HAMPTON, NH -- (MARKET WIRE) -- 04/11/08 -- Global suppliers of services for telecomoperators saw revenue increases across the board in 2007 as the totalmarket grew to $70 billion, an 8% increase over 2006, according toTechnology Business Research's Telecom Infrastructure Services (TIS) MarketModel.The TIS Market Model tracks market share of leading telecom equipmentsuppliers and provides forecasts for the rapidly-evolving market forselling deployment, maintenance, consulting & integration and managedservices to telecom service providers.
2007 MARKET TRENDS
In 2007, Ericsson, Alcatel-Lucent, Nokia Siemens Networks, Huawei, andothers stepped up their focus on services businesses to help insulateagainst slowing demand for telecom equipment. Meanwhile, the increasingintersection of network and IT worlds is creating significant opportunitiesfor IT vendors such as IBM, HP, Accenture and EDS to seize growthopportunities within telco operator accounts and for traditionalinfrastructure vendors to expand into more software-centric parts of thenetwork, particularly OSS/BSS. Beyond the major players, a second tier ofnetwork and software vendors are stepping up their systems integration andconsulting initiatives.
TBR believes that determining the magnitude of the market as a whole, itsvarious segments and the market share of major players are critical stepstoward understanding the strategies that a firm should apply to winadditional services business.
Key findings:
-- After announcing a handful of managed services contracts in 2006, suppliers reported a surge in 2007, with more than 100 deals announced. While interest in outsourcing remains low in North America, other regions, especially Western Europe, are seeing increased activity.-- Completion of mergers among suppliers has tightened the competition among the three largest telecom suppliers. TBR believes that Ericsson will face significant challenges to its market leadership as both Alcatel-Lucent and Nokia Siemens Networks become more aggressive in the network services space.-- While IBM continues to lead large IT systems integrators in revenue from service providers, HP markedly increased its position in 2007 bringing it into a virtual tie for the lead among these players.-- While network equipment spending slowed in 2007, service provider consolidation and migration to IP-based multimedia infrastructure drove opportunities for services.
FOR ADDITIONAL INFORMATION
The TIS Market Model is part of a comprehensive forecasting and analysisservice that includes the following:
-- Semiannual TIS Market Opportunity and Market Share Analysis-- Quarterly TIS Industry Metrics Benchmarking-- Quarterly Profiles of Leading TIS Suppliers
TIS reports include analysis by customer, business and technology segmentsand by geography. TBR also provides quarterly revenue and profit modelingof the TIS industry, and monthly deal and trend tracking. For additionaldetails on syndicated and custom project options related to the 2007 TISModel, please contact:
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John Byrne
Director, Network Business Quarterly
Direct Line: 603-758-1828
john.byrne@tbri.com
James McIlroy
Vice President of Sales
Direct Line: 603-758-1813
mcilroy@tbri.com
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