Definition - What does Telecommunications Equipment Manufacturer (TEM) mean?
Telecommunications equipment manufacturer (TEM) refers to manufacturers of equipment and devices used in the telecommunications industry.
The TEM industry includes organizations, phone/data/cable providers and TV/radio broadcasters. TEM equipment and devices include phones, modems, routers, gateways, answering machines, phone switching systems and data bridges.
In this highly concentrated industry, 50 of the largest TEM organizations generate about 75 percent of total industry revenue with two-thirds from wireless communications equipment (TV/radio) and one-third from line-based communication.
TEM is also known as network equipment provider (NEP).
The U.S. TEM industry has approximately 1500 organizations. Major contributors include Cisco Systems, GEC, Motorola and 3Co. Foreign TEMs include Alcatel-Lucent, Siemens and NEC.
Although large TEMs corner the market, many small TEMs are successful with highly specialized niche products.
U.S. TEMs are currently transitioning from traditional phone systems to Voice over Internet Protocol (VoIP), while the TV industry is shifting to high-definition TV (HDTV). Each migration entails the replacement of traditional equipment and devices, which create TEM vendor opportunity.