Operators: Cloud & Virtualization Are Biggest Opportunities, But Immediate Focus is on Monetization & Traffic Optimization

  Operators: Cloud & Virtualization Are Biggest Opportunities, But Immediate
  Focus is on Monetization & Traffic Optimization

 Cloud technology will be the industry’s biggest disruptor over the next five
 years; Operators are currently focusing on service monetization and network
        traffic optimization, finds global operator survey by Radisys

Mobile World Congress 2013

Business Wire

HILLSBORO, Ore. -- February 25, 2013

Cloud technology and network virtualization will be the biggest disruptors,
and paramount investment priorities, in the telecoms sector over the next five
years. But technology immaturity is delaying telecom cloud deployment
decisions. In the meantime, carrier investment is directed toward network
traffic optimization and service monetization to deal with the pressing issues
of increasing mobile data traffic and cannibalization of operator service
revenues. These were the key findings of a global operator survey commissioned
by Radisys^® Corporation (NASDAQ: RSYS) and undertaken by wireless analysts
Senza Fili Consulting prior to Mobile World Congress 2013.

Also anticipated to be the hottest topic at this year’s MWC, cloud technology
and network function virtualization are solutions that every operator
respondent in the survey said they were committed to rolling out, with 60
percent looking to deploy cloud technology in the next 12 months, and all
respondents within four years. Despite this high level of commitment, and
surety that cloud technology will bring benefits from flexibility and capex
savings, uncertainty remains over which “type” of cloud technology is the most
appropriate (public, private, hybrid etc. for central office). More than 75
percent of respondents cited lack of solution maturity in delaying deployment
decisions, and nearly a third of respondents said they are still evaluating
options.

“The results of our operator survey clearly demonstrate that mobile operators
overwhelmingly see the value in cloud technology and the economies of scale
that can be achieved through network function virtualization,” said Manish
Singh, CTO of Radisys. “However, not all network functions are equally suited
for virtualization and workload consolidation. There is still confusion from
operators on how best to deliver their cloud vision and how mature the
technology is. This is why carriers are taking time to weigh up their
options.”

Despite the uncertainty, more than half of those that have decided on an
actual deployment solution have all opted to use virtualized ATCA platforms to
deliver their cloud technology vision. An ATCA platform allays all fears over
cloud technology maturity as it is already standardized to carrier grade
levels. Not only can it deliver all the standard requirements for a telecom
network but an ATCA platform also enables an operator to rapidly increase the
time in which they can virtualize their network functions and lower the
investment risks of transitioning to a cloud technology based architecture.

Singh continued, “The industry should embrace the principles of cloud
technology, but must ensure that the telecom cloud caters for the demands of
the telecom network itself. A public cloud cannot stand up to these high
requirements from a central office point of view. The clear choice to
facilitate this is a private telecom cloud, in which network functions – both
hardware and software – are virtualized. For those operators bold enough to
have made their choice, an ATCA platform has become the early leading choice
for cloud technology delivery. This is due to the fact that ATCA ensures
operators can realize cloud technology for their central office – but need
make no compromises on strategic telecom infrastructure requirements.”

The survey also asked operator respondents about the types of services and
functions that they expect to deploy and that they see as significant in the
next five years. VoLTE was cited as one of the main applications best suited
to cloud technology and network virtualization, with 71 percent of operators
identifying its significance. This response highlights the important role
VoLTE will play in driving the requirement for new cloud technology
architectures. The survey also found that operators see RCS as a strategic
winning weapon against OTTs. Within the 3GPP standards for IMS is a defined
role for the Media Resource Function (MRF) that provides the media processing
for real-time voice communication services such as VoLTE. Already a leader in
MRF products and technologies, including the supply of MRF into the world’s
first VoLTE deployment at MetroPCS, Radisys is seeing immense opportunities
for mobile operators.

Radisys T-Series ATCA platforms

As the market becomes saturated with new smart devices that are driving the
data deluge and demand for more bandwidth, network operators and Telecom
Equipment Manufacturers (TEMs) are challenged to increase profitability while
driving improved customer experience and optimize bandwidth while monetizing
the network.  Radisys developed its T-Series ATCA Platforms to addresses
operators’ struggle to increase service profitability by delivering a 50
percent cost-per-bit reduction over existing systems. The pre-integrated
platform helps TEMs deliver the highest performance solutions for tomorrow’s
network infrastructure needs while increasing their velocity to market.

T-Series platforms are telecom-grade systems, built to NEBS specifications,
and pre-integrated with the largest selection of ATCA blades. They are built
on cutting-edge processors and software to provide a robust, high-performance
solution that provides both cost effective elasticity and the carrier class
requirements needed for telecom-grade applications. As such, Radisys ATCA
platforms represent the foundational building blocks for telecom cloud service
deployment.

Radisys Media Resource Function (MRF)

VoLTE is based on an IMS architecture, with IP media processing delivered by
the MRF. VoLTE is provided, alongside data and video, through a single
IP-based converged packet core, driving CAPEX and OPEX savings, while freeing
up 3G spectrum for future 4G growth. However, offering VoLTE is more than
simple point-to-point calling. VoLTE requires transcoding capabilities between
the AMR-WB codec used in VoLTE and legacy codecs. It includes supporting audio
VAS services in an IP environment, including audio ring-back tones,
conferencing, advertising and IVR services. Radisys’ MRF is designed to
support all these IMS requirements for VoLTE services, with extra
differentiators such as Voice Quality Enhancement (VQE) feature set,
delivering echo cancellation, noise reduction and packet loss concealment
specifically designed for mobile VoIP services.

To download a copy of the Operator Survey findings, please visit:
www.radisys.com/2ndAnnualOperatorSurvey.

About Radisys

Radisys (NASDAQ: RSYS) is a market leader enabling wireless infrastructure
solutions for telecom, aerospace and defense applications. Radisys'
market-leading ATCA, MRF (Media Resource Function) and COM Express platforms
coupled with world-renowned Trillium software, services and market expertise
enable customers to bring high-value products and services to market faster
with lower investment and risk. Radisys solutions are used in a wide variety
of 3G & 4G / LTE mobile network applications including: Radio Access Networks
(RAN) solutions from femtocells to picocells and macrocells, wireless core
network applications, Deep Packet Inspection (DPI) and policy management;
conferencing and media services including voice, video and data, as well as
customized mobile network applications that support the aerospace and defense
markets.

 Radisys^® is a registered trademark of Radisys. All other trademarks are the
                     property of their respective owners.

Contact:

Radisys
Lyn Pangares, 503-615-1220
Lyn.pangares@radisys.com
 
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