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Competitive Landscape of Telecommunication Equipment



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Telecom is one of those industries which bring revolution to the people’s everyday life. Each day the industry is producing the advanced technologies and latest services to facilitate the communication network. From the major products like cellphones to the wireless modems, chipsets, landline phones, internet, DSL, fibre cables and tiny products like switches and routers, the industry is producing everything we need for making the communication better. The industry is diversified and highly consumer base driven. Thousands of multinational and governmental companies, institutions, telephone companies and commercial business etc has a need for these telecom equipments. Every month lac of money spends on telecommunication equipment, in which many upgrades their old systems and many purchase the products for fulfilling their new plans of the business.

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As the requirement is increasing not only by the household use also by the companies, the competition among telecom companies in this industry is also intense. Every company is trying to generate the technically advanced products with significant research and development. So far, the great economy-of-scale and international distribution amenities has created a high barrier to enter into the industry. Thus, for now we have a small number of prosperous competitors in the telecom industry. That’s why the current equipments maintained the favorable market condition overall with the union and achievements of the makers. There are very few companies in the industry who have selected their niche market and working to serve the enterprises and commercial businesses. But the demand at very area of the industry is high and volatile. The companies are not receiving the steady and reliable orders from telcos.
The overall competition among the telecommunication equipment manufacturers is acute and pricing power is grieved. This is the outcome of the pressure of creating new technologies and service products. For example, like cable companies compete with the building of broadband networks, which provides high quality and speed internet and TV service. Same like this, the increasing demand of mobiles stresses higher capacity service and product in the market. Another flaw of the sector is that they still depend on landline business for cash flow. But the situation is that if the economic condition get tough, people usually disconnect these lines and depend more on wireless and broadband communications. Along with that consumers also fall for the most economical Internet plans. This pressures the delayed of network expansion by telecommunication companies. In this case, the telecom equipment providers can endure them by providing the maintenance and enhancement of the existing systems. Equally, when times are good, the consumer demands for advanced services so telecom businesses have to invest more cash in their operations.
So these are the trends who settles the long-term revenue and earnings growth for the telecommunication equipment industry. Like with the increase of mobile users in North America, Europe and the Pacific Rim they started to mature their wireless markets. Another positive trend is consumer and business demand of Internet bandwidth, the telecommunication companies are working satisfactorily for maintaining the heightened capacity requirements .



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