Skip to main content

Next Generation Thinking to Empower NGNs

According to a new ABI Research Brief, network operators are slowly beginning to roll out all-IP next generation networks (NGN). The move to an Internet Protocol-based infrastructure is a natural evolution for the fixed network as broadband services, including Voice over IP (VoIP), take over from the legacy Public Switched Telephone Network (PSTN).

Mobile communication networks have a parallel evolution to IP -- although at a slower pace -- but the standards work is accelerating. By the end of 2007 there will be full NGN standards for fixed and mobile networks allowing IP-based services to be deployed on NGNs, a process that ABI Research analysts expect to be largely complete by 2015 for a total cumulative investment of more than $1 trillion.

"As we move to the end of the decade, bandwidth-hungry services such as IPTV will need an IP infrastructure to support them. Operators will also want to control operating costs by moving all services over an IP network," says ABI Research analyst Ian Cox. "This will enable deployment of service delivery platforms and IMS (IP Multimedia Subsystem) in the network, streamlining operations and allowing new services to be introduced quickly."

For users, says Cox, NGN provides better and more compelling services and deliver higher data rates, for video and rich voice sessions. For operators, NGN allow services and transport in the network to be separated and to evolve independently. This will speed up the development of content and services, to the advantage of the whole industry. At least, that's the intent.

If only it were that simple, and then perhaps a trillion dollar capital investment might be a wise move. However, it's not that simple, because broadband service providers won't be deploying IMS infrastructure in a competitive vacuum -- the world is changing, apparently much faster than the typical service provider can change their business model.

Meaning, service provider executive leadership that hasn't evolved beyond 'previous generation thinking' will attempt to apply NGNs from a legacy business model perspective. They will believe that technology, like IMS and SIP, will be the essential basis to assure their future viability. They will also believe that once they're armed with these platforms, and the underlying IP network infrastructure, developing and launching successful service offerings must become easier.

I question the validity of both assumptions, since I believe that technology and enabling platforms are a relatively small part of what really needs to change, in order to pre-position broadband service providers to compete effectively in the 21st Century. NGNs deployed without 'next generation thinking' are doomed to produce lackluster results. Why?

Broadband service providers are inherently 'marketing challenged' organizations -- with only a few exceptions globally. Most still are unable to translate shifts and changes within their marketplace into business opportunity. Most lack a strong market assessment discipline, and many lack fundamental strategic foresight.

My point, you can't expect to compete in a fractured and diluted communications and entertainment service marketplace with an unsophisticated or obsolete grasp of market and consumer segmentation. Prior success, given the business model dynamics of the last century, doesn't assure future success. Clearly, a forward-looking perspective typically won't come from those who tend to dwell on the past.

In the past, a perspective that's centered around technology and platforms may have been 'good enough' for a sedate monopoly or duopoly business environment. It's not good enough today, you can be assured of that fact.

Do service providers really have a good grasp of the market trends already in motion, and can they anticipate what their customers will require from them -- going forward towards the horizon? Hint: the answer won't be found in the equivalent to a business assessment rear-view mirror, with walled-gardens as the focal point.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve