|
Carrier Services
C5: Italtel CEO Eyes Mobile NGN Opportunities
Outlines Ambitious Expansion Plans
by Ken Wieland
Italtel, an Italy-based vendor, has built up its business by supplying fixed-line operators and large enterprises with NGN networks and services. That strategy is now changing in line with market developments.
“Most mobile operators are now looking at how to incorporate the fixed-line business to counter the position of incumbents who are offering fixed-mobile services,” says Mauro Righetti, CEO of Italtel. “We have a portfolio that can help them do that.”
Mobile operators, says Righetti, also need NGN architectures to better meet the demands of the business customer. “One of the biggest drivers for NGN adoption by operators – both fixed and mobile – is the move by enterprises towards VoIP. They [the enterprise customer] don’t want to invest in legacy infrastructure and services.”
Italtel’s NGN proposition to mobile operators is threefold. The first is its Class 4 softswitch, developed in-house, which facilitates IP traffic transit in the core of the network. Arguably, they have a good pedigree. Telecom Italia already uses them to carry all of its voice traffic in the core of its domestic national network.
The second part of Italtel’s mobile proposition is voice solutions for both the business and residential customer. These include IN-BVS (Integrated Networked Business Voice
Solution), a service Italtel jointly developed with Cisco (see Cisco and Italtel Extend Partnership).
Thirdly, Italtel is looking to develop and market-test new fixed-mobile services over an IMS-based NGN architecture. Righetti did not elaborate on what these might be but stressed they would be ‘based on open standards and delivered in an open environment’.
Righetti says that Italtel has already struck NGN deals with two mobile operators – Telecom Italia’s mobile operation in Brazil and Vodafone Italia.
While not divulging other mobile operators that Italtel is in discussion with, candidates include the likes of T-Mobile and Orange who are looking to extend their service portfolio in countries where they are competing against the incumbent.
One potential weakness of Italtel’s mobile strategy, as Righetti concedes, is that it isn’t a big name in the mobile space. One way round that might be to align itself with others who have already built up strong relationships with mobile operators. “We’re very open to partnerships,” says Italtel’s CEO. “We could do them on a case-by-case or market-by-market basis if need be.”
Aside from its partnership with Cisco, Italtel’s other alliances include Accenture, a systems integrator. “We’re also developing a relationship with Microsoft in service-specific application areas,” adds Righetti.
If Righetti can strike up a number of NGN deals with mobile operators, it should help Italtel become less reliant on Telecom Italia. At the moment, Telecom Italia accounts for around 50 percent of Italtel’s revenue, although it was 75 percent three years ago. “Within two to three years, we would ideally like to have Telecom Italia account for no more than a third of our revenue,” says Righetti.
Since starting its expansion into the EMEA region at the beginning of this decade, Italtel has managed to chalk up a number of contracts with fixed-line operators outside Italy.
These include France Telecom, Neuf Cegetel, Arcor (Germany), Cable & Wireless and Belgacom.
Italtel is still privately-owned. Righetti wouldn’t say if an Italtel IPO was in the pipeline or whether there have been any takeover approaches. “My priority is to grow the business,” he says, although he would not reveal what the growth targets are.
More Information:
Cisco and Italtel Extend Partnership
Unveils Managed Enterprise Voice Solution
Swisscom Offers €3.7 Billion (US$4.8 Billion) For Fastweb
Takeover To Boost Revenue By 20 Percent, Says CEO
Can C&W re-invent itself?
The UK division of Cable & Wireless is one year into an ambitious recovery program.
Bridge-building to NGN
Through a strategic approach to NGN migration, fixed-line operators can maximize their competitive position.
|
