Are We There Yet? And If So, Where Is There?

Wally Beck, Senior Director of Marketing, AppTrigger Inc.

The Abilene paradox: When a group gets so caught up in the grand plan that they fail to recognize its pitfalls or in the case of telecom network evolution, the alternatives that reside in their own “backyard.”

At some point in our working lives we have all most likely sat through a “Road to Abilene” scenario, the group-think principle set to the backdrop of a family road trip headed to a dinner nobody really wants to participate in or understands why they are attending. But since all have “agreed” to the proposed idea, all wind up going along for the ride! By the time they return from the 100 mile odyssey, they are all pointing fingers with no real explanation for why they went or what they accomplished.

There might be something to learn from this example. Is the path to telecom’s next network the road to Abilene? Telecoms might find themselves all agreeing to head down the road without first examining the resources at hand. In today’s economic environment doesn’t it make sense to explore how best to secure existing revenue streams while also incorporating the best use of current network assets?

A number of key decisions that set a very pronounced course for the future have been made by service providers as they try to navigate through the constant change of network evolution and the move to NGN. For the most part these decisions are based on sound principles: cost and network efficiencies and future revenue growth. However, the question remains: have they made a decision that takes into account the best use of assets? Not only those resources that lie down the road, such as the promise of NGN/IMS and Web 2.0 but another more readily available resource ... that of their existing legacy network assets and the associated subscribers? Have service providers fully assessed where they are, what they have and where they are going before they jumped in the car to Abilene?

Each and every major service provider inherently brings with them a key strategic asset — a large existing base of customers. These customers reside on current networks while leveraging services and applications that are of high quality and familiarity. When compared to the promise of new next gen apps, service providers enjoy a relatively low risk and stable ARPU from the portfolio and network they currently support.

Are service providers loading up the family and heading down the road without fully utilizing their assets and leveraging a relatively secure steady revenue steam from current services in favor of the next network?

We all realize that next generation networks such as IP/IMS and the fast paced world of Web 2.0 development are the wave of the future and must be embraced going forward. But even with this in mind, the ability to leverage the resources that are already present within the network should not be overlooked. The cost to recreate large established services like pre-paid, voice mail, conferencing and other SCP and IN based voice services can be staggering. There are ways to avoid these costs and to accomplish this in a low-risk, asset leveraging environment. The idea that there is a better way to institute cost savings while increasing ARPU, retention and customer acquisition, has gained momentum in these economic times of belt tightening and fiscal awareness. The next network evolution is a stage of transition and a new set of requirements has emerged to fulfill this need within the context of a service broker network element. The ability to cost effectively pull existing customers and services into next generation networks while at the same time exposing the innovation of new applications to the enormous legacy subscriber base establishes it as the cornerstone of a service broker. By examining the service broker product and the companies that produce them, service providers will discover a means to secure additional revenue from existing services and lower the risk of introducing new innovative applications to the market. Service brokers provide a clear path and cost effective direction without a side trip down the road to Abilene.

Wally Beck is senior director of marketing for AppTrigger Inc., responsible for the company’s partner program and channel marketing efforts on a worldwide basis. An accomplished marketing and sales operations professional with more than 20 years of experience within the telecom networking and service provider space, he has served in key marketing and sales operations roles at Cisco, Extreme Networks and Sprint. Beck holds an undergraduate degree in business from Southern Methodist University and a master’s degree in business from the University of Kansas.