Global GSM Market Likely to Continue to Gain Ground until 2014, Says Frost & Sullivan

SHANGHAI -- Global GSM shipments increased from 2.6 million to 3.4 million TRXs between 2004 and 2008. Shipments are expected to rise further over the next 4-5 years, particularly as prices continue to fall.

Today, GSM accounts for 83.5 percent of global mobile subscribers. While GSM's leadership has remained stable for a long time, it is likely that 3G will reduce its share to 56.4 percent by the end of 2013. The shift from GSM to 3G will be spurred in part by the ever-richer application sets, as well as, availability of handsets and greater affordability of services.

On a global basis, the key participants in the GSM equipment market include: Alcatel-Lucent; Ericsson; Huawei Technologies; Nokia Siemens Networks; and ZTE Corporation. The relative market share of each vendor varies between mature and emerging markets.

In emerging markets, where growth is still being fuelled by newly added subscribers, resulting in higher mobile penetration rates, GSM is also the leading standard. For example, GSM's market share by the end 2007 in Brazil was 76.5 percent, in China 91.9 percent, in India 78.9 percent and in Russia 99.3 percent.

While incumbent vendors such as Nokia Siemens Networks and Ericsson retain their stronghold on the telecoms equipment market, companies such as Huawei and ZTE, which are typically seen as challengers in GSM equipment markets, are playing an increasingly leading role and capturing more market share, particularly where growth is driven by newly added subscribers.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation, and leadership. The company's Growth Partnership Service provides the CEO and CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages nearly 50 years of experience in partnering with Global 1000 companies, emerging businesses, and the investment community from 35 offices on 6 continents. To join our Growth Partnership, please visit http://www.frost.com.