Occam Networks Competition
Now Viewing Occam Networks's competition in: Telecommunications Equipment Manufacturers
Recent Developments
Europeans Favor Mobile Phones Over Landlines - According to a report by the European Commission, more Europeans are shunning their landlines in favor of cell phones. About 25 percent of European households rely solely on mobile phones. The trend is primarily due to monthly costs for fixed lines being more expensive than the average prepaid mobile phone service. Eastern European households are even more prone to choose mobile phones over landlines, as telecommunication infrastructure is less developed. Finland, home of mobile handset maker Nokia, has the greatest number of mobile users with 61 percent of households exclusively using mobile phones.
Communication Equipment Imports Outpace Exports - Equipment imports from other countries outperformed overall US exports of communication equipment in the first seven months of 2008 compared to the same time in 2007. The US exported only $10.5 billion in communication equipment; imports totaled more than $42 billion. Imports increased nearly 18 percent in the first seven months of 2008; countries leading in exports to the US market include China, Mexico, and Korea.
Congress Passes Broadband Bill - US lawmakers recently passed the Broadband Data Improvement Act, which requires the FCC to more accurately determine broadband's penetration and identify gaps in coverage, especially in underserved, rural markets. The law also provides $40 million in matching funds to finance public-private partnerships that aim to increase availability of broadband services. The new law is expected to create increased demand for broadband infrastructure equipment.
Competitive Landscape
The industry depends on purchases from businesses, telephone companies, cable companies, data communications providers, and TV and radio broadcasters. Profitability for individual companies is linked to technical innovation and the ability to secure high-volume contracts from large customers. Small companies can be successful if they make highly specialized products. There are large economies of scale in manufacturing standard products, but many products are specialized and produced in small manufacturing plants. Annual revenue per employee in a large plant varies from $500,000 to $1 million.
Full Industry Overview For Telecommunications Equipment Manufacturers
Telecommunications Equipment Manufacturers Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US communication equipment manufacturing is forecast to grow at an annual compounded rate of 2 percent between 2008 and 2013.
Communication Equipment Production Growth Low After Spike
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Market saturation
- Need technical expertise
- Risk: Slow economy pushes consumers to low-margin products
Industries Where Occam Networks Competes
- Telecommunications Equipment
- Wireline Telecommunications Equipment
- Copper Wire Switching & Transmission Equipment
- Optical Switching & Transmission Equipment
- Wireline Telecommunications Equipment
