Mobile - Backhaul infrastructure spending declined 15% year-on-year in Q1

[prnewswire] In a recently published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, mobile infrastructure market revenues declined almost 15 percent in the first quarter of 2010, compared to the first quarter of last year. Steep contraction in 2G sales brought overall market revenues down despite growth in the 3G and WiMAX markets during the first quarter of this year.

"3G markets, both WCDMA and CDMA, experienced very strong growth, particularly in North America," said Scott Siegler, Senior Analyst of Mobile Infrastructure research at Dell'Oro Group. "Contrary to the first quarter of 2009 when market strength came predominantly from 3G spending in China and was largely coverage-driven, the first quarter of 2010 was fueled mostly on North American spending and was almost entirely capacity-driven. WCDMA and CDMA operators spent heavily in the first quarter to keep up with increased demand for mobile broadband as a result of more capable 3G devices and faster 3G networks. Despite this strong growth in 3G spending, however, the market contracted as a result of the near-halt in GSM spending in China and India," finished Siegler.

The report indicates that market is expected to rebound throughout the remainder of 2010, aided by strong WCDMA and improving GSM sales. The market is also expected to benefit from initial LTE revenues in the second half of 2010 as a result of the anticipated launch of four commercial LTE networks later this year.

Mobile Infrastructure Market Experienced Double-Digit Decline During the First Quarter of 2010, According to Dell'Oro Group