Telecom industry?s landscape is changing at a rapid pace. Telecom operators and IT providers are merging together with virtualisation accelerating this trend. There are key differences between both industries: Telecom is a closed shop with end to end ownerships whereas IT has a very diverse ecosystem with plenty of players operating in a fast paced innovation space. For example, it takes six to seven months for an operator to introduce new services compared to Amazon which launches a new service every 11 seconds. It is in this backdrop that Nokia Networks is striving to disrupt the telecom market and be the front runner to drive telecom and IT together.
In an interview with tele.net, CB Velayuthan, Vice President, Global Partner Business, Nokia Networks, talks about how Nokia Networks with expertise in telco cloud is pioneering the convergence of telecom and IT for a connected world ? thus driving the creation of a new ecosystem.
Edited excerpts?
What are the key trends dominating Indian telecom industry?
Globally, mobile world space is going through a revolution. The early decades starting from 1960s through 2000 were all about establishing voice networks. The focus was clearly on connecting people through wireless. However, mid 2000 onwards, data has become the center point of the mobile revolution. Today, data has become so important that it is a huge part of the whole network and as a result voice is taking a backseat. This shift from voice to data has been witnessed across telecom markets including Europe, North America and in parts of Asia. And India is not far behind. For the county, the last decade has been all about connecting people. There is scope for further expanding the coverage in few areas particularly rural. However, at this point of time, data is growing at an exponential rate. In terms of technology adoption, we will see India come at par with the rest of the world within a couple of years.
When the rest of the world was pursuing 4G, India was still strengthening its 2G GSM network. But, today the scenario appears to have changed completely. As is the case with the rest of the world, Indians too are using data access applications and platforms such as Facebook, WhatsApp and Twitter. The whole boundary between new use cases and applications which could be used in the rest of the markets and India is being broken down. Now it is only the question of whether networks can enable access to these applications at the same speed as the rest of the world or not. And it is here that the underlying technology usage comes into play. Earlier, it was 2G, 3G and going forward it is going to be 4G.
3G uptake in India has seen a mixed response. What are your expectations from 4G?
So far, one of the key reasons for slower than expected adoption of 3G in the country has been the lack of adequate spectrum availability. Even though 3G data usage in India is not comparable with the rest of the world, the fact is that the uptake of 3G is doubling every six months in terms of data usage.
With the availability of additional spectrum, there will be more data carrying capacity on the network and as a result larger number of people will join the network. The moment industry gets more capacity on its networks; it will open floodgates for higher 3G data usage and 3G enabled applications and services. Nokia as well as operators are optimistic about the growth of 3G in the country and this optimism is reflected by operators putting in money for acquiring additional spectrum in the recently held spectrum auctions.
As of now, the industry is still in the process of expanding its 3G network. With users becoming more familiar with 3G and operators being able to access more capacity on 3G networks, players will be able to offer higher speeds through 3G. But as more and more people get on to data networks, the industry will turn toward 4G. We expect 4G network rollouts to gain momentum by early next year.
How does Nokia see new technologies blurring the divide between telecom and IT industry?
The convergence between the two fields has been happening for quite some time. Traditionally, IT has always been on the cloud platform. In cloud one does not have hardware at every place. For example, usershave access to email anywhere from any laptop, the data is stored in the server which is generally located at a far away or remote place. Data is not physically close to the user i.e. not in the same premises rather it is managed by establishing connectivity through networks. In comparison, telecom for long has been all about hardware and software being together and accessible at the same place. For example, in case of telecom networks the base station and the core of the network are placed close by.
Going forward, telecom too is focusing more on software and application. And because of this, telecom too will move into cloud, which would mean further convergence between telecom and IT as both the industries will use the same hardware.
Over the last five years, at Nokia we have pioneered the usage of regular hardware for core network elements. For instance, the company is already using blade servers by vendors such as HP and IBM in its switches. Earlier, these (switches) were made primarily from hardware and software. However, now it is easier for Nokia to put it in a central place and drive telco network. Going forward, the industry will see convergence between telecom and IT happening at a faster pace with networks becoming more software based and with the transportcapability and the ability to manage network from remote location coming into play.
Moreover, Nokia believes that this convergence between telecom and IT cannot be achieved by companies individually. Traditional telecom companies which are into vendor space cannot provide the kind of solutions that are required by the industry today. And it is here that companies like Nokia which come in to telecom space bring in a lot more value additions for the customers as regards to their IT requirements. With an aim to leverage opportunities offered by growing convergence between telecom and IT industries, Nokia launched a partnership programme two years back. The objective of the initiative is to partner and collaborate with different vendors. The company strongly believes that closed networks can no longer be sustainable. The interface or platform on which the networks are built should enable users to connect with different companies and solutions. Nokia is emphasising that vendor specific, closed and protective networks are not going to be the future of mobile industry. Such networks could probably be good for particular companies as with closed platforms the client will not be able to work with other vendors. However, cutting across competition, we are calling for further collaboration between vendors to offer best solutions to customers.
What has been industry?s response to Nokia?s partnering programme?
The response for us globally has been very encouraging. Operators, analysts, customers and partners have appreciated Nokia?s efforts for promoting an open system/platform which holds value for everyone. A vendor agnostic platform opens up a whole new world of innovations, solutions, faster network deployment and low cost network-solution implementation.
Like other global markets, in India too, the initiative has got operators excited as they see Nokia as a strong market leader and recognize the programme as another effort from company to be more meaningful to them. With networks becoming more complex, we partner with different vendors and test our solutions in stimulating environment. This helps us minimize challenges related to network deployment and management for operators as well as other clients.
How important is India as a market for Nokia?
India is a critical market for Nokia. In terms of numbers, the company has highest number of people working in India, largest research and development base etc. For the last two decades, the country has been driving Nokia?s growth as the company has leading operators as its clients.
What are the growth opportunities for Nokia in India?
There will be immense growth opportunities for the companies in the country over the next few years. Having acquired additional spectrum, operators will be looking at augmenting their existing networks and building up 4G networks. So, Nokia will be offering its services to these operators. Moreover, the company has partnered with other vendors such as Cisco and Juniper. From partnering perspective, the company is capable of offering solutions in domains such as IP. Another area of growth for Nokia is microwave backhaul. With the demand for higher capacity on networks, operators will make significant investments in this area. We on our part have tied-up with industry leaders? like Dragonwave and NSE to provide relevant products to our customers. Going forward, with expansion of networks, there will be a higher demand for antennas; we are geared up to tap into these opportunities.
How do you see Nokia contributing to the country?s Digital India vision and smart cities project?
Digital India initiative reflects that the country is on par with the rest of the world when it comes to envisaging and implementing world class infrastructure and cities. Smart cities are not only about providing wireless connectivity to people rather they provide huge scope for using technology to connect people and utilities in a more meaningful way. Our managed services portfolio holds the potential to provide critical services in smart cities.
Nokia is in consultation with the government as well as the operators to find out ways in which it can play a greater role in building smart cities.
What are the challenges facing the company and way forward for Nokia in India?
India has been a great market where Nokia has grown. Nokia does not see India as a challenge rather it is a market which offers immense business and growth opportunities to Nokia. We are excited about new networks rollout and growth of data in the country. The country is going to witness significant investment over the next three years. It is an exciting time to be in India and Nokia is looking forward to leverage its product portfolio along with its partners to offer innovative technology solutions to operators.
