But the partner added that a channel play with VCAP probably wouldn't work because Verizon ultimately might determine that it could perform field implementation and service without the assistance of a solution provider.
Deep discounts for equipment in solutions sold by carriers aren't new, according to Tony Ferrigno, vice president of sales and strategy at Ciber, an Edison, N.J.-based solution provider. "When Cisco [Systems] did this with Sprint, MCI and others, [service providers] sold the equipment at ridiculous prices, even lower than we can buy," he said.
AT&T offers several VCAP-like programs that allow certain customers to aggregate their total spending to receive discounts and rewards, an AT&T spokesman said in an e-mail.
Though networking vendors such as Cisco and Juniper have grappled with such solution provider/service provider conflict for some time, ACR's experience is that it's getting worse among carriers, Grillo said, adding that he's sure he has gone up against VCAP in other potential deals.
"We're seeing an increase in this kind of activity. Customers tell us that we're 'X' amount [higher on a bid], and there's just no way we could be without something else going on," Grillo said. "These are registered deals where we're selling below the cost of what everybody else should be selling at. So unless [service providers] are selling at a loss or break-even at best, they shouldn't be competing."
Subsea cable alternatives can provide a level of comfort for those concerned about disruptions. Realistically, they will continue to play a small, but critical role in the short term.
Maintaining existing network infrastructures often incurs huge technical debt before newer technologies are adopted over time.
Amid ongoing regional uncertainties, telecom infrastructure in the Middle East has expand to include terrestrial low-latency network infrastructure, which offers resilience and agility in navigating political complexities without relying solely on undersea networks.
