I. Network Transformation Challenges and Opportunities for Network Carriers Traditional carriers are now facing three main challenges: A. Saturation in fixed-line and wireless voice markets. B. Continued erosion of TDM service revenue by IP and VoIP telephony. C. Lack of an effective strategy and sufficient profit margins for broadband services. The need for transformation The prevalent trend in the telecom market exhibits wireless technologies replacing fixed-line telephony, voice services giving way to non-voice services, and ICT convergence superseding traditional business services. The fixed network market has undergone substantive, structural changes in terms of increasingly demanding market requirements, the impact of technological progress and fresh challenges due to increased competition. Telecommunications is now focused on the integration of multimedia information and the convergence of IT and CT in corporate applications. Furthermore, there now exists a greater emphasis on mobility and personalized and customized services. Technological advancements have given rise to lost cost new technology, more rapid deployment methods and an unprecedented ease of market entry. IP and mobile technologies are the fastest developing applications and, compounded by polarized competition, cheap mobile voice and VoIP telephony and VoIP services are shattering the tried and tested "license + voice" service delivery pattern. Structural transformation is therefore inevitable for network carriers, and this is in fact necessary to guarantee survival in the marketplace.
The nature of transformation and NGN This of course raises the question of defining clear goals relative to the nature of this transformation. Some common viewpoints have been found after analyzing the cases and strategic plans of various globally leading carriers, including BT's 21st Century plan, Telstra's Future Network Evolution and NTT's Resonant Communication Network Architecture. It is the belief of these companies that traditional carriers must shift perspective to become more holistic and integrated information service providers in order to reflect the fact that networks are moving inexorably towards convergence, broadband and network intelligence. Convergence' can be defined as multiple networks of services being combined into a single network providing multiple services; broadband' refers to the evolution of narrowband networks to broadband networks; intelligence' means the transition of intelligent networks to network intelligence. Traditional to NGN network evolution occurs in two stages. Firstly, NGN is used re-construct PSTN. Secondly, corporate and home subscribers are provided with converged Information Communication Technology (ICT) services.
