The traditional telecom infrastructure suppliers are facing significant challenges due to evolving operator demands and new competitors. These suppliers are under pressure to maintain sustainable margins in both developed and emerging markets. Arthur D. Little has analyzed the performance of leading companies in the sector and conducted a global survey of CTOs to gain their perspective on future developments and challenges. The analysis suggests that consolidation will continue, and the number of suppliers capable of full-service portfolio coverage will decline. Suppliers will need to take positions in new technologies to remain competitive. The competitive pressures underlying the weakening confidence in traditional players are illustrated in figure 1. The first of those pressures arises from continued competition from IT players and emerging Asian suppliers. The second pressure is the evolving demands of operators, who are looking for more innovative and flexible solutions. The third pressure is the declining confidence in traditional players, which has led to a reduction in market capitalization. Overall, the traditional telecom infrastructure suppliers are facing significant challenges and will need to adapt to remain competitive.
