SMSC Competitive Overview 08
SMSC Competitive Overview 08
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Competitive overview
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DRAFT 8
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21st Feb 03
Suzi Byer
2003 by LogicaCMG All rights reserved. This document may not be copied in whole or in part without the prior written consent of
CMG Wireless Data Solutions. The information in this document is subject to change without notice and should not be construed as a
commitment by LogicaCMG. LogicaCMG assumes no responsibility for any errors that may appear in this document. The software
described in this document is furnished under license and may be used or copied only in accordance with the terms of such license.
Products mentioned in this document are identified by the trademarks or service marks of their respective companies or organisations.
Table of Contents
Competitor Groups...............................................................................................3
1.1
Prime Competitors................................................................................................................ 3
1.2
1.3
Alternative competitors......................................................................................................... 4
Key Competitors...................................................................................................5
2.1
2.2
SchlumbergerSema.............................................................................................................. 7
2.2.1
Company Overview............................................................................................... 7
2.2.2
Products................................................................................................................ 7
2.2.3
Services................................................................................................................. 8
2.2.4
Partnerships.......................................................................................................... 8
2.2.5
Customers............................................................................................................. 8
2.2.6
SWOT.................................................................................................................... 9
2.2.6.1
Strengths........................................................................................... 9
2.2.6.2
Weaknesses....................................................................................10
2.2.6.3
Opportunities...................................................................................10
2.2.6.4
Threats............................................................................................. 11
2.2.7
Analysis............................................................................................................... 11
2.2.7.1
How to Attack Sema.........................................................................11
2.2.7.2
How Sema will Attack Us.................................................................12
2.3
Huawei Technologies.......................................................................................................... 12
2.3.1
Company Overview............................................................................................. 12
2.3.2
Products.............................................................................................................. 13
2.3.3
Services............................................................................................................... 13
2.3.4
Partnerships........................................................................................................ 13
2.3.5
Customers........................................................................................................... 13
2.3.6
SWOT.................................................................................................................. 14
2.3.7
Elaborate on SWOT, provide more details...........................................................14
2.3.7.1
How LogicaCMG can attack Huawei...............................................15
2.3.7.2
How Huawei can attack us..............................................................15
2.3.8
Analysis............................................................................................................... 16
2.4
Nokia.................................................................................................................................. 16
2.4.1
Company Overview............................................................................................. 16
2.4.2
Products.............................................................................................................. 16
2.4.3
Services............................................................................................................... 17
iii
2.4.4
Partnerships........................................................................................................ 17
2.4.5
Customers........................................................................................................... 17
Some of Nokias SMSC customers include:........................................................................17
2.4.6
SWOT.................................................................................................................. 18
2.4.6.1
Strengths.........................................................................................18
2.4.6.2
Weaknesses....................................................................................19
2.4.6.3
Opportunities...................................................................................20
2.4.6.4
Threats............................................................................................20
2.4.7
Analysis............................................................................................................... 21
2.4.7.1
How to Attack Nokia........................................................................21
2.4.7.2
How Nokia will Attack Us.................................................................22
2.5
Comverse........................................................................................................................... 22
2.5.1
Company Overview............................................................................................. 22
2.5.2
Products.............................................................................................................. 23
2.5.3
Services............................................................................................................... 23
2.5.4
Partnerships........................................................................................................ 23
2.5.5
Customers........................................................................................................... 23
2.5.6
SWOT.................................................................................................................. 24
2.5.6.1
Strengths.........................................................................................25
2.5.6.2
Weaknesses....................................................................................25
2.5.6.3
Opportunities...................................................................................26
2.5.6.4
Threats............................................................................................26
2.5.7
Analysis............................................................................................................... 27
2.5.7.1
How to attack Comverse.................................................................27
2.5.7.2
How Comverse will Attack LogicaCMG...........................................27
2.6
Telsis................................................................................................................................... 28
2.6.1
Company Overview............................................................................................. 28
2.6.2
Products.............................................................................................................. 28
2.6.3
Services............................................................................................................... 28
2.6.4
Customers........................................................................................................... 28
2.6.5
Partnerships........................................................................................................ 28
2.6.6
SWOT.................................................................................................................. 29
2.6.7
Analysis............................................................................................................... 29
Overall conclusions............................................................................................31
iv
Competitor Groups
Key Competitors
SWOT
Table 1:
Table 1: LogicaCMGs SMSC SWOT
Strengths
Weaknesses
Solutions provider/partner
Threats
Opportunities
Managed Services
Emerging markets
Opex pressure
Performance upgrades
Interconnect (multi-technologies)
Cost reduction/rationalisation
Greenfield operators
MVNOs
IP or ATM connectivity
Strengths
-
We are Messaging! Solid real-world messaging reputation for high performance, reliability and
availability, with strong references.
8/10 largest operators in terms of the highest data ARPU use a LogicaCMG SMSC
The new N+1 scalability concept means that performance and throughput is unlimited.
Particularly suitable for voting and high-peak traffic scenarios.
By using open standards and by not being terminal-dependent, LogicaCMGs combined offering
means we can cater for all needs and requirements.
2003 LogicaCMG Key Competitors
We dont just deliver an SMSC, we deliver the expertise and other associated products to ensure
our customers get maximum value out of their messaging businesses.
By centralising LDAP provisioning, SS7 access, SNMP management etc; by utilising the N+1
scalability concept, online upgrades, and through rationalisation of existing H/W, LogicaCMGs
offer becomes extremely cost competitive!
2.2 SchlumbergerSema
2.2.1
Company Overview
Schlumberger is a global technology services company with corporate offices in New York,
Paris and The Hague. With more than 80,000 employees, in 100 countries, the company
consists of two businesses:
Oilfield Services, with turnover of $8bn and 50,000 employees, focuses on oil and
gas explorations, production services, information technology and network solutions.
20 years in telecommunications
2.2.2
They claim to have one of the world's largest installed bases of business support
systems including more than 65 million post-paid subscribers, and lead the world in
prepaid services with 85 operators and 60 million prepaid subscribers.
Semas global market share in SMSC installations is 7.13% (35 installations)
Products
-
Business support including customer care and billing, prepaid platforms, interconnect
services, mediation, provisioning, and network management
Gateways for mobile commerce, electronic payment, WAP, messaging and roaming
SchlumbergerSema solutions support GSM, TDMA, CDMA, GPRS and UMTS standards
and cover a broad range of services including:
Short Message Service, Messaging Gateways, Multi-Media Messaging
Location Based Services, Unified Communications, Mobile Instant Messaging
Mobile E-mail Solutions Over-The-Air Activation USSD Equipment Identity
Enhanced Calling
2.2.3
Services
Sema has 30 years' experience in systems integration. It also provides consulting and
managed services and business process outsourcing for numerous industries.
2.2.4
Partnerships
Sema partners with numerous industry players such as: Cap Gemini Ernst & Young, Oracle,
Siebel, Nortel, Cisco, Siemens, Sonus Networks, Sun, EDS, Ericsson, Mirapoint, Alcatel,
AOL, Bea Broadvision, Nextel, Compaq, People Soft etc. It also says that it partners with:
Verizon, Vodafone, T Mobil, France Telecom, TIM, and Telefnica.
2.2.5
Customers
Sema claims to have 60 SMSC customers. 35 are known to LogicaCMG. They say they
support 15 per cent of all SMS users worldwide (as of December 2000). Some key
customers are found below.
EMEA
- Vodafone UK
Americas
- Verizon, USA
Asia Pacific
- SmarTone, Hong Kong
O2 Ireland
Vodafone, Australia
Bouygues, France
GMCC, China
Blu, Italy
Lusacell, Mexico
Cingular, USA
PTC, Poland
Panafon, Greece
Vimplecom, Russia
Eircell, Ireland
10
2.2.6
SWOT
Table 2:
Table 2: Sema SMSC SWOT
Strengths
Weaknesses
Threats
Opportunities
2.2.6.1 Strengths
- Reliable, fully redundant, scalability and high-performance system
Semas original SMSC is designed on Open VMS. Therefore they were able to develop a
reliable system with high performance.
-
IPR shared with Vodafone who gets 45% of all software licence fees with special arrangement
with Vodafone UK.
As Vodafone has part ownership of the Sema SMSC IPR, they build up a solid position
within the Vodafone group.
11
Sema has installations on most Vodafone Tier 1 subsidiaries such as Vodafone UK and
Verizon.
-
2.2.6.2 Weaknesses
- Heavily dependent on Vodafones jurisdiction
Semas main references are in the Vodafone group. They have not yet experienced any
replacements in this. Outside the Vodafone group they have: Maxis, Malaysia (former
Logica SMSC) and partly at Bouygues (former CMG SMSC).
-
Low credibility due to the fact that messaging is not core business
As messaging is not the core business, this department had to deal with a number of cost
cutting exercises. This resulted in delayed product development and lack of resources. Also
the response times to customer queries increased.
2.2.6.3 Opportunities
- Leverage position within the Vodafone Group especially within China Mobile
The Vodafone group has a minority share in China Mobile. Vodafone can use this influence
to push Sema in China Mobile.
-
Attack former Logica customer base. Increase North American market share whilst competitors
focus on Europe
Sema has already a solid market share in North America and with that a strong reference in
this part of the world. With their Unix SMSC they can attack the former Logica customer
base.
2003 LogicaCMG Key Competitors
12
2.2.6.4 Threats
- New Unix SMSC may not prove itself
The new Unix system has not yet proven itself. Most Unix SMSCs do not have a track
record for performance and reliability. In a developed market with pressure on Capex and
Opex, operators are reluctant to choose unproven solutions.
-
Other messaging vendors could occupy Semas space in the Vodafone group: LogicaCMG in
Europe and LogicaCMG and Comverse in North America
As other vendors such as LogicaCMG are further ahead with messaging compared to
Sema, the Vodafone group may consider replacing Sema SMSC. Logica CMG has
reference sites within the Vodafone group such as D2-Vodafone, Telecel and Vodafone
Ireland. These subsidiaries are out performers in the SMS market. Comverse has a strong
Voicemail installed base. Comverse can cross-sell SMSCs e.g. in their North America
Voicemail customer base.
2.2.7
Analysis
This section presents the conclusions of comparing Semas and LogicaCMGs SWOTs. The
outcome provides the direction for the SMSC Competitive Management document, and the
SMSC attack plan for Sema. The conclusions of this analysis are presented in two
subsections:
1. How LogicaCMG can most effectively attack Sema. The conclusions in this section have
been reached by matching LogicaCMGs strengths with Semas threats, and
LogicaCMGs opportunities with Semas weaknesses; and identifying where Sema is
most vulnerable.
2. How Sema is most likely to attack LogicaCMG. This section is the result of the inverse
exercise: matching Semas strengths with LogicaCMGs threats, and Semas
opportunities with LogicaCMGs weaknesses.
2.2.7.1
LogicaCMG is the market leader in messaging. For us, it is part of the core business.
Therefore, LogicaCMG has a better understanding of the messaging market and
operator needs in this field compared to Sema.
2003 LogicaCMG Key Competitors
13
Whilst Sema is reducing its investments in messaging, LogicaCMG has kept its
development expenditure at the same level in real terms. This means that LogicaCMG
is able to further develop and tailor the SMSC to new market requirements.
Make optimal use of the rumour, that Sema divesting its messaging, billing and cards
product business. Although this is a rumour and should be treated with caution, the
organisation was recently changed to make each product independent.
2. In the Sema SMSC installed base, opportunities can arise in 2003 for replacement and
deliveries as second vendor. The most likely areas where the Sema customer is
dissatisfied with the Sema SMSC and LogicaCMG has a better offering are:
2.2.7.2
3G
Throughput
Quality of Service
High Opex
2. In a competitive confrontation with LogicaCMG, Sema will use the following points to
position themselves against LogicaCMG:
Company Overview
Huawei Technologies was established in 1988. It is a private high-tech enterprise fully
owned by its employees.
A total staff of over 19,000:
45% R&D = 9000 people; Research Centres in Silicon Valley, Dallas, Stockholm,
Moscow and Bangalore
35% Marketing, Sales & Customer support = 6650 people; 40 branch offices and
customer support worldwide
14
2.3.2
Products
Huawei specialises in research and development, production and marketing of
communications equipment, providing customised network solutions for telecom carriers in
fixed, mobile and data communications and optical networks. Ranging from switching,
intelligent networks, support networks, GSM, GPRS, W-CDMA, CDMA 1x, ATM to other key
telecom technology fields. Most importantly, Huawei's products are based on independently
designed ASIC chips which allows Huawei to provide solutions from start to finish, from chip
to network.
Huawei (together with ZTE and most other Chinese telco vendors) has never spent money
on inventions or long-term R & D. Instead, it is copying the concepts and ideas from the real
market leaders, then within an extremely short period, creating the product and starting to
sell even before the product is ready. Their huge engineer base is mainly used for this
purpose. Furthermore, the goal for their business is purely for market share, not for profit.
2.3.3
Services
Services can be tailored to customer needs.
2.3.4
2.3.5
Partnerships
Customers
Huaweis SMSC customer base is mainly within China Mobile and China Unicom. The only
SMSC outside China is Cashin in Cambodia. For their networks and IN systems Huawei has
many customers in the Asia Pacific region, Russia, Latin America and Africa.
15
2.3.6
SWOT
Table 3:
Table 3: Huawei SMSC SWOT
Strengths
Weaknesses
SI partnerships/capabilities
Threats
Opportunities
Greenfields operators
Channel Partners
Replacements
2.3.7
16
2.3.7.1
Where should we attack Huawei and where should we pre-empt them attacking us?
The obvious country to attack them is China: China Mobile, China Unicom and China
Telecom. Considerations: local partner / JV and more local feed on the ground essential.
Likely partners: Siemens, Nortel, Motorola and Alcatel. Dedicated messaging products for
Chinese market: (D-)SMSC, SMS TV, MMSC, Service Enablers and Service Network. Local
Research centre for TD-SCMDA . Are the margins in China attractive enough? QoS will
become important in China; even today China Mobile and China Unicom are complaining
that revenue from content providers will drop when person-to-person SMS increases. CDMA
1xRTT at China Unicom is a specific opportunity; we know Huawei has developed a CMDA
SMSC & MMSC but has so far not sold this to China Unicom.
In emerging countries like (part of) APAC region, Latin America, Africa and Russia
LogicaCMG has to pre-empt very aggressive gateway sales efforts by Huawei and counter
these by putting much more emphasis on SMS TV, MMSC, Total Messaging Solution,
Service Enablers and the whole Service Network concept.
2.3.7.2
17
2.3.8
Analysis
Huawei is known to be working on a LogicaCMG replacement strategy for our SMSC,
MMSC and CBS products. The stereotypical perceptions of European and other countries,
concerning doubts around intellectual property integrity and poor quality products from
China, are still potential obstacles, if only on a perception level. The biggest challenge is to
get the West to appreciate that (the Chinese) have their own capabilities, said James Ennis,
managing director of Apella, Huawei's systems integrator partner in the U.K. and Ireland.
They're not copyists. All of this stuff is really their own intellectual property. [Source:
Chinese vendors Huawei and ZTE seek European lab approval, Comms Week International,
12.11.01]
2.4 Nokia
2.4.1
Company Overview
Market leader in mobile phones and number two in network infrastructure and global
customer base. Nokia Networks is a front runner in providing mobile, broadband and IP
networks and related services. They develop mobile data applications and solutions for
operator and Internet service providers, aiming at leadership in IP mobility core, radio and
broadband access for network providers and operators.
R&D spend 3 bn
Most recently, Nokia moved its Service Platforms including the messaging products such as
SMSC, MMSC into the mobile phone division. This will provide unique synergies and shows
the strategic importance associated to service platforms given its leadership in the mobile
phones.
2.4.2
Products
Nokias Messaging and Presence suite is made up of:
-
18
2.4.3
Services
Nokia is said to provide services to help operators make the most of their network
investment. This covers the entire process of planning, building and operating a network,
maintaining and optimising network performance, training operator staff and integrating
solutions that enable new mobile services.
Nokia's services for operators comprise a global partner network and Nokia Online Services,
which provides round-the-clock support via the Internet.
2.4.4
Partnerships
Nokia divides its partnerships into the following categories:
2.4.5
Customers
Some of Nokias SMSC customers include:
EMEA
- Omnitel, Italy
-
Connect Austria
Americas
- Neuvatel, Bolivia
Airtel, India
Pannon, Hungary
Radiolinja, Estonia
Netcom, Norway
Ben, Netherlands
Polkomtel, Poland
Cosmote, Greece
Orange, Denmark
Telia, Finland
Ittissalat Al-Maghrib,
Morroco
Digicel, Venzuela
Asia Pacific
- Smart, Philippines
19
2.4.6
SWOT
Table 4:
Table 4: Nokia SMSC SWOT
Strengths
Weaknesses
End-to-end solution
Threats
Opportunities
2.4.6.1 Strengths
- Large workforce in Nokia Networks (19,000)
Nokia Networks has a significant workforce, which has made it possible to implement their
MMS vision in their MMSC. The cost cuttings in Nokia have been less drastic than in
Ericsson.
-
20
Nokia Smart messaging, which is similar to EMS, only works properly on a Nokia handset.
To date Nokia handsets do not support EMS.
-
2.4.6.2 Weaknesses
- Expects continued decline in profits
Although Nokia is still profitable (unlike Ericsson), they expect their profit to continue to
decline (-2% for 2001; -5% for 2002) at Nokia Networks.
One of the weapons that Nokia use to fight their MMSC battles is vendor financing. Nokia
will have less room for providing financing to their customers, as their Capex will decline
with an expected 50%.
-
21
The other handset vendors are reluctant to give openness to Nokia in interoperability testing
with Nokias MMSC, since they know Nokia is their competitor in handsets and will use any
intelligence it gets on their handsets MMS capabilities.
-
Do not fully understand support systems and processes such as billing, provisioning etc.
Nokia has not focused on what an SMSC means from a business point of view. Issues on
how to help the operator with billing and provisioning are generally not addressed.
2.4.6.3 Opportunities
- Establish wireless messaging track record
With its traditional visibility and brand recognition in the handset market, and a high market
share in MMSCs, Nokia finds itself in an excellent position to earn/build its reputation in the
wireless messaging area.
-
Leverage MMSC for cross-selling SMSC and routing products. Target former Logica customers
due to product rationalisation within LogicaCMG
Nokias strong installed base for MMSC can potentially be used for cross-selling for SMSC.
For LogicaCMG there is a threat in the Tier 1 former Logica customer base in EMEA.
Operators such as O2 UK and Ireland and Orange UK have all purchased a Nokia MMSC.
2.4.6.4 Threats
- Losing out in CDMA markets as they only have a GSM solution
Nokia has no SMSC installed base on a CDMA network. With interoperability issues being
addressed, CDMA is a growth market for SMS. By not having a CDMA solution, Nokia
cannot grow in this area.
-
22
GPRS and 3G are about colour and high quality audio. The Japan-oriented handset
manufacturers started on the learning curve of producing colour screens, polyphonic audio,
integrated cameras and picture and movie playback in early 2000. Nokia is at least a year
behind that and could be hurt if these Asian players enter the GSM/GPRS domain.
3G infrastructure market grows slower than expected
The profit decline in Nokia Networks will steepen if the market for 3G networks does not
take off soon and the operators that have been financed by Nokia are not starting to make
payments.
Importance of Networks (3G Infrastructure/Messaging) will compel the Nokia group to
continue sustaining and investment activities for 3G networks, even when revenues are
below expectations. This could lead to cost reductions in terms of lay-offs and further
reduction of effective SMSC and MMSC expertise. Nokia Networks contributed to 28% of
Groups total revenue.
2.4.7
Analysis
This section presents the conclusions comparing Nokias and LogicaCMGs SWOTs. The
outcome provides the direction for the SMSC Competitive Management document, and the
SMSC attack plans for Nokia. The conclusions of this analysis are presented in two
subsections:
1. How LogicaCMG can most effectively attack Nokia. The conclusions in this section have
been reached by matching LogicaCMGs strengths with Nokias threats, and
LogicaCMGs opportunities with Nokias weaknesses; and identifying where Nokia is
most vulnerable.
2. How Nokia is most likely to attack LogicaCMG. This section is the result of the inverse
exercise: matching Nokias strengths with LogicaCMGs threats, and Nokias
opportunities with LogicaCMGs weaknesses.
2.4.7.1
2 out of the top 3 operators in terms of wireless data revenues use LogicaCMG for
wireless messaging1, 8 out of the top 10 use the LogicaCMG SMSC2; LogicaCMG
does not just claim a large customer base but also enables success for our customers
in wireless data; Ericsson has a track record in voice, not in wireless data.
The worldwide top 3 operators in wireless data revenues as a percentage of total wireless revenues are SMART of the
Philippines (39%), Globe of the Philippines (33%) and Telenor of Norway (20%). Smart uses Nokias SMSC and MMSC,
Globe and Telenor use LogicaCMGs SMSC and MMSC.
2
The worldwide top 10 operators in wireless data revenues as a percentage of total wireless revenues are SMART
(Philippines), Globe (Philippines), Telenor (Norway), NTT DoCoMo(Japan), J-Phone (Japan), Telefnica Mviles (Spain),
Vodafone (Germany), O2 (UK), Wind (Italy) and Orange *UK). Of these 10, SMART has a Nokia SMSC, NTT DoCoMo has
an in-house developed SMSC, the other 8 use LogicaCMG.
1
23
LogicaCMG has strong capabilities in the area of Billing and Customer Care; B&CC
is not in the core expertise of Nokia.
2. In the Nokia SMSC installed base, opportunities can arise in 2003 for replacement and
deliveries as second vendor. The most likely areas where the Nokia customer is
dissatisfied with the Nokia SMSC and LogicaCMG has a better offering are:
2.4.7.2
Throughput
Quality of Service
High Opex
Bundle SMSC with MMSC with handsets, network, applications, discount the SMSC
Offer financing
2. In a competitive confrontation with LogicaCMG, Nokia will use the following points to
position themselves against LogicaCMG:
Nokia is the leader in MMS and has the highest market share in wireless handsets
and MMS client software and is therefore best prepared to work as a messaging
business partner; LogicaCMG has no position in handsets.
Nokia offers a complete, end-to-end solution for SMS and MMS, has everything that
is required in-house or available through Forum Nokia; LogicaCMG is not able to
offer end-to end SMS.
2.5 Comverse
2.5.1
Company Overview
Israeli and American based Comverse is a provider of software and systems enabling
network-based multimedia enhanced communications services. These services include
enhanced services systems and software, which enable the provision of revenue-generating
value-added services including call answering with one-touch call return, short messaging
services, IP-based unified messaging (voice, fax, and email in a single mailbox), 2.5G/3G
multimedia messaging (MMS), wireless instant messaging, wireless data and Internet-based
services, voice-controlled dialling, messaging and browsing, prepaid wireless services, and
additional personal communication services.
24
Today, it is said that almost one out of every two mobile subscribers enjoys the
personalised communications experience of Comverse Solutions.
2.5.2
Products
Messaging Solutions
Personal Communication
ISMSC
iTVGate
VoiSMS
MMSC
Voicemail (VMS)
UC/UM
VoiCD
Prepaid solution
Mobile Entertainment
2.5.3
Mobile Portal
Open.SMS
Services
Their Medalist Market Success Program is said to be the industry's most comprehensive
marketing consultation and support programme, designed to help customers position and
merchandise their services.
2.5.4
Partnerships
The Comverse Spark Alliance Program promotes cooperation in the development,
marketing and delivery of value-added, best-of-breed multimodal solutions. Comverse forms
alliances with with infrastructure vendors, system integrators, technology vendors,
application developers, and content providers. They say this enables them to rapidly
integrate new technologies and capabilities into existing and new revenue-generating
solutions.
Partners include Siemens, Ericsson, Nortel, Qualcomm, Texas Instruments, BitFlash,
Feather Mobile Systems, Vitaminic Signs, MAXware, WES, Sonus Networks, Sylantro,
Onset, InfoSpace among others.
2.5.5
Customers
Comverse has more than 400 wireless and wireline telecommunications network operators
in more than 100 countries. A selection can be found below.
2003 LogicaCMG Key Competitors
25
Americas
- Sprint PCS, USA
-
2.5.6
EMEA
- T-Mobile Austria
BellSouth affiliates,
Brazil & Peru
Telecom Personal,
Argentina
Telefnica, Chile
Infonet, Venezuela
Comviq, Sweden
Cesky Mobil
Ukraine Mobile
Communication
Asia Pacific
- PT Excelcomindo
Pratama, Indonesia
-
China Mobile
(Guangdong, Sichuan,
Heilongjiang, Hubei,
Beijing), China
SWOT
Table 5:
Table 5: Comverse SMSC SWOT
Strengths
Weaknesses
Strong Partnerships
Tailor-made solutions
26
Threats
Opportunities
Cross-selling opportunities
2.5.6.1 Strengths
- Aggressive Sales and Marketing
Comverse is buying market share. Analysing their pricing for Bayantel in the Philippines in
2000, they are more expensive compared to LogicaCMG. However, Comverses strategy is
never to the battle on pricing.
-
Strong Partnerships
Comverse has strategic partnerships with: Ericsson, Nortel, Qualcomm, Siemens and Texas
Instruments. Next to these they have partnerships with application providers (7), content
providers (19), technology providers (19) and infrastructure vendors (5).
2.5.6.2 Weaknesses
- SMSC not suitable for high traffic environments
Comverse claims that they can handle 3000 SMS/sec on a single point code. To date
LogicaCMG is not aware of a reference sustaining this claim.
-
27
Comverse has an all-in-one platform, including e-mail, web server and applications. The
market usually requires these services to be on separate platforms, as when the system is
down it means all services are down.
2.5.6.3 Opportunities
- Strong foothold in fixed market and hence large number of SMS over fixed opportunities
Their existing contacts with fixed operators can enable an easy road in for their fixed SMS
solution and push forward UC.
-
Cross-selling opportunities
Their voicemail installed base can potentially be used for cross-selling.
2.5.6.4 Threats
- Key accounts choose a better profiled messaging vendor
By the creation of LogicaCMG, Comverse risks the possibility that its key SMSC accounts
choose this global messaging vendor.
-
28
in Western Europe. As they do not yet have a good track record in developed SMS regions,
they risk replacements in under-developed regions when SMS takes off.
-
2.5.7
Analysis
This section presents the conclusions of comparing Comverses and LogicaCMGs SWOTs.
The outcome provides the direction for the SMSC Competitive Management document, and
the SMSC attack plans for Comverse. The conclusions of this analysis are presented in two
subsections:
1. How LogicaCMG can most effectively attack Comverse. The conclusions in this section
have been reached by matching LogicaCMGs strengths with Comverses threats, and
LogicaCMGs opportunities with Comverses weaknesses; and identifying where
Comverse is most vulnerable.
2. How Comverse is most likely to be attacking LogicaCMG. This section is the result of the
inverse exercise: matching Comverses strengths with LogicaCMGs threats, and
Comverses opportunities with LogicaCMGs weaknesses.
2.5.7.1
References: LogicaCMG is the main SMSC messaging vendor with a market share
of 47% in installations and 58% in subscribers. These include 8 out of the top 10
largest customers worldwide.
Quality of Service (QoS): the LogicaCMG SMSC has a high performance, is highly
scalable and fully redundant.
Market expertise: LogicaCMG can work with the operator as a business partner as it
has a solid understanding of the messaging market, a broad product portfolio and
system integration capabilities.
2. In the Comverse SMSC installed base, opportunities may arise in 2003 for replacement
and deliveries as a replacement or second vendor. The most likely areas where the
Comverse customer is dissatisfied with the Comverse SMSC and LogicaCMG has a
better offering are:
2.5.7.2
QoS issues
Competitive pricing
One step ahead: Use fixed operator contacts for wireline SMS
2. In a competitive confrontation with LogicaCMG, Comverse will use the following points to
position themselves against LogicaCMG:
2003 LogicaCMG Key Competitors
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2.6 Telsis
2.6.1
Company Overview
Telsis was founded in 1987 and has a staff of 250 people worldwide. The Telsis group
includes a research, development and production facility at its headquarters in Fareham,
England and local sales and support organisations in Germany, France, Spain, Italy, the
Netherlands, Singapore, Australia and North America. They offer a range of programmable
platforms and their goal is to enable operators to quickly develop and implement advanced
network services for competitive advantage.
Interesting to note Telsis has an German language option on their website.
2.6.2
Products
Telsis provides a range of value-added service platforms enabling fixed and mobile telecoms
operators to develop and implement advanced services faster and more efficiently within
any mobile, PSTN or IN configuration. Their portfolio includes:
Programmable switches
IN platforms
The company's main product line is the Ocean range of programmable platforms
which comprises three key elements a family of Ocean fastSSPs (Service
Switching Points), the Ocean fastIP (Intelligent Peripheral) and the Ocean fastSCP
(Service Control Point) together with a powerful visual service creation
environment and management system, the Ocean fastSCE. In addition, the Ocean
fastTC (Transaction Converter) connects the telephony and data worlds of SS7 and
TCP/IP.
Ocean elements can be deployed either stand-alone or in any combination within
both fixed and mobile networks.
2.6.3
Services
Telsis provides basic and advanced training sessions in the UK for the management and
maintenance of its Ocean range of products, Service Creation for fastSSP/fastSCP/fastIP.
Customised training may also be considered.
2.6.4
Customers
Vodafone UK, Jersey Telecom, BT, Deutsche Telekom, KPN Telecom, One 2 One,
Singapore Telecom, Telefnica, Powertel (Australia) and Telia.
2.6.5
Partnerships
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2.6.6
SWOT
Table 7:
Table 7: Telsis Router SWOT
Strengths
Weaknesses
Founded in 1988
250 staff
Knowledge in ICT,
infrastructure and network
technology
No major partnerships
Technology focus/driven
Threats
Opportunities
-
No country-/region-wide offering
2.6.7
IVR
Call centre
Sexy solution
Analysis
Telsis = operator-centric <--> LogicaCMG = service network-centric
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LogicaCMG itself (i.e. mindset, culture, slow response, lack of sufficient internal
communication and collaboration) is its biggest threat
Telsis SWOT will be further updated. For more information, please contact Marketing.
2.6.8
Strengths
Weaknesses
Cheap
Telco class?
Limited references
User-programmable platforms
Threats
Opportunities
-
Emerging markets
Credibility
Small player
OPEX pressure
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