November, 2009

Huawei ascends to optical networking prominence in $3.6B market

<Did you see the blaze of light as Huawei’s streaked past Alcatel-Lucent on its way to becoming the top optical networking equipment vendor for the first time in Q3? Upsetting long-term record-holder Alcatel-Lucent, Ovum reported Asia-Pacific markets are tearing up the market segment, especially in China, which Ovum said is propelled by 3g mobile network builds. And when China builds, Huawei benefits. Huawei now leads the optical market by almost 3%, Ovum said.

Clearly on a roll, the Del’Oro group reports Huawei is in second place in the mobile networking market in Q3, still far behind Ericsson, but Huawei’s market share went from 11% last year to 20%.

Overall, the optical networking market is down 10% compared to Q308, but global spending still totaled $3.6 billion in Q3 and a recovery appears to be in progress. Several of the top 10 optical vendors have seen improved revenue (including Cisco, Fujitsu, NEC, Tellabs and possibly Nortel), but ZTE, the other Chinese powerhouse, edged out Fujitso for #4. In the hard-knock life category, Nokia Siemens Networks (NSN) fell from #5 in Q308 to #8th, behind Tellabs, a year later. Comeback-kid Cisco also edged out Ciena to re-enter the top 10.

Want to get married in Vegas? There’s an app for that, says NSN

We’re hearing a lot these days about how carriers are seeing their average revenue per user (ARPU) go down with the advent of unlimited voice and data plans, so they will have to make their money partnering with developers of smartphone applications or themselves offer integrated services.

At SuperCOMM 09, I heard from Michael Mullineaux, marketing manager at Nokia Siemens Networks, who demonstrated an application that would combine location with e-commerce and book an evening in Las Vegas from a mobile device.

Trouble in paradise: Amazon dumps Sprint for Kindle, falls into the arms of AT&T

Ah, young love. When Amazon launched the Kindle almost two years ago, the company proposed to Sprint Nextel Corporation: Support us! The wireless carrier accepted. They took the solemn vow to be partners in sickness and in health, in good times and in bad.

Although the Kindle was earning Sprint only $2 ARPU, the carrier was still reaping huge profit margins as Amazon picked up most of the operational costs.

But they say one in two marriages end in divorce, right? This couple is no exception. Amazon Kindle Director Russell Baker confirmed Amazon is dumping Sprint for AT&T so that it can support international users, according to FierceWireless.

“Sprint’s network uses CDMA technology, while AT&T’s uses the much more widespread GSM technology … Amazon’s decision to drop the CDMA Kindle is a blow to Sprint, which in the first quarter of the year touted its sales of the Amazon Kindle e-reader device as driving the majority of its 394,000 wholesale additions.”

No word from Sprint yet on this. We hope they’re not drowning their sorrows in a gallon of Edy’s, as we’re prone to do after a bad breakup.

UPDATE: Sprint spokeswoman Stephanie Greenwood responds.

The Kindle DX operates on the Sprint mobile broadband network, so Kindles currently in use or already in the sales pipeline will still be powered by Sprint. Sprint has enjoyed a long and successful relationship with Amazon—since the Kindle first launched. We understand their international strategy and look forward to working with them on future projects.

Video: Service providers don’t have to be swept away by IP tsunami

While tongues were wagging at Supercomm 2009 about and upcoming decision from the FCC on net neutrality, I took some time to sit down and learn more about the long-term challenges telecom operators are facing over the next year.

Brian Wood, vice president of marketing for Continuous Computing, a San Diego-based component manufacturer for network equipment providers, laid out the road ahead from where he sees it.