NEC edges ahead of Ericsson in microwave mkt

LONDON, UK: NEC moved into the #1 position in 1Q10 for worldwide microwave equipment revenue, edging ahead of perennial rival Ericsson, says Infonetics Research..

The worldwide microwave equipment market hits $1.4 billion in 1Q10, down 10 percent from 4Q09. Year-over-year, from 1Q09 to 1Q10, the microwave equipment market is up 15 percent.

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This is according to market research firm Infonetics Research's first quarter of 2010 (1Q10) Microwave Equipment market share and forecast report.

Richard Webb, directing analyst, WiMAX, microwave, and mobile devices, Infornetics Research, said: "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."

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.

"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 Webb.

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.

The majority of microwave equipment purchased (81 percent in 1Q10) continues to be deployed to backhaul traffic for mobile backhaul networks.