Operators have been urged to strike the right balance between profitable growth and providing good quality services by Alcatel-Lucent (AL) chief executive officer, Michel Combes.
The CEO made his comments during a keynote speech at the Futurecom 2013 convention in Rio de Janeiro.
Combes highlighted the France-based vendor's own business model, the Shift Plan, which is designed to transform it into a specialist in internet protocol (IP) networking and ultra-broadband access. The move is designed to support operators as they launch next-generation fixed and mobile access services and adopt IP and cloud-based technologies.
Speaking to delegates at Futurecom - aimed at the telecommunications, IT and internet sector - Combes said: "I believe strongly that our industry must develop a business model that enables operators to both profitably expand the capacity of their networks and deliver the quality of services and experience that users expect.
"Throughout the world operators and service providers are proactively seeking technologies to help them balance the need for capacity and delivering high quality services with protecting their own balance sheets."
Within two years, 85 percent of AL's total investment in research and development would be in IP networking and ultra-broadband access, according to Combes.
He added: "This is a strategic decision to become a technology vendor for the marketplace of tomorrow, a market populated by customers who themselves are moving to more efficient and more profitable business models, adopting new technologies like cloud, SDN [software defined networking] and NFV [network functions virtualization] in the process."
In Europe, SSE Telecoms selected IP networking technology from A-L to extend its network coverage across the UK. The deal will see the company providing SSE with enhanced Ethernet and bandwidth capabilities that will bring a faster service and lower costs.
The vendor has also won a deal to help Belgium-based cable broadband provider Telenet meet the growing video and data demands of its customers by providing what will be the world's most powerful IP core router.