WIRELESS TECH. & INFRASTRUCTURE

Wireless Infrastructure Providers Buck Handset Carnage as Orders Remain Steady

SCOTTSDALE, Ariz., July 16, 2001 - Unlike the handset market, which appears to be relatively flat revenue and shipment-wise this year versus last, wireless infrastructure growth will accelerate as subscriber growth in emerging nations and worldwide 3G deployment continues, according to Cahners In-Stat Group (http://www.instat.com). The high-tech market research firm projects that the worldwide number of deployed base stations will more than double in the five-year period between 2001 and 2005. During that period, an average of slightly more than 286,000 new base stations will be placed into service every year, yielding annualized revenue of $56 billion. The first quarter of 2001 experienced the second highest dollar value of wireless contract awards since mid 1995.

"Despite this deployment growth, profits will not be able to keep pace," says Ray Jodoin, Principal Analyst with In-Stat's Wireless Technology and Infrastructure Group. "While it is not readily evident, GSM infrastructure has had dramatic cost reductions in the past 18 months. In spite of the reductions of up to 60% in the cost of a typical GSM base station, 2001 appears to remain at a record revenue pace for new contract awards."

In-Stat also found that:

• An unclear policy for future spectrum allocations further compounds the lack of a unified air link in North America.
• In Europe, revenues and deployment will experience negative growth over the next 5 years as GSM is already built out and 3G deployment will take place in the form of shared infrastructure.
• Over the next five years, China will represent the largest market and largest growth opportunity for base station deployment.

The report, "Base Stations Go Bonkers. '01-'05 Infrastructure Forecast" (#GW0108IN) is segmented into three sub-sections: total base stations deployed, new base stations per year and base station revenue. It is the first In-Stat report that forecasts 3G infrastructure. To purchase this report, or for more information, please contact Matt Woods at 617.630.2139; mwoods@instat.com. The report price is $ 3,495 USD.

Cahners In-Stat Group (http://www.instat.com) covers the full spectrum of digital communications research from vendor to end-user, providing the analysis and perspective that allows technology vendors and service providers worldwide to make more informed business decisions.

In-Stat is a unit of Cahners Business Information (http://www.cahners.com), a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.

For more information, contact:

Ray Jodoin, Principal Analyst - Wireless Technology and Infrastructure
Phone: 480.483.4461
Email: rjodoin@instat.com

Kirsten Skedd, Marketing Manager
Phone: 480.609.4534
Email: kskedd@instat.com