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substantial decline in Canada and a decline in the U.S. as customers continued to experience capital spending restrictions as a result of their
continued focus on capital and cash flow management. In Asia Pacific, CDMA revenues increased substantially in the first half of 2003
compared to the same period in 2002 primarily due to new contracts with certain service provider customers and other customers expanding
their existing networks to meet increased subscriber demand.
GSM revenues increased significantly in 2003 compared to 2002 due to a substantial increase in revenues in the second half of 2003 compared
to the same period in 2002. This substantial increase was partially offset by a significant decrease in the first half of 2003 compared to the same
period in 2002.
The substantial increase in GSM revenues in the second half of 2003 compared to the same period in 2002 was primarily due to a substantial
increase in the U.S. and EMEA. The substantial increase in the U.S was primarily due to accelerated network expansions with certain service
providers to meet increased subscriber demand. The substantial increase in EMEA was mainly due to new contracts with certain service
provider customers and other customers expanding their existing networks.
The significant decrease in GSM revenues in the first half of 2003 compared to the same period in 2002 was primarily due to substantial
declines in Canada and Asia Pacific and a significant decline in the U.S. The substantial decline in Asia Pacific was mainly due to a decline in
the overall growth rate of GSM technology deployments by wireless service providers in the second half of 2002 and the first half of 2003. As
of the beginning of the first quarter of 2003, many of our GSM customers in Asia Pacific had completed their current network deployments
and, as a result, they had sufficient capacity to meet additional subscriber demand. The substantial decline in Canada and the significant decline
in the U.S. were mainly due to the completion of network deployments by certain service providers. In EMEA and CALA, GSM revenues
increased substantially in the first half of 2003 primarily due to new contracts with certain service providers.
Universal Mobile Telecommunications Systems, or UMTS, revenues increased substantially in 2003 compared to 2002. This substantial
increase was primarily due to new contracts with certain service providers and the continued transition to this next generation technology.
Time Division Multiple Access, or TDMA, revenues declined substantially in 2003 compared to 2002 primarily due to the continued transition
to newer wireless technologies. The substantial decline was primarily due to customers in the U.S. and CALA continuing to migrate from the
mature TDMA technology to GSM and CDMA technologies. In 2003, TDMA revenues accounted for less than 6% of total Wireless Networks
revenues, down from 11% in 2002.
From a geographic perspective, the 5% increase in Wireless Networks revenues in 2003 compared to 2002 was primarily due to a:
The 27% decline in Wireless Networks revenues in 2002 compared to 2001 was primarily due to a continued deterioration in wireless service
providers’ financial condition, slower subscriber growth and increased competition for customers by service providers which resulted in the
decision of many wireless service providers to delay capital expenditures.
CDMA revenues declined in 2002 compared to 2001 primarily due to continued capital spending constraints and financial difficulties
experienced by our customers globally. In 2002, we continued to experience significant pricing pressures on our CDMA technologies in the
U.S. and CALA resulting from the increased competition for customers.
TDMA revenues declined substantially in 2002 compared to 2001 primarily due to a substantial decline in the U.S. and CALA as customers
migrated from TDMA to CDMA and GSM technologies as a result of TDMA technology and networks being in their maturity stage.
Continued capital spending constraints and financial difficulties experienced by our customers
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• 6% increase in the U.S. primarily due to certain of our major GSM and CDMA customers upgrading and expanding their existing
networks to meet increased subscriber demand in the second half of the year;
• 15% increase in EMEA primarily due to new GSM contracts with certain service providers and other customers expanding their
existing networks to meet increased subscriber demand; and
• 15% increase in CALA primarily due to new GSM contracts with certain service providers and other customers expanding their
existing networks to meet increased subscriber demand; partially offset by
• 16% decline in Canada primarily due to the completion of key customer network deployments, customers’ focus on capital and
cash flow management and a slower subscriber growth.
2002 vs. 2001