Deutsche Telekom's long-awaited move to an all-IP-core network is likely to put further political pressure on the German incumbent's new management team, according to local analysts. Under an agreement reached in 4Q06, IBM is to supply the servers and software required to migrate the operator to an all-IP-core network. There is no timescale for the rollout, but once it is complete, analysts say that running the new network is likely to require only 25-50% of its current workforce. Deutsche Telekom has been trying to reduce its starring levels for several years, and NGN-related job cuts will add to what is already a very slow and painful process, says Dan Bieler of the consultancy IDC. Any large-scale redundancies would encounter strong opposition from Germany's powerful unions, he says(7M,4Oct,2005). Bieler expects migration to take several years, so "there should be time for Deutsche Telekom to sit out some of the problems, but it can't sit out all of them".
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