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Many consider Da Vinci the embodiment of the Renaissance because he so aptly captured the spirit of that age of transformation - intense artistic innovation coupled tightly with rapid scientific advance. The telecommunications industry stands on the threshold of another Renaissance characterized by the transformation of networks, services, and businesses. Like its precursor, this Renaissance is fueled in equal measure by art and science, as both have equal play in the successful transformation that is changing the way people think and therefore the way they communicate. This is a unique period in the history of our industry, because it marks a renaissance in the concept, design, and deployment of networks and the services that they support. Whether from the perspective of service providers or end users, this transformation in networking can provide a promising future. In this issue we have attempted to capture this spirit in its various manifestations. The business and service models are our starting point, followed by the facets of the network (access, core, mobile etc.). We also delve into operational models for the transformed network. We have tried to capture the essence of an age when services delivered based on the traditional network are no longer satisfying to users. There is a demand from end users for simplicity and mobility, more entertainment, and lower prices. Driven by this demand, operators around the world need to undertake fundamental changes and are eager to find solutions that will ensure their success. Today, consumers want their service more personalized, simple and flexible - they expect the same service on any device, and they anticipate multimedia and video services, so they want to have broadband access wherever they are. These users are evolving to be more technologically savvy and their list of desires is becoming longer. Yet the accessibility of these services by the market is also expanding as innovation hides incredible levels of technical complexity behind increasingly simpler user interfaces. Operators face the challenges of offering richer multimedia services with this service convergence - but needing to continuously drive OPEX and CAPEX down to meet expectations on price. Not only do they want to transform their networks, but also the business models that drive them. It will be hard to identify who is a fixed network provider and who is mobile network operator in the transformed network, because through transformation, fixed operators will be able to engage mobile businesses and vice. Our Guest Editorial has been provided by one of the telecom industry's most respected innovators - Sol Trujillo - who today leads the charge towards transformation in Australia's leading service provider, Telstra. Sol's approach to Telstra's transformation program embraces the vision of a simpler, richer user experience through a simpler network architecture and service model. A key learning is the importance of speed. To paraphrase a major Telstra message - 'If you know it's going to be painful, get it done faster....' The general and industry press focus on the challenges ahead in the telecoms industry. We have invited another of the telecom industry's most interesting commentators, Bob James, to comment on the need to transform the traditional telecom business from its traditional voice service orientation, to the exciting potential of multimedia services. His article, "The Telco Transformation Program: Shift Right, Shift Up and Face your Partner", examines why the old rules for telecom just don't work any more, and a new strategy to leverage IP is essential to be successful. Before embarking on a capital-intensive program of transformation of the network, it's not enough for a service provider to understand the strategy for a new business model. It's also important to have a model for delivering these new services quickly and profitably over the new network. In "Investing in a Service Portfolio", Spencer and Mercouroff propose an entrepreneurial framework for determining how to approach new service strategies. This approach suggests that it's better to act like a venture capitalist in this new world of innovation - determining quickly what is working and investing heavily there, whilst quickly stopping investment where the results are not so promising.
The renaissance in networking respects no real geographic boundary. We see the move towards transformation occurring in developed and innovative markets like Japan and Australia, but also in developing markets like Vietnam and China. Illustrating this, we have chosen one case study in this issue: China, through the article by Wei Leping, Chief Technology Officer of China Telecom. Also included here is an interview with one of the senior customer executives, Chris Hall, Managing Director of Manx Telecom (part of the Telefónica Group) who have a finger on the pulse of their company's transformation projects. Transforming the network requires study of several areas. Unquestionably, in approaching the investment decisions for transformation, the area that will draw the most attention is the access network. In the era of convergence, we cannot distinguish between fixed or mobile networks for these investment decisions, as the underlying technologies are becoming the same. In a series of articles we explore these issues: . "Laying the Foundations for a Successful Transformation" by W. Van Daele et al;
. "Transforming Mobile Backhauling into a Packet-based Network" by R. Mestric et al;
. "Extending the DSL Revolution to Mobile Networks" by D. Fonknechten et al;
. "Realizing the Full Potential of FTTN" by S. Keller-Tuberg. Core networks are not capital or operationally intensive, but have a huge impact on perceptions of performance. Architectures in this area need to provide a seamless link between multi-service access and the applications and experiences that customers seek: . "Expanding Opportunities by Converging Networks" by J. De Vriendt et al;
. "Blueprint for a Converged IP/MPLS Mobile Backbone" by J. Guillet et al;
. "A Split-Plane Core for Packet Networks" by C. Liljenstolpe. Mobile networks are now beginning a wave of investment to deliver much greater broadband service capacity to mobile terminals and, not surprisingly, need to adopt architectures quite similar to those adopted recently by fixed networks, as highlighted in the following article: . "IT Values Deep in the Mobile Core" by F. Kermade et al;
Operational models also need to be transformed if the benefits of investments in network transformation are to be realized. "Which takes Precedence: your NGN or your Current Business Model?", by Michael Cox, proposes a rational Quality of Service framework for the multi-service network operator based on our real-world experiences with operators in this domain.
Alcatel-Lucent is a long-term transformation partner for operators throughout the world. It is well prepared to help them meet the challenges of the revolution, and deliver its benefits to end users.
The demonstrated benefits of a partnering model in "New Avenues to Value Creation: models for strategic partnerships" by Grant Lyons are supported by the investments made by Alcatel-Lucent to build a global network of 'Integration Centres' for the delivery of network transformation solutions which provide a unique capability to help our customers avoid the missteps as they implement their "Transformation Three Step", as Robert James described these programs of such tremendous complexity.
Transformation in the telecom industry presents many challenging aspects that will continue to evolve over the next decade. Indeed, finding a path through this complexity does require as much artistic talent as it does science - a central theme to this renaissance of networking. This issue of the review provides some useful insights into where a service provider can start the journey. Vince Pizzica
CTO, Alcatel-Lucent Asia Pacific Shanghai
John Tull
CMO, Alcatel-Lucent Asia Pacific Shanghai
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