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Restructuring of China Telecommunications Industry to Have Significant Impact on Mobile Infrastructure Market

WCDMA and CDMA Markets to Benefit

Redwood City, Calif. – August 7, 2008 – In a newly released report by Dell’Oro Group, the trusted source for information about the telecommunications and networking industries, the recently announced restructuring of the telecom industry in China is expected to greatly benefit the mobile infrastructure market over the next five years. According to the report, growth in China will help WCDMA market revenues and base station shipments surpass those of the GSM market in 2011.

“We believe the restructuring of the Chinese telecom industry will be completed by the first quarter of 2009,” stated Scott Siegler, Analyst of Mobility Infrastructure research at Dell’Oro Group. “Once the restructuring is complete, we expect 3G licenses to be issued to the three mobile operators. China Mobile will be issued a TD-SCDMA license. The reorganized China Unicom is likely to be issued a WCDMA license, and we forecast the operator will begin deploying its WCDMA network beginning in 2010. In addition, we believe in the second half of 2009, the CDMA market will begin to benefit from increased investment by China Telecom, as it focuses on its single CDMA network, rather than the GSM and CDMA networks China Unicom has been maintaining. We also believe China Telecom will begin launching its CDMA 1X network beginning in 2010. This new growth of CDMA in China will help to offset the declines of CDMA in North America, Korea and Japan,” continued Siegler.

About the Report

The Dell’Oro Group 5-Year Forecast Report offers a complete overview of the Mobility Infrastructure industry with tables covering manufacturers’ revenue, average selling prices, transceivers or RF carriers shipments, and unit shipments for base station controllers, base transceiver stations, and mobile switching centers for GSM/GPRS/EDGE, CDMA, WCDMA, Mobile WiMAX, and 3G LTE. To purchase this report, call Emily Kendall at +1.650.622.9400 x223 or email Emily@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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