Network Equipment Provider

Network Equipment Provider

Network Equipment Providers (NEPs) are companies that provide communication solutions to Service Providers like fixed or mobile operators as well as to Enterprise customers. If you place a call on your mobile phone, surf the internet, join a conference call or watch a video on demand through IPTV (internet protocol TV) – it is all NEPs technologies that are enabling such kind of services. NEPs are literally influencing lives of billions of people around the world. The history of the NEPs goes even back to the mid of the 19th century when the first telegraphs networks have been set up. Some of these players still exist today.

Some of the most important communication solutions that NEPs provide can include the following:

  • Mobile networks like GSM (Global System for Mobile Communication), EDGE (Enhanced Data Rates for GSM Evolution) or GPRS (General Packet Radio Service). These kind of networks are typically also known as 2G and 2.5G networks. The 3G mobile networks are based on UMTS (Universal Mobile Telecommunication Standard) which allows much higher data rates than 2G or *5G.
  • Fixed networks which are typically based on PSTN (Public Switched Telephone Network).
  • Enterprise networks, like Unified Communication infrastructure
  • Internet infrastructure, like routers and switches

Competitive landscape

The key players per type of customer segment are as follows:

Majority of revenues from Service Providers:

  • Alcatel-Lucent
  • Ericsson
  • Huawei
  • Juniper
  • NEC
  • Nokia-Siemens
  • Nortel
  • ZTE
  • Emerson Network Power

Majority of revenues from Enterprise customers:

  • Avaya
  • Cisco
  • Motorola
  • Siemens Enterprise Communications

The NEPs have recently undergone a significant consolidation or M&A activity, for example the joint venture of Nokia and Siemens (Nokia Siemens Networks), the acquisition of Marconi by Ericsson, the merger between Alcatel and Lucent and many numerous acquisitions by Cisco.

A look at the financial performance of these players according to the segment they serve creates a diverse picture:

Power balance in the NEP ecosystem

NEPs face high pressure from old & new rivals and a stronger, more consolidated customer base.

Threat of New entrants:
- Growing importance software applications has led to the entry of new players: IT solution providers like System integrators and other ISVs. (For some NEPs, SIs are being considered as competitors for selected network services i.e. application, services and control layers of the network)
- In the area of managed and hosted services, NEPs are likely to face competition from new players like Google due to lower entry barriers

Bargaining Power of Suppliers:
- Increasing standardization and commoditization of network components leads to more competition among component suppliers, thus lowering their bargaining position.
- Overcapacities have led to lower bargaining power of Semiconductor suppliers
- As more standardized networks components are expected to be used for NGNs, a shift in the current supplier structure may balance the bargaining between suppliers and NEPs

Bargaining Power of Buyers:
- Consolidation among communication service providers due to convergence leads to greater dependence on a few large clients, which means higher bargaining strength of customers
- Due to pressures on their profitability, service providers are increasingly looking at lowering their operating costs and capital expenditures (lowering cost per subscriber), and this is putting pressures on NEPs margins.
- Enterprises increasingly demand end-to-end solutions through a single vendor for their Unified Communication needs

Threat of Substitution:
- Switch from PSTN to Next-Generation Network
- Increasing use of standardized network components (COTS) compared to more proprietary equipments
- Software to increasingly replace traditional network components

External links

Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Network congestion avoidance — is a process used in computer networks to avoid congestion.The fundamental problem is that all network resources are limited, including router processing time and link throughput. Eg.: *today s (2006) Wireless LAN effective bandwidth throughput… …   Wikipedia

  • Network-neutral data center — Network neutral data centers are commercial buildings (or carrier hotels) where multiple telecommunication carriers can house their network equipment for the primary purpose of accessing and developing network connections with one another.… …   Wikipedia

  • Network congestion — In data networking and queueing theory, network congestion occurs when a link or node is carrying so much data that its quality of service deteriorates. Typical effects include queueing delay, packet loss or the blocking of new connections. A… …   Wikipedia

  • Provider Backbone Bridge Traffic Engineering — (PBB TE) is an approved telecommunications networking standard, IEEE 802.1Qay 2009.[1] PBB TE adapts Ethernet technology to carrier class transport networks. It is based on the layered VLAN tags and MAC in MAC encapsulation defined in IEEE… …   Wikipedia

  • Network termination 1 — (NT1): In Integrated Services Digital Networks (ISDN), a functional grouping of customer premises equipment that includes functions that may be regarded as belonging to OSI Layer 1, i.e., functions associated with ISDN electrical and physical… …   Wikipedia

  • Network computer — (abbreviated NC) is a trademark of Oracle Corporation. It was used (c. 1996 c. 2000) by Oracle, and an alliance of businesses including Sun and Acorn, to mean a diskless desktop computer or in some cases a set top box [… …   Wikipedia

  • Network Norway — is one of the owners of the [Norwegian] mobile network operator Mobile Norway. The other owner is Tele2, both having equal shares of 50 %. Mobile Norway is the seventh Norwegian company to win a license to operate a commercial mobile network …   Wikipedia

  • Network neutrality — This article is about the general principle of network neutrality. For its specific application to Canada, see Network neutrality in Canada. For its application to the U.S., see Network neutrality in the United States. Network Neutrality Related… …   Wikipedia

  • Network switch — A network switch or switching hub is a computer networking device that connects network segments. The term commonly refers to a multi port network bridge that processes and routes data at the data link layer (layer 2) of the OSI model. Switches… …   Wikipedia

  • National Science Foundation Network — The National Science Foundation Network (NSFNET) was a program of coordinated, evolving projects sponsored by the National Science Foundation (NSF) beginning in 1985 to promote advanced research and education networking in the United States.[1]… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”