Telecom Vendors To Abandon "One-Stop-Shop" Aim -Dataquest
There will place for everyone at the table and they will not try to eat everything like a dog: If another comes close to the bone, they chase them away
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Telecom Vendors To Abandon "One-Stop-Shop" Aim -Dataquest
LONDON -- Market research company Dataquest, a unit of Gartner Inc. (ITB), said Monday that the world's eight leading telecom equipment vendors will all fail in their aim of becoming "one-stop-shops" for telecommunication equipment.
A Dataquest report on the telecommunication industry said that the economic slowdown will "change radically" the relationship between vendors and their clients, forcing them to narrow the focus of their offerings.
Eight companies - Alcatel (ALAO), Cisco Systems Inc. (CSCO), Ericsson Communications Inc. (X.ERC), Lucent Technologies Inc. (LU), Motorola Inc. (MOT), Nokia Corp. (NOK), Nortel Networks Corp. (NT) and Siemens Information & Communications (X.SIS) - account for about 80% of the telecom equipment market.
The report said that all of the companies will be forced to abandon their aim of providing a complete range of equipment to their carrier clients before the year-end.
The vendors' product portfolios and market focus are expected to change, said the report, leading to a clearer distinction between enterprise vendors and carrier vendors.
Dataquest said that while the telecom equipment market will continue to be dominated by the same companies in 2005, the nature of the companies will be markedly different.
All vendors are now refocussing, said the report, though none of them has yet outlined a long-term vision.
The Dataquest report includes contributions from more than 30 telecommunication sector analysts.
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