Samsung Will Lead US handset market After Sprint PCS and Nextel Merger
Motorola Main Loser in iDEN-CDMA Migration according to Strategy Analytics
Boston, US -/15 Dec, 2004 - Wi-Fi Technology News/- The marriage of Sprint PCS and Nextel will hand the number one spot in the US handset market to Samsung, according to new analysis from Strategy Analytics. The major impact on the US wireless market will include:
? The creation of a stronger no. 3 carrier in the US, Sprint/Nextel, with 35 million subscribers and average revenues 25 percent above either Cingular or Verizon Wireless. Verizon Wireless will still generate more EBITDA than any other carrier and, as such, is unlikely to counter with a Sprint PCS bid at any price;
? Improved medium-term prospects for CDMA vendors in the US: Sanyo and Samsung are the big winners, given their strong relationships with Sprint PCS, extra volume for Samsung will be enough to push it into a market share leadership position;
? A bleak outlook for Motorola and Flarion: the loss of Motorola's biggest iDEN account in the medium term and a downgrading of prospects for Flarion's Flash-OFDM technology at Nextel represent a major blow to both parties;
? Problems for T-Mobile USA, now in a very distant fourth place in the market. The two-year wait on its W-CDMA deployment looks like an increasingly risky decision as three 3G mega-carriers chase high-speed multimedia business. No obvious merger partners exist to change this for them.
About Strategy Analytics
Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see http://www.strategyanalytics.com
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