& cplSiteName &

DT Completes All-IP Move in Croatia

Iain Morris
12/2/2015
50%
50%

Deutsche Telekom has completed its migration off PSTN systems and on to all-IP networks in Croatia, bringing the number of countries in which it is now an all-IP operator to three.

The German incumbent had previously hit the all-IP milestone in Macedonia and Slovakia and is committed to shutting down all of its European PSTN networks by the end of 2018, making it arguably the region's most ambitious telco when it comes to all-IP transformation. (See Does BT Lag European Peers on All-IP?)

Table 1: All-IP Progress in Europe

Operator All-IP deadlines Progress to date Publicly stated goals/benefits Notes
BT 2025 All-IP core network already built Simplifying estate; replacing legacy networks; saving costs Operator claims 21CN project achieved all-IP-to-exchanges target and that current initiative will take all-IP to premises
Deutsche Telekom 2018 Macedonia, Slovakia and Croatia are all-IP Service agility; cost savings (€1.2 billion ($1.3 billion) by 2020 from use of cloud-based technology) All-IP move is designed to support a major reduction in the number of service platforms Deutsche Telekom maintains across Europe, from about 650 before the process began to just 50 at its conclusion
KPN N/A >60% of connections Optimization for very high data volumes; reduced complexity; faster time to market "To support our best-in-class access services, we continue to move towards an all-IP network," said KPN in 2014 annual report. "Moving towards a single IP core is needed to ensure best-in-class integrated services."
Orange 2020 All broadband services in Mauritius are all-IP Improved user experience; better scalability, security and energy efficiency; enabling development of new services All-IP pilot under way in Mauritius, which was chosen, says Orange, because of its "size, the representativeness of the different markets, such as residential, enterprise and mobile, and the presence of all services and technologies"
Swisscom 2017 >25% of connections; >33% of customers Enabling cost-effective use of new services; offering services irrespective of type of access technology Has migrated data transport network to IP, commissioned IP-based telephony and multimedia platform and been offering IP-based services since 2009
Telecom Italia N/A N/A N/A Migration from PSTN to all-IP under way
Telefónica N/A N/A N/A All-IP forms a part of network transformation Telefónica is carrying out
Telekom Austria N/A All fixed voice customers in Austria on all-IP To overcome the problem of technology obsolescence related to the use of legacy networks Has revealed that another subsidiary will shortly make an announcement on all-IP conversion
Source: Goldman Sachs, operators, Light Reading.

Deutsche Telekom AG (NYSE: DT) believes it can realize savings of about €10 ($10.6) per customer per year from the move but has also positioned all-IP as a platform underpinning investments in virtualization and SDN -- which are sometimes described as New IP technologies.

In the short term, however, the all-IP plan is forcing Deutsche Telekom to pump more funds into capital expenditure. The operator has previously indicated it will cost between €30 ($31.8) and €60 ($63.6) per customer to complete the all-IP migration.

In Croatia, where Deutsche Telekom currently maintains about 1 million fixed lines, that implies a total cost of between €30 million ($31.8 million) and €60 million ($63.6 million). But it should allow the operator to save about €10 million ($10.6 million) a year in the long run.

Deutsche Telekom claims to have spent about 400 million Croatian kuna ($55 million) on overhauling its Croatian systems over the last five years, which tallies with earlier estimates.

Its all-IP transformation has included the replacement of 72 old local exchanges throughout Croatia with just two state-of-the-art facilities -- one in the capital city of Zagreb and the other in the major seaport of Rijeka.

However, Deutsche Telekom also said it expects to continue making investments in this area in the future to improve its service capability.

"Such investments allow us to offer innovative products and the fastest top-quality services on the Croatian market," said Davor Tomašković, the CEO of T-Hrvatski Telekom (HT), Deutsche Telekom's Croatian subsidiary, in a statement. "In 2015, HT is to invest more than thirteen hundred million kuna [$180 million], which is 25% more compared to 2014."

In euro terms, HT spent about €123 million ($130 million) on capital expenditure last year. It has invested €109 million ($115 million) over the first nine months of this year.

Much of the investment in the future is likely to go into NFV and SDN technologies as part of Deutsche Telekom's TeraStream initiative, the name the operator has given to its next-generation network project.


For more NFV-related coverage and insights, check out our dedicated NFV content channel here on Light Reading.


TeraStream has already been piloted in Croatia and Greece and is aimed at allowing Deutsche Telekom to launch services with web-like agility and to improve overall efficiency.

The operator's ultimate vision is a pan-European network that will include a small number of production facilities serving multiple markets, instead of one "factory" for each country.

As a result of this current complexity, Deutsche Telekom now maintains about 50 platforms for each country in which it operates, or 650 in total (excluding T-Mobile US), according to a spokesperson for the company. "In the future, there will be just 50 -- including TV, messaging, voice and so on -- to offer across the footprint, instead of 650," he says. "So with more and more countries switched to IP, we are able to expand these new services step by step."

Table 2: Deutsche Telekom's All-IP Rollout

Country/region Total fixed lines in September ('000) IP fixed lines in September ('000) Percentage all-IP (September) Status/target for completion
Macedonia N/A N/A 100% Completed
Slovakia 858 858 100% Completed
Croatia 1,020 1,001 100% Completed
Montenegro N/A N/A N/A 2015
Hungary 1,614 1,178 73% 2016
Romania 2,117 362 17% 2018
Greece 2,577 36 1% 2018
Europe 8,735 3,944 45% 2018
Germany 20,354 6,354 31% 2018
Note: Europe covers all of Deutsche Telekom's European subsidiaries bar Germany. Outside its domestic market, the operator has a fixed and/or mobile presence in Albania, Austria, Croatia, the Czech Republic, Germany, Greece, Macedonia, Montenegro, the Netherlands, Poland, Romania, Slovakia and the UK, through its EE joint venture with Orange. Source: Deutsche Telekom.

Deutsche Telekom began trialing this approach in March this year, offering the same IP-based TV and VPN services across the markets of Croatia, Hungary and Slovakia. (See Deutsche Telekom Turns On Pan-European IP.)

The TV service includes a data analytics feature that allows Deutsche Telekom to make recommendations to customers based on their usage profiles, while the VPN is aimed at reducing time to market for business customers.

During the SDN & Openflow World Congress in October, Axel Clauberg, Deutsche Telekom's vice president of aggregation, transport, IP and fixed access, said the operator was planning on extending the pilot to a "broader footprint." He told Light Reading that feedback from customers had been very positive. (See DT, Vodafone to Launch SDN-Based VPNs.)

Deutsche Telekom has also been offering New IP-like services in the all-IP market of Macedonia, allowing customers to subscribe to a broadband service on tap without having technicians visit their premises.

In Croatia, meanwhile, it has developed an IP-based offer that it calls HP Business Connect, which it says allows customers to use a landline on a mobile device.

According to Hrvatski Telekom, call set-up speeds and quality are dramatically better across what it calls "post-migration services."

"It is much easier to connect customers -- changes to be made after a relocation, for instance, can be done in no time," says Deutsche Telekom's spokesperson in describing some of the broader benefits of the all-IP migration. "So the technical relationship between customer and provider is less complex."

— Iain Morris, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
12/2/2015 | 12:06:16 PM
Great perspective on Euro all-IP transitions
THis really makes it v ery clear which companies are leading the way in Europe and which have some major catching up to do. DT and Swisscom look to be on course to go all IP first and then, I wonder, will that make it easier for them to move into a distyributed cloud arena and make best use of SDn and NFV? It must do....
From The Founder
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
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 Interviews
BT's McRae Sheds Light on 4K Strategy

5|25|17   |   4:45   |   (0) comments


At Light Reading's Big Communications Event 2017 in Austin, Texas, BT Group's Chief Network Architect Neil McRae talks about what it took for BT to broadcast live sports in 4K. Catch up with all our BCE coverage at http://www.lightreading.com/bce.asp.
From the Founder
How the NIA Aims to Advance NFV

5|25|17   |   08:07   |   (0) comments


Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
LRTV Custom TV
Better Solutions That Address Growing Scale

5|25|17   |     |   (0) comments


For Comcast, the X1 rollout and 17-fold increases in broadband speeds in the past 16 years are among factors driving the need for Energy 2020 solutions that reduce cost and consumption, says Mark Hess.
LRTV Custom TV
Ethernity Network Delivers Instant Offloading of Network Functions With All-Programmable Intelligent NIC

5|25|17   |     |   (0) comments


David Levi, CEO of Ethernity Networks, explains that programmability of the hardware makes the company's All-Programmable Intelligent NIC uniquely beneficial for communications service providers that need advanced data appliances with agile support of virtualization. Utilizing the company's patented network processing technology, Ethernity offers data path ...
LRTV Documentaries
BCE 2017: Vodafone Gets Obsessed With Cloud-Native

5|25|17   |     |   (0) comments


Vodafone's Matt Beal updates us on Project Ocean and explains why simple virtualization isn't enough of a goal for network transformation. Catch up with other BCE 2017 keynotes and news at http://www.lightreading.com/bce.asp.
LRTV Documentaries
BCE 2017: Intel's Take on Network Transformation

5|24|17   |     |   (0) comments


In this BCE 2017 keynote, Lynn Comp discusses Intel's vision for areas such as analytics, automation and service assurance. For more videos and BCE coverage, see http://www.lightreading.com/bce.asp.
LRTV Documentaries
Order From Chaos: The Steve Saunders BCE Keynote

5|24|17   |   17:27   |   (0) comments


Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability testing.
Think of this as the video sequel to the recent columns he's written about NFV and the prospect of a telecom app store. (See

LRTV Documentaries
Service Provider Panel: Partnering in the Digital Era

5|22|17   |     |   (0) comments


Coopetition has always been part of telecom, but the ecosphere now includes data centers, vendors, apps developers, cloud service providers and Internet content providers. This BCE 2017 panel explores the new attitudes among network operators as to the value and variety of ...
LRTV Interviews
Site Demo: AT&T's IoT Flow Platform

5|19|17   |   04:25   |   (0) comments


At AT&T's R&D center in Tel Aviv, Israel, project leader Eyal Segev talks about the operator's Flow platform and how it helps to prototype IoT applications.
LRTV Documentaries
Agent of Change: A Q&A With AT&T's John Donovan

5|18|17   |     |   (0) comments


Carol Wilson talks with the man leading AT&T's transformation efforts about the challenge of change.
LRTV Documentaries
BCE Service Provider Panel: The New Business Realities

5|18|17   |     |   (0) comments


For virtualization to happen, the telecom industry first has to grapple with key functional aspects of SDN and NFV that need to be universal, such as onboarding of virtualized network functions and federation of software-defined networks.
LRTV Interviews
BCE Service Provider Keynote: CenturyLink

5|16|17   |   22:32   |   (0) comments


Aamir Hussain leads the Product Development and Technology organization at CenturyLink, which includes the company's information technology function. He is an experienced senior technology executive with more than 25 years of proven success in the implementation of global technology operations, operationalization of complex technology, infrastructures and business ...
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
Cities Clamor for More Clout at FCC
Mari Silbey, Senior Editor, Cable/Video, 5/23/2017
What's Blocking 4K TV Today
Alan Breznick, Cable/Video Practice Leader, Light Reading, 5/22/2017
Sonus & Genband Finally Combine to Form $745M Company
Dan Jones, Mobile Editor, 5/23/2017
Fright Wigs & Cocktails: BCE 2017 in Pics
Mitch Wagner, Editor, Enterprise Cloud, 5/19/2017
Apple Looking to Cook 5G Test Devices
Dan Jones, Mobile Editor, 5/24/2017
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.
Animals with Phones
What Brogrammers Look Like to the Rest of Us Click Here
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.