& cplSiteName &

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
Sarah Thomas
50%
50%
Sarah Thomas,
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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
Sarah Thomas
50%
50%
Sarah Thomas,
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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.

From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
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.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom on what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
LRTV Custom TV
Nokia Introduces Virtual Service Router for More Rapid Service

4|6|17   |     |   (0) comments


James Cumming, product line manager for virtualized service routers at Nokia, demonstrates how the virtual router based off the Nokia ecosystem changes the network function experience.
LRTV Custom TV
The Keys to SD-WAN Success

4|6|17   |     |   (0) comments


Versa Networks CEO Kelly Ahuja talks about the key requirements for service provider-managed SD-WANs.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Time for a Telecom Reboot
Steve Saunders, CEO and founder, Light Reading, 4/19/2017
Unlicensed: It's What's Next for US Mobile Operators
Dan Jones, Mobile Editor, 4/19/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Verizon's Fiber Spend Won't End With Corning
Mari Silbey, Senior Editor, Cable/Video, 4/19/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.