Technology and innovation have become important determinants of corporate competitiveness, and the telecommunications sector is no exception. Technological development, embodied in innovative functions developed from the first to the fourth-generation systems, has played significantly important roles in the growth and upheavals of the mobile phone market.

According to the latest report by Dell’Oro Group, mobile infrastructure market annual revenues are forecast to reach $43 billion over the next five years. However, in 2009 mobile market had witnessed the double-digit revenue decline and a flat forecast for revenues in 2010.

The report says that market revenue growth is expected to accelerate in the beginning of the year 2011.

Scott Siegler, senior analyst of Mobile Infrastructure research at Dell’ (News - Alert)Oro Group, said that the growth of mobile data traffic is driving, and will continue to drive operators to increase the capacity of their 3G and next generation networks to meet demand and as the ecosystem of 3G devices continues to rapidly grow, such as the iPhone and Android (News - Alert)-based smartphones, operators are experiencing a surge in data traffic on their mobile networks.

Further he added that as smartphones penetrate deeper in the mobile subscriber base and each subscriber consumes more data, we forecast worldwide mobile data traffic will double each year. Furthermore, he commented that initial LTE (News - Alert) deployments are beginning in the second half of 2010 and revenue is expected to see strong growth and Dell’Oro Group believes WCDMA will be the most significant driver of the market, and will represent over three-quarters of total market revenues in 2014.

The report shows that although the LTE market is expected to start small in 2010, revenues are forecast to exceed $6 billion by 2014. The Dell’Oro Group Mobility Infrastructure Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, transceiver or RF carrier shipments, and unit shipments for base station controllers, base transceiver stations, and mobile switching centers for GSM/GPRS/EDGE, CDMA, WCDMA and WiMAX (News - Alert).