Re: Infrastructure Sales in 2H01
Nokia looking very good, relatively speaking.
* Nokia ranked first in 2H01, accounting for US$3.59 billion worth of equipment on order, giving the Finnish vendor 44.1% market share ... extended its lead over Ericsson, which saw a 49% fall in its mobile-data business from US$2.73 billion in 1H01 to US$1.39 billion in the second half.
* The total value of 2.5G and 3G infrastructure contracts announced in the second half of last year was US$8.15 billion
* US$16.23 billion worth of new business generated in the same period, compared with US$27.05 billion worth of new business in 1H01.
>> Infrastructure Spending Down 53% In 2H01
Gavin Patterson
Informa
3G Mobile
The total value of 2.5G and 3G infrastructure contracts announced in the second half of last year was US$8.15 billion, 53% less than in both 1H01 and 2H00, according to a 3G Mobile survey of the seven largest equipment vendors.
The slowdown in mobile-data infrastructure spending was mirrored in the overall market, which saw only US$16.23 billion worth of new business generated in the same period, compared with US$27.05 billion worth of new business in 1H01, of which mobile data accounted for US$17.36 billion.
The second half of 2000 also generated 2.5G and 3G business worth US$17.35 billion, out of a total of US$23.84 billion.
According to the 3G Mobile survey, Nokia ranked first in 2H01, accounting for US$3.59 billion worth of equipment on order, giving the Finnish vendor 44.1% market share.
Nokia's business remained fairly stable over the first half, when it announced contracts worth about US$3.87 billion. Moreover, the vendor has extended its lead over Ericsson, which saw a 49% fall in its mobile-data business from US$2.73 billion in 1H01 to US$1.39 billion in the second half.
Jeffrey Schlesinger, wireless-equipment analyst at UBS Warburg, says Nokia is leveraging the strong cash flow from its mobile phone business to cover the costs of the 3G vendor financing it has committed to. "The return is increased market share in mobile infrastructure and an acceleration in top-line growth and profitability when 3G takes off," he says.
Schlesinger estimates that Nokia's total customer financing - committed and uncommitted - was €4.2 billion (US$3.6 billion), with on-balance-sheet commitments of roughly €1.1 billion, at end-2001. "We believe that the vast majority of this pertains to 2G business [mostly Telemar in Brazil] and perhaps only €100 million or so for 3G commitments," he says. "Off-balance-sheet commitments stand at roughly €100 million and unfunded commitments at €3 billion, the vast majority of which pertains to future 3G business."
Siemens was the only other vendor to report more than US$1 billion worth of business, taking 13.2% market share. The German vendor also ranked second behind Nokia in the UMTS/WCDMA market with 19% market share.
Overall, UMTS/WCDMA accounted for US$3.29 billion worth of business, GPRS made up US$2.86 billion and EDGE US$875 million. In the CDMA camp, Lucent took the lion's share of the 1xRTT market, with 52% share vs. 42% for Motorola and 6% for Nortel.
MOBILE DATA INFRASTRUCTURE CONTRACTS BY VENDORS AND TECHNOLOGY (2H01)
Vendor 1xRTT GPRS EDGE WCDMA Total
Alcatel (US$mil) - 280.0 - 25.00 305.0
Market share (%) - 9.78% - 0.8% 3.74%
Ericsson (US$mil) - 984.5 333.5 75.0 1,392.5
Market share (%) - 34.4% 38.1% 2.3% 17.1%
Lucent (US$mil) 591.0 - - - 591.0
Market share (%) 52.4% - - - 7.3%
Motorola (US$mil) 472.0 104.5 - - 576.5
Market share (%) 41.8% 3.7% - - 7.1%
Nokia (US$mil) - 1,107.0 276.8 2,212.5 3,596.0
Market share (%) - 38.7% 31.6% 67.2% 44.1%
Nortel (US$mil) 64.5 100.0 100.0 350.0 614.5
Market share (%) 5.7% 3.5% 11.4% 10.6% 7.54%
Siemens (US$mil) - 286.8 165.0 627.5 1,079.3
Market share (%) - 10.0% 18.9% 19.1% 13.2%
Total (US$mil) 1,127 2,862 875 3,290 8,154
Note: Where contracts are for more than one standard (eg. GPRS/EDGE/WCDMA), the contract value has been divided equally. Source: 3G Mobile <<
- Eric - |
