The text on this page was automatically translated and hence may differ from the original. No rights can be derived from this translation.
In the ICT industry, there has been a long-standing trend of so-called virtualisation. This involves separating computer software from the underlying hardware. This allows hardware to be used more efficiently. Virtualising networks is a relatively new variation, enabling networks to become more flexible and manageable.
Virtualisation can have a significant impact on market dynamics and enable new business models. Furthermore, it means that the software layer in networks becomes increasingly important for telecom companies to deliver their services. Virtualisation can also affect how access is provided on connection networks.
Dialogic was tasked with researching the implications of virtualisation and what this means for the role of the government. Dialogic presented the findings of this research. The study shows that virtualisation has an impact on both horizontal and vertical relationships in the market. Hardware manufacturers will need to adapt to the evolving demand for virtualisation-based products. The importance of software is increasing, and software providers can more easily enter this market.
Competition is expected at the service level, as multiple parties can deliver certain services based on virtual infrastructure. The study further shows that new business models are possible that currently require in-depth, complex changes in the network. Direct access to network equipment will remain relevant in the coming years, despite centralised control. However, virtualisation will make it easier for infrastructure owners to open their network at a lower level. Market authorities do not need to develop specific tools or policies regarding virtualisation. The regulatory framework should provide guidance for regulators to take measures concerning both physical and virtual network components.
