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 Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
LRTV Huawei Video Resource Center
Amsterdam ArenA as an Agile Campus

11|24|14   |   3:31   |   (0) comments


The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
Operators Should Block Ads to Get Their Cut, Startup Says
Sarah Reedy, Senior Editor, 11/24/2014
$35B+ Spectrum Auction Dings Verizon, Shines Dish
Dan Jones, Mobile Editor, 11/24/2014
Like Us on Facebook
Twitter Feed