Sprint to become first ILEC to make network all-packet

Sprint today announced a four-year, $1.1 billion contract with Nortel Networks to conduct the first phase of its plan to transition its local-division network to an all-packet platform, making it the first incumbent local exchange company (ILEC) to announce a complete circuit-to-packet conversion.

Packetizing its network will let Sprint converge its voice, DSL and private-line networks into one network that offers greater capacity and efficiency, according to Dan Mangelsdorf, Nortel’s vice president of carrier voice-over-IP (VoIP) marketing. While Sprint has not released any figures at this point, carriers are realizing 40% operational savings and 60% capital savings by making the transition to packetization, Mangelsdorf said.

“It provides sustainable cost savings in the voice network and lets carriers generate new revenues from services such as videoconferencing,” he said.

It also will let Sprint expand its DSL footprint.

“Today many subscribers are frustrated that because they are served behind a non-compatible network device such as a digital loop carrier (DLC), they can’t get high-speed data services,” said Jim Hansen, senior vice president of Sprint Local Telecommunications Division Network, in a statement. “The deployment of this technology will circumvent these bottlenecks.”

Although often overshadowed by Sprint’s long-distance, data and wireless offerings, the ILEC division boasts 8.3 million access lines in 18 states and has done better financially than the rest of the company during the telecom slowdown--ILEC holdings accounted for 70% of Sprint’s profit during the last quarter--according to Patrick Comack, telecom analyst for Guzman & Co.

Nortel will replace Sprint’s existing Class 5 infrastructure with its softswitches--the Communications Server 2000--and a media gateways--the Media Gateway 9000--for 3.6 million access lines in the first phase. Replaced Class 5 switches will be redeployed in growing areas of Sprint’s network that will be packetized in the latter phases of the transition.

Last month, Nortel announced a similar win with Qwest Communications, which is transitioning its local networks to IP. However, Qwest is packetizing only the trunking portions of its network using the CS 2000, while Sprint is converting its entire network by using the MS 9000 to handle terminate access lines, Mangelsdorf said.

While packet technology has been hyped for years, questions about reliability and service quality as a voice solution have prevented its widespread adoption. With its Succession suite of products, Mangelsdorf believes Nortel has resolved those concerns.

“The key here is we can provide circuit-switch equivalency with five 9’s reliability,” he said.