Light Reading
The changes ahead will rip apart the current telecom operator culture and carriers need to be prepared.

Telcos Face 'Dramatic Disruption' – TMF Exec

Carol Wilson
6/2/2014
50%
50%

NICE, France -- TM Forum Live! -- Service providers are facing "dramatic disruptions" to their business that will require sweeping cultural and organizational change and likely threaten most of current industry practices and processes, TM Forum VP-Strategy Ken Dilbeck warns here today.

"What is required is a radical, disruptive approach to [operations and business support systems] and orchestration," Dilbeck says, kicking off an NFV Workshop prior to the opening of the TM Forum 's annual event.

The primary goal is to be able to develop new services and capabilities rapidly, but that will require "relooking at all of our infrastructure top to bottom and determining what has to change, what has to be more flexible and more dynamic," Dilbeck says.

But network operators must also be willing to undergo sweeping internal changes that fundamentally change their culture and organizational structure, even though that process will be painful and difficult.

Converging network and IT resources into a single set of on-demand capabilities will "produce power and political struggles within corporate infrastructure because boundaries will have to be broken down," Dilbeck warns. He cites one immediate example: Lengthy, costly procurement processes that take years and cost millions will be replaced by a phone call to Best Buy, using a credit card, or outsourcing of the entire process to a specialty vendor.

Network operators also must learn to succeed as part of a solution or ecosystem and not necessarily be the partner in charge, he adds.

"There will be an evolution into a value fabric, and you might not be the center of the chain-delivering service, from the SLA perspective," Dilbeck says. "In the future, you will be in a different role. In some cases, you will have the customer relationship but in others, you won't. "

Dilbeck says the TM Forum is stepping up through its Project Zoom to enable all of this change and to exploit the collective intelligence of not only the telecom industry but other industries such as IT and the Internet players. (See TM Forum Tries ZOOMing to NFV.)

Promising to "be radical," Dilbeck says Project Zoom will set a target for all of this transformation and define the migration path from where carriers are today to the target point. Along the way, he says, Project Zoom will not reinvent the wheel, but will re-use best practices from the computing industry and elsewhere and take a real-world practical approach to enabling transformation that must happen for service providers to succeed.

— Carol Wilson, Editor-at-Large, Light Reading

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
briansoloducha
50%
50%
briansoloducha,
User Rank: Light Beer
6/2/2014 | 3:18:33 PM
Re: Disruption Common Now
Would you care to elaborate on the sources of these disruptions?

Given the disruptions that people have seen both with telecom bubble of 2000 and housing bubble of 2008, coupled with the relentless growth of Internet traffic and erosion of revenue per bit, I'd like to like that people can adapt to many situations.

The disruptions I'm hearing about this spring are related to beef and pork prices, which, at the margin may affect discretionary spending of lower-income customers, but hardly represent a clear-and-present danger to the entire telecom industry.

So far, SDN and NFV seem to be a forest-clearing exercise, and I am following developments in this field, I haven't seen anything there to convince me that it's a dramatic disruption.

Is there something out there that's obvious that I have missed?
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
6/2/2014 | 2:59:02 PM
Re: Disruption Common Now
Carol,

Undoubtedly, service providers are in for a major disruption, perhaps bigger than anything we've seen to date. Moving from circuit to packet networking was hugely challenging and disruptive. No need for TMF to ring the alarm bells--except, perhaps, to inject a little excitement into the show. But I'd think Nice is exciting enough :-)

 
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
6/2/2014 | 11:20:15 AM
Re: Disruption Common Now
Phil, you make a good point but this is a matter of degree. What I am hearing over and over again here in Nice is that there is a period of pain lying ahead. I just heard it again from Fred Feisullin of Sprint - there is a level of disruption ahead that is going to rock the telecom culture harder than previous transitions, even the Internet and the telecom bubble bursting. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
6/2/2014 | 11:16:46 AM
Re: Disruption Common Now
It's the annual TMF "sky is falling" presentation. At some point, the sky will fall. Or not. Meanwhile, network operators continue to adapt to a rapidly changing environment -- some better than others, but there are very few who aren't making the effort.
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
6/2/2014 | 11:06:37 AM
Disruption Common Now
The idea of business disruption in telecom should be nothing new. Since the mid-1990s when the Internet first started getting more common business and consumer use, the challenges and opportunities in telcom have been shifting, with disruption being more commonplace every year. 

Being nimble enough to take advantage of new opportunities and to ward off new threats is the distinction between successful teleocm companies and unsuccessful ones.
rgrutza600
100%
0%
rgrutza600,
User Rank: Lightning
6/2/2014 | 5:49:46 AM
Webmaster
To Lightreading webmaster, Please fix the GRAYISH color of the text in the articles.  It makes them very difficult and unappealing to read.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Graham Finnie from Heavy Reading about some of the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control.
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
LRTV Huawei Video Resource Center
Frank Miller: Distributed Solutions are the Best Build for the Future - Part II

1|9|15   |   2:46   |   (0) comments


At SCTE, Frank Miller, Global CTO of MSO at Huawei, speaks about Cable 2.0 and its innovative future.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Cuomo Unveils Broadband Aid Program
Alan Breznick, Cable/Video Practice Leader, 1/19/2015
BlackBerry Wants Net Neutrality Protection -- That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive