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DoCoMo speeds up 4G
Markets & Business
3G infrastructure revenues reckoned to surpass 2G by 2003 Global 2.5 & 3G network buildout will surpass 2G build-outs by revenue in 2003, according to a new study “Global Next Generation Wireless Technology and Infrastructure Forecasts” bv The Strateais Group (Tel: ;l-202-530-7500).
(especially
In the US, although CDMA will
grow from 63% of all base-sta-
WCDMA will be the global
remain the dominant technolo-
tions worldwide
technology
gy, several operators
70% in 2007 (WCDMA 30%).
of choice
I
2000 53.2 9.4
2.5Gl3G 2G
36.8 2001 56.9
in Europe and Asia
announce
a firm decision
as they migrate from 2G to 3G)
technology
based on two key criteria: glob-
networks.
al roaming and easier migration to 4G.
choice
on a
for their 3G
The GSM platform (i.e. GSM, GPRS, EDGE and WCDMA) will
have yet to
47.8 80.7 2003
68.3 2002 56.4
40.8 77.6 2004
62.8 35.6 2005
now to over
46.5 22.1 2007
26.2 2006 53.2
Forecast 2001 cell-phone sales reduced again to 450-500m; further job cuts Due to the “stronger-than-antici-
strong growth. But in March
customers)
pated impact of demanding mar-
“unexpectedly
ing investments.
ket conditions” in the first two
and semiconductor”
months of 2001, as well as
have led Siemens to retract.
ment demand, reduced opera-
“increased economic
Chairman Heinrich von Pierer
tor subsidies, high inventory
says that the weak areas will
levels in the distribution
March Nokia cut its forecast for
affect Infineon Technologies
and continued
for Q1/2001 revenue growth
more than the rest of the group
due to excess vendor capacity.
uncertainty
(especially in the USA)“, in
weak cell-phone operations
are delay-
Phone sales are
suffering due to Iow replace-
chain
price pressure
(compared to Ql/ZOOO) from
(so previous
25-30% to 20% (Nokia Networks
profit targets will be met only if
up 30-35% but Nokia Mobile
Infineon is excluded
Phones up just 15-20%). It has
results).
general market slowdown”,
For Q1/2001 Ericsson
Alcatel’s
also cut its forecast for tot@ 2001 unit sales again from 500-550m (see Issue 2, page 4) to 45@5OOm.
expects
overall sales and
operators
from
Due to “excess inventory tribution
channels
in dis-
at the begin-
ning of the year, as well as a
now
sales of phones lower
handset division will
make a loss in Q1/2001, amid
than Q1/2000, total sales flat or
“growing fears that the mobile
lower (down from its January
phone market is becoming
is cutting 7,000 more jobs from
forecast of 15% growth), and its
urated”.Telecoms
its cell-phone
first quarterly loss in nine years
to meet much of the initial pur-
(of US$SOOm, instead of break-
chase cost of handsets to stimu-
ing even).
late demand, but are revising
Motorola
has announced operation
the next two quarters overall workforce
that it over
(5% of its
of 140,000)
bringing the total this year to
While handsets comprise
only
12,000 (36% of the unit’s staff).
18% of sales, infrastructure
Projecttions
(55%) is also slowing. Due to
for cell-phone
sales
for 2001 from various companies have now fallen from 500600m earlier this year, through Moterola’s sub-500m
warning in
February (see Issue 2, page 4), to below 450m from Siemens (just 10% up on last year’s 410m).
delays in rolling out next-gener-
their strategy. In March Alcatel put half of its staff at a factory making cell phones in Germany on a week’s leave.
ation handsets (now Q4 rather
Of Alcatel’s total revenue, hand-
than Q1/2001)
sets comprise
and the eco-
just 7% but total
nomic slowdown, the US in
telecoms-related
particular
85%.Alcatel
is postponing
expenditures.Also,
capital
in Western
already high penetration
activities
expects
are
its net-
working and optical units to offset the drop, but investors
Europe (in markets with and
After Q1/2001 sales up 32%, in
diminishing
February Siemens
subsidies they offer to lure new
predicted
sat-
carriers used
returns from the
are waiting to see whether slowdown
the
in the US economy
will impact Europe, it says.
I
3G infrastructure revenues reckoned to surpass 2G by 2003 Global 2.5 & 3G network buildout will surpass 2G build-outs by revenue in 2003, according to a new study “Global Next Generation Wireless Technology and Infrastructure Forecasts” bv The Strateais Group (Tel: ;l-202-530-7500).
(especially
In the US, although CDMA will
grow from 63% of all base-sta-
WCDMA will be the global
remain the dominant technolo-
tions worldwide
technology
gy, several operators
70% in 2007 (WCDMA 30%).
of choice
I
2000 53.2 9.4
2.5Gl3G 2G
36.8 2001 56.9
in Europe and Asia
announce
a firm decision
as they migrate from 2G to 3G)
technology
based on two key criteria: glob-
networks.
al roaming and easier migration to 4G.
choice
on a
for their 3G
The GSM platform (i.e. GSM, GPRS, EDGE and WCDMA) will
have yet to
47.8 80.7 2003
68.3 2002 56.4
40.8 77.6 2004
62.8 35.6 2005
now to over
46.5 22.1 2007
26.2 2006 53.2
Forecast 2001 cell-phone sales reduced again to 450-500m; further job cuts Due to the “stronger-than-antici-
strong growth. But in March
customers)
pated impact of demanding mar-
“unexpectedly
ing investments.
ket conditions” in the first two
and semiconductor”
months of 2001, as well as
have led Siemens to retract.
ment demand, reduced opera-
“increased economic
Chairman Heinrich von Pierer
tor subsidies, high inventory
says that the weak areas will
levels in the distribution
March Nokia cut its forecast for
affect Infineon Technologies
and continued
for Q1/2001 revenue growth
more than the rest of the group
due to excess vendor capacity.
uncertainty
(especially in the USA)“, in
weak cell-phone operations
are delay-
Phone sales are
suffering due to Iow replace-
chain
price pressure
(compared to Ql/ZOOO) from
(so previous
25-30% to 20% (Nokia Networks
profit targets will be met only if
up 30-35% but Nokia Mobile
Infineon is excluded
Phones up just 15-20%). It has
results).
general market slowdown”,
For Q1/2001 Ericsson
Alcatel’s
also cut its forecast for tot@ 2001 unit sales again from 500-550m (see Issue 2, page 4) to 45@5OOm.
expects
overall sales and
operators
from
Due to “excess inventory tribution
channels
in dis-
at the begin-
ning of the year, as well as a
now
sales of phones lower
handset division will
make a loss in Q1/2001, amid
than Q1/2000, total sales flat or
“growing fears that the mobile
lower (down from its January
phone market is becoming
is cutting 7,000 more jobs from
forecast of 15% growth), and its
urated”.Telecoms
its cell-phone
first quarterly loss in nine years
to meet much of the initial pur-
(of US$SOOm, instead of break-
chase cost of handsets to stimu-
ing even).
late demand, but are revising
Motorola
has announced operation
the next two quarters overall workforce
that it over
(5% of its
of 140,000)
bringing the total this year to
While handsets comprise
only
12,000 (36% of the unit’s staff).
18% of sales, infrastructure
Projecttions
(55%) is also slowing. Due to
for cell-phone
sales
for 2001 from various companies have now fallen from 500600m earlier this year, through Moterola’s sub-500m
warning in
February (see Issue 2, page 4), to below 450m from Siemens (just 10% up on last year’s 410m).
delays in rolling out next-gener-
their strategy. In March Alcatel put half of its staff at a factory making cell phones in Germany on a week’s leave.
ation handsets (now Q4 rather
Of Alcatel’s total revenue, hand-
than Q1/2001)
sets comprise
and the eco-
just 7% but total
nomic slowdown, the US in
telecoms-related
particular
85%.Alcatel
is postponing
expenditures.Also,
capital
in Western
already high penetration
activities
expects
are
its net-
working and optical units to offset the drop, but investors
Europe (in markets with and
After Q1/2001 sales up 32%, in
diminishing
February Siemens
subsidies they offer to lure new
predicted
sat-
carriers used
returns from the
are waiting to see whether slowdown
the
in the US economy
will impact Europe, it says.
I