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*** For immediate use October 10, 2013

  • This CPE solution will bring enormous benefits for the end customer. Its simplicity and capacity to reduce breakdowns and incidents of home equipment provides flexibility, efficient maintenance and new-service rollout capability

  • It represents a new phase of the joint strategy being implemented by the two companies for the development of innovative software- and virtualisation-based network solutions

Tokyo, Madrid and São Paulo, October 10, 2013 - NEC Corporation (NEC; TSE: 6701) and Telefónica have today announced an agreement to launch this October the first ever trial in Brazil to virtualise part of the equipment installed on a customer's premises (vCPE)*1 . Through the telecom provider's global operating business unit, Telefónica Global Resources, the CPE (Customer Premises Equipment) solution will simplify the home equipment installation process and, by default, Telefónica's broadband network access and connectivity.

Within the framework of the recent strategic partnership announced by both companies in this field, Telefónica and NEC will bring together their technological capabilities and collaborate in the development of vCPE. The solution, based on a prototype developed by Telefónica I+D, with contributions and integration by NEC, enables certain IP functions to be shifted away from the residential gateways (the equipment installed in the customer's home) towards the carrier's own network. As a result, end users will experience rapid service deployment and improved network operation and maintenance benefits. To achieve this, Telefónica and NEC will be conducting a series of field trials in Brazil, where Telefónica provides broadband access services to millions of homes and businesses with the objective of having a solution ready for deployment by July of 2014.

As demand for Telefónica's broadband access services continue to grow, the introduction of the CPE solution will notably enhance and simplify service operation and maintenance by virtualising and moving functions from the equipment installed in the customer's home to Telefónica's network.

By minimising dependence on hardware, virtualisation will bring considerable benefits both to the management of the network and to the end user. This means that network management is expected to become easier and more flexible, thereby guaranteeing greater control and security of the consumer electronics connected to the network. It will also reduce any possible incidents and breakdowns. Overall, it will speed up the deployment of new services in the home over the next few years, reduce time to market and enhance the customer's connectivity experience.

The vCPE forms part of the "NEC Telecom Carrier SDN Solutions", a portfolio of new and innovative solutions based on Software-Defined Networking (SDN) and Network Functions Virtualisation (NFV) technologies. This way, NEC combines technologies, products and services that enable the provision of solutions for the further development of the international carrier's network and business needs.

"NEC is a leader in SDN and NFV solution development, having provided the world's first commercial SDN product," said Mr Kazuya Hashimoto, Executive Vice-president, Carrier Solutions EMEA, NEC Europe. "NEC's vCPE solution provides an open and flexible networking topology that simplifies network management, proactively addresses performance and contributes towards the high availability of Telefónica's services."

"Telefónica sees the implementation of SDN and NFV technologies as a factor of our network infrastructure development strategy," said Mr Enrique Algaba, Director of Network Innovation at Telefónica I+D ? Global CTO Unit. "We expect this pilot scheme will help us prove the viability of this technology and enable us to implement rollouts in a more flexible and reliable way coupled with low operating costs."


(*1) vCPE (virtual Customer Premises Equipment): the physical equipment installed in a customer's home, possibly including the router, cable TV decoder, phone terminal, etc.

About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people worldwide. By providing a combination of products and solutions that cross-utilize the company's experience and global resources, NEC's advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society.  For more information, visit NEC at

NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. (C) 2013 NEC Corporation.

About Telefónica
Telefónica is one of the largest telecommunications companies in the world in terms of market capitalisation and number of customers. From this outstanding position in the industry, and with its mobile, fixed and broadband businesses as key growth drivers, Telefónica has focused its strategy on becoming a leading company in the digital world.

The company has a significant presence in 24 countries and a customer base that amounts to more than 317 million accesses around the world. Telefónica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy.

Telefónica Global Resources is a global operating business unit of Telefónica. Its mission is to optimise the benefits from Telefónica's scale while achieving further efficiency for the whole Company through activities such as simplification, standardization, streamlining and consolidation.

For more information about Telefónica, visit