Research released recently reported that the mobile telecom equipment market will experience a 7% growth that will see its overall fortune in earnings rise to a staggering $40.3 billion in 2011. This research must come as a sign of relief, given the sectors dwindling revenues that it has experienced over the last two years. It is a positive sign of the slowly revamping and regaining sector that has seen record losses for the last two years and the last thing of the industry players’ mind is further shrinking.
4G Networks Lead
The report established that the forecasted growth will mainly be bolstered by investments in upcoming and new 4G networks. The research was done by iSuppli and was released on Wednesday last week to a market that was pleased and a bit relieved. As such, the research report posits that as investments in 4G Lon Term Evolution (LTE) networks increase, they will subsequently lead to a lot of relief and cease duress on some foremost global European equipment vendors such as Ericsson, Nokia, Siemens Networks and Alcatel-Lucent that were the worst hit in the last two years. The European firms experienced.
Effects of Recession
On its part, the telecom gear market declined by 5.7% last year due to reasons such cutting down spending as companies sought measures to fight the global financial meltdown, and secondly the Chinese vendors who brought in cheap prices, resulting in a tumble in prices that is expected to deep further by about 2.3% in 2010 as top operators in the industry sustain measures to cut costs and improve efficiency, the report detailed. Even as iSuppli makes its own forecasts that seem too optimistic of the mobile gear market, the top companies themselves have remained cautiously optimistic, with their forecast rather being cautious in their approach. For instance Nokia Siemens has predicted that the mobile gear market will be flat in 2010 whereas Alcatel-Lucent has forecast that the market would grow by a slight margin in 2010.
Cautious Forecasts
However, all of the mobile gear vendors are yet to release their forecasts for next year, leaving iSuppli’s estimates as the ones to be used for the moment. The research firm further said that from next year, wireless carriers in developed nations will commence the deployment of 4G for the purposes of clocking faster speeds and easing the huge data traffic currently being witnessed. In that regard, the 4G led growth in the market will keep apace up to and through the year 2014.
Regardless of the slight disparities in the forecast, the mobile gear is wishing it can make a comeback sooner than later given its dull performance for the last two years. Companies however remain optimistic, albeit cautiously for obvious reasons, that there might be a slight change and an improvement in the mobile market gear is possible. Keep your eyes open and your ears alert to see how this puns out.
