When Is The World Going To Deploy LTE?
 

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When Is The World Going To Deploy LTE? Presentation Transcript

  • 1. TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.TBR’s 4Q12 Telecom Infrastructure Services(TIS) BenchmarkResearch Highlights and OutlookTechnology Business Research (TBR) Quarterly Webinar Series4.17.13
  • 2. TBR2 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Chris AntlitzNetworking & Mobility Practice AnalystEmail: chris.antlitz@tbri.comTwitter: @chrisNMPWebinar Presenter
  • 3. TBR3 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Key DevelopmentsKey Developments LTE deployment in the Americas and China will drive TIS revenue in2013 The professional services market is starting to recover, but EMEAremains challenged Huawei and ZTE are redoubling efforts to grow managed servicesbusinessesLTE deployments in North America, Japan and South Korea were key TISgrowth catalysts in 4Q12; CALA and China will contribute to growth in 2013
  • 4. TBR4 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.TISTIS Overview• Opportunity model• Market share• Margin analysisTBR identifies the largest and fastest-growing servicessegments, enabling vendors to adjust their services strategyand tactics to capitalize on the best market opportunities.TBR’s research in Telecom Infrastructure Services (TIS) helps vendorsidentify growth opportunities and grow market shareOpportunity• More than $82 billion annualspend by GlobalCommunication ServiceProviders on professional,managed, deployment andmaintenance services• Identify leaders, strategies andgrowth opportunities in TISindustry to capture share fromcompetitors and hold off rivalsTBR’s Quarterly TIS Benchmark covers the top41 TIS suppliers by service type and regionDeploymentMaintenanceProfessional ServicesManaged ServicesNorth AmericaCALAEMEAAPACTIS Overview
  • 5. TBR5 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.TIS Company CoverageAccentureAgilentAlcatel-LucentAmdocsAmerican TowerAtosBechtelBouygues ConstructionCapgeminiCGIChina CommunicationsConstructionCienaCiscoConvergysCrown CastleCSG SystemsCTDIEMCEricssonFujitsuGeneral DynamicsHPHuaweiHyundai Engineering &ConstructionIBMIndus TowersInfosysJabilJuniperMicrosoftNECNokia Siemens NetworksOracleOrascom ConstructionIndustriesSamsungSAPSBA CommunicationsTata Consultancy Services(TCS)Tech MahindraWiproZTETIS Company Coverage
  • 6. TBR6 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Ericsson is pulling further away from the pack as close competitorsAlcatel-Lucent and NSN remain focused on restructuringMarket Overview: Tier 1 TIS Market Leaders• Ericsson continues to outperform thanks to services-led approach.• Alcatel-Lucent and NSN sales falling, but margins improving.• Accenture, HP and IBM suffering from professional services slowdown.EricssonHuaweiAlcatel-LucentNSNCiscoIBMHPAmdocsChinaCommAccenture-10%-5%0%5%10%15%$- $1.00 $2.00 $3.00 $4.00 $5.00Year-to-YearRevenueGrowthTIS Revenue for AllLinesofBusinessTen Largest TIS Suppliers: 4Q12 Revenue (Billions USD)SOURCE: TBR AND COMPANY DATATBR
  • 7. TBR7 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Tier 2 TIS suppliers are either consolidating via M&A or increasingspecialization to better compete against Tier 1 vendorsMarket Overview: Tier 2 TIS Market Leaders• NEC and Jabil participated in strategic M&A to boost their market positions andbetter compete against Tier 1 vendors.• Expect more M&A to occur as industry consolidates, i.e. Oracle.• ZTE to be resurgent in 2013 after credit lifeline.FujitsuZTESAPOracleNECTCSAtosJabilEMCBechtel-10%0%10%20%30%40%50%60%$- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80Year-to-YearRevenueGrowthTIS Revenue for AllLinesofBusinessSecond Tier TIS Suppliers: 4Q12 Revenue(Billions USD)TBRSOURCE:TBR AND COMPANYDATANOTE: SECOND TIER INCLUDES SUPPLIERS RANKED 11-20.
  • 8. TBR8 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Vendors servicing niche markets or heavily involved in software supportservices tend to reap the highest TIS marginsMarket Overview: TIS Operating Margin Leaders• Cisco is a leader in TIS margins due to its near monopoly in routers and switches androle as strategic partner in key operator accounts.• Software vendors like Microsoft and Oracle obtain high TIS margins because they selllucrative maintenance services to their install bases, which are highly scalable andtypically provisioned remotely instead of on-site.American TowerCiscoEMCTCSCrownCastleInfosysTech MahindraOracleMicrosoftCiena15%20%25%30%35%40%45%50%$0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30TISOperatingMarginTIS OperatingIncomefor AllLinesofBusiness(In BillionsUSD)TIS 4Q12 Operating Margin LeadersSOURCE: TBR AND COMPANY DATATBR
  • 9. TBR9 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.LTE buildouts in North America, Japan and South Korea continued to fuelgrowth in deployment services revenueSegment Views: Deployment Services• As Japan and South Korea LTE deployments reach completion, NSN to shift focus toUnited States, where T-Mobile and U.S. Cellular starting LTE rollout.• Alcatel-Lucent suffering from lack of LTE deals in key markets outside of North America.• Engineering firms playing pivotal role in tower deployments.EricssonChinaComm NSNBechtelHuaweiFujitsuZTEAlcatel-LucentCiscoJabil-20%-10%0%10%20%30%40%50%60%$- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60Year-to-YearRevenueGrowthTIS DeploymentRevenueTen Largest TIS Suppliers: 4Q12 Deployment Revenue(Billions USD)TBRSOURCE: TBR AND COMPANY DATA
  • 10. TBR10 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Maintenance services market growth remains slow and steady, supportedby new infrastructure builds such as LTESegment Views: Maintenance Services• Tier 1 vendors are shifting more toward remote technical support and away fromfield maintenance to boost margins.• Alcatel-Lucent and NSN restructuring unlocks opportunities for close rivals Ericsson,Huawei and ZTE to consolidate market positions.• LTE and IP deployments will support maintenance services market going forward.EricssonOracleNSNCiscoHuaweiAlcatel-LucentFujitsuSAPZTEJabil-15%0%15%30%45%60%$- $0.20 $0.40 $0.60 $0.80 $1.00Year-to-YearRevenueGrowthTIS Maintenance RevenueTen Largest TIS Suppliers: 4Q12 Maintenance Revenue(Billions USD)SOURCE: TBR AND COMPANY DATATBR
  • 11. TBR11 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Demand for professional services is starting to bounce back after weaksales in the first nine months of 2012, as operators stress opex reductionsSegment Views: Professional Services• Operators still selective on consulting projects they put out for bid.• Projects that are getting awarded are longer duration and converting to revenue ata slower rate, which is impacting vendor results, especially Accenture, HP and IBM.• Despite weakness in 2012, the need for professional services remains strong.NSNEricssonIBMAlcatel-LucentAmdocsAccentureHPChinaCommCiscoHuawei-25%-20%-15%-10%-5%0%5%10%15%20%$- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20Year-to-YearRevenueGrowthTIS ProfessionalServicesRevenueTen Largest TIS Suppliers: 4Q12 Professional Services Revenue(Billions USD)TBRSOURCE: TBR AND COMPANY DATA
  • 12. TBR12 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Alcatel-Lucent’s and NSN’s shift away from certain types of managedservices will allow Ericsson, Huawei and ZTE to consolidate their positionsSegment Views: Managed Services• Ericsson remains the go to vendor for end-to-end network operations outsourcing.• NSN and Alcatel-Lucent exiting field operations contracts due to low margins, whichis impacting revenue.• Huawei and ZTE are being aggressive to scale up their managed services businesses.AmdocsEricssonIBMHuaweiNSNAlcatel-LucentAccentureHPCSGSystemsSAP-40%-35%-30%-25%-20%-15%-10%-5%0%5%10%15%20%25%$- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20Year-to-YearRevenueGrowthTIS Managed ServicesRevenueTen Largest TIS Suppliers: 4Q12 Managed Services Revenue(Billions USD)TBRSOURCE: TBR AND COMPANY DATA
  • 13. TBR13 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Tier 1 LTE deployments in the U.S. fueled TIS growth for most vendors in4Q12 and will support TIS growth in the region through 2013Geographic Views: North America• LTE deployments lifting most vendors’ revenues.• NSN outlier due to T-Mobile ramp up and fast U.S. Cellular rollout.• Cisco aims to become strategic partner in key accounts.Alcatel-LucentCiscoIBMEricssonNSNOracleAccentureHPBechtel Amdocs-15%-10%-5%0%5%10%15%20%25%30%35%40%$- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20Year-to-YearRevenueGrowthTIS North AmericaRevenueTen Largest North American TIS Suppliers: 4Q12 Revenue(Billions USD)TBRSOURCE: TBR AND COMPANY DATA
  • 14. TBR14 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.European operators remain cautious on capex outlays, but are investingin opex reduction to stay competitive, which supports the TIS marketGeographic Views: EMEA• Opex reduction is of utmost importance, especially in Europe.• Huawei taking market share in Europe.• Alcatel-Lucent and NSN are exiting certain countries in Africa.EricssonAlcatel-LucentHuaweiNSNIBMAccentureHPChinaCommAtosZTE-25%-20%-15%-10%-5%0%5%10%15%20%25%$- $0.30 $0.60 $0.90 $1.20 $1.50 $1.80Year-to-YearRevenueGrowthTIS EMEA RevenueTen Largest EMEA TIS Suppliers: 4Q12 Revenue (Billions USD)TBRSOURCE: TBR AND COMPANY DATA
  • 15. TBR15 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.LTE network builds in Japan and South Korea drove APAC TIS revenue in4Q12, particularly for Nokia Siemens and EricssonGeographic Views: APAC• Japan and South Korea driving TIS in APAC; NSN and Ericsson key beneficiaries.• All eyes on China Mobile LTE deployment in 2013.• India remains wildcard on LTE deployment.NSNFujitsuChinaCommEricssonHuaweiZTENECAlcatel-LucentHPIBM-20%-15%-10%-5%0%5%10%15%$- $0.30 $0.60 $0.90 $1.20 $1.50Year-to-YearRevenueGrowthTIS APAC RevenueTen Largest APAC TIS Suppliers: 4Q12 Revenue (Billions USD)TBRSOURCE: TBR AND COMPANY DATA
  • 16. TBR16 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.CALA operators are pushing forward with network upgrades and newdeployments as governments in the region encourage developmentGeographic Views: CALA• LTE rollouts just beginning; will ramp up in 2013.• Latin American governments encouraging network investment.• NSN decline due to exit from Oi managed services contract in Brazil.NSNAlcatel-LucentCiscoZTEHuawei EricssonOracleHPAmdocsChinaComm-45%-30%-15%0%15%30%$- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60Year-to-YearRevenueGrowthTIS CALA RevenueTen Largest CALA TIS Suppliers: 4Q12 Revenue (Billions USD)TBRSOURCE: TBR AND COMPANY DATA
  • 17. TBR17 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.ConclusionsConclusions LTE deployment in the Americas and China will drive TIS revenue in2013 The professional services market is starting to recover, but EMEAremains challenged Huawei and ZTE are redoubling efforts to grow managed servicesbusinesses
  • 18. TBR18 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.TBR Networking & Mobility Practice Syndicated Topics 1Q13: Telecom VendorsQuarterly Topics TBR Value Proposition Related ReportsNetwork FunctionVirtualization • Determine which vendors are the early leaders in technologiessuch as software-defined networking and self-organizing networks.• Evaluate vendor network function virtualization (NFV) road maps.Alcatel-Lucent,Cisco, Ericsson,IBM, Juniper, NSN,Samsung, ZTELTE Deployments • Identify which vendors are LTE leaders in revenue and contractcount.• Determine in which regions LTE is being deployed.• Anticipate the next regional shift of LTE revenue.Alcatel-Lucent,Cisco, Ericsson,NSN, Samsung, ZTEEnterpriseSolutions • Determine which vendors are expanding their addressable marketsto cater to the enterprise sector.• Identify which vendors are making a strategic push into enterpriseservices, such as consulting and systems integration.• Analyze which vendors are likely to succeed and which are mostlikely to spread themselves too thin by catering to the enterprise.Alcatel-Lucent,Ericsson, Huawei,NSN, Samsung, ZTEConsolidation • Track developments in vendor M&As, identifying which playersneed to acquire to enhance their portfolios or enter new markets.• Analyze the impact of operator consolidation on the telecominfrastructure and services markets.Alcatel-Lucent,Cisco, Ericsson,Juniper, NSN,Samsung, ZTETBR conducts a major review of the telecom industry on a quarterlybasis and identifies key topics to integrate into its syndicated reports
  • 19. TBR19 TBR Quarterly Webinar Series | 4.17.13 | www.tbri.com | ©2013 Technology Business Research Inc.Chris AntlitzAnalyst, Networking andMobility Practicechris.antlitz@tbri.com@chrisNMPQuestions?For further information, please contact:Kate Price James McIlroyPractice Manager, Networking & Mobility Vice President of Saleskate.price@tbri.com mcilroy@tbri.comQ & A@TBRincwww.slideshare.net/TBR_Market_Insightwww.youtube.com/user/TBRIChannel
  • 20. TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.About TBRTechnology Business Research (TBR) is a leading independenttechnology market research and consulting firm specializing in thebusiness and financial analyses of hardware, software, networkingequipment, wireless, portal and professional services vendors.Serving a global clientele, TBR provides timely and accurate marketresearch and business intelligence in formats that are tailored toclients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietaryconsulting basis.TBR has been empowering corporate decision makers since 1996.To learn how our analysts can address your unique business needs,please visit our website or contact us today.Contact Us1.603.929.1166info@tbri.comwww.tbri.com11 Merrill DriveHampton, NH 03842USAThis report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. TechnologyBusiness Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is notand should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This reportis copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.