BTS Component Market to Shrink

SCOTTSDALE, Ariz. -- During the next five years, those that sell semiconductor components into the cellular base station market are likely to see their revenues shrink, reports In-Stat/MDR (http://www.instat.com). The high-tech market research firm finds that while the number of worldwide cellular subscribers continues to grow, and the number of services that these subscribers use continues to increase as well, this, unfortunately, does not translate into increasing base station semiconductor revenues. Over the period from 2002 to 2007, BTS semiconductor revenue is forecast to drop from just under $2.3 billion in 2003 to just under $1.6 billion in 2007, a Compound Annual Growth Rate (CAGR) of -8.8%.

"There is no one main reason why base station semiconductor revenue is forecast to decrease over the next five years, but rather many, that when taken together, spell decreasing revenues," says Allen Nogee, a Principal Analyst with In-Stat/MDR "These include the long life-span of cellular base stations, increased manufacturing efficiencies, the lack of exponential customer uptake of new wireless data services, increasing spectrum efficiency of cellular technologies, and decreasing component prices. Add these factors, and you have a clear picture that points to problems for those companies that manufacture base station components."

In-Stat/MDR has also found that:

The report, "Rough Waters Ahead: Five - Year Cellular Base Station Component Forecast" (#IN030928WT),contains forecasts for channels, and both total base station semiconductor revenue and power amplifier semiconductor revenue for TDMA, CDMA, GSM, PDC, and W-CDMA base stations, for the years 2002 thru 2007. To purchase this report, or formore information, please visit: http://www.instat.com/catalog/Wcatalogue.asp?ID=3 or contact Rick Vogelei at 480-609-4533; [email protected] report is priced at $3,495.00 U.S. Dollars.

In-Stat/MDR