Telecom Networks Path To Profitability

Managing a profitable Telecoms network requires a precisely balanced mix of cost savings balanced by a rich set of services.

Many network operators have been caught off guard by the massive uptake of high bandwidth media requirements of consumers and business customers alike.

The old style hierarchical, over-engineered PSTN technology reached its limits in this new media rich market; being expensive to operate, uncapable of handling the volatility and volume of internet traffic nor capable of delivering contemporary services.

IP Networks are distributed network architectures where:

• routing and intelligence are distributed in the network
• signaling and data transmission are integrated in the same network
• service provision is separate from infrastructure operation
• terminal devices and services are attached at the edges of the network
• the service development platforms are mainly open, allowing API based development.

The challenge has been how to best transition voice and data traffic to more profitable IP networks and still stay profitable. The only alternative to commercial and technical failure is efficient upgrade implementation and fast payback on investment.

So let's look at the options:

• IP DSLAM
• Improved Qos
• IP Switching
• New Revenue Streams

IP DSLAM

Broadband access capable of delivering revenue generating content, services and applications that will keep Telcos in business must be IP enabled and compatible with ATM legacy equipment.

DSLAM both accommodates ATM legacy equipment and offers IP advantages; together with a smooth migration towards future IP networks.

Quality of Service

improvements in quality of service and network functions include provisioning, bandwidth management, security, traffic prioritisation and content filtering.

Dynamic bandwidth allocation can be provided on demand with web based Service Selection Portals [SSPs] and/or Service Selection Centres' [SSC] enabling subscribers to access and activate services on an as-needed basis rather than always-on.

Subscribers can dynamically alter their services without having to log out and log back in as they would in a RADIUS only environment. Multiple services may be simultaneously activated but still billed billed separately.

IP-based broadband services supported by the IP-DSLAM and service portals include:

• Fast Internet Access
• VPN
• Videoconferencing
• Video streaming
• Voice [POTS and ISDN]**

**POTS and ISDN can be transmitted simultaneously with the DSL signal either in-band or out-of-band, meaning carriers can capitalise on existing copper pair infrastructure.

IP Switching

IP Switching allows carriers to converge their voice and data networks. This is lead to decreased costs, providing capital for the next stage of IP upgrade.

The platform also enables better access to future IP-based service development, reducing time to market for IP services. Using a common backbone network supporting both voice and data services can be used as a gateway between services, subscriptions and networks.

IP structures are significantly leaner than the typical TDM networks; with 80 per cent fewer switching elements, 60 per cent more capex savings and 20 per cent higher revenues compared with TDM networks. Reduced personnel expenditures also add to their profitability.

New Revenue Streams

In spite of the popularity of basic data services, they are not proving the remedy for falling voice revenues.

The hope of the carrier revenue is in multimedia applications, expecting to increase carrier revenues by 20 per cent or more. This increased revenue, coupled with modular service provisioning approach allows provisioning of application building blocks.

With the rapid pace of new applications, and reducing product lifecycles, new offerings need to be easily customised to differentiate a carrier's business strategy and rolled out just as rapidly.

Application programming interfaces [APIs], hosted on application-provisioning platforms are providing programmers efficient and flexible access to the application building blocks.

New Partnership Models

Media and broadcasting industries also facing the shift of power to the fast pace consumer multimedia market are seeking refuge with IP carriers to distribute their content over multiple media channels. This is providing carriers with a ready market of content and advertising revenue.

In summary, improved flexibility and ready extensibility of IP networks and fast deployment revenue-generating applications; carriers are finally seeing the light at the end of the tunnel leading to not only renewed economic viability but also profitability.

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