With Verizon, AT&T, Sprint and T-Mobile pushing 4G, and WCDMA still doing heavy lifting, mobile infrastructure revenues are expected to reach $42 billion in 2015.
AT&T, Sprint and T-Mobile are all currently boasting that they offer 4G
speeds in various areas. Perhaps not so surprisingly, then, the mobile
infrastructure market-which suffered double-digit declines in 2009 and
single-digit declines in 2010-is expected to grow from $34 billion in 2010 to
$42 billion in 2015, according to a Feb. 14 report from the Dell'Oro Group.
new 4G LTE
(Long-Term Evolution) networks are expected to launch worldwide
this year, even spending on WCDMA (wideband Code Division Multiple Access)
networks is said to be on the rise. WCDMA, the 3G technology affiliated with
GSM networks such as AT&T Wireless' and T-Mobile's in the United States,
brought in revenues of $16 billion in 2010. According to the report, that
figure is likely to climb to nearly $30 billion in 2015.
use of mobile devices such as smartphones and tablets will continue to
challenge operators and vendors for years to come," Stefan Pongratz, a Dell'Oro
Group financial analyst, said in a statement. "We believe this increase in data
demand will require operators to continue investing in their 3G/3.5G networks
throughout the entire forecast period."
December, the firm similarly announced that the WCDMA market had posted
sequential revenue growth of 3 percent during the third quarter of 2010, and
was expected to continue upward during the fourth quarter and into 2011, driven
by market leaders Ericsson, Nokia Siemens and Huawei. While North America drove
much of the 3G growth during 2010's second quarter, Pongratz said in that
report, the Asia Pacific, particularly India, is expected to drive strong 3G
growth into 2011.
In the firm's
newest report, Pongratz also anticipates revenue growth for LTE. Currently, all
four of the major U.S. networks offer 4G networks in various flavors. Sprint
has been offering WiMAX technology since 2008, T-Mobile launched a campaign
showing off its HSPA+ (Evolved High-Speed Packet Access) technology in November
2010, and in December 2010, Verizon's LTE network went live in 38 cities. AT&T,
which this month began advertising its 4G
based on HSPA+ technology, will also begin rolling out LTE by
According to a
from IHS iSuppli, LTE will have nearly 50 million users by 2012,
and more than 303 million by 2014. (By contrast, WiMAX is expected to grow at
the slower rate of 22 million users by 2012 and 33.4 million by 2014.)
"While we have
seen several successful LTE launches, and we expect LTE revenue to see strong
growth. We believe WCDMA networks will carry the majority of the traffic
throughout the forecast horizon," said Pongratz.
even had good news for 2G technologies.
said Pongratz, "we anticipate some recurring 2G investments in fast-growing
markets such as China and India to deal with the large 2G installed base."