Re: European Internet Infrastructure- Telekom's Cable Asset/ADCT-ALA Positioning Plans
Thread- As I've probably overstated now, the European access market is going through similar gyrations that that US markets have. They are about 1-1/2 years behind US regulators. As most know, Deutsche Telekom is now being forced to sell off their cable plant holdings(http://www.siliconinvestor.com/readmsg.aspx?msgid=12932067&s=deutsche) with the idea it will spur competition for the local loop.
And now the battle of the equipment providers is starting to heat up. The European(combined Western and Eastern) population is estimated to be larger than the US population by 100 million(http://www.siliconinvestor.com/readmsg.aspx?msgid=12758032). IMO, it's not even in the first inning yet. Internet connectivity has barely penetrated Europe as a whole. At this point, it could take off, or could be stalled. My point- it's still very early.
Hopefully the Davos Economic Forum(http://www.siliconinvestor.com/readmsg.aspx?msgid=12751483&s=davos) made it clear to European political leaders, that it's important to de-regulate the telecommunication markets and get connected.
Following is just a single example of how the equipment companies are starting to line up to do battle. I bolded the statements related to my message above. -MikeM(From Florida)
PS For some recent ADCT news that is somewhat disconcerting see:http://www.siliconinvestor.com/readmsg.aspx?msgid=13186838
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ADC and Alcatel Eye Huge Telephony Market
By NATALIA A. FEDUSCHAK March 13, 2000
The recent decision by Minneapolis-based ADC Telecommunications Inc. and Germany's Alcatel Alsthom S.A. to form a worldwide alliance to jointly offer cable-telephony solutions is a global validation of that business, both companies assert.
"Cooperation in other parts of the world becomes more and more international because new operators want to make deals with end users," said Manfred Langenbach-Belz, Alcatel's director of business development for hybrid-fiber coax systems. "We want to offer our customers complete end-to-end solutions."
Added Ham Mathews, director of marketing for ADC's cable-access systems division, "Our own telephony system is only a small fraction in the world."
More collaboration between U.S. and foreign firms in the cable-telephony arena is expected in the future.
Under their memorandum of understanding, ADC and Alcatel will jointly offer cable-telephony infrastructure products, integration services and access-and-transport systems. Concentrating their efforts on Europe, Asia and South America, the companies will collaborate on marketing, sales and engineering to bring international MSOs quick and cost-effective cable telephony solutions that allow them to compete with traditional telephone-service providers and generate additional revenue.
Alcatel will provide cable-telephony infrastructure products and full integration and support services for joint solutions. ADC will contribute its Homeworx cable telephony system, which is a high-capacity platform that delivers lifeline telephone service over hybrid fiber-coaxial networks. ADC will also provide ISDN interface solutions based on the two companies' access platform.
One of the factors that set the stage for the alliance was the breakup of Germany's Deutsche Telekom A.G., said Matthews.
"We're seeing Europe as a market that is opening up pretty much across the board," he said. "The divestiture of the Deutsche Telekom network is going to create quite an opportunity for cable telephony."
For its part, ADC will concentrate its European efforts on breaking into the Spanish and German markets.
"We see these as two big hot spots of opportunity," said Mathews. Spain has started to deregulate its telecommunications market and Deutsche Telekom is selling off its HFC network.
ADC and Alcatel plan to have a final agreement within the next 90 days. It is still too early to say how much revenue the alliance could generate, as the companies are still investigating areas in which they can cooperate, said Mathews.
Cable telephony continues to emerge as a viable means to deliver broadband services to the home and office. Next-generation cable infrastructure spending worldwide is estimated to reach $27.8 billion by 2004, up from a $3.9 billion in 1998, according to the companies. |
