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U.S. telecom giant  AT&T Inc. (T - Analyst Report) is moving ahead with plans to introduce its Enhanced Control, Orchestration, Management and Policy (ECOMP) virtualization platform in the open source industry in the first quarter of 2017. In relation to this, the company announced that it will release all 8.5 million lines of code for ECOMP. AT&T further claims that it has plans to standardize ECOMP as one of the best automated platforms for managing virtual network functions and other software-centric network operations in the telecom industry.

Earlier in Sep 2016, AT&T and French telecom Orange S.A. (ORAN - Analyst Report) had teamed up on open source initiatives in order to accelerate the standardization of software-defined networking (SDN) and network function virtualization (NFV). In relation to this, AT&T declared Orange as its first telecom partner to test its open-source Enhanced Control, Orchestration, Management, and Policy (ECOMP) platform.

The main purpose of the trial was to create and manage a software-defined network so that it can be easily accessed by cloud developers and other operators. Apart from this, both the companies aim to simplify technological integration, increase operational efficiency and cut down expenditures. This assessment of ECOMP was first done in a lab environment followed by a field trial as part of its On-Demand Networks program.

Meanwhile, AT&T also moved ahead to release ECOMP as an open source software in collaboration with the Linux Foundation.


ECOMP is the software-defined platform developed by AT&T to power its virtualized network. It allows cloud developers to create services and help service providers and businesses better control network services, add features and cut down on operational costs. Thus, ECOMP is likely to fulfill consumer interests through improved network adaptability, better scales and ability to meet diverse needs of its clients.

Growth Prospects

The main purpose behind open sourcing ECOMP is to operate the industry through a common approach of VNF/SDN functioning with a single SDN-based network cloud. This launch should help AT&T attain its software-centric objective to support the escalating demand for data traffic transmission on AT&T’s wireless networks, which has been exceeding 150,000% between 2007 and 2015. AT&T claims that ECOMP is best suited to deal with technological and wireless problems faced by service providers around the world. Moreover, it allows the automation of service delivery, service assurance, performance management, fault management and SDN tasks. 

AT&T aims to virtualize 75% of its network by 2020 through ECOMP. The company has virtualized 5.7% of its network in 2015. It further intends to transfer 30% of its applications to cloud by the end of 2016.

Recent Developments

In order to cope up with the dynamic world where hybrid cloud and IT services are utilized to meet business requirements, AT&T recently announced that it is entering into partnership with International Business Machines Corporation (IBM - Analyst Report) and Amazon Web Services Inc., a subsidiary of Inc. (AMZN - Analyst Report) .

AT&T also declared a carriage deal with Viacom Inc. (VIAB - Analyst Report) for its DirecTV Now, under which Viacom will broadcast 15 of its channels on AT&T’s DirecTV Now. Some of the channels covered by the deal include Nickelodeon, Comedy Central, MTV, VH1, Spike, BET, CMT, TV Land, Nick at Nite, Nick Jr. and Logo.

AT&T currently has a Zacks Rank #4 (Sell). You can seethe complete list of today’s Zacks #1 Rank stocks here.

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