Dell'Oro: CDMA Market Takes a Plunge

The worldwide CDMA infrastructure market declined over 25 percent from the year ago quarter, according to the Dell'Oro Group.


With North America being the predominant CDMA market, significant declines in spending by the two largest CDMA operators in the region had a major impact on the contraction of the worldwide market. The significant contraction in North America was partially offset by the CDMA growth in the Asia Pacific region.


"In addition to Verizon Wireless' CAPEX being down approximately $150 million, Sprint's CAPEX was down nearly $1 billion," commented Scott Siegler, Analyst of Mobility Infrastructure research at Dell'Oro Group. "As a result of this contraction in North America, North America's share of the CDMA market fell to approximately two-thirds share, from over three-quarters share in the second quarter last year. Growth in Asia Pacific, particularly in India, helped to offset these declines. In the quarter, Reliance, Tata and BSNL continued to see solid CDMA subscriber growth and continued to invest in the growth of their CDMA networks. However, we believe the region will experience declines in the second half of the year, as we expect all three operators to begin to focus more capital towards their GSM networks," Siegler continued.


The report also shows that the declines in the CDMA market were offset by the GSM market having another solid quarter, with revenue growing both sequentially and year-over-year.http://www.delloro.com