Gartner Dataquest Updates Telecom Equipment Manufacturer Ranking for 2000

Analysts say Prospects for 2001 Remain Unchanged - It is Going to be a Tougher Year

SAN JOSE, Calif., March 7, 2001 — The order within the top eight worldwide telecommunications equipment manufacturers for 2000 shifted even further than initially suggested, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).

Earlier estimates placed Nortel as the No. 2 vendor, but revised data (based upon clarifications and new information) indicate that it actually claimed the top spot. Nortel grew more than 40 percent on the year to leap from No. 3 in 1999 to No. 1 status in 2000 (see Table 1).

"Nortel's achievement was built upon a successful strategy of targeting key sectors both through organic growth and well-managed acquisitions," said Dean Eyers, group vice president for Gartner Dataquest's worldwide Telecommunications and Networking group. "It has balanced leading-edge technology skills and executed especially well in the high-growth optical market."

Table 1
Top Eight Worldwide Telecommunications Equipment Manufacturers' Estimates for 2000
(Billions of Dollars)
Company 2000
Revenue		 1999
Revenue		 Growth (%)
Based on Revenue		 Local Currency
Revenue Growth (%)
Nortel* 29.8 21.0 41.6 41.6
Ericsson** 27.7 24.0 15.4 28.1
Nokia 27.2 20.1 35.4 57.0
Lucent*** 25.8 33.8 -23.5 -23.5
Cisco 23.9 15.0 59.3 59.3
Siemens**** 22.8 20.0 14.5 32.5
Motorola 22.8 19.7 15.3 15.3
Alcatel***** 21.6 17.1 26.6 46.8
Top 8 Total 201.7 170.7 18.2 —

*Nortel figures re-estimated to exclude external component sales, 1999 data changed from last year's report due to a move to US Generally Accepted Accounting Procedures.
**Ericsson figures re-estimated to exclude nontelecommunications equipment and inter-segment sales.
***Lucent 2000 data exclude Avaya — combined figure would be US$33.23 billion.
****Siemens 1999 data re-estimated because of exchange rate updates.
*****Alcatel 1999 data re-estimated to exclude components business.
Source: Gartner Dataquest (March 2001)

The updated figures show that Ericsson came in second once again. Its dominant position in mobile networks during a year of significant investment in third-generation (3G) systems was the driving factor in continued strong revenue growth during the year.

Other positions remain unchanged, as does Gartner Dataquest's view of the market opportunities this year — 2001 will be a tougher year for the manufacturers. Whether there is an actual recession or not this year, the slowing economy and the recent struggles in the dot-com industry will make 2001 a turbulent year in the telecommunications industry.

This research is published by Gartner Dataquest's worldwide Telecommunications and Networking group. This group provides analysis for the full spectrum of telecom and networking issues. To keep up to date on the latest telecommunications issues, please visit Gartner's Telecom Marketplace Resource Center at www.gartner.com. To purchase reports or subscribe to Gartner Dataquest programs, please call 800-419-DATA, or 408-468-8009.

Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry.

About Gartner
Gartner provides unrivaled thought leadership for more than 10,000 organizations, helping clients to achieve their business objectives through the intelligent and efficient use of technology. Additionally, Gartner helps technology companies identify and maximize technology market opportunities. Gartner's technology content and strong brand reach IT professionals globally through Gartner Research, its research and advisory unit; Gartner Consulting; Gartner Events, including Gartner's renowned Symposia; and at www.gartner.com. Gartner subsidiary TechRepublic, Inc. (www.techrepublic.com) is the leading online destination developed exclusively for IT professionals by IT professionals. Gartner, founded in 1979 and headquartered in Stamford, Connecticut, achieved fiscal 2000 revenues of $859 million. Gartner's 4,600 associates, including 1,400 research analysts and consultants, are in more than 80 locations worldwide. For more information about Gartner's industry-leading products and services, please visit us on the Web at www.gartner.com.