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Base station revenue expected to peak in 2008

SCOTTSDALE, Ariz.-Revenue from sales of cellular base stations will remain strong through 2008, but by 2009 base station revenue will begin a steep decline, says a new report from In-Stat.

“Spending on cellular base stations by cellular service providers these last few years has been untypical, as spending on deployment of new W-CDMA networks is much higher than typical had cellular carriers only been maintaining, upgrading, and increasing the capacity of current networks,” explains Allen Nogee, In-Stat analyst. “Once deployment of most of these new networks is complete, yearly spending will drop to more typical levels.”

Recent research by In-Stat found the following:

  • New cellular base station revenue will reach $53.2 million in 2006, and is forecast to drop sharply in the years that follow.
  • Deployment of WiMAX, Wi-Fi and other wireless technologies will increasingly put pressure on cellular technology.
  • In the past few years, base station prices, especially W-CDMA base stations, have been cut to a fraction of their cost of just a few years ago.

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