tbr telecom & mobility vendor quarterly review and outlook webinar deck

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TECHNOLOGY BUSINESS RESEARCH, INC.

TBR’s Telecom Vendor BenchmarkResearch Highlights and Outlook

Technology Business Research (TBR) Quarterly Webinar Series

January 23, 2012

TBR

2 TBR Quarterly Webinar Series | 1.23.12 | www.tbri.com | ©2013 Technology Business Research Inc.

Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook: Webinar Presenters

Chris AntlitzNetworking & Mobility Analyst

Email: [email protected]: @chrisNMP

Michael SoperNetworking & Mobility Research Analyst

Email: [email protected]: @MichaelJSoper

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TBR’s Telecom Vendor Benchmark reports deliver unique insight and value through in-depth analysis in a concise, consumable format • TBR reports are unique for their deep, holistic

analysis of leading vendors in the telecom and mobility industries.

• Financial modeling and TBR insights help customers gain a better understanding of vendor business models.

• TBR’s quarterly reports and webinars are responsive to client timelines, clear and concise, and provide insights across multiple layers of a vendor’s organization.

• TBR’s strategic assessment provides an impartial check on a vendor’s progress in its strategic objectives.

Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook: Webinar Overview

TBR Telecom Vendor Benchmark Portfolio

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Applications:• Vendors going after OSS/BSS transformation deals• Software players leveraging analytics and cloud enablement

services to cater to operators

Telecom vendors are fleshing out their OSS/BSS and managed services strategies while dealing with a flagging infrastructure market

Telecom Vendor Benchmark 3Q12 Research Highlights and 2013 Outlook

Telecom Vendor Trends entering 2013

Infrastructure:• Declining demand for legacy technologies (GSM, CDMA)• Ramp up in LTE in North America, while Europe holds back• Increased competition for incumbents, especially in Europe

Services:• Ericsson extending its market leading position• Decline in the professional services market• NSN and Alcatel-Lucent to concentrate on high-value services

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Decreased demand for legacy technologies weighed on vendor infrastructure sales






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Revenue growth slowed or declined for nearly all vendors as operators delayed investments, especially in Europe


Alcatel-Lucent

Cisco

Ericsson

NSNSamsung

ZTE

Huawei

JuniperHP

IBM-40%

-30%

-20%

-10%

0%

10%

20%

30%

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0

Year

-to-

Year

Rev

enue

Gro

wth

Revenue (in $ billions)

INFRASTRUCTURE SEGMENT 3Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH

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SOURCE: TBR AND COMPANY DATA

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Vendors were impacted by a lack of spending on the part of European operators

Alcatel-Lucent• Weakened demand for wireless and optical

equipment• Impacted by lower capex spend on GSM,

CDMA• Wireline is showing improvement on strength

of China deals• IP expected to continue growth

NSN• Taking advantage of LTE opportunity in APAC• Contracts with SK Telecom, LG U+, KT,

Softbank, and KDDI• Strong reference group points to success when

India and China launch LTE RFPs

Ericsson • 3Q12 Networks Revenues:

• Northern Europe & Central Asia: - 38% year-to-year• Western & Central Europe: - 48% year-to-

year• Mediterranean: - 11% year-to-year

• Increased competition from Huawei in Europe• Leader in heterogeneous networks


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NEPs focus on OSS/BSS while software vendors see analytics and cloud enablement as an opportunity to win business







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Huawei and Ericsson leverage OSS/BSS as part of their network rollout activities to gain a revenue advantage over dedicated software players


Alcatel-Lucent

Cisco

Ericsson

HP

IBM

NSN

Samsung

ZTE

Huawei

Juniper

-30%

-15%

0%

15%

30%

45%

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70

Year

-to-

Year

Rev

enue

Gro

wth


APPLICATIONS SEGMENT 3Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH

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Ericsson and Huawei found success in OSS/BSS while Alcatel-Lucent pushed its CEM suite and updated its Applications Enablement strategy

Ericsson• Working to fully integrate new telecom

software assets• ConceptWave provides more advanced order

management and product catalog management solutions than previously acquired Telcordia

Alcatel-Lucent• Applications Enablement strategy received

updates in 3Q12• Focused on pushing its Motive CXS CEM suite

• Belgacom selected Alcatel-Lucent’s Service Quality Manager

Huawei• Focused on OSS/BSS opportunity to start 2013• A full-fledged CEM proposition is expected this

year, but for now Huawei remains behind NSN and Alcatel-Lucent in CEM• Will undercut pricing models of competitors to

take share in CEM


Key OSS/BSS Acquisitions

Ericsson

Telcordia Closed January 2012

ConceptWaveClosed September 2012

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The TIS market is fluid, with Ericsson expanding its lead and NSN and Alcatel-Lucent taking a more selective approach to contracts






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Ericsson pulls farther away from the pack as close competitors Alcatel-Lucent and NSN restructure


Accenture

Alcatel-Lucent

CiscoEricsson

HP IBMNSN

Samsung

ZTE

HuaweiJuniper

-20%

-10%

0%

10%

20%

30%

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0

Year

-to-

Year

Rev

enue

Gro

wth


SERVICES SEGMENT 3Q12 REVENUE & YEAR-TO-YEAR REVENUE GROWTH

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Restructuring is causing NSN and Alcatel-Lucent to focus on winning high-value services contracts in regions that yield higher margins

NSN• Slower growth due to focus on higher-margin

opportunities as part of restructuring• NSN is focused on providing high-value

services rather than managed or maintenance services contracts

Alcatel-Lucent• Low deployment activity as company secured

fewer LTE contracts than competitors such as Ericsson, Huawei, and NSN• Similar to NSN, Alcatel-Lucent will

concentrate on high-value services, such as consulting

Ericsson• Protecting its install base from Huawei and

ZTE, particularly in Europe, is a key strategy• Entering modernization and transformation

contracts • Leverages its status as end-to-end services

leader


Priority Markets Identified as Part of Restructuring

Alcatel-Lucent NSN

China Japan

EMEA South Korea

North America United States

Overview of Ericsson’s 3Q12 Global Services Segment

Contract Type 3Q12 3Q11

New managed services contracts 6 8

Expansions or extensions of existing contracts

5 6

Consulting & systems integration contracts 3 4

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Telecom vendors are fleshing out their OSS/BSS and managed services strategies while dealing with a flagging infrastructure market





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Vendors are investing in customer experience management, small cells and high-value services to drive growth

TBR Networking & Mobility Practice Syndicated Topics 4Q12: Telecom Vendors

Quarterly Topics TBR Value Proposition Related Reports

Customer Experience Management (CEM)

• Determine which services and software (e.g., OSS/BSS, analytics) telecom infrastructure vendors are including in their CEM solutions.

• Evaluate how vendors are leveraging partnerships with analytics and software players to differentiate CEM offerings.

Alcatel-Lucent, Ericsson, HP, Huawei, NSN

Wi-Fi/Small Cells

• Identify which vendors are technology leaders.• Determine in which regions small cells are in highest demand.• Evaluate how vendors are integrating Wi-Fi with small-cell products

(i.e., acquiring the technology, high R&D investment).

Alcatel-Lucent, Cisco, Ericsson, Huawei, NSN

Services

• Anticipate the next services boom following heavy deployment activity in India, the U.S. and Europe.

• Identify which vendors are making a strategic push into high-value services, such as consulting and systems integration.

• Determine to what extent low-cost telecom infrastructure players are gaining traction in services-only deals.

Accenture, Alcatel-Lucent, Ericsson, Huawei, HP, NSN

Consolidation

• Track developments in vendor M&As, identifying which players need to acquire to enhance their portfolios or enter new markets.

• Analyze the impact of operator consolidation on the telecom infrastructure and services markets.

Alcatel-Lucent, Cisco, Ericsson, Huawei, Juniper, NSN

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Questions?


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For further information, please contact:

Kate PriceDirector, Networking & Mobility Practice

[email protected]

Chris AntlitzNetworking & Mobility Analyst

Email: [email protected]: @chrisNMP

James McIlroyVice President, Sales

[email protected]

Michael SoperNetworking & Mobility Research Analyst

Email: [email protected]: @MichaelJSoper

@TBRincwww.slideshare.net/TBR_Market_Insightwww.youtube.com/user/TBRIChannel

mailto:[email protected]


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TECHNOLOGY BUSINESS RESEARCH, INC.

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