& cplSiteName &

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        ADD A COMMENT
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
5G could ride the traditional wireless hype cycle, or – quite possibly – break the chain, suggests Nokia's North American CTO.
NFV feels like it's going nowhere fast, suggests Napatech's Dan Joe Barry.
The NG-PON2 standard is the key to the future of ultra-broadband, believes Calix's Alan DiCicco.
Amazing new 5G innovations are coming below 6GHz -- it's not just about mmWave.
5G is about more than just faster mobile broadband, notes Tom Sawanobori, SVP and chief technology officer at the CTIA.
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
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
UPCOMING COURSE SCHEDULE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
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.
LRTV Documentaries
From Philly, With Love

9|30|16   |     |   (0) comments


Join Alan Breznick, cable's answer to the Italian Stallion, as he runs through the highlights of SCTE Cable-Tec Expo, lumbers along in Rocky Balboa's footsteps and searches for the perfect Philadelphia cheese-steak.
LRTV Interviews
CenturyLink: SD-WAN Customers Looking for Value Not Cost Savings

9|30|16   |   5:31   |   (0) comments


At NFV & Carrier SDN in Denver, CenturyLink's Eric Nowak told Light Reading that when customers launch SD-WAN, they aren't necessary looking to save money, but instead they are looking for more value from what they're spending. He also shared some unique case studies and lessons learned from launching SD-WAN services.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments


For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments


Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Upcoming Live Events
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
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
Google, Facebook Gaining Network Equipment Clout
Patrick Donegan, Chief Analyst, Heavy Reading, 9/26/2016
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
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.