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News | 12/20/2002 5:00 am EST

Restructuring in mobile industry likely: new report
There is a major restructuring in the mobile phone industry brewing, according to new research released by Reed Electronics Research in conjunction with In-Stat/MDR. General weakness in the market combined with increased competition, pressures on markets, high costs of development and the uncertain outlook for the industry will create a very different market in the next two years. Reed indicates those companies that benefited from the boom in 2000 will be different from those competing for market share in 2003/2004. The mobile phone industry is currently dominated by Nokia, Motorola, Samsung, Sony Ericsson and Siemens, which jointly control 75% of the market. The report also notes that over the next five years, worldwide user growth will increase from 934 million in 2001 to nearly 1.9 billion at the end of 2006. The research firm also highlights the fact that GSM will continue to dominant the air link technology market. It also concludes that while 3G will have its greatest growth in Japan, it won’t make any serious inroads in Europe until the second half of the decade.

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