WCDMA to drive base station deployments
LTE to account for 20% of base station deployments by 2010, but WCDMA will dominate for some time to come, according to In-Stat
LTE base stations are set to account for 20% of total base station deployments by 2013, while WCDMA will continue to be "the work horses of wireless data networks" according to analysts from US research organisation, In-Stat.
By 2013, In-Stat forecasts that WCDMA will exceed 70% of total base station revenue, while LTE's share will grow to a modest 20% of the total.
However, while the predicted LTE base station deployments may be less than some industry insiders had expected, the report stressed that roll out of the technology is happening.
"The majority of the committed operators have roll-outs scheduled for 2012 and 2013," the report said. "In the US, Verizon is in the process of deploying LTE with Ericsson and Alcatel-Lucent equipment, Alcatel-Lucent supplies most of their existing CDMA equipment. Verizon has said that it hopes to have 20-30 markets with operating LTE by the end of 2010, with more in 2011, and an LTE smartphone as well in 2011."
In-Stat also added that a projected 3% CAGR decline in base station revenues between 2008 and 2013 was partly attributable to the lower costs associated with deploying LTE cell sites.
"Not only do base stations continue to drop in price, but also the mix of base stations is changing. Smaller base stations are being deployed, and many more LTE base stations are forecast to ship. LTE base stations are significantly cheaper than WCDMA base stations and this will account for much in the way of decreased base station revenue going forward," the report stated.