SDA India is an online resource for Software, Development,IT, Architecture, Open Source, Mobile, Security, Databases, Delphi, C, OS, Asp, .Net, Php, Xml, Java

The cellular network equipment market is expected to generate more than USD 55 billion in revenue this year. "The economic logic for consolidation in the cellular network equipment market has long been compelling," notes Gabriel Brown, Chief Analyst for Unstrung Insider and author of the report, 'Vendor M&A Frenzy: What Happens Next'. In a chain of events sparked by service-provider consolidation in North America, the Merger and Acquisition (M&A) deadlock has been broken and the sector is now undergoing a deep restructuring process..

Major deals involving industry giants Alcatel, Ericsson, Huawei, Lucent Technologies, Nokia, Nortel Networks, Siemens, and others are creating a de facto oligarchy of infrastructure suppliers that will account for more than 80 percent of worldwide cellular infrastructure revenues, says Brown. "Size directly influences a vendor's ability to invest in R&D, optimise the supply chain and manufacturing, provide financing, achieve geographic diversity, and, ultimately, make a profit."
Key findings of the report include:

• The cellular infrastructure market in the first half of 2006 was flat relative to the first half of 2005, but with lower profitability; this decline in profit margins is a key factor driving vendor consolidation
• Post-consolidation market shares show the three vendors, Ericsson, Alcatel-Lucent, and Nokia-Siemens will account for almost 70 percent of the USD 56 billion worldwide wireless infrastructure market in 2006
• 3G systems will account for about 20 percent of wireless infrastructure revenues this year, growing to 50% of the market in 2010, another critical market dynamic driving vendor M&A and partnership activity
• Smaller vendors will come under even greater pressure in the next few years, with some abandoning UMTS 3G in favor of pre-positioning in future markets using OFDMA technologies, such as WiMax