|By Marketwired .||
|January 4, 2013 09:35 AM EST||
NEW YORK, NY -- (Marketwire) -- 01/04/13 -- The communication equipment industry looks poised for a bounceback year as several factors begin to align in its favor. Increased mobile data volumes, better capital spending outlooks, an improved macroeconomic environment and ongoing restructuring efforts are a few of the reasons why investors are taking a closer look at the industry now. Macroeconomic uncertainty, challenging pricing conditions, fluctuating demand and strong competition will still act as headwinds but do not appear sufficient to stall the industry's momentum.
Access our free reports on Alcatel-Lucent and Ericsson. Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at
Surging mobile data demand will likely be a key driver for growth for communication equipment providers in 2013. The increase in data usage appears primarily as a result of better tablet device sales as well as smartphone penetration crossing over the 60% threshold in major global markets. As data volumes expand, telecommunication providers respond by ramping up their capital expenditures on equipment upgrades, overhauls and capability increases. It will be most interesting to see how much demand will stem from the tablet space. Unlike smartphone owners, tablet users are far less compelled to purchase set data plans but are often more likely to latch onto nearby wireless hotspots. Still, companies like Alcatel-Lucent S.A (NASDAQ: ALU) and Ericsson (NASDAQ: ERIC), that operate at all levels of the wireless market, should still be able to capitalize on increased data demand from tablets as well as phones.
The growing cloud market is a further reflection of greater data demand. The cloud market is getting increasingly crowded and competitive though. As competition mounts, a greater premium has been placed on value and innovation. Alcatel-Lucent will be showcasing a dozen new cloud-based service concepts at the 2013 Consumer Electronics Show (CES), raising optimism that it may become a stronger player in the space. Much of Alcatel-Lucent's competition will come from Ericsson which operates in similar markets. Like Alcatel, Ericsson is at the forefront of innovation and also has a strong presence at this year's CES. Ericsson's hetnet solution is a particularly imposing threat to other industry players and its success will be worth tracking this year for investors in the communications equipment industry.
Companies are also efficiently adjusting after a challenging environment throughout much of 2012. The latest moves from Alcatel-Lucent illustrate the positive effect restructuring, paying down debt and divesting non-essential assets can have on the investing public. Optimism for the telecom outfit began to sway in the middle of December when it reached a refinancing agreement with Goldman Sachs and Credit Suisse to the tune of $2.1 billion. The company said that it planned to put the money towards debts maturing soon and towards its restructuring efforts. The company has also done an admirable job of shedding non-core assets to improve margins and efficiency. If it can successfully sell off its underwater cable-laying vessels, margins may improve even more. It will certainly still face challenges in the near-term but the company has certainly laid the groundwork to perform well this year considering current economic conditions.
Uneven demand in the U.S., weak economic growth in Europe and a slowdown in China will be some of the biggest of these challenges. Weak economic growth in Europe will especially affect France-based Alcatel and Sweden-headquartered Ericsson. Fortunately, both companies have considerable global operations that appear capable of offsetting domestic economic weakness.
Moving forward, communication equipment providers' prospects have definitely brightened in recent weeks but significant gains may still be challenging. Investors will want to look closely at companies improving operating efficiency while still focusing on innovation and staving off competitive threats. No indications of a slowing of mobile data demand will likely be the biggest growth proponent for the industry. If macroeconomic conditions improve in China and Europe while stabilizing in the U.S., even further gains may be within reach.
ShinesRooms.com is the brainchild of David Shine, a 13 year Wall Street veteran with a stellar track record. For 13 years Shine has trained thousands of traders to navigate and profit from the markets. Using cutting edge technology, Shine provides you with a community in which you can trade alongside Shine and his Team as they guide you through the market's ever-changing landscape. ShinesRooms.com is the Ultimate Trading Environment for investors. Over the last 5 years our returns outpaced any of the major indexes. Sign up today to find out what you are missing. www.ShinesRooms.com
To view our disclaimer, visit this link http://www.shinesrooms.com/disclaimer.html.
Michael Thomas Smith
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 28, 2016 06:30 PM EDT Reads: 1,596
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 28, 2016 06:00 PM EDT Reads: 1,910
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Aug. 28, 2016 03:00 PM EDT Reads: 735
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 28, 2016 01:45 PM EDT Reads: 3,649
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 28, 2016 01:00 PM EDT Reads: 2,414
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 28, 2016 11:30 AM EDT Reads: 1,952
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 28, 2016 11:00 AM EDT Reads: 3,120
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 28, 2016 11:00 AM EDT Reads: 693
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 28, 2016 10:45 AM EDT Reads: 852
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 28, 2016 10:30 AM EDT Reads: 4,022
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 28, 2016 02:00 AM EDT Reads: 1,789
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 28, 2016 01:30 AM EDT Reads: 2,128
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 28, 2016 01:00 AM EDT Reads: 2,978
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 28, 2016 12:15 AM EDT Reads: 1,845
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 27, 2016 08:45 PM EDT Reads: 2,377
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Aug. 27, 2016 12:45 PM EDT Reads: 2,369
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Aug. 27, 2016 02:30 AM EDT Reads: 2,045
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Aug. 25, 2016 05:15 PM EDT Reads: 866
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Aug. 25, 2016 01:00 PM EDT Reads: 2,682
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Aug. 25, 2016 08:45 AM EDT Reads: 2,203