005 and that it will reach nearly $34 billion in 2007, excluding related services. Service-related revenues will add approximately 20-30% to this figure.

According to Greg Collins, Director at Dell'Oro Group: "Wireless penetration into developing economies, and the success of data services remain the keys to growth for this industry. In developing regions, average revenue per user (ARPU) is a fraction of that which network operators experience in developed areas; this puts more downward pressure on prices in an already highly competitive market. We forecast that voice channel shipments -- our measure of network capacity sold across technologies -- will continue to grow by double-digits each year through the scope of our forecast. Voice channels are growing to accommodate the increase in subscribers, and the growth in voice and data usage. In the near-term, however, the decrease in average selling prices (ASPs) will be greater than the increase in voice channels, resulting in either revenue declines or soft revenue growth."

About the Report

The Mobility Infrastructure 5-Year Forecast Report provides a complete overview of the industry with tables covering revenue, units, transceivers, and price forecasts for Base Station Controllers, Base Transceiver Stations, and Mobile Switching Centers for GSM/GPRS/EDGE, CDMA, TDMA, and WCDMA.

This Press Release Sponsored by AGILENT TECHNOLOGIES

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