Service Router Brochure

6 Alcatel-Lucent 7750 Service Router
An improved regulatory environment and
the clear potential for incremental revenue
have convinced many incumbent service
providers to rapidly make considerable
investments in new service delivery
infrastructures. By adding video, voice and
managed data services to their existing high-
speed data and Internet service lineups,
service providers can improve their
competitive position in the market.
All service providers competing in this
market are faced with the challenging task of
offering a compelling value proposition for
their service offerings in order to achieve and
maintain a high average revenue per user
(ARPU) and to sustain the long-term
profitability of their services (see Figure 2).
For service providers who successfully meet
this challenge, benefits will include the
ability to:
• Successfully sell new, higher value services
to their established customer base
• Leverage their brand equity to offer high-
margin bundles and minimize churn
• Progressively build their service
infrastructures around profitability models,
as opposed to network or infrastructure
constraints
• Consolidate multiple specialized networks
into a cost-optimized and efficient service
infrastructure that will achieve economies
of scale and maximize the profitability of
services
200
Local
ARPU (in U.S. Dollars)
150
100
50
0
Voice
Only
Voice
and Data
Voice,
Video
and Data
Long Distance
Broadband
Basic Video
Digital Video
Premium Video
VoD
DVR
HDTV
Source: The Yankee Group, 2004
The Profitability Factor
Figure 2 - Projected ARPU for Various Triple-Play Services