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Tellabs new EMEA push to start with Russia

U.S.-based telecoms network equipment provider Tellabs on Wednesday shared its plans to expand its business in Europe, the Middle East and Africa, starting in Russia.

"We are going to focus on Russia because it pays off if you break into a big market," Tarcisio Ribeiro, VP and GM, Europe, Middle East & Africa, at Tellabs, told Total Telecom.

He explained that the company took a similar approach to Latin America, where it concentrated its efforts on Brazil.

Everyone is looking at the BRIC – that is, Brazil, Russia, India and China – markets, Ribeiro noted; "Russia is very unique, even among the BRIC countries," he said.

Of the four, Russia has the smallest population at around 150 million, but the largest landmass, creating some interesting challenges for telecoms operators there. In addition, there are differences, compared with the rest of Europe, in terms of language and culture.

"You need the locals there," in order to do business successfully, Ribeiro said. "We added more people [in Russia]", a combination of direct and channel sales, he added.

Mobile operators in Russia face the same basic problem as operators everywhere: data traffic is growing fast, necessitating investment in the network, but this growth is not echoed in revenue terms. However, this issue is compounded by the country's geography.

"Their transport costs are going to be even higher," said Ribeiro. "Our solutions greatly decrease the cost of transporting data," by enabling operators to manage the traffic on their networks.

All operators, but particularly in Russia, are required to offer services in unprofitable, remote markets because of the demand for ubiquitous coverage and due to regulatory pressure. Tellabs' traffic management solutions make these locations less problematic.

"Hopefully [the operators] will make a profit... or at least limit their losses," Ribeiro said.

Tellabs' renewed European push will also see it concentrate its efforts on working with the continent's multinational telecoms operators.

"We are going to be focusing on them," Ribeiro said, as a way of building presence.

The company already has some traction in the LTE space in Europe, providing the wireless backhaul for Netcom, TeliaSonera's Norwegian subsidiary, and it aims to build on this.

"We already have incumbency on 3G," and took into account the migration to the next generation, Ribeiro said.

Источник: Total Telecom

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