Next Generation Communications Blog


Alcatel-Lucent Sees IP PBX Growth

Yesterday, Infonetics Research announced its Q4 (2008) Enterprise Telephony report.


Amid the gloom of the global economic malaise, which in the fourth quarter of 2008 saw the worldwide enterprise telephony market drop 14% sequentially to $2.3 billion, Alcatel-Lucent enjoyed some success.


The Infonetics report illustrated that revenue is down for all types of equipment including pure IP PBX, hybrid PBX, and TDM PBX, and that the main reason for the decline is the lack of new business creation and business expansion courtesy of a weak worldwide economy.


However, in the face of all this negative news, the report also found that Alcatel-Lucent realized PBX equipment revenue gains in Q4, growing 13% sequentially, which far outstrips the year-over-year, overall PBX market growth of 1.1%. The IP PBX segment continues to improve while sales of traditional TDM gear continue to shrink.  Pure IP PBX revenue grew 25% worldwide in 2008.


According to Matthias Machowinski, Directing Analyst, Enterprise Voice and Data, Infonetics Research:


Because of the significantly deteriorating worldwide economic conditions, we expect the overall enterprise telephony market to contract fairly significantly in 2009. Once the world's major economies start growing again, however, a recovery in the PBX market will follow. We expect the market to stabilize in 2010, resume growth in 2011, and hit double-digit annual growth by 2012.



Alcatel-Lucent Remains a Fixture in Fixed Broadband Access

According to a report from Alcatel-Lucent, one out of every three fixed broadband subscribers around the world is served through an access network provided by the company.   Based on information contained in a recent access report from industry analyst Dell'Oro, Alcatel-Lucent shipped 6.1 million lines in the third quarter of 2008, to maintain its leadership in the DSLAM market (34.9% market share), and growing its worldwide installed base to 180 million lines.   Alcatel-Lucent also maintains a market share of 32.6% in IP DSLAM shipments and 34.2% in VDSL shipments.   According to Dell'Oro Alcatel-Lucent retained its number two status in the overall PON market and number one for GPON largely due to its role as primary supplier of GPON to Verizon as well as having a number of other deployments in Europe and Asia.

Alcatel-Lucent to Focus on LTE

As reported on Friday, Alcatel-Lucent plans to undergo some strategic realignment of its core efforts, and among other things it means that there will be less attention on WiMAX in favor of a strategy that calls for a stronger focus on LTE or long-term evolution. Some analysts would think that's merely a prudent reaction to the market.   According to a recent Infonetics report:   ...worldwide sales of fixed and mobile WiMAX equipment and phones/Ultra Mobile PCs dropped 21% to $245 million in 3Q08 from 2Q08, and are expected to continue sliding through 2009 as the economic recession puts the squeeze on this early market.   Even Clearwire CEO Ben Wolff said that his company -- clearly a leading poster child for WiMAX -- would also consider deploying LTE down the road "if it makes sense for us to do so."   Of course, that's not to say that Clearwire is backing away from WiMAX, but it does go to show that equipment manufacturers need to place their bets on one side or the other in this evolving battle, not both. Blogging on the 4G Wireless Evolution site, resident expert Paul Kapustka has more on that subject.

ALU Earns Spot in Leaders Quadrant

Alcatel-Lucent has been placed in the leaders quadrant of the recently published Gartner, report "Magic Quadrant for Contact Center Infrastructure, Worldwide."   According to the report, "Gartner defines contact center infrastructure as the products (equipment, software and services) needed to operate call and contact centers. This type of infrastructure is used by customer and employee service and support centers, inbound and outbound telemarketing services, help-desk services, government-operated support centers, and other types of structured communications operation. The interactions can be human-assisted or automated self-service, using interactive voice response (IVR) and speech recognition technologies, for example. These channels for interaction use both live agents and messaging technology, and include voice, Web, e-mail, instant messaging, chat, video and mobile devices."   Alcatel-Lucent, when including its Genesys business unit, was ranked No. 2 in worldwide contact center infrastructure end user revenues market share based in 2007 with a combined share of 17.6 percent.   Alcatel-Lucent contact center solutions are a key asset of a dynamic enterprise, in which resources of the business -- its network, people, process and knowledge -- are closely linked to drive top and bottom line growth.

UK Broadband Feeling Recession Effects

It appears that the global economic malaise is not sparing the UK broadband market.   In April of this year, Point-Topic predicted an additional 800,000 broadband lines would be deployed in the latter half of 2008.   But now, according to Tim Johnson, chief analyst at Point Topic, those numbers are down.   "We're now forecasting that only 620,000 broadband lines will be added in the second half of 2008," Johnson said. "The forecast for 2009 as a whole is 1.1 million, 200,000 down on the earlier forecast."   "To keep on track Britain needed to add 390,000 broadband lines in the July to September quarter.

In-Stat: Global Broadband Enjoys Growth

A research study conducted by In-Stat found that broadband services are maintaining high levels of demand globally.   The report posits that over the past 12 months, approximately 80 million new broadband subscribers signed up for high-speed access to the Internet, with DSL technologies accounting for 55% of total broadband connections.   According to In-Stat analyst Mike Paxton:   "The increasing popularity of online applications such as downloading music files, watching TV programming, and playing online video games, are driving demand for 'fatter pipes' that provide ever-increasing amounts of bandwidth. Being able to use these applications, combined with the basic consumer desire to surf the net, is fueling global demand for broadband services."   Other findings from the In-Stat report include:   ·         As of September 2008, there are 452 million broadband subscribers worldwide. ·         By 2012, In-Stat forecasts that worldwide broadband subscribers will reach 876 million, almost twice the size of the current subscriber base. ·         At the beginning of 2008, DSL, mobile wireless, and cable modem service were the leading broadband access technologies, providing 93% of all worldwide broadband connections. ·         Also as of September 2008, there were 100 million broadband subscribers in the U.S. Based on the current subscriber growth rate, the U.S. is adding approximately 1 million broadband subscribers each month.  

Wireless Growth News

A newly released report from Informa Telecoms & Media indicates that 2007-2008 witnessed significant growth in the prepaid mobile services market.   At the end of last year, there were nearly 2.33 billion prepaid subscriptions worldwide, of which two percent of subscriptions accounted for prepaid WCDMA accesses.   According to the research, by 2013 there will be approximately 3.93 billion prepaid subscriptions, generating concomitant revenues of over $382 billion.   The consultancy predicts that from 2007-2013, growth might slow down to a global compound annual growth rate (CAGR) of just over nine percent; Still, the prepaid market will account for over eighty percent of new mobile subscriptions.   It's expected that the key drivers of future growth of the prepaid mobile services market will be very-low-income customers in developing markets.     In other next-generation wireless news, Alcatel-Lucent today announced a €22 million deal with South African mobile operator Vodacom SA to upgrade its existing 3G network.   The goal is to boost the capacity and coverage of Vodacom's network so that the wireless carrier can offer its customers a wide range of advanced next-generation mobile broadband services.   The 3G wireless network will be based on Alcatel-Lucent UMTS (Universal Mobile Telecommunications System) and HSDPA/HSUPA (High Speed Downlink Packet Access/High Speed Uplink Packet Access) technologies.    

Is Business Ready for the Millenials?

A brand-new survey from the respected Economist Intelligence Unit in combination with Genesys predicts finds that most companies are struggling to adapt their businesses to serve customers who are part of the Millennial Generation. The Millenials are generally thought to be those consumers born between 1982 and 2001 (7-26 years of age today).   Millenials actually outnumber baby-boomers today, and this generation will continue to grow in influence as younger members of the group reach adulthood over the next decade or so.   According to the report, three key findings emerged from the study: ·         Investment strategies are shifting to favor Millenials: Companies are debating heavily whether to invest more in catering to aging baby boomers versus next-generation consumers, with 42% saying they should tilt toward younger customers, while 39% would shift toward baby boomers and generation X. ·         The time to act is now: Most companies (54%) have not yet set their strategies or marketing for Millennials even though they overwhelmingly agree that such steps are needed, with 75% saying Millennials will impact their organization as consumers in the next three years.  ·         It's an Enterprise 2.0 world: Most companies have a sophisticated understanding of what it would take to adapt, but are not ready to change their customer engagement model by leveraging social networking, peer marketing, better online support, text messaging, and blogging.     The report underscores the need for businesses to invest in new methods of customer communication and to tailor their approaches to match specific customer preferences.   To download a copy of the report, click here.
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