In hard economic times, survival is often more top of mind than opportunity. Yet ensuring viability in the short term does not preclude building strategically for the future. Innovative companies will position themselves to emerge with strength from the current downturn. Economic recovery and cost transformation are, together, a three-part proposition involving the establishment of high-leverage networks, non-linear OPEX reductions and strategic investment. This paper is concerned primarily with the last of these. Drawing on decades of experience in network and IT solutions, and deeply familiar with the industry’s business challenges and drivers, Alcatel-Lucent has developed an approach to help operators reduce costs today while readying their networks, services and business models for effective competition tomorrow.