Different tones at mobile telecoms showcase

Mobile phone handset makers and network equipment manufacturers are gathering in Barcelona this week with contrasting stories to tell about revenues for the year ahead.

At the Mobile World Congress, the industry's main trade fair, the handset makers say they are looking forward to revenue growth in 2010, on the back of rising handset unit sales. Last year, the total number of handsets sold fell compared with 2008, as consumers bought fewer phones amid the recession. The network equipment makers, however, are braced for a second successive year of sales declines and say 2010 is likely to be worse than 2009. This is because many operators did not start to cut their capital spending until the second half of last year - leaving some to make further reductions this year. But while the handset makers are hoping improved consumer confidence will translate into improving sales, many are still grappling with major technology changes that are shaking up the established order.