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LTE RAN Market Almost Tripled in 3Q12, Not Enough to Offset Slower 2G/3G Spending

Nokia Siemens Networks Increased Market Share

REDWOOD CITY, Calif., Nov. 13, 2012 /PRNewswire/ -- A recently published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, indicates that rapidly growing LTE revenues were not enough to offset falling 2G/3G revenues as the total mobile RAN market declined 11 percent in 3Q12.  RAN equipment sales that started to weaken in the latter part of 2011, continued to affect total mobile RAN revenues during the third quarter of 2012, driven by a technology mix shift from 3G to 4G, lower average selling prices, more network modernization projects and uncertain macro-economic conditions. 

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"This is the fourth straight quarter that total mobile RAN revenues have suffered double-digit declines year over year," said Stefan Pongratz, analyst with Dell'Oro Group. "The good news is that we are seeing operators increasingly putting an emphasis on network coverage, performance, and quality, in the hope of differentiating their networks.  They know that once they fall behind on LTE coverage/performance, it will become increasingly challenging to generate net adds.  This is spurring LTE spending/commitments not only in the US, Japan, and Korea, but now also in Russia, Brazil, and even the UK and France," continued Pongratz.

The report also reveals that Ericsson maintained its leadership position in LTE. Nokia Siemens Networks, helped by operators commercializing LTE in Japan, passed Alcatel-Lucent to become the number two LTE vendor as measured by RAN revenue shares.  Huawei and Alcatel-Lucent shared the third spot with approximately 15 percent of LTE RAN revenue shares respectively.

About the Report
The Dell'Oro Group Mobile RAN Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices, transceiver or RF carrier shipments, and unit shipments for base station controllers, base transceiver stations for GSM, CDMA, WCDMA, Mobile WiMAX, and LTE.  To purchase this report, call Julie Learmond-Criqui at +1.650.622.9400 x244 or email [email protected].

About Dell'Oro Group
As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions.  For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.

SOURCE Dell'Oro Group

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