Date: 17/09/2010

Wireless packet core market to grow by 19% in Q2' 2010

Dell'Oro Group has estimated that the Wireless Packet Core market has grown by 19% sequentially during the second quarter of 2010. It has also been reported that large part of the growth is due to sustained growth in data and signaling traffic from mobile broadband services and smartphones. On a year-over-year basis, the market was lower due to 3G network-related investments in China that peaked in the second quarter of 2009.

According to the report, Ericsson and Nokia Siemens both gained market share in the second quarter of 2010, while Huawei's share declined despite higher revenues than the first quarter of 2010.

"As network operators begin to transition to LTE, the rapidly growing wireless packet core equipment market is becoming more competitive and market share shifts are looming" said Greg Collins, Vice President at Dell'Oro Group. "Not only are there new entrants like Juniper and Tellabs, but operators have begun to opt for different vendors for their evolved packet core. For example, Cisco supplies Verizon Wireless' current wireless packet core equipment, but, as Verizon Wireless has begun to deploy LTE, it has awarded the evolved packet core to both Cisco and Alcatel-Lucent. MetroPCS, a long-time Alcatel-Lucent customer, has awarded its LTE network, both radio and evolved packet core, to Ericsson," Collins added.