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Dell’Oro Group Lowers Sales but Raises Voice Channel Forecast for Mobility Infrastructure

Manufacturer and Service Provider Consolidations Change Market Outlook

Redwood City, Calif. – August 03, 2006 – Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, recently published a report that reduces its revenue forecast for mobile infrastructure in the near term and through 2010. In contrast, Dell’Oro Group raised its forecast for voice channel capacity largely because of ongoing strength in subscriber growth. Dell’Oro Group predicts service providers will reduce spending on equipment and focus spending on services, consulting, and applications as they will become increasingly vital.

“Mergers of service providers have pressured equipment vendors to also consolidate, such as the recent merger announcements of Alcatel and Lucent and Nokia and Siemens, and both of these factors are impacting the Mobile Infrastructure Market in many ways,” commented Greg Collins, Senior Director of Mobile Infrastructure research at Dell’Oro Group. “The larger carriers that have resulted from these mergers are putting increasing pressure on infrastructure equipment prices and are also demanding more applications, higher levels of service and consulting advice from the equipment vendors to help integrate fixed and mobile networks. By consolidating, infrastructure vendors will be better able to address these requirements by benefiting from economies of scale on equipment manufacturing, research and development, as well as having a large, global services and support organiztion to help the carriers with consulting advice,” Collins added.

About the Report

The Dell’Oro Group 5-Year Forecast Report offers a complete overview of the Mobility Infrastructure industry with tables covering manufacturers’ revenue, average selling prices, transceivers or RF carriers shipments, and unit shipments for base station controllers, base transceiver stations, and mobile switching centers for GSM/GPRS/EDGE, CDMA, and WCDMA. To purchase this report, call +1.650.622.9400 x225 or email Margaret@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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