Expert View

Acterna repositions itself as a test and management player

Pradeep Chakraborty

Acterna India is definitely changing with the times by repositioning itself from a test and measurement player to a test and management player. It feels that network management can well become a broader vision since, to take care of the management part of the solutions, it is already providing the equivalent of the management aspect for such solutions. The Indian arm of Acterna has been performing admirably as well, registering a growth rate of 80 percent quarter over quarter.

Convergence Plus caught up with Vishnu Goel, managing director, India and director, South Asia Pacific, Acterna India, to find out more about the paradigm shift within Acterna, its key differentiators and the future of the T&M industry. Excerpts from an interview.

CP: How has been the performance of Acterna's Indian operations this year?

Vishnu Goel: We have done remarkably well this year. The Indian unit has been growing at the rate of 80 percent quarter over quarter. We have been able to achieve a definite shift, inspite of the staid global conditions.

CP: Has there been a marked paradigm shift in the T&M scenario?

Vishnu Goel: So far, we have not been able to communicate the importance of T&M to network operators, designers and network equipment manufacturers (NEMs). These are the three major markets for us. However, all of that is now changing.

There is a marked paradigm shift in the T&M scenario within Acterna. We have repositioned ourselves from providing test and measurement products to providing test and management solutions. Most of the T&M players are only pushing boxes. Prices have become a bottomless-pit in this country. If you are only concentrating on selling boxes, you may not be able to do the management part. We want to address the maximum layers of TMN in the area of telecom networks.

CP: What actually necessitated the paradigm shift among suppliers of T&M equipment -- e.g., falling prices, low replacement orders, industry downturn, and why?

Vishnu Goel: It is really a combination of factors. Overall, it was the very depressed market conditions post 9/11 situation and downsizing in telecom companies, resulting in total panic and severe price-cutting. We believe that we can maintain our growth in a more sustainable and capital efficient way, if we focus on test and management, and not just measurement.

CP: Are you suggesting that you would now undertake network management as well, if required?

Vishnu Goel: Network management can well become a broader vision. As a T&M player, we are doing testing -- as we have been doing all along. However, to take care of the management part of the solutions, we are providing the equivalent of the management aspect for the solutions.

CP: If T&M players were to move to network management some day, would not that pose a threat to the actual operators -- as you would have access to nearly every part of their business?

Vishnu Goel: I do not think so. The way the telco service models are evolving throughout the globe now, just boxes (hardware) or the network per se, in the extreme case, is losing its importance. One does not have to own a network to be a network operator.

Likewise, we are trying to tell our telecom customers that they do not have to buy or own the T&M to avail of the services that T&M will ultimately provide them. It is a bit hard to drive this concept, but we are getting better there.

CP: What are the specific services related management that must be provided on the network?

Vishnu Goel: Those would be building, operating and metering. We are now involved in every phase of the network rollout. We are involved in all the layers -- from physical right up to applications. We want to assist all the telecom companies (whether operator or enterprise) through the testing solutions made for conformance as well as performance.

CP: What has been the compelling need to adopt such a stance?

Vishnu Goel: We have taken such a stance to reposition ourselves as a test and management player. To give you an example, Tellabs has rolled out an optical network for the Power Grid Corporation of India. We are providing all of the services required for logistics, monitoring the sites, integrating the network with the PSTN, fiber characterization, synchronization, etc.

CP: Would not the operators need to make a paradigm shift in their ways of working as well?

Vishnu Goel: Yes, the operators need to make a paradigm shift as well. As an example, we can show them that if they do not invest in areas such as fiber characterization, the quality of service (QoS) or the signal would be lousy. The operators would never be sure as to -- a) whether the signal is good and b) whether the network would be able to take on the load of broadband. If we were to do fiber characterization and give our recommendations, the assets would be productive. Even our testing and auditing will be as per the ITU-T standards.

CP: Would networks be able to achieve 99.99999 type of connectivity?

Vishnu Goel: First, we have to achieve significant QoS before achieving pentanine or 99.99999 type of network connectivity. Hence, QoS is one area we would like to test and manage. We are already providing services in areas such as fiber characterization, point-of-interface testing with the PSTN, synchronization, etc. We want to expand and grow this approach. Achieving a high-level of end-to-end QoS and interconnectivities is really a combination of the NMS and CRM processes.

CP: Are there any other differentiators from Acterna's perspective?

Vishnu Goel: We also have a unique fiber test-related facility. Here, we undertake equipment repairing and calibration -- at every phase and network strategy. Next for transport testing, you need automatic testing. We are providing that as well. In transport, we also provide IP-related measurement and management. Two types of tests are involved within VoIP -- conformance testing for different layers and performance testing.

Next, we have also set up a facility here for addressing cable TV networks. Almost 80 percent of our business in Japan is in the cable TV networks. We would like to see our involvement with this industry to grow here as well.

CP: Regarding the facility for cable TV networks, who would be the users of your T&M services? Some operators may not be big enough to afford such services.

Vishnu Goel: The irony in the cable TV market is that even the so-called big operators are not sensitized enough on QoS as the weapon for productivity and growth. We need to really work hard in this segment.

CP: Has there been some decision to manufacture from India? If not, why?

Vishnu Goel: Currently, we do not have plans to manufacture in India. However, we will not rule out in any of the South Asia Pacific or SAP countries. We have a modest beginning -- going forward.

CP: What does the future hold for Acterna?

Vishnu Goel: Acterna's position globally is well entrenched. We have unique advantages in certain special product strengths and solutions built around our global alliances and us. We believe we are participating in the right markets and we can grow in a capital efficient manner.

CP: How do you see the T&M industry developing over the next four to five years?

Vishnu Goel: The T&M industry in India and in the region needs to transform appreciably. Their positioning needs to move away from the engineer's desk to the CFO's chamber in the client work place. The telecom industry in particular will then recognize the importance of T&M and the two will benefit each other by mutual leverage.