T&M: "Instruments with multiple test capabilities will rule soon"

What are the new challenges for the T&M industry in the rapidly
changing telecom scenario?

Two major technology trends are visible. One, the communications network
today comprises a combination of legacy and next generation equipment with a
variety of underlying technologies and protocols. Added to this challenge,
telecom and cable network operators are now migrating to IP network backbones,
which are more cost effective.

Two, the competition is intense and service providers are rapidly expanding
into each other's markets in an effort to lock in the end user and increase
their revenue streams. Incumbents, for example, are expanding from their core
voice business to offer high-speed data and, in some markets, to extend fiber to
the premise that will enable them to offer voice, data, and video over the same
line. Wireless service providers are encroaching on the incumbent phone
companies' voice and data services business. All are racing to deliver triple
play-an all-in-one package of voice, broadband, and video services. Network
T&M instruments, systems, software and services are key enablers here.

What are the new features in your T&M offerings?

Our focus is to deliver instruments, systems, and services that support the
efficient deployment and maintenance of IP networks and high-growth services
such as VoIP, gigabit Ethernet, new SDH/SONET, FTTx, and in the cable market-cable
modem and MPEG. In fiscal year 2004, we invested nearly $50 million in R&D
and introduced new products and enhancements.

Our communications test solutions are designed to address three critical
needs of today's network operator: support operators' goal of quickly and
efficiently deploying advanced new communications services, such as VoIP and
broadband Internet access; enable reduced operating and capital expenses; and
improve service reliability for operators' customers.

Also, network operators are increasingly looking for single test instruments
with multiple test capabilities. Acterna's HST platform is capable of
providing installation and maintenance support for both legacy and advanced
technologies, such as T/E-carrier, DSL, frame relay, and VoIP services. The
ability to deliver modular, multifunction test platforms is becoming
increasingly important in our industry.

Seamless interoperability among networks (GSM, CDMA, GPRS, EDGE, etc) is
critical for service performance. What do you plan to do to address this?

For wireless network interoperability testing diversity is paramount, but
diversity must not translate to 'expensive.' Combining test capabilities in
one tester is what operators are seeking. The 8630 telecom protocol analyzer, a
modular, portable instrument, is designed for operation and maintenance teams
responsible for optimizing and troubleshooting mobile networks, and also for
labs performing integration and inter-working testing. In fact, we recently
closed a sale of the product to a major telecommunications manufacturer in China
that constitutes the company's largest order for UMTS test gear to date. In
addition, the 8630 was selected for its capabilities for system integration and
commissioning of 2/2.5/3G (UMTS) radio access networks (RANs) in China and for
global export projects. Specifically, the 8630 product was chosen for features
such as high-speed signaling link (HSL) and local presence for on-site support
in all Asian metropolitan areas.

What should service providers do to tackle QoS-related issues? How much
investment should ideally go into T&M?

T&M plays a critical role in ensuring quality service and reducing
customer churn for network operators and is particularly important with new
technologies like VoIP, ready for deployment. End users have become accustomed
to virtually flawless quality and reliability for voice services. Network
operators usually spend about one percent of their total capital budget on test
and measurement. Intense competition among network operators will playing an
important positive role in the direction in which the T&M industry is
headed.

Given TRAI's recent recommendations, do you think that there will be a
convergence of communications and broadcasting T&M equipment?

This will happen. Already, our DTS family of instruments has a GigE data
infrastructure interface. It is able to test MPEG streams over a GigE transport
that encompasses both data and VoIP. Also, the HST suite-historically a
telecommunications testing suite-is being enhanced to include a video over IP
module, and will have the ability to test video over DSL. In addition, our cable
networks division developed an architecture to test the deployment of both data
and video in service providers' fiber-to-the-premises initiatives.

Deepak Kumar