Mobile data infrastructure market to see sharp decline


The mobile data infrastructure market is forecast to experience a double digit decline in revenues in 2009 according to a recent study by IMS Research.  Mobile WiMAX may be hardest hit as credit markets dry up, jeopardizing many of the smaller pure WiMAX vendors’ most important customers.

Coincidentally, this economic downturn comes at a time when many operators are outlining their plans to either upgrade their existing 3G networks or migrate to next generation networks.  Before the economic crash, many thought 2009 would be a year defined by aggressive expansion of mobile data networks and large investments in 4G. 

Although the IMS Research report, “Mobile Broadband: 4G Network Evolution” forecasts a slowdown in 2009, a quick recovery is expected in 2010 on the heels of widespread 3G upgrades and next generation network investments. Other report findings include:

*  Installed base of mobile data users is forecast to remain relatively insulated from the economic downturn and achieve steady growth throughout the forecast period,

* Upgradeable base stations will accelerate the adoption of next generation network infrastructure equipment

* Chinese infrastructure vendors are expected to increase their market share over the forecast period

* Total mobile data infrastructure market is expected to be worth between $30-35 billion by 2013