Monday, April 25, 2005

The Emergence of Chinese Competitors will Force Consolidation in Telcos Networks Sector

From TheAustralian: Telco shake-up forecast

"The emergence of cut-price Chinese competitors will force consolidation in the telecommunications networks sector in the next three years, according to new Alcatel chief operating officer Mike Quigley."I would be very surprised if we looked three years out and the industry structure was the same as it is today," Mr Quigley told The Australian.

"In terms of the (equipment) vendors community, there are simply too many vendors - I think that is recognised by most analysts and most of us in the industry. We have got all of the traditional existing vendors, plus we have start-ups, there are still companies starting up, and we have the emergence of new players, particularly from China."

(...) in the past few years two large Chinese vendors have emerged -- Huawei Technologies and ZTE. After building their business on the booming Chinese market, and then smaller Asian and developing countries, they are determined to break into developed markets."

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