Alcatel-Lucent transforms Telefónica’s IP network as demand grows for highest network performance to deliver data and video

Paris, France, August 19, 2015

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is transforming Telefónica’s fixed and mobile networks with its IP technology and services expertise to meet growing consumption of data and video by its customers – while ensuring optimal operational cost and efficiency.

Video content is causing data traffic to rise dramatically across Telefónica’s networks. In 2014 the company tripled its pay-TV subscriber base to 1.9 million customers. With the expansion of its Movistar TV service, including the integration of Canal+ services and launch of personal video and ‘catch-up’ TV services - enabled by Alcatel-Lucent’s Cloud DVR platform - Telefónica will continue growing its customer base that could reach four million customers for this service by the end of 2015.

Demand is also growing amongst Telefónica’s mobile subscribers, as well as amongst customers of its fixed access business, driven by the operator’s announcement earlier this year that it will triple the speeds of its fiber fixed-line services. As a result of this demand, Telefónica aims to increase network capacity and reduce complexity to allow it to manage traffic with even greater efficiency.

In a three-year project, Alcatel-Lucent is deploying its IP Routing portfolio with Telefónica that will drive simplification into the network, with a network design that will collapse the traditional eight network layers into only four. Residential and business services will converge on a single network and the IP service edge will move closer to customers, enabling Telefónica to use network capacity more efficiently and optimize data and video delivery, lowering latency to boost performance and reduce costs, while setting the stage for advanced services in the future.

Alcatel-Lucent will also employ its leading services expertise for the project including installation and commissioning, systems integration and migration of current services to the new network architecture.

Key Facts :

  • Alcatel-Lucent will deliver its IP routing technology as part of Telefónica’s three-year ‘Fusión Red IP’ project – the first global transformation project of its kind conducted by the service provider – which will begin in in the coming months in Murcia, Spain.
  • Alcatel-Lucent will replace older routers within the network, using its IP routing portfolio to perform core routing and layer two and three edge routing functions and act as a broadband network gateway for the provision of residential services. Alcatel-Lucent will deploy the 7950 Extensible Routing System, the 7450 Ethernet Service Switch (7450 ESS-MM), and the 7750 Service Router (7750 SR-12). End-to-end management will be provided by the Alcatel-Lucent 5620 Service Aware Manager.
  • Alcatel-Lucent will employ its services expertise to manage the project, including installation and commisioning, systems integration, integration of nodes with the network and migration of current services to the new network architecture.
  • Alcatel-Lucent offers a comprehensive portfolio of hardware and software based routing functionalities for enhanced network efficiency, allowing service providers to address the overwhelming growth in video and data traffic and offering a seamless migration toward virtualized network architecture, using NFV. Alcatel-Lucent recently announced an extension of its collaboration agreement with Telefónica to test NFV functions, following outstanding lab test results achieved by the Alcatel-Lucent Virtualized Service Router.
  • Having launched an IPTV service in 2001, Telefónica re-launched its new Movistar TV service, powered by Alcatel-Lucent’s IP Video portfolio - including its Cloud DVR platform and 5910 Video Services Appliance - in December 2013. Within 13 months the number of Cloud DVR users quintupled with hours of usage increasing by 19% between October 2014 and February 2015.

Quotes :

Joaquín Mata, Network Technology and Operations Director, Telefónica Spain said : “As we ramp up our video and high-bandwidth data service offers we are committed to delivering the best possible quality of experience for our customers. By working with Alcatel-Lucent to leverage its IP Routing and Services expertise we will be able to manage our network with even greater efficiency.”

Roque Lozano, President of Alcatel-Lucent Spain and Global Account Manager for Telefonica, said : “As network transformation specialists we can help deliver the highest flexibility and efficiency into our customers IP networks with a comprehensive portfolio of technology and services. By converging residential and business services and providing routing capabilities closer to the IP edge, we can help customers such as Telefónica get more from their network capacity, while simplifying network structures to maximize user experience for the next generation video services challenging requirements and achieve it at soustainable costs levels.”

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