The beleaguering wireless telecommunication gear market has contracted 12 percent during April-June from a year before after slumping GSM market eclipsed the 3G equipment sales, said researcher Dell''Oro.

For some time, the telecom gear market, valued $49 billion in 2007, has been clambering with the cut back on spending in the midst of recession and the incursion of the low-price Chinese vendors Huawei and ZTE, causing fierce competition in the market.

In the second half of the 2009, both GSM spending and the 3G market is expected to progress.

However, the total mobile equipment market is expected to fall by 10 percent.