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VON Fall 2006: ROI from IMS Remains Unclear, Says Survey

Most Operators Deploying IMS to Reduce Opex

      

The vast majority of operators planning to invest in IMS have no idea whether it promises a return on investment, according to a survey conducted by infrastructure vendor Apertio.


While 38 percent of survey respondents were expecting some kind of return over a two-year period following IMS deployment, the rest had not carried out any ROI calculations whatsoever.

Speaking on the "In Search of IMS Success Stories" panel hosted by Infonetics and Telecommunications Magazine at this week's Fall VON 2006 conference in Boston, Richard Hallet, director of product management with Apertio, said that ROI represented something of a ’grey area’ in Apertio’s research.

Apertio questioned 57 C-level executives late last year on a variety of topics relating to the use of IMS. As many as 77 percent said they were planning to deploy IMS over the next two years, with the strategic priority for most being a reduction in operating costs. The majority, said Hallett, were looking for long-term savings of 10.5 percent.

The survey also revealed that many executives were confused regarding the implementation of IMS. Although most of the respondents expected to roll out IMS over a period of 12-18 months, they were unsure whether some applications could be introduced before a service architecture was fully in place.

"What this shows is that the road to IMS is not yet clear," said Hallet.

Video streaming and FMC (Fixed Mobile Convergence) were rated as the most popular applications in the survey.

That finding is supported by experience to date, according to Nicolas Mercouroff, vice president of fixed-mobile convergence with Alcatel. Speaking on the same panel, Mercouroff said that IMS solutions focused on these applications were already enjoying considerable success in the marketplace.

In the UK, said Mercouroff, incumbnet operator BT has been running a business service called Enterprise FMC for Mobile Workers that allows seamless handover between WiFi and GSM networks, facilitated by IMS technology.

What’s more, he explained, BT is successfully using IMS in the voice-over-broadband consumer market to differentiate itself from innovators like Skype. "Broadband Talk is the largest SIP network in terms of traffic in the world," said Mercouroff.

In the future, Mercouroff expects to see IMS translate into even more popular convergence applications. "It will improve triple play," he said. "You could be watching TV at home and receive a phone call that brings up a caller ID on the screen. You could then decide whether to divert that call to your home phone or your mobile."

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