Communications and Technology Industry Research

Global mobile infrastructure market revenue may decline by almost 10 percent over the next five years, said telecom market research firm Dell'Oro Group.

 

The report said that the decline will be greatest in the first two years, during which time the market is forecast to reach revenue levels not seen since 2004.

 

“After this period, the market is expected to recover slowly with low yearly single-digit growth through 2013,” the market research company said in its report released this week.

 

The report comes barely two days after Carl-Henric Svanberg (News - Alert), president and CEO of Ericsson, revealed that the effects of the global economic climate on the mobile infrastructure market were more notable now, especially in markets with currencies under pressure and tougher credit environment.

 

The wireless market is already hit by price erosion and this trend will continue for a while because of global economic downturn, the report said.

 

 “Competition among vendors, particularly in India and China, which have increasingly become instrumental market drivers, is putting a tight squeeze on vendors’ margins,” said Scott Siegler, senior analyst of mobile infrastructure research at Dell’ (News - Alert)Oro Group, in a statement.

 

With more than 300 million new subscribers signing up for the service every year, consumption of mobile data traffic has begun to grow in leaps and bounds. As a result, operators are struggling to deploy the necessary capacity to keep up with the demand.

 

“However, offsetting our forecast of high double-digit growth in total base station shipments over the next five years is a 40 percent decline in base station ASPs,” Siegler said.

 

The report also showed that initial LTE (News - Alert) rollouts are expected in 2010 and eNode B shipments in 2013 will represent nearly 10 percent of the two million worldwide base station shipments.