Performance of Telecom suppliers in 2006
The Net Revenue of the 10 bigger World Telecommunication Suppliers reached around US$ 230 Billion in 2006 with growth of 19% in relation to 2005.
Note: Revenue in telecommunications in the year chose by the company: Cisco (July), Lucent and Siemens (September), Nec (March) and december to the rest. Revenues of Alcatel-Lucent, Nortel and Nec in 2006 are estimated by Teleco, as well as the conversions to US$ of reported values in other money. The results of Alcatel in 2006 include Lucent (Alcatel-Lucent). Since 2005 the revenue of Siemens doesn't include the area of cell phones sold to BenQ.
Nokia and Motorola kept the world leadership in Net Revenue with the growth of 33% and 22% respectively in 2006.
Consult: Vendors Telecom.
Cell Phones Market
The leadership of these companies is resulted in part by the transformations occured in the market of telecommunication equipments in the last years. With the growth of cellular telephony and networks data, most part of the investments in telecommunication equipments started to be done in the clients equipments and not in the operators network. Nokia and Motorola, World leaders in cell phone's sales, the segment of networks only represent around 18% of 2006 revenue.
Nokia, Motorola, Samsung, Sony Ericsson and LG are the main suppliers of cell phones in the world with 80% of 1 billion cell phones sold in 2006 (more details). In the cell phones market the scale is very important, which focus in some suppliers. You can notice between these suppliers names as Samsung, Sony and LG that are strong in the electronic market of consumption.
With the diffusion of cell phones in underdeveloped countries as China and India, wins the production of low end telephones. Nokia and Motorola have gotten some advantages in this segment. Nokia is strong in the whole world, except in the United States, where Motorola dominates.
In other hand, with 3G and data services as email and Internet access, increase the use of sophisticated cell phones (smartphones). The dispute in this field is incited, also counting on the participation of other players with RIM (Blackberry), Palm and now Apple. Sony Ericsson, that surpassed LG in market share in 2006, has detached in this segment.
Market of networks infrastructure
The dynamism of the telecommunication sector, that request great investments in research and development, and the competition promoted by chinese suppliers with Huawei and ZTE, jointed the main suppliers of telecommunications network. The joint venture between Alcatel with Lucent was concluded in December 2006. Nokia and Siemens are congregating this year its telecommunication networks segments in a new company Nokia Siemens Networks. The leadership of the market of telecommunication equipments is going to be disputed by 4 companies, all of them with revenue superior to US$ 30 Billion in 2006: Cisco, Ericsson, Nokia Siemens Networks and Alcatel- Lucent.
Broad Band and cell phones are the areas of bigger revenue of suppliers. Most part of Cisco's Revenue come from IP networks, being world leader in routers and switches. Although Ericsson the infrastructure to mobile networks represented 70% of its revenue in 2006.
The suppliers of networks infrastructure are being increasing its scope together with the operators providing, beyond equipments and systems, operation services and maintenance. The services represented 20% of Ericsson's revenue in 2005.
In Brazil, Abinee esteem in R$ 19 Billion (US$ 8.9 Billion) the revenue of the telecommunication industry in 2006, which represent a growth of 8% in relation to 2005 (More details). This value is 3.9% of the world revenue of the suppliers analyzed in this commentary. Brazil is the center of cell phones production (more details) being Motorola and Nokia the most exported (more details).
You could ask :
Commentaries
Please feel free to send us a commentary, click on: teleco@teleco.com.br
Let us know if you authorize the publication.
Note: The opinions expressed in commentaries are exclusive responsability of the author.
| Workshop |
