Mobile packet core network leader Ericsson, the top telecom equipment vendor, faces pressure from Huawei.
In a research report dated July 17, 2013, ABI Research stated that Ericsson remains the leader in overall core network market share. But there will be increasing pressure from Huawei and others as the market trends to 4G.
When China Mobile and China Telecom expand LTE / 4G network, telecom equipment vendors such as Huawei and ZTE are well positioned to gain in Chinese 4G market.
Besides Ericsson, according to several telecom industry analysts, there will be pressure on Nokia Siemens, Alcatel-Lucent, etc. once the China Mobile 4G deals go up for grabs. (Will Huawei, ZTE, Samsung gain ground from China Mobile 4G plan )
As per the 4G tender offer of China Mobile, it seeks to build 207,000 base stations in 31 provinces around the country.
The company is also preparing for a TD-LTE terminal tender bidding and plans to purchase more than 1 million terminals by the end of 2013.
If China Mobile meets its goals, the number of domestic base stations for 4G networks will be equal to the number for 3G networks, which will narrow the gap between China and other countries in terms of network development.
ABI Research says 3G and 4G mobile broadband will continue to drive demand for mobile packet core equipment. The mobile packet data core network infrastructure market will reach $1.8 billion in 2013.
Continued growth in 3G and 4G traffic will propel the mobile packet core Infrastructure to a cumulative $10 billion market over the next five years.
The overall mobile core network equipment market declined 12 percent in Q1 2013.
In North America the success of LTE is supplanting 2G and 3G traffic and eliminating capacity expansion needs for those technologies. Other parts of the world exhibit similar conditions, with packet core network equipment most in demand, ABI Research noted.
The 2G / 3G / 4G mobile infrastructure
Out of this, LTE revenue was $2.7 billion in Q1, up 21 percent quarter-over-quarter and 108 percent year-over-year.
Ericsson remains king of the RAN, with double the revenue market share of #2 Nokia Siemens Networks.
Meanwhile, Dell’Oro Group says evolved packet core revenue rose 150 percent during the first quarter of 2013.
The wireless packet core market increased 22 percent year-over-year during the same period. Market share shifts moved Cisco Systems to the number two position overall in the total wireless packet core market, said Dell’Oro Group.