Thursday, 22 May 2008

Trend Towards NGN Telecomm Service still Strong

Legacy services (i.e. frame relay, leased line, and ATM) over the wide area network (WAN) continue to provide the US professional services, finance and insurance, government, and healthcare vertical segments with a reliable, manageable communications infrastructure, but it is evident that these sectors see the benefit to transitioning to next-generation (NGN) services, reports In-Stat in a new study.

For the purpose of this study In-Stat has defined NGN services as IP/MPLS and Ethernet services.

"Although these vertical industries are seeking similar goals, the individual motivations and concerns over migration vary by priority and importance," says Steve Hansen, In-Stat analyst.

"From the perspective of the service provider, understanding the migration profiles of each specific vertical can provide insight into how services should be packaged and marketed to that specific sector."

The survey noted that legacy services are still in use in over half of the verticals analyzed. Over 50% of these current legacy services users are migrating, or plan to migrate, some/all of these services to other services, such as IP/MPLS and Ethernet.

The study also revealed that a major requirement from customers is that NGN connectivity has to be provided in a manner that protects corporate data, reduces overall cost, can service a remote/mobile workforce, and can be recovered after a disaster.