Service provider funk is good news for Cisco

No need to fear, Cisco is here - that appeared to be the crux of Cisco's message to service providers at its C-Space 2008 analyst event focused on its service provider strategy for European and merging markets. According to a report by U.K.-based market researcher Ovum, Cisco believes that service providers could see revenue stagnation unless they beef up their strategies against "over-the-top players which will leverage their brand to grab an increasing share of market channels and new revenue streams." Ovum adds: "Cisco's sales pitch to telcos is that they need to get to grips with both the good [new revenue opportunities] and dark sides of video [costs]. Cisco emphasises the role of network transformation in tackling the dark side, and in laying the foundations to exploit the good."

Ovum concludes: "Cisco sees a good opportunity in the shape of OTT and content players that are building out their own infrastructure to sell direct to the consumer. Telcos need to get their own house in order if they are going to be ready to react to this new and increasing threat. In this Cisco also believes that it is well placed to help the telco, meaning that everyone is a winner - especially Cisco."

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