Wireless Packet Core Market Expected to Grow in 2010 Despite First Quarter Volatility, According to Dell'Oro Group

Huawei Takes Top Spot as Ericsson and Nokia Siemens Experience Large Sequential Drops

Jun 16, 2010, 09:07 ET from Dell'Oro Group

REDWOOD CITY, Calif., June 16 /PRNewswire/ -- Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, announced today that the wireless packet core market contracted 30 percent sequentially during the first quarter this year due to seasonal factors, an extraordinarily strong previous quarter, and order and revenue volatility. Despite this very large drop in the first quarter, however, the market is forecast to grow in the remainder of 2010.  

"First quarter results were only a bump-in-the-road for the wireless packet core market this year," said Greg Collins, Vice President at Dell'Oro Group. "Data usage and smartphone penetration continue to increase and will drive the need for more signaling and bandwidth capacity.  Because of these strong demand drivers and despite lower than expected first quarter results, our forecast for 2010 remains essentially unchanged at $2.1 billion, or almost 10 percent growth versus 2009," he added.

The report indicates that Huawei surpassed both Ericsson and Nokia Siemens in the first quarter to capture the top spot in the market with more than 25 percent revenue share.  Given a very strong fourth quarter in 2009 in North America for GGSN and SGSN equipment, Ericsson and Nokia Siemens both saw very large sequential declines in the first quarter this year due to order volatility.  With the anticipated growth in wireless data and signaling needs, it is likely that both of these vendors will rebound in the coming quarters.

About the Report

The Dell'Oro Group Wireless Packet Core Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers' revenue, average selling prices and sessions shipped for Gateway GPRS Support Node (GGSN), Serving GPRS Support Node (SGSN), and Packet Data Serving Node (PDSN) equipment.  To purchase this report, please contact Emily Kendall, call +1.650.622.9400 x223 or email Emily@DellOro.com.

About Dell'Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell'Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions.  For more information, contact Dell'Oro Group at +1.650.622.9400 or visit www.DellOro.com.

SOURCE Dell'Oro Group