The majority of vendors across the global communication industry continue to search for a sustainable economic model. Network operators have not yet found a solution for improving returns on increasingly expensive investments into networking infrastructure required to support Internet traffic growth. Average profitability of communication equipment manufacturers and suppliers of components remains volatile. There are exceptions. Large companies like Cisco and Intel continue to be highly profitable and many midsize suppliers of communication semiconductors substantially improved their profitability in 2010-2012. Is there hope for the rest of the supply chain?
This report presents a detailed analysis of economic challenges faced by companies throughout the communications supply chain. It examines the profitability and long-term strategies of content providers as well as equipment and component manufacturers. One report section focuses on emergent equipment and component suppliers in China and includes brief profiles of several new entrants.
This report offers an in-depth look at the structure of the optical component and module industry in several market segments, including SONET/SDH, Ethernet, Fibre Channel, WDM, and FTTx. This analysis includes data on market shares of leading vendors sorted into the several categories (top 3, top 4-6, top 7-10, and other vendors), illustrating fragmentation of these market segments. Data on diversification of the top 10 leading suppliers of optical transceivers presented in the report suggest that most component suppliers remain highly specialized. Leading module vendors shared confidential sales data with LightCounting to support this study.