Chinese telecom equipment giant Huawei has to offer its telepresence customers more apart from cheaper prices to achieve success in the market, says an analyst.
Research manager at IDC Sherrie Huang told Networks Asia that while Huawei’s history of offering lower prices than competitors could well extend to its telepresence offerings and possibly serve as a good way to expand the telepresence market, lower prices would not be a sound long-term strategy due to telepresence’s status as a high-end enterprise product.
Huawei’s France-based senior sales manager for telepresence and videoconference Mourad Bedrani told Networks Asia at ITU Telecom World 2011 in Geneva that the company’s newly-launched 6-seat TP3106 telepresence product, would be offered at a price of approximately 190,000 euros, a price Bedrani claims is between 20%-30% than a competing product with similar specifications.
Huang said MNCs, which form telepresence’s target clientele, would likely look beyond the price factor to the quality of services and software offered before making a purchase decision. She added price would prove a greater determining factor in the success of lower-end products such as basic video conferencing.
The telepresence market, unlike that of lower-end video conferencing systems, does not offer a large playing field for several players, said Huang, and Huawei could do better to compete in this market by offering attractive financing models and payment terms. Low prices might work in certain markets at the start, but not in others, she added.
The TP3106 touts high-definition video, surround sound and is built on the open Telepresence Interoperability Protocol (TIP), deeming it suitable for integration with existing mainstream unified communications systems, IP multimedia subsystems and video conferencing systems and some smartphones and tablets.
A custom touch-screen Android-based tablet controls the TP3106, and Huawei claims its new product offers customers 30% lower bandwidth consumption costs compared to the industry average. Security features for the TP3106 include dual core encryption in the form of H.235 signaling and media stream encryption and AES media stream encryption. Similar configurations for 2-18 seats are also available for deployment.
Huawei’s telepresence business forms part of the company’s strategy for success in the enterprise market outside of its stronghold, China. President of Huawei’s enterprise business group William Xu has named a $20 billion worldwide enterprise sales target by end 2015, up from $2 billion last year.