A good chance to ALU and NSN -- U.S. security threat concerns over Huawei and ZTE

Obviously it's not the time for telecommunication network equipment vendors, which are likely to become "dumb pipes" if no revolutionary profit models are made.

Alcatel-Lucent (ALU) and Nokia-Siemens Networks (NSN) are fellow sufferers, both claimed to cut thousands of jobs in the coming quarter.

Ericsson, the industry leader, has a better position thanks to its strong accumulations and consistent market penetrations.

Huawei, the fastest growing one, gained a lot of reputations around the world, not merely in those less-developed countries any more. Its profit rate declined as well.

ZTE, the other Chinese vendor, did not have position as good (as Huawei), who is likely to start job cutting in the coming months.

Among all above 5 major network equipment vendors, ALU and NSN seem to be on the edge of the cliff. Who can survive and how?　

A recent well-known news is U.S. government has security concerns over network gear provided by Chinese vendors Huawei and ZTE. I think it's a concern from day one which sounds quite reasonable. I would have the same concern if i were the governor of U.S., a country which suffered and consider national security so important.

It may be a sad news to Huawei and ZTE, which devoted much in past years on North America markets, however, it's absolute a great news to other 3 vendors, especially deeply trapped ALU and NSN. Assuming the condition will persist for years, North America, one of the biggest and foremost markets in the world,  refuses to take gears from Chinese vendors, it would be a huge chance, actually the best i can see for now, to take a break and get recovery.

Let's see what's going on ...