80% service providers plan to leverage NFV in 2014: Survey

According to a study by Dialogic, the Network Fuel company, an overwhelming majority of 80% of service providers plan to leverage NFV in 2014.
The survey says that 81 percent of respondents foresee a diminishing role for the Central Office; but more than half expect purpose built hardware to have longevity. The top benefits of NFV were seen as relating to CAPEX and OPEX, with 70 percent of respondents believing they could be more operationally efficient with NFV and 67 percent indicating it is a better way to invest capital.
Dialogic  announced the results of its first Network Functions Virtualization (NFV) Survey, to cut through market speculation and deliver relevant information on NFV and virtualization and how it will alter the way service providers deploy the networks of tomorrow.

“It all comes down to the fact that virtualization of Network Functions is just a matter of when, not if,” according to Thomas Schroer, director of service provider marketing for Dialogic. “Because the timing is right now for virtualizing UC and VoIP applications and 70 percent of survey respondents expect to see gains in operational efficiency right away.”

The survey results reveal that an overwhelming majority of respondents see service providers benefitting the most from NFV with Unified Communications the likely starting place for NFV deployments followed by 4G and 3G a distant consideration.

It was no surprise that security and scalability are leading challenges for those implementing a virtualization strategy, so the take away here is for companies to look for solutions and partners who can be trusted to address those concerns.

source: http://www.telecomtiger.com/Technology_fullstory.aspxpassfrom=topstory&storyid=19267&section=S210

Regulator urged to block 4G spectrum sale to Vodafone, Telecom in 2degrees sponsored report

The Commerce Commission has been urged not to sign off on the country's dominant mobile phone operators buying the remaining 700 megahertz radio spectrum for fear of undermining burgeoning competition in the market.

A Covec report, commissioned by new entrant Two Degrees Mobile, claims competition among mobile carriers would be "substantially enhanced" if the antitrust regulator declines clearance for Vodafone New Zealand and Telecom Corp to buy the unsold pair of 5MHz spectrum blocks. The spectrum became available when the government decided to switch-off analogue television services, freeing up the radio waves for use on 4G mobile networks.

If the dominant mobile carriers are cleared to buy the spectrum, the Covec report warns 2degrees will face higher capital costs of the long-run, reducing its incentive to compete aggressively for retail and wholesale customers, particularly for those clients generating high data volumes.

"The retail market concern is the most pronounced in the on-account market segments, which have not yet been fully disrupted, where data traffic is relatively more important, and where 700 MHz spectrum is therefore of greater value," the report said.

Approval would also crowd out 2degrees' ability to offer the same quality of service as Vodafone and Telecom, and hinder incentives for effective spectrum-sharing and national roaming services.

"Each of these is a serious issue in a market, and a group of affected markets is jointly important for mobile sector competition," the report said. "Collectively, they seem likely to pose a material risk to the intensity of competition, especially since the sector is currently transitioning out of a duopoly structure, but we do not yet have three similar-strength networks."

The submission, published on the regulator's website, comes ahead of the Dec. 6 due date for the commission's decision, and as Vodafone and Telecom bid for the remaining blocks at auction. In the first round of the auction last month, Telecom and Vodafone each bought three blocks each (2x15 MHz) and 2degrees two blocks (2x10MHz).

The Covec report said the opportunity cost of leaving the unsold spectrum unallocated is very low as it won't be needed in the foreseeable future. That means declining clearance now doesn't extinguish the prospect of allocating the spectrum to Vodafone or Telecom at a later date.

source: http://www.nbr.co.nz/article/regulator-urged-block-4g-spectrum-sale-vodafone-telecom-2degrees-sponsored-report-bd-149516

Eircom looks at outsourcing operations in bid to cut costs

Eircom is looking at outsourcing its transport and logistics operations in the latest measure to drive down costs at the telecoms firm where sales are slumping.

Releasing first-quarter results yesterday, Eircom said its revenue in the three months to the end of September fell 9pc to €323m, while earnings before interest, tax, depreciation and amortisation (EBITDA) slipped 1pc to €119m.

In the first quarter of the last financial year, revenue fell 7pc and EBITDA declined 10pc year-on-year.

Eircom has been slashing its workforce and aims to reduce it by 2,000 by next summer. About 800 have already left and, of another batch of 830, a chunk will leave by the end of December.

The telco said that its operating costs fell 13pc to €204m in the latest quarter.

Speaking to the Irish Independent, chief financial officer Richard Moat said the company was keeping every part of its cost base under review but EBITDA had continued to stabilise.

He confirmed that part of that review included possible outsourcing of the company's transport and logistics function.

Eircom underwent the largest examinership process ever in Ireland last year. Senior lenders took control of the business under a deal that saw the telco's debts slashed from about €4bn to €2.3bn.

US private equity group Blackstone was one of those that took a hit on its investment in Eircom under that deal. However, the group has since boosted its stake in Eircom to slightly under 25pc. A debt-equity agreement, which meant post-examinership that any investor taking an equity position in Eircom had to also assume debt, ends next year. That will make it easier for other investors to buy stakes in Eircom.

In Eircom's fixed-line arm, revenue fell 10pc in the first quarter to €249m and EBITDA declined 6pc to €111m.

Mr Moat said Eircom's fixed-line business was shouldering the bulk of revenue declines.

NETWORK

Eircom is spending over €400m rolling out a high-speed fibre network, while it has also launched a 4G mobile network and a pay TV service.

The company's chief executive, Herb Hribar, said that those new services would start to have an impact on revenue. He said there had been a "really good" response to the new 4G network, while Eircom had also been investing heavily in trying to attract higher-spending postpay mobile customers. The company owns the Meteor mobile brand.

Mr Moat said the planned takeover of O2 Ireland by 3 wouldn't receive regulatory approval until next spring and would probably take between 12-18 months after that to bed in. He said that gave Eircom "some runway yet" to secure more mobile customers.

Revenue at Eircom's mobile division fell 5pc in the quarter but its EBITDA rose to €8m from €2m in the first quarter last year.

source: http://www.independent.ie/business/irish/eircom-looks-at-outsourcing-operations-in-bid-to-cut-costs-29796929.html