Inside TMN – …on the other hand… you can view it like this… (This industry: part II)
Another opinion piece, this time from Northstream Consulting’s Bengt Nordstrom sums up very well the current situation of the major network equipment manufacturers. Their core markets are retracing and potential new market sectors are problematic. So small cells may supplant but don’t surpass macro radio sales. Where there do appear to be opportunities it is either still unclear how the NEPs can “win” (IoT) or else it threatens to put them into competition with massive IT selling machines (NFV, Cloud).
“We are entering an era in which it’s simply no longer possible for a traditional vendor to run a sustainable business based solely on selling standardized telecoms equipment to mobile network operators.
Telecom vendors must identify and target new markets and revenue sources – but they won’t be alone: in every area of potential new growth, they’ll have to confront well-established global IT players equally keen to address their own future growth challenges. With the market poised in this way, it’s likely that the next wave of consolidation we’ll see will take place between IT and telecom vendors.”