Disaggregation – The Telecom Operator is the key Roadblock
Last week in my article, I did highlight a use-case for buying passive elements like microwave antenna separately or disaggregating it from the purchase of microwave. And I also pointed out that it took a lot of time for them to be able to make that decision, due to multiple factors, one of them being that the capability of the technical team within the Operator.
The Vendors like Ericsson/Nokia made it difficult for operators by making proprietary interfaces for the Antenna and it is no different from Apple coming up with the lightning connector and removing the standard interface for the headset. Kind of like trying to lock you to apple accessories. The vendors use the fear of performance and integration and keep on charging high margin for these components. A parallel exists for Automobile Industry where Car manufacturers strongly push for “Genuine” spare parts or “warranty is void.”
When stakes become bigger and the Operator has no choice but to reduce costs, Operator can make it happen if:
- The operator is ready to integrate different components into a solution
- The operator is ready to define clearly the interface requirements needed for the system integration
- The operator is ready to engineer the solution, define rules and manage exceptions
- The operator is ready to operate & manage the integrated system
- The operator is ready to troubleshoot and pinpoint the issues and has the capability to either fix them or fix the responsibility of the individual component supplier to fix the issue
That means the operator has to invest in people to set up the following teams and industry engagements:
- An R&D that is
- engaged in standards bodies working on the cutting edge technology
- testing solutions to understand the implications
- finding out the right interface specifications and influencing suppliers to standardize them
- putting various systems together and making it work
- Planning team that is
- Works closely with the R&D team and evolves the variations of the solutions that are required in the network
- Works closely with the operations teams and helps to do a root cause analysis
- Works closely with the R&D team and Operations teams to make sure the right tools ate available to manage and operate the network
- Operations team that is
- Well versed with the technologies in use
- Equipped with an elite group that can work with Planning and R&D teams as well as suppliers of various components to develop the right processes that are needed to run these “assembled” systems
- Ready to be the SPOC for resolving the customer issues
The main issue is the major part of the APAC is that the Operators are not investing in the R&D teams and hence are behind the technology curve. As the “disaggregation” that is now on the way is far more complex than the microwave antenna; without this investment, the Operator becomes the Roadblock for adopting a beneficial technology early in the cycle.
I will talk about the role of some key vendors in delaying the adoption of the disaggregation in the next week, so stay tuned.