BT slowing down NGN build: Will Sonus take a hit?

BT says it is slowing down its nearly $15 billion 21CN next generation network (NGN) project. One analyst is suggesting that Sonus Networks might take a financial hit as BT rethinks its plans.

In a research note issued by Jefferies & Company, analyst George Notter points out that Sonus had been brought into BT's plans in late 2007 to provide an Access Gateway Controller Function (AGCF) to provide the interaction between core IP and access networks. However, Sonus may be left out in the cold now, as BT has found that its replacement network design is too expensive and has either suspended or halted the conversion project.

BT says the pace of change has slowed and one converged service combining voice and broadband has been dropped because the price was too high for BT Wholesale's service provider customers. However, BT has just completed its construction of its new IP core and transmission networks and will continue to roll out further ADSL2+ broadband services and Ethernet service nodes in 2009.

More information might be available on Tuesday, May 5, when Sonus announces numbers for the quarter.

For more:
- Light Reading Europe reports on the BT retreat. Post

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