These SDH units connect end user equipment to the i Competitive Intelligence Marconi Partner Confidential – Not for external disclosure ECI. ECI Telecom receives $3 Million Optical Equipment Order from the Finnish Defense Forces; ECI supplies SDH and optical solutions to the FDF. This is a legal agreement between you, the end user, and ECI Telecom Ltd. (“ECI information in an environment with SDH equipment from different.

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Our vision is to provide innovative, managed network solutions that enable network operators and service providers to increase capacity, improve quality, maximize current infrastructure, expand revenues and deliver the services that their customers demand. Throughout the years we have been the first to deploy commercially powerful new technologies, giving our customers a competitive edge. Serving most of the major international service providers, our products offer integrated voice, data, fax and video capabilities through four major product groups: Its products provide companies around the world with cost-effective solutions to the ongoing dilemma of ever-increasing demand for transmission capacity.

ECI’s digital circuit multiplication equipment “DCME” products increase the efficiency of long-distance telecommunications links via satellite, undersea fiber optic cable, microwave and coaxial cable.

IP/Ethernet and SDH solutions

These products generated the vast majority of ECI’s sales until the early s, when diversifications begun in the s started to constitute a significant proportion of the business. These included access network products, which boost the efficiency and effectiveness of local telephone lines to accommodate integrated services digital network ISDN while postponing expensive infrastructure upgrades.

In anticipation of a global upgrade to fiber optic cable, ECI prepared an array of specialized equipment, including Syncom and wide area networking products. With a boost from its acquisition of America’s Equipmments International Inc. The Edi Nations’ partition of Palestine into separate Jewish and Arab states and the declaration of an independent Israel in spawned two trends relevant to the creation and development of ECI.

Intermittent military clashes between the two states imbued Israelis with a equip,ents sense of ssh and self-preservation, impulses which found partial release in the establishment of many institutions of higher education and research.

Israel was soon distinguished by the world’s highest ratio of scientists, engineers, and Ph. Many in the country’s “brain trust” were employed by the government to do military research.

Like many of Israel’s leading high-tech firms, ECI evolved out of the country’s robust defense industry. It was founded as Evi Corp. ECI developed a specialization in telephone transmission products, which manipulate the signals carried on telephone lines. New management, including many of the company’s s-era executives, steered the company away from the defense industry and toward civilian constituencies in the s.

This too echoed national trends, which saw high-technology equipment evolve into one of Israel’s most important exports. Early product groups focused on long-distance multiplexing: One device took advantage of the fact that phone lines were strung in pairs–one line sent signals one way, equilments the other conducted the return signal–and each was actually only in use about half the time during the course of a typical conversation.


ECI developed time assignment speech interpolation TASI technology that tracked the beginning and end of each segment of conversation and wedged the elements of a different conversation into the spaces in between.

Launched inthis device increased the potential usage of long-distance analog lines by a factor of two.

It was used especially on international undersea cables, where efficiency was a paramount concern. The digitization of telephone switching that began in the s foreshadowed a decline in demand for TASI but challenged telephone equipment manufacturers to develop complimentary devices.

Dsh telephone switches convert sounds into binary code for more efficient, computer-managed transmission and then translate them back into sounds at the receiving end. Digital circuit multiplexing equipment DCME developed by ECI and others bundle these digitized signals for maximum efficiency during transmission, thereby allowing standard long-distance phone lines to carry more information than was originally intended.

ECI’s ability and inclination to target research and development funds to this sector and its eagerness to embrace international industry standards gave it other competitive advantages over its king-sized rivals.

By the end of the decade, ECI had captured over two-thirds of this market.

STM-1, STM-4, STM, STM SDH Multiplexers | Valiant Communications

In a Money magazine article, fund manager Robert Zuccaro of Target Investors asserted that “Most global phone companies have become ECI customers in recent years after failing as competitors.

Led by the bellwether DTX, which could multiply the capacity of a equipmenst channel by up to eight times, DCME operations generated nearly four-fifths of ECI’s revenues through the end of the decade. And while they were strictly a niche sh in the context of the overall telephone equipment industry, DCME devices commanded an impressive 60 percent gross margin.

For while the products’ initial target clients were large carriers in developed countries–Deutsche Bundespost Telekom and British Telecom, for example–they found new life in emerging markets like China, the Philippines, and Brazil. In fact, ECI continued to introduce upgrades of this device equpiments the mids, including the DTX, a model that increased circuit capacity tenfold. So while DCME’s contribution to ECI’s overall sales had shrunk to about one-third dquipments the mids, it remained the company’s most profitable and largest revenue generator.

Foreseeing the eventual obsolescence of DCME and seeking to diversify accordingly, ECI teamed up with one of its most important clients, Germany’s Deutsche Bundespost Telekom, to cei a device that would increase the efficiency of local telephone lines. Sold by ECI under the trade name DIGILOOP, the resulting “pair gain” devices capacitated the existing copper pairs of wires to emulate digital lines and therefore carry two voice telephone calls on one line. Known in the industry as “access multiplexers,” these devices appealed to two different constituencies for different reasons.


ECI Telecom

Common carriers in emerging markets could effectively double the capacity of their local networks, i. Telecos in mature markets could offer the increased capacity to their customers as a premium feature–discrete “lines” for faxing or Internet access–without expensive fiber optic upgrades to each customer.

When combined with high bit rate digital subscriber line HDSL technology also developed and sold by ECI, access multiplexing held out the possibility of allowing phone companies to offer cable television service as well.

In fact, ECI played both sides of this intermedia competition. Init acquired a 30 percent stake in Israel’s Telegate, a startup concerned with the development of technology that would allow cable television companies to offer phone services over coaxial cable lines. Access devices grew to become ECI’s hottest product line in terms of saleswith revenues increasing 88 percent from to alone.

Bythey vied DCMEs as the company’s largest revenue generator, contributing 32 percent of sales. Unlike the DCME segment, however, ECI faced a great deal of competition in the access market, a factor that dampened profit margins in this division.

IP/Ethernet and SDH solutions – Digital Grid – Siemens

In partnership with longtime customer Deutsche Telekom, ECI began researching and developing transmission management products for fiber optic networks and their next-generation asynchronous transfer mode ATM switches in The fiber optic cables expanded bandwidth by a ratio eck ten-to-one over copper, and the ATM switches merged voice, data, and video transmissions.

This differs from the current standard, which assigns a particular amount of bandwidth to each client whether it is being used or not. With an anticipated annual growth rate of over 60 percent per year, the global SDH market was expected to become one of ECI’s key divisions. In an ongoing effort to diversify its product offerings and geographic reach, ECI acquired Telematics International Inc.

Whereas ECI had long emphasized the voice and equipmfnts segments of telephone transmission, Telematics specialized in data products, especially those for automatic teller machines ATMslocal area networks LANsand wide area networks WANs. Telematics developed and manufactured devices that package computer data in the same way that ECI’s products package voice and video.

ECI’s revenues and net income rose in concert with its burgeoning product line and geographic reach in the early s. These strides are certainly commendable–and have not gone unnoticed by the investment community–but perhaps more importantly, ECI has begun to transform itself from a niche player in the telecommunications equipment industry to a “global integrated network manager. Comment about this article, ask questions, or add equjpments information about this topic: Show my email publicly.

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