Rajeev Suri, the Chief Executive Officer of Nokia Siemens Networks, a leading global enabler of telecommunications services, predicts that the number of wireless network equipment companies in the mobile market will decline in the future.
"My estimate is that in the long-term, the markets will have room for three major international manufacturers of wireless network equipment”, Suri notes.
At the moment, there are five large companies in the mobile market: Ericsson, Nokia Siemens Networks, Huawei, Alcatel-Lucent, and ZTE.
The Chinese Huawei and ZTE have done well in recent years, mainly because their equipment is considerably cheaper than that of European companies.
The decline in the number of rivals is mainly attributable to the current severe competition and the changes in business structure in the network equipment markets.
An increasing number of teleoperators are outsourcing the technical maintenance of their networks to network equipment manufacturers in order to concentrate more strongly on consumer services.
In the service sector, the market leaders are Ericsson and Nokia Siemens Networks.
In Suri’s view, the decisive thing in the future will be to stay at the forefront of new technological development.
Long term evolution (LTE) is the latest standard in the mobile network technology tree, known as the the 4th generation of mobile telecommunication networks, which is still in its early stages.
Usually the 4g networks that are being advertised by teleoperators rather represent "3.9g" network technology.
In the future, one LTE base station will offer a data transfer rate of a total of 100 megabytes per second for wireless network equipment. It is equivalent to the currently used fixed broadband access.
Operating since the spring of 2007, Nokia Siemens Networks has so far axed almost 2,000 jobs in Finland in order to improve its competitiveness and to cut down on overlapping business activities brought about by combining the network equipment units of Nokia and Siemens.
Ever since it was established, the company has been facing financial difficulties. However, Nokia Siemens is not even close to the serious financial straits experienced for example by its rival Alcatel-Lucent.
In the third quarter of last year, Nokia Siemens Networks’ financial loss without one-time items was EUR 116 million.
According to CEO Suri, the company has made no new plans to transfer jobs to low-cost countries. Instead, the survey of previously announced cost-cutting measures is to continue.
The aim of the company is to reduce its operating costs by EUR 500 million by the end of the current year.
”We have a huge number of proficient employees in various Finnish localities. Finland remains an important country for us”, Suri notes.
The company currently has a total of 7,000 employeees in Finland.
FACTFILE: A large number of business reorganisations
In 2005, Ericsson becomes the majority owner of Marcon.
In 2006, Alcatel-Lucent was formed when the French Alcatel merged with the US firm Lucent Technologies.
In 2007, Nokia and Siemens combine their network equipment units.
In 2009, Ericsson buys Canada’s Nortel mobile network.
In 2010,Nokia Siemens Networks announces that it will buy the majority of Motorola’s wireless network unit. The transaction has not been completed yet.
"My estimate is that in the long-term, the markets will have room for three major international manufacturers of wireless network equipment”, Suri notes.
At the moment, there are five large companies in the mobile market: Ericsson, Nokia Siemens Networks, Huawei, Alcatel-Lucent, and ZTE.
The Chinese Huawei and ZTE have done well in recent years, mainly because their equipment is considerably cheaper than that of European companies.
The decline in the number of rivals is mainly attributable to the current severe competition and the changes in business structure in the network equipment markets.
An increasing number of teleoperators are outsourcing the technical maintenance of their networks to network equipment manufacturers in order to concentrate more strongly on consumer services.
In the service sector, the market leaders are Ericsson and Nokia Siemens Networks.
In Suri’s view, the decisive thing in the future will be to stay at the forefront of new technological development.
Long term evolution (LTE) is the latest standard in the mobile network technology tree, known as the the 4th generation of mobile telecommunication networks, which is still in its early stages.
Usually the 4g networks that are being advertised by teleoperators rather represent "3.9g" network technology.
In the future, one LTE base station will offer a data transfer rate of a total of 100 megabytes per second for wireless network equipment. It is equivalent to the currently used fixed broadband access.
Operating since the spring of 2007, Nokia Siemens Networks has so far axed almost 2,000 jobs in Finland in order to improve its competitiveness and to cut down on overlapping business activities brought about by combining the network equipment units of Nokia and Siemens.
Ever since it was established, the company has been facing financial difficulties. However, Nokia Siemens is not even close to the serious financial straits experienced for example by its rival Alcatel-Lucent.
In the third quarter of last year, Nokia Siemens Networks’ financial loss without one-time items was EUR 116 million.
According to CEO Suri, the company has made no new plans to transfer jobs to low-cost countries. Instead, the survey of previously announced cost-cutting measures is to continue.
The aim of the company is to reduce its operating costs by EUR 500 million by the end of the current year.
”We have a huge number of proficient employees in various Finnish localities. Finland remains an important country for us”, Suri notes.
The company currently has a total of 7,000 employeees in Finland.
FACTFILE: A large number of business reorganisations
In 2005, Ericsson becomes the majority owner of Marcon.
In 2006, Alcatel-Lucent was formed when the French Alcatel merged with the US firm Lucent Technologies.
In 2007, Nokia and Siemens combine their network equipment units.
In 2009, Ericsson buys Canada’s Nortel mobile network.
In 2010,Nokia Siemens Networks announces that it will buy the majority of Motorola’s wireless network unit. The transaction has not been completed yet.
No comments:
Post a Comment