Sunday 14 December 2008

Still something to cheer up for wireless sector

In the last year as everybody knows because of the lack of money in the market situation has turned towards grimness. In these difficult times everybody tend to take measures whether right or wrong we can’t say for sure. One thing though which is sure is that everybody tries to cut cost in these difficult circumstances and hence results in the some unpopular decisions. Telecomm companies are no different than others and hence quite rightly taken stern steps towards cutting costs. There is some nervousness especially among the investors which gives an impression that spending in the wireless sector will be hot has as well.

Although the certain trends and strategic vibes coming out of the major companies doesn’t suggest so for the time being. Infact I must say wireless infrastructure spending has overtaken wired in the majority of large enterprises.

I can see the main reason behind this increased spending is that companies are well aware that majority of us like to have wireless these days. Majority of the companies, no doubt also expect all their networked equipment to be wireless enabled. This obviously presents a strategic view in front of the companies and investors as a need for mobility and hence the need to upgrade or replace an existing wired LAN.

As everyday passes by in these hard economic times the budget is getting reduced and hence there is a sense of urgency to be more efficient. I might not be very wrong is say that at the moment wireless/mobility sector seems to be achieving that efficiency by taking certain calculated steps.

Companies are trying every possible bit to get the maximum out of the existing or newly planned wireless infrastructure and the technology as such.

Once such company which everybody thought will say goodbye to Wireless is Alcatel-Lucent.
In the highly anticipated strategic announcement by the newly appointed CEO of Alcatel-Lucent, Ben Verwaayen, has announced and hence strongly countered that it is committed to being a major supplier of mobile infrastructure.

I guess Ben Verwaayen see that there is a huge potential in the wireless market and hence despite being pressured by some of its major investors he still wants to go ahead with the spending on the wireless infrastructure major being the LTE.

In the last year whenever I spoke to my friends in different companies I got the view that everybody wants to cut the cost so that they can continue or maintain their R&D section. In my view this is the right thing to do specially for the giants of telecoms. It’s quite simple that R&D projects will enable to develop new and exciting products and hence the revenues.

Based on the above information which gained by talking to different people at the top of the industry I’m 100% confident that companies like Ericsson, Nokia Siemens Network, Alcatel-Lucent etc will maintain its R&D resources and will be ready with LTE products when the market demands. It is very much obvious companies will focus in a more targeted way than in the past and thus may be putting LTE at the very centre of their efforts. The whole ideas to regain the market share and become a leading supplier within 18 months.

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