Infrastructure: poor 2009, followed by upturn, claims study

Despite upbeat remarks from the mobile infrastructure CEOs at MWC, a new study predicts a double-digit decline in revenues in 2009 for these manufacturers. However, although the IMS Research report forecasts a slowdown in 2009, a quick recovery is expected in 2010 on the heels of widespread 3G upgrades and next-generation network investments.

Perhaps not wishing to focus upon 2009, Ericsson CEO, Carl-Henric Svanberg, boldly maintained there was no telecoms crisis, despite the economic downturn. "We are strong enough to weather the storm," said Svanberg in Barcelona, pointing to what he called great opportunities in emerging markets, albeit that the company announced an austerity programme last month.

The IMS study also outlined findings:

  • The installed base of mobile data users was forecast to remain relatively insulated from the economic downturn and achieve steady growth throughout the forecast period.
  • Upgradeable base stations would accelerate the adoption of next-generation network infrastructure equipment.
  • Chinese infrastructure vendors were expected to increase their market share over the forecast period.
  • The total mobile data infrastructure market is expected to be worth between US$30-35 billion by 2013.

However, IMS stated Mobile WiMAX may be hardest hit as credit markets dry up, jeopardizing many of the smaller pure WiMAX vendors' most important customers.

For more on this story:
Cellular News

Related stories:
MWC Scorecard: Infrastructure vendors
'Mobile infrastructure unit will become profitable,' states Al-Lu head
Huawei's Mobile Infrastructure Star Is Rising as Alcatel-Lucent's Declines
Network Infrastructure Spending Positions Carriers for 4G Services

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