After Nokia Siemens Networks, Alcatel-Lucent last week become the world’s second full-service telecommunications network equipment providers (NEP). The company is positing itself as industry experts, and announced it is adjusting the company’s strategic positioning and focusing on IP networks and mobile broadband access.
Market research firm Ovum principal analyst of Network Infrastructure, RonKlein has conducted some comments, he said:
“Alcatel-Lucent’s strategic shift only illustrates the fast evolution of the market which is dominated by the optical communication provider, and facing with the sieging of a growing number of Internet content providers and Western telecommunication network equipment providers. This will allow Alcatel-Lucent focuses on cloud and growing demand for bandwidth, a large Internet service provider.”
“From the perspective of the network infrastructure, this program will strengthen the R & D activities of Alcatel-Lucent in high-growth areas. However, quit the traditional technology market may be extremely difficult, and to find buyers for Submarine Network Solutions is likely subject to the regulatory obstacle.”
Ovum’s quarterly market share research shows that Alcatel – Lucent IP and wavelength division multiplexing (WDM) product’s performance is quite good, but the decreasing income of synchronous digital hierarchy / synchronous optical network (SDH / SONET) and distributed control system (DCS) have resulted in rapid reduction in the income of the company’s profit margins and continues decreasing of the market share. Alcatel – Lucent is a the manufactures ranked third in the global switching and routing market, the company’s broadband access revenues declined 2d%, slightly higher than $ 1 billion.
Global broadband access market overall downward, and the current portion of the growth is most from China. In the past year, although the Alcatel – Lucent’s converged packet optical equipment (CPO) increase 15 percent, its optical networking equipment revenue plunged 28 percent likely to be the company’s biggest challenge for the company. In view of the traditional products and installation level of related customers, it is hard for the company to withdraw from the market. Alcatel – Lucent is caught in a similar dilemma in 2006 – at that time, the company adjusts product adjustments after the merger, but the customer outcry resulted in the plan did not take place.