With high-speed data services gaining traction in India and operators shifting to LTE networks, new technologies/solutions such as ultra-broadband access, software-defined networking (SDN), network functions virtualisation (NFV) and big data analytics are set to play a key role. Alcatel-Lucent intends to leverage its considerable expertise to tap the emerging opportunities. Srini Sundararajan, president and managing director, South Asia, Alcatel-Lucent, shared his perspective on the technology trends in the telecom industry, the government’s initiatives, and the company’s future plans. Excerpts...

What are the new technology trends in the telecom industry?

The shift from voice telephony to data services and the introduction of 4G mobile communications are the biggest current trends, but there are others too that are growing in importance:

• Ultra-broadband access - In today’s ultra-connected society, everyone expects fast and easy accessibility to everything. They expect a rich, satisfying experience, whether it is watching videos on mobile devices, using cloud-based business applications, or gaining access to healthcare from remote villages. Ultra-broadband access provides exactly what is necessary for succeeding in this dynamic, interconnected world.
• SDN and NFV - These solutions will make network operations more efficient.
• Public, private and hybrid cloud environments - These will give way to dynamic and multi-vendor cloud environments. New technologies will allow cloud service providers across multiple environments to adopt common service level agreements (SLAs) to provide reliable and economical services.
• Security - Security is becoming increasingly critical. Network operators and service providers are constantly enhancing the security of their systems as hackers grow ever more sophisticated in their attacks and attempts to exploit potential vulnerabilities. Technology providers must ensure that these operators and services are ahead of the game, and can predict and prevent their systems being compromised.
• Big data - There is an enormous impact of big data on the telecom sector, and it has made operators more aggressive with their subscriber data management strategies, including expanding beyond the network to incorporate data sources such as operations support systems (OSS), billing and customer care. Enterprises have realised the importance of informed decisions and, therefore, big data analytics will make inroads into several enterprises and telecom will be one of the biggest consumers of big data.

What level of investments do you expect in the SDN/NFV domain in India? How has the global demand been for these solutions?

We see an exponential increase in the uptake of these technologies as we progress with the adoption of newer technologies, including long term evolution (LTE). As mobile operators evolve their networks to LTE technology, they see the opportunity to deliver exciting new services, such as voice over LTE, web real-time communications and machine-to-machine services to meet the needs of new and existing markets. However, the current speed-to-market can act as a barrier given that new services often take around 18 months to implement within a network.

NFV promises to help mobile operators become more efficient, flexible and responsive to demands, to innovate, scale and deliver services more quickly.

Similarly, the SDN solution allows virtualised functions to flexibly and efficiently leverage cloud resources by making the network more programmable and responsive. The excitement around SDN is being fuelled in large part by the shortcomings of existing legacy networks, as well as pent-up demand for greater innovation in the network. Today’s legacy networks are too complex to run cost-efficiently, too closed to foster innovation and too brittle to respond to the needs of the business. Equally important, legacy networks remain blind to the dynamic needs of the applications that run on top of them. SDN adoption is expected to take place in data centre networks and wide area VPN services using SD-VPNs over the next few years.

What are some of the solutions being deployed by operators to address the capacity and coverage issue?

The continued increase in penetration of smart personal devices, combined with the expansion of data networks for enterprises and large institutions, and the growth of ultra-broadband services for wireless and fixed access is transforming the entire dynamics of the Indian telecom industry and the human experience. At the heart of this change is the network, the infrastructure that keeps everyone connected. As usage of connected devices – whether they are phones, wearable electronics, fitness gadgets and even connected cars – grows and businesses and institutions like banks and governments continue to generate huge amounts of data, the network as it is today will find it difficult to cope. Simply put, there is a potential traffic jam approaching. A change is needed in the way we build networks and create the regulatory framework through which we can invest in them.

Operators are aware of this issue and are reinventing their networks to make them strongly linked to market dynamics and customer needs. The solutions being introduced include a transition to an all-IP network, agile optical networking, seamless connectivity to the cloud at all times, NFV, SDN, and, on the wireless side, small cells and Wi-Fi offloading.

They are looking to develop high-performance networks with lower costs per bit, which are personalised and focused on a user as an individual or user as a business, and are highly responsive, thereby allowing near-on instantaneous connectivity to everything.

What is your view on the Make in India initiative of the government? Are there any issues pertaining to manufacturing in India that remain unaddressed?

We are supportive of the new initiatives launched by the government. Alcatel-Lucent is fully aware and convinced about the potential India has in terms of talent and skilled workforce in the information and communications technology sphere. The company has invested heavily in India since 1982. Its development centres in Bengaluru, Chennai and Gurgaon, spread over 400,000 square feet, are major hubs for research and development. These development centres have over 2,000 highly skilled employees working on cutting-edge innovation in terms of products developed for India and other emerging markets, as well as global markets. We were also the pioneers in partnering with state-owned ITI Limited, over 25 years ago, as well as of promoting the manufacturing of digital switching and wireless applications.

The Indian centre undertakes the complete product development of various products in our four business lines - IP routing and transport, IP platforms, fixed networks and wireless. Some examples in this category are software for service routers, FTTx, GPON, small cells, network management, device management and OSS/business support systems. In addition to product development, India has been the location of key innovations for the company, with the development centre here filing more than 200 global patents.

Aside from providing direct employment to skilled workforce, we have significant partnerships with India-based software houses like HCL, Wipro and Aricent, thereby providing indirect employment to thousands of skilled personnel as well.

What will be the impact of the merger between Nokia and Alcatel-Lucent on the Indian operations? How are the two companies expected to operate in the country going forward?

It is too early to comment on what the proposed merger means for India but, as we announced on April 15, both Alcatel-Lucent and Nokia believe that this is the right combination at the right time, and will create a global leader in innovation.

Which are some of the recent contracts awarded to Alcatel-Lucent in India?

We are actively working with most operators to effect a transformation, both in terms of brownfield expansions and upgrades and greenfield roll-outs. Alcatel-Lucent has been deeply engaged with arguably the largest private sector broadband roll-out in the country and has been instrumental in laying the backbone of this network. We have also been successful in our engagements in the cable/multi system operator (MSO) segment by leveraging their existing copper and fibre assets to provide high speed broadband access to their residential and enterprise customers.

What are Alcatel-Lucent’s future plans for the Indian market?

Our strategy for India pivots on the key tenets of Alcatel-Lucent’s Shift Plan and its ambition of transforming the company into a specialist in IP, cloud and ultra-broadband access, and leveraging our innovation capabilities in these domains. While we continue to target the network demands of our carrier customers, our growth focus is twofold: first, to drive diversification outside of service providers in the government, defence, energy and transportation domains, in addition to the cable and MSO segment; and second, to actively develop a robust framework using strategic partners, alliances and distribution channel partnerships to serve areas beyond the service provider market.