Are multiservice solutions one-stop enablers?

A single network infrastructure that offers current and future-based IP services is the dream of every service provider. Srikanth R P looks at one possible solution—multiservice solution—offered by vendors like Cisco, for converting this dream into reality

Kelly Ahuja says that a multiservice solution can help service providers add new services, while keeping investments under control

While every telecom service provider wants to be on the cutting edge of technology, few can match vision with investments to enhance their range of offerings. For instance, even though the majority of telecom networks have circuit-based switches and want to upgrade to packet-switched IP-based networks, the huge capital needed for migration puts a service provider in a quandary.

If a service provider does not invest in an IP-based network, it would be at a disadvantage with respect to competition. Some service providers went ahead (while keeping their existing basic networks intact) and created a separate IP network-based solution, to tap the emerging services market. But this was still a handicap as no company could offer services revolving around IP, while fully utilising the power of existing networks.

This is exactly the situation faced by large telecom service providers who invested huge amounts in building their networks, but are handicapped when it comes to offering new services, as new players emerge with advanced networks.

So what is the way ahead for a telecom service provider who has legacy networks in place but still wants to offer new services around IP? And this while also ensuring that the network is ready for future services. The answer could lie in a relatively new solution called multiservice network.

By adding IP capabilities to an existing Layer 2 network, frame relay or ATM network, a multiservice network can open up new possibilities for service providers. For instance, service providers can provide a path to IP directly, over the same Frame Relay or ATM network that not only preserves their existing investments, but also gives them an opportunity to open up new revenue streams by offering value-added IP services.

Service providers can IP-enable an existing network by simply adding multiservice solutions to the network edge of a Layer 2 network infrastructure.

Says Kelly Ahuja, vice president for marketing at Cisco’s carrier systems group, “Service providers want to add newer services while keeping their investments under control. But in the current scenario, most are wary of making new investments because of the uncertainty on the RoI front. This is where a multiservice network infrastructure helps—it not only generates immediate gains, but also makes sure that the network is future-proof, by supporting new services like unified messaging, B2C or B2B commerce.”

“We see huge potential for multiservice solutions in India, as the cellular market is already witnessing a phase of consolidation. In the future, as bandwidth becomes a commodity, the ability of a player to forge ahead of others would lie in offering value-added services around its network. And a multiservice solution offers just that,” adds Ahuja.

Looking at the potential of this technology, Cisco is upbeat about the solution’s prospects in the current market scenario. Cisco’s MGX range of multiservice switches, for instance, has attracted attention from large telecom operators in India who want to implement ATM, Frame Relay, IP and circuit-based services on the same network.

A multiservice solution also changes the way traditional networks operates. For example, organisations created separate networks for different services. But with a multiservice network, every service can be offered under the same network with a unified control. If service providers do use this approach, they would not only be able to support newer emerging services, but also reduce operating costs by a significant number.

Additionally, by utilising a single platform, service providers are not forced to train people on different platforms and can effectively deploy the same manpower to service customers.

Indian telecom players can learn a thing or two from global players like Singapore Telecom, who have moved quickly to tackle competition by adopting new technologies.

Singapore Telecom’s exclusive license to provide basic telecommunication services expired on March 31, 2000. To maintain its leadership position, the company started looking at an integrated services platform, which would help it to continue delivering existing services like Frame Relay, voice, Internet and ADSL, in addition to offering new IP-based services. Having opted for Cisco’s BPX 8600 wide area series of switches, Singapore Telecom today has tremendous flexibility in its offering. In addition to providing features like bandwidth-on-demand, the network can also scale up according to the needs of each service offered by the service provider.

Besides the telecom operators, Cisco is also looking at the ITES/BPO space, which is picking up in a big way in India. With ITES/BPO players looking at scaling up their range of offerings on existing networks, a multiservice solution could be the ideal way forward.

Explains Ahuja, “An ITES company can quickly scale up the number of calls it can handle by effectively using a network based on a multiservice solution. For example, our multiservice switch portfolio is very flexible and can act as an ATM switch, a media gateway or an IP router. A service provider can start with voice services and move on to provide IP services in the future.”

In addition to leveraging a legacy network and making it ready for the future, the solution also gives service providers a single platform for billing every service offered through the network. Currently, the billing process is complex with each service having its own billing system and platform. Adopting a multiservice solution corrects this anomaly by providing a service provider with a single platform.

In conclusion, while multiservice solutions are fairly new, they do offer a service provider a way forward in a market where a competitive edge means survival.