Siemens Shores up APAC Portfolio with Acquisition
telecomasia.net
2006-05-17

Siemens is toughening up its optical networking portfolio – and its end-to-end solution proposition for carriers making the transition to NGN – with its announced acquisition on Tuesday of one of its OEM partners, Shanghai-based multi-service provisioning platform (MSPP) company Photonic Bridges.

Under the deal, still subject to the usual approvals, Siemens will integrate Photonic Bridges’ entire next-gen SDH product portfolio into the value added chain of its optical transmission systems. Next-gen SDH optimizes SDH’s data capabilities, giving carriers the flexibility to run circuit and packet traffic – including Carrier Ethernet – on existing SDH systems.

Siemens is promoting the deal in part as further evidence of its commitment to the Asia-Pacific broadband market.

“We want to strengthen ourselves in this region, and we want to be where the innovation is,” said Christian Unterberger, president of fixed networks at Siemens Communications.

However, Siemens is also promoting the Photonic Bridges deal within the context of its “Smart Home” strategy, which views home networks as a natural extension of broadband services like IPTV – provided the entire network is optimized to deliver them.

“We see end-to-end Ethernet as a key part of this, because it enhances the carrier’s ability to aggregate traffic,” Unterberger said. “It’s also important that new services can be brought in fast where the demand exists, or it can be uninstalled and reinstalled quickly as needed.”

Siemens is positioning several home networking service applications for its home entertainment module (under the Surpass brand), including health care, home surveillance, and home control.

Unterberger said that while the technology is ready for such services, the real trick in offering them will be in the delivery.

“It’s not about what services you offer so much as having the ability to implement them in a way that ensures availability, reliability and high quality,” he said.

The success or failure of such services will also depend on carriers finding a viable business model, he added.

“These services have to be charged for the right way, which means carriers have to work out the value of what they’re offering,” Unterberger said. “Maybe a monthly fee makes the most sense, or maybe it has to be done another way.”