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Lack of handsets limits W-CDMA infrastructure growth

REDWOOD CITY, Calif.-The Dell’Oro Group reports that the mobility infrastructure market grew 13 percent in the second quarter compared with the same period in 2004.

The group also reported that growth in the W-CDMA market slowed to 13 percent in the first half of 2005 compared with the same period in 2004, a sharp decline between the first half of 2003 and the first half of 2004, when the market increased by 44 percent.

“W-CDMA infrastructure growth is being held back by lack of cost-effective handsets, which is limiting subscriber uptake,” said Greg Collins, senior director of Mobility Research at Dell’Oro Group. “However, as Cingular [Wireless L.L.C.] in the United States and service providers in China begin to introduce W-CDMA-based services in 2006, equipment manufacturers should see a resurgence in W-CDMA revenue growth.”

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