Leveraging the network
These are exciting times for telecommunications companies. In the recent past, service providers were in danger of falling in a commodity trap with their flat rate connectivity products. But most operators are now rolling out their next-generation networks as platforms for new services and applications. Alcatel-Lucent is at the heart of this evolution with their vision on application enablement. Adolfo Hernandez, EVP at Alcatel-Lucent, explains.
How do you see the telecommunications market developing?
In brief, there are three areas in the telecommunications market where money can be made: the handsets, the network, and the servers. The telecommunications sector has transitioned from a model where service providers used to be active in all three areas, to one where they only focus on the network. Other companies, such as Nokia and Apple, are now dominating the handset market and companies like Google and Amazon are competing in the server area.
As a result, the telecommunications service providers will need to earn money from the network. Our view is that they can only do so by opening up the network and enabling it for application development. Indeed, most service providers are creating the platform on which a range of new services will be delivered. Some of these services—or applications—they will develop themselves but others will be created by third-party application developers. Our mission at Alcatel-Lucent is to help service providers build that platform for application enablement. That’s the economic or business model aspect of our vision.
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About Alcatel-Lucent

Alcatel-Lucent is a leader in fixed, mobile and converged broadband networking, IP and optics technologies, applications and services. The company leverages the technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries, Alcatel-Lucent achieved revenues of Euro 15.2 billion in 2009.
www.alcatel-lucent.com
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