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CDMA Market Takes a Plunge, According to Dell’Oro Group

August 21, 2008

Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reported today that the worldwide CDMA infrastructure market declined over 25 percent from the year ago quarter. With North America being 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. The significant contraction in North America was partially offset by the CDMA growth in the Asia Pacific region.

“In addition to Verizon Wireless’ CAPEX being down approximately $150 million, Sprint’s CAPEX was down nearly $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 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.

About the Report

The Dell’Oro Group Mobility Infrastructure Quarterly Report offers complete, in-depth coverage of the market with tables covering 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. To purchase this report, call Margaret Miles at +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.




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