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Fast forward your DSL delivery, with Alcatel

By Carl Rijsbrack, Director Data Solutions, Fixed Network Division, Alcatel

Without a doubt, broadband access offers great potential for additional value-added revenues for today’s service provider. End customers are clamoring for enhanced content, real-time interactivity, faster downloads and flashier multimedia experiences. Service providers who offer those services are winning customers and gaining market share, the first step to establishing the revenue base for your growing broadband service business.

Alcatel has the right suite of products and solutions to help service providers deliver new, exciting, revenue-generating services that will give their customers compelling and sustainable reasons to pay for broadband access. With our industry leading management solutions, service providers can manage and provision these new services quickly, while simultaneously lowering operational expenses and time to market.

The key lies in understanding the market, and in getting your products and services out to that market in a fast, efficient, cost-effective manner. That’s where Alcatel and our Fast Forward program comes in.

Understanding the Market
Since its inception, the broadband market has seen constant growth, and there’s no end in sight. According to a DSL statistics briefing from DSL Forum and research firm Point Topic, the world installed base of DSL lines almost doubled in 2002, from 18.8 million to 35.9 million. At the end of 2002, two million DSL lines per month were being delivered industry-wide.

By the end of 2003, more than 50 million people will use DSL for broadband access (RHK Report, Dec. 2002). Although this technology has been around for a while, the revenue opportunities for service providers continue to grow.

The Benefits of Broadband
Some economists believe that significant economic benefits will be reaped from the proliferation of broadband access technology. However, the benefits are not limited to economics. Broadband can also result in an improved quality of life in many areas. Although this is not an exhaustive list, some of the specific socio-economic benefits include:

  • Job creation and retention
  • Increased and diversified economic activity
  • Reduced traffic congestion and automotive pollution through increased telecommuting (Macklin, “The Benefits of Broadband,” eMarketer, May 2002).
  • improved education systems
  • more productive research and development
  • increased start-up and entrepreneurial activities
  • urban core revitalization
  • improved government efficiencies and service delivery
  • improved connections between citizens and their government
  • improved access to health, education, communications, e-commerce, banking, culture and information services
  • increased levels of community services available
  • educated and skilled society through enhanced learning opportunities for all
  • improved availability and access to national content, services and applications which strengthen and preserve national identity
  • improved integration of, and access to, services within and among communities; allowing them to develop and prosper
  • mitigated rural-urban divide.
In other words, broadband access is about more than just fast web surfing. Alcatel firmly believes that broadband holds the power to provide great benefits for society as a whole.

Broadband Market Opportunity
The first wave of DSL, residential high speed Internet (HSI) access, continues to be the largest DSL revenue generator. For service providers in this segment looking to grow and sustain that revenue, the main focus now is developing profitable service bundles and optimizing their networks for operational excellence.

The second DSL wave was business access. Recent market surveys indicate that 50 percent of business users want to increase their connection capacity and are also interested in value-added services. Although the five-year net value of a business subscriber is in the range of 1,000 Euros, the value can jump to 10,000 Euros if services such as security and web hosting are included in the service package. For providers, this represents an opportunity to further capitalize on their initial investment.

DSL’s third wave, broadband entertainment services, enables service providers to increase both the number of subscribers and the average revenue per user (ARPU) (see Figure 1). It is vital to start introducing multimedia services to both the residential and business segments because mass market deployment of DSL gives service providers the opportunity to negotiate reasonable prices for the content.

Figure 1. Potential DSL Markets

Leading with Strength: Alcatel’s Market Position
Alcatel is the undisputed leader in DSL. Alcatel has held the leadership position in broadband access since 1997. With more than 25 million DSL lines shipped, we dominate with 37.7 percent of the market share — more than quadruple that of any other vendor.

Alcatel dominates the DSL market because our market-leading access portfolio has features that empower operators to deploy broadband services with extremely quick payback. Most significantly, Alcatel is first to deliver standards-compliant customer premises equipment (CPE) auto-configuration — a vital feature that enables the service provider to quickly and dynamically configure the central office (CO) and CPE. As a result, many costly manual field operations tasks are eliminated.

We provide a fixed wireless broadband access solution because, from the under-developed world to the core of our cities, we realize that fixed wireless broadband is the fastest alternative way to bring the power of broadband to the people.

To ensure our customers are ready for future of access, we offer a fiber to the user (FTTU) solution that will feed the growing appetite for more and more bandwidth. The Alcatel FTTU solution delivers high quality voice, interactive video supporting hundreds of analog and digital channels, and Internet access at speeds up to 3,000 times faster than traditional dial-up modem schemes.

Our DLC technology is ideally suited to bring a mix of narrowband and broadband services as close to the customer as possible — because not everyone is ready for a broadband world, yet.

And with a system able to manage 1,500,000 connections and subscribers and up to 510,000 nodes in a single domain, Alcatel is the clear industry leader in broadband network management.

Alcatel: Your DSL Partner
Although DSL offers many revenue opportunities, the time required for service providers to realize a return on investment (ROI) can be long: three to four years for HSI access. Faster ROI is possible by fine-tuning operations and continuing to develop service packages targeted at the residential and business and markets.

Alcatel can help. We have developed a consultative marketing program called Fast Forward, designed to help operators who want to move into DSL or who are already there but ready to ride the next wave.

The main objective of Fast Forward is to share best practices of DSL deployment and to help Alcatel customers to achieve faster and greater profitability in their DSL business. Since its launch, Fast Forward has completed 27 consulting projects.

Selling Solutions
Alcatel offers its customers more than just boxes. Alcatel is committed to providing our customers with solutions that can help them generate more revenue from their existing DSL infrastructure. Some of the broadband solutions currently available from Alcatel include:

  • Teleworking: Considered to be one of the killer applications for broadband access deployment in the coming years, service providers can leverage their existing DSL installed base to simulate the office environment at home.
  • Business Access: Service providers need a single platform to offer new, revenue-generating broadband services to the under-served small to medium sized enterprise (SME) and small office and home office (SOHO) markets. These services include business Internet access, multiple voice lines using voice over DSL (VoDSL), multisite connectivity and web hosting.
  • Broadband Management: Alcatel's broadband management solutions significantly lower the total cost of network operations (OPEX) by managing multiple access technologies — DSL, DLC, and FTTU — under one umbrella.
  • Multiservice Access: Offer both narrowband TDM and broadband (DSL, ATM, and IP-based) services from a single access node in the local loop.
  • Voice over DSL: The perfect technology for SMEs and SOHOs because it allows transport of multiple voice channels, plus data, over a single copper line.
  • Fiber to the User: Allow operators to extend the core optical network all the way to the user, eliminating the bandwidth bottleneck in the last mile. Fiber is the ultimate solution for applications where the copper-based Litespan and ASAM products do not fit.
  • PWLAN: Leverage existing xDSL networks for the cost-effective backhauling of traffic generated by "hotspots" — locations that offer wireless Internet access for those with wireless LAN capable devices.

Alcatel’s customers look to us for broadband access solutions that optimize their service offerings and revenue streams using their existing networks. We help them recognize trends in the broadband world, understand the opportunities, and ensure that their existing networks are capable of delivering new broadband services.

Alcatel offers its customers more than just boxes. We offer complete solutions packages from a single vendor. Alcatel's access solution integrates a network from end-to-end-to-end: from the core to the edge to the customer, making Alcatel the #1 network integrator worldwide. Our high performance products and comprehensive solution offerings strongly position us to continue our market dominance.

If you are interested in engaging with Alcatel in a joint team, to increase your success in the DSL market, please contact fast.forward@alcatel.com

For more information on Alcatel’s broadband story, visit: www.alcatel.com/broadband

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