Light Reading

Deutsche Telekom Works Toward One Network

Sarah Thomas
2/25/2014
50%
50%

BARCELONA -- Mobile World Congress -- Despite being at Mobile World Congress, Deutsche Telekom is keen to move the attention away from wireless and on to the idea of convergence.

Integrating its wireless and fiber networks is a big goal for the German operator. As such, Claudia Nemat, board member, Europe and technology, says Deutsche Telekom AG (NYSE: DT) will have eight million IP lines across its footprint in Europe by the end of the year. It has already converted 2.1 million lines in Germany, but aims to convert its entire footprint by 2018.

"Mobile-only business models aren't really sustainable in the long run," she told attendees at a DT press conference in Barcelona, adding that a holistic strategy means best customer experience can be created.

That strategy starts with a migration away from the PSTN to create the same platform for all the services Deutsche Telecom offers. That way, all updates become software-driven; product cycles are reduced, and costs should go down as well, Nemat said. Macedonia is the first country DT has moved to all-IP, noting that the operator saved €20 (US$27) per customer per year as a result. Slovenia is next on the list, then Hungary, Croatia, Montenegro, and finally Germany, Romania, and Greece, which she said are more complex markets.

While Nemat barely mentioned the big buzzword SDN, her comments mesh with what DT has said in the past about software-defined networking. Axel Clauberg, VP of aggregation, transport, IP, and fixed access networks, told Light Reading in October that the carrier would shift to a simplified, software-defined network as well as a next-generation OSS to compete against over-the-top players. (See Deutsche Telekom: A Software-Defined Operator.)

Simplifying will be a big task, however. The operator has more than 150 cities in Germany equipped with LTE at 150 Mbit/s and is plotting 5.5 million LTE terminals in the country by the end of the year. Almost all of its mobile sites are connected to fiber, and Neik Jan van Damme, a board member in Germany, said the focus is on doubling the coverage of VSDL in Germany.

"We have for 2014 the first 40 local networks that will be connected with vectoring," he said. "We'll have 3 million households ready for vectoring by the end of 2014."

To show it's serious about convergence, the DT execs showed off a new Huawei Technologies Co. Ltd. -built Fiber Access router that combines fixed-line and mobile for the fastest speeds in home. The device, which was trialed in Macedonia, will be available in the autumn.

Deutsche Telekom CEO Timotheus Hottges also reiterated the convergence talk of his board members in a keynote address on Tuesday. Consumers don't care about connectivity provided they have the best data access, he said, suggesting that means they should have just one contract and a global SIM service as well.

"Fixed-mobile convergence, HetNets, small cell networks -- we have to make these networks integrated and fast," he said. "Fast means LTE, LTE-Advanced, Cat 6, MIMO, vectoring, fiber-to-the-home, and beyond."

— Sarah Reedy, Senior Editor, Light Reading

(10)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
2/27/2014 | 1:18:46 PM
Deutsche Telekom Works Toward One Network
@Sarah, no, they do not lead in everything, true.  They obviously have an advantage in carrying out their plans with more government control, but my point is that they have higher usage in Europe and there seems to be a more focused goal on advancing telecommunications as a high priority.  They also seem willing to build the infrastructure that supports that. 

As you point out from speakers, that can also make it difficult to navigate, especially for private companies trying to do business in Europe.

DHagar
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/27/2014 | 1:11:16 PM
Re: Connectivity/data access
It would all be itemized still, of course, especially with online billing, but having one for both makes a lot more sense. You could also get promotional offers across platforms and upsell opportunities for the operator.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/27/2014 | 1:09:52 PM
Re: Deutsche Telecom Works Toward One Network
Well, I don't know if Europe is leading the way in everything. All the DT speakers repeatedly stressed what a mess regulation is over there for telecoms.
uwerichter
50%
50%
uwerichter,
User Rank: Light Beer
2/26/2014 | 1:02:26 PM
Slovenia vs Slovakia
The country next on the list to move to ALL-IP is most likely Slovakia, not Slovenia.
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
2/26/2014 | 8:43:33 AM
Re: Connectivity/data access
While an integrated bill would be good rather than having a bunch of bills from a bunch of service providers -- as in a hospital stay -- it's also important to line item certain elements of the bill so that all parties know where costs are going up. It would be easier to recognize those costs that are going up faster than others, which could help all parties recognize where these increases need to be better controlled.
DHagar
50%
50%
DHagar,
User Rank: Light Sabre
2/25/2014 | 6:34:01 PM
Deutsche Telecom Works Toward One Network
Fascinating, Sarah.  Europe contines to lead the way.  It does seem that the integrated model would be more sustainable and offer multiple advantages, both now and for the future.  But the key seems to be the "simplicity" as you point out - which will be coordinating billing AND customer service; people will get turned off to a service that they have to manage separately.

I wonder if US carriers won't pick up on this model?

DHagar
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/25/2014 | 4:47:49 PM
Re: Connectivity/data access
In that case, an integrated network might be better assuming that means your bill is integrated, as the DT CEO suggests. I use AT&T for U-Verse and mobile, and it drives me nuts that their CSRs don't have visibility into me as a whole customer, just the silos they operate in. Makes things inefficient and more expensive for the operators and annoying for the customers.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
2/25/2014 | 4:15:38 PM
Re: Connectivity/data access
Yes, of course. And consumers also care about customer service when they run into a problem. That comes up quite a bit when I talk to consumers.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/25/2014 | 2:42:51 PM
Re: Connectivity/data access
He means they don't care where it comes from provided it works well. I tend to agree -- fiber, WiFi, LTE -- don't matter as long as it's fast. But, I'd add you do start to care when one is more expensive or capped lower than the other.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
2/25/2014 | 2:38:41 PM
Connectivity/data access
"Consumers don't care about connectivity provided they have the best data access."

This confuses me. Aren't connectivity and data access the same thing?

Confusing me is not sporting. It's too easy.

Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
To keep up with consumers' increasing digital lifestyles, an IT system and operating model overhaul is required using a modern BSS, IES and analytics.
Hot Topics
FCC Plan Could Stymie Rural Broadband
Carol Wilson, Editor-at-large, 8/3/2015
Eurobites: Nokia Seals HERE Sale
Paul Rainford, Assistant Editor, Europe, 8/3/2015
Verizon Small Cells Ready to Rock in Chicago
Sarah Thomas, Editorial Operations Director, 7/31/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
I was pleasantly surprised when Ericsson recently agreed to let me interview its CEO, Hans Vestberg. Traditionally, mega-companies like Ericsson (or Cisco) have kept ...
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?