Tuesday, January 29, 2008

Nokia Siemens Coming Together

I was at a Nokia Siemens Networks (NSN) analyst meeting in Munich last week. NSN spend one day discussing its optical transport/Ethernet switching strategies and a second day on its wireline access strategies.

What was most apparent was that NSN appears to have done a good job of integrating its two parts over the last year and has developed a strategic framework that makes sense and is quite consistent with that of Nokia itself. The key tenet of this strategy is that 5 billion people globally will be accessing the Internet by 2015 and that they will generate a 100 fold increase in traffic by that time.

NSN made a couple of interesting points about this:
  • While wireless speeds will increase significantly over that time, so will wireline speeds. Wireline systems will maintain its 100 times performance margin over wireless and will continue to generate 99 percent of the traffic.
  • 70 percent of revenues come from voice. While total customer spending may double based on the use of new data based services, the cost/performance of network elements will have to improve significantly in order that the telecom companies can maintain profitability.
  • Networks will have to become more energy efficient over this time as well. Most network energy consumption is in the access network.

I have gotten behind in posting a number of interesting year end results announcements over the last week. Blogspot would not let me make posts yesterday afternoon. Everything is working now, so I will get back on track.

No comments: