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Ericsson Shines Despite Disappointing WCDMA Sales in Third Quarter of 2006

CDMA Revenues Rebound

Redwood City, Calif. – November 20, 2006 – Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reported today that the worldwide mobility infrastructure market was flat sequentially in the third quarter of 2006, in part due to lackluster sales of WCDMA equipment.

Although WCDMA technology has been on the market for over six years, the move to WCDMA has been slower than anticipated. The transition from GSM to WCDMA has lagged in many regions due to the high cost of WCDMA handsets and lack of compelling applications, content, and attractive pricing necessary to spur adoption, according to Greg Collins, Vice President of Mobility Infrastructure Research.

“Despite the disappointing WCDMA market results, Ericsson increased its market share and extended its position as the WCDMA leader,” said Collins. “We expect that WCDMA market growth will accelerate in 2007, as subscriber momentum continues to build and new footprints are built in North America and Asia,” added Collins.

The report also indicates a CDMA market resurgence in the recent quarter—growing nearly 30 percent sequentially—driven by revenues from CDMA 1X-EV-DO Revision A upgrades, especially in North America.

About the Report

The Dell’Oro Group Mobility Infrastructure Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, transceiver or RF carrier shipments, and unit shipments for base station controllers, base transceiver stations, and mobile switching centers for GSM/GPRS/EDGE, CDMA, and WCDMA. To purchase this report, please contact Karen Yang, call +1.650.622.9400 x222 or email Karen@DellOro.com.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.DellOro.com.

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