Further evidence of the wholesale carrier oppty

Telefonica is an Infinera customer.

Today Telefonica provided further details surrounding a submarine cable deployment that links Rio De Janeiro and Fortaleza (Brazil), with San Juan (Puerto Rico) and Virginia Beach (US). They announced they intend to open the cable deployment (called BRUSA) for third party usage.

http://www.capacitymedia.com/Article/3537521/News/Exclusive-…

BRUSA, which will become part of Telefónica’s recently created global infrastructure company, Telxius, will support ultrafast transmission capacity and to increase end-to-end connectivity and the availability of ultra high-speed broadband services.

Revilla adds: “We will be opening the cable to supply the industry with relevant capacity earmarked for commercialisation with third parties, as well as serving the internal needs of the Telefónica Group.”

Revilla has informed [us] that Telefónica had been planning BRUSA for more than a year: “We have been monitoring traffic evolution and market opportunities to establish the right moment to release it. As an important service provider in the region we are always observing traffic trends.”

Telefónica has already established infrastructure across the Americas, with the deployments of the SAM-1 cable (25,000km) and its latest, the Pacific Caribbean Cable System (PCCS). “As we see these trends continue to grow rapidly and with the recent acquisition of GVT by Telefónica, we determined it was the appropriate time to deploy additional infrastructure, as such, we committed the internal resources last year to complete the Supply Agreement and launch construction, ,” Revilla added.

“This was a watershed moment for Telefónica and the group involved in the project."

Translation: Realizing what they had achieved in terms of raw speed and capacity, they are going to leverage their investment and resell bandwidth and network services as an enterprise carrier.

Telefonica and Infinera published a white paper on the topic describing their NaaS (Network as a Service) capability last August.

https://www.infinera.com/wp-content/uploads/2015/08/Infinera…

This exhibit demonstrates how Telefonica rapidly integrated Infinera’s programmable Intelligent Transport Network and their IP/MPLS layer together into a multi-layer IETF-based Application Based Network Operations (ABNO) controller, leveraging Infinera’s SDN Open Transport Switch (OTS) along with standardized protocols and controller components.

The motivation behind this exhibit is to show a proof-of-concept of an ABNO architecture for facilitating Network-asa-Service (NaaS) in a multi-vendor, multi-layer environment. Conceptually, this capability could be offered to automate the delivery of bandwidth services in real-time based on end-customer requests, eliminating the typical OpEx a carrier would generally incur when employing manual processes and workflows. This dynamic capability can also enable carriers to rapidly develop new innovative service capabilities, free from the constraints of proprietary network operating systems and traditional management systems.

Want more on NaaS? Infinera published another whitepaper about NaaS on their site just four days ago. After a successful case study with Telefonica, I think they are aggressively going after the NaaS market, and letting their customers know in no uncertain terms that they can turn their investment into a recurring revenue stream.

Here is a link to that whitepaper:

https://www.infinera.com/wp-content/uploads/2016/03/WP-NAAS_…

Best,
–Kevin

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