Deutsche Telekom ICSS Launches IP eXchange to Offer the Latest and Greatest in Converged IP Connectivity for Mobile and Fixed Operators

| Aug 4, 2009 | Wholesale Telecom Services | Competitive Intelligence Report

| Analyst: Joel Stradling

Current Perspective: Positive
Vendor Importance: Moderate
Market Impact: High

Event Summary

July 31, 2009 -- Deutsche Telekom ICSS launches a new IPX (IP eXchange) platform-based on international standards and GSMA specifications. The offering can include fully-managed connections and CPE for fixed network access up to 2.5 Gbps; or IPsec access up to 30 Mbps. Support for GRX and the carrier’s MMX service is also available. Deutsche Telekom ICSS’ IPX product offers security, premium reliability options, and multiple QoS.

Analytical Summary

• Current Perspective: Positive on the launch of an IPX service by Deutsche Telekom ICSS, because the carrier is advancing beyond many other providers that have yet to launch fully-commercialized IPX products. Deutsche Telekom ICSS is in a good position to offer IP interconnectivity meeting GSMA IPX/SIP-I and other international standards for offering secure, reliable and QoS-backed transport, which are attributes inherent in IPX standards as they stand today, for rich-media fixed/mobile services over a converged IP backbone.

• Vendor Importance: Moderate to Deutsche Telekom ICSS, because the carrier needed to evolve its mobile services portfolio beyond MMS and GRX, as well as take advantage of its IP NGN. The carrier needs to meet the growing needs of fixed-network providers, mobile network operators, ISPs and media and content firms, to securely transport fixed & mobile voice and data. Finally, a number of European international carriers, such as Orange, TI Sparkle, BT Belgacom ICS, TIWS, BT, and TeliaSonera, are also actively marketing progress with IPX developments, and Deutsche Telekom ICSS needed to respond to such threats.

• Market Impact: High on the international wholesale fixed and mobile services market, because Deutsche Telekom ICSS has significant global network assets and operational scale, which combined with its established market share, makes its new IPX proposal threatening to the opposition. Rivals will now be looking to communicate pre-commercial development progress, as well as move forward their agendas for coming to market with defined IPX offerings.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

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Recommended Competitor Actions

• Overall, European wholesale operators need to be pursuing IPX and communicating to prospects current capabilities and their road-maps. However, a modicum of wait-and-see is reasonable until there is stronger demand from MNOs. This area will continue to present opportunities, and the future is likely to see a world-wide fabric of interconnected IPX providers supporting the rollout of FMC, IMS and converged applications complete with QoS per application. Carriers with considerable IP/MPLS assets should really aim to be a part of this evolution.

• Competitors can point to their own IPX initiatives to draw attention away from Deutsche Telekom ICSS. For example TIWS can present its existing IPX portfolio; and BICS and Tata Communications and can present earlier announcements concerning successful trials. For example, BICS can highlight its considerable experience in IPX, citing its successful trials conducted with partner Veraz Networks during mid-2008.

• Orange Wholesale Solutions can point out that it began evolving its GRX range, with IPX as a main objective, back in 2003 in close consultation with the GSMA. The carrier’s 3G GPRS Roaming eXchange, or ‘3GRX,’ product transports mobile roaming data over unmatched global private IP networks and comes with SLA-backed QoS. Moreover, the carrier participates in a number of working-groups to pursue IPX, such as GRX Evolution, IPX Focus, SIP trials, and IPX PCI) and has access to more than 350 mobile operators in 150 countries via a leading global GRX partner.

• BT can emphasize its market-leading role in achieving the world’s second commercial SIP-I bilateral agreement (with Telecom Italia). BT is also conducting activities with the GSM Association’s IP eXchange (IPX) forum and the IP Internetworking Alliance, and is a member in the i3 Forum of Tier 1 carriers sharing knowledge for IP migration. Finally, BT can underline its strong market penetration with its ‘Roam Connect’ service offering an inter-operator hub for C7 signaling messages which reaches over 600 mobile network operators in 199 countries around the world. BT will be in a strong position to meet customer requirements for IPX when the standards and commercial environment are ripe.

Recommended End User / Customer Actions

• Fixed and wireless providers should certainly consider Deutsche Telekom ICSS for international IP connectivity services, because the carrier has considerable experience, network reach, and operational scale to offer a reliable service. The carrier is also now capable of offering a state of the art IPX transport proposal that supports the latest GSMA and international standards for transmitting fixed and wireless voice, data and video over a converged IP network.

• A number of other providers have IPX capabilities, and inquiries should be made across the board to understand who is offering the most competitive price/feature combination. BICS, TIWS, Orange and TeliaSonera are all making various efforts in delivering IPX, and customers should look at pricing options, how many QoS are available and associated SLAs per class, access port speeds, and whether fully-managed options are available including managed CPE.

• MNOs, fixed-line network operators, and content and media companies should be asking their service providers for a vision of the future of IPX services in terms of business plans. For example, what types of applications will be attractive in the market, such as IM, SMS, video, UC, and mobile SaaS, and what are the financial models for delivering the above on fixed and mobile devices around the world? Customers of IPX should be looking for service provider partners that are willing to understand and offer up advice on the business plan, rather than just selling the transport.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

| Client access - Full report in Wholesale Telecom Services | More information

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