As a result of an economic slowdown beginning in 2000 and proceeding into 2003, many telecommunication service providers cut back capital expenditure and discretionary spending budgets. These cut backs contributed to a major decrease in revenues for equipment suppliers throughout this period. As a result, huge sums were written off, companies were restructured with significant divestments, much work was outsourced and shareholder values plummeted. Also, hundreds of thousands of employees were terminated although it can be assumed that some of these employees were reemployed by the outsourcing companies.

For most equipment suppliers, the slowdown in infrastructure sales was quite pronounced, but there are signs that the market is bottoming out and recovery is expected to improve during 2004. Most of the reduction in activity was in the USA, followed a year later in Western Europe. These two regions had the highest levels of existing infrastructure with considerable over-capacity, which allowed operators to defer expansion. The rest of the world continued its spending at fairly constant rates. Asia Pacific actually peaked during 2001, possibly due to a concerted sales effort by the US suppliers.

All equipment suppliers suffered various levels of financial setback following the industry downturn. The over-exuberance of the stockmarkets ceased and companies started to be judged on their fundamentals rather than their inflated promises. Funds became very hard to acquire, and companies had to rely on the own cash generation. Many buyers of telecommunications equipment either went bust or severely curtailed their capital spending to conserve cash. Many of the major equipment suppliers either closed their doors or were forced into major restructuring under bankruptcy protection. In nearly all companies, this resulted in large-scale reductions in both staff numbers and shareholder value.

Despite the heavy cost cutting during the lean years, R&D expenditure was retained at fairly constant levels by nearly all companies, indicating that they were still preparing themselves for a brighter future.

Many of the rash acquisitions in the pre-2001 era were divested at huge discounts. Stockmarket prices are starting to recover, but the optimism is gone.

It should be noted that, as companies are restructured, they readjust their previous results to reflect the new structure for comparison purposes. As a result, the figures presented below may be a mixture of original and pro forma numbers and must be used as a guide only to demonstrate trends.

See this documents 'Table of Contents' for more details.
1.		THE EQUIPMENT MARKET IN 2004
1.1		Market overview
1.1.1		The emergence from the equipment market collapse
1.1.2		Beyond the bubble
1.2		Corporate spending on IT
1.2.1		Statistics
1.2.2		Recent forecasts
1.3		Internet access
1.3.1		Statistics from 2003
1.4		Personal computers
1.4.1		Recent statistics
1.5		Fibre optics industry
1.5.1		KMI research in 2003
1.6		Semiconductors
1.6.1		Statistics
1.7		Wireless equipment market
1.7.1		Market overview
1.7.2		Wireless infrastructure statistics
1.7.3		Personal Digital Assistants (PDA)
1.8		Mobile handset market
1.8.1		Overview
1.8.2		Statistics from 2004
1.8.3		Statistics from 2003
1.9		Handset developments
1.9.1		Camera phones
1.9.2		Internet enabled phones
1.9.3		Smartphones
2.		OVERVIEW OF EQUIPMENT COMPANIES
2.1		Statistical summaries
2.2		Financial summaries
2.3		Company progress and strategies
2.3.1		Alcatel
2.3.2		Cisco Systems Inc
2.3.3		LM Ericsson
2.3.4		Fujitsu Limited
2.3.5		Gilat satellite Networks Ltd
2.3.6		Hewlett-Packard Company (HP)
2.3.7		Huawei Technologies
2.3.8		IBM Corporation
2.3.9		JDS Uniphase Corporation
2.3.10		Juniper Networks Inc
2.3.11		Lucent Technologies
2.3.12		Marconi Corporation
2.3.13		Motorola Inc
2.3.14		Nokia
2.3.15		Nortel Networks Corporation
2.3.16		Philips Electronics
2.3.17		Qualcomm Inc
2.3.18		Siemens AG
3.		ALCATEL
3.1		Company information
3.1.1		2003 reorganisation
3.1.2		Year 2003 results
3.1.3		Alcatel Space
3.1.4		Brief history of Alcatel
3.2		Products and services
3.3		Research & development
3.3.1		Technologies available
3.4		Contact details
4.		CISCO SYSTEMS INC
4.1		Company information
4.1.1		Year 2003 results
4.1.2		Year 2001 industry downturn
4.1.3		Summary of acquisitions – 2000 - 2003
4.2		Research and development
4.3		Manufacturing
4.4		Services
4.4.1		Cisco products
4.4.2		Technology solutions
4.5		Contact details
5.		ERICSSON (LM ERICSSON)
5.1		Company information
5.1.1		Results for 2003
5.2		Company analysis – updated March 2004
5.2.1		Revenues still declining
5.2.2		Company forecasts
5.2.3		Continuing moves to combat the 2001 industry downturn
5.3		Sony Ericsson
5.4		Major products and services
5.5		Research & development
5.6		Contact details
6.		FUJITSU LIMITED
6.1		Company information
6.1.1		Fujitsu results for 2003
6.1.2		Year 2001 industry downturn
6.2		Major subsidiaries
6.2.1		Japan
6.2.2		USA
6.2.3		Europe
6.2.4		Affiliates
6.3		Major services and products
6.4		Contact details
7.		GILAT SATELLITE NETWORKS LTD
7.1		Company information
7.1.1		Company restructuring in 2003
7.1.2		Financial results – 2003
7.1.3		Company history – 1987-2002
7.2		Subsidiaries and joint ventures
7.2.1		Spacenet
7.2.2		StarBand Communications
7.2.3		Gilat Latin America
7.2.4		Deterministic Networks Inc.
7.2.5		rStar Corporation
7.2.6		SatLynx
7.2.7		KSAT satellite networks
7.3		VSAT satellite network
7.4		VSAT products
7.4.1		Corporate networks
7.4.2		VSAT telephony
7.4.3		VSAT consumer/SOHO IP Networking and Internet
7.5		Services
7.6		Contact details
8.		HEWLETT-PACKARD COMPANY (HP)
8.1		Company information
8.1.1		Results for 2003
8.1.2		Organisation
8.2		The merging companies (historic)
8.2.1		Hewlett-Packard
8.2.2		Compaq
8.3		Research and development
8.4		Products
8.5		Services
8.6		Contact details
9.		HUAWEI TECHNOLOGIES
9.1		Company information
9.1.1		Year 2003 results
9.2		Major joint ventures
9.2.1		Microsoft
9.2.2		3Com
9.2.3		Infineon
9.2.4		Siemens
9.3		Problems in America
9.4		The Chinese approach to 3G
9.5		Services
9.6		Contact details
10.		IBM CORPORATION
10.1		Company information
10.1.1		Results for 2003
10.1.2		Brief company history up until 2003
10.2		Company structure
10.2.1		Organisation
10.2.2		Geographic groupings – December 2003
10.3		Products and services
10.4		Products
10.4.1		Services (Through IBM Global Services)
10.5		Contact details
11.		JDS UNIPHASE CORPORATION
11.1		Company information
11.1.1		Year 2003 results
11.1.2		Brief history
11.1.3		Major acquisitions
11.2		Services
11.2.1		Fibre-optic Communication Products
11.2.2		Instrumentation
11.2.3		Thin Film Products
11.2.4		Commercial lasers
11.3		Contact details
12.		JUNIPER NETWORKS INC
12.1		Company information
12.1.1		Year 2003 results
12.1.2		Manufacturing
12.2		Technology
12.2.1		JUNOS Internet software
12.2.2		ASIC-based packet forwarding technology
12.2.3		Internet optimised architecture
12.3		Company analysis – March 2004
12.4		Products and services
12.5		Contact details
13.		LUCENT TECHNOLOGIES
13.1		Company information
13.1.1		Year 2003 results
13.1.2		Industry downturn in 2001
13.2		Business groupings
13.2.1		Worldwide Services
13.2.2		Integrated Network Solutions (INS) segment
13.2.3		Mobility Segment
13.2.4		Bell Laboratories
13.3		Major investments
13.3.1		Agere Systems
13.3.2		Avaya Communications
13.4		Services/products
13.4.1		Worldwide services
13.4.2		Wireline Solutions
13.4.3		Mobile solutions
13.4.4		Network operations software
13.5		Contact details
14.		MARCONI CORPORATION
14.1		Company information
14.1.1		Marconi results for 2003
14.1.2		Financial problems – 2001 and 2002
14.1.3		Company restructuring 2002
14.1.4		New company organisation
14.1.5		Brief history
14.2		Marconi mergers and joint ventures
14.3		Products and services
14.3.1		Networks
14.3.2		Wireless
14.3.3		Enterprise solutions
14.3.4		Government solutions
14.4		Contact details
15.		MOTOROLA INC
15.1		Company information
15.1.1		Results for 2003
15.1.2		Year 2001 industry downturn
15.1.3		Motorola organisation
15.1.4		Research & development
15.1.5		Major Subsidiaries
15.2		Products and services
15.3		Contact details
16.		NOKIA
16.1		Company information
16.1.1		Year 2003 results
16.1.2		Year 2001 industry downturn
16.1.3		Organisation changes in 2004
16.2		Major services/products
16.2.1		Network products
16.2.2		Corporate solutions
16.2.3		Mobile phones
16.2.4		Home products
16.3		Research and development
16.4		Contact details
17.		NORTEL NETWORKS CORPORATION
17.1		Company information
17.1.1		Year 2003 results
17.1.2		Year 2001 industry downturn
17.1.3		More problems in 2004
17.2		Business segments
17.2.1		Enterprise Networks
17.2.2		Wireless Networks
17.2.3		Wireline Networks
17.2.4		Optical Networks
17.3		Geographical locations
17.3.1		Asia Pacific
17.3.2		Europe, Middle East, Africa
17.3.3		Caribbean and Latin America
17.3.4		North America
17.4		Major services/products
17.5		Contact details
18.		PHILIPS ELECTRONICS
18.1		Company information
18.1.1		Year 2003 results
18.1.2		Year 2001 industry downturn
18.1.3		Brief history
18.1.4		Company structure
18.2		Product overview
18.3		Research and development
18.4		Asian Pacific activities
18.5		Contact details
19.		QUALCOMM INC
19.1		Company information
19.1.1		Year 2003 results
19.1.2		Year 2001 industry downturn
19.2		Business segments
19.2.1		Qualcomm CDMA Technologies (QCT)
19.2.2		Qualcomm Technology Licensing (QTL)
19.2.3		Qualcomm Wireless & Internet (QWI)
19.2.4		Qualcomm Strategic Initiatives (QSI)
19.2.5		Qualcomm subsidiaries
19.3		Products and services
19.3.1		Wireless phones and software
19.3.2		Eudora software
19.3.3		Wireless business solutions
19.3.4		CDMA chipsets and software
19.3.5		Globalstar mobile satellite system
19.3.6		Government systems
19.3.7		Digital cinema
19.4		Contact details
20.		SIEMENS AG
20.1.1		Company information
20.1.2		Year 2003 results
20.2		Company organisation
20.2.1		Research and Development
20.3		Analysis by Paul Budde
20.3.1		The new vision from Siemens
20.3.2		The LifeWorks’ vision
20.4		Information and Communications Group
20.4.1		Information and Communication Networks (ICN)
20.4.2		Information and Communication Mobile (ICM)
20.4.3		Business Services (SBS)
20.5		Communications products
20.5.1		Information and communication networks
20.5.2		Information and communication products
20.5.3		Mobile products
20.5.4		Siemens business services
20.6		Asian operations
20.6.1		China
20.6.2		Hong Kong
20.6.3		India
20.6.4		Indonesia
20.6.5		Japan
20.6.6		Korea
20.6.7		Malaysia
20.7		Contact details
21.		GLOSSARY OF ABBREVIATIONS
Exhibit 1 – Alcatel at a glance
Exhibit 2 – Cisco at a glance
Exhibit 3 – Subsidiaries
Exhibit 4 – Ericsson at a glance
Exhibit 5 – Fujitsu Limited at a glance
Exhibit 6 – Gilat at a glance
Exhibit 7 – Subsidiary and associate companies – 2002
Exhibit 8 – Products
Exhibit 9 – Gilat services
Exhibit 10 – HP at a glance
Exhibit 11 – at a glance
Exhibit 12 – TD-SCDMA Technology
Exhibit 13 – IBM at a glance
Exhibit 14 – IBM enterprise business sectors
Exhibit 15 – JDS Uniphase at a glance
Exhibit 16 – Manufacturing locations – 2003
Exhibit 17 – Juniper at a glance
Exhibit 18 – Lucent Technologies at a glance
Exhibit 19 – Acquisitions history
Exhibit 20 – Marconi at a glance
Exhibit 21 – Summary of acquisitions – March 2003
Exhibit 22 – Summary of investments – March 2003
Exhibit 23 – Motorola at a glance
Exhibit 24 – Motorola’s shareholdings in overseas cellular services
Exhibit 25 – Nokia Group at a glance
Exhibit 26 – Acquisitions
Exhibit 27 – Location of Nokia operations
Exhibit 28 – Nortel Networks at a glance
Exhibit 29 – Acquisitions since 1997
Exhibit 30 – Philips Electronics NV at a glance
Exhibit 31 – Product overview by organisational sector
Exhibit 32 – Major R&D centres
Exhibit 33 – Qualcomm at a glance
Exhibit 34 – Siemens at a glance
Exhibit 35 – Lifeworks from Siemens
Table 1 – IT equipment leasing revenues in US – 1998 – 2005
Table 2 – Technology penetration in small US businesses – 2002, 2003
Table 3 – IT purchases by small and medium US businesses in 2003
Table 4 – US corporate spending on telecoms equipment – 2000 – 2007
Table 5 – Tablet PC sales in EMEA – Q4, 2002 – Q3, 2003
Table 6 – Worldwide sales of PCs by selected vendors – 1990; 1995; 2000; 2003; 2005; 2008
Table 7 – Annual growth in broadband demand – 2001 – 2004
Table 8 – Worldwide PDA sales by operating system – Q1, 2003 and Q1, 2004
Table 9 – Worldwide PDA sales by vendor – Q1, 2003 and Q1, 2004
Table 10 – Worldwide mobile handset sales – 2001 - 2007
Table 11 – Worldwide mobile terminal sales by vendor – 2002 - 2003
Table 12 – Handset suppliers market shares – 1997 – 2003 (September)
Table 13 – Mobile handset market shares – March 2004
Table 14 – US mobile photo messaging revenues – 2003 – 2008
Table 15 – Worldwide sales of camera phones vs digital cameras – 2002; 2007
Table 16 – Camera phone market share in EMEA – second quarter 2003
Table 17 – IT equipment sales by region – 1999 – 2003
Table 18 – Mobile infrastructure sales by vendor – 2001 – 2003
Table 19 – Revenue and net profit comparisons – 2002 - 2003
Table 20 – Alcatel finance summary – 1999 – 2003
Table 21 – Cisco financial summary – 1999 – 2003
Table 22 – Financial summary for Fujitsu – 1999 – 2003
Table 23 – Summary of IBM finances – 1999 – 2003
Table 24 – JDS Uniphase finances – 2000 – 2003
Table 25 – Juniper finance summary – 2000 – 2003
Table 26 – Lucent finance summary – 1999 – 2003
Table 27 – Marconi finance summary – 2000 – 2003
Table 28 – Motorola finance summary – 1999 – 2003
Table 29 – Nokia finance summary – 1999 – 2003
Table 30 – Nortel finance summary – 1999 – 2003
Table 31 – Philips finance summary – 1999 – 2003
Table 32 – Qualcomm finance summary – 1999 – 2003
Table 33 – Siemens finance summary – 1999 – 2003
Table 34 – Alcatel sales summary – 1996 - 2003
Table 35 – Revenue by segment – 2003
Table 36 – Revenue by region – 2003
Table 37 – Cisco revenue – 1995 - 2003
Table 38 – Revenue by segment – 2003
Table 39 – Revenue by region – 2003
Table 40 – Ericsson revenue – 1994 - 2003
Table 41 – Revenue by segment – 2003
Table 42 – Fujitsu revenue – 1997 - 2003
Table 43 – Revenue by segment – 2003
Table 44 – Revenue by Region – 2003
Table 45 – Gilat revenue summary – 1996 - 2003
Table 46 – Revenue for each company – 1997 - 2003
Table 47 – Revenue by segment – 2003
Table 48 – Huawei financial data – 2000 - 2003
Table 49 – IBM revenue summary – 1997 - 2003
Table 50 – Revenue by segment - 2003
Table 51 – Revenue by region - 2003
Table 52 – JDS Uniphase revenue – 1997 - 2003
Table 53 – Revenue by segment – 2003
Table 54 – Revenue by region – 2003
Table 55 – Juniper revenue summary – 1999 - 2003
Table 56 – Revenue by segment – 2003
Table 57 – Revenue by region – 2003
Table 58 – Revenue overview – 1996 - 2003
Table 59 – Revenue by product – 2003
Table 60 – Revenue by region – 2003
Table 61 – Marconi revenue – 1997 - 2003
Table 62 – Revenue by segment – 2003
Table 63 – Core revenue by region – 2003
Table 64 – Motorola revenue summary – 1996 - 2003
Table 65 – Revenue by segment – 2003
Table 66 – Revenue by region – 2003
Table 67 – Major subsidiaries – Dec 2003
Table 68 – Nokia revenue – 1994 - 2003
Table 69 – Revenue by segment – 2003
Table 70 – Revenue by region – 2003
Table 71 – Revenue for years ending December – 1997 to 2003
Table 72 – Revenue by segment - 2003
Table 73 – Revenue by region – 2003
Table 74 – Philips revenue – 1997 - 2003
Table 75 – Revenue by segment – 2003
Table 76 – Qualcomm revenue – 1997 - 2003
Table 77 – Revenue by segment – 2003
Table 78 – Siemens AG operational groups (2003)
Table 79 – Siemens revenue – 1997 - 2003
Table 80 – Communications revenue by segment – 2003