& 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
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.
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.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
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
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
BBC Head: We Must Reinvent Broadcasting for a New Generation
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/21/2017
NFV, SDN, Big Data – It's All About Automation
Craig Matsumoto, Editor-in-Chief, Light Reading, 7/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
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.
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 ...
Animals with Phones
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.