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Siemens builds upon Next Generation Networks for Carriers
URL(s): www.siemens.com/networks
Siemens improves the cost-effectiveness of carrier networks - return on
assets for carriers and new technologies for the Next Generation Network
take center stage
By optimizing its portfolio and embarking on a strategic reorientation,
Siemens Information and Communication Networks (IC Networks) is responding
to the need of carriers and service providers for solutions and technologies
designed for an immediate improvement in profitability. Siemens is
concentrating on developing and providing technologies, solutions, and
services for its market-leading end-to-end portfolio for building the Next
Generation Network (NGN). “We enable carriers both to enjoy a quicker return
on assets (ROA) and to establish business that offers long-term
profitability,” says Thomas Ganswindt, President of the IC Networks Group.
An economic analysis, based on the methods and research of the Gartner Group
confirms that carriers using the Siemens solutions can cut their operating
costs by up to two thirds, increase revenues by some 20 percent and markedly
improve the net cash figure.
The study, which employed the methods and research of the Gartner Group to
calculate the benefits of the Siemens NGN solutions (for NextGen Switching
with Surpass and NextGen Access) for various carrier business models, showed
that users could expect faster amortization, improved cash flow and
increased sales:
1) The investment involved in the migration from traditional switching
technology to NextGen Trunking with Surpass can be amortized within two
years.
- A 20 percent increase in sales is possible if Surpass hiQ Softswitches and
Gateways hiG with NextGen applications such as messaging, directory
services, conference services and IP Centrex or Call Control are introduced
into traditional voice networks.
- Cost savings of up to 70 percent can be achieved on the operating
expenditure front if the TDM technology is replaced by NextGen switching
with Surpass.
2) On the broadband access front, the use of innovative NextGen access
solutions (such as VDSL and SHDSL with multimedia applications), achieving
better services for customers, can double cash flows over the next 10 years,
representing an additional 50 percent in relation to today’s figures (Net
Present Value, NPV).
3) Upgrading an existing SDH network for the integration of Ethernet WAN
services can provide a return on investment in as little as three months by
integrating different traffic streams into a single backbone.
Siemens´ aim is to assume a leading position in NGN convergence solutions.
This will keep the strategically vital value creation chain for building the
NGN fully in Siemens’ hands. Base technologies for the NGN will continue to
be provided through in-house research and development (R&D) activities.
Annual expenditure on NGN research and development is currently running at
some
1.2 billion euros. In this fiscal alone, some 260 million euros of this will
go into developing Surpass technology for next generation communication
networks. Over the coming years it will be plowing an additional nine-figure
euro sum in R&D to expand and consolidate its leading position in the area
of Next Generation Optics. In doing this, Siemens is acknowledging the key
importance of optics as a base technology for the NGN.
Furthermore, Siemens IC Networks has been strategically successful in
reorienting its portfolio and gained further strength in crucial areas
through numerous portfolio measures. The Siemens subsidiary Unisphere
Networks Inc., for example, was recently sold to the US company Juniper
Networks, a leading supplier of internet routers. At the same time, Siemens
and Juniper Networks concluded a partnership deal bringing together Siemens’
global presence and customer base and Juniper Networks’ IP product
portfolio. This will create a unique offering of Next Generation voice
solutions with comprehensive IP routing (core and edge) technology. As a
systems integrator with NGN project know-how, Siemens can now offer
telecommunications carriers complete solutions with softswitches, gateways
and IP routers. This underscores Siemens’ goal of assuming a leading
position in the global Next Generation Networks market with its Surpass
product family.
Siemens Information and Communication Networks (IC Networks) is a leading
provider of network technology for enterprises, carriers and service
providers. Its comprehensive portfolio comprises IP-based convergence
solutions for voice and data (HiPath for enterprises, SURPASS for carriers),
a full range of solutions for broadband access (Attane), and optical
transport networks (TransXpress). The Siemens Group thus provides complete
solutions from a single source for the infrastructure of the Next Generation
Network - optimized for a prompt return on investment and to open up new
business opportunities for customers. In fiscal 2001 (year-end 30 September)
IC Networks employed 51,000 people worldwide and posted sales of EUR 12.9
billion.
Further information about ICN is available at:
http://www.siemens.com/networks
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