Writing in the excellent industry newsletter Telemanagement, published by the Angus Telemanagement Group Inc. of Ajax, Ont., John Riddell reports that Bell Canada is keen to phase out all Frame Relay and Asynchronous Transfer Mode (ATM) services over the next decade. No new Frame Relay or ATM contracts are being signed although Bell says it is honouring all existing contracts.
Riddell, reporting a conversation with Paul Rowe, Bell's VP Enterprise Marketing, said Bell installed 88 Frame Relay endpoints on corporate networks in 2003. In the first half of 2004, Bell has installed two.
Rowe says the number of IP endpoints is up 40 per cent year-over-year; Ethernet is growing in double digits; while ATM/Frame Relay declined by one per cent.
Bell wants to do this to save money. CEO Michael Sabia has said that if Bell can put all its networking services on an IP network, it stands to save 20 to 25 per cent a year in operating costs.
Bell says its corporate customers, too, will save money, and enjoy more secure, flexible and simple service.
Lots of international carriers are moving to replace the ATM networks but Bell is a bit ahead of the curve in this regard, Riddell reports.
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Gemini Award-winning reporter David Akin is the National Affairs Correspondent for Canwest News Service and is based at the CNS Parliamentary Bureau in Ottawa, Ontario, Canada.
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