Menu
Alcatel-Lucent’s specialist move symbolic of changed market dynamics: Ovum

Alcatel-Lucent’s specialist move symbolic of changed market dynamics: Ovum

Ron Kline claims the move will allow it to focus on Cloud and large-scale Internet providers

Alcatel-Lucent’s strategic shift from telecom network equipment provider (NEP) to IP networking and ultra-broadband access specialist is indicative of the high speed at which market dynamics have changed, according to Ovum.

The company’s network infrastructure principal analyst, Ron Kline, said it is the second company, following Nokia Siemes Networks, to reposition itself as a specialist.

This demonstrates the switch in a “market once dominated by large Tier-1 telecommunications providers that are its customers, but increasingly under siege by Internet content providers, NEPs based in the West that have been out-competed by Chinese vendors, most notably Huawei, and specialists,” he said.

Kline believes the decision will allow Alcatel-Lucent to focus on Cloud and large-scale Internet providers which are generating a growing portion of bandwidth demand.

It will also consolidate the company’s research and development (R&D) on high growth areas.

At the same time, Kline said leaving behind legacy technologies markets will be difficult, as will finding a buyer for its Submarine Network Solutions, with the probability of regulatory hurdles.

Number crunching

Based on Ovum’s quarterly market share research, Alcatel-Lucent’s IP and WDM products performed well, but rapidly declining revenues in SDH/SONET and DCS led to lower margins and market share.

Alcatel-Lucent saw $US2.1 billion in revenues over the last four quarters for an increase of 2.3 per cent year-over-year (YoY). Its broadband access revenues dropped two per cent to just over $US1bn during the same time frame.

Ovum also claims Alcatel-Lucent’s optical network equipment revenues fell 28 per cent over the last year, while its converged packet optical (CPO) equipment grew 15 per cent.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags Nokia Siemensalcatel-lucentovumvendoranalystIP NetworkingTelecommunications

Upcoming

Slideshows

IN PICTURES: Windows 10 Sydney launch

IN PICTURES: Windows 10 Sydney launch

Tech lovers and party-goers alike headed down to Mrs Macquarie's Chair to be part of the world-first Windows 10 Launch Party. The night featured a presentation by Microsoft Australia managing director, Pip Marlow, DJs, live demonstrations and digital artistry by Lister.

IN PICTURES: Windows 10 Sydney launch
In Pictures: User guide to Windows 10

In Pictures: User guide to Windows 10

If you’re going for an immediate upgrade to Windows 10 from your Windows 7 or Windows 8/8.1 computer, this guide will get you up to speed as quickly as possible.

In Pictures: User guide to Windows 10

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments