Siemens has something to sing about—proof that its parent company's acquisition of Efficient Networks enhanced its share in the global DSL equipment market.

by ISP-Planet Staff [September 25, 2001]

Siemens Information and Communication Networks (ICN) this week announced that a second quarter report released this month by the Dell'Oro Group named the company as the the world's largest provider of digital subscriber line (DSL) customer premises equipment (CPE).

Dell'Oro reported that Siemens is the global leader in sales of DSL customer premises equipment with a 23.6 percent share of this market. Additionally, the report indicated that Siemens moved up to the number two position in global shipments of DSL access concentrators in the second quarter of this year. Of the top four providers of DSL access concentrators, Siemens was the only company to have increased revenues in the last six months.

Sound strategy
Mark Floyd, Siemens ICN president and chief executive officer for the U.S., said the report confirms that its got the correct mix of equipment to suit the majority of the markets DSL provider's needs.

"The latest Dell'Oro results confirm that our corporate strategy of delivering service providers the solutions that meet both their requirements, as well as those of their customers, is the right strategy for this competitive marketplace," Floyd said. "We anticipate that in the near future this approach will enable us to pursue global leadership positions in other broadband market segments as well."

Siemens' leadership position in the DSL broadband market is closely related to the company's acquisition of Efficient Networks Inc. According to earlier Dell'Oro reports, Efficient Networks first established itself as the world's largest provider of DSL CPE in December 1999.

During the first quarter of 2001 market leaders for DSL access concentrators were Alcatel, Lucent, Siemens, Cisco and Nortel—in that order. Lucent said at the time that the same Dell'Oro report showed it supplied almost 50 percent of the market for symmetric digital subscriber line (SDSL) equipment. No word on the details from Dell'Oro as to the 2Q standings until the report is made public this week.

Efficient Networks was acquired by Siemens in April 2001 for $1.5 billion cash. At the time, the competitive DSL service provider market was consolidating, leaving many companies strapped for cash. Analysts were convinced that Siemens AG's buyout of Efficient Networks reinforced expectations of a major consolidation on the equipment side of the business.

Siemens ICN is a leading provider of integrated voice and data networks and solutions for enterprises, carriers and service providers. Based in Boca Raton, Fla., Siemens is a part of Siemens AG, a leading global electronics and engineering company headquartered in Munich. ICN's subsidiaries include Siemens Carrier Networks LLC, Siemens Enterprise Networks LLC and Optisphere Networks Inc.

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