Market Study Shows Wireless Contract Awards Growing
7/7/2000 GSM resurgence and next-gen network growth cited as main drivers.
Movement towards 2.5 and 3G wireless networks is leading to signficant growth in wireless contract awards, according to a new report from Cahner’s In-Stat Group.
In 1999, wireless contract award values increased 21.6% over 1998 to more than $28 billion. Researchers found that the general upturn in the wireless industry is primarily the result of dramatic increases in activity in Asia and South America, as well as the movement to GPRS and WAP-enabled 21/2G and 3G systems. This growth is projected to continue unabatedly for at least the next three years.
On the geographic front, the Americas dominated 1999 with 59.7% of the total awards publicized. ROW garnered 24.2%, followed by Europe with 14.5% and Japan with 1.5%. 3G continues to make its presence known, along with GPRS and WAP, however, the big news for the year is the dramatic resurgence of GSM-based technologies, which captured more than 34% of the awards. Among wireless manufacturers, Ericsson and Nokia saw the most significant drops in market share at 10 and 7% respectively from the previous year, while Nortel and Lucent Technologies received the most considerable gains of 11 and 15.7%. However, despite its significant loss, Ericsson was still able to stay on top, beating out Nortel by 2% Share of Market (SOM). Nortel was able to obtain 22.2% total SOM and Lucent Technologies was firmly entrenched in third place, with a 22% SOM, followed by Nokia and Motorola.
The study also found that:
The top 5 major wireless companies hold 91.1% SOM, up from 80.8% last year. In 1999, 29 companies received wireless contract awards, with only 8 of them holding market shares in excess of 1%.
With regards to technologies, CDMA locked up second-place with 28% of the awards, while TDMA continued to do well with 18%, and Wireless Local Loop had a 7% Share Of Market.
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