Chinese telecommunications equipment maker Huawei Technologies is leading the Infonetics Research’s telecom equipment vendor leadership scorecard, ahead of Ericsson.
With a solid performance in market share, market share momentum and solution breadth, Huawei received the highest overall score for telecom vendor equipment and services, Infonetics Research’s Michael Howard told TelecomLead.com.
Ericsson, the world’s largest provider of telecom equipment and services, took the #2-spot, finishing a whisker behind Huawei.
Huawei is in the number one position at a time when the Chinese telecom supplier took over as the number of telecom vendor based on revenues in the first half of 2013. Huawei revenue includes its enterprise and device businesses. ( Telecom vendor Huawei overtakes Ericsson in first half revenue 2013 )
Ericsson nabbed above-average scores overall and, thanks to its RAN offering, is in a good position to grow as the world continues to go mobile.
Cisco, #1 in Infonetics’ companion enterprise scorecard, comes in 3rd in the telecom infrastructure scorecard, earning high marks for financial stability and technology innovation.
Michael Howard, co-founder and principal analyst for carrier networks at Infonetics Research, said: “Top 3 vendors-Huawei, Ericsson and Cisco-are bunched closely together due to different strengths, but it’s financial stability that sets them apart from the other 3 vendors-Alcatel-Lucent, NSN and ZTE.”
The other vendors analyzed in the report-Alcatel-Lucent, NSN and ZTE (in alphabetical order)-are well behind the top 3, but each has corrective measures in place for 2013.
Through its SHIFT plan, AlcaLu is prioritizing its product portfolio and investing in fewer segments going forward.
Nokia has announced the buyback of Nokia Siemens Networks from Siemens.
ZTE is re-strategizing and has a strong Chinese service provider base to fund global expansion plans.
2013 Telecommunications Equipment Vendor Leadership Scorecard ranks the 6 top suppliers of telecom infrastructure, software and services such as Alcatel-Lucent, Cisco, Ericsson, Huawei, NSN and ZTE.
The 6 vendors profiled in its telecom scorecard together earn more than half of the world’s telecom equipment and service revenue and share a common thread.
Huawei
Huawei’s telecom score is just ahead Ericsson’s. Huawei sells in all 6 telecom portfolio categories (see Exhibit 1) and has top-3 rankings in 5 of 7 of our scorecard criteria, including market share and market share momentum, as well as top ratings from service providers in service and support. Huawei is in a good position to stay near the top over the next few years, including strong Chinese service provider support.
Ericsson
Ericsson earns a score almost equal with Huawei’s, due to differing strengths. Ericsson has the highest telecom revenue, a strong score in market share, and good market share momentum. Market share is anchored in outsourced services and the over $35B annual RAN segment, supported by a large, loyal customer base. Sitting near the top in financial stability, Ericsson is in a solid position to grow as the world continues to go mobile.
Cisco
Cisco earns its position with a very strong 1st-place finish in financial strength and in the operator-rated categories of technology innovation and service/support. Cisco has a strong customer base for service provider routers and switches, with 37 percent of global 2012 revenue market share.
Nokia Siemens Networks
Nokia Siemens Networks receives strong operator ratings for its product reliability, technology innovation, and service/support. NSN’s #4 ranking is influenced by a low financial stability, based on our financial analysis of 2012 NSN financials, although NSN made good progress in 2012, focusing on mobile broadband networks. As we write this report, Nokia has announced the buyback of NSN from Siemens and re-incorporation into Nokia.
Alcatel-Lucent
Alcatel-Lucent placed in the top 3 in only 2 of our 7 criteria: solution breadth and product reliability. It was tied for last with NSN in financial stability and was last in market share momentum. Alcatel-Lucent’s global customer base has been fairly loyal until recently. Recent financial troubles caused it to prioritize its product portfolio in 2013 to invest in fewer segments going forward.
ZTE
ZTE is strong in market share momentum and solution breadth but well below the others in service provider ratings for technology innovation, product reliability, and service/support. ZTE has a lower score in the important financial stability criterion but has a strong Chinese service provider base to fund global expansion plans.
Baburajan K
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