Light Reading
Dr. Hossein Eslambolchi lists 10 things that are causing havoc in service provider networks

Eslambolchi: 10 Service Provider Pain Points

Column
Column
Column
1/14/2011
50%
50%

Dr. Hossein Eslambolchi, chairman and CEO of 2020 Venture Partners, has sent one of his Top Ten lists. This time, for your edification, the Top Ten Service Provider Pain Points:

1) Flat ARPU
Where is the capex to support 50-percent traffic growth year over year for quad-play services?

2) Network Congestion
How do you plan for capacity when mobility induces temporary congestion without any warning?

3) All-You-Can-Eat Connectivity Services
Good for content providers, but bad for service providers.

4) Peer-to-Peer Traffic
It's growing fast, but there is no business model in sight to monetize it.

5) Over-the-Top Video
Service providers feel their networks are being robbed for this kind of VoD delivery.

6) Network Security
We're seeing attacks, attacks and more attacks. Lots of time, cost and resources exhausted fending off network attacks.

7) IPv6
This is a massive "must do" with no incremental revenue attached.

8) Regulations
Net neutrality is probably hampering a packet monetization solution that could make service provider traffic more profitable.

9) The Inability to Monetize Packet Traffic
Service providers are living with low-margin "dumb"-pipe revenues while Google and others are gaining high-margin traffic via over-the-top applications. This isn't sustainable for service providers, especially on wireless networks where spectrum is constrained.

10) Customer Churn
When customers aren't happy, they churn. When they churn, service providers lose money.

Now a question: What do you think service provders should do in 2011 to eliminate some of these pain points?

For more on Dr. Eslambolchi and his various corporate roles, see:



— The Staff, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Bob Ackerman
50%
50%
Bob Ackerman,
User Rank: Light Beer
12/5/2012 | 5:15:21 PM
re: Eslambolchi: 10 Service Provider Pain Points


Once again Dr. Eslambolchi nails it - the need for service providers to reimagine and reinvent their business models (and supporting architectures) while they still have meaningful cash flow.  The challenge for the vast majority of these providers is the speed - or lack thereof - with which they have historically responded to strategic challenges.  In most cases, the solutions to their challenges will be found outside of their own organizations - presenting yet another challenge - PARTNERING. 

sleinen
50%
50%
sleinen,
User Rank: Light Beer
12/5/2012 | 5:15:20 PM
re: Eslambolchi: 10 Service Provider Pain Points


"What do you think service provders should do in 2011 to eliminate some of these pain points?"


Stop pretending to be ISPs and go back to run national Phone Companies again.  Like in the olden days, you know, when you could extract rent from a loyal customer base running a single Service for decades, with your lines at 99% utilization, and without having to bother with annoying changes in usage or with technical advances.


Geez, I can't hear this whining anymore.


 


 

OldPOTS
50%
50%
OldPOTS,
User Rank: Light Beer
12/5/2012 | 5:15:19 PM
re: Eslambolchi: 10 Service Provider Pain Points


In most cases, the solutions to their challenges will be found outside of their own organizations - presenting yet another challenge - PARTNERING.


 


But the capital for these solutions may be  more than those with solutions can come up with, even with partners. The cost isn't just access.



 


But I concur that the service providers need to reinvent their business models to maintain market share against those already entrenched.


 


OldPOTS


obaut
50%
50%
obaut,
User Rank: Light Beer
12/5/2012 | 5:15:18 PM
re: Eslambolchi: 10 Service Provider Pain Points


How about figuring out how to make profit based on the explosive growth in network service (L3/2) sales volumes, fueled by the customers' increased dependence on peer-to-peer, rich content etc. packet based services?


The solution lies in being able to deliver the service at better cost efficiency than the competition, to get higher margin.


And to deliver these solutions takes proactive approach to break through innovations, not the "it's not in our plan, so don't bother us" type monopolistic mindset that has somehow stuck with the network SPs even in this competitive age.

Bob Ackerman
50%
50%
Bob Ackerman,
User Rank: Light Beer
12/5/2012 | 5:15:17 PM
re: Eslambolchi: 10 Service Provider Pain Points


I think this is where they would like to stay - IF they could.  VoIP and services like Skype have sucked the margin out of the legacy business.  Not the first time this has happened nor will it be the last.  Change is the only constant and these folks need to figure it out - or get out of the way.  Just ask the original main frame manufacturers - The Bunch, the mini-computer manufacturers, most of the PC manufacturers, legacy air carriers, and on and one goes the list... Adapt, evolve or die..  Technology-driven commercial evolution..

More Blogs from Column
PICMG, which develops open modular standards for embedded computing, looks ahead to the next decade.
As it embraces SDN and NFV, the networking industry needs to ensure it doesn't create new silos and repeat the innovation-stifling mistakes of its past.
Give it up for the optical specialists who are more than mere 'plumbers.'
Operators can cut the cost and complexity of extending legacy services to all-IP environments.
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 Huawei Video Resource Center
Interview With Rick Talbot, Principal Analyst, Current Analysis

10|31|14   |   2:12   |   (0) comments


At the NFV Open Cloud Forum 2014, Rick Talbot shared his positive feedback about the holistic and open approach that Huawei adopts for SDN and NFV. He also found the open sharing at the event valuable as it features different perspectives from Huawei experts, telecom operators, industry analysts as well as security experts.
LRTV Huawei Video Resource Center
Interview With David Snow, Principal Analyst, Current Analysis

10|31|14   |   2:24   |   (0) comments


David Snow talked about his understanding of Huawei and its SoftCOM strategy at the NFV Open Cloud Forum 2014, saying that Huawei's wide approach combining IT and CT expertise, introducing big data and analytics into solutions and contributing to the OpenStack community particularly resonate with him and make the company stand out in the industry.
LRTV Huawei Video Resource Center
Interview With Roz Roseboro, Senior Analyst, Heavy Reading

10|31|14   |   3:13   |   (0) comments


Roz Roseboro commented on Huawei's data center capabilities and NFV solutions at the NFV Open Cloud Forum 2014, saying that in addition to covering all three key domains of compute, storage and networking, the company also emphasizes the importance of management capabilities and professional services, which are essential in making NFV a reality.
LRTV Huawei Video Resource Center
Interview With Michael Howard, Co-founder & Principal Analyst, Infonetics Research

10|31|14   |   5:25   |   (0) comments


Michael Howard talked about SDN, NFV, and OpenStack adoption at Huawei's NFV Open Cloud Forum 2014. Particularly, he pointed out that Virtual Enterprise CPE is the top NFV use case that operators plan to invest in over 2014 and 2015 to deliver new enterprise services through virtualized functions.
LRTV Huawei Video Resource Center
Interview With Jerry Caron, Senior Vice President, Current Analysis

10|31|14   |   3:11   |   (0) comments


At Huawei's NFV Open Cloud Forum 2014, Jerry Caron from Current Analysis said that orchestration and management are key to realizing SDN and NFV for global carriers, and the approach that Huawei is taking, with its FusionSphere Cloud OS at the core, is in the right direction to address the challenges.
LRTV Documentaries
Broadband Battles

10|31|14   |   01:39   |   (0) comments


This year's Broadband World Forum featured a number of show floor battles focused on access gear, components and coffee.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed