Cisco outlines roadmap for next-generation service provision in the Middle East

The challenge of greater consolidation and competition and the operating expense savings that result from migrating voice traffic from legacy circuit switched networks to IP-based infrastructure were keynote topics. Cisco's executives presented the argument for network convergence and summarised the growing demand from enterprises, Small and Medium Businesses (SMB) and individual users for converged services such as fast Internet, MPLS VPN and IP Telephony, as well as Wireless Local Area Networks (WLAN) and Public Hotspots.

Egypt's Minister for IT and Communications, His Excellency Dr Ahmed Nazif led a powerful delegation of speakers on the first day. Presentations from Massimo Migliuolo, Vice President of Cisco Systems' Worldwide Mobile Operations, Reza Mahdavi, Vice President Europe Middle East and Africa (EMEA), Mark De Simone, Vice President Market Development, Channels, Alliances and Marketing Cisco EMEA. Enrico Deluchi, Vice President for Challengers EMEA, Mark Kummer, Managing Director for Incumbents EMEA and Steve Harris, Director Customer Advocacy EMEA, combined to outline the rationale for a business strategy based on IP architecture.

"All telecoms operators recognise that running voice communications over their IP network makes business sense. One network is cheaper and simpler to manage than two and converging voice with IP helps enable the delivery of new converged services which can be a lucrative source of revenue. Challengers in the Middle East stimulated the market and have pioneered the use of new technologies such as Metro Ethernet and the delivery of innovative converged solutions to the business community," said Enrico Deluchi, Cisco Vice President for Challengers, Cisco Systems EMEA.

Market forces and technical innovation have impacted the growth potential of traditional voice services for service providers in deregulated markets. Cisco's executive team drew on the company's experience with enterprise and SMB (Small & Medium Business) networks in outlining changing business needs. They pointed to a growing focus on out-tasking as CEOs understand the productivity potential of internet business applications and demand more from their CIO on fixed budgets. "This represents a tremendous revenue opportunity for the service provider that is quick to develop and deploy managed or hosted IP services. Often the provision of an IP VPN service is the building block for managed WLAN, IP Telephony and other revenue generating services that enterprise and SMBs are demanding," said Mark Kummer, Managing Director for Incumbents EMEA.

Wireless hotspots have been trialled in Lebanon in 2003 and are currently available in many parts of the Gulf. Wireless-enabled hotels, cafes, exhibition halls and other public areas are becoming common-place in the Middle East and 3G networks have also started to be introduced, with the UAE launching its service at the end of 2003.

"The availability of the 'mobile' Internet through 3G and other wireless technologies will increase the uptake of the service and opportunities for service providers, enabling them to offer new revenue generating products and services to their customers. Equally this can benefit local businesses by enabling companies to increase the returns they can make through Internet-based investments, both through productivity gains and improved functionality," said Massimo Migliuolo, Vice President of Cisco Systems' Wordwide Mobile Operations.

Cisco's executives were accompanied by Jawad Abbassi, Co-founder and President of the Arab Advisors Group, who provided independent analysis and research on trends that are expected to impact the industry in the coming years.