tbr lte market share 2012 review

TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

Vendor LTE Market Share 2012 Review and 2013 Forecast

Technology Business Research (TBR) Webinar Series

7.16.13

TBR

2 TBR Webinar Series | 7.16.13 | www.tbri.com | ©2013 Technology Business Research Inc.

Chris Antlitz Networking & Mobility Practice Analyst Email: [email protected] Twitter: @chrisNMP

Webinar Presenter

mailto:[email protected]


TBR


Key Questions Addressed

Key Questions Addressed

Which vendors led the LTE market, in revenue, in 2012, and what drove their success?

What will the LTE market share picture look like in 2013 once operators in more regions start deploying LTE networks?

What is the LTE market opportunity for telecom vendors beyond 2013?

TBR


TBR’s Networking & Mobility Practice covers telecom operators and network vendors on a global basis

NMP Overview

Networking and Mobility Practice Portfolio

Operator Research

Telecom Operator

Enterprise Operator

Vendor Research

Telecom Vendor

Services (TIS)

Benchmark Addressable Market Forecast (AMF)

Margin Benchmark

Equipment Software

Enterprise Networking

Services (NIS)

Equipment & Software

TBR


TBR conducts extensive research on telecom vendors, which enables us to obtain unique insights to help clients make business decisions

NMP Overview – Telecom Vendors

Telecom Vendor

Services (TIS)

Benchmark

Addressable Market Forecast (AMF)

Margin Benchmark

Equipment Software

• Telecom Vendor Benchmark

• Telecom Infrastructure Services (TIS) Benchmark

• Expanded TIS Benchmark

• TIS Global AMF • TIS North America AMF

• TIS Margin Benchmark

Telecom Vendor Reports • Accenture • Alcatel-Lucent • Cisco • Ericsson • HP • Huawei • IBM • Juniper • Samsung • NSN • ZTE

• Telecom Software Benchmark

TBR


Vendors most exposed to Tier 1 operators in North America, Japan and South Korea took a commanding lead in LTE market share in 2012

Market Share Data

2012 LTE Market Share

Forecasted 2013 LTE

Market Share

YoY Change

Basis Points

Ericsson 32.1% 30.3% -176

NSN 20.4% 20.1% -31

Huawei 13.7% 15.1% 141

Alcatel-Lucent 12.3% 13.1% 78

Samsung 7.0% 8.3% 127

Fujitsu 6.3% 4.5% -183

NEC 4.9% 3.5% -149

ZTE 3.4% 5.3% 193

SOURCE: TBR ESTIMATES AND COMPANY REPORTED DATA

Note: Market share is based on LTE revenue, which includes LTE RAN and core equipment.

TBR

TBR


Market shares will start to shift once China Mobile’s deployment ramps up in late-2013 early 2014

Pie Charts

SOURCE: TBR ESTIMATES AND COMPANY REPORTED DATA SOURCE: TBR ESTIMATES AND COMPANY REPORTED DATA

32.1%

20.4%13.7%

12.3%

7.0%

6.3%

4.9%3.4%

2012 LTE Market Share

Ericsson

NSN

Huawei

Alcatel-Lucent

Samsung

Fujitsu

NEC

ZTE

TBR

30.3%

20.1%15.1%

13.1%

8.3%

4.5%

3.5%

5.3%

Forecasted 2013 LTE Market Share

Ericsson

NSN

Huawei

Alcatel-Lucent

Samsung

Fujitsu

NEC

ZTE

TBR

TBR


Ericsson leads the LTE market by a wide margin, but rivals Huawei, ZTE and Samsung will gain ground in 2013

LTE Market Share Dashboard

Vendor 2012 Share

2013 Forecast

3 Year Trend

TBR Assessment

Ericsson 32.1% 30.3% Massive LTE contracts with nearly all Tier 1 operators in North America, Japan and South Korea provided huge head start over the competition.

NSN 20.4% 20.1% Acquisition of Motorola Networks helped NSN secure large portions of LTE contracts with T-Mobile USA, BCE, Telus and all six of the Tier 1 operators in Japan and South Korea.

Huawei 13.7% 15.1% Inability to sell to Tier 1 operators in U.S. hindered Huawei from staking early leadership position in LTE, but expect strong gains as operators in China and Europe ramp up investment.

Alcatel-Lucent 12.3% 13.1% ALU depends on AT&T, Verizon, and Sprint for majority of LTE revenue. ALU is struggling to gain traction outside of core customer base.

Samsung 7.0% 8.3% Slowly gaining momentum, especially with Tier 1 accounts outside of core U.S. and South Korean markets. Expect outperformance in Europe and supplantation of incumbents.

Fujitsu 6.3% 4.5% Dependent on DoCoMo for bulk of LTE RAN and EPC sales. No international traction thus far.

NEC 4.9% 3.5% Dependent on DoCoMo and KDDI for nearly all of LTE revenue.

ZTE 3.4% 5.3% Slow to build momentum, but will gain substantial share once Chinese operators ramp up roll outs.

TBR


Non-Japan based APAC vendors will gain share once emerging market and European operators ramp up LTE investment

Key Takeaways

Key Takeaways

Japan and South Korea post-peak following completion of coverage buildout – will impact Japanese vendors the most

Competition and M&A in North America spurs additional spend on LTE

Ericsson takes commanding lead, but share will come under pressure going forward – involvement in network modernizations in Europe critical to success

China Mobile’s $6.7+ billion LTE investment will reweight shares

TBR


TBR Networking & Mobility Practice Syndicated Topics 2Q13: Telecom Vendors

Vendors are stepping out of their comfort zones and entering adjacent markets, such as enterprise networking and IT, to grow revenue

Quarterly Topics TBR Discussions Related Reports

NFV SDN SON Cloud

• Determine which vendors are the early leaders.

• Evaluate vendor road maps for these nascent technologies.

• Determine the impact these new technologies will have on the network infrastructure and services market.

Alcatel-Lucent, Cisco, Ericsson, Huawei, NSN, Juniper, ZTE

LTE

• Identify which vendors are leading in LTE revenue and contract count.

• Monitor status of LTE deployments globally.

• Assess vendor LTE strategies.

Alcatel-Lucent, Cisco, Ericsson, Huawei, NSN, Samsung, ZTE

Enterprise Solutions

• Monitor and benchmark progress vendors are making in pushing into the enterprise networking market.

• Identify leaders and laggards in the enterprise networking market across a broad list of financial, go-to-market and resource management metrics.

• Analyze and size market opportunity for network vendors in the enterprise.

Alcatel-Lucent, Cisco, Ericsson, Huawei, Juniper, Samsung, ZTE

Consolidation

• Track developments in vendor M&A, and identify which companies will rely on acquisitions to enhance portfolios or enter new markets.

• Analyze the impact of operator consolidation on the telecom infrastructure and services markets as well as the enterprise networking market.

Cisco, Ericsson, Huawei, IBM, Juniper

TBR


Chris Antlitz

Analyst, Networking and

Mobility Practice

[email protected]

@chrisNMP

Questions?

For further information, please contact:

Kate Price James McIlroy Practice Manager, Networking & Mobility Vice President of Sales [email protected] [email protected]

Q & A

@TBRinc

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TBR

T EC H N O LO G Y B U S I N ES S R ES EAR C H , I N C .

About TBR Technology Business Research (TBR) is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, networking equipment, wireless, portal and professional services vendors. Serving a global clientele, TBR provides timely and accurate market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today.

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tbr lte market share 2012 review

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