Xelerated Xpress

Insight on Carrier Ethernet and Beyond

The Healthy Signs of Telecoms Going Mainstream

Another day here at Mobile World Congress, and I have noticed a strong shift in telecommunications  - the hype really is gone in the industry! We are going the same route as power generation and power supply did at the end of the ’90s, and now nobody in the general public knows what is going on in that industry.  That very same thing is now happening to telecoms.  While there is still a lot of good business to be made, there is less hype…  meaning less high-risk business endeavors, but more thought-through and sound business projects will prosper.  It is a healthy sign.

This year, the energy and activity level at Mobile World Congress has been far better compared to the two previous years’ events. A lot of ideas about sharing networks were shown both by service providers and vendors.  Huawei showcased the largest and widest portfolio and made a big impact with their lifetime cost approach. And NEC’s focus on cloud computing was impressive, expanding its concept to all types of customers/users and putting the operators in the central role.

Another thing that struck me about this year’s show is that there are not many Asian people in attendance. In particular, I did not find many of my Chinese industry colleagues.  This week was the Chinese New Year with the spring festival, which is comparable to having an event during the United States’ Thanks giving holiday.  Even still, there were several Asian companies participating and showing their goods, however few visitors from the region.

While previous Mobile World Congress events have been clogged with small startups trying to attract larger companies for M&A activities, this time it was far more companies aiming at building and growing on their own. Another very healthy sign.

by Anders Ericsson on Feb. 18th, 2010

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Closed or Open? Hot From the Floor at MWC

Mobile World Congress is a big, yet strange place. You have to pay to get access to different providers. But the really important players, you can’t access at all. A sign tells you ‘entry by invitation only’. I wonder how long that business approach will prevail?

Apple and Google are still perceived as the villains in the mobile market and both system vendors and operators seem more interested to fight them than to change with the new conditions. The real infrastructure challenge for the long and medium term – mobile backhaul – doesn’t trigger much interest here. There is a lot of buzz around cloud computing and SLAs, but the necessary connection to mobile backhaul is lacking.

After a quick walk around all booths, I found that the Brazil, Russia, India and China (BRIC) countries bring a fresh new perspective on telecommunications. They will soon have better infrastructure in populated areas compared to any country in the western world. Here is where the foundation for new ideas is being built, and here is where I expect a next wave of companies will emerge to take the lead in telecommunications.

And do I need to tell you that the doors to these companies are wide open for access?

by Anders Ericsson on Feb. 16th, 2010

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