Nortel Networks has outlined the company's strategy addressing the industry's changing business needs for migration to next generation technologies, and unveiled a new wireless brand to support this strategy.
In an address to wireless industry analysts earlier this week, Pascal Debon, president, Wireless Networks, Nortel Networks, discussed the challenges facing the supplier community.
Debon emphasized that wireless content is not the natural domain of equipment manufacturers, whose focus is better suited to delivering low-cost broadband connectivity with platform-enabled services. Debon also highlighted the industry's current shift from circuit- to packet-based networks, the evolution of code division access, and Nortel Networks strategy for delivering a highly cost-effective network architecture he termed "Wireless Data Networks."
Nortel Networks Wireless Data Networks strategy is based on packetized voice, all-IP (Internet Protocol) networking and more spectrally efficient access technologies. This architecture is designed to reduce the cost of transmitting network traffic by as much as ten-fold, according to Debon.
Nortel Networks continues to build momentum in the global 3G (third generation) marketplace, and estimates its 3G contract share has grown to approximately 19 percent. Nortel Networks has been awarded approximately US$2.8 billion in wireless contracts in 2002.
Debon emphasized that operators must evolve to packetized voice and all-IP networks to reduce networking costs and enable converged, personalized service offerings to offset declining voice revenues. Currently 75 percent of voice and data traffic is circuit switched. By 2005, Nortel Networks estimates that 75 percent of wireless traffic will be packet based.
"Operators have made significant investments in next generation wireless spectrum and technology, and must now squeeze their existing assets for more value and return on investment from data services," Debon said. "The challenge we face today is evolving from a 'voice-utility' industry to a mobile 'service-centric' business that changes the way consumers derive value from wireless. This is the challenge of 3G."
Nortel Networks Wireless Data Networks strategy addresses four key attributes that Debon said every operator - regardless of size, access technology or location served - will need to consider moving forward:
- Packetizing the core network to enable significant cost savings for both voice and data transmission and scalable migration path to 3G
- Spectrally efficient access technology that leverages operator investment
- Platforms that support differentiated services, like Web browsing, location-based services and mobile VPNs (Virtual Private Networks) to the end user
- Carrier-grade, reliable and scalable networks that reduce churn and protect operator investments
Debon also introduced Nortel Networks new wireless brand name, Univity. "Universal connectivity" is the key concept behind Univity, which will provide a unified brand across the company's portfolio of Wireless Data Network access and core technologies.
"Univity provides a comprehensive approach to solving customer-specific business needs with a single focus on deploying the most cost-effective 3G solutions available today," Debon said.