SEAP Market Outlook – January 2010
Ari Niskanen
Anite Singapore Pte Ltd SEAP Market Outlook – Major Sales Contributions
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Currently just sligthly over budgeted level for the FY2010‐11 (ending end of April 2011).
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Good start for the year, 1Q was excellent.
Two of the best performing countries constitute nearly half of the total sales.
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Four largest countries roughly ¾ of total turnover (previous FY, five best performing countries covered ¾. Other markets to contribute in the last four months of the year to balance the risk.
Australia sales a positive surprise this year.
Nearly all sales coming from partner sales (vs. direct sales).
Increase from subcontractor sales as well as Managed Service projects.
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Sales at USD6M+ @ end Dec 2010.
FY budget USD9.6M
ALUMS India biggest single customer thus far, nearly USD1M sales.
Operator sales still in good levels but vendor market smaller (roll‐outs, installations, optimisation).
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It shall be seen how LTE will shape the marketplace.
SEAP Sales By Year
* Projected.
SEAP Sales by Year
k€
8000
7300*
7134
6658
7000
6180
5829
6000
4595
5000
3744
4000
3000
2400
2000
930
1000
460
0
2002
2003
2004
2005
2006
2007
Year
2008
2009
2010
2011
SEAP Market Outlook – Major Challenges Faced
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Biggest challenges in some of the lower performing countries include:
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Piratism a big factor in some markets (e.g. India, Indonesia and Vietnam) and existing in nearly all markets.
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Large investments in the previous year so this year more quiet, a so called market breather year. Some markets starting back from nearly zero levels.
Entries in new markets via right partners.
3G delays.
Some countries still feel the effect of the financial crisis e.g. in terms of currency devaluation.
We managed to even purchase a cracked Nemo kit and trace the source and dongle. Different actions are in consideration.
Increased measures to fight piratism in the products and also in our messages to the industry.
Operators squeezing vendors + certain vendors dumping prices to win markets resulting in increased pressure for tool purchases by the vendors and their contractors.
⇒ Pressure to use pirated tools or to go for low end tools.
⇒ Important to work closely with operators to have our tools as preferred tools.
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LTE terminals availability.
SEAP Sales Channel Development
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New staff in India:
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New Sales Manager hire under consideration for Singapore office.
Anite Singapore to start taking care of Hong Kong, Macau and Huawei key account management for Huawei global operations.
New Head of Product Management and Technical Support, Mr. Jari Ryynänen.
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New Sales Manager, Mr. Moradhwaj Patle
New Technical Support Engineer, Mr. Ashish Waghmare
Will work together with our partner, TSH, to meet the many and complex customer requirements.
Moving from Beijing to Singapore.
Heading the APAC technical team and also provide expert consultancy services.
New partners needed for Bangladesh, Cambodia, Nepal and The Philippines.
Continuous support to our partners, both commercial and technical.
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Providing support to customers, but more importantly supporting and educating partners to gain more confidence in commercial negotiations and more technical expertise.
Our partners are the first line commercial contact and technical support for all customers.
SEAP Market – External Market Enablers
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Operator market:
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Benchmarking becoming more popular, up to 12 handsets requests.
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Not much investments yet in LTE but important to be involved in the trials.
In the long run, LTE will be our main market.
Rental requests increasing significantly.
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Subcontractors the main market to perform independent benchmarking exercises for operators.
The importance of the subcontractor market to grow further.
Balancing between different markets of high prices & low quantities and lower prices & higher quantities (note on scanner cases!).
LTE trials ongoing in some countries. Currently loaning our tools especially to NSN to be involved in the trials. –
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Increased focus on managing & measuring data calls.
Application and QoS testing.
In order to accommodate this need ourselves, we need to be equipped to handle the complex environment of rental business, especially in heavier HW based systems.
Ericsson account remains the big upside enabler.
Heading to beyond current fiscal year, new markets/countries (limited) and/or new products needed in order to keep the growth track.
SEAP Market Outlook ‐ Summary
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Overall there is a positive feel of the markets in terms of budgets availability from the operators side which is key for any investments also from the vendors and subcons.
More and more business from sub‐cons and Managed Service contracts.
Majority of the business coming from partners = partners are our strength.
Competitor landscape getting more complex as pirated tools can be considered as competing tools in many cases.
Continuous investments in partners and key personnel.
Increasing data service and benchmarking demand.
New products help us all to grow.