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Mobile network market drops 12%

Cape Town, 24 May 2004

The global market for mobile networks declined 12% in 2003, as deployments of third-generation (3G) networks were further delayed, according to a new Gartner report.

The international research firm says spent even less in 2003 than in 2002. Investments in access, switching, applications and core infrastructure for mobile networks totalled $40 billion, down from $45 billion in 2002.

"Although deployments of 3G networks were delayed in 2003, the outlook for 2004 is more positive," says Jason Chapman, principal analyst at Gartner. "Operators have reduced their debt, reported stronger fourth quarter results and many have announced plans to increase their capital expenditure."

According to Gartner, Ericsson remained the leading vendor in the mobile infrastructure market. It took 26% of spending, but lost three points of market share compared with 2002.

"The company is well placed to profit from more 3G deployments in 2004, thanks to its leading position in WCDMA technology," Gartner says.

Nokia and Siemens increased their market share to 14% and 13% respectively, helped by healthy spending on GSM and WCDMA roll-outs.

GSM dominated the number of contract announcements in 2003, accounting for 64% of the total number of announced contracts and 59% based on total contract value. WCDMA and CDMA both had 14% of the number of announced contracts, although CDMA surpassed WCDMA in terms of contract value with 37%, Gartner says.

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