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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 Negative/Neutral Neutral
Company Advisor Report Excerpt
(List of available reports)
Company
Report Updated
Alcatel-Lucent 7/16/2008
Company Strengths and Weaknesses
Excerpt from Company Strengths
• Combining wireless assets from Alcatel, Lucent, and Nortel, Alcatel-Lucent claims a strong or growing position in key wireless markets. It is the undisputed leader for CDMA2000. In WCDMA, the vendor claims a strong revenue uptick for Q1 2008 and some of the market’s first HSUPA upgrades.
Excerpt from Company Weaknesses
• Outside of CDMA2000, Alcatel-Lucent is still not a leading wireless player.
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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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Cisco
Cisco is not immediately identifiable as a wireless heavyweight. As IP becomes a bigger part of wireless networks, however, Cisco could benefit – though a loss of partners in the mobile core and questionable commitment to WiFi mesh is worrying. (6/9/2008)

  
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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, which suggests some opportunities are going untapped. (7/15/2008)

  
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Huawei
Huawei has quickly proven its mettle as a fierce wireless competitor, racking up solid momentum with Tier 1 operators and small players alike. Yet, as competitors move aggressively on IP and platform reuse, Huawei’s marketing looks less unique. (5/13/2008)

  
 Price: $495

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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Nokia Siemens Networks
NSN celebrates its one year anniversary with a healthier financial outlook, strong support for its LTE offering and strategic acquisitions. Unfortunately, momentum in 3G and LTE does not seem to translate into growth with WiMAX. (5/27/2008)

  
 Price: $495

Nortel
WiMAX and CDMA wins contribute to Nortel’s continued profitability but laggard GSM/UMTS dampens the enthusiasm. Yet, an evolved EDGE offering and wins involving its MSC Server indicates a commitment to 2G - if only as a transition to 4G. (5/7/2008)

  
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Samsung
Momentum beyond Sprint shows that Samsung is a strong WiMAX player. Yet, a nascent market suggests it must extend its 4G strategy. Adding network support for LTE coupled with support from its strong device business could provide it an edge. (6/10/2008)

  
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UTStarcom
UTStarcom is not a major 2G or 3G player, and an inability to file financial statements since last year suggests serious problems. A focus on FMC and niche markets, however, represents a smart way to build momentum. (7/24/2007)

  
 Price: $495

ZTE
After three years (2004 – 2006) of roughly stagnant revenues, 2007 was a banner year for ZTE. The company credits CDMA2000 and GSM sales for its success, but relying on highly competitive, mature markets could be risky in the long-term. (5/8/2008)

  
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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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