Next Generation Telecom: The Road Ahead

Driven by convergence in networks, devices and media, telecom services are entering the next generation driven by greater network flexibility to rollout new services and provide an enriched user experience, says Frost & Sullivan. A common business trend for the established telecom providers is to embark on a next-generation network (NGN) transformation with a completely new architecture to enable the delivery of enhanced applications and new services such as IPTV, interactivity and fixed-mobile convergence. The key driver of NGN rollouts is also to gain cost savings by moving to an IP-centric architecture and removal of various stove-pipe systems.

Asia Pacific which is home to the largest internet user base today is at an interesting stage with various countries at different states of maturity in terms of the broadband infrastructure. At one end are the mature markets like Japan, South Korea, Hong Kong, Taiwan, Australia and Singapore which have high broadband and mobile penetration where the focus is on enabling convergent and ubiquitous services. These markets have already embarked on a NGN transformation.

Then there are transition markets like Malaysia where the government is playing a leading role in creating a nationwide broadband network and even mobile operators are aggressively pushing wireless broadband. The emerging markets face challenges due to limited fixed line infrastructure and low average revenue per user (ARPUs) to justify a complete NGN rollout but lot of operators are already thinking in that direction especially in certain key cities.

Jayesh Easwaramony, Director, ICT Consulting, Frost & Sullivan says, "Although a NGN rollout for cost savings and service agility is the step in the right direction for all incumbent and integrated telcos, there are still multiple issues that telcos face like the business case for new services, the right architecture from a rollout perspective and the transition time for migration into a full-fledged NGN infrastructure.

"Thus there is no size fits all when it comes to transformation initiatives and each operator has to define his vision of his next generation and accordingly shape his business and network strategy," adds Mr. Easwaramony

Posted to the site on 20th August 2008