Given their stagnating revenue and the decline in their core service propositions, most incumbent operators are embarking on next-generation network (NGN) transformations. The principal reasons that operators give for this investment are the requirements to cut costs by rationalising core businesses and to re-engineer to better take advantage of the opportunities presented by pervasive IP networking. NGN roll-outs also represent a way for incumbents to reduce their burden of regulation and to transform their asset bases; both these outcomes could have broader implications for the industry.
This report examines the relative merits of the three main approaches to NGN investment: a move to a full NGN core (such as that being carried out by BT), investment in next-generation access (NGA) with a core overlay (like that by Deutsche Telekom), and a full-IP strategy of rolling out NGA and NGN at the same time (like that of KPN). Using a return on investment (ROI) model, the report identifies critical dependencies and assesses the ability of each strategy to attain the desired outcomes of cost saving and revenue enablement, given different market and regulatory environments.
Next-Generation Network Architecture: what and when? answers your key questions:
What are the key dependencies and critical success factors for the different NGN strategies?
What are the potential benefits of these strategies, in terms of cost transformation, and how time-dependent are they?
Is there sufficient demand for centralised services?
What are the regulatory issues associated with NGNs?
How much leverage can incumbents expect to exert on regulatory authorities?
What are the long-term implications of NGNs for the market structure?