Media Coverage

Jan 9, 2013

Telco Systems: end-to-end edge solutions to help service providers be more competitive

Telco Systems offers solutions that allow service providers to deliver MPLS to the edge of their networks so that they can sell service-level agreements and differentiated services, explains company CEO Itzik Weinstein.

Itzik Weinstein: The ability to offer different levels of service and different quality of experience is a valuable tool for the future. We do this with our product and our service management tool, with MPLS to the edge

Can you describe Telco Systems’ solutions set?
Itzik Weinstein: Telco Systems provides end-to-end edge solutions to our customers — that is, service providers in all sizes , mobile operators, utilities and city carriers, We serve all of them.
Our solution enable service providers to create an intelligent end-to-end service-assured Carrier Ethernet/MPLS network. Telco Systems’ solutions focus around four primary vertical markets -carrier cloud networking and services, business ethernet services, mobile backhaul, and AdvancedTCA (ATCA) switching blades that provide carriers with progressive applications and services. This broad offering of products extends from the edge of the network to the core and edge of the cloud, and is supported by EdgeGenie, Telco Systems’ leading service management system.
We don’t play in the core network, but rather at the edge of the core to the edge or to the demarcation point of the customer or cellsite . We offer MPLS and Ethernet solutions — a very rich portfolio of products with a number of different devices with different capacities.
Our service management tool is not a network management tool but rather a service management solution. The point of the service management tool is how to set up a service end-to-end, to set it up fast and to do it in a foolproof way.

What makes Telco Systems solution unique in the industry?
Weinstein: Telco Systems is more than 40 years in the market. We have been working with service providers in the market since the early 1970s. We are a global company that is fully owned by BATM, a technology company that is quoted on the stock markets in London and Tel Aviv.
We have offices around the world and competence centres in Europe and Israel, with sales support in US, Canada, Latin America, Asia and Europe. Our head office is in the US, near Boston, Massachusetts.
As a company, our solutions are focused around few vertical markets —meaning they are focused on different services and applications targeted the service providers market, such as business Ethernet services, cloud networking and mobile backhaul.
We also have switch blades using ATCA technology which is a standardized carrier class hardware architecture. This technology is an open specification for hardware development. It means you can buy off-the-shelf products. We do 10 gigabit and 40 gigabit switches, up to 100 gigabits in the future.
We use the same technology in our products to achieve the cloud gateway aggregator, which is based on ATCA standard. Offering the first open switching solution for cloud and service aggregation these solutions are used by companies that put their own solutions on top of integrated products using our networking expertise like security and LTE and other network applications that they can deliver to their own customers.

What is your formula in such a competitive market?
Weinstein: We have a vast offering with different interfaces, size and capacity to the access part of the network that can fit different customers’ network size and topology. We deliver L2 and/or MPLS devices. Our products are interoperable with other vendor’s equipment and our solutions are fast to implement and install. So our approach is to give our customers the maximum flexibility, with fast and simple deployment — and they are cost effective to ensure they are up and running as fast as possible.

Why is MPLS so important an element of your products?
Weinstein: Carrier Ethernet over Ethernet provides a good solution but has some limitations with MPLS to the edge of the network our customers gets larger scalability — required in today’s growing services market, improved network efficiency allowing them to add value to their existing core network without loading the expensive core resources.
Our approach to using MPLS to the edge allows our customers to take some of the “smartness” from the expensive backbone to the access and to sell service-level agreements and differentiated services to their own customers. By supporting both Ethernet and MPLS we future-proof our customers’ network allowing them to decide how deep and at what point of time they will converge their network from Ethernet to MPLS without any expensive additional software licenses.
Not many vendors have the ability to do MPLS all the way to the edge of the network. This is a very cost-effective way to leverage their infrastructure while adding new services and capabilities and it gives them a fast return on their investment. Thus allowing them to offer a higher quality service to their customers with very attractive prices.

What is the future direction of Telco Systems?
Weinstein: In this economy nobody knows what the future has in store, but we know that we are solid because we know how to take advantage of new technological advancements and align them with our customers’ needs..
Our objectives is to grow our offering to continue be innovative and bring cost effective solutions to help our customers to be more competitive with the ability to give the most advanced services to the market.
The world is going to open specifications. We believe that open standards — both software (SDN, OpenFlow) and hardware (AdvanceTCA) based — allow customers to have the best-of-breed in their network. Our software and our openness are very strong, offering cutting edge yet reliable and cost effective products.
We offer very attractive ROI combined with feature-rich and simple-to-deploy solutions, and every year we launch new products to the market maintaining our technological leadership. We are innovative and we are competitive.
If the customer is looking for someone stable and solid and a partner to grow with, they can rely on Telco Systems for years to come.

What are the biggest challenges for service providers offering business services and mobile backhaul and how does Telco Systems help them solve it?
Weinstein: The demand for bandwidth and capacity is growing, and growing, and growing. And this trend probably will continue — but at the same time the price of bandwidth is shrinking.
So there is a contradiction between the demand for bandwidth and the willingness to pay for it. The providers are looking for ways to resolve this conflict.
One way is to offer a variety of differentiated services and to charge differently for each service. If there is only one service, it drives a uniform price for all. For that you need to allow them to guarantee the service level and quality of experience in their network.

What are the main changes and trends Telco Systems sees going in the networking world?
Weinstein: We think that the trend of growing demand for capacity and bandwidth will continue and the prices will continue to shrink, which means that the revenue will shrink.
This will drive the intelligence of the network from the core into the access. This also means that the one gigabyte of today is the 10 gigabytes of tomorrow, which requires the network devices in the access to be smarter with a higher capacity. We believe that giving the customer the flexibility of devices in different sizes and different interfaces with the most advanced capabilities, open architecture and cost effective is the direction.

Is the idea of a better SLA catching on with operators and with their customers?
Weinstein: Of course, people are now willing to pay more for better quality business services. You see the trend in the mobile arena already. The cloud is growing. All of the new services are growing. There is more video passing through the network, so service level and user experience is a driver for our customer’s revenue — and, by the way, we hope this will continue.

Can you give us some examples of latest success and what was the value for the customer deploying your services?
Weinstein: We are working, for example, with Telefónica in Latin America. This tier-one provider is using our demarcation and aggregation devices in their network. They provide quad-play services, and this is an example of providing a high-end next generation telecommunications network, delivering multiple services across a single fibre-based infrastructure.
We see customers in the Carrier Ethernet area, including city carriers in Europe, companies such as the Wemacom regional and city carrier serving the north-eastern part of Germany offering leased line services, DSL, wireless and phone services.
Wemacom is deploying Telco Systems’ end-to-end MPLS to the edge solution including demarcation, aggregation and EdgeGenie service management. It offers business services and mobile backhaul as well as being a carriers’ carrier. This is a great example of the trend where city carriers and utilities, as well as larger service providers, in Europe need end-to-end scalable, resilient and cost effective networks to succeed.
Another example is which is a leading locally owned and operated IT and communications service provider in Colorado. is using Telco Systems’ MPLS demarcation and aggregation products to connect hundreds of office buildings across the Denver metro area. Its service offers flexible, guaranteed bandwidth at various speeds for maximum business uptime and accessibility for new cloud-based computing applications.

What does Telco Systems see in its future?
Weinstein: We will continue to innovate and adjust ourselves to the market demand. We will work closely with our partners and customers to deliver very high quality products that will continue to help our customers be more profitable, competitive and successful — and of course this will be a win-win situation and we will grow with them.

Itzik Weinstein
CEO of Telco Systems
Itzik Weinstein brings over 25 years of management experience and a strong track record in the telecommunications and hi-tech industries. Previously Weinstein was president and CEO of ECtel, a provider of revenue management solutions to the telecommunications industry. He has also held senior positions with VocalTec, Net-Manage, KLA-Tencor, Scitex and Intel.