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The great transformation

Fixed networks are red hot at the moment. What some viewed as a cooling market a few years ago is now anything but. That is because things are changing: today, everyone wants higher capacity - more bits in less time.

July 28, 2006

This places completely new demands on fixed networks, so Ericsson is taking the lead with a new optical offering.

The telecom world has developed in waves (the internet, mobile phones, broadband and so on); the wave currently sweeping the industry is extended broadband connectivity. Technical gadgets are quickly collecting in homes and offices, and they all need to be connected and work perfectly.

In addition, the market is moving to a completely new way of communicating - the multimedia communication of the future - which is interactive and independent of terminals and networks. This brings with it new services and triggers new patterns of behavior.

To boost development further, the major players in fixed broadband - cable-TV companies, broadband companies with fiber networks, and the telecom companies - are facing a generational shift. Young consumers want entertainment, and entertainment demands capacity.

Peter Linder, director of Network Strategy for Broadband Networks at Ericsson, calls this "the great transformation." The evolution is heading toward convergence - all-IP traffic - and efficient, high-capacity solutions in fixed networks are vital.

Since its recent acquisition of Marconi, Ericsson can now offer the full range of Marconi's Optical Networks product portfolio, including Synchronous Digital Hierarchy (SDH) and Dense Wavelength Division Multiplexing (DWDM) equipment, and a common management system, OSS.

Leading solutions
"Ericsson now has a complete transport portfolio, and our new DWDM solution is an excellent example of how we now provide leading solutions in the fixed area, as well as in wireless," Linder says.

Telefónica de España recently selected Ericsson as the supplier for its metro DWDM optical network. The network is expected to become a cornerstone for Telefónica's next-generation transport network in Spain.

The Ericsson Multihaul WDM solution provides a cost-effective and manageable multihaul platform to support multiple services and multiple network topologies in metro, regional and long-haul networks. It enables service providers to maximize bandwidth and service flexibility in their metropolitan networks, and create new revenue opportunities in the services that will come with "the great transformation": high-speed data services, TV distribution, VoD and VoIP.

The new network now enables Telefónica to meet the increasing traffic demand triggered by its customers' response to new broadband services.

Enrique Carrascal, network director at Telefónica de España, says: "We have chosen Ericsson as the supplier of this technology because of its outstanding flexibility, optimal performance and operational synergies."

Telefónica will not only be able to deliver high-speed data, storage, video and voice services with guaranteed quality; the multihaul solution also adapts to any network needs from the edge to the core, reducing complexity and cost.

In recent years, Ericsson has aimed to become a leader not only in wireless solutions, but also in wireline. It has been a long journey. But as end users demand more capacity, as homes and offices require more speed, and as the young cry out for entertainment, Ericsson's portfolio will meet the demand for more capacity in fixed networks.