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Industry News

A Challenging Base Station Market Will Witness Growing 3G Spending

July 1, 2003
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The market for wireless infrastructure has been under constant pressure to adapt to new markets, technologies and changing standards. The base station plays a key role in these cellular networks and is under extreme pricing pressure and market competitiveness. Vendors and suppliers to the wireless base station market are looking for areas of growth with few strategies for relief. Continued lack of visibility haunts the players in this market as they search out the high ground.


There are areas for opportunities in this market with the change in contracts and shifts in network timetables. The 3G equipment market represents the largest sector in terms of revenue growth over other interface technologies. The research firm Allied Business Intelligence (ABI) projects a CAAG of 49 percent for 3G gear spending from 2002 to 2007. This growth rate is slightly down from previous projections, as the market continues to be hesitant.

"This market has been difficult for the past few years, and equipment vendors are looking to make gains in the markets that count," explains Tim Shelton, ABI senior analyst and author of the report update. "Targeting the markets that are going to grow will be key for survivors in this market."

Spending for 3G base station (BTS) equipment will continue to become a larger portion of the whole over the next several years. The percentage of 3G BTS spending in 2007 is projected to grow to greater than 78 percent of the total BTS market.

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