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China's Telecom Vendors Poised for a Run at Global Markets, New Report Finds17 May 2005
China's top telecom equipment vendors are now making aggressive moves into the international marketplace, posing a potentially huge challenge to incumbent suppliers of wireline and wireless communications equipment, according to a major new report released today by the subscription research service Light Reading Insider (http://www.lightreading.com/insider), the paid research division of Light Reading Inc.
The report, China's Big Three Vendors Take On the World, analyzes the financial and market positions of China's top telecom vendors - Huawei Technologies Co. Ltd., UTStarcom Inc. (Nasdaq: UTSI - News), and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763) -- offering deep insight into which market sectors those vendors are most likely to target, and which incumbent vendors are most vulnerable.
The report evaluates the product positioning of China's Big Three across a wide spectrum of telecom equipment categories: wireless, wireline, and optical networking, as well as datacom and handsets. It analyzes the internationalization strategies of Huawei, UTStarcom, and ZTE, including their target regional markets and technologies, and assesses the financial performance of these vendors and compares them with their leading Western counterparts.
"If any doubts remained, Huawei's recent contract wins with BT demonstrate that the Chinese vendors are now a major force in the telecom equipment industry," notes contributing analyst James Crawshaw, author of the report. "While China's vendors have typically had initial success in the developing countries of Asia and Africa, increasingly they are looking to compete on the Western vendors' home turf."
Key findings of the report include:
* Low labor costs allow Chinese manufacturers to set prices 10 to 15
percent lower than their Western counterparts without impairing profit
margins - but this advantage is likely to erode over time as Chinese
vendors add employees in the West.
* Huawei appears well positioned to take market share in developed
regions, particularly in DSLAMs, routers, and optical networking.
* ZTE appears less well placed to take share in Western markets but has
strong potential in developing countries, particularly in wireless
networking.
* UTStarcom has a relatively strong position in IP DSLAMs, but the
company may struggle to expand its non-China business.
This 36-page report is packed with nearly three dozen charts and graphs that detail the market and product positioning of China's Big Three, including hard-to-find revenue data broken out by product sector and regional markets. The report breaks significant new ground in quantifying and assessing the financial positions held by China's telecom vendors in terms of revenues, labor and R&D costs, and product portfolio value.
China's Big Three Take On the World is available as part of an annual subscription (12 monthly issues) to Light Reading Insider, priced at $1,350. Individual reports are available for $900. To subscribe, please visit: http://www.lightreading.com/insider.
For additional information, to request a free executive summary of the report, or for details of multi-user licensing options, please contact:
Jeff Claudino
Sales Manager, Insider Research Services
619-229-9940
claudino@lightreading.com
Press/analyst contact:
Dennis Mendyk
Managing Director, Heavy Reading
201-587-2154
mendyk@heavyreading.com
About Light Reading Inc.
Founded in 2000, Light Reading Inc. (http://www.lightreading.com) is the ultimate source for technological and financial analysis of the communications industry; it leads the media industry in terms of traffic, content, and reputation. It reaches an extensive audience of executives and technologists within the telecommunications and enterprise networking communities, as well as the financial/industry analysts and investors that track these sectors.
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Source: Light Reading Insider
Source: PR Newswire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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