Mobile Internet Equipment Spending Increases 101%

iPhone and Other Smart Phone Devices Driving Growth According to Synergy


RENO, NV--(Marketwire - October 20, 2010) -  Synergy Research Group announces the launch of its quarterly Mobile Internet tracking service with the publication of its Q2 2010 Market Share report. The report highlights robust growth for IP Equipment sales that provide the infrastructure to enable mobile operators to manage the rapid rise in Internet traffic that is overloading their 2G/3G networks.

The Mobile Internet Equipment market totaled $1.6 billion in 1H 2010 an increase of 101% over the same period last year. Up to this point, the market has been driven by the rapid rise of basic Internet applications such as texting and email. Synergy believes that growing consumer demand for a variety of multimedia rich mobile applications will continue to overload mobile networks exponentially, forcing mobile operators to continue to aggressively invest in their Mobile IP networks. Synergy is forecasting the Mobile Internet market to grow in excess of $5 billion by 2011.

"The fast rise of the iPhone and other smart phones has created significant and costly disruption to the operation of traditional mobile networks," said Jeremy Duke, Principal Analyst and Founder, Synergy Research Group. "We believe this will continue to be a growing opportunity for IP networking vendors, such as Cisco and Juniper, who are benefiting greatly from this new source of infrastructure spending. Further, we believe this spending will continue to rise as video downloads, and eventually video calling/conferencing, become popular mobile applications." 

Top 5 Ranked Vendors - WW Mobile Internet Equipment Sales 2Q 2010

    Rankings   Market Share Gain/Loss
Cisco   1   + 6.6 points
Juniper   2   + 2.2 points
Alcatel-Lucent   3   + 3.5 points
Ericsson   4   - 1.9 points
Huawei   5   - 0.4 points

The fastest growing Mobile Internet equipment segment is LTE Multimedia Gateways, also referred to as Evolved Packet Core (EPC). In 2009, this nascent market only represented less than 1% of Mobile Internet Equipment spending. Already in 1H 2010, this market has grown to represent close to 3%. Networking vendors have been quick to respond as seen by Cisco's Starent acquisition as well as products coming soon from Juniper and Alcatel-Lucent.

Synergy defines Mobile Internet Equipment as the hardware and software that facilitate the use and operation of Internet applications on mobile networks. This includes the combination of Mobile Packet Edge, Multimedia Gateways, GGSN/SGSN, Evolved Packet Core (EPC), IP-Backhaul, and Mobile IP Backbone equipment.

Synergy Research Group's Quarterly Reports provide complete, in-depth coverage of the networking and telecom equipment markets with tables covering manufacturers' revenue, average selling prices, shipments, as well as regional and country-level market shares for the following markets: Mobile Internet, Enterprise Voice, Network Security, Data Center, Service Provider Routers, Carrier Ethernet, Video Conferencing, Collaboration, Managed Services, IMS, Carrier VoIP, Enterprise Routers, WLAN, Ethernet Switching, IPTV, Storage Area Networks (SAN), and Broadband Optical. To purchase Synergy reports, contact Heather Gallo at 1.775.852.3330 x101, or email hgallo@srgresearch.com

About Synergy Research Group

As a trusted source of market information for the networking and telecom industries, Synergy Research Group (www.srgresearch.com) provides detailed research to support fact-based strategic thinking for equipment vendors, investment firms, and semiconductor manufacturers.

Contact Information:

For more information:
Heather Gallo
Synergy Research Group
+1 775-852-3330 ext 101