May 2011

Global Telecom Market

Just When We Think The End is Near, A New Day Arises

By: Hysen Kuci, aWorld Networks

The world economy is currently going through a recovery phase, at a very, very slow pace. Although we are not out of the woods, and a fully phased upswing may take longer to establish than previously expected, the Telecommunications Industry is identified as a major driver of recovery, or so we hope. We see this every day in our company, our customer outlooks, and it is felt by our vendors, employees and all around us. It is believed that the overall economic dynamics should shift in favor of our industry as a whole, primarily due to what we supply, being a major infrastructure source as an “industry” for both emerging markets and still here in the US. Ask that of our piers and competitors the past few quarters or last couple of years and you’ll hear a familiar tone. Budget restraints still, uncertainty, and focus on niches and strengths. The same is true for us at aWorld Networks.

We should all benefit from, an improving global economy, which makes the overall macro-outlook, and significant technological breakthroughs that make even a mature market like the U.S. highly lucrative for telecom companies here the next few years especially wireless build-out. Many countries throughout the world the past year have approved economic plans as a way out of the last recession, including the U.S. broadband development program and similar subsidies in China and India and South American countries specifically.
The FCC along with the United States Dept. of Commerce will identify airwaves to raise the available spectrum size to 500 MHz in the next 7 to 10 years. What does that mean for those of us who carry and supply some of that infrastructure hardware and services? Well, through the hard years of downsizing, mergers, acquisitions, we still see light at the end of this long tunnel after so much over capacity the past several years in the US.

The largest market China, has opened up a market opportunity of more than several billion for several wireless operators, telecom gear makers, and handset developers. India, the 2nd largest emerging economy, recently completed its 3G auctions and is on the verge of 3G network deployments. Several Latin American and western European countries are quickly allocating spectrum for next-generation high-speed networks. Re-focus; find your partners; as a small company, do what you do best. Our industry as a whole is quite small in comparison to these players, rollouts, country-wide expansions, which in essence can be quite comforting in terms of finding a few new customers and vendors of a new generation of build out unlike we have never seen in our secondary market the last 20 years.

Telecommunications has been one of the very few industries that witnessed massive technological improvements, even under the recession. Great demand for innovative products has been a silver lining for the telecommunication industry in an otherwise tough environment which not all have benefited from.

In fact, the global telecommunications industry has been witnessing a fundamental change. Earlier it was voice calls that brought money to the operators which we all support. Equipment manufacturers were concentrating on voice-enabled devices. Voice is taking a backseat, while data and video have become the core focus areas. So now, new network standards are aimed at faster data connectivity, video streaming, high resolution, and multimedia applications. Any of us notice fewer voice calls and more electronic and video communication lately? That is not about to slow down by any means. Sure it’s a macro world out there however, we as individual companies can take advantage of our years of experience and relationships to be a small part of the next great technological communication revolution, we truly believe that.

Capital spending constraints with carriers over the last couple of years due to severe recessionary conditions were the main hindrance to the growth as we saw it in the US. However, with the economic recovery more or less in place, large telecom service providers are gradually expanding their fiber-based networks on the back of significant subscriber growth which should trickle down to us small players soon enough, we hope. All is not lost, in fact at aWorld Networks we see a great new day on the horizon and expect to be a part of it. One day at a time.

About the Author
Hysen Kuci is currently Vice President of Business Development at aWorld Networks has been in the refurbished PBX and central office secondary market since 1989. Mr. Kuci studied Business Management at Rice University and joined aWorld Networks in 2008. aWorld Networks is a secondary market leader-supplier of unused and refurbished Nortel wire line and wireless central office networks in the US and abroad. Visit is at www.aworldnetworks.com

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