A new study on Broadband Strategies And Potential: Cisco, Broadcom, And Qualcomm Market Shares and Forecasts, Worldwide, 2010Â]2016. The 2010 study has 325 pages, 126 tables and figures. Broadband markets are big. Ethernet routing and switching at $22.6 billion in 2009 is anticipated to reach$52.5 billion by 2016. 3G cellphone IC components markets at $26.8 billion in 2009 are anticipated to reach $52.7 billion by 2016. These forecasts for broadband segments indicate the growth that comes from worldwide market penetration of broadband.
Broadband market driving forces are articulated in part through the Internet on Ethernet networks and through wireless handsets. There are 4.7 billion wireless handset users. Cell phones have changed the world for ever, they are inexpensive, affordable to almost every person on earth. Broadband is bringing the Internet to cell phones.
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Broadband brings a new world order, literally.
The three broadband leaders Cisco, Qualcomm and Broadcom illustrate the market strategies that work in this new world order. The ability to embrace broadband and make it work has been elusive to virtually every other company. Broadband market driving forces are a result of being able to provide services aggregation on the Internet. Performance, service capabilities, reliability, and efficiencies are being achieved in a compact form factor.
Cisco has seen very strong growth in the last quarter of 2009, exceeding its own optimistic expectations. Cisco saw very strong balanced growth perspective in almost all major geographic and market segment categories. While most markets around the world are improved, Cisco was especially pleased with product booking growth in the U.S. in Q4 2009, up 17% y/y. Based on business momentum in prior economic recoveries, this recovery, from a capital spending perspective, is very strong and moving into the second phase.
Key market transitions are being made relative to virtualization and video networking productivity and growth in network loads. These markets are set to evolve even faster than anyone has thought. Cisco, Qualcomm and Broadcom are positioned to leverage broadband market growth. These market participants continue to be very aggressive in both internal innovation commitments, as well as partnership and acquisition strategies.
According to Susan Eustis, President of Market Research, ÂgWorldwide broadband markets are poised to achieve significant growth as broadband finds new uses and leverages existing ones. Costs of broadband devices are expected to decrease rapidly in response to the continuing economies of scale. Market strategies of the leaders Cisco, Qualcomm, and Broadcom are compelling in their innovation and flexibilityÂh.
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Broadband network customers choose a Cisco platform to build critical BSS network because Cisco has the ability to deliver a total solution. There is a clear strategic roadmap that has been proven. Cisco is positioned as a valuable broadband technology partner. This is a crucial factor that contributes to Cisco big wins in the field, including the China Telecom deal. China Telecom selected Cisco over the competition China Telecom is committed in optimizing its WAN infrastructure to support growing business demands.
Cisco broadband networks are efficient. The China Telecom project implementation started in October 2008 and was completed within 3 months. Cisco strategy centers on the increasing role of intelligent networks, collaboration and Web 2.0 technologies. The United States, Europe, China, India, and emerging countries are target markets. The network is the platform. Broadband depends on network resource management and realignment.
Cisco strategy is to expand its share of customer information technology spending. The focus is on core networking capabilities. It has a continuing effort to expand into product markets similar, related, or adjacent to those in which it is active.
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