Worldwide 2G, 3G and 4G equipment market dips by 14% in Q1 2012

The global 2G, 3G, and 4G (including LTE and WiMax) equipment market has dipped by 14% and reaches $10 billion in the first quarter 2012; while LTE equipment to hit $17.5 billion in 2016, said a report by Infonetics Research.

From the year-ago first quarter the market declined by 8%. In Q1 2012, 3G mobile packet core network equipment (GGSNs, SGSNs, PDSNs) increased by 4% sequentially and up 5% from 1Q11, reflecting ongoing 3G expansion activity tied to 2G modernization.

The report said, "319 mobile operators have committed to LTE as of early May 2012, up from 285 the previous quarter, and 72 LTE operators have launched commercial services in 37 countries, according to the Global Mobile Suppliers Association (GSA). In 1Q12, Ericsson and Alcatel-Lucent are once again neck and neck in the race for global LTE revenue leadership, followed by Huawei."

"The overall mobile infrastructure market took a beating in the first quarter of 2012," stated Stéphane Téral, principal analyst for mobile infrastructure and carrier economics at Infonetics Research.

He added, "We saw weak 2G and 3G activity across the board, exacerbated by China Mobile's dramatic GSM pause on the heels of extraordinary shipment levels in the previous quarter. LTE and WIMAX equipment revenue also declined sequentially. Nonetheless, LTE spending is up 128% from the year-ago first quarter, and the number of mobile operators committing to LTE continues to increase rapidly. Infonetics forecasts the LTE equipment market to grow to $17.5 billion in 2016."