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Recession will weed out weaker mobile network vendors
16 декабря 2008 |
The world's big wireless network equipment makers are all suffering from the downturn, and some will not survive, but there is some hope amidst the gloom, ABI Research said on Monday.
The market's latest whipping boy, Nortel Networks is particularly struggling, although according to ABI's "Mobile Network Vendor SWOT Analysis" study, the Canadian vendor's troubles are largely symptomatic of the market as a whole.
"Nortel is strong when it comes to the enterprise, but recently they have made a lot of investments aimed at winning business from service providers, efforts that have not really taken off because of an unclear strategy and changes in operators' technology choices," said ABI senior analyst Nadine Manjaro in a statement.
"That was an ominous situation, which the global recession has now made more serious," she added.
Worryingly for Nortel, rivals Alcatel-Lucent and Motorola are beginning to improve their positions, ABI reports.
While Nortel's share price has dropped to around the 40-cent mark – the vendor faces delisting from the New York Stock Exchange if it cannot raise its price to the $1 minimum level within six months – Motorola and Alcatel-Lucent are seeing their stock prices rise.
Alcatel-Lucent "is now improving its performance and gaining higher ratings from financial analysts after a corporate revamp and a change of top leadership," ABI said. "Motorola's share price is on the rise too due to re-structuring and shifting focus into stronger segments."
And Sweden's Ericsson is also faring better.
"They're not doing great business, but their share price is still around $8. Their strategies are clear, and they benefit greatly from their emphasis on providing managed services as well as hardware," said Manjaro, noting that "it's about decisiveness and execution".
"All vendors are struggling, but some more than others, and this market will weed out the weaker players," she concluded.
Источник: Total Telecom
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