The economics of using the Tellabs 1000 new IP-POTS card for TDM switch collapse

by | Sep 19, 2019 | Blog

Over the past several months, we’ve enjoyed speaking with service providers about using the Tellabs 1000 MSAP’s new IP-POTS VoIP card for TDM switch collapse and replacement network transformation projects. In a collaboration with one major North American network operator, we constructed a business case around a typical TDM switch collapse project that we’d like to share.

Based on this study, the ideal target offices size is in the <1000 lines range, which represents approximately 40% of a typical telco service provider network. This is where you find TDM switch equipment reliability is decreasing, while the maintenance and replacement costs are increasing. It is also common that the RTU fees continue to be paid on the outdated and manufacture discontinued TDM switches. Furthermore, with roughly 5-7% POTS line loss annually, the per line costs is rising 10-15% per year.

It is in these target offices that the new IP-POTS VoIP card network modernization solution shines. Existing Tellabs 1000 MSAP, with the GbE226 or GbE222 cards, can provide a graceful migration to all IP transport and core network, and the IP-POTS card delivers reduction in VoIP implementation costs by eliminating expensive media gateways. This is all made possible because the Tellabs 1000 continues to support specials capability (SS7 and E911) in addition to performing the SIP conversion.

The economic analysis of the above scenario reveals that T1000 equipment, and services cost, about 1.5x the annual TDM switch operational expenses (detailed below), resulting in a 2 to 3-year payback period.

Service Provider operational expense from on-going TDM switch operation

To get more information on this topic, you can watch a replay of our “Tellabs 1000 MSAP Solution for TDM Switch Collapse“ webinar and download the slides by visiting our webcast landing page.

 

John Hoover

John Hoover

Marketing Director

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