Italtel and ECI Telecom partner for customized optical transport systems

NOVEMBER 11, 2009 -- Italtel will be a preferred vendor and system integrator for ECI Telecom technology in the building of integrated communication networks for service providers, communications providers, and utility companies in the "quadruple play" (data, voice, video, mobile) access and transport markets.

NOVEMBER 11, 2009 -- Italtel, a supplier in the next-generation IP networks sector, and ECI Telecom, global provider of networking infrastructure equipment for next-generation network (NGN) migration, have signed a partnership agreement for the sale and customization of optical transport systems for metro networks and access platforms for voice, data, IP video, and fixed/mobile convergence.

Italtel will be a preferred vendor and system integrator for ECI Telecom technology in the building of integrated communication networks for service providers, communications providers, and utility companies in the "quadruple play" (data, voice, video, mobile) access and transport markets. Under this agreement, Italtel has become one of ECI's Global Partners.

"As the telecom sector continues to evolve, strategic partnerships such as this new agreement between ECI Telecom and Italtel, will be critical for the success of telecom equipment suppliers, especially in an increasingly competitive and mature market. ECI brings a best-in-class access platform in the Hi-FOCuS portfolio and a leading multiservice transport platform in the XDM, while Italtel brings an impressive presence in EMEA and Latin America, as well as valuable expertise in system integration, voice over IP, and mobility. This partnership makes perfect business and technology sense," says Erik M. Keith, principal analyst for broadband infrastructure at Current Analysis (www.currentanalysis.com).

"The partnership with Italtel strengthens our presence in important and growing international markets. With our access and transport portfolio, Italtel will be able to provide their customers with high-end platforms that are optimized for next-generation evolution. In Italtel, we have found a partner with the required ability and expertise that are complementary to our own, in addition to a strong and recognised specialisation in system integration," notes Tony Scarfo, head of global channel sales and partners of ECI Telecom.

"The agreement with ECI is part of our plan to develop into specific foreign markets and to widen the perimeter of our products and services," adds Claudio Chiarenza, general manager and chief strategy officer of Italtel. "This partnership allows us to extend our portfolio of solutions for service providers in the EMEA and Latin America markets with products for access and optical transport, and to adopt a structured approach to a market segment that is potentially attractive, represented by European service providers and utilities with their own network infrastructure."

The partnership between Italtel and ECI Telecom will cover the integration and customization, at the customers' premises, of ECI's multiservice access node (MSAN) Hi-FOCuS and the metro edge BroadGate line of products. The Hi-FOCuS supports voice, data, and video over one converged IP platform, while the BroadGate line is an advanced multiservice provisioning platform for the transporting of data streams over fiber-optic in metro networks.

Despite the economic downturn, which caused capex to decline in 2009, with service providers putting on hold some of their major infrastructure investments, the telecom market still remains one of the most dynamic and competitive sectors in today’s world, as subscribers and network traffic keep growing. Service providers face many challenges -- the need to migrate to IP networks, blurring of boundaries between different types of providers, demand for advanced services, in addition to lower margins, reduced revenues, and increased competition. According to Infonetics Research, service providers today are transforming into vertically integrated multimedia providers.

Infonetics expects broadband and corporate traffic to continue to grow as IP video, IPTV, and personalization of services take hold. IPTV traffic patterns will cause a continual push for more network capacity over the years. There is increased adoption of broadband data services and of mobile telephony and data traffic.

"Worldwide, we expect over 600 million fixed broadband subscribers in 2013. Much of this growth is coming from emerging markets, such as China, Southeast Asia, and Russia, as more mature markets in Japan, Korea, North America, and Western Europe reach saturation," says Michael Howard, principal analyst, Infonetics Research (www.infonetics.com). "Subscribers are attracted to new services brought on by broadband investment in IP video, including IPTV, broadcast TV, video-on-demand, HDTV, network PVR, online gaming, music downloads, video telephony, and home automation and security services."

Worldwide telco IPTV subscribers reached 26 million in calendar year 2008 and are expected to grow to 155 million by calendar year 2013, as operators rely on video services to increase ARPU and to retain fixed broadband subscribers.

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