DSPs/MPUs for base stations to be the 'Paul Revere' of wireless revolution

5 June 2002 News

The evolution of wireless connectivity to support increased system capacities, improved voice quality, multimedia services, and high-speed data transfers, will drive annual revenue for digital signal processor (DSP) and microprocessor unit (MPU) high-end processors for base transceiver stations (BTSs) toward the billion dollar mark. In direct response to the needs of an increasingly wireless population, high-tech research firm In-Stat/MDR estimates that, with average selling prices ranging between $100 and $150, the combined market for DSP and MPU devices in BTS infrastructure will exceed $1 billion in 2005.

"Cellular communications continue to challenge DSP and MPU designers and are a promising source of revenue from the viewpoint of the processor business," says principal analyst Max Baron. "Although a large number of BTSs have been built and installed, new BTSs and continuing improvements in data communications are requiring ever-increasing DSP and MPU performance levels, faster memory, greater flexibility, and higher integration."

In order to capitalise on this opportunity, he adds, processor vendors must deliver economical system solutions via DSP and MPU chips that provide improved performance and reduced power dissipation. The rewards are very attractive, as processors will continue to fetch attractive prices.

www.instat.com

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