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August 28, 2012

3G Wireless Networks Face Revenue Blues


The Dell’ (News - Alert)Oro Group recently revealed that Wireless Packet Core market revenue grew eight percent during the second quarter of 2012, with Ericsson leading the way. As service providers rapidly deployed Long Term Evolution (LTE) networks, sales boosted due to the Evolved Packet Core market segment.




Validating this growth, ZTE (News - Alert) revenue share is said to have increased by over five points in comparison to the previous quarter. The average selling prices are also assumed to have increased substantially for the first time since the 4th quarter of 2010. Cisco Systems (News - Alert) has claimed the leading position in revenue share of the Evolved Packet Core segment; however Huawei is coming on strong.   

"Service Providers are increasing LTE (News - Alert) network capacity ahead of a dramatic expansion in the number of LTE-capable smartphones that will be available later in 2012,” stated Chris DePuy, analyst of Wireless Packet Core at Dell'Oro Group.

Furthermore, evolved packet core equipment spending accounted for about fourteen percent of total dollars spent in this arena, which manages signalling, classifies wireless data traffic and ties to billing systems of LTE networks. The Traditional Packet Core segment, which is heavily tied to 3G wireless networks, also experienced a decline in revenue.

The Wireless Packet Core Quarterly Report, which is prepared by the Dell’Oro Group, provides in-depth analysis of the market. Professionally outlined, this report includes table covering manufacturers' revenue, average selling prices and sessions shipped for Traditional Packet Core equipment (GGSN, SGSN, PDSN and ASN Gateway) and Evolved Packet Core equipment (MME, Serving Gateway / SGW, PDN Gateway / PGW, and PCRF). 

The Dell’Oro Group is a trusted source of market information relating to networking and telecommunication industries, enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions by providing in-depth and up-to-date information including objectives, research and analysis.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Allison Boccamazzo




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