Network spending drops 10% in Q3 - Mobile World Live

Network spending drops 10% in Q3

04 DEC 2009

Global mobile infrastructure revenues declined 10 percent in the third quarter to US$9 billion, mainly due to a slowdown in 3G buildout in China. A new report from Dell’Oro Group found that the vast majority of 3G deployments in China were completed in the first half of 2009, which resulted in WCDMA and CDMA base station shipments in Q3 experiencing double-digit declines over the record-setting second quarter of this year. Not that this decline is expected to last. The report notes that while 3G spending in China is expected to stay depressed for the remainder of this year, heavy spending by China Unicom and China Telecom should resume in 2010, and will be a prime contributor to both the WCDMA and CDMA markets.

During the period, Huawei underlined its status as a top tier vendor by becoming the world’s second-largest mobile network manufacturer. The Chinese vendor almost doubled its market share from a year ago to 20 percent, surpassing Nokia Siemens Networks (NSN). Ericsson’s market share of 32 percent remained flat year-on-year. NSN has struggled with falling market share for several quarters as its owners Nokia and Siemens have looked for profits from the ailing business unit. Last month it unveiled plans to cut up to 5,800 positions. On a positive note for the vendor, Reuters yesterday reported that it is set to unveil its fourth order for new LTE network technology shortly. Earlier this week NSN said it is aiming to win more market share next year in a flat market.

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