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kq4ym
kq4ym
5/17/2017 | 12:55:08 PM
Re: Capex saving of NFV
The boom and bust cycles could surely affect CentruyLink bigtime. Although it's hard to guess whether that would be a negative or positive without a crystal ball. Since " CenturyLink doesn't have a wireless operation, nor is it trying to buy digital media or content," it could weather a storm based on it's strengths there, but on the other hand might lose out to more diversified corporations.
danielcawrey
danielcawrey
5/7/2017 | 12:24:43 PM
Re: Capex saving of NFV
One does have to wonder if we're going to be in for another downturn in the future. The economy goes through boom and bust cycles. Given the issues with Europe and China rigt now, another recession would not surprise me. 
James_B_Crawshaw
James_B_Crawshaw
5/6/2017 | 3:40:31 AM
Re: Capex saving of NFV
A back-of-the-envelope suggests it is not unrealistic.

If 50% of their capex is electronic equipment, and 50% of this can be virtualized, and virtualizing (different VNFs sharing the same servers) reduces costs by 50% then capex can be reduced by 12.5% (0.5*0.5*0.5). You might need a bit more justification to get it by the CFO though. 
Carol Wilson
Carol Wilson
5/5/2017 | 5:18:56 PM
Re: Capex saving of NFV
James, do you think that's unrealistic?
James_B_Crawshaw
James_B_Crawshaw
5/5/2017 | 3:44:54 PM
Capex saving of NFV
Apparently they aim to knock $200m a year off their capex budget once the "build out of the virtualized networks" is complete in 2019. That's about 7% of last year's spend and 8% of this year's. That is quite a chunk of free cash flow if they deliver. 


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