Worldwide WLAN market reaches nearly $5 billion in 2010
A recent research report has revealed that the combined retail and enterprise worldwide wireless local area network (WLAN) market segments experienced year-over-year market growth of 12.4% for the full year 2010 and quarter-over-quarter growth of 11.6% in the fourth quarter of 2010 (4Q10). The enterprise segment paved the way in 4Q10 with impressive 34.9% year-over-year growth and 12.3% quarter-over-quarter.
As per researchers, the tremendous momentum behind smart mobile devices and the continued proliferation of higher performance 802.11n networks are driving enterprises to move forward with upgrades, extensions, and replacements of their wireless infrastructures. Researchers expect these trends will continue over the next several quarters as 802.11n dominates and becomes the de facto standard in the enterprise.
Additionally, the retail-class WLAN market continues to stabilize from previous quarterly declines. Despite tight consumer spending and concerns about the economy, this segment of the market grew 11.1% quarter-over-quarter and 11.2% year-over-year in 4Q10. Dropping prices and increased consumer interest in networked home entertainment applications will continue to support this segment going forward.
Key Vendor Updates
- Cisco’s enterprise WLAN revenue capped a good year with strong growth in 4Q10, growing 43.4% year-over-year and 16.3% quarter-over-quarter. For the full year 2010, Cisco grew revenues 30.7%. Cisco’s Linksys consumer division, after a decline in 3Q10, grew 14.1% quarter-over-quarter in 4Q10.
- Aruba had an exceptional 4Q10 with branded revenue increasing 13.5% quarter-over-quarter and 72.2% year-over-year.
- HP recorded 22.4% year-over-year growth in 4Q10, whereas Motorola had a weaker quarter for WLAN declining 11.6% year-over-year
Aegis and Saudi Telecom Form Joint Venture to Transform Customer Care in the Region
Saudi Telecom Co. (STC), Saudi Arabia’s largest telecom operator and Aegis, a global outsourcing services company and part of the $15 billion Essar Group, today announced a landmark strategic partnership, which would see Aegis managing STC’s entire customer care operations including billing, directory enquiry, collection, verification.
Aegis, a leader in total customer lifecycle management, serves over 150 clients through a network of 47 delivery centers spread across 11 countries. It has more than 50,000 employees and serves a diversified base of customers in Banking, Financial Services, Insurance, Telecom, Healthcare, Travel & Hospitality, Consumer Goods, Retail and Technology.
Aegis and STC will form a joint venture, Call Centre Company (CCC), to provide customer care to STC’s 28 million customers in Saudi Arabia. Initially, STC will transfer 550 agents across two directory-assistance centers. Over the next 18-24 months, Aegis will re-badge the remaining 4,500 STC customer care agents.
Both partners would have near-equal stakes in CCC, with STC holding 50% plus one share, and Aegis the rest. Aegis would have operational control and responsibilities. CCC would enjoy an exclusivity contract with STC. Besides targeting other customers in Saudi Arabia, CCC would also pursue customer care opportunities in Bahrain and Kuwait.
“STC has been a pioneer in the telecom landscape of Saudi Arabia and now has broadened its horizon to focus on other growth markets like the Gulf states, Africa, and India. We will increase our focus on our core operations, such as providing next generation telecommunication service to our customers. We are happy to have found an able partner in Aegis, we are confident Aegis would provide a great level of satisfaction to our customers, given their vast experience in managing customer experience across multiple geographies,” said Saud Al Daweesh, Group CEO, STC.
“We are pleased to be selected by STC in this landmark deal which not only demonstrates the visionary thinking of STC but also endorses Aegis’ expertise in managing customer experience,” said Aparup Sengupta, Managing Director & Global CEO, Aegis. “This deal would help STC vary their fixed cost and free up their management bandwidth to focus on emerging opportunities. This would also provide a huge boost to Aegis’ West Asia presence, since the joint venture would actively seek new businesses. We have aspirations of making this the largest BPO operation in the region.”
About Aegis
Aegis is a world-leading outsourcing services partner for more than 150 clients and with over two decades of leadership in total customer lifecycle management. The company has more than 50,000 employees across 47 locations, with a presence in 11 countries, serving verticals such as BFSI, Telecom, Healthcare, Travel & Hospitality, Consumer Goods, Retail and Technology. The company specializes in tailor-made solutions that cover the entire spectrum of customer and business experiences — across business processing, technology, and shared services — and offers customized engagement models to further facilitate the ease of doing business. Aegis is wholly owned by the Essar Group — a US$15 billion conglomerate. For more information, please visit www.aegisglobal.com.
About STC
Saudi Telecom owns and operates the largest, most reliable and diverse state-of-art telecommunications infrastructure, with investments in major terabit-size submarine cable systems passing through the Region, a self-healing national backhaul network, and multiple border-crossing terrestrial fiber optics links. As a consequence, Saudi Telecom has succeeded in becoming the leading Wholesaler within the Region by fully addressing the telecommunications requirements of its domestic and international customers at very attractive terms and with innovative services and unparalleled connectivity. STC, nowadays working in 10 different markets through its subsidiaries and affiliates having an access to more than 100 million subscribers. For more information, please visit www.stc.com.sa.
Canberra locks Telstra fragment deal
Australia’s telecommunication sector is set to face a vital test in parliament today after the government forged a deal to divide Telstra into its retail and wholesale arms.
The legislation, which was agreed with independent lawmakers, is a prerequisite for Telstra, going ahead with its planned split into two. A new entity, NBN Co, will manage the fibre-optic national broadband network.
Australia’s Labor government, which lacks a majority in both houses of parliament, had faced stiff opposition to its telecoms laws, threatening a preliminary deal between the government, Telstra and NBN Co.
As per Christian Guerra, an analyst at Goldman Sachs in Melbourne, the passing of the legislation was a necessary step in the establishment of the new network. They believe the government is anxious and is willing to compromise to make progress on the NBN project. Given the political will, along with Telstra’s strong desire for progress, they expect a definitive deal between Telstra, NBN Co, federal government will be reached by the end of 2010.
The Labor government only won over independent legislators after reluctantly agreeing to make public details of the new network’s business plan. They show that the network will cost an estimated $35.7 billion, lower than the government’s previous forecast last year of $43 billion.
The cost of the network does not include an estimated $13.8 billion that NBN Co will pay Telstra during the next decade to access the telecoms group’s customers and infrastructure.
However, according to NBN Co that figure will be more than offset by increased revenues after Telstra’s customers have migrated across to the new network. The government has stated that it will eventually privatize NBN Co.
Australia Raises Pressure on Telstra to Split
Australia has renewed its push to split former state telecoms monopoly Telstra into retail and wholesale arms as part of ambitious plans for a national high-speed broadband network.
According to Prime Minister Julia Gillard, a landmark bill re-introduced on Wednesday would make the telecoms market more competitive and productive and was a critical step in rolling out the National Broadband Network (NBN).
The bill could show the first major test for Gillard’s fragile coalition government, which will depend on a handful of minority lawmakers to overcome hostility to the plan from the conservative opposition.
According to Gillard referring to Telstra, for too long Australian consumers have had the experience of a telecommunications sector with far too much market concentration in one company. With this legislation we can effectively restructure the industry… to deliver broadband services to all Australians at a uniform wholesale price. This reform is vital because it will drive lower prices, better quality and more innovative services.
US$42 billion US NBN, to be rolled out by a government-owned corporation, aims to boost the economy by providing 93% of the vast country’s population with superfast Internet by 2017.
Gillard’s government claims the step will revolutionize workplaces and services including manufacturing, agriculture, education and health for the sprawling nation, and will connect remote residents to doctors and online schools.
Telstra, formerly owned by the government, is the nation’s dominant telecoms firm by subscribers and revenue. By splitting it into wholesale and retail arms, the government hopes to loosen the firm’s stranglehold on the market.
Telstra chief executive David Thodey welcomed the bill and called for its prompt passage. On balance, the company supports the passage of the bill. The company believes the interests of Telstra shareholders would best be served by the bill being passed this year so that a definitive agreement on the involvement in the NBN can be reached quickly.
If implemented, Telstra would likely to become the national network’s largest customer, transferring its customers from its copper wire and cable networks to the new fibre optic system to be built and operated by NBN.
Malcolm Turnbull, the opposition’s communications spokesman, introduced a private member’s bill calling for the provision of a 10-year business plan on the NBN and a cost-benefit analysis to report by May 2011.
