Russia’s Transport Transformation “We are very pleased to be considered for such an oppor-


tunity and look forward to spreading our expertise within the CIS region, enabling operators to lead the market by introduc- ing the latest technologies,” said Aleksandr Andrianov, sales director at Intracom, a Tellabs partner. Dmitry Ivanov, head of technical sales with system integra-


tor Jet Info Systems, a Tellabs partner, predicts that Russian operators will soon face a dilemma familiar to their Western counterparts: Data traffic will start outpacing data revenues. That trend will only accelerate, thanks to unlimited Internet access, flat- rate data packages and the pen- etration of 3G-enabled devices. “We definitely see a trend of


ARPU falling and traffic growing,” Ivanov said. “Operators are seek- ing ways to monetize usage on the radio network side, such as Deep Packet Inspection (DPI) and new tariff models.” “Developments including the take-up of smartphones in


Russia mean congestion on the air interface is a real possibil- ity,” said Matz Hedman, technology specialist at Tellabs. “Fair usage schemes that use context- and application-aware DPI to trigger traffic management actions enable more users in a cell area to share the spectrum with ‘good enough’ quality. So when congestion does occur, the ‘best-effort’ traffic can be held back in favor of higher-paying subscribers.”


Target: 100 Mbps But some argue that another factor — how the backhaul network is provisioned — could make or break the mobile broadband business case in Russia. “Mobile carriers must improve the transport network,” said


“ There is a strategic network change that needs to happen if operators want to be competitive.”


— Petri Markkanen, Vice President, Russia & CIS region at Tellabs


Konstantin Fetisov, sales director with General DataComm (GDC), a mobile equipment provider and long-time Tellabs partner. “The speed of the Internet will be growing. If operators want to offer IPTV solutions, for instance, we need something at about 50 Mbps per second for each subscriber. It will be necessary to improve the transport network.” Yet another reason


for backhaul upgrades: Russia’s Minister of Telecommunications has set a goal for broadband provid-


ers — mobile and fixed — of offering 100 Mbps. In response, GDC and other Tellabs partners working with Russian operators advocate the Tellabs®


8600 Managed Edge


System. The Tellabs 8600 system enables Pseudowire over MPLS as a cost-effective alternative to adding more expensive E1 lines to connect each base station. Ethernet is a much less expensive and more flexible


technology than TDM, the basis of E1 and T1 lines. Ethernet supports high-bandwidth scalability that lets carriers pay only for what they use.


INSIDE TELLABS’ RUSSIAN AND CIS STRATEGY


Rob Pullen, Tellabs’ CEO and president, recently spoke with Standard, a magazine covering the Russian and Commonwealth of Independent States (CIS) telecom markets. Following are some excerpts from that interview.


Standard: How does the geography of Tellabs’ business look? Rob Pullen: 43 of the top 50 global operators are using our mobile, optical or business solutions. About one-third of our sales are outside of North America. We consider India, Russia, Brazil and African countries


as strategic markets. It’s in these regions, mainly with local partners, where we are investing our money.


S: How does Tellabs operate in Russia and the CIS? RP: As in most countries outside the U.S., here we operate through partners, who have local competence and knowledge of local bureaucratic specifics. Our partners in Russia are system integrators such as Sitronics/Intracom,


AMT Group and IMAQLIQ (formerly General DataComm), and newly appointed partners Technoserve, Jet Info Systems and Satel. In 2010, we intend to expand our presence in Russia


and the CIS, so we’re going to increase the number of our local partners, switching from a single rank of partners to a 3-level system. Traditionally the dialogue with systems integrators was initiated by Tellabs, but in the past 6 months, our potential partners have contacted us.


S: Who are your main customers in the region? RP: Our key customers are 3G license holders, so our focus includes the entire Russian “great cellular three.” MTS, Vimpelcom and MegaFon purchase our optical solutions, and this year, we’ll also offer products for boosting their network capacity. In the CIS, we’re interested in large countries,


namely Kazakhstan, Belorussia and Ukraine. Our current customers include the Ukrainian cellular operator Astelit.


TELLABS INSIGHT Q3 13


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