Telecom equipment demand to pick up in 4Q09: Q&A with Alcatel-Lucent North Asia president Alain Biston
Demand for telecom equipment in the North Asia region is expected to stage a major upturn in the fourth quarter of 2009 as carriers in the region are beginning to deploy their LTE (Long Term Evolution) and GPON (Gigabit passive optical network) infrastructure, said Alain Biston, president of North Asia at Alcatel-Lucent, in a recent interview with Digitimes. Biston also believe that the emerging demand will last into 2010.
Q: How has the global economic downturn and credit crunch impacted on the telecom network equipment market in North Asia? And how is the pace of the recovery?
A: As far as the telecom equipment market in North Asia is concerned, the latest credit crunch has indeed delayed the capital spending of telecom service operators in Japan, South Korea, Hong Kong and Taiwan. But bidding activities that have been held back since the first quarter of 2009 have recently been resumed. We expect the buying activities will gain momentum starting the fourth quarter of 2009.
Demand for new telecom equipment will focus on IP network products and NGN (next generation network) equipment as carriers in the region have also started deploying LTE (Long Term Evolution) and GPON (Gigabit passive optical network) infrastructure.
Q: Do you think that the emerging demand will last into 2010 and beyond?
A: The purchasing plans prepared by carriers at present are for equipment needed for their projected deployments, but uncertainty still remains due to changing market developments. Overall, we believe the market will turn for even better gradually in 2010.
Q: What will be the focus of capital spending by carriers in the region from now on?
A: Carriers in Japan are preparing to launch LTE services and so Alcatel-Lucent is strengthening its cooperation with Japanese carriers in the LTE technology. In addition to LTE transmission networks, demand for wireless broadband backhaul network equipment will also be significant in the Japan market.
In the Korea market, we believe that demand for new telecom equipment, especially for GPON equipment, will pick up soon following the completion of the current consolidation process in the country's telecom sector. The launch of WiBro services by KT (Korea Telecom) will also bring in demand for optical core network equipment. Although the Korea government has not yet released spectrum for the LTE services, LG Telecom is evaluating plans to deploy its LTE networks.
For the Taiwan market, Alcatel-Lucent has captured a significant share in the fixed-line segment and has been cooperating closely with Chunghwa Telecom (CHT). And we are further strengthening our cooperation with CHT into optical fiber networks as well as femto equipment. We also see increasing demand from mobile broadband backhaul network equipment due to growing mobile data services in the local market.
Meanwhile, we are also making inroads into the GPON segment in Hong Kong.
source
Q: How has the global economic downturn and credit crunch impacted on the telecom network equipment market in North Asia? And how is the pace of the recovery?
A: As far as the telecom equipment market in North Asia is concerned, the latest credit crunch has indeed delayed the capital spending of telecom service operators in Japan, South Korea, Hong Kong and Taiwan. But bidding activities that have been held back since the first quarter of 2009 have recently been resumed. We expect the buying activities will gain momentum starting the fourth quarter of 2009.
Demand for new telecom equipment will focus on IP network products and NGN (next generation network) equipment as carriers in the region have also started deploying LTE (Long Term Evolution) and GPON (Gigabit passive optical network) infrastructure.
Q: Do you think that the emerging demand will last into 2010 and beyond?
A: The purchasing plans prepared by carriers at present are for equipment needed for their projected deployments, but uncertainty still remains due to changing market developments. Overall, we believe the market will turn for even better gradually in 2010.
Q: What will be the focus of capital spending by carriers in the region from now on?
A: Carriers in Japan are preparing to launch LTE services and so Alcatel-Lucent is strengthening its cooperation with Japanese carriers in the LTE technology. In addition to LTE transmission networks, demand for wireless broadband backhaul network equipment will also be significant in the Japan market.
In the Korea market, we believe that demand for new telecom equipment, especially for GPON equipment, will pick up soon following the completion of the current consolidation process in the country's telecom sector. The launch of WiBro services by KT (Korea Telecom) will also bring in demand for optical core network equipment. Although the Korea government has not yet released spectrum for the LTE services, LG Telecom is evaluating plans to deploy its LTE networks.
For the Taiwan market, Alcatel-Lucent has captured a significant share in the fixed-line segment and has been cooperating closely with Chunghwa Telecom (CHT). And we are further strengthening our cooperation with CHT into optical fiber networks as well as femto equipment. We also see increasing demand from mobile broadband backhaul network equipment due to growing mobile data services in the local market.
Meanwhile, we are also making inroads into the GPON segment in Hong Kong.
source
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