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
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network functions virtualization (NFV) is not the easiest of topics to take on board, so here's a Light Reading infographic, developed following conversations with the folks at HP, that helps make sense of where NFV is taking the industry.
Hot Topics
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Verizon Saves 60% Swapping Copper for Fiber
Sarah Thomas, Editorial Operations Director, 5/19/2015
Comcast Targets 6 New Gigabit Markets
Mari Silbey, Senior Editor, Cable/Video, 5/21/2015
Chattanooga Charts Killer Gigabit Apps
Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones