Telecoms urged to ‘virtualize’ networks to keep up with advances in technology

A United Kingdom-based research group released a report Thursday that urges telecommunications carriers around the world to adapt their networks to technological advances like exponential growth in the adoption of smartphones—a move that will require a “transformation” of their networks. In the report, called “Paving the way for full network virtualization,” London-based Informa Telecoms & Media said that "as data traffic grows—sometimes faster than predicted—traditional network practices are no longer viable.” The report calls for the “virtualization” of networks, which it describes as “the implementation of network components in software, thus replacing proprietary equipment with commoditized IT platforms that run virtual machines.” In an interview with The Wire Report, the paper’s author, Dimitris Mavrakis, principal analyst with Informa, compared the building of communications networks with building highways. “You plan either a four, five or six-lane highway,” he said. “You build it and then customers come and they fill this highway. So these highways are being filled, so there’s a lot of traffic jams.” As traffic grows, ongoing physical expansions of the highway need to take place every so often to deal with additional traffic, but at great expense, Mavrakis said. The same is true of networks, he added, and it would be more beneficial and cost-effective for carriers to focus their upgrades in data centres and software as opposed to putting new “heavy” equipment throughout the network. “Traditionally, if you want to create a network for one million users, they used dedicated hardware,” Mavrakis said. “So they went to the dedicated vendors and said they have these demands and then they bought boxes. They bought what we refer to as ‘heavy metal.’ ” He said carriers will soon “have the option of running their network in the data centre, in the clouds. So they don’t need to spend all this money for this very expensive hardware. They can spend it in a data centre, in IT components, in IT platforms that are much cheaper, and then they can build whatever they like in software. They can mix and match. That’s theoretically the promise.” In the meantime, extensive upgrades to networks need to take place, he acknowledged. Mavrakis said most carriers should be aiming to replace all components of their networks that were put in place at a time when traditional voice calls, as opposed to data, were the priority. This process will likely happen over the next 10 years or so, he said. He said the incentive for carriers to undertake such efforts is competition from their traditional rivals, as well as from other firms they haven’t typically competed with, which can offer comparable services. “For example, from OTT players like Viber and WhatsApp ,” he said. “These guys are providing telecommunications services. They’re providing messaging and voice.” Mavrakis said the telecom industry needs network improvements that allow it to roll out new features more quickly. He said where it typically takes a telecom a year and a half to implement a new service, web-based companies can do so in a matter of weeks. “In 18 months, in the web world, we’re talking about generations,” he said. “So carriers need a better way of launching new services and, of course, a better way to manage and deploy their own networks.” Asked whether the network improvements he calls for sets the scene for the adoption of 5G wireless technology—which Huawei Technologies Co. Ltd. hosted panel discussions about in Ottawa this month—Mavrakis said: “Although it’s very likely 5G will use virtualization, no one yet knows what 5G is. The term is still being discussed in academia.” The Informa report said most networks are in the process are being transformed into all Internet-protocol (IP) networks, and that the “first stage of this evolution” in the wireless sector was the implementation of LTE networks. A problematic feature of LTE networks, it says, is that most still use circuit-switching functions for voice and texting features. They should move to packet switching, the report said, which would make them “easier to manage and upgrade.” Mavrakis said these networks already use packet switching for what’s become the bigger demand of transferring data, and “it’s easier to manage one network instead of two.” The Informa researcher said he was unaware of the pace of Canadian carriers in terms of upgrading their networks in the ways suggested by this report. When asked about whether Rogers Communications Inc. has undertaken the kind of modernization initiatives covered in this report, Rogers spokeswoman Jennifer Kett said in an email: “We began work several years ago on executing a multi-year plan to evolve to an open, global, all-IP standard. IP standardizes how video, voice and data services are delivered. We’ve made significant investments to build out our IP infrastructure that will allow us to offer a full range of experiences seamlessly across platforms.” BCE Inc. and Telus Corp. did not respond to questions about their activities in this context at the time of publication. The paper was sponsored by and included information about France-based Altran Group, which provides technology-engineering consulting. Mavrakis said Altran did not have input into the editorial content of the report, though he added that the general message of the paper “addresses their strengths.” — With reporting by Derek Abma at dabma@thewirereport.ca and editing by Anja Karadeglija at akarad@thewirereport.ca

Telecoms urged to ‘virtualize’ networks to keep up with advances in technology

News | 11/21/2013 10:23 pm EST

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