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GSM/GPRS/EDGE prices drop, sales rise

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Despite a relatively strong revenue up-tick in North America and Asia for GSM/ GPRS/EDGE radio network equipment, global average selling price (ASP) per voice channel declined 5 percent Q/Q due to intense competition and a weaker European market. (GPRS and EDGE are the 2.5G and 3G versions, respectively, of GSM.) The ASP per CDMA voice channel stayed stable at $2,300, but we expect the price differential between CDMA and GSM/GPRS/EDGE to diminish over time.

Prices for legacy technologies such as TDMA are typically high, but a dynamic "gray market" has developed-equipment is sold through unintended channels.

This gray market should continue to pull down new equipment prices

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