Strategy Analytics: Cellular Backhaul Drives Point-to-Point Radio Market

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Thu Jul 31, 2008 4:33pm EDT 

Shipments Will Exceed 1.5 million Units in 2012
BOSTON--(Business Wire)--
The latest study from Strategy Analytics, "Point-to-Point Radio
GaAs Market 2007-2012," predicts that point-to-point radio shipments
will increase at a compound annual average growth rate (CAAGR) of 8
percent, to exceed 1.5 million units in 2012. Radio Cellular backhaul
will continue to be the primary market for point-to-point radios, with
other applications, such as trunking, enterprise and public safety,
making up the balance.

   Cellular backhaul shipments will be driven by wireless network
expansions as a function of cellular subscriber growth and replacement
of existing links to accommodate the higher bandwidth requirements of
next-generation networks. On a regional basis, Asia-PAC, Middle East,
Africa and other emerging markets will drive the bulk of demand.

   "GaAs component demand is skewed towards MMIC solutions, with some
limited demand for discretes as well," observes Asif Anwar. "Despite
the increase in unit demand, ASP pressures will mean the market for
GaAs devices will be effectively flat over 2008 and 2009."

   Mr. Anwar concluded, "While Strategy Analytics believes that ASPs
will hold up better than previously forecast, GaAs device
manufacturers targeting this market, such as TriQuint and Avago
Technologies in North America, Toshiba and Mitsubishi Electric in
Japan and UMS in Europe, will need to optimize their supply
relationships to maintain margins in this competitive market."

   About Strategy Analytics

   Strategy Analytics, Inc focuses on market opportunities and
disruptive forces in the areas of Automotive Electronics and
Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent
Systems Implementation Strategies and High Frequency Market
intelligence. Headquartered in Boston, MA, with offices in the UK,
France, Germany, Japan, S. Korea and China, Strategy Analytics works
with clients through annual multi-client services, management team
workshops and custom consulting engagements. For more information,
please visit www.strategyanalytics.com.

Strategy Analytics
European Contact:
Asif Anwar, +44(0) 1908 423 635
aanwar@strategyanalytics.com
or
US Contact:
Chris Taylor, +1-617-614-0706
ctaylor@strategyanalytics.com

Copyright Business Wire 2008
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