REDWOOD CITY, Calif.-Strong subscriber growth is driving an increase in GSM-based infrastructure equipment sales, which grew six percent in the third quarter according to the latest Dell’Oro Group Mobility Infrastructure Quarterly Report.
The Dell’Oro Group said that in the third quarter the market for GSM/GPRS/EDGE infrastructure totaled $6.1 billion, a 12-percent increase compared with the year-ago period. In addition, the market for W-CDMA infrastructure increased eight percent compared with the same period last year as the industry migrated from GSM technology to W-CDMA.
In contrast, the report found that the market for CDMA-based infrastructure declined two percent to $2.1 billion in the third quarter compared with the year ago period.
“CDMA 1X-EV-DO upgrades, especially in North America, have driven the growth in the CDMA market over the past two years,” said Greg Collins, senior director of Mobility Research at Dell’Oro Group. “It is likely that the coverage phase of the upgrade cycle to DO is nearing its end, and as DO enters the capacity phase of its life cycle, it is likely that spending on DO will moderate. The next upgrade for CDMA (CDMA 1X-EV-DO Revision A) will likely not be material to the market until 2007.”
