CDMA plunges, GSM continues to thrive

According to Dell'Oro, a source of market information on networking and telecoms infrastructure, the CDMA market infrastructure worldwide contracted 25% last year even though CDMA grew in the Asia-Pacific region.

Dell’Oro Group, which specialises in collecting information on networking and telecommunications infrastructures, has reported that worldwide CDMA infrastructure market declined over 25% over the same quarter last year. With North America the predominant CDMA market, significant declines in spending by the two largest CDMA operators in the region had a major impact on the contraction of the worldwide market. This significant contraction in North America was partially offset by CDMA growth in Asia-Pacific.

“In addition to Verizon Wireless’ CAPEX being down approximately US$150 million, Sprint’s CAPEX was down nearly US$1 billion,” commented Scott Siegler, Analyst of Mobility Infrastructure research at Dell’Oro Group. “As a result of this contraction in North America, North America’s share of the CDMA market fell to approximately two-thirds share, from over three-quarters share in the second quarter last year.

Growth in Asia-Pacific, particularly in India, helped to offset these declines. In the current second quarter Reliance, Tata and BSNL continued to see solid CDMA subscriber growth and continued to invest in the growth of their CDMA networks. However, we believe the region will experience declines in the second half of the year, as we expect all three operators to begin to focus more capital towards their GSM networks,” Siegler continued.

The report also shows that the declines in the CDMA market were offset by the GSM market having another solid quarter, with revenue growing both sequentially and year-over-year.

The Dell’Oro Group Mobility Infrastructure Quarterly Report covers manufacturers’ revenue, average selling prices, transceiver or RF carrier shipments, and unit shipments for base station controllers, base transceiver stations, and mobile switching centers for GSM/GPRS/EDGE, CDMA, and WCDMA.

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