Wednesday, September 1, 2010

Weakness in microwave transmission market continued in Q2

REDWOOD CITY, USA: According to a newly published report by Dell'Oro Group, the trusted source for market information about the networking and telecommunications industries, the point-to-point microwave equipment market experienced a second consecutive quarter of decline in what is typically a seasonally strong quarter, as it dipped to a little over $1 billion during the second quarter of 2010.

"We noticed the microwave market slowing down during the first quarter of the year, but believed that it could improve in the second quarter with the help of seasonal spending which is common in the telecom equipment market," said Jimmy Yu, Sr. director of Microwave Transmission research at Dell'Oro Group.

"Instead, we found the second quarter was overcome by factors that weakened it: a volatile euro-to-US dollar exchange rate, decelerating purchases by a WiMAX operator, and deployment delays due to a new government security requirement in India," Yu added.

The report indicates that Ericsson continued to hold the largest market share in the quarter, trailed closely by Huawei. Huawei gained 5 percentage points of market share year-over-year, garnering the second highest microwave revenue in the second quarter. Alcatel-Lucent rounded out the top three vendors with steady growth in its packet microwave product.

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