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5Alcatel-Lucent 7342 ISAM FTTU
Lower Operational Costs
Increasing revenue from new
services is only part of the value
offered by the Alcatel-Lucent 7342
ISAM FTTU solution. Service
providers are beginning to document
the operational savings achieved
with optical access net works. By
using passive elements, the fiber-
based Alcatel-Lucent 7342 ISAM
FTTU solution delivers cost savings
that can result in between 40 and
60 percent lower labor expenses
compared with using existing
copper networks. These savings
are achieved in reduced subscriber
contact associated with service
orders, trouble reporting, outside
plant operations, CO oper ations,
and network operations. As shown
in Figure 2, financial analysts see
the opportunity to reduce longer
term operating expenses with
capital investment in FTTU.
The high degree of integration and the passive nature
of the outside plant used in the Alcatel-Lucent 7342
ISAM FTTU solution greatly simplify network opera -
tions. Your service provisioning can be largely automated
because the network is designed to support a spectrum
of services from day one, which is not the case in today’s
copper networks. Services can be initiated and termi -
nated by your subscribers, saving labor costs that can be
used for other aspects of customer care, such as improv -
ing customer loyalty. In addition, because multiple
services are provided via a single network, customer care
can be much more effective and offer more up-selling
opportunities. This also decreases your churn, cutting
back on marketing costs for individual services and
order generation.
Retained
9%
Video
18%
HSD
28%
Op. Exp.
Savings
45%
Source: ARMIS database and Bernstein Analysis
Figure 2. Incremental EBITDA from FTTU Build