Global wireless infrastructure market retracts, despite strong 3G growth

Growth in the mobile infrastructure market has been declining in 2009, despite strong growth in the 3G (WCDMA) market. The decline in growth of the 2G (GSM) wireless market has caused sales of wireless infrastructure equipment (cellular towers and base stations) to decline some 12% in the second quarter, compared to Q2 2008.

China and India have been big drivers in 2G GSM market growth. As the two largest emerging markets, these regions are responsible for a lot of infrastructure spending. But, despite a growing 2G subscriber base, it seems investments into 2G infrastructure expansions have slowed. China has been concentrating its resources on building out its 3G WCDMA infrastructure as it plays catch-up with the rest of the developed world. India, on the other hand, has been working to make more of their existing infrastructure, presumably through software upgrades, rather than buying new base stations.

Shipments of GSM base stations dropped 10%, as the GSM market fell to below 50% of the wireless market. It seems that 3G networks are beginning to dominate the globe. And, despite projections for renewed 2G growth and increased 3G adoption, the overall infrastructure market is expected to decline 10% in 2009.

[Via: CN]