Alcatel Market Opportunities, Market Forecasts, and Market Strategies,
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1 Alcatel Market Opportunities, Market Forecasts, and Market Strategies, Alcatel Market Assessment Picture by Susan Eustis Mountains Of Opportunity Expand To The Heartland of Data Centers
2 about the company WinterGreen Research Founded in 1985, provides strategic market assessments in software, communications products, communications services, and advanced technology. Reports focus on opportunities to expand existing markets or develop new markets. The reports access corporate positioning, market strategies, and product marketing opportunities. Reports evaluate the impact of new technologies. Reports assess the strategies and positions of leading participants. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years. Research Methodology
3 WinterGreen Research authors use a structured, consistent, and detailed research approach. The methodology supports an analytical approach to market research. In depth comparisons are made of many aspects of the market. Data relating to Industry segments is developed to permit presentation of forecasts and market share positioned to have substantive value. Research has been automated using automation of interactive surveys that implement delta trend analysis and instant messaging in combination with . Automation is made possible because of a proprietary engine that implements multi-layered cell based analysis. Modular systems support dynamic computing that use a graphical configuration engine to reach more people in a research modality. Full spectrum research and information services, including market reports, customized research, and customer interviewing are available, reports and research are positioned to provide strategic value to industry participants, strategic planners, and product managers. New systems combine sales tools and independent industry analysis, seeking to leverage the expertise of the sales force and combine it with the skepticism of the analysts to provide accurate return on investment analysis. CHECK OUT THESE KEY TOPICS
4 Alcatel Telecommunications Market Driving Forces Index Sales of Alcatel Market Shares Telecommunications Market Forecasts Network Service Needs Increasing Average Revenue Per User (ARPU) Impact of Competition Market Growth Dynamics Converged Voice And Data Networks Alcatel Positioning Worldwide Telecommunications and Communications Equipment Market Forecasts, Shipments Wireless Telecommunications and Communications Equipment Market Forecasts Alcatel Shipments By Segment Alcatel Regional Market Shares Blue Tooth Much more... OPPORTUNITY ABOUNDS WinterGreen Research, Inc. Lexington, Massachusetts
5 Alcatel Market Opportunities, Market Forecasts, and Market Strategies, Alcatel is uniquely positioned to address the evolving communications networks. Driving forces in communications and telecommunications markets relate to the rapid adoption of mobile communications technology and infrastructure. The convergence of communication onto one IP based network infrastructure has an impact on market, technology, and competitive forces. The convergence of DWDM transport and optical access to the home is a further market force. Global information and communications technology is achieving a revolution in its potential impact. In the year 2005, telecommunications has become the engine of the global economy, providing a market thrust for supply chain efficiency, flat fee worldwide voice communications, and exchange of information between partners. The Alcatel 7750 service router delivers Ethernet connectivity smoothly and securely between organizations with multiple LAN sites. The simplicity and ubiquity of Ethernet make it an easy service to roll out, immediately enabling enterprises a fully connected, anywhere-to-anywhere network. By leveraging the service router MPLS features, a national VPLS service that is highly available and responds to the bandwidth needs required by the customer is possible. VPLS addresses enterprise customer requirements by enriching VPN service mix with Ethernet. Reducing customer churn is a priority. Giving service providers the tools to stay ahead of customer demand is what Alcatel brings to the table. Alcatel IP activities relate to technology and deployment with VPLS, thus providing a viable solution for managed communications services that increases revenue, reduces costs and ultimately improves customer satisfaction. Alcatel VPLS solution permits businesses to connect multiple sites as if they were one large local area network. They can exchange data without the expensive, onerous requirement of building a new physical network. The Alcatel telecommunications markets have shifted to become communications markets. This is the result of convergence of voice and data networks to digital transport of voice, video, and data signals. Transport over existing TDM infrastructure is being replaced with transport over IP infrastructure. The move to digital signal transport has bought significant diversity to the markets. Companies that failed to embrace new technology have had significant market declines. Alcatel has had enormous success, dominating digital subscriber loop technology (DSL). Alcatel is positioned to leverage its presence in access DSL markets to bring systems integration and new services for carriers. Alcatel is focused on the continued enhancement of its IP portfolio in order to meet the diverse needs of its customer base and ensure high customer satisfaction. Alcatel is a leading provider of IP solutions. 70 service providers in 30 countries have selected the Alcatel IP portfolio. Worldwide telecommunications service provider equipment market forecasts indicate that markets at $2.2 billion in 2004 are anticipated to reach $25.5 billion by Strong growth is anticipated as
6 wireline networks are used to provide voice over IP, video conferencing, supply chain business process information transport, and general Internet protocol signal transport.
7 Alcatel Market Opportunities, Market Forecasts, and Market Strategies, ALCATEL EXECUTIVE SUMMARY Alcatel Telecommunications Market Driving Forces Index Sales of Alcatel Market Shares Telecommunications Market Forecasts Table of Contents ES-1 ES-1 ES-4 ES-5 1. TELECOMMUNICATIONS AND COMMUNICATIONS MARKET DESCRIPTION AND MARKET DYNAMICS Network Service Needs Network Service Solutions Enterprise Network Services Market Description Converged Voice, Data, And Video Using Internet Protocol (IP) Standards Technologies: IP Telephony Broadband Voice Next Generation Network (NGN) Value-Added Services Voice Over IP (VoIP) Service Providers Web GUI Charging Micro Payments Increasing Average Revenue Per User (ARPU) Improved Quality Of Service Reduced Capital And Operational Costs Enhanced Operability Impact of Competition Market Growth Dynamics Converged Voice And Data Networks Wireless Networks New Generation Of Wireless Systems Provides Flexibility User Experience Protects Investments Increases Efficiency Integrated Management Tools Cost-Effective Capacity And Coverage Multimedia Markets IP Telephony Service Solutions Web Services Strategies To Improve Performance Customer Financing Arrangements Market Makers Demand For Total Solutions Marketing Globally Internet Traffic 1-41
8 2. ALCATEL MARKET SHARES AND MARKET FORECASTS Telecommunications Market Driving Forces Alcatel Positioning Alcatel DSL Telecommunications Provider Shipments Communications Equipment Segment Analysis Worldwide Telecommunications and Communications Equipment Market Forecasts, Shipments Telecommunications Equipment Provider Market Forecasts Worldwide Voice Over IP Market Forecasts Worldwide MultiService ATM / IP Switch Market Forecasts Worldwide Telecommunications Blade Server Market Forecasts Worldwide Softswitch Call Control Market Forecasts Worldwide Bandwidth Management Market Forecasts Worldwide Sonet Aggregation Equipment Market Forecast Worldwide Dense Wavelength Division Multiplexing (DWDM) Equipment Market Forecast Worldwide Digital Subscriber Loop (DSL) and Fiber to the Home (FTH) Equipment Market Forecasts Worldwide Core Communications Service Provider Ancillary -Equipment Market Forecast Wireless Telecommunications and Communications Equipment Market Forecasts Worldwide Wireless Base Station Market Forecasts Worldwide Wireless Infrastructure Market Forecasts Worldwide Wireless Handset Market Forecasts Worldwide Telecommunications and Communications Enterprise Equipment Worldwide PBX Enterprise Voice Telecommunications Equipment Market Forecasts Worldwide IP to TDM Enterprise Telecommunications and Communications Equipment Market Forecasts Worldwide TDM to IP Enterprise Telecommunications and Communications Equipment Market Forecasts Worldwide IP PBX Enterprise Telecommunications and Communications Equipment Market Forecasts Worldwide Digital Subscriber Loop (xdsl) and Fiber to the Building (FTC) Enterprise Market Forecasts Worldwide Frame Relay Enterprise Telecommunications and Communications Equipment Market Forecasts Worldwide Telecommunications Service Provider IP Equipment Market Forecasts Principal Competitive Factors In Telecommunication Markets Market Growth Forces Fast Pace Of Adoption Of Internet Commerce Teleconferencing And Video Telephony Global Communications Networking Industry In Telecommunications Industry Adjustment In Restructuring Telecommunications Economic Implications Networking Business Acquisitions 2-63
9 2.12 Alcatel Shipments By Segment Alcatel Regional Market Shares Alcatel Alcatel Leading NGN Solutions Provider In China Alcatel Chinese Market Strengths Alcatel Contract With Volga Telecom Leading Russian Regional Operator ALCATEL PRODUCT DESCRIPTION Alcatel Alcatel Service Provider Carrier Products Alcatel Bridged Ethernet Alcatel 7302 Intelligent Services Access Manager (ISAM) Alcatel IP Solution Virtual Private LAN Service Alcatel Signaling Solutions: Alcatel IP portfolio Alcatel High Availability Service Router And Service Aware Manager Alcatel Technologies Mobile Communications Alcatel 7750 Service Router Alcatel 7670 Routing Switch Platform Alcatel 7470 Multiservice Platform Alcatel 7270 Multiservice Concentrator Alcatel 5020 CSC and Alcatel 8690 OSP Alcatel Open Media Suite OMS Value Proposition Alcatel Technologies: MPLS and Converged Networks Alcatel G-Plus BroadVision Alcatel Technologies: OPEN Next Generation Networks Alcatel Technologies: OSS Automation Alcatel DSL IP Centrex / Hosted Voice Alcatel Push-To-Talk Alcatel UMTS Radio Network Alcatel Evolium 9100 Multistandard Base Station Alcatel Mobile Phones Alcatel 3630 MainStreet Primary Rate Multiplexer Alcatel 5020 Softswitch Platform Alcatel Genesys Telecommunications Laboratories Voice Platform Alcatel Broadband Networking Technologies: Multimedia Contact Center Alcatel Enterprise Telecommunications Products Alcatel Virtual Private LAN Service Alcatel Multipoint Ethernet Alcatel Wireless LAN Switches Alcatel Small And Medium-Sized Business (SMB) Portfolio Alcatel SMB solutions Alcatel Railway Solutions Alcatel Transport Communications For Urban And Main Line Rail Alcatel Agent Development And Productivity Alcatel Comprehensive IP Multimedia Subsystem Advanced TCA Integration Alcatel Solutions Use Sun Carrier Grade Server And Operating System Technology Alcatel OmniPCX Office & Enterprise Alcatel Enterprise Technologies: Broadband Entertainment Solutions Alcatel OmniPCX Enterprise 3-43
10 OmniPCX Enterprise Summary Specifications Alcatel Integration and Services Activities Alcatel Eterprise Hierarchical Services Provider-Managed VPN Services Enterprise Network Services with VPLS Government Service Enterprise Alcatel Financial Institution Positioning Alcatel Healthcare Sector Positioning Alcatel Retail Sector Positioning Alcatel Satellite Systems Alcatel And Finmeccanica Satellite Systems Venus Express Spacecraft Alcatel ESA Galileo Program Financing ALCATEL COMPANY ORGANIZATION AND STRATEGY AND TECHNOLOGY Alcatel Organization Alcatel CTI Technology Advanced TCA Alcatel Major Research And Development Centers Open Standards Service Oriented Architecture (SOA) IBM Service Oriented Architecture (SOA) SOA Business Challenge IT Imperative Service-Oriented Architecture And Relevant Standards XML Integration Engines Leverage XML Processing XML Standards XML Role In Application Topology XML Meets The Integration Challenge XML Standard Communication Language Web Services Protocols IP Within CDMA Specific Absorption Rate (SAR) Of A Mobile Phone Specific Absorption Rate (SAR) Standards Mobile Phones Meet Requirements For Exposure - To Radio Waves Bluetooth GPRS EGPRS (EDGE) EDGE Connects With Speed Seamless Network Flexible 3G deployment Retention of GSM subscribers Multimedia Messaging Service Mobile Video Presence Push to Talk ALCATEL COMPANY PROFILE Alcatel Alcatel Positioning Alcatel Market Issues Alcatel Multiservice Aggregation Alcatel Broadband Access 5-8
11 5.1.5 Alcatel-To-End Communications Solutions Alcatel VND Division Alcatel Net Sales Third Quarter Alcatel Fixed Communications Third Quarter 2005 Revenues Alcatel Mobile Communications Third Quarter 2005 Revenues Alcatel Private Communications Third Quarter 2005 Revenues Alcatel Geographical distribution of sales: Alcatel / BT Alcatel Customers Alcatel Net Sales Alcatel Third Quarter 2004 Revenue Alcatel Fixed Communications Alcatel Mobile Communications Alcatel Private Communications Alcatel Third Quarter 2004 Regional Revenue Third Quarter 2003 Regional Revenue Alcatel Participation In Communications Network Equipment Markets Alcatel Metro DWDM Alcatel and Optics Alcatel Genesys Telecommunications Alcatel / Genesys 5-35 List of Tables and Figures Table ES-1 Customization Of Telecommunications Infrastructure Equipment Figure ES-2 Index Sales of Top Ten Telecommunication Companies Figure ES-32 Top Ten Telecommunication Market Forecasts, Table Network Systems Functions Table Telecommunications Market Shifts Table Change In Telecommunications Equipment Markets Table Response To Change In Telecommunications Equipment Markets Table Service Provider Build-Out Of The Next Generation 3G Systems Table Factors Impacting Build-Out Of 3G Wireless Infrastructure Table Factors Impacting Implementation Of 3G Wireless Table Wireless IP Network Benefits Table Key Benefits Of Multimedia Solutions Table Strategies To Improve Telecommunication Equipment Company Performance Table
12 Top Ten Telecommunication Providers As Market Makers Table Top Ten Telecommunications Equipment Provider Market Strategies Table Top Ten Telecommunications Equipment - Provider Strategies To Adapt To Changing Markets Table Marketing Globally Table Customization Of Telecommunications Infrastructure Equipment Figure Top 10 Telecommunications Provider Shipments, Table Top Ten Communications Equipment Provider Shipments and Services, Figure Indexed Sales of Leading Telecommunications Equipment Suppliers, Figure Indexed Sales of Selected Leading Telecommunications Equipment Suppliers, Table Selected communications Company shipments, Figure Communications Equipment Company Market Segments, Shipments, Dollars, 2004 Figure Communications Wireless Equipment Company Market Segments, 2004 Figure Communications Equipment Market Segments, 2004 Figure Communications Equipment Company Service Provider Core Infrastructure, Access, and Transmission Shipments, Dollars, 2004 Table Communications Wireless Handsets, Wireless Infrastructure, Wireline, and Enterprise Telecommunications Shipment Forecast By Segment, Dollars, Figure Communications Equipment Market Forecasts, Shipments, Dollars, Table Worldwide Telecommunications and Communications Wireless Handsets, Wireless Infrastructure, Wireline, and Enterprise Telecommunications
13 Shipment Forecast By Segment, Dollars, Figure Communications Equipment Company Market Forecasts, Shipments, Dollars, Table Worldwide Telecommunications and Communications Wireless Handsets, Wireless Infrastructure, Wireline, and Enterprise Telecommunications Shipment Forecast By Segment, Dollars, Figure Worldwide Voice Over IP (VoIP) Market Forecasts, Shipments, Dollars, Figure Worldwide Multiservice ATM/IP Switch Market Forecasts, Shipments, Dollars, Figure Worldwide Telecommunications Blade Server Market Forecasts, Shipments, Dollars, Figure Worldwide Softswitch Call Control Market Forecasts, Shipments, Dollars, Figure Worldwide Bandwidth Management Market Forecasts, Shipments, Dollars, Figure Worldwide Sonet Aggregation Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide Dense Wavelength Division Multiplexing (DWDM) Market Forecasts, Shipments, Dollars, Figure Worldwide Digital Subscriber Loop (DSL) and Fiber to Home (FTH) Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide Core Communications Service Provider Ancillary Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide Telecommunications and Communications Wireless Equipment Market Forecasts, Shipments, Dollars, Table Communications Wireless Handsets Equipment Shipment Forecast By Segment, Dollars, Figure Worldwide Wireless Base Station Market Forecasts, Figure Worldwide Wireless Infrastructure Market Forecasts, Figure Worldwide Wireless Handset Market Forecasts,
14 Figure Worldwide Telecommunications and Communications Enterprise Equipment Market Forecasts, Shipments, Dollars, Table Communications Enterprise and Vice Over IP Router Equipment Shipment Forecast By Segment, Dollars, Figure Worldwide PBX Enterprise Voice Telecommunications Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide IP to TDM Enterprise Telecommunications and Communications Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide TDM to IP Enterprise Telecommunications and Communications Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide IP PBX Enterprise Telecommunications and Communications Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide Digital Subscriber Loop (xdsl) and Fiber to the Building (FTC) Enterprise Telecommunications and Communications Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide Frame Relay Enterprise Telecommunications and Communications Equipment Market Forecasts, Shipments, Dollars, Figure Worldwide IP Voice / Multimedia Router Enterprise Telecommunications and Communications Equipment Market Forecasts, Shipments, Dollars, Table Principal Competitive Factors In Telecommunication Markets Table Issues Relating To Change Brought By Broadband Communications Table Aspects Of Networking Business Acquisitions Figure Worldwide Telecommunications and Communications Equipment Market Forecasts, Shipments by Segment, Percent, Figure Worldwide Telecommunications and Communications Equipment Market Forecasts, Shipments by Segment, Dollars, Figure
15 Top Ten Telecommunications and Communications Equipment Provider Market Shares, 2004 Table Communications Equipment Provider Shipments By Segment, Percent, 2004 Table Alcatel Regional Market Shares, 2004 Table Alcatel Chinese Strengths Table Alcatel Chinese Positioning Table Key Alcatel Projects Funded Or Subsidized By Chinese Government Table Chinese Local Manufacturing Contribution To Alcatel Group Table Alcatel China Wireless Partner Presence Table Alcatel China Wireless Local Presence Table Alcatel Chinese Fixed Market Participation Table Alcatel Regional Market Shares, 2004 Table Alcatel Signaling Solutions Table Alcatel Open Media Suite OMS Value Proposition Table Alcatel Technologies : MPLS and Converged Network Functions Table Alcatel OPEN Strategy Table Alcatel Technologies : OSS Automation Portfolio Components Table Alcatel DSL Supplementary Services Table Alcatel OmniPCX Enterprise Features and Benefits Table Alcatel Omni PCX Software and Hardware Table Alcatel Call Management Features Table Alcatel Reflexes Phones Advanced Services Table Alcatel Switched Ethernet Service Functions Table Alcatel Financial Institution Positioning Table Alcatel Retail Sector Service Requirements
16 Table Alcatel ISDN services Table Alcatel Manager-Assistant Team Features Table Alcatel Teamwork Configuration Features Table Alcatel Standard Telephone Features Table Alcatel OmniPCX Enterprise Regular Telephone Services Table Alcatel Security Table Alcatel And Finmeccanica Satellite Systems And Services Space Ground Segment Target Markets Table Alcatel And Finmeccanica Satellite Systems And Services Space Satellite Operation Segment Target Markets Table Alcatel And Finmeccanica Satellite Systems And Services Network and connectivity Operation Segment Target Markets Table Alcatel And Finmeccanica Satellite Systems Application Areas Table Alcatel Satellite Market Positioning Table Alcatel major R&D centers Table Service Oriented Architecture (SOA) Functions Table Integration Engine XML Processing Functions That Drive Business Process Electronically End-To-End Table IP Wireless Transport Advantages Table Benefits of Push to Talk Table Alcatel Market Issues Table Alcatel Positioning To Address Carrier Issues Table Alcatel Strategic Network Focus Table Alcatel Data Networks Positioning Table Alcatel Metro DWDM Positioning Table Alcatel Terrestrial Optical Networking Strategy
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