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Wireless Infrastructure
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Companies Competing in the Market
(Guide to Company Ratings)
Company Current Perspective Vision
Alcatel-Lucent Positive Positive
Alvarion Neutral/Positive Negative/Neutral
Cisco Positive Neutral/Positive
Ericsson Very Positive Positive
Huawei Positive Neutral
Juniper Networks Negative/Neutral Negative/Neutral
LG Electronics Negative Negative
Motorola Neutral/Positive Neutral/Positive
NEC Neutral/Positive Negative
Nokia Siemens Networks Positive Positive
Nortel Neutral Neutral
Samsung Negative/Neutral Neutral/Positive
Starent Networks Positive Positive
UTStarcom Negative Neutral
ZTE Neutral/Positive Neutral
Company Advisor Report Excerpt
(List of available reports)
Company
Report Updated
Ericsson 11/20/2008
Company Strengths and Weaknesses
Excerpt from Company Strengths
• By most accounts, Ericsson is the market’s biggest wireless vendor – a benchmark for success in the wireless infrastructure market. As of July 2008, the company claimed 40% of all mobile traffic running across its networks, a 60% share of the EDGE market, and a 50% share of launched HSPA networks.
Excerpt from Company Weaknesses
• Ericsson’s Q3 2008 sales growth surprised many analysts, given an expectation of “flattish” markets. Regardless, it cannot be denied that fierce competition from Chinese vendors and the cost demands of emerging markets could take a toll on Ericsson’s financials; the company has already seen its operating margin drop to below 10% for much of 2008 (from 19.9% in 2006).
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Alcatel-Lucent
Alcatel-Lucent continues to execute on its WiMAX strategy and strong fixed-line assets should be a clear strength going forward. With CDMA2000 slowly contracting and a trailing WCDMA position, corporate issues could still derail this progress. (7/16/2008)

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Alvarion
(2/12/2008)

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Cisco
As 3G and so-called 4G solutions gain momentum, Cisco should be in a position to leverage its IP expertise to carve out a greater wireless success. WiMAX wins aside, the real opportunity could lie in the transport layer. (10/8/2008)

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Ericsson
Ericsson has established itself as one of the market’s strongest wireless vendors. Yet, as the Swedish vendor grapples with flattish revenues, Chinese competitors are registering sales growth – suggesting some opportunities are going untapped. (11/20/2008)

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Huawei
Solid momentum and a strategic focus on emerging technologies suggest that Huawei is maturing into the major wireless player that it has claimed to be. Unfortunately, it is also more susceptible to stiffer competition and market woes. (9/4/2008)

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Motorola
A separation bodes well for Motorola’s networks business, bringing more focused resources for a winning WiMAX strategy. Yet, the separation is elusive and a dismal mobile device business overshadows any positive moves toward being a 4G leader. (7/10/2008)

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NEC
(6/5/2008)

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Nokia Siemens Networks
While rivals are floundering after consolidation, NSN appears to be flourishing. Beyond growth in GSM and WCDMA, NSN is staking a leadership claim in LTE. Unfortunately, the vendor is not immune to the current economic woes of the market. (9/8/2008)

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Nortel
A renewed focus on LTE makes sense given a growing number of operator endorsements. Unfortunately, Nortel’s 4G strategy is dependent on wireless revenues that still rely on the declining CDMA and GSM markets. (9/8/2008)

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Samsung
Wave 2 certification and another win show Samsung’s continued commitment to WiMAX is paying off. Unfortunately competitors overshadow this progress by racking up even more deals. Luckily, Sprint’s Xohm launch should further prove its WiMAX mettle. (10/8/2008)

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Tropos Networks
(3/17/2008)

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UTStarcom
(2/28/2008)

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ZTE
Revenue growth in GSM, CDMA2000 and TD-SCDMA highlight a strategy that is growing ZTE’s wireless stature, especially outside China. Yet relying on these mature technologies will not necessarily elevate it into a credible 4G vendor. (9/4/2008)

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. Company Advisor Report Contents
  • Sections
    • -Company Description
    • -Current Perspective
    • -Company Market/Sales Strategy
    • -Company Strength
    • -Company Weaknesses
    • -Recommended Competitor Action
    • -Recommended End User/Customer Actions

    Page count: 5-6 pages

  • Publication date: See date at end of summary.
          Reports are updated three times a year

  • Description of Sections
  • Company Description
    • Up-to-date look at what markets the company competes in and what it brings to those markets. Coverage includes: main product lines, important partnerships, key clients, recent sales wins.
  • Current Perspective
    • Our analysts give their assessment on whether or not the company has the technology, products & services and management team needed to compete in its markets.
  • Company Market/Sales Strategy
    • What are the company’s value proposition and key differentiators. How it positions itself in the market, and against its competitors. And what are its target audiences.
  • Company Strengths & Weaknesses
    • Unique tactical competitive analysis based on the specific tactics that a company is using, and in-depth analysis of its products and capabilities
  • Recommended Competitor Actions
    • Who are the company's main competitors, and what actions we can expect from each competitor or the market at large.
  • Recommended End User/Customer Actions
    • How customers (either end users or purchasers of this product for resale/bundling) should view the company. Should customers consider purchasing products/services from this company? What specific actions or questions should the customer pursue during negotiation phase?

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. Guide to Company Ratings

Current Perspective

Overall company assessment relative to competitors across all markets in which they compete.

Very Positive: Company has strong position now, or on way to certain success if continue to execute as planned. Leader in multiple areas (e.g., product quality, market share, distribution channels, lower cost)
Positive: Positive opinion on firm, technology, products/services and/or management team. Well-positioned now and could be strong competitor in the near future.
Neutral: No strong opinions regarding the company. Can occupy niche or segment that is relatively stable.
Negative: Losing ground in multiple areas, must take corrective actions immediately in order to prevent total failure (e.g., bankruptcy).
Very Negative: Decreasing sales, slipping market share, delayed product or services cycles. Can’t overcome current problems within the next 12 months.
Status

Relative position of the company against its competitors.

Mature: In business long enough to have legacy product/ service base, and stable customer base.
Established: Stable product and/or service base – and stable customer base – can survive market turmoil.
Emerging: Delivering actual product but still a relatively small player in the market.
Startup: Pre-product or service.
Momentum

General direction of the company relative to others in the industry.

Very Positive: Quickly establishing a market-leading position in both sales and industry-buzz.
Positive: Gaining market share, gaining positive perception among market watchers (investors, customers).
Neutral: Holding steady, no real gain or decline in market movement.
Negative: Beginning to lose market share and market leadership (perceived or actual).
Very Negative: Steep decline in market share or industry leadership (perceived or actual).
Future Vision

How well the company understands the direction of the market, including customer requirements, business and social changes and innovation.

Very Positive: When company talks, market listens carefully. Offers innovations consistently and management team respected for ability to shape markets.
Positive: Clearly communicates overall vision and plans for the market, occasionally offers ground-breaking direction to the overall market.
Neutral: Neither market leader nor follower, company’s communication of vision is uninspiring.
Negative: Poor communication and/or execution of strategic vision. Changes “vision story” frequently, appears indecisive on how to approach market(s).
Very Negative: Consistently follows the market leaders, fails to communicate strategic vision, very little understanding of customer and market requirements.

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All Markets
Telecom Infrastructure
Broadband Infrastructure
Carrier Infrastructure
Digital Media Infrastructure
IP Services Infrastructure
Optical Infrastructure
Telecom Infrastructure Services
Wireless Infrastructure
Enterprise Technology and Software
Data Center
Enterprise Communications
Enterprise Network Systems
Enterprise Security
Contact Center Solutions
Application Infrastructure
Business Telecom Services
Business Network Services - U.S.
Internet/Managed Services - U.S.
Business Telecom Services - Europe
Wholesale Telecom Services
Telecom Services - Asia
Enterprise Mobility - U.S.
Enterprise Mobility - Europe
Consumer Telecom Services
U.S. Wireless Research Portal
Wireless Services - U.S.
Mobile Devices
Digital Home - U.S.
Consumer Broadband Services - Europe
Wireless Services - Europe

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