uploads///Telecom ATT Q SDN

Why AT&T Believes Software-Defined Networking Is Effective

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Apr. 2 2018, Updated 3:25 p.m. ET

AT&T’s SDN initiatives

AT&T (T) is focusing on an SDN (software-defined networking) approach to transforming its network. SDN helps telecommunications companies such as Verizon (VZ), AT&T, T-Mobile (TMUS), and Sprint (S) reduce their expenses and provide enhanced flexibility, as this methodology requires carriers to virtualize their networks rather than spend on dedicated fixed hardware.

During the Morgan Stanley Tech, Media & Telecom Conference on February 28, 2018, John Donovan, AT&T Communications’ CEO, spoke about AT&T’s SDN initiatives. Donovan stated that AT&T was able to virtualize ~55% of its network functions by the end of 4Q17, and it aims to reach 75% by the end of 2020. He said, “That will allow us to do things in 5G [fifth-generation] that will make that happen faster and cheaper than they would otherwise, as an example.”

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AT&T’s SDN benefits

With the help of SDN elements, AT&T is looking forward to achieving rapid service delivery along with the efficient utilization of its capital. The mobile carrier continues to believe that the combination of its SDN and NFV (network function virtualization) efforts will its reduce network delivery costs and its selling, general, and administrative expenses.

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