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Telefónica & NEC Win Award for Virtualized Home Gateway Trials

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MADRID -- Telefónica and NEC Corporation (TSE: NEC 6701) have won the Telecoms.com award for the best fixed network innovation project of 2014 for their virtualised CPE (vCPE) trial which is helping to reduce access broadband network costs while providing a platform to accelerate future service innovations. The trial is taking place in Brazil where Telefónica operates under the Vivo brand and provides broadband as well as landline, cable TV and mobile services.

Telefónica and NEC were the first companies in the world to begin virtualizing consumers’ broadband gateways in October 2013. The simplified gateway provides basic connectivity, acting as an access point, switch and modem. All other IP routing (IPv4 and IPv6), Dynamic Host Configuration Protocol configuration and Network Address Translation functionality is provisioned remotely from the cloud, running as virtualised network functions (VNFs) on commercial-off-the-shelf (COTS) servers.

A simplified home gateway is less prone to breakdowns and fixes or upgrades to firmware, bandwidth or memory can be provisioned remotely, eliminating costly engineering visits to the customer’s site. Vivo’s existing customers are using their current home gateway as a virtualised router and migrated functions are disabled remotely. By not having to ship a new box operators can benefit from savings of up to 30% according to NEC’s global study. A simpler, inexpensive gateway can be provided to support even advanced services for new customers.

Virtualized IP edge functions are hosted on general purpose servers, which can be dynamically up-scaled and hibernated in line with demand to minimise power usage and equipment costs. In addition, a single datacenter could be used to support virtualized home entertainment services across multiple countries in the future to provide economies of scale.

Telefónica SA (NYSE: TEF)

NEC Corp. (Tokyo: 6701)

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