The mobile infrastructure market appears to be in a healthy state, with total revenues for the second quarter of 2011 up 25 percent compared to the same period a year ago.

The fastest rate of revenue increase for seven years has been largely driven by strong demand for 3G kit, according to a report from networking and telecommunications industry market data provider Dell’Oro Group.

Although fluctuating currency exchange rates played a part in the revenue rise, the vast majority of the revenue increase (70 percent) can be attributed to the sales of WCDMA/HSPA and CDMA/EV-DO equipment.

Dell'Oro Group mobile infrastructure research analyst Stefan Pongratz said the increased demand for infrastructure equipment is partly due to the greater use of smartphones, which now account for 35 percent of the installed base in North America.

He added that although some operators are frontloaded – assigning costs to early stages of projects – in 2011, Dell’Oro Group predicts the second half of the year will bring strong revenues in the mobile infrastructure market.

“For instance, wireless CAPEX in the North American region is expected to be 7 percent stronger in 2H11 versus 1H11,  paving the way for one of the strongest year-over-year total market gains since we started tracking the mobile infrastructure market," Pongratz said.

Dell’Oro’s Mobility Infrastructure Quarterly Report also shows that Ericsson, Huawei and Nokia Siemens Networks held the biggest market share in the sector over the past 12 months.