The Mobile Internet Report Key Themes*

Opportunities for Network Equipment Vendors –
Not on Equipment Side but in Services
1) Network upgrades required – Increased mobile data traffic and theoretical ROI for carriers mean LTE is the
logical way forward BUT…
2) Carriers get more for less – Continuous equipment price erosion, even for better and faster technologies,
could result in driving the equipment industry ex-growth.
3) All about services now – As a result, equipment vendors will increasingly turn to services to find new pockets
of growth.
Worldwide Worldwide Wireless Equipment Wireless Equipment Average Selling Average Price Selling per Voice Prices, Channel, 2001 – 2011E 2001 – 2011E
$2,500
$2,000
$1,500
ASP
$1,000
$500
$0
2001 2003 2005 2007 2009e 2011e
WCDMA GSM/GPRS/EDGE CDMA
Source: Dell’oro, Patrick Standaert, Morgan Stanley Research estimates.
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