Redback’s DeNuccio: Kill the legacy networks quicker

LAS VEGAS -- Landline telecom companies need to move more quickly to replace their legacy networks, even if the business case isn't solid, Redback Networks Vice Chairman Kevin DeNuccio said today.

Addressing hundreds of such service providers at the MetaSwitch Forum 2009, DeNuccio said legacy networks are sucking up too much capital and preventing landline providers from getting the IP networks they need in place to be ready to support the coming tsunami of bandwidth demand from Internet video and wireless Internet access.

"You need to get to an all-IP soft network to get your cost structure in order," DeNuccio said. "Pouring dollars into legacy networks is wasting capital. There is a sense of urgency here that people don't see, to leave the legacy infrastructure behind. You need to create a multi-phased plan, showing how do I get to where I want to be, and aggressively rotate your capital. Even if the business cases today don't always make the cut. It's important to look a little bit past the dollars and cents and get the legacy networks shut down now."

The impact of the mobile Internet on the global telecom industry will be 10 times what the original Internet was, DeNuccio said, because the mobile Internet will be able to reach tens of millions of users in places like India and China that don't have PCs. "The mobile Internet will flatten the world much more than the Internet did and will be much more impactful," DeNuccio said.

Ultimately, wireless demand drives bandwidth requirements for landline networks that backhaul traffic. In addition, DeNuccio said, the movement of entertainment video onto the Internet will drive the need for an all-IP infrastructure and more fiber-rich distribution networks.

"The more fiber you can put in the network, the better," DeNuccio said. "The video Internet demands more bandwidth."

That bandwidth has to be two-way, DeNuccio said, as Verizon has seen with its FiOS deployment. "They are seeing massive heavy bandwidth demands as people are blasting video entertainment channels into the network," he said. "You have to make sure you build the Internet infrastructure that can handle more than a download-only environment."