& cplSiteName &

Thomson Fuses VOIP & IPTV

Ray Le Maistre
10/12/2006
50%
50%

PARIS -- Broadband World Forum Europe -- Thomson S.A. (NYSE: TMS; Euronext Paris: 18453) is the latest company to fly the convergence flag with news of a new product combination that pulls together two of the industry hot technologies -- VOIP and IPTV. The French company also announced a fixed/mobile convergence deployment at French competitive operator Free . (See Thomson Offers Combo and Free Uses Thomson for FMC.)

That's interesting enough in itself. What makes Thomson's developments even more interesting is that they're being driven by Jacques Dunogué, the former President of Alcatel Europe who jumped ship soon after Alcatel (NYSE: ALA; Paris: CGEP:PA) and Lucent Technologies Inc. (NYSE: LU) announced their engagement. (See Alcatel Suffers First Merger Casualty.)

At the time, sources inside Alcatel said he left after failing to get the COO position that was handed to, and then rescinded by, Mike Quigley. (See Alcatel Suffers First Merger Casualty, Alcatel, Lucent Seal Deal, and Quigley Steps Down as Lucatel COO.)

Dunogué says he was already talking to Thomson at that time. So how does Thomson compare with its mighty Parisian neighbor? "It's much smaller," he remarks with a smile.

It is also providing him with a greater level of control and responsibility. As senior executive VP of the Systems Division at Thomson, Dunogué is responsible for the company's full range of telecom assets, from the home devices such as set-top boxes and home gateways, to video content processing equipment such as encoders, though to the Cirpack softswitch and Smartvision IPTV middleware systems that Thomson acquired during the past 16 months. (See Thomson Buys Cirpack and Thomson Buys IPTV Player.)

The revenues are significant. In the first six months of this year the Systems division generated €1.2 billion ($1.5 billion) in sales, about two thirds of which came from the home devices. The company has a long history in set-top boxes and, according to market statistics from Dell'Oro, commanded almost 50 percent of the global market for dual and triple play home gateways.

Thomson's latest home gateway announcement, being promoted here this week, is about its deal with BT Group, an engagement Light Reading reported on months ago. (See BT Gets a Gateway and Thomson Ships BT Home Hub.)

Now Dunogué is looking to ramp up business in the other Systems lines, and believes a converged softswitch/IPTV middleware platform will prove an attractive prospect for Tier 2/Tier 3 carriers, and even cable operators, looking to provide triple play services with the minimum fuss.

Smartvision doesn't currently have the IPTV middleware market recognition that companies such as Microsoft Corp. (Nasdaq: MSFT), Siemens Communications Group , with its Myrio middleware, Lucent (MiViewTV), Minerva Networks Inc. , and Orca Interactive Ltd. have, but it's the technology behind one of the world's biggest IPTV rollouts -- at Orange (NYSE: FTE) -- and is used in about 10 commercial deployments, including Síminn and Telecom Italia Mobile SpA (Milan: TIM), that are serving more than 500,000 subscribers, says Dunogué. (See FT Offers 'Bouquet TV' and IPTV in Iceland.)

The Cirpack softswitch, meanwhile, has been racking up customers in Europe for years, and has more than 80 deployments with license sales topping 4 million VOIP lines, says Dunogué. (See Thomson's Softswitch Tops 4M and VOIP Finds Home in Eastern Europe.)

While the market considers that combination, Thomson will continue to beef up its home devices line-up. Dunogué says Thomson will unveil a next-generation IP set-top box during the next quarter, and is adding functionality to its home gateway products, such as high definition sound (which sounded crystal clear during a short demo) to enhance services such as Internet radio.

But can Thomson deliver at a price the carriers can afford? The Home Gateway Initiative (HGI) is looking for multifunctional units at a price per box of up to €70 ($87.79). (See Telcos, Vendors Battle Over Gateway.)

"We hit those price targets. We're pushing a lot of hardware, about 25 million home units this year, so we have the economies of scale. And while we sell the hardware initially, we then have the chance to follow up with additional software sales. The value is increasingly in the software," says Dunogué.

Generating growth across the Systems division, while challenging, is not Dunogué's main problem. "The main problems are at the bottom line. We need to strive to be more efficient."

— Ray Le Maistre, International News Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Between the CEOs
CEO Chat: UXP Systems' Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
FirstNet: A Billion-Dollar Boondoggle?
Dan Jones, Mobile Editor, 8/26/2016
WiCipedia: Should Men Be Included? & Olympians Face Discrimination
Eryn Leavens, Special Features & Copy Editor, 8/26/2016
Google Fiber Can't Be Called a Failure
Carol Wilson, Editor-at-large, 8/26/2016
Google Fiber Downsizing Not Confirmed
Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.