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Vendors Anticipating Material LTE Revenue in Second Half of 2010

Mon, 08/02/2010 - 8:27am
REDWOOD CITY, Calif., /PRNewswire/ -- In a newly released report by Dell'Oro Group, mobile infrastructure market annual revenues are forecast to reach $43 billion over the next 5 years. After a double-digit revenue decline in 2009, and a flat forecast for revenues in 2010, market revenue growth is expected to accelerate yearly beginning in 2011.

"The growth of mobile data traffic is driving, and will continue to drive operators to increase the capacity of their 3G and next generation networks to meet demand," stated Scott Siegler, senior analyst of Mobile Infrastructure research at Dell'Oro Group.

"As the ecosystem of 3G devices continues to rapidly grow, such as the iPhone and Android-based smartphones, operators are experiencing a surge in data traffic on their mobile networks. As smartphones penetrate deeper in the mobile subscriber base and each subscriber consumes more data, we forecast worldwide mobile data traffic will double each year.

While initial LTE deployments are beginning in the second half of 2010 and revenue is expected to see strong growth, we believe WCDMA will be the most significant driver of the market, and will represent over three-quarters of total market revenues in 2014," continued Siegler.

The report shows that although the LTE market is expected to start small in 2010, revenues are forecast to exceed $6 billion by 2014.

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