Subject: [NEXTEL-1] Wireless infrastructure sales to remain strong - report

From: Marcel <[email-masked]>
Date: Thu, 23 Jan 2003 04:34:24 -0500

Wireless infrastructure sales to remain strong - report

Posted to the site on 23-Jan-03

Despite a 22% decline in spending in 2002, the demand for wireless and mobile network
infrastructure remains strong, driven by the continued interest in mobile solutions among
corporate users and consumers. IDC says that it expects annual spending on wireless and
mobile network infrastructure to grow from US$38.3 billion in 2002 to nearly US$49 billion
in 2007. Although the idea of 3G mobile networks has been under attack over the past year,
3G networks will enjoy widespread deployment over the coming years.
"The essential rationale for deployment of 3G networks -- gaining spectrum efficiencies,
easing network capacity constraints, lowering operating costs, and expanding revenue
opportunities through provisioning of data services -- remains intact," said Shiv K.
Bakhshi, Ph.D., research manager for the Wireless and Mobile Network Infrastructure
program.
The rising popularity of MMS and picture messaging as well as the proliferation of public
WLANs and hotspots will serve to legitimize the culture of data consumption in a mobile
environment, and spur deployment of network infrastructure, Bakhshi added.
While wireless data services will continue to be the focal point of attention, traditional
voice services will attract a fair share of network infrastructure spending in both
developed and developing markets. In developed economies, voice-related spending will be
driven by the increasing salience of Quality of Service issues related to voice offerings;
in developing economies, it will be driven by the massive pent-up demand for voice
connectivity. The so-called 2.5 mobile networks will enjoy a longer shelf life than
originally argued by infrastructure suppliers.

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