Q
adapt existing networks to meet these new challenges is generating innovations and big business opportunities in a more competitive
Are business conditions improving or getting worse, and are you optimistic or pessimistic about the future?
EXECUTIVE A
FORUM Georges Krebs COO, Alcatel Submarine Networks Georges Krebs started his career with France Telecom participating in the installation and maintenance activities of the cableship fleet. He was also in charge of managing new projects for the company such as the TAT 8 and TAT 9 projects. He joined Alcatel in 1988 as Engineering Manager for Alcatel TCC in Australia and was later promoted to Vice President of the Asia Pacific region, responsible for the marketing of submarine cable systems in that region and based in Singapore. He returned to France in 1997 as Line and Marine Operations Director of Alcatel Submarine Networks. In 2002, he was in charge of the Sales & Projects Department within ASN. Since 2003, he has been Chief Operation Officer.
After three difficult years, business conditions are now stabilizing. The business conditions vary significantly from one telecom segment to another. Some segments such as mobile telephony, broadband ADSL or IP networking, are enjoying solid growth whilst other segments, such as optical networking remain cautious even if some more positive signs have recently appeared. I am optimistic about the future because the use of telecommunications services is growing very rapidly. The main drivers of this growth can be synthesized in: z The growth of mobile services is very solid in all countries, especially developing countries where the flexibility of mobile networks is helping to increase very rapidly phone penetration rates; z Broadband internet is picking up in several developed countries and it appears to become a fundamental platform of services that is shaping our future way of life; broadband penetration rates are still very low in most countries, thus providing an enormous business potential; z The convergence of services (broadband internet + video on demand + voice) is becoming a significant reality, increasing drastically the competition between incumbent operators and cable TV and internet providers. The need to develop and
environment. If incumbent operators don’t adapt, they may simply disappear. These are some of the reasons for being optimistic about the long term prospect of the telecommunications sector.
Q
What do you see as the short term and long term health of the international telecoms industry?
A
The growth factors listed above apply to the national telecommunications industries primarily. Of course, the phone penetration and broadband Internet growth will have a positive impact on the international telecommunications as well, but the size of this impact will depend on economical and cultural factors. Some of these factors can be identified with: z Globalization - a key trend, together with the growing penetration of the English language as an international communication tool; z Growing international trade; z All forms of delocalisation and international division of work; z Population migrations all around the world; z Internationalization of sporting and cultural events; z Networking of all sorts (Research Institutes, Universities, Cultural Centers, etc…)
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