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Contents Alcatel-Lucent, Microsoft TV, and Harmonic Score Big in Singapore with SingTel IPTV Rollout| Analyst: Erik Keith | Broadband Infrastructure - Global | Client Access | Event Summary On December 7th Alcatel-Lucent announced that it has been selected by Singapore Telecommunications Limited (SingTel), Southeast Asia’s largest telecommunications operator, for its Internet protocol television (IPTV) trial, which began in October 2006. Based on a combination of Alcatel-Lucent’s services integration solution and Microsoft TV IPTV Edition software platform, the project will include broadcast TV and video on demand (VoD), with content featuring HD quality picture resolution. Analytical Summary • Current Perspective: Positive on the SingTel IPTV trial deployment with Alcatel-Lucent, Microsoft TV, and Harmonic (and HP), because SingTel is one of the preeminent telecom operators in the Asia-Pacific market (i.e., the largest in Southeast Asia), and the selection of these vendors – not to mention the public disclosure of their selection – is a strong indicator of SingTel’s high level of confidence in the chosen vendors and their solutions. • Vendor Importance: High to all of the vendors involved in the SingTel IPTV deployment, as SingTel is one of the most innovative telecom operators in the Asia-Pacific market. The SingTel IPTV service rollout will also provide the vendors with a high-profile opportunity to showcase their respective solutions in a market where the competing cable operator (StarHub) has already deployed DOCSIS 3.0-based triple play services. • Market Impact: Moderate to high on the Asia-Pacific broadband infrastructure market, as Alcatel-Lucent, Microsoft TV, and Harmonic are already in leadership positions in their respective market sectors (although, for clarification, Microsoft TV still has to prove its solution is ready for prime time in large scale networks), and the SingTel account represents another strong Tier 1 operator opportunity for these vendors. Redback Wins Again in China Telecom’s Largest Province, Guangdong| Analyst: Erik Keith | Broadband Infrastructure - Global | Client Access | Event Summary On December 6th Redback Networks announced it has won the second phase of a broadband network upgrade with Guangdong Telecom, the largest provincial carrier of China Telecom. Guangdong Telecom will use Redback’s SmartEdge family of multi-service edge routers to deliver broadband Internet, IPTV, and virtual private network (VPN) services for up to four million homes and businesses, making it one of the largest network upgrades that Redback will help manage in China. Analytical Summary • Current Perspective: Slightly positive on Redback’s contract expansion/phase two network upgrade with China Guangdong Telecom, China Telecom’s largest provincial carrier. While Guangdong/China Telecom is not a new customer for Redback, it does represent substantial business for the company in one of the world’s largest and fastest-growing broadband markets, and Guangdong’s plan to double its number of broadband subscribers in the next one to two years bodes well for Redback. • Vendor Importance: High to Redback, as the Guangdong/China Telecom phase two broadband build-out will provide Redback with solid incremental revenues from an account where the company is already well established. Redback’s expanding presence in Guangdong also has the potential to pave the way for further success within China Telecom’s (and China Netcom’s) other provincial carriers. • Market Impact: Moderate on the overall service provider edge market, since Redback is already well established in China, with a presence in 22 of the 32 Chinese provincial carrier networks. However, as the Chinese operators ramp up their service offerings from basic broadband to “ultra-broadband” and multi-play service bundles, Redback is well poised (as an incumbent supplier with well-proven solutions) for new business in what will soon be the world’s largest single market for broadband. Huawei Officially Introduces Its IMS Solution| Analyst: Joe McGarvey | Carrier IP Telephony - Global | Client Access | Event Summary On December 6th Huawei Technologies introduced the commercial version of its fixed-mobile convergence (FMC) and IP Multimedia Subsystem (IMS) solution. IMS 3.0 is designed to provide an open architecture for the development of multimedia services. Huawei IMS 3.0 complies with IMS standards from both the 3GPP and TISPAN standards bodies. The solution is used to deliver applications such as seamless voice handover between cellular and WLAN networks, IP Centrex and blended applications. Analytical Summary • Current Perspective: Positive on Huawei’s introduction of its IP Multimedia Subsystem (IMS) 3.0 solution, as the availability of the standards-based product portfolio will significantly enhance the Chinese equipment maker’s ability to assist carrier customers in transforming their network infrastructures and services offerings. The announcement suffers, however, from a lack of details about Huawei’s IMS portfolio and seems to be largely a recap of partner announcements made earlier in the week with Sylantro Systems and BEA Systems. • Vendor Importance: High to Huawei, which trails several competitors in the race to assemble and deploy a comprehensive IMS product portfolio -- despite claims of being the first vendor to announce a fixed mobile convergence (FMC) and IMS solution based on industry standards. The introduction of its IMS solution finally puts the equipment maker on equal footing with competitors such as Alcatel-Lucent, Ericsson and Siemens in offering a standards-compliant IMS solution. • Market Impact: Moderate on competitors in the IMS market, as competitors have announced and, in several instances, deployed IMS-components based on Release 6 of the 3GPP specification and Release 1 of the TISPAN NGN specification. Without a greater demonstration of traction for Huawei’s IMS solution, specifically its session control technology, competitors will not need to counter Huawei’s IMS announcement with a defensive move. However, the announcement should cement all competitors’ concerns that Huawei will soon be a disruptive force in the IMS market. Alvarion Leverages BreezeACCESS and BreezeMAX into Wide-Area WiFi – Sans Mesh| Analyst: Peter Jarich | Wireless Infrastructure - Global | Client Access | Event Summary December 6, 2006 – Alvarion announced the BreezeMAX WI2 and BreezeACCESS WI2. Each product consists of a, “fully ruggedized,” outdoor 802.11b/g access point combined with an integrated power module for connecting to commercial power sources, a wireless backhaul component and network management software. BreezeMAX WI2 units pull in 802.16 backhaul in the 2.3, 2.5 or 3.5 GHz bands. BreezeACCESS WI2 units leverage Alvarion’s proprietary 5 GHz BreezeACCESS products. Analytical Summary • Current Perspective: Moderate to high to Alvarion, because in an increasingly competitive WiMAX market the broadband wireless leader needs to seek out new sales opportunities for its gear. As the broadband wireless market converges on WiMAX, so too will Alvarion’s focus. Yet where Alvarion was the biggest player in a proprietary fixed-wireless market, it stands to become a small fish in the WiMAX pond. Though the new WI2 products do not take Alvarion in a new direction, leveraging its assets (and its base of existing customers) as widely as possible will be critical to continued success. • Vendor Importance: Moderate to high to Alvarion because – in an increasingly competitive WiMAX market - the broadband wireless leader needs to seek out new sales opportunities for its gear. As the broadband wireless market converges on WiMAX, so too will Alvarion’s focus. Yet, where Alvarion was the biggest player in a proprietary fixed-wireless market, it stands to become a small fish in the WiMAX pond. Though the new WI2 products do not take Alvarion in a new direction, leveraging its assets (and its base of existing customers) as widely as possible will be critical to continued success. • Market Impact: Moderate to high on the wireless infrastructure market, because in the wide-area WiFi space, Alvarion is a new player, and can’t yet claim the reputation of most competitors. It also can’t claim the mesh functionality that many cities and other operators want. Yet Alvarion can point to a long history of supporting municipal broadband, and the deep channels necessary to sell its gear into municipalities and commercial wireless operators – making it a formidable new competitor. Ciena’s Win with Verizon Business: Momentum in Two Key Aspects of Optical Switching| Analyst: Jason Marcheck | Optical Infrastructure - Global | Event Summary December 6, 2006 – Ciena announced that Verizon Business is building out an optical mesh network using the vendor’s CoreDirector optical switching platform. The network will feature both terrestrial (in the U.S.) and submarine links (between the U.S. and Europe), and will utilize Ciena’s FastMesh restoration feature, which is designed to increase the reliability of mesh networking to the equivalent of traditional SONET/SDH ring-based networks. The deployment is expected to take place in 2007. Analytical Summary • Current Perspective: Positive on Ciena’s announcement that Verizon Business will be using the vendor’s CoreDirector optical switching platform in a new optical mesh network build-out. Verizon’s new deployment, which will make use of CoreDirector’s mesh restoration and IP switching capabilities, provides a valuable vote of confidence in two key areas of product development that Ciena has instituted in its CoreDirector platform over the past year; areas that all optical switch vendors are trying to show leadership on. • Vendor Importance: High to Ciena, because CoreDirector is largely the product that put Ciena on the map. As such, a win with a major carrier that has designs on implementing the CoreDirector’s latest product enhancements argues that Ciena is successfully maintaining momentum behind its flagship product. Going further, Verizon’s deployment provides a high profile stage to validate these advanced capabilities (i.e., intelligent optical mesh and IP switching) of CoreDirector – which could drive additional wins. • Market Impact: Moderate on the optical infrastructure market, because, to be sure, all optical switch vendors are looking to demonstrate leadership in both intelligent optical mesh and IP switching, making Ciena’s win a key score. However, many leading competitors can make similar feature claims, which argues that these vendors should be in good position to replicate what Ciena accomplished with Verizon Business – i.e., defend an incumbent account. BT Launches 21C Global Venture NGN Business Unit| Analyst: Tim Dillon | Telecom Services - Asia | Client Access | Event Summary December 6, 2006 - BT has formed 21C Global Venture (GV), a unit designed to facilitate the deployment of next-generation networks to service providers around the globe. The unit will provide network audit and consultancy services through to implementation and network operation. Analytical Summary • Current Perspective: Positive on BT’s 21C Global Venture initiative as it leverages BT’s expertise accrued from its own NGN deployment to date and should drive additional revenue to the group through consulting and network management services. • Vendor Importance: Moderate to BT as this represents a sensible extension of the group’s activities in NGN deployment in the UK and internationally, and BT is keen to grab some of the estimated $38 billion addressable market for NGN deployment services. However, given the high-profile of BT’s 21CN marketing, the 21C GV group needs to ensure it makes no mistakes lest it taint BT’s own 21CN positioning and messaging. • Market Impact: Very high on the markets for both telecommunication service providers as well as equipment vendors. BT is in a very lucrative position and will be able to influence the future shape of NGN deployments. Additionally with equipment vendors very active in the network consulting space BT’s move, supported by 8,000 staff, poses both a competitive threat and massive opportunity. BEA Systems Increases Telecom Cache with Huawei, NEC Partnerships| Analyst: Joe McGarvey | Carrier IP Telephony - Global | Client Access | Event Summary December 4, 2006 – In separate press releases, BEA Systems announced the completion of interoperability testing with IMS equipment from Huawei and NEC. The testing involves compatibility between the various interfaces connecting BEA’s WebLogic SIP Server with components, such as CSCFs, from Huawei and NEC’s respective portfolios. The partnerships are designed to accelerate telecom network operators’ efforts to increase revenue by accelerating the adoption of next-generation telecom networks based on IMS. Analytical Summary • Current Perspective: Positive on BEA Systems’ completion of interoperability testing between its WebLogic SIP Server and IMS solutions from Huawei and NEC, as the separate transactions help to increase BEA’s standing in the telecommunications market and highlight its efforts to adapt its IT-oriented middleware technology to fit carrier service delivery platforms. The announcement suffers slightly from the lack of customer deployments or application development projects that accompanied the interoperability tests. • Vendor Importance: Moderate to high to BEA, which recognizes that the more network equipment providers it can forge relationships with, the more attractive its platform becomes to both potential carrier customers and independent software developers. BEA’s WebLogic SIP Server is now linked to at least three major network equipment providers: Huawei, NEC, and Ericsson. • Market Impact: Low to moderate on the IMS/SIP application server market, as most network equipment providers are equally anxious to expand service creation options for carriers by partnering with application server makers as application server makers are anxious to partner with network equipment providers. The symbiotic relationship has led to a flurry of interoperability tests and partnerships between various network equipment makers and application server makers, such as Oracle and Ubiquity. Ericsson Expands DSL Footprint in Europe and South America| Analyst: Erik Keith | Broadband Infrastructure - Global | Client Access | Event Summary December 5, 2006 – Ericsson announced that it has been selected by German operator Versatel for the nationwide deployment and integration of its all-IP next-generation DSL access network, utilizing the Ethernet DSL Access (EDA) 2530 MSAN solution. Ericsson also announced that Colombian fixed-line operator ETB (Empresa de Telecomunicaciones de Bogotá) has selected Ericsson to supply its EDA-based high-performance broadband solution for a more extensive broadband service rollout within Bogotá. Analytical Summary • Current Perspective: Slightly positive on Ericsson’s DSL access customer wins/deployments with Versatel in Germany and ETB in Columbia. The ETB deployment is an expansion of an existing contract for Ericsson (albeit with a larger potential subscriber footprint, i.e., up to 200,000), and the Versatel deployment represents another case of expanded business with an existing customer, albeit this time in the growing German market, Europe’s largest country in terms of population. • Vendor Importance: Moderate to high to Ericsson, which needed to generate some market momentum in the DSLAM space. The Versatel win expands Ericsson’s customer base in Europe – and even within Germany alone since the EDA solution was selected by T-Com for ADSL2+ broadband services – and also provides validation for Ericsson’s acquisition of Marconi (as Versatel will be deploying the EDA 2530 platform, Ericsson’s all-IP evolution/version of the Marconi AccessHub MSAN platform). ETB is also significant due to the sizeable up-tick in DSL subscribers expected from this contract expansion. • Market Impact: Moderate on the overall DSL infrastructure market. While both customer wins will bring incremental revenue to Ericsson and expand the company’s DSL access footprint, both ETB and Versatel are already Ericsson customers. In addition, while both Versatel and ETB have the potential to reach hundreds of thousands of customers in their respective markets, both operators are effectively starting from scratch in terms of new service offerings and there is certainly no guarantee of success for these operators (i.e., strong subscriber growth/market penetration).
Sylantro Systems Continues Partnering Ways with Huawei Relationship| Analyst: Joe McGarvey | Carrier IP Telephony - Global | Client Access | Event Summary December 4, 2006 – Huawei Technologies and Sylantro Systems announced that Huawei has selected the Sylantro Synergy application server as part of its IMS solution. The selection came after an extensive evaluation of the Synergy platform, according to Huawei officials. The Sylantro Synergy application server is designed to provide Huawei’s service provider customers with an application server that will fortify Huawei’s IMS solution with a rich set of features and innovative services. Analytical Summary • Current Perspective: Positive on Huawei’s selection of Sylantro Systems’ Synergy hosted multimedia application server for inclusion in the Chinese equipment supplier’s IMS solution, as the announcement adds momentum to Sylantro’s efforts to increase distribution of its technology through partnerships with top-tier equipment makers. The announcement suffers slightly due to its lack of details concerning the scope of the contract, its exclusivity, and whether Huawei and Synergy will be doing joint-development work. • Vendor Importance: Moderate to Sylantro Systems, as the addition of Huawei adds to the company’s already impressive list of strategic partners, including Microsoft, Motorola, Nokia, and IBM. Though the inclusion of Huawei as another distribution partner and reseller is important to Sylantro’s overall strategy, the announcement does not include mention of any traction the two companies may have achieved and does not represent an immediate source of revenue for Sylantro. • Market Impact: Low to moderate on the hosted multimedia application market, as the relationship between Huawei and Sylantro, without accompanying deployments at this point, does not deliver to Sylantro any immediate customer traction and does not appear to be exclusive. Competitors such as BroadSoft, Comverse, Nortel, and Tekelec are not immediately threatened by the pairing of the two companies. Motorola Takes WCDMA Remote – Thanks to Huawei| Analyst: Ken Rehbhen | Wireless Infrastructure - Global | Event Summary December 4, 2006 – Motorola announced a solution for GSM operators to deploy UMTS/HSxPA into existing GSM installations. The solution utilizes the Motorola Horizon 3G-n fiber product, a macro Node-B split into a BaseBand unit (BBU) and a Remote Radio Unit (RRU). The BBU is inserted in existing Motorola Horizon II Macro Indoor or Outdoor cabinets while the RRU is deployed remotely. The Motorola Horizon 3G-n fiber BBU and RUU are available now. Analytical Summary • Current Perspective: Slightly positive on Motorola’s announcement of the Motorola Horizon 3G-n fiber BBU and RRU. Slim profile baseband servers supporting remote radio heads are a valuable tool for operators making the transition from GSM to WCDMA; leveraging unused space in a base station to host a new overlay network is smart economics. As planned, Motorola appears to be selling a re-badged version of Huawei’s Distributed Node B solution, leveraging the joint venture announced with Huawei in July 2006. The question remains, will operators look to Motorola for WCDMA solutions when Motorola is not the original source? • Vendor Importance: High to Motorola, because the new product launch clearly shows the commitment it has toward making use of Huawei’s 3G portfolio. Motorola’s decision to abandon a homegrown 3G base station portfolio in favor of Huawei’s product line was needed to improve the business’ economics. Highlighting its new portfolio is vital to increase operator mind share. • Market Impact: Moderate on the wireless infrastructure market, because competing 3G vendors have already started delivering on main/remote concepts. In addition, the market anticipated that Motorola would leverage its relationship with Huawei to deliver base station solutions in advance of new developments emanating from the China-based Joint Venture Develpoment Center (JVDC). Yet Motorola’s new launches do signal that it has begun leveraging the fruits of its WCDMA partnership, and competitors can expect to see new products coming out of it. Ericsson Opens Up About Optical, Cites Win in China| Analyst: Jason Marcheck | Optical Infrastructure - Global | Event Summary December 5, 2006 – Ericsson announced that it was selected by Central China Power Grid Co (CCPG) as the sole supplier of its East-West corridor optical transmission project. Ericsson will be supplying both 2.5G and 10G SDH transport equipment for a network that is slated to cover 55 power stations over at 1,500 km route. The project is due to be completed and put into operation by 2009. Ericsson also has contracts with several other Chinese power companies for the Marconi OMS equipment line. Analytical Summary • Current Perspective: Positive on Ericsson’s announcement that it won a contract to supply optical backbone equipment to Central China Power Grid Co. The win helps to further solidify an already strong position in the People’s Republic with energy providers by deepening a reliable optical sales channel for Ericsson. From a marcom perspective, the announcement also shows that Ericsson is finally ramping up its messaging in support of its optical infrastructure practice. • Vendor Importance: Moderate to Ericsson, because although all contact wins are good news, deepening sales channels in China is especially welcome given the growth potential that the Chinese market holds. At the same time, power companies are not likely to scale their optical networks to the same degree as a telecom carrier – making the win less promising in the long run than it would be if it was with one of China’s telecom service providers. • Market Impact: Low on the optical infrastructure market, because due to Marconi’s long standing presence as an optical infrastructure supplier to domestic power companies, Ericsson’s latest win probably does little to change the competitive landscape in China. At the same time, Ericsson’s win does deepen sales channels in the People’s Republic, and helps to bolster the OMS porfolio’s credibility as a trusted optical product line – both useful instruments as Ericsson tries to drive future sales in China. AT&T Pitches Disaster Recovery| Analyst: Counse Broders | Internet/Managed Services - U.S. | Client Access | Event Summary December 4, 2006 – AT&T shows off its global network disaster recovery solutions at ITU TELECOM WORLD 2006. AT&T is the first U.S. carrier to have a portable disaster recovery container brought to Asia, demonstrating AT&T's capability to support disaster recovery and business continuity strategies globally. Analytical Summary • Current Perspective: Positive on AT&T’s Disaster Recovery effort as the carrier demonstrates that it is able to project its disaster recovery efforts globally, ensuring its MNC clients that the vendor is prepared to address outages wherever needed worldwide. • Vendor Importance: High to AT&T, as the company needed to show that its commitments to its MNC clients can be backed up by appropriate resources to not only provide global reach, but also help with disaster recovery. As U.S. companies look to comply with Sarbanes-Oxley and other regulations, they will find the need for uptime not only in the domestic U.S., but wherever they do business in the world, and AT&T helps position itself as a go-to brand for this support. • Market Impact: High on the managed services market, as few competitors can match AT&T’s efforts to provide quick disaster recovery solutions globally. Competitors such as Qwest, which have demonstrated their own solid disaster recovery facilities and equipment, will have to examine how much of a global player they want to be perceived as, and take steps based on how they wish to compete against AT&T in this realm. Verizon Business Showcases Its Remote IP Application Management| Analyst: Bernt Ostergaard | Business Telecom Services - Europe | Event Summary December 5, 2006 – Verizon Business is showcasing its Remote IP Application Management service at ITU World for the first time. Verizon Business is taking the wraps off its new service that provides comprehensive monitoring and management of business-critical applications and infrastructure. It helps ensure essential business processes are available for the end-users. It provides real-time visibility into system metrics, reports, change tickets, and problem resolution via the customer portal. Analytical Summary • Current Perspective: Slightly positive on Verizon Business Asia’s unwrapping its remote IP Application Management capabilities, because it aligns the managed services concept with customer success criteria, defining SLAs that reflect the user experience rather than just network performance characteristics. The customer portal can be tailored to individual customer needs to reflect critical performance characteristics; however, there are still a few wrinkles to iron out. Verizon Business has yet to establish an in-region professional services staff, relying on flying appropriate specialists from the US, and also needs to provide a wider customer win list beyond the airline vertical. Also the monitoring and management platform based on Totality technology is not yet integrated with the Verizon Business Customer Center platform, so customers should expect to migrate later. • Vendor Importance: High to Verizon Business Asia, because the managed services component is so prevalent in the business market and because Verizon Business’s capabilities in Asia are not well publicized. So offering SLAs that reflect business needs and user experience and developing specific screens is a strong differentiator. • Market Impact: Moderate on the Asian business marketm because Verizon Business is still growing its business here and has work ahead to gain the necessary regulatory approval in major Asian markets. Verizon Business has more presence and capabilities in the region than widely believed and can move quickly once it has passed the necessary regulatory and contractual hurdles facing it today. Competitors such as AT&T will need to review how they can address the managed applications space, and better utilize its USi acquisition in this region. Siemens Unveils hiT 7300 to Asian Market| Analyst: Jason Marcheck | Optical Infrastructure - Global | Client Access | Event Summary December 4, 2006 – Siemens Communications announced that it would showcase a variety of solutions aimed at enabling service providers to deploy new end-user services with a comprehensive portfolio of broadband access and data transport products. Specific to optical networking, the vendor indicated that it would be demonstrating its hiT 7300 DWDM platform in conjunction with its GPON platform, which is designed to deliver up to 2.5 Gbps of bandwidth to end-user locations. Analytical Summary • Current Perspective: Neutral on Siemens Communications’ showcase of the hiT 7300 at the ITU Telecom World show in Hong Kong. On the one hand, showing off the hiT 7300 makes sense. The DWDM platform is Siemens’ new flagship optical platform – serving as both an improvement to the hiT 7500 long-haul platform as well as the vendor’s metro core ROADM offer. Integrating the hiT 7300 into its product demonstrations at the ITU show reinforces the value that Siemens places on the hit 7300 as an important part of its overall networking portfolio. On the other hand, it might well be the wrong product to talk up in Hong Kong. The vendor has already “debuted” this product several times, and the ITU show‘s location would have provided the optimal staging ground for Siemens to demonstrate any progress it has made with Photonic Bridges (i.e., the Chinese MSPP vendor it acquired in early 2006). • Vendor Importance: Low to Siemens Communications, because the fact that Siemens is taking steps to include its optical product line as part of its end-to-end broadband networking messaging indicates that optical remains a priority as Siemens prepares to begin life with Nokia as Nokia Siemens Networks (NSN). At the same time, Siemens has been touting this product for the past nine months at trade shows without supplying any new information regarding customer uptake or when WSS-based ROADM capabilities will be in general availability. • Market Impact: Low on the optical infrastructure market, because the hiT 7300 has been on the market since early 2006 (when Siemens introduced the product for the first time at CeBIT 2006). As such, Siemens’ optical competitors should be well aware of the product’s capabilities and how the vendor is positioning it. In addition, after nine months on the market, another trade show demonstration is unlikely to give network operators new insights into the platform’s capabilities. Cisco Unleashes CDS in the East| Analyst: Glen Hunt | Carrier Infrastructure - Global | Client Access | Event Summary December 4, 2006 – Cisco expanded the video and IPTV delivery capabilities of its Internet protocol next-generation network (IP NGN) architecture with the introduction of the Cisco Content Delivery System (CDS). This solution offers both cable and wireline providers a highly-extensible platform for the delivery of video-on-demand and time-shifted video services. The Cisco CDS enables carriers to accelerate the creation and distribution of advanced entertainment, interactive media, and advertising services to subscribers' televisions, PCs, mobile handsets, portable media players, and other media-capable devices. Analytical Summary • Current Perspective: Very positive on Cisco unveiling its Cisco Content Delivery System (CDS), because it provides a three-element approach in the areas of defining, preserving, and realizing the video experience to give operators a foundational reference for further driving their video network architecture choices to meet burgeoning customer demand for personalized and flexible content services and applications. • Vendor Importance: High to Cisco, since the company needed to launch the Cisco CDS to enhance its IP NGN Service Exchange Framework in the area of promoting new video delivery and IPTV technical advances in order to differentiate the Cisco CDS from rival video solutions that are currently over-reliant on centralized server architecture, static content delivery mechanisms, and frequent streaming-only capabilities. • Market Impact: High on the overall digital content infrastructure realm, including the IPTV segment, as Cisco commands a clear strategic position within video networks, as evidenced by the adoption of 30 million of its STBs and six million of its DVRs by operators, thus obliging all digital content networking rivals to devise new product development and sales and marketing strategies to counter the launch of CDS. Huawei Gets a Little Help on WiMAX from OKI| Analyst: Peter Jarich | Wireless Infrastructure - Global | Client Access | Event Summary December 4, 2006 – Huawei and OKI Electric Industry announced a VAR agreement to deliver mobile WiMAX solutions into Japanese telecom operators. OKI will leverage Huawei’s WiMAX products- radio access and control equipment – along with network and maintenance services from its offices throughout Japan. OKI will also customize Huawei’s mobile WiMAX products for Japanese market requirements while developing its own WiMAX modules, indoor solutions and WiMAX-WiFi converter. Analytical Summary • Current Perspective: Slightly positive on Huawei’s partnership with OKI Electric aimed at driving mobile WiMAX into Japanese service providers. OKI stands as a very strong channel for Huawei’s 802.16e-2005 kit. What’s more, the value-added reseller (VAR) agreement helps deliver service support as well as a deeper understanding of Japanese operator requirements. Against a backdrop of utter silence on Huawei’s mobile WiMAX plans – the vendor didn’t even announce this agreement – it’s still unclear how well Huawei can support OKI and whether or not the Japanese VAR will gain access to a credible solution. • Vendor Importance: Moderate to Huawei, because channel development should be the least of Huawei’s concerns in the WiMAX market. Yes, channels are an important tool for cracking markets like Japan, if only to help understand local product requirements and deliver competent, responsive service support. Ultimately, however, strong products, visible product launches and customer references are much more important for building mind share and early credibility. Equally important will be IMS and network services expertise (deployment, training and integration) that can be leveraged globally. Huawei has yet to move effectively on these fronts. • Market Impact: Low on the WiMAX infrastructure market, because while largely quiet about its 802.16e-2005 products, a VAR deal with OKI clearly telegraphs Huawei’s plans to attack the market, along with product plans that are far enough along to snag an important reseller. Yet, quiet or otherwise, Huawei’s mobile WiMAX plans are no secret. What’s more, without new product or customer details, the company’s position on WIMAX is only marginally more credible than it was before the announcement. Aperto Leverages WiMAX Ecosystem to Compensate for Scale| Analyst: Peter Jarich | Wireless Infrastructure - Global | Client Access | Event Summary December 4, 2006 – Aperto Networks announced its WiMAX Solutions Ecosystem (WiSE) program. Focused on delivering end-to-end WiMAX solutions, WiSE counts more than 50 participants in five segments of the market: Enabling Technology (RF and baseband components, element management and provisioning); Interoperability; Applications (VoIP, video , municipal wireless, business support); Tools & Services (training, network planning, installation); Channels (distribution, value-added solutions). Analytical Summary • Current Perspective: Positive on Aperto’s WiMAX Solutions Ecosystem (WiSE) program, because WiSE results in a far better WiMAX solution than Aperto could ever deliver via its own product development and sales resources. Of course, most competitors can tap the very same partners. Likewise, larger competitors – today’s 2G and 3G heavyweights – will leverage these partners where necessary, all while promising better scale as well as pre-integrated solutions drawing on in-house application, transport, OSS/BSS, device and services capabilities. • Vendor Importance: Very high to Aperto, because end-to-end solutions are critical for any would-be WiMAX vendor. Alongside smaller vendors like Aperto, the WiMAX market is being driven by top-tier telecom vendors including Alcatel-Lucent, Huawei, Fujitsu, Motorola, NEC, Nokia, Nortel, Samsung and ZTE. Stature aside, Aperto cannot promise the same in-house assets – assets reaching beyond the 802.16 radio access network. Hoping to compete head-to-head against these established wireless heavyweights, a wide array of assets will be needed. WiSE moves Aperto in this direction. • Market Impact: Moderate on the WiMAX infrastructure market, because, quite simply, there is almost no barrier to competitors replicating Aperto’s WiSE program (either on their own or with the same partners); the benefit of extensive partner programs will go to vendors who can actually deliver successful solutions. Yet, WiSE does undeniably make Aperto a stronger WiMAX competitor and one of the few broadband wireless vendors (along with Alvarion) to talk up a broad partnering strategy. Larger competitors will need to explain how they retain an edge in the market while smaller vendors will want to jump on the partnering bandwagon. Metro Ethernet Forum Announces Its 100th Member and Increased MSO Presence| Analyst: Glen Hunt | Carrier Infrastructure - Global | Client Access | Event Summary December 4, 2006 - The Metro Ethernet Forum announced its hundredth member, ARRIS, marking another milestone in a year of exceptional growth. ARRIS, sees its MEF membership as a key component in its mission to provide broadband local access networks with best-in-class video, high-speed data and telephony systems to deliver voice, video and data to the home and business. ARRIS joins other vendors such as Cox and Time Warner Cable who see carrier Ethernet services as a significant business opportunity. Analytical Summary • Current Perspective: Positive on the Metro Ethernet Forum’s (MEF) announcement that has added its 100th member. The MEF has seen its membership increase over 50% in the last six months alone, while its primary focus -- the carrier Ethernet market -- is itself experiencing exceptional growth. The MEF membership includes service providers and equipment vendors that are delivering triple play and even quad-play services over Ethernet. • Vendor Importance: High to the MEF, because this announcement shows that vendors and service providers are taking its role in the industry seriously, not only by joining the organization, but by submitting their offerings for a rigorous testing process to achieve MEF certification for their products and services. The MEF has expanded and standardized Ethernet services across multiple technologies to achieve a global market impact by positioning Ethernet as the major next-generation network infrastructure. • Market Impact: Moderate to high on the carrier Ethernet market, because although the rapid growth in membership has now reached 100 members, the impact to the market has been felt since the inception of the first round of MEF testing. It resulted in 39 systems from 16 vendors being certified, getting the carrier Ethernet certification ball rolling, and now MEF certification has become table stakes for all vendors. Of note is the increasing number of cable operators (MSOs) who are participating in carrier Ethernet offerings in addition to the more traditional wireline carriers, as they are penetrating the triple play residential market and beginning their assault on delivery of Ethernet business services. Cisco Spreads Its Session Border Control Technology to 7600 Series| Analyst: Joe McGarvey | Carrier IP Telephony - Global | Client Access | Event Summary December 4, 2006 – Cisco announced a series of enhancements to the 7600 Series router platform, including the integration of session border control (SBC) functionality for IP Multimedia Subsystem (IMS) and non-IMS voice applications. The integrated SBC on Cisco 7600 Series routers provides per-session control and management of IP multimedia traffic based on widely-used protocols such as SIP and H.323 for signaling interoperability and eliminates the need to purchase standalone SBC equipment. Availability of the technology in the 7600 Series was not provided. Analytical Summary • Current Perspective: Slightly positive on Cisco’s addition of session border control (SBC) technology to the Cisco 7600 Series router portfolio, as the enhancement brings Cisco’s integrated session-handling technology to a platform that plays a strategically vital role in Cisco’s delivery of IP-based voice and multimedia services to consumers and businesses. The announcement suffers slightly in that Cisco included few specifics about the SBC upgrade in the announcement, such as the manner in which the SBC technology is implemented on the 7600 Series and relevant performance information. • Vendor Importance: Moderate to Cisco, which needed to bring SBC functionality to its edge services router in order to add consistency across its router families, with lower-end routers have been fortified with SBC technology for the past couple of years and the higher end 12000 Series was equipped with an SBC line-card in December 2005. The addition of the functionality to the 7600 Series provides continuity to the Cisco product line and brings much-needed Integrated SBC capabilities to the access edge of the network. • Market Impact: Moderate to high on Cisco’s competitors in the SBC market, including standalone SBC market leaders Acme Packet and NexTone. Cisco – along with Juniper – is promoting an integrated approach to session management that is in opposition to the overlay approach offered by standalone systems. Any furthering of Cisco’s technology poses a threat to standalone competitors. HGC and Alcatel-Lucent Partner for Managed Communication Solutions to SMEs| Analyst: Mayur Sahni | Telecom Services - Asia | Client Access | Event Summary December 4, 2006 – Alcatel-Lucent and Hutchison Global Communications (HGC) have entered into an agreement to offer Managed Communication Services entailing equipment (OmniPCX Office), applications, network services and management to SMEs in Hong Kong. HGC and Alcatel-Lucent will offer network and premise-based business communication solutions with maintenance and remote services management solutions on purchase of connectivity solution(s) from HGC. Analytical Summary • Current Perspective: Positive on Hutchison Global Communications’ (HGC) partnership with Alcatel-Lucent to offer Managed Communication Services to the SME segment, because it gives HGC a strong partner with a compelling solution offering. The option of having either a network or premise-based solution increases the addressable market for HGC, and simultaneously offers deployment flexibility to the customer. In addition, the bundling of connectivity link with equipment, support and managed services makes HGC’s offering compelling to SME segment. • Vendor Importance: High to HGC, because this move does give the local service provider a much-needed offering to address the SME market. However, HGC will have to rely on Alcatel-Lucent and its partners, for solution delivery, support and maintenance services to the SME customer. • Market Impact: Moderate on the business telecom services market in Asia, because the offering is limited to Hong Kong and does not extend to other APAC countries. In addition, HGC will face stiff competition from local incumbent PCCW in the SMB market. However, the bundling of connectivity link with equipment and managed services. ITU Launches Telecom World 2006 with a Virtual Global ICT Empowerment Network| Analyst: Bernt Ostergaard | Business Telecom Services - Europe | Event Summary December 3, 2006 – Muhammad Yunus, announced during special address to participants in the ITU TELECOM WORLD 2006 Opening Ceremony today, that Grameen will team up the International Telecommunication Union (ITU) and other partners, including Cisco Systems, QUALCOMM and a newly formed consortium, Enclusion, to launch a virtual, global 'ICT Empowerment Network' as part of their collaboration through the Connect the World initiative (www.itu.int/partners). Analytical Summary • Current Perspective: Neutral on the announcement of a virtual, global 'ICT Empowerment Network' involving the ITU, the Graemeen Bank and major global ICT companies (spearheaded by Cisco and Qualcomm) to develop sustainable and social improvements for the world’s poor – mainly women. This is because the Nobel Peace Prize recognition of Muhammad Yunus and the Graemeen Bank in Bangladesh hinges more on an innovative loan model to help poor women start a viable business and change their station in life than on cheaper technology. The cheaper technology drive as promoted in the GSMA $30 phone project spearheaded by Motorola and the MIT $100 laptop will generally lower the access barrier to communication, but does little to change the social inequalities that Yunus is redefining. • Vendor Importance: High on the ITU, because it is losing power and influence as telecom monopolies are deregulated worldwide, and needs to find a new role combining the social development dimension and telecoms in a mutually profitable combination. By focusing on business models, the ITU is developing a message for poor and isolated communities as well as defining a new strategy for profitable private investments in bringing connectivity to those disenfranchised. And right now a lot of these models are coming out of Asia. • Market Impact: Moderate on global telecoms market for services and equipment, because carriers and manufacturers are well aware of this dynamic and are already investing, but the deeper involvement of China in the process as expressed by the other main speaker, Wu Bangguo, can accelerate both faster development and wider deployment than previously envisaged. Microsoft Sets Sights on Telecom Sector with Solutions| Analyst: Counse Broders | Internet/Managed Services - U.S. | Client Access | Event Summary December 3, 2006 – Microsoft debuts its portfolio of telecom solutions and services developed specifically for the global telecommunications industry at ITU Telecom World. Microsoft is offering a range of voice, video, data and mobile solutions for service providers, as well as unveiling new products and initiatives designed for providers to create revenue-generating offerings for businesses and consumers. Analytical Summary • Current Perspective: Slightly positive on Microsoft’s move into telecom solutions and services, because the company has the muscle and backing to be a key player in this space and help carriers and service providers differentiate themselves from competitors. However, the company’s slow uptake on security in the past and concerns over trusting a player such as Microsoft over established players could make for a slow uptake. • Vendor Importance: High to Microsoft, because the company needs new segments such as the telecom industry for it to grow its business and revenues, having conquered the OS space for personal computers, and telecom represents a major opportunity for it at a time when carriers need to differentiate themselves based on service offerings, not bandwidth. • Market Impact: Moderate on the managed applications space, as any move by Microsoft represents a threat to existing players given the company’s size and financial deep pockets, but it must still perform and demonstrate that it is putting out a solid, quality solution and not a best, first effort that could hurt adopters. While AT&T and Sprint are in the mix offering some of its pitches, not all carriers are likely to jump to be first in line without assurances and incentives. Verizon Business Launches APAC VoIP Solutions| Analyst: Tim Dillon | Telecom Services - Asia | Client Access | Event Summary December 3, 2006. – At ITU 2006 in Hong Kong, Verizon Business showcased its new range of VoIP services including Centrex, IP trunking and hosted IPT products. Formally launched in Australia, the services will be broadly available across Asia during 2007. Analytical Summary • Current Perspective: Positive on Verizon Business’ launch of its VoIP services in Asia-Pacific as it will strengthen the service provider’s competitive position and the service is generally well provisioned, providing a choice of options for enterprise customers. • Vendor Importance: High to Verizon Business in Asia, as the company lacked a comprehensive range of VoIP services in the region and this initiative should redress that issue. • Market Impact: Moderate on enterprise customers in Asia-Pacific as the availability of the Centrex service is initially limited and the true appeal of Verizon’s offer lies both in the feature set as well as the international availability, which will be expanded in 2007. Veraz Leverages Compression Technology to Prop Up Media Gateways| Analyst: Joe McGarvey | Carrier IP Telephony - Global | Client Access | Event Summary November 28, 2006 – Veraz announced that mobile operators in Asia and other rapidly growing markets could deploy Veraz media gateway products to realize an increase of up to tenfold in voice capacity between existing mobile switching centers. The I-Gate 4000 family of media gateways allows service providers to accommodate the growing demand for mobile services cost-effectively by enabling operators to increase significantly the bandwidth utilization of existing transmission lines. Analytical Summary • Current Perspective: Slightly positive on Veraz Networks’ announcement that its I-Gate 4000 family of media gateways is being utilized by Asian operators and other carriers in developing markets to increase the capacity on transmission networks between mobile switching centers (MSCs). The revelation indicates that Veraz has tapped into a potentially lucrative market that will help to sustain its revenue as operators contemplate the migration to IMS and other long-range infrastructure upgrades. The announcement suffers due to the lack of an associated customer contract, which would add real-world validity to Veraz’s claim. • Vendor Importance: Moderate to high to Veraz, which, as a company that recently filed for an IPO, needs to demonstrate market demand for its products and establish competitive differentiation. The company also needs to demonstrate that it has a strategy to compensate for declines in demand for its TDM-based compression technology (DCME). • Market Impact: Low to moderate on the media gateway and softswitch market, since Veraz is not revealing new technology or a new product to which rivals will need to respond with product innovation or upgrades to their respective media gateways. In addition, the lack of associated customer announcements creates skepticism around the actual traction that Veraz is seeing in emerging markets. |
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