Mobile gear mkt to grow 7 p.c. in 2011: iSuppli

HELSINKI, FINLAND: The Mobile telecom equipment market will grow 7 per cent to $40.3 billion in 2011 after shrinking for two years in a row, helped by investments in new 4G mobile networks, research firm iSuppli said on Wednesday.

Investments in fourth-generation LTE (Long Term Evolution) networks are set to ease the pressure on top European equipment vendors Ericsson, Nokia Siemens Networks and Alcatel-Lucent, who have struggled with falling sales and profits.

Wireless telecom gear market contracted 5.7 per cent in 2009 as operators cut spending in recession and aggressive Chinese vendors drove down prices, and will tumble a further 2.3 per cent this year as operators continue to focus on costs, iSuppli said.

The research firm is more cautious for 2010 than top vendors such as Nokia Siemens, which has forecast a flat market this year, while Alcatel-Lucent has estimated the market would even grow slightly this year.