Transcript Lifecycle management in activating and

Webinar
Lifecycle management in activating and managing
multiple services in next generation networks
Patrick Kelly and Mark H Mortensen
12 October 2011
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The telecommunication market is in a period of rapid change

Voice
Technology innovation:

$
Data
Time


the move to all IP networks – the next 5 years
will focus on the access and aggregation
network

LTE

device availability (smartphone, tablet
adoption) and M2M

convergence.
Service innovation:

service delivery platforms provide CSPs with
the ability to generate new sources of revenue

policy control and enforcement in the mobile
broadband.
New business models emerging:

cloud computing

M2M

video, music, and content distribution

social media.
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The end of the voice era and birth of broadband data services
requires CSPs to evolve operational support systems
Table 1a: OSS business drivers [Source: Analysys Mason, 2011]
Driver
Description
Effect
Timeframe
Competition
Multiple fixed, mobile and satellite
CSPs, as well as cable MSOs, are
competing in each market for the
same services revenue.
Managing churn will require
investments in probe, performance,
fault and service quality
management.
Developed markets in the short
term, all markets in the long term.
Growth in
subscriber
numbers in
emerging
markets
Most emerging markets are
experiencing rapid growth in the
number of mobile subscribers. This
is particularly true in China, India,
the Middle East and Africa, and
Central and Latin America.
Labour alone is not sufficient to
address fast implementation times
and service failures, so automation
required in all areas of service
assurance and service fulfilment.
Probe, fault and performance
monitoring investments now,
followed by workforce and service
management systems later.
Mobile data
services
CSPs are investing in wireless
infrastructure to deliver higher
mobile data rates. Mobile CSPs are
driving the take-up of data services
with attractive flat-rate data tariffs
and new data services.
Service quality of individual services
and bundles and user experience
management will drive business
decisions and the ability provision
and to report on service-impacting
events.
Probe system deployments are
occurring now, as are focused
service management projects for
corporate customers.
All service fulfilment sub-segments
in all time-frames.
Complex bundles require new
orchestration layer now for order
management.
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Technology migration is driving nextgen OSS deployments
today but service evolution will drive spending long term
Table 1b: OSS business drivers [Source: Analysys Mason, 2011]
Driver
Description
Effect
Timeframe
Technology
migration
Access, aggregation and core
network technologies
Migration of T1/E1 to Ethernet in the
backhaul and LTE in the RAN will
drive most strategies. IP in the core
is reaching maturity.
The transition will take 3–4 years to
complete and investment activity is
still at a early stage in all but NA
market.
Customer
experience
Information on the user and their
experience is more important than
identifying network failures because
redundancy and fail-over network
architecture are designed into most
networks.
The commodisation of telecoms
services demands that CSPs
acquire information on the user
experience to retain customers and
satisfy service-level commitments.
The complexity of systems and
business workflows has delayed
service management investments
in the short term. Spending growth
should accelerate in 2012.
People
and process
changes
Co-operation between
organisations within the CSP and
partner co-ordination.
The rate of change and willingness
to co-ordinate activities between
different departments will occur at
different rates for each CSP. In
many cases, outsourcing is used as
a catalyst for change.
Occurs slowly and acts more as an
inhibitor.
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The industry is in another cycle of technology upgrades….
LTE will have a profound impact on service innovation
Global Wireless Traffic by Generation
35,000
From 44% of traffic in 2009, 3G and 4G
networks will increase their share of total
wireless traffic to 96% by 2016.

4G devices in particular will gain massive
prominence due to their usage by high
data users. By 2016 their share of total
traffic will grow to 42%.

As a result of the growing importance of
4G, traffic carried on 3G networks will
peak in 2012 at 68% of total traffic before
declining to 54%.
100%
90%
30,000
25,000
70%
60%
20,000
50%
15,000
40%
30%
10,000
20%
5,000
10%
0
Share of traffic
80%
0%
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
Petabytes per annum

2G
% 3G
3G
% 3G+
4G
% 4G
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Technology and more flexible business models will
influence the growth of mobile services
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CSPs preparing for next generation services must prepare
to deploy or migrate systems to support:
1.
Order management and service catalogs
2.
Multi-service activation systems
3.
Service impact and subscriber level reporting in near real-time
4.
Managing operational costs as data service demand increases
5.
Leveraging network data to improve marketing and customer care business goals
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Most modern service fulfilment systems will achieve a
payback in 18 months
ROI analysis
3.000.000
2.500.000
Cashflow (USD)
2.000.000
Inflection after
~1yr – adoption
period
1.500.000
1.000.000
500.000
0
Year0
500.000
Payback is just
over 1.5yrs
Year1
Year2
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Higher order to activation completion rates.
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Lower fallout due to less human interaction.
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More efficient use of the labor pool.
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Higher customer satisfaction.
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Faster order to cash cycles.
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Rapid support of new services.
Year3
1.000.000
1.500.000
Total costs
Assumes the
licensing
flattens out
Total benefits
Cumulative running totals
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Service Fulfilment
Service Assurance
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Flow-through service activation is the goal of service
fulfilment systems
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Catalogue
Order management
Inventory/NRM
Activation
for A
NMS/EMS
for technology A
Reduce time by:

30% if manual work needed

90% for full flow-through.
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Reduce re-work by 30%.

Reduce effort by 30%.

Achieve first-time activation.
Activation
for B,C,D
NMS/EMS
for technology B
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Service fulfilment systems: challenges and evolution

Modern service fulfilment systems.

Typical service fulfilment projects.

Evolution of service fulfilment.
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Modern service fulfilment information flow
Modern service fulfilment information flow [Source: Analysys
Mason, 2011]
Customer care
CRM

Modern service fulfilment architecture blurs the
traditional OSS/BSS lines.

Customer order orchestration systems decompose
complex, multi-product orders and orchestrate the
overall order. Are usually catalogue-driven.

Sub-orders are passed to multiple service fulfilment
technology stacks for further decomposition,
management, design and assign, and activation1.
Some sub-orders go to the systems of partner
CSPs or third-party vendors.

Activation systems are directly interfaced with
customer order orchestration (or OM systems)
when a simple activation is required.

The BSS and OSS components each need data
about the products and services required to fulfil
the orders. This is usually stored in multiple
product and service catalogues, federated or
manually synchronised.
Subscriber
management
Partner CSPs,
third-party
vendors
Customer order orchestration
Catalogue
Order management
Inventory
Inventory
Activation
Activation
NMS/EMS
for technology A
NMS/EMS
for technology B
Activation
SDPs,
Service
Layer
Service
fulfilment
Engineering tools
Order management

1
Some vendors’ NMSs include much of the
functionality of service fulfilment systems for a
single technology.
Modern OM, IM or activation systems often service more than one technology, but there are usually
multiple stacks.
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Service fulfilment today


Project scope:

projects target specific service needs for new services or technologies
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2/3 buy a single service fulfilment suite from a single vendor

adding activation of additional services to existing service fulfilment systems
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some department-sized transformations and data federation projects
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pressure for larger-scale transformations to lower costs, but few projects were initiated.
Vendors consolidating, adding services:

the consolidation of service fulfilment systems continued, with several vendors acquired
by larger players, while larger players are also gaining market share organically

major ISVs continued to expand their professional services to ensure effective
implementations and increase their revenue share of projects.
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Typical service fulfilment implementation scenarios
Expansion
Initial implementation

Trigger: new service not well
supported by current OSS.

Approaches:

Trigger: product managers want
enhanced operations.

vertical: for this service,
OM + Inventory + Activation
providing full flow-through for
faster service provisioning

additional horizontal or vertical
expansion to other services.

horizontal: OM and/or inventory
transformation across services
for efficiency.

add other service provisioning
functions: OM or inventory +
activation in phased plans

add activation of other services.
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Evolution of service fulfilment: 5 year growth of 8% CAGR
Near Term

Drivers:

Drivers:

optical/packet technology
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new double-sided business offerings

fast availability of new services and
complex service bundles
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M2M mobile services

cloud computing and storage services

potential national broadband
infrastructure investment projects

renewed interest in system
convergence projects.


Long Term
desire to meet the needs of SMEs.
Technology:

integrated service fulfilment stacks

service-layer provisioning

catalogue-driven OM

federated data.

Technology:

policy management parameter
provisioning

open APIs to third parties.
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CSPs should be concerned about the high level of churn
that is likely to come with mobile broadband



CSPs need to turn their attention to churn, because
many mobile broadband customers’ contracts are
beginning to expire. Mobile broadband subscribers are
far more likely than users of other services to switch
provider.
Figure 11: Mobile Internet usage by service in the USA1
[Source: Analysys Mason, 2011]
18%
16%
At almost 16%, the proportion of US subscribers who
intend to change provider is much higher for mobile
broadband than for other services.
Percentage of subscribers

This is partly to be expected, because the barriers to
churn are lower for mobile broadband than they are for
other services because:

users do not have an associated number

users can switch their mobile broadband
provider much more quickly than their fixed
service provider.
However, some of the reasons to churn in other
services – such as to gain exclusive handsets or
access to content – are less relevant to mobile
broadband. Operators should focus on quality of
experience and price in order to retain customers.
14%
12%
10%
8%
6%
4%
2%
0%
Mobile
broadband
1
Mobile voice
Fixed
broadband
Fixed voice
Questions: “Do you intend to change your mobile broadband provider in the
next six months?”; respondents who have a mobile broadband connection; USA;
n = 246; “Do you intend to change your [fixed] Internet service provider in the next
six months?”; respondents who have a fixed broadband connection; USA;
n = 651; “Which of the following best describes your plans for your landline
telephone service in the next year?”; respondents who have a landline telephone
service; USA; n = 721; “Which of the following best describes your plans for your
mobile service in the next year?”; respondents who have a mobile voice service;
USA; n = 864.
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End to end quality of service to improve customer experience
is driving investments in performance management
Plan – baseline, measure
and threshold
Re-evaluate –
measure and
re-assess
Report and respond –
add capacity and be
proactive

Proactively detect network
performance problems before
service impact occurs.

Multi-domain management in the
core and access networks.

Improve customer satisfaction
and lower churn.

Monitor service quality by user
and application.
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Effective end to end management requires high performance, scalable
software sub-systems capable of correlating service impacting events with
individual subscribers
Figure 22: Service assurance software features by sub-segment [Source: Analysys Mason, 2011]
Service management
Customer
records
SLA
Probe systems
Active
Passive
Remote test
Impact analysis
Fault and event
management
Performance monitoring
Workforce automation
Root cause analysis
Capacity planning
Home network management
Network topology
Counter analysis
Dispatch
Discovery
Polling
ACS
DPI
End user
Mobile phone
KPI/KQI
CPE
Access network
Aggregation network
Core network
IT network
Virtualised services
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CSPs must exploit untapped resources to gain a competitive advantage
and support broader business objectives

Rich network data providing detailed IP flow and
session analysis.

Subscriber analytics based on network patterns.

Measuring historical patterns with current patterns.

Business benefits:
w
improve loyalty
w
more effective marketing campaigns
w
build a solid case for new products and
services
w
proactive alerts to improve customer
satisfaction – self care
w
predict capacity constraints.
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Lifecycle management in activating and managing multiple services in next generation networks
Authors
Patrick Kelly (Research Director) leads Analysys Mason’s Telecoms Software research
stream, which focuses on identifying the rapidly growing segments in the telecoms software
market and providing forecast and market share data on each of the 26 segments by region
and service type. He has produced research on IP next-generation service assurance, the 3G
mobile software market and customer experience management. Patrick is a frequent speaker
at industry conferences. He holds a BSc from the University of Vermont, and an MBA from
Plymouth College.
Mark H. Mortensen (Principal Analyst) is the lead analyst for Analysys Mason's Customer
Care and Service Fulfilment research programmes, which are part of the Telecoms Software
research stream. The first 20 years of Mark's career were spent at Bell Laboratories, where he
specialised in starting software products for new markets and network technologies and in the
interaction of software with the underlying network hardware. Mark was Chief Scientist of
Management Systems at Bell Labs, and has also been president of his own OSS strategy
consulting company, CMO at the inventory specialist Granite Systems, VP of Product Strategy
at Telcordia Technologies, and SVP of Marketing at a network planning software vendor. Mark
holds an MPhil and a PhD in physics from Yale University and has received two AT&T
Architecture awards for innovative software solutions.
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Patrick Kelly
[email protected]
Mark H. Mortensen
[email protected]
Analysys Mason Limited
Bush House, North West Wing
Aldwych, London WC2B 4PJ, UK
Tel: +44 (0)845 600 5244
Fax: +44 (0)20 7395 9001
www.analysysmason.com
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