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Intense competition for LTE Packet core anticipates Heavy Reading

Source: Heavy Reading

Long Term Evolution (LTE) core network activity is heating up as many vendors look to seize a share of the next-generation packet core market, according to a new Heavy Reading report.

The pursuit of the Evolved Packet Core (EPC) is picking up pace now because of the strategic significance of these packet core products for many vendors, and not necessarily because of the potential market size. The packet core will be among the fastest growing segments in wireless infrastructure, growing at a rate of 10 percent per year for the next five years, and will be worth $2 billion in 2012, according to the report, "Evolved Packet Core for LTE: Market Forecast & Competitive Analysis."

Ericsson AB (Nasdaq: ERIC) and Nokia Siemens Networks are the undisputed market leaders in the packet core market. In 2008, the 3GPP packet core market was worth $1.2 billion, and these two vendors had nearly 70 percent of the market, according to Heavy Reading.

Hot on the leaders' heels are Huawei Technologies Co. Ltd. and Starent Networks Corp. (Nasdaq: STAR) with the next-biggest market shares. These vendors have gained share recently by "mopping up the footprint from defunct vendors such as Nortel Networks Ltd. or through dissolution of partnerships (e.g., Cisco and Siemens)," writes the report's author, senior analyst Gabriel Brown.


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