Equipment vendors in a dogfight for buyer mindshare - report

July 13, 2004

Makers of infrastructure equipment for 3G wireless networks are in a pitched battle to win recognition as market leaders from prospective customers, according to a major new report from Heavy Reading, the market research division of Light Reading.

Heavy Reading's 2004 Next-Generation Wireless Infrastructure Market Perception Study presents the full results of an exclusive, invitation-only survey of wireless network operators worldwide. The survey measures wireless operator perceptions of equipment vendors in five critical categories -- name recognition, price leadership, product performance, product quality and reliability, and service and support.

The study covers ten key next-gen wireless market segments, including base stations, controllers, microcells and picocells, and other equipment deployed in 3G wireless networks. It covers 34 different 3G vendors, including Cisco Systems, Ericsson, Motorola, and Nortel Networks.

"An oligarchy of incumbent vendors dominates mindshare in the 3G wireless infrastructure market, but no single supplier in the group has a clear advantage," notes Heavy Reading analyst Tim Kridel, who authored the 61-page report. Kridel notes that seven vendors had average name recognition scores of 70 percent or higher from the 169 respondents participating in the survey.

Other key report findings include:

Vendors that offer a full suite of products are in better position to capture wireless service provider customers. Respondents identified interoperability as a major problem in the 3G market, indicating that despite the wireless industry's move toward open standards, interoperability concerns present an opportunity for companies that offer a full product suite.

Among the startups in the 3G wireless infrastructure sector, IPWireless has done the best job of establishing itself in the eyes of the market. Airvana, AirWalk Communications, and InterWave Communications also achieved respectable name recognition scores from respondents.

Buyers of next-gen wireless infrastructure have a cautiously optimistic outlook for 3G. When asked to describe their overall perception of the 3G wireless market, nearly 25 percent of the respondents who answered this survey question called wireless a "growing" market.