Bell Labs study reveals how service providers can reduce operating costs by up to 40% through virtualizing residential gateway functions into the cloud
Paris, France, December 15, 2015
- The Bell Labs study reveals cost savings in the following categories:
- Service fulfillment: 7-12% cost reduction – a simpler residential gateway, extended auto-installation capabilities and network-based service capabilities lead to faster turning up of upgrades or new services and fewer home visits by technicians to address service activation or upgrade issues. Home visits can easily represent over 80% of service fulfillment cost.
- Service assurance: 63-67% cost reduction – service provider data shows that 30-40% of trouble tickets are related to issues deeper in the network. These can be resolved better by virtualizing and centralizing these deeper functions in combination with home device management capabilities.
- Life-cycle management: approximate 66% cost reduction – although life-cycle management costs are relatively small compared to fulfillment and assurance costs, enhanced service velocity and agility improve service innovation, time to market, and revenue.
- In addition to boosting profitability, a virtualized residential gateway delivers structural improvements in customer experience, service velocity and operational agility.
- Alcatel-Lucent’s virtualized residential gateway solution is supported by both the 7750 SR and the Virtualized Service Router product line, and complemented by the Motive vRGW Controller and the 7368 ISAM CPE and ONT product lines. The company’s vRGW solution is available now, with more capabilities being introduced in first half 2016.
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