Subject: [NEXTEL-1] Cellular infrastructure market fell 12 percent in 03, says Gartner

From: [email-masked]
Date: Sun, 23 May 2004 14:34:41 -0400

Cellular infrastructure market fell 12 percent in 03, says Gartner

John Walko
May 20, 2004 (7:00 AM)

URL: http://www.commsdesign.com/showArticle.jhtml?articleID=20900010

LONDON — The global cellular infrastructure market declined by 12
percent last year, mainly due to delays in deploying third-generation
networks. But there was an upturn in the fourth quarter, according to a
just published report from market researchers Gartner.

Jason Chapman, principal analyst with Gartner and author of the study,
said recent, significant orders have improved the outlook. He
anticipates single-digit growth in 2004.

"Mobile network operators spent even less in 2003 than in 2002, and
investments in radio access, switching, applications and core
infrastructure for mobile networks totalled $40 billion, down from $45
billion in 2002," said Chapman.

According to the report, Ericsson retained its leading position, taking
26 percent of the world market. This was 3 percent down from its share
in 2002. Chapman said Swedish group is positioned to profit from more 3G
network deployments in 2004 thanks to its leading to its leading
wideband CDMA technology.

Nokia and Siemens increased their market shares to 14 percent and 13
percent, respectively, helped by healthy spending on GSM and W-CDMA
rollouts. Motorola was fourth on Gartners' list, with Nortel fifth and
Lucent Technologies sixth.

GSM dominated contract announcements in 2003, accounting for 64 percent
of the total and 59 percent based on total contract value. W-CDMA and
CDMA both accounted for 14 percent of the number of announced contracts,
although CDMA surpassed WCDMA in terms of contract value with 37
percent.

Siemens said it was very encouraged by the report. "Since 2000, we've
nearly doubled our market share in mobile communication networks," said
Lothar Pauly, a member of the Siemens mobile group board. "Our objective
is to continue to grow faster than the market and expand our position of
leadership in 3G/UMTS."

The German group's strong performance stems from several GSM contracts
in Eastern Europe and in "emerging markets," including Asia Pacific,
Middle East and African countries. Of the 22 3G/UMTS networks in
operation since last year, Siemens claimed 12 were powered by
infrastructure designed and provided by the compnay and partner NEC.

The report notes that Ericsson has yet to see improvements in its CDMA
business, attributing the slow uptake to technology changes in its radio
access equipment. The company has bundled its CDMA and W-CDMA
basestation in the radio equipment to position itself for the 3G market.
It noted that when Verizon Wireless announced major contracts early this
year, Ericsson lost to both Lucent Technologies Inc. and Nortel Networks
Ltd.

Nokia is said to have improved its margins and made marginal gains
despite "teething problems" with its radio equipment, which the company
had to fine-tune for the W-CDMA market.

Copyright © 2003 CMP Media, LLC

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