Mobile operators eying DSLAMs

Stuart Corner
Tuesday, 11 April 2006 09:29

Opinion and Analysis

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When the inevitable consolidation of Australia's multiple DSLAM networks takes place those operators looking to sell lout at a good price, or receivers/administrators trying to optimise returns for creditors might find a willing buyer from an unlikely quarter: Vodafone or even Hutchison.

For many years Vodafone has made much of its pure-play mobile focus and has spent billions building and buying networks around the world to create a truly global mobile player. But as recent reports have highlighted, cracks are starting to appear in this mighty edifice.

Similarly Hutchison has built up a portfolio of 3G networks around the world. However these are more individual businesses with common ownership than arms of an integrated global operation, like Vodafone.
If the scenario of these companies getting into the fixed broadband business seems unlikely, look no further than a report from Europe from Light Reading.  It claims that: "Pure-play mobile operators such as O2 plc and Vodafone Group plc are set to enter the fixed-broadband fray in Europe, and are sizing up local loop unbundling (LLU) options that would see them procure and deploy their own DSL equipment."

Citing un-named industry sources, Light Reading continued: "Vodafone is set to follow the example of fixed-line competitive operators by procuring and deploying its own DSLAMs, potentially in multiple territories. The mobile operator has had presentations from at least one major vendor, the world's leading DSL equipment maker - Alcatel - and has likely been briefed by others."

Alcatel for one appears to be in no doubt that the likes of Vodafone be will getting into the DSL business if they want to survive. At the company's two day Asia Pacific regional press briefing held in Sydney last month one senior Alcatel executive, Dave Hills, put it quite bluntly: "In my view the days of the pure play mobile operator are numbered." And as Alcatel's director of global market positioning he should have a pretty good handle on the market.

It's probably too early to start counting those days, but the driver for this statement can be summed up in one word: convergence. All the major vendors have been pushing the idea from different perspectives for several years. For Alcatel it was "user-centric broadband" (and until recently the role of mobile was played down somewhat). For Motorola it was "Seamless Mobility":...more

Also see Vodafone contemplates $A65 billion writedown
and don't miss
Vodafone does the global splits