Doug --
The article you referenced is correct and what we all have to keep in mind is the small fact that this IP network will be created out of legacy networks and whatever's installed has to scale.
I wanted to quote from Ian Craig's keynote yesterday and went to their website to see if they'd posted his talk.
Not verbatim, but for what it's worth:
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November 4, 1998
Contact:
Joanne Latham
Nortel Networks
919-992-7851
joannel@nortel.com
Nortel Networks Executive Presents Vision for Public Network Transition
WASHINGTON D.C. - Speaking today at the 1998 Next Generation Networks telecom conference held here, Ian Craig, president of Nortel Networks'* [NYSE: NT/TSE: NTL] largest line of business, Carrier Networks, revealed his global vision of the next generation network for telephone companies -- a complete, multi-vendor-compatible, multi-service network solution optimized to carry Internet Protocol (IP), end-to-end services over a variety of architectures.
Craig described this solution as part of Nortel Networks' Unified Networks* vision, an industry shift that will enable data networks to deliver the same kind of reliability, integrity, security and capacity found in voice networks. "Forces such as the Internet, deregulation, globalization and mobility are creating seismic changes for our carrier customers," Craig said. "In the midst of these changes, we're working closely with our customers to position them for the future through this public network transition. As the industry moves from circuit-switched networks to packet networks, Nortel Networks will continue to provide customer-focused, reliable networks that enable both the new entrant and the incumbent to capitalize on their investments and time to market."
The Nortel Networks vision, Craig said, includes enabling people to turn on one of a variety of intelligent information devices at work, home or on the road and be within easy reach of an interactive, multidimensional world of sound, video, text and images. Key to delivering this, he said, is to provide carriers with the most rapid and cost-effective transition to a unified, multi-service network that can handle both packet and circuit technology.
Craig cited that data traffic is growing 10 times faster than voice traffic, and by the turn of the century, networks in North America will typically be 75 percent data and 25 percent voice. "Driven by the dramatic increase in data traffic, carriers are moving from voice switch networks to broadband, multi-service networks," Craig said. He noted several key market requirements driving the next generation network solution, including carriers needing to:
¨ Drive new revenue streams through new IP and other services. This includes services such as virtual private networks (VPN), voice over IP, and new integrated billing for multiple service types.
¨ Increase capacity/bandwidth. Factors such as rapid growth in data traffic in the backbone, and increasing voice revenue opportunities contribute to this need.
¨ Reduce total cost of ownership. Carriers want flexible service provisioning, simplified Operations, Administration, Maintenance and Provisioning (OAM&P), and lower capital requirements and operating costs.
¨ Protect their current investment - no need to redevelop software features already popularized in today's telecommunications network.
In addition to these fundamental requirements, Craig noted that carriers need a solution that can rapidly and cost effectively transition any vendor's network to a multi-service, next generation network. "The term 'open architecture' should not be trivialized," he said. "Carriers worldwide want a solution that can take them into the future with equipment that will work with any vendor's central office."
Nortel Networks works with customers worldwide to design, build, and deliver telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities.
Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1997 revenues of US$15.5 billion and Bay Networks, a wholly owned subsidiary of Nortel Networks, had revenues of US$2.4 billion during its most recent fiscal year. The combined company's workforce totals approximately 80,000 employees worldwide.
* Nortel Networks, the Nortel Globemark, Unified Networks and How the world shares ideas are trademarks of Northern Telecom. >>>> |
