Insight Research: Wireline growth awaits economic recovery

2013-02-16 09:51:17

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Mobile TeleSystems adds 100G via ECI Telecom’s Apollo platform
Russian mobile operator Mobile TeleSystems (MTS) has added Apollo Optimized Multi-Layer Transport (OMLT) systems from ECI Telecom to its fiber-optic network backbone. The addition of the OMLTs to the DWDM network, which was based on earlier generations of ECI’s technology, will add 100-Gbps capabilities to the network.MTS offers mobile and fixed voice, broadband, pay-TV, and content and entertainment services to customers across Russia, Eastern Europe, and Central Asia. To improve services, particularly in Russia, the service provider will add 100-Gbps optical transport capabilities between Moscow and Saint Petersburg, a distance of more than 1000 km. This route already has leveraged ECI’s XDM DWDM platform; by adding Apollo OPT9624 OMLT shelves with 100G cards in add/drop points, MTS will leverage the already installed XDM shelves. Core router interconnect will be a central application.“We are facing the challenge to provide our customers quality and high-speed data exchange while its volume grows every year,” notes Andrey Ushatskiy, vice-president and group CTO at MTS. “According to our forecast the penetration of smartphones in our network will reach 60% by the end of 2015; launches of LTE networks in Russian regions will force the mobile traffic growth; implementation of fixed line Internet and its usage growth will increase the volume of data traffic in our backbones at 6-10 times. At the moment the volume of everyday traffic exchange between Moscow and Saint Petersburg is over 1 petabyte and we are building the high-performance system of backbone lines sequentially enhancing its capacity to supply the demand in data exchange in long-term perspective.”“With about 100 million mobile subscribers, MTS is able to edge ahead with 100G capabilities in one of the main telecom links in the country,” adds Boris Mirkin, head of the Russia and CIS Business Unit of ECI Telecom. “The Russian market faces one of the fiercest competition today in the world, and by leveraging the deployed XDM network, MTS can migrate to advanced services more cost-effectively and with faster time to market.”Both the Apollo and the XDM platforms will be managed by ECI’s LightSoft Network Management System.
Zayo Group offers 100G wavelength services to Northeast Corridor
Zayo Group says it can now offer 100-Gbps wavelength services from New York City to Philadelphia and from Philadelphia to Washington, DC.The fiber-optic network services provider announced the addition of 100-Gbps capabilities to its network last December (see “Zayo adds 100-Gbps optical transmission capability”). The Northeast Corridor services are the first Zayo has publicly introduced. A number of financial, government, and large enterprise customers run along the two routes.This deployment connects several important IP peering points and data center locations, including:Ashburn/Washington, DC (21715 Filigree Data Center Campus and 2100 M St NW)New York City (111 8th Avenue) Philadelphia (401 North Broad Street)."This 100G route is now deployed and ready for customer implementations," says Zach Nebergall, vice president of Zayo's Wavelength Product Group. "Zayo designed the network to be able to offer compelling economics to our customers across this key, high demand corridor."
Insight Research: Wireline growth awaits economic recovery
The global telecommunications industry was not immune to economic forces in 2012, which slowed growth from earlier predictions, confirmed market analysis from The Insight Research Corp. Spending for wireline services contracted in 2012, while spending on wireless services grew modestly. According to the new industry market study, telecommunications services revenue worldwide will grow from $2.2 trillion in 2012 to $2.7 trillion in 2018, a combined average growth rate of 3.8%."The 2013 Telecommunications Industry Review: An Anthology of Market Facts and Forecasts" notes that wireless subscriber growth compounded with rising usage will raise wireless revenues by 31% from current levels, yet wireline revenues will remain flat until substantial economic recovery kicks in. Despite these modest gains, there are some sectors, such as Ethernet, cloud, and mobile, that will show double-digit annual percentage growth. In North America, wireless revenues will grow by 35% and wireline broadband revenues will grow by 19% over current levels."Telecommunications revenues are driven by several factors – economic conditions, household expansion, population, and disposable income – to name a few. Until these indicators strengthen we will continue to see modest improvements in growth areas, such as wireless data and IPTV, along with declines in mature services, such as voice and wireline data," said Fran Caulfield, research director for Insight Research. "Global telecommunications spending will hover around 3% of GDP; slightly lower in the U.S. Despite the weakness in these indicators, the fact remains that telecommunications is a key enabler of economic growth and service providers with the right strategy will prosper."In addition to regional and service forecasts, the market research report provides an assessment of the key drivers of this growth, including industry trends, network infrastructure and access technologies, future services, OSS/BSS and capex spending, and enterprise telecom markets.
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