NEW YORK-Carrier consolidation and increasing common standards are forcing wireless equipment makers to cut prices, according to a new report from Heavy Reading, a market research division of Light Reading Inc.
The equipment covered in the study includes base stations, controllers, microcells, picocells and more than 140 others.
Heavy Reading said prices have plummeted 60 percent during the past 12 to 24 months. The report identifies microcells and picocells as witnessing significant growth.
“Equipment makers that don’t get into the microcell market will be missing out on a prime growth opportunity,” said the study.
Microcells are low-cost products that plug small holes in coverage areas.
“If anything, vendors will be under more pressure to slash equipment prices in the future,” noted Tim Kridel, Heavy Reading analyst and author of the report.
“One reason is that mergers, such as Cingular Wireless’ pending acquisition of AT&T Wireless, are creating more ‘super-operators,’ whose scale gives them enormous bargaining power.”
The upside of the development, according to the report, is that carriers have increased spending on infrastructure, adding that operators with major 3G deployments will spend more to make up gaps in coverage areas.
Heavy Reading said Chinese vendors are ramping up their market shares, noting ZTE is expanding operations in Brazil, India, Pakistan and Russia.
