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NEC Edges Ahead of Ericsson in Microwave Equipment

­The worldwide microwave equipment market hit $1.4 billion in 1Q10, down 10% from 4Q09, according to Infonetics Research. Year-over-year, from 1Q09 to 1Q10, the microwave equipment market is up 15%.

NEC moved into the #1 position in 1Q10 for worldwide microwave equipment revenue, edging ahead of perennial rival Ericsson, while the majority of microwave equipment purchased (81% in 1Q10) continues to be deployed to backhaul traffic for mobile backhaul networks.

"Though some of the first quarter decline in the microwave equipment market can be attributed to an expected seasonal weakness, it also reflects current service provider capital intensities (revenue-to-capital-expenditure ratios), which are still at historic lows. Whilst mobile operators cannot afford to cap their investment in mobile backhaul networks, they remain generally cash-conservative, and so many are stalling backhaul upgrades," explains Richard Webb, Infonetics Research's directing analyst for WiMAX, microwave, and mobile devices.

The report added that drivers remain strong for the microwave equipment market, namely expansive growth in mobile traffic driven by mobile broadband adoption, spurring service providers to upgrade their networks.Worldwide, the microwave equipment market, including TDM, dual Ethernet/TDM, and Ethernet-only microwave equipment, is forecast by Infonetics to hit $7.1 billion in 2014.

Источник: Cellular news

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