Michel Combes, CEO of Alcatel-Lucent (pictured), called on telecommunications operators to adopt business models that strike the right balance between providing quality-of-experience and generating sustainable profitability for players in the value chain.
In his keynote speech yesterday (23 October 2013) at Futurecom 2013 in Rio de Janeiro, Brazil, Combes cited the rapid growth of broadband in Latin America as an example of how operators of fixed access and mobile networks need to adapt their business models and to drive revenues and deliver the optimum end-user experience.
Combes said: “I believe strongly that our industry must develop a business model that enables operators to both profitably expand the capacity of their networks and deliver the quality of services and experience that users expect.”
He will highlighted how The Shift Plan - Alcatel-Lucent’s restructuring strategy to transform itself into a specialist in IP Networking and Ultra-Broadband Access - is designed to support operators as they adopt IP and cloud-based technologies, and launch next-generation fixed and mobile access services.
“Throughout the world operators and service providers are proactively seeking technologies to help them balance the need for capacity and delivering high quality services with protecting their own balance sheets,” Combes stated.
“The Shift Plan revolves around focusing our innovation around this new reality. By 2015, 85% of our total R&D investment will be represented by IP Networking and Ultra-Broadband Access. This is a strategic decision to become a technology vendor for the marketplace of tomorrow, a market populated by customers who themselves are moving to more efficient and more profitable business models, adopting new technologies like cloud, SDN (software defined networking) and NFV (network functions virtualization) in the process.”
In Latin America, Combes noted, penetration of ultra-broadband access technologies – especially mobile – is outpacing other parts of the world. According to recent figures from the ITU there are almost as many mobile subscriptions as there are people in the world, and growing annually by 20%.
“In Latin America, mobile penetration is at 130% and rising, with fixed broadband penetration close to 60%,” Combes highlighted. “This is good news when you consider how these numbers affect socio-economic development. In Latin America, for example, a 10% increase in broadband penetration can be linked to a 3% increase in GDP, on average, and a 2% boost in productivity overall.”