NGN fuels regional expansion

09 Oct 2006

Telco Systems, a provider of carrier-class transport and access solutions for IP and NGN networks, believes customers in Asia migrating to IP networks will be a key driver of growth for the company over the next two years.

Leigh Wilson, Telco Systems' VP for Asia and Japan, said IP NGN deployment in Asia is beginning to gather pace. 'The main profit centers for carriers are still legacy based services based on SLA guarantees (that IP still cannot ensure). We have built solutions around the interim migration to full IP, and believe using cheap IP networks carrying legacy services with service level agreements will become the standard, rather than today's technology POS packet over SONET or SDH.'

He said the time is nearing when MSC and IP service providers can offer profitable TDM/ATM services over inexpensive IP networks with better management and the same SLAs sought by enterprise customers.

Wilson believes customers already understand that the value of today's network lie in the emulation of services and many have invested heavily in leased circuits of E1/T1s and ATM, but over a lower opex/capex IP network.

'Our technology allows backhaul of cell tower traffic emulated over any kind of IP transport, including WiMax HFC cable or the operators' IP fiber network,' Wilson explained.

The company, a subsidiary of Israel-based BATM Advanced Communications, recently selected Singapore as the headquarters for its Asia-Pacific operations, adding to existing offices in Thailand and Japan. To capitalize on the opportunities in this region, Wilson said Telco Systems is investing $10 million to grow its sales, marketing and technical operations. It will also increase the number of offices in the Asia Pacific over the next 18 months.

He said that the company will expand further in Asia with another office in either Hong Kong or Taiwan by Q1 next year to support North Asia, and move into Australia by the 2Q 2007. Another ten staff, mainly in engineering support, will be added to the current regional headcount of 11 by next year.

Meanwhile, Dr. Zvi Marom, CEO of BATM Advanced Communications, Telco Systems' parent company, said competition will come from Cisco and Huawei in the region through OEM partners such as Alcatel and Nokia, especially in the high-end segment, where companies need 'uninterrupted voice, video and data communications in an IP network, and where the QoS are as robust as their previous legacy networks.'

'Many of the traditional networks in Asia are only designed for voice, and operators need to go into video and triple-play services. Legacy networks have to change over the next few years,' he said.

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