Light Reading

Rogers Exec Urges Cable to Interconnect

Carol Wilson
LR Cable News Analysis
Carol Wilson, Editor-at-large
11/30/2012
50%
50%

NEW YORK -- The Future of Cable Business Services -- Can cable companies attract more large enterprise business by doing a better job of interconnecting their networks to provide out-of-region coverage? (See Cable's Cut of the Biz Services Pie to Eclipse $7B .)

Andy Striegler, VP of carrier services for Rogers Business Services, a unit of Rogers Communications Inc. (Toronto: RCI), thinks so. He used his keynote address here on Thursday to urge U.S. cable companies to more fully develop their wholesale businesses in order to move further up the business services food chain and compete with telcos and competitive local exchange carriers (CLECs) for major business customers.

Striegler believes cable is giving up too much of its potential business with larger companies that have multiple locations to incumbent and competitive telcos that have been interconnecting their networks for years, and have developed standards and business processes for doing so.

Striegler is hoping the cable industry will adopt its own approach to interconnecting networks to enable each other to serve the many larger businesses that require out-of-region connections. He appealed to the cable players here to enter into such interconnection agreements with Rogers to the mutual benefit of both sides.

"Moving up market we get into enterprises such as banks with services across the country, and we have to address issues of network coverage, and the fact we don't have that coverage everywhere they want to go," Striegler says.

Mixed reactions
The idea received mixed reviews from three companies that addressed cable's move into the enterprise market in a panel following Striegler’s speech.

Darren Wolner, director of data product management for Time Warner Cable Inc. (NYSE: TWC), said his company is getting more aggressive in selling Carrier Ethernet services on-net and off-net, but called Striegler's idea "something that we aspire to," but aren't likely to do for some time.

Will Jones, partner in MainSpring360 , a consultancy in customer experience management, thinks cable companies will move toward interconnection more quickly as they start pursuing more enterprise business and "realize what deals they are losing" by not being able to quickly and easily serve locations outside their footprint.

Daniel Lowe, VP/GM for EdgeConneX Inc. , an infrastructure-as-a-service firm backed by Comcast Ventures , agreed with cable's need for smoother interconnection, but sees the execution as "challenging" and warned of possible antitrust issues. He agreed that moving into larger enterprise sales will require a broader footprint.

End-to-end vision
Striegler wants cable companies to interconnect their networks in a way that provides end-to-end visibility, and offers quality of service that meets their customer needs.

"It's all about customer experience -- how do we make sure you are going to look after our customer out-of-territory the way we want you to?" he said.

In an interview after his keynote speech, Striegler said successful interconnection comes down to business processes and established business agreements, and that's what he is looking for from U.S. cable operators. The physical network-to-network interconnections (NNIs) are already well-defined by groups such as the Metro Ethernet Forum (MEF) , but the business deals still need to be made. Cable operators need to make it simple for other carriers to interconnect with established pricing and integration of ordering processes.

Striegler sees cable getting a bigger piece of the US$140 billion business revenue pie -- he claimed as much as $100 million would be addressable -- if operators establish more business agreements for interconnecting networks and selling wholesale services to each other.



"We have been at this quite a while and we have learned quite a bit from working with companies like Shaw [Communications Inc.]," he said, referring to one of Canada's other major cable operators. "We have gone from 17 Gig-E interconnects to more than 60. Our customer is the carrier, not their end customer. We are not probably winning all of their business in our territory -- they've got our pricing but might get better service order intervals from another carrier."

By working closely with Shaw, however, Rogers is able to align its Carrier Ethernet products so that instead of reselling a plain vanilla service, it can deliver more features, without requiring custom engineering for every interconnection.

— Carol Wilson, Chief Editor, Events, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:16:45 PM
re: Rogers Exec Urges Cable to Interconnect


US cablers such as Charter, TW Cable  and Cox have put together these types of interconnection agreements in recent years, just not at the grand scale that's being envisioned here. CTAM put together a template master service agreement for this sort of thing a few years back that involved several major US MSOs as well as Rogers, but i'd have to check to find out what the status of that work is. JB


 


 

joanengebretson
50%
50%
joanengebretson,
User Rank: Light Beer
12/5/2012 | 5:16:42 PM
re: Rogers Exec Urges Cable to Interconnect


Interesting post.Cable companies definitely seem to be focused primarily on selling business connectivity within metro markets.


When I've talked to cable companies about this they've said there isn't a lot of demand for inter-metro connections. But perhaps that's changing -- or perhaps the demand was always there and cable companies just didn't go after it because it was too complicated to do so.


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:16:37 PM
re: Rogers Exec Urges Cable to Interconnect


Maybe that's a big part of it... get the ball rolling at home and have things run smoothly in your home markets before taking on a more complicated task of interconnection unless there's a huge pay day attached to it for both sides that are doing the interconnection.  Hope to get more insight into this soon, or at least an update on how some operators are doing this now, even if the examples are somewhat limited .  JB


 

Flash Poll
From The Founder
Then pick up your axe, put on your spandex trousers and get yourself down to Light Reading's Big Telecom Event (BTE). Kerrang!!!
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
LRTV Huawei Video Resource Center
Predicting Traffic Patterns for Quality Mobile Broadband

4|29|15   |   6:45   |   (0) comments


Accessing information ubiquitously creates complexity and creates heavy traffic onto the network, especially at large-scale events like sporting events or festivals. In this video, Huawei's Mohammad Hussain speaks to experts about how to predict traffic and improve user experience during periods of heavy traffic.
Between the CEOs
Ciena CEO: The Web-Scale Revolution

4|28|15   |   10:32   |   (3) comments


Light Reading CEO and founder Steve Saunders goes head-to-head with long-time Ciena CEO Gary Smith to discuss the impact of the web-scale players, the New IP and 'white box' networks.
LRTV Documentaries
Cox Eyes Cloud-Based Home Networks

4|27|15   |   05:30   |   (0) comments


Cox's Jeff Finkelstein explains how moving services to the cloud will let cable deliver services faster and eliminate constant hardware replacements.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
A study run by Insights in Marketing and commissioned by Meredith shows the devices, channels and ways in which women are consuming content.
Hot Topics
Eurobites: Nokia Quashes Handsets Rumor
Paul Rainford, Assistant Editor, Europe, 4/28/2015
Verizon Builds Key Vendors Into SDN Strategy
Carol Wilson, Editor-at-large, 4/28/2015
Why Is Verizon Fighting With Programmers?
Alan Breznick, Cable/Video Practice Leader, 4/28/2015
No Service, No Problem: 5 Places That Want to Be Unconnected
Eryn Leavens, Copy Desk Editor, 5/1/2015
Astellia Highlights Customer Care Disconnect
Ray Le Maistre, Editor-in-chief, 4/29/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO and founder Steve Saunders goes head-to-head with long-time Ciena CEO Gary Smith to discuss the impact of the web-scale players, the New IP and 'white box' networks.
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Cats with Phones