Majority of the 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 remain highly profitable and many mid-size suppliers of
communication semiconductors improved their profitability in 2010-2011
substantially. Is there hope for the rest of the supply chain?
Detailed analysis of economic challenges faced by network operators is
presented in this report. It also examines profitability and long term
strategies of content providers as well as equipment and component
manufacturers. One of the report sections is focused on emerges of equipment
and component suppliers in China and includes brief profiles of several new
entrants.
The 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 following categories: top 3, top
4-6, top 7-10 and the rest, illustrating fragmentation of these market
segments. Data on diversification of top 10 leading suppliers of optical
transceivers presented in the report suggest that majority of component
supplier remain highly specialized. Leading vendors shared confidential sales
data with LightCounting to support this study.
Table of Contents
Table of Contents
Abstract
Executive Summary
Section 1: Major Trends in Telecom and Datacom Markets
Service Providers Continue to Pursue Consolidation Strategies for Growth
Service Providers Are Moving into Cloud Computing
Over the Top (OTT): competitive or Complementary?
Datacenters Are Scaling Up
The New Datacenter Architecture Is Flat
Internet Companies Build Datacenters Differently Than Telcos
Service Providers Adopting Transparent Caching in Response to Service
Demands
Section 2: Supply Chain Structure, Vendor Profitability and consolidation
Profitability Imbalance Across the Supply Chain
Content providers benefit from free access to networking infrastructure
Equipment suppliers Continue to Restructure
Optical component and Module vendors are still searching for a path to
sustainable profitability
IC chip suppliers are back in the back
Section 3: Changing Landscape of the Optical Transceiver Market
Market Share Structure and Diversification of Vendors
Consolidation Shifts from Horizontal to Vertical
SONET/SDH Market Segment
Ethernet Market Segment
Fibre Channel Market Segment
WDM Market Segment
FTTx Market Segment
Section 4: Rise of Chinese Equipment and Component Suppliers
Huawei Becomes the Dominant Global Telecom Equipment Vendor
ZTE continues to Gain Market Share
FiberHome, a Full-Line Equipment Supplier, Is Growing as well
Alcatel Lucent Shanghai Bell Was the First foreign-Invested Company in
china's Telecom Market
Other Chinese Equipment Vendors
The Emergence of Optical Component and Module suppliers
Challenges and Opportunities Ahead
Appendix A: Summary of Financial Data
Table A1: Annual Revenue reported by top twelve content providers
(Millions of Dollars)
Table A2: Annual Net Margin reported by top twelve content providers
Table A3: Annual Revenue reported by top ten service providers (Millions
of Dollars)
Table A4: Annual Net Margin reported by top ten service providers
Table A5: Annual Revenue reported by leading system vendors (Millions of
Dollars)
Table A6: Annual Net Margin reported by leading system vendors
Table A7: Annual Revenue reported by Communication Semiconductor vendors
(Millions of Dollars)
Table A8: Annual Net Margin reported by communication Semiconductor vendors
Table A9: Annual Revenue reported by publicly traded optical component and
module vendors (Millions of Dollars)
Table A10: annual Net Margin reported by publicly traded optical component
and module vendors
Appendix B: Profiles of Selected Chinese Vendors
Table B1: Revenues of the Top Ten Chinese Optical component and Module
Vendors (Millions of Dollars)
Accelink
ATOP Technology
Eoptolink Technology
Gigalight
HG Genuine
Hi-Optel
HiSense Broadband
Hymax Optoelectronics Inc
InnoLight
O-Net
StarOpto
Sunstar communication Technology
Superxon
WTD
Wuxi-ZTE
Xiamen San-U Opto-electronic Technology
The State of the Optical Communications Industry: Is it Still on a Path to Sustainable Profitability? published by Light Counting in May 30, 2012. This report price starts from US $ 5000.
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