Category: Total Cost of Ownership

Arrows converging on target

Convergence in the New Service Edge, Part 2

We started our series, Convergence in the New Service Edge, with a discussion on how 4G and 5G will have to coexist in the same transport network. Convergence goes beyond wireless. Many operators offer both fixed and mobile services. However, wireline and wireless access services have typically been served by completely different aggregation and core

Arrows converging on target

Convergence in the New Service Edge: Part 1

Convergence, the integration of wireline and wireless technologies into a single network infrastructure, gets a lot of attention for good reason. Operators need to reduce costs to maintain profitability in the face of increasing traffic and declining price per bit. There are significant economies of scale in both CapEx and OpEx by consolidating onto a

Cell tower with clouds

The Forecast is for Increasing Clouds

The cloud is getting its due in recent 5G news.  In our most recent post, we talked about the announcements of partnerships between the Big 3 in cloud and their spate of partnerships with mobile network operators (MNOs).  This brings the cloud platforms right into the mix for edge computing which is a major enabler

Disaggregating the Appliance Model

In carrier networks, the appliance model is giving way to a disaggregated model. Traditionally, functions like routing were implemented in a tightly coupled hardware and software bundle. Routing vendors could ensure the proper operation of their system because they controlled the entire network element. They even developed their own switching ASICs for their line cards.

TCO: Service Velocity and Agility

In our recent blog posts, we have looked at different aspects of Total Cost of Ownership (TCO). CapEx spending gets the headlines and for good reason. Flattening revenues driven by lower revenue per bit coupled with explosive growth in bandwidth demands have made it difficult for carriers to achieve the industry’s standard goal of 15%–20%

TCO: Capital Intensity

In our last post, we discussed how service provider revenues are massive but have settled into a low growth rate of around 1 % per year. How does this affect CapEx? Network operators can drive new sources of revenue because they invest in their networks. Service provider CapEx is a source of intense interest because

The State of Carrier Revenues

By any measure, the telecommunications industry is huge. According to GSMA Intelligence, total mobile revenues reached $1.05 trillion in 2017 and will break $1.1 trillion in 2020.  That summarizes the problem; while the absolute numbers are big the growth rate is small.  In fact, the growth rate for mobile revenues is forecast to drop to

TCO in the New Service Edge

Total Cost of Ownership (TCO) is a familiar concept – it recognizes that the acquisition cost is only part of the cost story.  Think about a car.  You have the purchase price (or the lease).  In addition, there are the costs incurred over the life of the vehicle such as fuel, maintenance, insurance and licensing.