A services-oriented mindset emerges

As president of Nortel Wireline Networks, Sue Spradley is responsible for driving cost-effective packet solutions for Nortel Networks voice, data and multimedia service offerings, as well as circuit technology. Sean Buckley checked in with her about some of Nortel's plans for the future.

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Q: Tell me about your strategy for the wireline division.

A: One of the objectives is to participate in network convergence. Assuming that global regulations move positively, we focus our sales, marketing and R&D dollars on offering ubiquitous packet technology services to the consumer and business markets. Therefore, our investment continues in VoIP. I would drive that further to say multimedia-over-packet technology, in that we see voice as one of the many applications driven across the network today as networks continue to converge wireless, wireline and data. Nortel's R&D dollars will be focused on the multimedia space, convergence of voice and data and convergence of TDM and packet. There's been a tendency in the marketplace to let TDM die and only talk about packet, but our ability to make services available across both domains is important.

Q: You mention the coexistence of TDM and packet. How will they come together?

A: First of all, TDM is not going away any time soon. I don't think that's a bad thing as long as there's a bridge to the future. We believe that there will be convergence at the desktop for voice and data, so multimedia needs to happen in both the packet and the TDM domains. When we talk to service providers and large enterprises, they all say they want to be the recipient of new services or be the deliverer of new services that help people be more effective with their networks and applications. Service providers that can differentiate and provide different levels of service and different capabilities based on the needs of the service--that's the sweet spot. There was a tendency for people to say operators would never spend again and would stay in a defensive mode, but I don't think that's true. What they want are good offensive services to offer.

Q: Is there a shift to a more service-oriented mindset?

A: Absolutely. They are saying 'if you guys can help us drive our top line and differentiate ourselves with levels of service, then come do that, and by the way, tell us the application and technology we need.' That's a different game than before, when it was all around operational savings. It's being more driven by high-touch services and what can be done with those to really help the game for the service provider.

Q: How will VoIP fit into the picture?

A: We don't look at it strictly for a wireline carrier, but rather how multimedia services affect someone at the enterprise level, consumer level, whether they are on a wireless or wireline network. I don't believe the days are long when people are going to be tolerant of carrying multiple devices in their briefcases and having to change them depending on what network they are standing around. The network would be intuitive, but intuitive for the user. For the service provider, they have to become more focused on an enterprise, per-consumer service level capability and how they deliver that service. They can bundle forever, but eventually you will just bundle your margin out the door. The value of a bundle is focused on individual needs, and service providers that offer that will retain and sustain that customer base.

Q: Nortel has stepped up its presence in the access network. Can you tell me about that?

A: We have some partnerships with Calix and ECI. We do believe that customers want us to have an end-to-end solution. We don't believe just going with narrowband solutions or basic broadband is going to be good enough. What we mean by terms like 'ultrabroadband' is that you accept the premise that something is likely to be on any kind of access technology--wireless or wireline. That means that the access edge has to become smarter and has to become capable of ultravailability.

COPYRIGHT 2004 Horizon House Publications, Inc.
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