Foundation

58World2000 World top telecom equipment manufacturersIn 1999, the world telecoms equipment market wasmarked by a three-tier leitmotif. The first was theincreasing presence of optic and opto-electroniccomponent based equipment, particularly in thelong distance and backbone transport segments,with, nevertheless, the emergence of this type ofequipment in MANs in late 1999, a trend which isexpected to grow over the coming years (cf.NORTEL's positioning). The second prime elementcomprised the growing share of equipmentdestined to wireless infrastructures (LMDS, GPRSand GSM gear, first UMTS framework agreements).The presence of Motorola, Nokia, and Ericssonamong the top 5 is a resounding reflection of thisaspect of the market which is expected to beamplified with the first UMTS contracts in 2001 and2002. Lastly, the third reigning trend involves thegrowing phone-IT convergence due to the vastproliferation of IP in carrier networks, on the onehand, and on business access networks, on theother. On this market, the provision of gross routedconnectivity appears to hold increasingly less valueadded, the onus now being on intelligent aspectssuch as firewalling, class 7 content switching andtraffic analysis. These three elements of analysis,whose consequences will no doubt intensify in thecoming years, are contributing to a restructuring ofthe market toward pure players integrated intothese segments. It is according to this logic that isappears possible to analyse the recent Lucent-Avaya break up, the rumours surroundingEricsson's sale of its terminal activity and 3Com'srepositioning on business equipment as well asAlcatel's takeover of Newbridge. Top 25 telecom equipment manufacturers in the WorldRank Manufacturer Country 1999 telecom Growth 1998-1999 Total salesequipment (million $)sales (million $)1 Lucent USA 32 592 21.4% 38 7742 Ericsson Sweden 26 017 12.1% 26 0173 Motorola USA 22 212 7.9% 30 9314 Siemens Germany 21 973 35.1% 66 8365 Nortel Canada 21 773 26.2% 22 2176 Alcatel France 19 891 3.3% 23 1297 Nokia Finland 19 681 43.7% 19 6818 Nec Japan 15 309 38.8% 48 4609 Cisco USA 12 154 43.7% 12 15410 IBM USA 7 128 16.0% 87 54811 Fujitsu Japan 7 859 47.8% 49 57612 Matsushita Japan 5 503 42.0% 8 81613 Marconi UK 5 416 86.0% 9 16514 3Com USA 4 334 -0.2% 4 33415 Hugues USA 4 087 33.0% 5 56016 Qualcomm USA 3 927 17.3% 3 92717 Corning USA 2 845 58.7% 4 74118 Tellabs USA 2 319 36.1% 2 31919 Hewlett Packard USA 2 162 12.9% 42 37020 Sagem France 1 809 11.0% 3 39521 Toshiba Japan 1 753 -5.2% 54 23922 Oki Electric Japan 1 573 -6.5% 6 31923 Italtel Italy 1 599 -29.7% 1 59924 Mitsubishi Japan 1 537 -2.5% 35 60625 JDS Uniphase USA 1 430 405.3% 1 430© IDATE www.idate.fr