UK: Ovum today announced its preliminary 2Q09 results for global optical equipment networking vendors. The global optical networking (ON) market, led by strength in Asia-Pacific markets, was $3.9 billion, up 11 percent sequentially, but down 9 percent compared with 2Q08.
“This marks the third consecutive quarter that the ON market has shrunk compared with the year-ago quarter, but given the global economic conditions we were not surprised,” remarked Ron Kline, Ovum’s Research Director, Optical Networking.
“Spending in Asia-Pacific remained surprisingly strong, driven by 3G network builds in China. The level of spending we’re seeing in China has disproportionally benefitted Huawei and ZTE, adding over a share point each to their market positions, and has brought Huawei to the verge of market leadership, an event we think very likely for 3Q09.”
Top 10 ON vendor share
Of the top 10 vendors, only Huawei and ZTE posted both sequential and year-over-year revenue gains, reflecting the surge in spending in their home market.
Alcatel-Lucent and Ericsson posted sequential revenue gains but were still off 22 percent and 18 percent from the year-ago period, while Ciena, Fujitsu, NEC, Nokia Siemens, Nortel, and Tellabs all declined sequentially and year over year. Huawei and ZTE grew revenues by 21 percent and 62 percent, respectively, over 2Q08 due to 3G mobile-related aggregation spending in China.
“Alcatel-Lucent held on to the market lead with 20.7 percent annualized share, but Huawei picked up 1.4 percentage points to come within just 0.2 points of the market leader at 20.5 percent share,” said Kline.
“Given the continued strength of spending in China where Huawei is strong, favorable exchange rates, light exposure to North America, and access to capital, it’s only a matter of time before we have a new market leader.”
Showing posts with label optical networking. Show all posts
Showing posts with label optical networking. Show all posts
Tuesday, August 11, 2009
Friday, June 5, 2009
FTTH networks: no sure bet
Here is an Ovum comment from David Kennedy, Research Director.
UK: A basic policy model seems to be emerging in these three countries:
* A preference for FTTH technology, with a recognition that this cannot be extended to 100 percent of the population. FTTH is supplemented in larger countries with rural wireless proposals.
* A ‘wholesale-only’ operator for the fibre access network. All three countries are aware of the danger of recreating a vertically integrated monopoly.
* In both New Zealand and Singapore, the importance of access to raw ‘dark fibre’ is also clear. This is consistent with experience in other Asian markets such as Japan.
in all three markets, substantial government investment is being committed.
Lessons learned
The key lesson that has emerged from these initiatives is the importance of a thorough policy development process to underpin commercial investment in FTTH networks. Singapore ran a time-consuming but structured process which ensured that commercial and regulatory issues were addressed before tender bids were solicited. New Zealand is also pursuing this structured approach.
In contrast, the Australian government pressed ahead with an FTTN tender process in advance of any public policy development process, and paid a heavy price as the process was aborted in April 2009.
The jump to a full FTTH network will only make the issues harder. A host of complex regulatory issues must be addressed. Should the geographically de-averaged wholesale ULL price be carried over into wholesale access to the FTTH network?
How can the USO be funded on the new network? Will customers in the FTTH footprint be encouraged to move to the new network, and if so how? How will the transition between the old and the new be managed smoothly? Detailed answers will be needed before private investors will be able to make substantial investments.
In particular, the ‘wholesale-only’ model preferred by the Australian and New Zealand governments is still an experimental approach. Incumbent profit and growth have been hit hard by the strict structural separation applied in the UK and New Zealand, and it is still not clear whether incumbents placed in these dire straits will be able to afford to make major investments in FTTH networks.
Finally, the idiosyncrasies of different markets are important. Singapore is a city-state where the cost of FTTH rollout is relatively low. In contrast, Australia and New Zealand are characterised by sprawling low-density suburbs. To make matters worse, both governments envisage public contribution in the form of commercial investments, not the grants being offered in Singapore.
UK: A basic policy model seems to be emerging in these three countries:
* A preference for FTTH technology, with a recognition that this cannot be extended to 100 percent of the population. FTTH is supplemented in larger countries with rural wireless proposals.
* A ‘wholesale-only’ operator for the fibre access network. All three countries are aware of the danger of recreating a vertically integrated monopoly.
* In both New Zealand and Singapore, the importance of access to raw ‘dark fibre’ is also clear. This is consistent with experience in other Asian markets such as Japan.
in all three markets, substantial government investment is being committed.
Lessons learned
The key lesson that has emerged from these initiatives is the importance of a thorough policy development process to underpin commercial investment in FTTH networks. Singapore ran a time-consuming but structured process which ensured that commercial and regulatory issues were addressed before tender bids were solicited. New Zealand is also pursuing this structured approach.
In contrast, the Australian government pressed ahead with an FTTN tender process in advance of any public policy development process, and paid a heavy price as the process was aborted in April 2009.
The jump to a full FTTH network will only make the issues harder. A host of complex regulatory issues must be addressed. Should the geographically de-averaged wholesale ULL price be carried over into wholesale access to the FTTH network?
How can the USO be funded on the new network? Will customers in the FTTH footprint be encouraged to move to the new network, and if so how? How will the transition between the old and the new be managed smoothly? Detailed answers will be needed before private investors will be able to make substantial investments.
In particular, the ‘wholesale-only’ model preferred by the Australian and New Zealand governments is still an experimental approach. Incumbent profit and growth have been hit hard by the strict structural separation applied in the UK and New Zealand, and it is still not clear whether incumbents placed in these dire straits will be able to afford to make major investments in FTTH networks.
Finally, the idiosyncrasies of different markets are important. Singapore is a city-state where the cost of FTTH rollout is relatively low. In contrast, Australia and New Zealand are characterised by sprawling low-density suburbs. To make matters worse, both governments envisage public contribution in the form of commercial investments, not the grants being offered in Singapore.
Sunday, May 17, 2009
Huawei beats Alcatel-Lucent in 1Q09 to top optical networking market
UK: Ovum announced its preliminary 1Q09 results for global optical equipment networking vendors. The global optical networking (ON) market, led by strength in Asia-Pacific markets, was $3.6 billion, down 15 percent sequentially and down 8 percent compared with 1Q08.
"This marks the second time in two quarters that the ON market has shrunk compared with the year-ago quarter, but given the global financial meltdown the situation could have been much worse." remarks Ovum’s Vice President, Optical Networking, Dana Cooperson.
"Spending in Asia-Pacific was surprisingly strong. We did not see the seasonal decline we normally expect in China, for example, as the race to build 3G mobile networks and support them with transport capacity obliterated any seasonality or macroeconomic downturn factors. Huawei, posting a remarkable $790 million in revenue to lead the market for the quarter, benefited from China’s 3G race, along with teledensity growth in India, a strong and stable currency, and comparatively little exposure to the cool North American market, while Alcatel-Lucent suffered from much of the opposite," Cooperson added.
Top 10 optical networking vendor share
Of the top 10 vendors, none posted both sequential and year-over-year revenue gains, reflecting slowing spending in much of the world. Vendors who beat both the sequential and year-over-year average market declines of 15 percent and 8 percent, respectively, include Ericsson, Huawei, and NEC.
Those three vendors, plus ZTE, were the only top ten vendors that did not post revenue declines compared with 1Q08. Huawei and ZTE grew revenues by more than 40 percent and 20 percent, respectively, over 1Q08 in part due to 3G mobile-related spending in China.
"Alcatel-Lucent held on to the market lead with 21.7 percent annualized share, but Huawei picked up 1.8 percentage points to come within 3 points of the market leader at 19.1 percent share. Given the continued strength of spending in markets where Huawei is strong, its light exposure to weaker markets, and the firm’s seemingly bottomless availability of financing, this looks like a huge year for the Chinese giant.” said Cooperson.
"This marks the second time in two quarters that the ON market has shrunk compared with the year-ago quarter, but given the global financial meltdown the situation could have been much worse." remarks Ovum’s Vice President, Optical Networking, Dana Cooperson.
"Spending in Asia-Pacific was surprisingly strong. We did not see the seasonal decline we normally expect in China, for example, as the race to build 3G mobile networks and support them with transport capacity obliterated any seasonality or macroeconomic downturn factors. Huawei, posting a remarkable $790 million in revenue to lead the market for the quarter, benefited from China’s 3G race, along with teledensity growth in India, a strong and stable currency, and comparatively little exposure to the cool North American market, while Alcatel-Lucent suffered from much of the opposite," Cooperson added.
Top 10 optical networking vendor share
Of the top 10 vendors, none posted both sequential and year-over-year revenue gains, reflecting slowing spending in much of the world. Vendors who beat both the sequential and year-over-year average market declines of 15 percent and 8 percent, respectively, include Ericsson, Huawei, and NEC.
Those three vendors, plus ZTE, were the only top ten vendors that did not post revenue declines compared with 1Q08. Huawei and ZTE grew revenues by more than 40 percent and 20 percent, respectively, over 1Q08 in part due to 3G mobile-related spending in China.
"Alcatel-Lucent held on to the market lead with 21.7 percent annualized share, but Huawei picked up 1.8 percentage points to come within 3 points of the market leader at 19.1 percent share. Given the continued strength of spending in markets where Huawei is strong, its light exposure to weaker markets, and the firm’s seemingly bottomless availability of financing, this looks like a huge year for the Chinese giant.” said Cooperson.
Saturday, April 25, 2009
Fujitsu no. 1 in key North American optical markets: Ovum
RICHARDSON, USA: Fujitsu Network Communications announced that according to data from Ovum, Fujitsu has strengthened its top position in Aggregation (MSPPs/OEDs) and achieved market leadership for Metro WDM and ROADM in North America for 2008. Together, these sectors comprise nearly 60 percent of the $4.7B optical networking market.
“By continuing to make substantial inroads at major carriers and becoming the #1 metro WDM and ROADM vendor in North America, Fujitsu is clearly the leader in 2008,” said Ron Kline, Research Director of Optical Networks: North America at Ovum. "The company posted its fifth consecutive year of growth and outperformed the market, with 2008 revenues rising 14 percent as compared to a market decline of 4 percent. Fujitsu increased its North American overall optical networking share by nearly 2.5 points, capitalizing on metro network growth and its strong incumbent positions with Tier 1 carriers, which drove metro ROADM and MSPP/OED sales."
Ovum segregates the North American optical networking market into four main segments -— Aggregation, Bandwidth management (DCS/OCS), Metro WDM, and Backbone DWDM.
Aggregation, which includes legacy ADMs, MSPPs/ OEDs, and converged non-ROADM Packet Optical systems, is the largest segment and accounts for nearly 30 percent ($1,395M) of the overall $4.7B optical networking market in North America. Fujitsu has been the leading Aggregation equipment supplier every year since Ovum began measuring this market in 2002. In 2008 the company increased its share in this segment by nearly 3 points to 31.5 percent, which is more than 10 percentage points higher than its closest competitor.
The Metro WDM segment, includes ROADM and non-ROADM DWDM equipment deployed in metropolitan and regional applications. North American spending on Metro WDM equipment in 2008 increased 11 percent year-over-year, reaching $1,358M. Ovum believes that metro WDM will become the largest North American optical networking segment in 2009. Fujitsu's metro WDM revenue grew 77 percent on strong sales of its FLASHWAVE 7500 platform, which far outpaced 2008 market growth of 11 percent. Consequently, its metro WDM market share rose nearly 8 points to 21.4 percent and placed Fujitsu in the #1 market position.
At $793M, the ROADM market is now 58 percent of the total metro WDM spending and 17 percent of the total optical networking spending, up from 14 percent in 2007. Fujitsu has 32.9 percent of the ROADM market and became the market leader with a share change of 11 points versus its nearest competitor, which gained 1 point.
“Despite the challenging economic environment, Tier 1 and Tier 2 carriers, as well as Cable/MSOs, CLECs and Enterprise customers continue to rely on Fujitsu to meet their optical networking solutions needs,” said Doug Moore, Senior Vice President of Marketing for Fujitsu Network Communications. “Fujitsu offers the right combination of market-leading MSPP and ROADM products, along with experienced employees and financial strength that position Fujitsu to continue to grow our share of the optical networking market.”
Fujitsu controls 15.5 percent of the overall optical networking market in North America. The company participates in the two largest segments, Aggregation and Metro WDM, and has the #1 market position with a 26 percent share in this combined $2,753M sector.
“By continuing to make substantial inroads at major carriers and becoming the #1 metro WDM and ROADM vendor in North America, Fujitsu is clearly the leader in 2008,” said Ron Kline, Research Director of Optical Networks: North America at Ovum. "The company posted its fifth consecutive year of growth and outperformed the market, with 2008 revenues rising 14 percent as compared to a market decline of 4 percent. Fujitsu increased its North American overall optical networking share by nearly 2.5 points, capitalizing on metro network growth and its strong incumbent positions with Tier 1 carriers, which drove metro ROADM and MSPP/OED sales."
Ovum segregates the North American optical networking market into four main segments -— Aggregation, Bandwidth management (DCS/OCS), Metro WDM, and Backbone DWDM.
Aggregation, which includes legacy ADMs, MSPPs/ OEDs, and converged non-ROADM Packet Optical systems, is the largest segment and accounts for nearly 30 percent ($1,395M) of the overall $4.7B optical networking market in North America. Fujitsu has been the leading Aggregation equipment supplier every year since Ovum began measuring this market in 2002. In 2008 the company increased its share in this segment by nearly 3 points to 31.5 percent, which is more than 10 percentage points higher than its closest competitor.
The Metro WDM segment, includes ROADM and non-ROADM DWDM equipment deployed in metropolitan and regional applications. North American spending on Metro WDM equipment in 2008 increased 11 percent year-over-year, reaching $1,358M. Ovum believes that metro WDM will become the largest North American optical networking segment in 2009. Fujitsu's metro WDM revenue grew 77 percent on strong sales of its FLASHWAVE 7500 platform, which far outpaced 2008 market growth of 11 percent. Consequently, its metro WDM market share rose nearly 8 points to 21.4 percent and placed Fujitsu in the #1 market position.
At $793M, the ROADM market is now 58 percent of the total metro WDM spending and 17 percent of the total optical networking spending, up from 14 percent in 2007. Fujitsu has 32.9 percent of the ROADM market and became the market leader with a share change of 11 points versus its nearest competitor, which gained 1 point.
“Despite the challenging economic environment, Tier 1 and Tier 2 carriers, as well as Cable/MSOs, CLECs and Enterprise customers continue to rely on Fujitsu to meet their optical networking solutions needs,” said Doug Moore, Senior Vice President of Marketing for Fujitsu Network Communications. “Fujitsu offers the right combination of market-leading MSPP and ROADM products, along with experienced employees and financial strength that position Fujitsu to continue to grow our share of the optical networking market.”
Fujitsu controls 15.5 percent of the overall optical networking market in North America. The company participates in the two largest segments, Aggregation and Metro WDM, and has the #1 market position with a 26 percent share in this combined $2,753M sector.
Welcome to PC's Telecom Blog!
Welcome to PC's Telecom Blog!
Hi friends, I've been thinking about adding a telecom blog to my network for a very long time! The reason being, I started my career in electronics and telecom back in 1989.
I had the privilege of being part of Asian Sources Telecom Products -- a site, which I managed and built, with the help of my team and colleagues at Asian Sources Media, and later, Global Sources. Later, I moved on to Wireless Week, USA, as Asia Pacific Editor for the Asian Edition.
Back in India, I managed Convergence Plus for a short while, before launching four sites for CIOL in 2004 -- Mobility, Networking, Storage and Security.
Given this background in telecommunications, it is apt for me to start a blog on this subject as well. Telecom has been my forte, and well, it is a subject that has also won me four awards in technology journalism, while at Global Sources.
Again, this blog has been spun out off my award winning blog! That blog remains unchanged, and will continue to carry top-quality, world class content!
This blogs will now include specific blog posts related to telecommunications, as well as press releases, industry updates, new products, features, statistics, etc. It will cover wireless, wireline, broadband, networking, optical networking, Test & Measurement, etc.
Thanks for your kind support as always. Suggestions for improvements are always welcome! :)
Hi friends, I've been thinking about adding a telecom blog to my network for a very long time! The reason being, I started my career in electronics and telecom back in 1989.
I had the privilege of being part of Asian Sources Telecom Products -- a site, which I managed and built, with the help of my team and colleagues at Asian Sources Media, and later, Global Sources. Later, I moved on to Wireless Week, USA, as Asia Pacific Editor for the Asian Edition.
Back in India, I managed Convergence Plus for a short while, before launching four sites for CIOL in 2004 -- Mobility, Networking, Storage and Security.
Given this background in telecommunications, it is apt for me to start a blog on this subject as well. Telecom has been my forte, and well, it is a subject that has also won me four awards in technology journalism, while at Global Sources.
Again, this blog has been spun out off my award winning blog! That blog remains unchanged, and will continue to carry top-quality, world class content!
This blogs will now include specific blog posts related to telecommunications, as well as press releases, industry updates, new products, features, statistics, etc. It will cover wireless, wireline, broadband, networking, optical networking, Test & Measurement, etc.
Thanks for your kind support as always. Suggestions for improvements are always welcome! :)
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