Summary
1. The smaller independent telcos in the US may be willing to take a chance on Huawei Technologies in broadband access. 2. Stimulus funds should lead to a lot more activity and a greater likelihood of the supplier breaking into this sector. 3. That “Huawei will not lead with price as the main way to win carrier business” is disingenuous.
Analysis
The idea that “the vendor has already lost several engagements because others gave up more profit margin” begs the question – how can the executive be sure of the cost structures of his competitors? Also, the statement still does not preclude the vendor from offering the lowest prices in a bid. In addition, concerning “a large North American marketing and business development staff [being] a luxury it wouldn't require if all that was needed was to lower prices” – could be viewed to be true on its face. Carriers are not just going to look at price. However, it is a luxury that the vendor can easily afford given its international market performance. Also, its strategy is to bombard carriers with substantial differences in pricing – and that takes more people. Moreover, there are no technology differentiators mentioned for any market in the source article.
While in the long-haul, it may have a shot at getting some business, such as from companies that do not mind going cheap and dirty, like Global Crossing, its best opportunity may be with GPON in the RLEC space. Still, companies such as Calix, Occam Networks, Enablence Technologies, and Adtran will be fighting hard to offer a combination of lower cost as well as potentially much superior and reliable technology.
