Siemens puts TDM migration in Genband’s hands

Siemens Networks LLC said this week it has transferred its Digital Central Office circuit-switch business and 27 employees to long-time technology partner Genband. Along with the products and people, Genband is acquiring the service and support infrastructure for approximately 2500 host and remote switches in North America.

The deal, for which the parties are not disclosing financials, will allow Genband to apply its IMS-based migration solutions to operators still serving 14 million circuit-switched access lines.

Life won’t change for customers immediately, said Susan Schramm, vice president of marketing at Siemens.

“They’ll wake up in morning, and dial the same number, talk to the same people. They’ll just have a Genband badge on,” she said. “But when it’s time for them to move to the next-generation network, Genband will take the lead and implement the access piece. In the meantime Siemens will continue to bring a broad range of products to that same customer base, be it softswitch or optical or carrier Ethernet.”

Siemens also sold the licensing to its interface technology for both its DCO and EWSD installed bases. This gives Genband the ability to tightly ingrate its products with both Siemens’ TDM-based and net generation products, putting it in a better position to manage circuit switched customers’ ultimate migration.

“We all knew broadband wouldn’t be deployed fully overnight, that it would take 15 to 20 years,” said Jody Bennett, vice president of corporate development and marketing at Genband. “But this removes a big hurdle and helps accelerate the transition.”

Siemens will retain its installed base of 1100 EWSD switching systems and expects to leverage the Genband relationship to compete for these customers’ next generation-based business.

“We recognize we have to compete in the open market no matter what,” Schramm said. “Our products have been well received in both the cable and RBOC markets. We hope this will provide a very cost-effective and effective investment answer for them. The Genband will hold our coats while Siemens dukes it out with everyone else in the market.”

Plano, Texas-based Genband, in which Siemens is an investor, supplies IMS and infrastructure products and solutions worldwide. It has deployed its products and technology to more than 125 customers across three continents.

Bennet said the challenge for the DCO service providers is that for now they are stuck operating their central offices with two technologies. This transaction, he said, will give Genband the rights and interfaces to have its gateways connect directly into their line bases. Genband’s recent acquisition of Baypackets also will help the company deliver advanced messaging application to this customer base across their copper loops.