European cellular infrastructure market to continue to fall in 2002 as operators delay 3G rollouts, according to latest report from IMS Research

August 23, 2002

1 Min Read

WELLINGBOROUGH, U.K. -- The European market for cellular infrastructure is projected to continue to fall in 2002 as heavily indebted operators delay 3G network roll-out, after waiting for terminals. IMS Research's latest report on the worldwide cellular market (regularly produced since 1995) estimates only 582,000 cellular transceivers/channel cards will be shipped in Europe, down 11% from last year. Demand for new infrastructure is driven by increases in subscriber numbers, by increased average traffic per subscriber and by the roll out of new networks. "At 12.5%, the projected subscriber growth in Europe in 2002 is far lower than the estimated 23.3% in 2001. Although average traffic per subscriber has started to increase, it is doing so only slowly without putting much pressure on network capacity. 3G operators have delayed their network launches as handset availability has slipped. The 3G roll out in 2002 will now mainly consist of limited network trials" stated the report's author, Alex Green. IMS Research forecasts, however, that 2003 will see some limited market recovery, as the 3G network roll out gathers pace. Further increase in the subscriber base and in traffic per subscriber will force operators to invest further in capacity-stretched 2G/2.5G networks to improve quality of service. However, growth in the 3G infrastructure market from 2003 to 2007 is predicted only to compensate for falling 2G/2.5G investment. This will leave the market flat at only a little above 700,000 transceivers/channel cards a year, 25% less than the boom year of 2000. Intex Management Services Ltd. (IMS)

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