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

Initial LTE Revenue Expected to Flow in 2010

Redwood City, Calif. – February 9, 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.

About the Report

The Dell’Oro Group 5-Year Forecast Report offers a complete overview of the Mobility Infrastructure industry with tables covering manufacturers’ revenue, average selling prices, transceivers or RF carriers shipments, and unit shipments for base station controllers, base transceiver stations, and mobile switching centers for GSM/GPRS/EDGE, CDMA, WCDMA, Mobile WiMAX, and 3G LTE. To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit http://www.delloro.com.

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