The telecom infrastructure developer's market is witnessing a
technical change globally. So far the main thrust of the
communications service providers was towards advanced hardware,
which would enable them to attain enhanced speed, scalability and
However, recent developments suggest that operators are
gradually shifting from hardware centric growth model to a
IT/software centric business model. The primary reason behind
this is the significant growth of cloud-based virtual
Growth of software-defined networking (SDN) and network
function virtualization (NFV) encouraged newly emerging digital
media companies to invest heavily in the communications
infrastructure market. SDN provides customers higher bandwidth
utilization, higher reliability and reduced capital spending.
NFV is designed to consolidate and deliver the networking
components needed to support a fully virtualized infrastructure -
including virtual servers, storage and even other networks.
It utilizes standard IT virtualization technologies.
As the internal dynamics of telecom vendor market is shifting
towards software centric approach, the traditional large network
hardware developers are facing severe competitive threat. Some of
LM Ericsson AB
), Nokia Solutions and Networks (NSN), which is a subsidiary of
), Huawei Technologies and ZTE.
On the other hand, major next-generation IT/software telecom
Juniper Networks Inc.
), Ciena Corp., and ConteXtreme.
A recent report by research firm Ovum predicts that the
capital expenditure of carriers will reach around $367 billion in
2019. While the U.S. is expected to maintain its speed of telecom
growth in the near term, most of the impetus will come from the
emerging markets such as China, India, Brazil and Russia.
Carrier expenditures have increased in Japan and even major
telecom operators of the Western Europe, which is the
economically most vulnerable region, have also raised their
budget to some extent.
ERICSSON LM ADR (ERIC): Free Stock Analysis
JUNIPER NETWRKS (JNPR): Free Stock Analysis
NOKIA CP-ADR A (NOK): Free Stock Analysis
VMWARE INC-A (VMW): Free Stock Analysis
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