Copper Shining On
Today, both fiber and copper have major advances in bandwidth capability, to support the next generation of LANs at 10G. Steep copper prices have not spoilt the party as it continues to be the popular choice for cabling. On the other hand choosing between copper and fiber-optic solutions is sometimes difficult, as distance, cost, required bandwidth, and specialized expertise need to be considered.

Although copper cable is currently more popular and much more predominant in structured cabling systems and networks, fiber is quickly gaining momentum. Fiber-optic cable is favored for applications that need high bandwidth, long distances, and complete immunity to electrical interference.

Fiber is ideal for high data-rate systems such as Gigabit Ethernet, FDDI, multimedia, ATM, SONET, fiber channel, or any other network that requires the transfer of large, bandwidth-consuming data files, particularly over long distances. A common application for fiber optic cable is as a network backbone, where huge amounts of data are transmitted.

Cat7 is the only cabling standard in copper that supports high-speed data transfers. But there is one limitation in Cat 7 over fiber. With fiber you can connect two end-points within a distance of 45 km, but while using copper you can go only up to 100 meters. So, if you are planning to build a MAN, then there is no option other than going for fiber.

Multimode fiber has advanced to new levels to support laser-based systems where as the industry is developing twisted pair cabling that will provide at least a three-fold increase in bandwidth, but with limitation on distance.

Fiber-optic is the dominant type of cable for connecting separate buildings on campuses and connecting floor distributors to building distributors. Because of its high cost on the LAN equipment side it has been limited to the backbones. If we compare the cost of a fiber port on the active equipment and that of Gigabit Copper port on the active equipment, the fiber is almost 6 times higher.

SMEs comfortable with Cat5e; Cat6A installations limited to backbone installations

Going Wireless
A few years ago, what was perceived as a potential threat to the industry, has today become an addition to the product offerings. The debate over wireless versus wired is a dying debate as there is a new attitude towards wireless stretching across the structured cabling industry today.

The emergence of wireless technologies into the mainstream is having an obvious impact on the cabling industry. Structured cabling and connectivity vendors see wireless as a logical adjunct to the wired network, and many have expanded their product offerings with end-to-end wireless systems.

There's a need for customers to integrate their wired and wireless systems because the cabling infrastructure is what supports wireless APs. There's also something to be said for having a one-stop shop for data center products, cabling, connectivity, patching, and now wireless.

A significant market trend in India is that providers of wiring infrastructure have expanded their offerings as widespread wireless LAN deployment appears inevitable. Many are starting out with distributed wireless systems that are likely to evolve as technology continues to evolve.

The Systimax AirSPEED solution includes the AP541 and AP542 APs, antennas, and rack-mounted midspan PoE devices. The AirSPEED AP542 is a dual-band, tri-mode intelligent wireless AP used in a distributed system that simultaneously supports 802.11a, 802.11b, and 802.11g clients.

ADC Krone introduced their Digivance WFX Wi-Fi WLAN Array Solutions last year. Each Digivance WLAN array includes an embedded controller (WLAN switch) and 4, 8, or 16 integrated access points, providing simultaneous non-overlapping channels. The result is increased capacity and range, which reduces the number of devices to install, manage, and service, significantly.

D-Link also offers a range of enterprise wireless products under the brands Air Spot and Air Premiere that conform to the IEEE 802.11a/g standards.

Some cable and connectivity vendors have taken a different approach with their wireless systems. Panduit teamed up with wireless networking provider Cisco Systems to deliver the PACT Wireless Connection Solution. The PACT Wireless Connection solution includes Cisco distributed and centralized wireless APs, WLAN controllers, and antennas, and Panduit wireless AP enclosures, PoE patch panels, and connectivity.

So as long as companies continue to add more cabling to support wireless access points (APs) in their offices, its good news for cable and connectivity vendors.

Vertical Growth
Data center cabling has emerged as another niche area for structured cabling solutions vendors. There are promising business opportunities for both fiber and cable solution providers.

The industry expects retail and manufacturing to be the booming segments for cabling business. With new technologies paving way for converged systems that include secure access to homes, cable television and broadband Internet, RFID, etc there is huge scope for expansion of the structured cabling market. Residential cabling is also likely to pick up.

Among the emerging potential segments, residential cabling is a significant one. The market drivers for this is broadband subscribers, VoIP, IPTV, multimedia networks (Windows XP Media Center-digital streaming audio/video and live recorded TV, photos, etc), online gaming (X-BOX 360), and fiber-to-premise (FTTP).

Residential cabling is intended to support existing and emerging services including voice, data, video, multimedia, home automation systems, environmental control, security, audio, television, sensors, alarms, and intercom.

Getting Bigger, Better
The customer is key in the game plan to succeed in the cabling business. And this is true for all leading vendors who are looking to grab the same set of customers in tier-I and tier-2 cities. Customer satisfactions, indelible sales support along with a good channel partnership program, are key drivers in achieving an edge over the closest competitor.

Reorganization is the order of the day as we see many vendors looking to strengthen their processes and customer support extensions.

In order to retain, sustain, as well as capture new opportunities, Tyco is benchmarking its internal processes with the best in the industry. It is emphasizing on delivering the industry's best in customer care, pre- and post-sales support, logistics and financial management. Tyco also is actively engaging with the channels while increasing its presence in tier-3 and tier-4 cities through its national and regional distributor network. It has established sales offices across all major metros, also adding offices in Pune and Cochin. New offices are expected to open in Ahmedabad and Chandigarh.

ADC Krone acknowledges that the industry is changing with the change in customer needs, and that channel partners help in driving this growth. In the current fiscal, the company continues its commitment to strengthen and increase its partnership and continuing its value-based channel strategies.

In the enterprise market Krone continues to aggressively focus on IT/ITeS, BFSI, BPO, and government verticals. It is eyeing immense potential in India as an important market for its telecom and enterprise solutions.

For D-Link, the roadmap for the current fiscal is to focus on data centers and the BPO segment, and strengthening its portfolio by offering a wider range in PoE, and enhanced product ranges for copper as well as fiber for the channels. The company is confident of growing beyond 40% in the current fiscal. D-Link expects the coming year to be action-packed as it eyes emerging markets in tier-2 and tier-3 cities where new IT infrastructure is on the upswing.

Deepening its footholds in tier-2 and tier-3 cities with channel partners, Molex has also increased its direct presence in Ahmedabad, Kolkata, Hyderabad, Mumbai and Pune. Taking its business beyond ITeS sector, Molex is excited about its key wins in retail and commercial establishments. It also anticipates the market will further hot up with SEZ infrastructure boom, and it is already gearing up for it ahead of the pack. With such fierce segment growth in verticals Molex has set its growth target of 100% in the current fiscal.

As it looks to consolidate its position, Panduit is strengthening its focus on the 3Ps: processes, partners, and properties. It is pushing forward its global corporate vision in the Indian market and is interested to introduce a string of localized cabling solutions. Acknowledging the high potential of India as a hot destination, Panduit is opening two customer-briefing centers (CBCs) in Bangalore and Mumbai. This is aimed at improving eye-ball contact with customers and strengthening its channel partner program nationwide. The CBCs will also be a training ground for channel partners.

Belden expects to improve its revenue for FY 2007-08 to touch Rs 38 crore. It has started a data center practice, focused on providing consultancy to customers. This revolutionary practice was launched in October 2006 and already has a few customers. This is part of Belden's global initiative on data centers. Head quartered in India this practice will offer consulting, project management, audit support of the entire physical infrastructure (including power, cooling, cabling, enclosures, fire suppression, security etc) that goes into a data center.

Siemon is looking to strengthen its channel by appointing few more certified installers in different parts of the country to increase its reach along the length and breadth of the country. For 2007, Siemon will continue to expand its 10G related product lines and promote shielded solution actively in India. At the same time, it has been working on cabling solutions beyond 10G, such as 40G or 100G. Siemon has the advantage of working closely with the international cabling standard committees such as TIA and ISO and develops the next generation of cabling solutions such as Cat7A.

Dax is aggressively focusing on the SMB segment. The company is establishing a large network of Authorized Dax Service Providers (ADSPs) across the country to reach out to this segment. Currently, Dax has on board over 150 ADSPs across India. The company is aiming to appoint another 100 by April 2008. It is optimistic of revenues of Rs 20 crore for 2007-08.

Staying Ahead
One issue that tops the list of challenges ahead is that of surge in copper price. The volatile prices of copper forced all vendors to revise their prices upwards. It was a major challenge for all to keep up with the instability. The prices still have not settled and the price has continued to escalate upwards.

Apart from this, channels are encumbered with issues related to cash flow. These range from shrinking margins, longer

project cycle times, delayed payments and project retention cost that some clients may impose as deferred payment. These directly affect channels' business and profitability.

The other key challenge before the cabling industry is the paucity of trained engineers who can design, install, trouble shoot and warrant the network for customers. Most structured cabling players are investing heavily in training programs and road-shows in an effort to educate customers. They want the customers to focus on certifications and getting RFPs (Request For Proposals) cleared.

There is a new way of thinking emerging for smaller players. It's no longer about boxes but about ports and software. Players are looking more and more at providing customized end-to-end cabling solutions. With 10G over UTP, PoE and Intelligent cabling technologies gaining acceptance, cabling installations are becoming more skill-based than before. Following the right installation practices and adherence to standards is very important when it comes to new applications that require higher data rate transfers.

In order to stay ahead in the race the industry has given priority to staff retention and training. With numerous orders on hand, the installers are gearing up for training personnel and technicians. Understandably, they would love to see better supply and adequate staff to strike a balance.

The year ahead is optimistic and full of greater business opportunity. So as India is tipped to be the 14th highest IT spender by 2008, it's business as usual for the structured cabling market.

Malovika Rao
malovikar@cybermedia.co.in

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