Alcatel identifies three user trends that are shifting the industry to offer more user-centric services.

The first is increasing demand for multimedia services, especially video.Both consumers and businesses want more than just basic voice and data services. There is huge appetite for video and Alcatel estimates the number of IPTV (Internet protocol television) users will increase from 2.6 million today to up to 100 million by 2010.

In the Asia-Pacific region IPTV users are expected to grow from 900,000 to 16.5 million.

The second is the demand to receive the same services on different devices. The increased mobility of users is driving demand for converged services.

And the last is awareness of price.

Competition in communications has increased users' price consciousness and the need for providers to offer new services to differentiate them from their competitors.

This shift towards offering user-centric services is driving operators to transform their services, business models and networks, Reinaudo said.

Existing networks are not designed to offer services like IPTV at competitive rates, he added.

Emerging operators, who are actively building their networks, also have to embrace these changes, as they cannot afford to alter their networks later.

IP (Internet protocol) is at the heart of the network transformation and its increasing take-up is a significant milestone on the road to a communications revolution.

Reinaudo said IP was a trump card for operators in the race to deliver better services and increased profits.

In October 2004, Alcatel was selected by AT&T (then SBC) as the prime integrator in a contract worth US$1.7 billion (Bt66 billion) to transform its network to deliver triple services to 18 million homes by 2007, Reinaudo said.

Alcatel claims Asia-Pacific operators are showing interest in similar network transformation options.

Reinaudo said: "Every operator faces differing challenges and starting points but it is clear that network transformation is a global trend, which is changing our relationship with operators.

"We are now moving beyond the traditional vendor relationship. This new partnership model is paying off."

Alcatel has been working with Telecom New Zealand to help upgrade its network to enable it to provide a wide range of services, including Next-Generation Voice and One Office, an all IP-based VPN (virtual private network) for the enterprise market.