Acquisitions

AT&T boosted its rural operations by purchasing the retail wireless operations of Alltel for $780 million in cash. It acquired spectra in the 700, 850 and 1900 MHz bands, plus network assets, retail stores and approximately 585,000 subscribers across six states. Alltel’s total network coverage is 4.6 million people, primarily in rural areas.

Although networking is the foundation upon which telcos are built, they’re increasingly turning into IT shops. Ericsson purchased the French company Devoteam Telecom & Media to broaden the capabilities of its IT services; 400 skilled IT services professionals based out of France will be joining the CSP. Ericsson’s deal also includes the acquisition of Devoteam’s TV SmartVision operations.

Meanwhile, Cisco purchased self-organizing network (SON) software provider Intucell and sold its home-networking business to Belkin. This is a positive vote for network virtualization, not to mention quasi-redemption for those of us who’ve experienced frustration with Cisco’s home routers!

Market reports

Machine-to-machine communications (M2M), a perennial hot topic, will crank up the heat this year, if recent research is any indication. Smart meters, for instance, are being installed in record numbers in the States. “Our research shows the US market will have over 50 million utility-based smart meters deployed by 2013, reaching 62 million by 2015,” says Stuart Sikes, president of Parks Associates. “The outlook for smart meters to interact with connected CE and appliances in the home has changed drastically, as electricity providers are now exploring partnerships with communications and security-service providers.”

The majority of M2M traffic travels over Wi-Fi and is delivered over Wi-Fi transport, but cellular M2M connections play a key role when devices are mobile. According to the latest report from ABI Research, M2M cellular-module revenues rose 21 percent in 2012, good news for mobile operators who want in on the M2M market. Better yet, ABI expects the climb to continue, predicting that nearly 100 million cellular units will ship in 2015. Dan Shey, the firm’s practice director for M2M, verticals and enterprise, commented, “Module suppliers’ 2013 view of the market is cautiously optimistic to very optimistic. Suppliers with a larger M2M cellular-module end-use footprint in Europe are more reserved, while those less exposed to Europe are expecting to grab world-market share.”

Network virtualization and software-defined networking (SDN) are popular topics at industry trade shows, but some analysts believe they’re still a long way off from becoming a reality, prompting industry pundits to decry the buzz as mere hype. Not so, says Strategy Analytics in a new report.

Service providers like BT, Deutsche Telekom, SingTel, Telstra, and Verizon are already pioneering network virtualization, and Strategy Analytics believes SDN will shift mobile operators’ costs dramatically in the coming decade. “Once service resources are virtualized with SDN, operators can simultaneously differentiate business offerings, increase revenues and accelerate delivery of new services,” says Susan Welsh de Grimaldo, director of mobile broadband opportunities at Strategy Analytics.

Similarly, Cisco’s strategic investment in SON highlights the importance of network virtualization. Kelly Ahuja, senior vice president and general manager of the company’s Service Provider Mobility Group, says, “The mobile network of the future must be able to scale intelligently to address growing and often unpredictable traffic patterns while also enabling carriers to generate incremental revenue streams.”