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Network Equipment Providers (NEPs)

Telecom Network Equipment Manufacturers (NEMs) are benefiting from a modest recovery in the telecoms industry: in 2004 almost all NEMs delivered excellent financial results.

However, the telecoms industry is showing all the signs of a rapidly maturing industry, as demonstrated by continually falling prices, eroding margins, commoditization of products, and stagnation in demand.

To face the future in better shape, several NEMs are diversifying into solutions and services that provide better margins and stable revenue stream. However, given the cultural and organisational issues, and the overwhelmingly technical backgrounds that most NEMs come from, the move from products to solutions/services will be a challenge for most. The next few years are crucial.

STL works with many of the major NEPs on these issues.

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