LONDON—Infonetics Research found that the global market for radio access network gear dropped 22 percent to $7.4 billion in the first quarter due to huge declines in CDMA EV-DO and GSM/GPRS/EDGE equipment revenue.
However, the report indicates that sales of W-CDMA/UMTS RAN equipment rose 8 percent during the first quarter, reflecting a shift toward third-generation networks. Second-generation and 2.5G equipment sales accounted for a declining proportion of the RAN market while 3G equipment will grow from 19 percent of overall RAN revenue in 2005 to 73 percent in 2009.
“2G and 2.5G rollout continues in developing countries, but established cellular markets that have ubiquitous 2G/2.5G networks are now predominantly driven by 3G upgrades,” said Richard Webb, an analyst at Infonetics Research. “The overall volume of RAN equipment shipments is dropping, and prices—especially for base stations—are also sliding, undermining overall RAN equipment revenue. Not even 3G equipment will be immune to this pricing pressure, meaning that annual worldwide RAN revenue in 2009 will look more like quarterly RAN revenue in 2004.”
In its report, Infonetics Research listed the following market highlights:
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Total RAN revenue is forecast to hit $26.3 billion in 2009.
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Worldwide base transceiver station unit sales were flat and revenue decreased 18 percent in the first quarter.
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Of the 1.9 billion mobile subscribers worldwide in 2005, 79 percent were GSM, 14 percent CDMA, and 7 percent 3G subscribers—by 2009, 3G subscribers will grow to 19 percent of the total.
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In the first quarter, the Asia-Pacific region accounted for 42 percent of worldwide RAN equipment revenue, while North America came in at 14 percent.
