Abstract
During 2005, the mobile wireless networks market generated $62.2 billion in
revenue, growing at an annual rate of 11.3 percent. Over the next seven years,
the mobile wireless networks market will grow at a compound annual growth rate
(CAGR) of 7.1 percent, reaching $100.4 billion in 2012. With steep declines in
prices of network equipment, the market is being driven by deployments of
basic mobile wireless access in developing countries and transition to higher
speeds in industrialized countries.
WCDMA is the fastest growing technology, giving WCDMA networks unprecedented
economies of scale and helping lower equipment costs. HSPA, a higher-speed
version of WCDMA, is being enhanced in stages. The first stage, known as
HSDPA, is designed to increase downlink speeds to up to 14.4 Mb/s. The second
stage, known as HSUPA, is designed to increase uplink speeds to up to 5.76
Mb/s. By 2012, HSPA will become the de facto global standard.
EDGE is being deployed by operators with limited spectrum or as a complement
to WCDMA in suburban and rural areas. EDGE networks will become more
spectrally efficient with the transition to "EDGE Evolution" beginning in
2007. Revenues from the CDMA technology family will gradually decline and,
during the forecast period of this report, mobile operators with CDMA2000
networks will begin to switch to HSPA or EDGE Evolution. This will relegate
CDMA2000 to a niche status.
Along with the transition of the radio interface to higher speeds, the core
network is being enhanced with deployments of IMS. The standardization of base
station interfaces is facilitating the migration of manufacturing operations
to contract manufacturers. Moreover, with increasing service competition,
operators are outsourcing network operations to equipment vendors in order to
focus on marketing, sales, and customer service.
The market has witnessed the emergence of smaller vendors, who were
traditionally confined to regional markets, on the global scene. These include
vendors from Japan, South Korea, and China who are staking out a claim to
leadership in Third Generation (3G) networks.
This report profiles the top thirteen mobile wireless network vendors, and
provides their revenue broken down by region. TELECOM TRENDS INTERNATIONAL
divides these vendors in "Tiers" with Ericsson, Nokia, and Siemens placed in
Tier 1, Motorola, Nortel Networks, Alcatel, and Lucent in Tier 2, and NEC,
Huawei, ZTE, Fujitsu, Samsung, and LG in Tier 3.
Figure 1 gives the share of mobile infrastructure revenue by vendor-type for
2005. The collective share of Tier 1 vendors declined from 48.5 percent in
2004 to 47.7 percent in 2005, despite the fact that Ericsson gained market
share in 2005. Similarly, the share of Tier 2 vendors declined from 33.2
percent in 2004 to 32.7 percent in 2005. The share of rest of the vendors
increased, going up from 18.3 percent in 2004 to 19.6 percent in 2005.
This report analyzes all three components of a mobile wireless network -
access, core, and services - and makes projections on the share of each of
these components over a seven-year period. During this period, the share of
the "services" sector will increase as a percentage of total network revenue.
The report examines the distinguishing characteristics of 4G networks. As
traffic on existing networks mounts, the primary driver for 4G networks will
be the need for additional capacity. Nevertheless, these networks will be
geared toward providing a seamless experience to the end-user, allowing the
device to switch from one network to the other depending on a user's physical
circumstances.
The report provides seven-year forecasts for all regions of the world broken
down as follows: Western Europe, Eastern Europe, Middle East, Africa,
Asia-Pacific, China, North America, and Latin America. The report provides
seven-year forecasts for all major technologies.
Table of Contents
Acronyms
1. Executive Summary
2. Scope and Methodology
- 2.1Scope
- 2.2Additional Related Information
- 2.3Methodology
- 2.3.1Interviews
- 2.3.2Additional Primary and Secondary Research
- 2.3.3Trend Tracking
- 2.3.4Global Revenue Forecasts
- 2.4Target Audience
3. Definitions and Overview
- 3.1Mobile Wireless Networks
- 3.1.1Overview
- 3.1.2Segments
- 3.1.2.1Radio Access Network
- 3.1.2.2Core Network
- 3.1.2.3Professional Services
- 3.2Next-Generation Networks
- 3.2.1Frequency Allocations
- 3.2.2IMT-2000 Requirements
- 3.2.3IMT-2000 Radio Interfaces
4. Major Technology Families
- 4.1GSM/GPRS/EDGE
- 4.1.1GSM
- 4.1.1.1Technology
- 4.1.1.2Deployments
- 4.1.2GPRS
- 4.1.2.1Technology
- 4.1.2.2Deployments
- 4.1.3EDGE
- 4.1.3.1Technology
- 4.1.3.2Deployments
- 4.1.4EDGE Evolution
- 4.1.4.1Technology
- 4.1.4.2Deployments
- 4.2UMTS/WCDMA/HSPA
- 4.2.1UMTS
- 4.2.2WCDMA (UTRA FDD)
- 4.2.2.1Technology
- 4.2.2.2Deployments
- 4.2.3HSPA
- 4.2.3.1HSDPA
- 4.2.3.1.1Technology
- 4.2.3.1.2Deployments
- 4.2.3.2HSUPA (EU-DCH)
- 4.2.3.2.1Technology
- 4.2.3.2.2Deployments
- 4.2.3.3I-HSPA
- 4.2.3.3.1Technology
- 4.2.3.3.2Deployments
- 4.2.4UMTS Network Evolution to 4G
- 4.3TDD Technologies
- 4.3.1TD-CDMA
- 4.3.1.1Technology
- 4.3.1.2Deployments
- 4.3.2TD-SCDMA
- 4.3.2.1Technology
- 4.3.2.2Deployments
- 4.3.3TDD's Position in UTRA
- 4.4CDMA Family of Technologies
- 4.4.1cdmaOne (IS-95)
- 4.4.1.1IS-95A
- 4.4.1.1.1Technology
- 4.4.1.1.2Deployments
- 4.4.1.2IS-95B
- 4.4.1.2.1Technology
- 4.4.1.2.2Deployments
- 4.4.2CDMA2000
- 4.4.2.1CDMA2000 1x
- 4.4.2.1.1Technology
- 4.4.2.1.2Deployments
- 4.4.2.21xEV-DO Release 0
- 4.4.2.2.1Technology
- 4.4.2.2.2Deployments
- 4.4.2.31xEV-DO Revision A
- 4.4.2.3.1Technology
- 4.4.2.3.2Deployments
- 4.4.3CDMA2000's Evolution to 4G
5. Market and Technology Trends
- 5.1Radio Access Network
- 5.1.1Open Base Station Architecture Initiative
- 5.1.2Common Public Radio Interface
- 5.2Core Network
- 5.2.1IMS
- 5.2.1.1Fixed-Mobile Convergence
- 5.2.1.2Multi-Access Radio Evolution
- 5.2.2Softswitching
- 5.3 Professional services
- 5.3.1 Managed Capacity and Hosting
- 5.3.2 Network Management Services
- 5.3.3 Deployment Services
- 5.3.4Maintenance Services
- 5.4Other Factors Impacting the Market
- 5.4.1Applications Capabilities
- 5.4.2Reliance on Contract Manufacturing
- 5.4.3Utilization of Lower Frequency Bands
6. Competitive Landscape & Vendor Profiles
- 6.1Competitive Landscape
- 6.2Vendor Profiles
- 6.2.1Alcatel
- 6.2.1.1Company Overview
- 6.2.1.2Product Portfolio
- 6.2.1.3Technical Strengths
- 6.2.1.4Service Capabilities
- 6.2.1.5Technology Focus
- 6.2.1.6Sales Revenue
- 6.2.1.7Strategic Direction
- 6.2.2Ericsson
- 6.2.2.1Company Overview
- 6.2.2.2Product Portfolio
- 6.2.2.3Technical Strengths
- 6.2.2.4Service Capabilities
- 6.2.2.5Technology Focus
- 6.2.2.6Sales Revenue
- 6.2.2.7Strategic Direction
- 6.2.3Fujitsu
- 6.2.3.1Company Overview
- 6.2.3.2Product Portfolio
- 6.2.3.3Technical Strengths
- 6.2.3.4Service Capabilities
- 6.2.3.5Technology Focus
- 6.2.3.6Sales Revenue
- 6.2.3.7Strategic Direction
- 6.2.4 Huawei Technologies
- 6.2.4.1Company Overview
- 6.2.4.2Product Portfolio
- 6.2.4.3Technical Strengths
- 6.2.4.4Service Capabilities
- 6.2.4.5Technology Focus
- 6.2.4.6Sales Revenue
- 6.2.4.7Strategic Direction
- 6.2.5LG Electronics
- 6.2.5.1 Company Overview
- 6.2.5.2Product Portfolio
- 6.2.5.3Technical Strengths
- 6.2.5.4Service Capabilities
- 6.2.5.5Technology Focus
- 6.2.5.6Sales Revenue
- 6.2.5.7Strategic Direction
- 6.2.6Lucent Technologies
- 6.2.6.1Company Overview
- 6.2.6.2Product Portfolio
- 6.2.6.3Technical Strengths
- 6.2.6.4Service Capabilities
- 6.2.6.5Technology Focus
- 6.2.6.6Sales Revenue
- 6.2.6.7Strategic Direction
- 6.2.7Motorola, Inc.
- 6.2.7.1Company Overview
- 6.2.7.2Product Portfolio
- 6.2.7.3Technical Strengths
- 7.2.7.4Service Capabilities
- 7.2.7.5Technology Focus
- 6.2.7.6Sales Revenue
- 6.2.7.7Strategic Direction
- 6.2.8NEC Corporation
- 6.2.8.1 Company Overview
- 6.2.8.2Product Portfolio
- 6.2.8.3Technical Strengths
- 6.2.8.4Service Capabilities
- 6.2.8.5Technology Focus
- 6.2.8.6Sales Revenue
- 6.2.8.7Strategic Direction
- 6.2.9Nokia Corporation
- 6.2.9.1Company Overview
- 6.2.9.2Product Portfolio
- 6.2.9.3Technical Strengths
- 6.2.9.4Service Capabilities
- 6.2.9.5Technology Focus
- 6.2.9.6Sales Revenue
- 6.2.9.7Strategic Direction
- 6.2.10Nortel Networks
- 6.2.10.1Company Overview
- 6.2.10.2Product Portfolio
- 6.2.10.3Technical Strengths
- 6.2.10.4Service Capabilities
- 6.2.10.5Technology Focus
- 6.2.10.6Sales Revenue
- 6.2.10.7Strategic Direction
- 6.2.11Samsung
- 6.2.11.1 Company Overview
- 6.2.11.3Technical Strengths
- 6.2.11.4Service Capabilities
- 6.2.11.5Technology Focus
- 6.2.11.6Sales Revenue
- 6.2.11.7 Strategic Direction
- 6.2.12Siemens AG
- 6.2.12.1Company Overview
- 6.2.12.2Product Portfolio
- 6.2.12.3Technical Strengths
- 6.2.12.4Service Capabilities
- 6.2.12.5Technology Focus
- 6.2.12.6Sales Revenue
- 6.2.12.7Strategic Direction
- 6.2.13ZTE Corporation
- 6.2.13.1 Company Overview
- 6.2.13.2 Product Portfolio
- 6.2.13.3Technical Strengths
- 6.2.13.4Service Capabilities
- 6.2.13.5Technology Focus
- 6.2.13.6 Sales Revenue
- 6.2.13.7Strategic Direction
7. Market Size and Forecasts
- 7.1Global Mobile Networks Market
- 7.1.1Growth Rates and Market Share
- 7.1.1.1Growth Rates
- 7.1.1.2Market Share
- 7.2Regional Mobile Networks Markets
- 7.2.1West European Market Share by Vendor
- 7.2.2East European Market Share by Vendor
- 7.2.3African Market Share by Vendor
- 7.2.4Middle Eastern Market Share by Vendor
- 7.2.5Asia-Pacific Market Share by Vendor
- 7.2.6Chinese Market Share by Vendor
- 7.2.7North American Market Share by Vendor
- 7.2.8Latin American Market Share by Vendor
- 7.3Market Share by Technologies
- 7.3.1 Market Share by GSM
- 7.3.2 Market Share by WCDMA
- 7.3.3 Market Share by CDMA
- 7.3.4 Market Share by Other Technologies
- 7.4Market Forecasts
- 7.4.1Forecasts by Regions
- 7.4.2Market Shares by Regions
- 7.4.3Forecasts by Technologies
- 7.4.4Market Shares by Technologies
- 7.4.5Forecasts by Radio, Core, and Services Segments
8. On the Road to 4G
- 8.14G Characteristics
- 8.1.1ITU's Vision
- 8.1.2Network Characteristics
- 8.1.3Network Architecture
- 8.2Marketplace Developments
- 8.2.1Emerging Competition
- 8.2.1.1802.16 - 4G Low-Mobility Standard?
- 8.2.1.2802.20 - 4G High Mobility Standard?
- 8.2.1.3 Alternative Access Technologies
- 8.2.2Industry Direction
- 8.2.2.1 Positioning New Mobility Standards
- 8.2.2.2 Implications for Mobile Service Providers
9. Conclusions
- 9.1 Report finidings
- 9.2 Recommendations
List of Figures
- Figure 1: Share of Mobile Networks Revenue by Vendor Type
- Figure 2: Alcatel's Mobile Networks Revenue by Technology
- Figure 3: Ericsson's Mobile Networks Revenue by Technology
- Figure 4: Fujitsu's Mobile Networks Revenue by Technology
- Figure 5: Huawei's Mobile Networks Revenue by Technology
- Figure 6: LG's Mobile Networks Revenue by Technology
- Figure 7: Lucent's Mobile Networks Revenue by Technology
- Figure 8: Motorola's Mobile Networks Revenue by Technology
- Figure 9: NEC's Mobile Networks Revenue by Technology
- Figure 10: Nokia's Mobile Networks Revenue by Technology
- Figure 11: Nortel's Mobile Networks Revenue by Technology
- Figure 12: Samsung's Mobile Networks Revenue by Technology
- Figure 13: Siemens' Mobile Networks Revenue by Technology
- Figure 14: ZTE's Mobile Networks Revenue by Technology
- Figure 15: Mobile Networks Market Share by Vendor - 2005
- Figure 16: Mobile Networks Market Share by Vendor - 2004
- Figure 17: Mobile Networks Market Share by Regions - 2005
- Figure 18: Mobile Networks Market Share by Regions - 2012
- Figure 19: Mobile Networks Technologies Market Share - 2005
- Figure 20: Mobile Networks Technologies Market Share - 2012
- Figure 21: Radio, Core, and Services Segments Market Share - 2005
- Figure 22: Radio, Core, and Services Segments Market Share - 2012
List of Tables
- Table 1: GPRS Coding Schemes
- Table 2: EDGE Modulation Coding Schemes
- Table 3: WCDMA - Downlink Dedicated Channel
- Table 4: WCDMA - Uplink Dedicated Channel
- Table 5: HSDPA - Data Rates by Mobile Device Categories
- Table 6: Alcatel's Mobile Networks Revenue by Region
- Table 7: Ericsson's Mobile Networks Revenue by Region
- Table 8: Fujitsu's Mobile Networks Revenue by Region
- Table 9: Huawei's Mobile Networks Revenue by Region
- Table 10: LG's Mobile Networks Revenue by Region
- Table 11: Lucent's Mobile Networks Revenue by Region
- Table 12: Motorola's Mobile Networks Revenue by Region
- Table 13: NEC's Mobile Networks Revenue by Region
- Table 14: Nokia's Mobile Networks Revenue by Region
- Table 15: Nortel's Mobile Networks Revenue by Region
- Table 16: Samsung's Mobile Networks Revenue by Region
- Table 17: Siemens' Network Revenue by Region
- Table 18: ZTE's Mobile Networks Revenue by Region
- Table 19: Mobile Networks Revenue 2005 & 2004 and Growth Rates
- Table 20: West European Mobile Networks Revenue by Vendor - 2005
- Table 21: East European Mobile Networks Revenue by Vendor - 2005
- Table 22: African Mobile Infrastructure Revenue by Vendor - 2005
- Table 23: Middle Eastern Mobile Networks Revenue by Vendor - 2005
- Table 24: Asia-Pacific Mobile Networks Revenue by Vendor - 2005
- Table 25: Chinese Networks Vendor Market Share - 2005
- Table 26: North American Mobile Networks Revenue by Vendor - 2005
- Table 27: Latin American Mobile Networks Revenue by Vendor - 2005
- Table 28: GSM Revenue and Market Share by Vendor - 2005
- Table 29: WCDMA Revenue and Market Share by Vendor - 2005
- Table 30: CDMA Revenue and Market Share by Vendor - 2005
- Table 31: Other Technologies Revenue and Market Share by Vendor - 2005
- Table 32: Mobile Networks Revenue Breakdown by Regions - 2005-2012
- Table 33: Mobile Networks Revenue Breakdown by Technology - 2005-2012
- Table 34: Radio, Core and Services Segments Revenue - 2005-2012
- Table 35: WiMax Data Rates as Function of Channel Size and Modulation
