The mobile wireless networks revenue will grow from US$60.7 billion in 2004 to US$100.1 billion in 2011, says a report from market researcher Telecom Trends International. The report says that the market will grow at a compound annual growth rate of 7.4% over a seven year period.
After expanding at a staggering rate of 23.9% in 2004, the mobile wireless market will experience healthy, although relatively modest, growth of 9.3% in 2005, growing from US$60.7 billion in 2004 to US$66.3 billion in 2005, the report said. A major focus of the report is migration of current generation networks to 3G and 4G.
Falling equipment prices are spurring deployments in those regions of the world that have lacked mobile access, said Naqi A. Jaffery, President and Chief Analyst, Telecom Trends International. At the same time, the need for higher speeds is driving the rapid deployment of 3G networks in industrialized nations, he said.
Along with the transition of the radio interface to higher speeds, says the report, the core network is being enhanced with deployments of IP Multimedia Subsystem (IMS). Increasingly, multi-access networks will emerge, considerably enhancing end-user experience, it said.
The dominant industry trends, according to the report, include standardization of base station interfaces, increasing migration of manufacturing operations to contract manufacturers, and the growing role of vendors in managing operator networks.
According to the report, the market is witnessing the emergence of smaller vendors, who were traditionally confined to regional markets, on the global scene. These include vendors from Japan, Korea, and China who are staking out a claim to leadership in next-generation networks. The report provides revenue information on top thirteen global network vendors.
According to the report, Tier 1 vendors – Ericsson, Nokia, and Siemens – garnered 49% of the revenue in 2004. Tier 2 vendors – Motorola, Lucent, Nortel, and Alcatel – obtained 33% of the revenue. Other vendors who got the remaining 18% of the revenue include NEC, Fujitsu, Samsung, LG, Huawei, and ZTE.