Communications service providers stay flexible while they plan for the future. Part 1

These powerful – and fast-moving - players are forcing CSPs to define their strategy as to whether they engage or try to compete against them. Do they build a defensive ecosystem around themselves or perhaps even move towards a bit-pipe positioning? 

 

At the same time, participants with products like iPhone and other devices have demonstrated that it is possible - in a relatively short timeframe - to develop a very large number of new services that are relevant and attractive to end-users. So, there is also massive potential for communications service providers who are very much in a central role here. They know their customers and have a real-time relationship with them, not to mention that they have massive infrastructures already rolled out around the world. So the potential for them outweighs the threats from competition, cost pressures and mergers and acquisitions activity. CSPs are revising their strategy, estimating how the near future is going to be manifested and what are the appropriate steps that they should take.

 

‘If we look at the technology landscape that exists today there are a lot of point-to-point, integrated applications across CSP networks.’ says Martti. ‘These tend to work well in a stable environment, but with the market consolidation that is happening - often with the need to merge large product portfolios and infrastructures - a key requirement for the future is flexibility. CSPs are all running highly optimized static environments and it is extremely costly, not to say risky, to change mission-critical, in-production systems that are hard-wired together.’

 

‘So there is a big appetite to manage this transformation safely and at Nokia Siemens Networks we have the competencies to do just that. Our entire portfolio is also currently going through transformation; with some products already out in the market. We’re also uplifting our architecture along the lines of NGOSS principles and changes to our managed services are giving us great experiences and expertise that we can share, not just directly with customers but with others for collaborative advantage.’

 

‘What this means for CSPs is that, if they can apply business transformation and can stay flexible, there is a greatly increased opportunity to gain new revenues. If they can merge their capabilities with those of the new Internet services players, then there is the opportunity to offer end-users mash-up services. At the very least they can act as an enabling partner for these players to bring their services to customers, a potentially massive revenue earner in itself.’

 

‘CSPs have invested in a lot of technology over the years, much of it complex, especially in the fixed realm and expensive like 3G, 2G etc, plus of course infrastructure in the access and transport layers. And all the time this is being added to with new infrastructure technologies. So there is a clear need for network and service management systems that are designed to deal with different technologies without passing the burden of complexity onto the CSP. Such management systems, having consolidated architectures, are more cost efficient and much more flexible to change. They allow CSPs to retain the vital agility they need to stay competitive.’