N

Company profile
Nokia Siemens Networks NetAct and
OSS/BSS multi-vendor capabilities
Glen Ragoonanan (Senior Analyst)
February 2011

Nokia Siemens Networks NetAct and OSS/BSS multi-vendor capabilities i
© Analysys Mason Limited 2011 February 2011
Contents
Click on a heading to jump to the section.
1 Executive summary 1
2 Financials and basics 4
3 Customers and markets 12
3.1 Customer cases studies 15
China Unicom, Shanghai 15
4 Analysis 17
4.1 Strengths 17
4.2 Weaknesses 17
4.3 Threats 18
4.4 Opportunities 18
Acknowledgements 18
List of figures and tables
Figure 1.1: Nokia Siemens Networks’ NMS revenue, FY2007–2009..........................................................2
Figure 1.2: Nokia Siemens Networks’ telecoms software revenue by segment, 2009 .................................3
Figure 2.1: NSN’s OSS portfolio..................................................................................................................5
Figure 2.2: charge@once mediate example of active mediation ..................................................................9
Figure 2.3: charge@once unified functional overview...............................................................................10
Figure 2.4: Nokia Siemens Networks’ telecoms software products portfolio positioning in Analysys
Mason’s telecoms software market segmentation....................................................................11
Figure 3.1: NSN’s total telecoms software revenue by product and services, 2009...................................13
Figure 3.2: Nokia Siemens Networks’ NMS revenue by service segment, 2009............................................14
Figure 3.3: Nokia Siemens Networks’ OSS revenue by service segment, 2009 .............................................14
Figure 3.4: Nokia Siemens Networks’ NMS revenue by region, 2009 ......................................................14
Figure 3.5: Nokia Siemens Networks’ OSS revenue by region, 2009........................................................14
Table 2.1: Nokia Siemens Networks’ financials and OSS basics................................................................4
Table 2.2: Nokia Siemens Networks’ OSS solutions ..................................................................................5
Table 2.3: Nokia Siemens Networks’ NMS and OSS products ..................................................................7
Table 3.1: Significant Nokia Siemens Networks NMS/OSS customers....................................................12
Table 3.2: Nokia Siemens Networks’ M&A in the OSS segment.............................................................15

Nokia Siemens Networks NetAct and OSS/BSS multi-vendor capabilities 1
1 Executive summary
Nokia Siemens Networks (NSN) was the fourth-largest vendor of network management systems (NMS) in
2009 with estimated NMS revenues of USD606.4 million in a total NMS market of USD4.277 billion.1
In
addition, NSN was the second largest service delivery platform (SDP) vendor in 2009, owing to its strong
real-time charging platform, with estimated revenues of USD381 million of the total USD3.38 billion SDP
market.2
NSN is one of the largest network equipment manufacturers (NEMs), primarily in mobile with an
increasing fixed portfolio, building on the combined heritage of its two parent companies – Nokia and
Siemens – which merged to form NSN in 2007.
NSN’s and, before its establishment, Nokia’s and Siemens’ NMS and OSS have traditionally been mostly
proprietary, domain-specific solutions delivered as part of the vendors’ own equipment deployment
contracts. However, recent development efforts focused on transforming and extending NSN’s NMS and
OSS portfolio with more multi-vendor,3
multi-technology and service-centric management capabilities. This
overall value proposition is based on aligning operators’ network management functions much more closely
to a customer-centric business model. More streamlined, automated processes allowing services to be rolled
out and optimised more cost-effectively across multi-vendor environments are targeted by NSN’s product
portfolio to improve customer experience. NSN’s leadership in subscriber data management confirms NSN’s
product portfolio progress to address customer experience management. The multi-vendor approach
supports NSN’s overall strategic business realignment to increase its professional services revenue, which
demands multi-vendor management products and skilled resources.
NSN’s telecoms software (OSS, BSS and SDP) product development approach builds on its existing product
portfolio and responds to market trends – with NetAct at the core. ASPEN and TNMS are NSN products to
be integrated into NetAct, which operationalizes and manages IP and transport equipment from NSN,
Juniper, Tellabs and Cisco. NSN further intends to consolidate its DSL and optical network management
functions into NetAct. This indicates NSN’s strategic direction is to develop a common (multi-domain)
NMS, in addition to its multi-vendor agenda, to help communications service providers (CSPs) rationalize
their network operations. As a result, NSN’s telecoms software portfolio broadly covers critical areas of
network management, service assurance, service fulfilment, billing mediation and service delivery platforms
(with leadership particularly in real-time charging and subscriber data management) for end-to-end service
delivery and management. CSPs, as expected, identify only with the business benefits of operation and
deployment cost savings from improved process efficiencies from NSN’s products and product strategy.
NSN is a major global enterprise, with over 60 000 staff in more than 150 countries worldwide. The
company has traditionally been a relatively minor player in North America. This looks set to change with
NSN’s July 2010 announced acquisition of substantially all of Motorola’s mobile network equipment
technology assets, business and customer relationships. This transaction will significantly increase NSN’s
revenues in North America, as well as create direct sales opportunities for network equipment, NMS and
OSS into acquired Motorola CSPs. NSN’s NMS and OSS multi-vendor operational and integration
1
For an overall view of the network management systems market, see Analysys Mason’s NEMs network management systems
market share report 2009.
2
For an overall view of the service delivery platform market, see Analysys Mason’s Service delivery platform market share 2009.
3
Multi-vendor in this report refers to the ability to adapt and integrate with other vendor hardware and software, of which this capability
is available off-the-self for all standardised protocols and data format and a subset of major vendor products.

capabilities will be an asset for integrating NSN’s existing and Motorola-acquired products and technology
assets.
NSN’s NMS revenue dropped by an estimated 19% in 2009. The decrease was a reflection of the recession,
resulting in CSPs delaying planned investments in infrastructure upgrade and transformation projects.
Another factor was NSN’s strategic decision to increase its professional services business revenue, which
contributed to the lower-value product revenue. NSN’s business is approximately a 55% products-to-
45% services revenue model. NSN’s NetAct provides an umbrella network management system to support
its services business.
Figure 1.1 shows Analysys Mason’s estimate of NSN’s revenue from its sales of NMS and closely
associated services to CSPs.
Figure 1.1: Nokia Siemens Networks’ NMS revenue, FY2007–2009 [Source: Analysys Mason, 2011]
In this profile, we focus on NSN’s core NMS product, NetAct, and NSN’s multi-vendor product offerings in
other OSS and BSS areas. NSN’s strategy in the NMS and OSS market involves a focus on helping
operators to realign network and service management to make them more customer-centric, and to ensure
that business processes are more streamlined and automated around customer retention and value growth.
This involves a tight integration between network, service and customer management to ensure that OSS and
BSS can capture and process detailed customer-specific data on service usage and network performance, and
that networks can be modified and optimised to improve customers’ quality of experience and enable the
delivery of new revenue-generating services.
Figure 1.2 shows Analysys Mason’s estimated 2009 telecoms software revenue for NSN based on Analysys
Mason’s telecoms software market segmentation (detailed in Figure 2.4). NMS accounted for the majority
(58%) of NSN’s telecoms software revenue in 2009, with service delivery platform making up most of the
remainder (36%). This also represents the diversity of NSN’s telecoms software with 5% of the revenue
attributed to billing (BSS) from NSN’s charge@once mediate product.
0
100
200
300
400
500
600
700
800
FY2007 FY2008 FY2009
Revenue(USDmillion)

Figure 1.2: Nokia Siemens Networks’ telecoms software revenue by segment, 2009 [Source: Analysys
Mason, 2011]
NMS
58%
Billing
5%Service
Assurance
1%
Service Delivery
36%
Total Revenue: USD 1052 million

2 Financials and basics
Table 2.1: Nokia Siemens Networks’ financials and OSS basics [Source: Analysys Mason, 2011]
Year founded 2007
Headquarters Espoo, Finland
Company URL http://www.nokiasiemensnetworks.com/
Stock symbol N/a (consolidated Nokia subsidiary)
CEO Rajeev Suri
NMS revenue 2009 About USD606.4 million (Analysys Mason estimate)
Employees Over 60 000 (all operations, not just NMS)
Product segment(s) Billing, NMS, service assurance, service delivery platforms
Geographic focus Global
Primary products NetAct suite, Open EMS Suite (OES), Serve atOnce Suite
Key partners EMC, HP, IBM, Oracle, RADCOM, Siemens, Subex, Tektronix
Key customers Over 600 CSPs worldwide, including 75 of the top 100 by revenue (according to NSN)
NSN generated an estimated USD1.052 billion in the telecoms software market as a whole in 2009, of which
around USD606.4 million derived from NMS products and services. This made NSN the fourth-largest
vendor of NMS, with a global market share of 14%.
Of NSN’s total OSS revenue, around USD645.5 million (approximately 61%) was generated by products
and the remaining USD407.9 million by associated professional services. NSN’s business is approximately a
55% products-to-45% services revenue model. The services business is supported by NetAct as an umbrella
network management system. With respect to NSN’s business activities as a whole, the increasing emphasis
on services is a response to several market dynamics, such as an increase in the number of CSPs seeking to
outsource significant parts of their network operations, intensifying competition and pricing pressure on
equipment sales, and the need to support both legacy PSTN and NGN technologies to generate new and
sustain recurring revenues as phased migrations to all-IP networks are carried out.
The rapid growth and changes in technologies in telecoms have caused CSPs’ operations to become complex
multi-vendor environments. This has increased the demand for multi-vendor product and service
capabilities, and has led to the evolution of NSN’s telecoms software portfolio to focus on interoperability
with third-party network elements, EMS and OSS. NSN’s multi-vendor product and service proposition
targets unifying and consolidating CSPs’ network and service management systems to help smooth the
transition to all-IP networks, enhance the ability to rapidly introduce new services, and align the network
and services around a customer-centric model, while reducing opex and capex.
Figure 2.1 illustrates NSN’s broad range of telecoms software products addressing network management,
service assurance, service fulfilment and service delivery. In addition, NSN offers a wide range of software
solutions to address specific operational issues, with a focus on complex multi-vendor, multi-technology
networks and systems.

Figure 2.1: NSN’s OSS portfolio [Source: Nokia Siemens Network and Analysys Mason, 2011]
Table 2.2 below describes NSN’s OSS solutions to address CSPs’ operational pain points.
Table 2.2: Nokia Siemens Networks’ OSS solutions [Source: Analysys Mason, 2011]
Solution Details
Network Assurance Multi-vendor and multi-technology network-layer solution, offering a scalable platform that
enables centralised fault and performance management tasks for CSPs.
This solution can be delivered as a managed service either hosted or as a tailored software
solution which including alarm reduction consulting, report & rule development and packages
and systems integration.
IP Assurance Centralized global view on fault and performance data from IP domain, which supports IP
service monitoring. Logically part of Network Assurance and often used as building block in
larger network assurance cases (such as NOC consolidation). A solution built based on third-
party partner products pre-integrated with NetAct , including Advanced management
components. A modular solution approach allows easy adaptation to different operation
processes from assurance to fulfilment. Support for multiple use case such as mobile
backhauling, and core, site and inter-site connectivity.
Service level
management
Solution providing service catalog for complete service lifecycle, SLA definition and metrics.
The solution includes SLA definition for customers, third parties and internal organizations,
and provides SLA monitoring for contractual status and service delivery.
Manages and automates contractual obligations (SLA) for all customer segments and along
the service delivery chain with internal and external organizations.
Helps CSPs with challenges of increasing number of service offerings and in coping with the
high grade of manual work needed at present to handle SLA contracts and reporting.
Nokia Siemens Networks OSS portfolio
Operation support and readiness
Inventory Automation
NSNProductsNSNSolutions
Fulfillment Assurance
Network and resource management
NetAct Element
abstraction
layer
3rd party products
Broadband access
& transport
Radio access Converged core
Business support
systems
TNMS NetViewer ASPEN RC @Com iNMC SC NetManager ACI
OSSSolutions
foradjacent
markets(E-
energy,M2M)
OSSSolutions
formanaged
service
OSSSolutions
formobile
broadband
OSS
Transformation
Network inventory
Data integrity
management
Network rollout
management
NetAct Hardware
Manager
Trouble ticketing &
workflow management
Network change
management
Multivendor software
management
Event Analyzer for
automation
Core network
productivity suite
Multivendor configuration
mgmt & optimization
Call location analyses
Serve atOnce
Activation Manager
Serve atOnce
Device Manager
NetAct Optmizer
NetAct Advanced
Configurator
NetAct Configurator
NetAct Software
Manager
Service level
management
Network Assurance
IP Assurance
Serve atOnce Traffica
Serve atOnce mobile
Quality Analyzer
NetAct TraceViewer
NetAct Advanced
Monitor
NetAct Monitor
NetAct Advanced
Reporter
NetAct Reporter
NetAct Audit Trail

Solution Details
Multi-vendor
Configuration
Management. &
Optimization
This includes NetAct components such as Optimizer and Advanced Configurator. This
addresses the issues of optimizing multi-vendor mobile radio access networks and
configuring multi-vendor network environments in complex multi-vendor CSP networks.
Call Location Analyses A fast and cost efficient way to analyse the network performance in a geographical location.
This is based on NetAct TraceViewer, NetAct Optimizer and NWS RNC collector software
and related systems integration components .
Trouble ticket and
workflow management
Solution for managing processes which delivers efficient and effective resolution of network
resource and service problems. The resolution process refines service and resource fault
and performance management data, to identify the problem and root cause.
Network Change
Management
Network changes (fault corrections, new activations, re-configurations, expansions) are often
performed in silos without common co-ordination resulting in un-necessary costs and service
interruptions. This solution addresses this issue by tracking and managing network changes.
Multi-vendor Software
Management
This solution is used for managing the end-to-end deployment process of software releases
and patches, efficiently to large, complex multi-vendor, multi-technology networks. It has a
centralized software inventory functionality for providing this management.
Event Analyzer for
Automation
Event Analyzer (EvA) for Automation delivers defined and flexible automation analysis of
procedures and pre-defined operational functions. It targets optimising automated processes.
Network Inventory An end-to-end solution providing a central repository to model and record physical and
logical networks resources, and the interdependencies between them and the services
running over the network. It includes tools to support business process, such as network
planning and service fulfilment.
Data Integrity
management
Provides tools and repeatable processes to guarantee data accuracy and integrity ensuring
operational excellence for telecommunications and network service providers. Data quality
and consistency are essential within and between OSS and BSS about the "as is" state of
the network and services to guarantee correct service provisioning, design and activation, to
support customer care, and to maximise the efficiency in capacity and network planning.
Network Rollout
Management
Integrated network planning, rollout management and inventory solution enables CSPs to
manage the design, upgrade/rollout of their radio access networks providing ROI and time to
live metrics.
Table 2.3 below describes NSN’s principal EMS, NMS and OSS products which are used to deliver the
OSS solutions identified in Table 2.2.

Table 2.3: Nokia Siemens Networks’ NMS and OSS products [Source: Analysys Mason, 2011]
Product Details
NetAct Network
Management System
NetAct is NSN’s principal NMS product and the foundation of its OSS portfolio. It comprises a
suite of modular software and systems for the management of both NSN and third-party
elements and systems. It continues to evolve to be an NMS for monitoring, measuring and
configuring the network and services in multi-vendor, multi-technology environments. NetAct
software modules include:
 NetAct Advanced Monitor: a service assurance system that collects and analyses data from
fault, performance and traffic monitoring systems and other data sources; correlates it with
inventory systems, and provides drill-down capabilities for troubleshooting along with
automated fault resolution and alarm management.
 NetAct Advanced Reporter: a network management reporting system, containing user-
friendly tools for producing, scheduling, customising and viewing reports, and an IBM
COGNOS 8.4-based dashboard.
 NetAct Configurator: a multi-vendor radio network configuration management software
product, including tools for collecting, verifying, correcting, documenting and visualising
network configuration data. This has several modules: NetAct Configurator for Radio, NetAct
Configurator for Core and NetAct Advanced Configurator (provides multi-vendor configuration
capability). NSN intends to extend this product to manage transport network.
 NetAct for Core, NetAct for Radio and NetAct for Transport: these NetAct modules are
designed to provide end-to-end, multi-vendor, multi-layer element and network management,
covering most core, radio and transport network technologies. They are intended to support
convergent management of all voice/data and fixed/mobile services, improve process
automation, provide more effective provisioning and improve error analysis. These NetAct
products are built on the same modular architecture used for the Open EMS Suite (see
below), designed to reduce integration costs and share data between different systems.
 NetAct Global Reporter: a centralised data warehouse and reporting product designed to
collect, store and analyse network and service-related performance, usage and quality data.
 NetAct Monitor: a multi-vendor, multi-technology alarm monitoring system containing root-
cause analysis capabilities for fault resolution.
 NetAct Optimizer: an automated tool for optimising and visualising radio network quality and
performance. It provides automated, measurement based optimisation of GSM, WCDMA and
LTE networks for mobile vendors. Optimizer already supports the main mobile vendors of
Ericsson 2G/3G, Huawei 2G/3G and all NSN. Motorola, Alcatel-Lucent and ZTE networks can
be handled on an as needed basis. In multi-vendor network cases Optimizer retrieves the
data from other vendor OSS system or the preferred tools used by the CSP.
 NetAct Service Quality Manager (SQM): a service-monitoring tool which allows monitoring
from the customer’s perspective and automates the troubleshooting process. It correlates
various data sources to assess the status and quality of defined services. It also evaluates the
service impact of network faults and provides root cause information for detected service
problems.
 NetAct TraceViewer: provides a centralized subscriber and equipment trace for 2G, 3G and
PaCo/GPRS technologies for analysing customer complaints and troubleshooting, checking
radio coverage, analysing service availability, detecting dropped calls and malfunctioning
mobile terminals, and measuring speed of 2G/3G against service level agreement metrics.
AccessIntegrator
Ethernet (ACI-E)
ACI-E is an element management system for NSN’s wireline access networks. It provides full ITU-
T FCAPS (fault, configuration, accounting, performance and security) management functionality
for all NSN fixed access network technologies including Carrier Ethernet, DSL (IP DSLAM,
MSAN), IP (switches), optical (GPON) and CPEs.
ASPEN ASPEN (Advanced Service Management Platform for Carrier Ethernet Networks) is designed to
manage all A-series and NSN-Juniper Carrier Ethernet Transport network elements to deliver the
most reliable, scalable and cost-effective Carrier Ethernet transport. ASPEN manages Juniper
MX equipment and will become integrated with the next NetAct, for Transport, NMS version.
NetManager NetManager provides element and domain management for Nokia Siemens Networks Perfect
Voice, VoIP and broadband access products. It provides integrated fault clearance support using
an alarm topology map that includes all the network elements from the Perfect Voice and
CBVoIP Product range.
NetViewer NME
Suite
NetViewer NME Suite is a collection of products for network management including an Element
Manager and a number of Local Craft Terminals. It is designed to support Microwave (SDH, PDH
and Ethernet) networks as well as WiMAX 802.16d fixed and nomadic products, and NBA nodes.

Product Details
NMS/10 NMS/10 is a PC-based multi-user network manager for network monitoring, configuration and
data collection in small fixed and mobile transmission networks. It is designed to provide full-
scale fault management support for the entire transmission network, including alarm forwarding
remote operations.
Node Manager
Server
Node Manager Server is an OSS enabling remote and centralised configuration changes,
troubleshooting and upgrades for node managers.
Open EMS Suite
(OES)
OES is an umbrella software platform designed to support network element adaptation and
integration for multi-vendor and multi-technology network management systems. It includes a
Managed Object Framework (MOF) that provides XML metadata-driven topology and
configuration management services to enable adaptation to different types of networks. The
product is designed to provide comprehensive out-of-the-box fault and performance
management capabilities adaptable to any NMS, and out-of-the-box adaptors to minimise
integration between EMS/NMS and OSS.
Serve atOnce
Activation Manager
Serve atOnce Activation Manager (SAAM) is a centralized provisioning system for service and
subscriber provisioning. It supports multi-technology networks such as 2G, 3G, packet core,
broadband, IMS, PoC and VoIP. SAAM is multi-vendor, supporting all NSN products and
solutions and some other third-party products and solutions.
Serve atOnce Device
Manager
Serve atOnce Device Manager (SADM) is a mobile device management system, reaching and
managing user devices remotely. SADM provides automated device detection and configuration,
as well as advanced device management such as application management, security functions,
backup and restore, and inventory. It provides customer care troubleshooting tools and options
for rectifying end users’ device specific problems. SADM also provides specific customer device
insights to improve business decisions.
Serve atOnce Mobile
Quality Analyzer
Serve atOnce Mobile Quality Analyzer (MQA) collects data directly from subscriber’s device (with
the agreement of the end user) to analyse customer behaviour, service and network quality. It
provides a tool for network quality benchmarking, using network specific parameters collected
from end users’ devices.
Serve atOnce
Process Automation
Enabling Suite
Serve atOnce Process automation enabling suite is an SOA based framework to integrate
northbound OSS like Activation System, Device Management and Inventory Management
System. It provides standard northbound interfaces to such service fulfilment OSS.
Serve atOnce
Traffica
Serve atOnce Traffica is a service quality management and network performance monitoring
system that collects detailed usage data from network elements in real time. This data is
available to northbound NSN, third-party or custom OSS and BSS for the purposes of customer,
fault, performance and service management.
Telecommunications
Network
Management System
(TNMS)
TNMS is an end-to-end NMS for optical transport networks, supporting DWDM, Ethernet, PDH
and SDH services. It carries out all common management functions (FCAPS) in the element,
network and service layer via a single user-friendly GUI. It will become integrated into the NetAct
Transport next-generation management application.
In addition to its multi-vendor OSS products, NSN also has multi-vendor BSS charge@once products.
NSN’s billing market share is in the mediation sub-segment from its multi-vendor charge@once mediate
product.
charge@once mediate provides online and offline mediation and can work with charge@once select or a
third-party online charging system. Its tools and graphical user interface can be used to implement the
processing rules for online and/or offline charging logic. charge@once mediate enables the creation of an
adaptation layer between the network element and an online charging system (OCS). It supports all
commonly used interfaces for online credit control, such as the 3GPP compliant Diameter Credit Control
Application (DCCA) interface, Radius, HTTP, TCP/IP and In-Advance Credit Check (IACC) interface.

Figure 2.2: charge@once mediate example of active mediation [Source: Nokia Siemens Networks and
Analysys Mason, 2011]
charge@once unified is the next generation of NSN’s convergent multi-vendor billing and charging
solutions. It offers convergent rating and charging of content, events and sessions in circuit- and packet-
switched networks, independent of the payment method. charge@once mediate supports charge@once
unified integration to other network elements to collect network usage records to be rated. charge@once
unified covers the telecommunications layer and provides access functions for integration with enterprise-
layer systems such as CRM and ERP, as illustrated in Figure 2.3 below.
Netact RE EBH CCBS Other
NE3S/SNMP
charge@once mediate
New
workflowsO&M system
(FM & PM)
Workflow
templates
Convergent
Mediation
Engine
Licence
management
Cluster management and OS
HTTP
TCP/IP
Radius
Diameter
DCCA
IACC
Flexi-ISN
SMSC
MMSC
DCCA
IACC
IACC

Figure 2.3: charge@once unified functional overview [Source: Nokia Siemens Networks and Analysys
Mason, 2011]
NSN’s development efforts in the NMS and OSS areas have focused on four main objectives: multi-vendor /
multi-technology capability; process automation; service quality management and standardisation. In the
NMS area, the focus is on umbrella network and service management with open-standards, metadata-driven
and service-orientated common data models and integration frameworks. This provides a roadmap for
consolidated, end-to-end management of multi-vendor, multi-domain network elements, technologies and
services. NSN’s key product offerings that illustrate this approach are described in Table 2.3 above.
The experience and knowledge gained from developing and implementing the OES has led to NSN
organically developing an element abstraction layer (EAL) i.e. a flexible, standards-based, middleware layer
that can pass NMS/EMS data with business-process logic to northbound OSS. This provides a potential
means for less proprietary software in northbound interfaces. The EAL is a fundamental building block
towards the realisation of NSN’s ambition to create a more streamlined, standardized and automated OSS
architecture where network management is directly and flexibly aligned with business processes and
objectives around customer, product development and service management. These developments also
underpin NSN’s concept of self-organising networks (SON), which include built-in, multi-vendor
intelligence and management capabilities enabling the networks to automatically optimize, configure and
‘heal’ themselves.
In keeping with this strategy, NSN advocates broader industry adoption of the TeleManagement Forum’s
Information Framework (SID) – a common information reference model to enable data sharing across multi-
vendor environments. In May 2010, NSN reported that some of its key OSS and BSS had been awarded
SID certification, including ‘NetAct 6.0’ (latest version), charge@once products, and the Serve AtOnce
suite.
Other recent innovations illustrating NSN’s focus on consolidated network and operations management
include ‘NetAct for Transport’. This extends NetAct to end-to-end management of IP-based transport,
United and customer-centric
Enterprise layer
Enterprise layer
Telco layer
Telco layerCRM
ERP
invoicing
Billing
Unified charging
Mediation
Mediation
charge@once unified
Billing
Charging and rating
Integration layer
Centralized databases
Productlifecycle
management
charge@once mediate

including IP/MPLS, carrier Ethernet, microwave, optical and access networks. This was announced at the
Broadband World Forum held in Paris (October 2010) to support NSN’s various transport managed services
offerings (Transport as a service (TaaS)). Previously in September 2009, NSN introduced the ‘Advanced
Performance Check’ solution – a systematic, proactive, automated solution for multi-domain performance
management.
Analysys Mason identifies functional categories of telecoms software investment in the telecoms market.
Figure 2.4 below illustrates the full set of these categories and the way they are grouped into segments.
Analysys Mason yearly publishes the market share and five-year forecast for each of the segments (as well
as consolidated market share information). NSN’s OSS and BSS portfolio reported here are highlighted on
Figure 2.4 below. In this illustration, ‘Rating and pricing’ relates to postpaid services, whilst NSN’s strength
is in the prepaid segment, which is covered by the ‘Real-time charging’ segment.
Figure 2.4: Nokia Siemens Networks’ telecoms software products portfolio positioning in Analysys Mason’s
telecoms software market segmentation [Source: Analysys Mason, 2011]
Service assuranceService fulfilmentBilling
Partner and
interconnect
Business
optimisation
Mediation
Customer
interaction
Customer
relationship
management
Subscriber
management
Order management
Inventory
management
Activation
Engineering tools
Service
management
Fault and event
management
Performance
monitoring
Workforce
automation
Probe systems
Service delivery
platforms
Real-time
charging
Mobile content
management
Telecoms
application servers
Mobile device
management
Rating and pricing
Customer care
Network management systems
Mobile
Residential
broadband
Business data
services
PSTN
Middleware
Subscriber Data
management

3 Customers and markets
NSN has over 600 CSP customers worldwide, including – according to the vendor – 75 out of the world’s
100 largest CSPs. With such a diverse customer base, including all sizes and types of networks, it would be
invidious to single out just a handful of key customers. Table 3.1 presents a few salient instances of where
NSN has carried out projects involving a significant NMS or OSS component. Section 3.1 provides
additional relevant customer case studies.
Table 3.1: Significant Nokia Siemens Networks NMS/OSS customers [Source: Analysys Mason, 2011]
Customer Product type
Elisa NetAct network management system configured, optimized and monitored Elisa’s deployment
extending 3G into rural Finland and upgrading its mobile broadband to HSPA+, as well as
continues to perform network management to help Elisa deliver high-quality services over its
multi-vendor, multi-technology mobile networks.
Hutchison Telecom
Indonesia
Multi-vendor Service Delivery Framework (SDF), helped enable new mobile network roll-out and
launch in nine months in 2006/7.
KPN Use of Event Analyzer for Automation (EvA) to reduce network alarms, automate routine
maintenance tasks, shorten fault resolution times and cut costs.
Smart
Communications
(Philippines)
Use of NetAct Optimizer to automatically tune GSM network frequencies in major cities to
improve performance.
Orange (Slovensko) Use of Serve atOnce Traffica to improve customer experience through proactive maintenance,
right level of service quality for understanding customer behaviour for a relevant service portfolio.
Telenor NetAct Global Reporter provides flexible reporting to improve quality of service on its multi-
vendor, cross-border (regional) network.
Telenor Pakistan Use of NetAct and Serve atOnce Traffica solutions to improve quality of customer experience
and shorten fault resolution times.
T-Mobile USA This is the largest and only version (heavily customised) of NetAct Global Reporter worldwide,
which provides T-Mobile USA with a national level view of its multi-vendor, multi-technology
network comprising over 50 vendors’ equipment. This implementation of NetAct Global Reporter
provides highly scalable, real-time and flexible performance management and reporting
capabilities for T-Mobile USA.
VimpelCom Use of Serve atOnce Traffica to improve quality-of-service monitoring and reduce opex.
Vodafone D2 Use of NetAct 6.0 Monitor multi-vendor and multi-technology capabilities to manage complexity
in the networks, which simplifies network alarm handling to increase network operational
efficiencies and consequently meet Vodafone D2’s objective to be more competitive.
Zain Kuwait Use of charge@once prepaid charging solution to cut times to launch new services and targeted
promotions.
As stated previously, NSN has adopted an overall strategy of generating around 55% of its revenue from
products (both hardware and software) and 45% from services. NSN’s OSS delivery has typically arisen as
part of a packaged deal comprising both products and services, in three main variations:
 NMS and OSS are delivered as part of projects to deploy new NSN network equipment and
infrastructure, which are integral to the overall solution: for instance the NetAct NMS and performance
management modules have frequently been provided as part of 2G and 3G mobile network roll-outs.

 NMS and OSS are delivered as standalone products or solutions, or as part of a managed OSS service,
provided in response to particular operational needs or pressure points from the CSP (usually, but not
always, an existing NSN customer), such as the requirement to consolidate network management for
multi-vendor mobile networks, or the goal of improving quality of service and reducing opex.
 NMS and OSS are provided as part of managed services contracts in which operators outsource
significant parts or all of their network operations to NSN, which typically includes elements of OSS
and network transformation responsibilities.
As part of the refocusing of its strategy around services, NSN is placing an increasing emphasis on the latter
two delivery modes, which is what leads to such a premium being placed on multi-vendor and service
awareness capabilities of its OSS products portfolio and professional services personnel. In addition, the
more NSN products are adapted to the multi-vendor, multi-technology environment, the greater the potential
opportunities to leverage cross-selling NSN products into services contracts with non-NSN environments.
Figure 3.1 shows the split of product and services revenue across NSN’s whole telecoms software portfolio
in 2009. At 61% products and 39% services, the ratio is close to the optimum split targeted by NSN.
Figure 3.1: NSN’s total telecoms software revenue by product and services, 2009 [Source: Analysys Mason,
2011]
About 78% of NSN’s NMS-specific revenue in 2009 is attributed to mobile. This is a reflection of the
historical and continuing strength of NSN’s in mobile-network infrastructure and supporting software
systems. Business services represent a key strategic growth area and are an important factor in NSN’s
overall emphasis on end-to-end network monitoring and quality-of-service management. Figure 3.2 and
Figure 3.3 illustrate the similarity of NSN’s NMS and OSS revenue split being skewed to their strength in
mobile and NetAct’s origin – a mobile NMS. This further demonstrates NSN’s strategic direction to make
NetAct the pillar of its OSS suite.
Product
61%
Services
39%

Figure 3.2: Nokia Siemens Networks’ NMS revenue by
service segment, 2009 [Source: Analysys Mason, 2011]
Figure 3.3: Nokia Siemens Networks’ OSS revenue by
service segment, 2009 [Source: Analysys Mason, 2011]
NSN’s revenue was derived almost exclusively from EMEA and APAC in 2009. The vendor has long-
established relationships with major CSPs in both regions, where it has been involved in numerous mobile,
core and access network equipment deployment projects. By contrast, and for similar historical reasons,
NSN has comparatively little business in North America, an issue which NSN’s acquisition of Motorola is
targeted to address. Figure 3.4 and Figure 3.5 illustrate the similarity of NSN’s NMS and total OSS
regional split which aligns with its managed services to existing customers using NetAct as an umbrella
NMS/OSS suite to support operations, unless indicated otherwise by the customer.
Figure 3.4: Nokia Siemens Networks’ NMS revenue by
region, 2009 [Source: Analysys Mason, 2011]
Figure 3.5: Nokia Siemens Networks’ OSS revenue by
region, 2009 [Source: Analysys Mason, 2011]
Mobile
78%
PSTN
2%
Business
13%
Residential
broadband
7%
Mobile
83%
PSTN
1%
Business
9%
Residential
broadband
7%
NA
6%
CALA
11%
EMEA
50%
APAC
33%
NA
7%
CALA
9%
EMEA
54%
APAC
30%

NSN has done limited acquisitions specific to NMS. The acquisition of technology assets from third parties
appears to be a less important compared with the geographical reach of customers and skilled multi-vendor
resources attained from these transactions. This supports NSN’s strategy to expand its global professional
services business. A summary of NSN’s acquisitions/investments is listed in Table 3.2.
Table 3.2: Nokia Siemens Networks’ M&A in the OSS segment [Source: Analysys Mason, 2011]
Date Acquisition/investments Transaction value (USD million)
2010 IRIS Telecom N/a
2010 OpenCloud (investment) 6
2010 Motorola (Networks Unit) 1200
2008 Apertio 206
2007 Atrica N/a
N/a: data not available
3.1 Customer cases studies
China Unicom, Shanghai
China Unicom has been publicly listed since 2000 (NASDAQ: CHU) and has merged with former China
Netcom (completed 6 January 2009). It has businesses in 31 provinces (autonomous regions and
municipalities) across China and many countries and regions around the world. Its business located in
Shanghai is known as Shanghai Unicom. It is one of the top-three mobile CSPs in China and has GSM,
including 3G, and WCDMA networks that provide a wide range of mobile services to its subscribers. The
network comprises NSN and Huawei equipment.
Challenge
Shanghai Unicom needed to improve its mobile customers’ experience by ensuring the network propagation
is always optimal. The challenge was end-to-end network optimization, having both NSN and Huawei
equipment as well as two different radio technologies (GSM and WCDMA).
The NetAct Optimizer solution
‘NetAct Optimizer’ was selected because of its industry recognition and widespread use for multi-vendor
mobile network optimization. Shanghai Unicom already used NetAct for fault management, configuration
management, provisioning and reporting, and Serve atOnce Traffica for service quality management and
network performance monitoring for the management of the NSN network. NetAct Optimizer would provide
an end-to-end optimization solution for the NSN and Huawei network.
Because there was no other optimization tool in the network, the implementation of NetAct Optimizer was
straightforward. NetAct Optimizer was integrated into Huawei’s M2000 (mobile NMS) to receive input data
in order to perform network optimization calculation. This solution allowed network optimization to be
automated on the NSN network, but the optimization changes to the Huawei network needed to be
configured manually or through Huawei’s M2000.

Benefits achieved
NetAct Optimizer gave Shanghai Unicom a single end-to-end tool which removed ‘swivel chair’ operation
for network optimization – improving operational efficiency. The ability to carry out end-to-end network
optimization for both the NSN and Huawei networks improved the following network KPIs:
 call drop rate decreased by 10%–20%
 busy-hour uplink quality improved from 85.7% to 88.4%
 busy-hour downlink quality improved from 75.5% to 82.2%.
These improved KPIs enhanced the quality of service, which in turn contributed to a better customer
experience on Shanghai Unicom’s network.
Shanghai Unicom’s new challenge, for which it will consider NetAct, is multi-vendor configuration
management (possibly ‘NetAct Advanced Configurator’) and performance management.

4 Analysis
NSN is one of the few major NEMs that continues to dominate mobile NMS and equipment markets. While
other NEMs have concentrated on single-vendor, multi-domain, multi-technology NMS, NSN stands out as
the only NEM to aggressively pursue the challenging multi-vendor route for NetAct.
4.1 Strengths
Most CSPs, especially Tier-1 and incumbents, operate multi-vendor networks. The management of these
heterogeneous networks leads to operational inefficiencies which reduce the CSPs’ margins. NSN targets
resolving this multi-vendor challenge with providing CSPs with a NetAct ‘suite’ that has a multitude of
modular multi-vendor management components CSPs can select to meet their tailored requirements. As a
result, smaller or greenfield CSPs could implement cost-effective OSS functions from NetAct modules.
NetAct started as a mobile NMS only, and is still very strong in the mobile NMS segment. However now,
NetAct also addresses network management in the growing business services and residential broadband
NMS segments. NetAct still has legacy network management capability for circuit-switched (PSTN)
equipment which is largely in maintenance mode at present. ASPEN and TNMS are expected to become
integrated into NetAct, which operationalizes and manages multiple vendors’ IP equipment from NSN,
Juniper, Tellabs and Cisco. NSN further intends to consolidate its DSL and optical network management
functions into NetAct. This indicates NSN’s strategic direction is to develop a common (multi-domain)
NMS, in addition to its multi-vendor agenda, to help CSPs rationalize its network operations.
NSN NetAct’s multi-vendor capabilities also strategically supports NSN’s strong professional services by
being able to manage multi-vendor CSP networks and operations environment from their global NOCs using
NetAct as an umbrella multi-vendor network management solution. Additionally, NetAct as a multi-vendor
NMS solution can help CSPs reduce challenges of introducing new supplier equipment into the network.
Furthermore, NSN’s strong partner programme with all the main OSS and BSS vendors ensures all NSN
telecoms software products can be integrated if and when needed, based on CSP requirements.
NSN’s telecoms software (OSS, BSS and SDP) product development approach builds on its existing product
portfolio and responds to market trends – with NetAct at the core. As a result, NSN telecoms software
portfolio broadly covers critical areas of network management, service assurance, service fulfilment, billing
mediation and service delivery platforms (with leadership particularly in real-time charging and subscriber
data management) for end-to-end service delivery and management.
4.2 Weaknesses
Whilst NetAct’s modular structure provides the flexibility to customize a management solution with lesser
integration effort, it is difficult to readily identify in which component specific capabilities/functions reside.
This is an issue which evolved from NetAct’s legacy and organic development, as with most software
development. All NetAct software modules are dependent on the base NetAct NMS to work.
NSN NetAct is currently the only NMS that provides multi-vendor capabilities. However high customization
is required for some multi-vendor implementation for vendors that are not pre-tested. This customization
process can result in cost and time overheads.

4.3 Threats
Alcatel-Lucent 5620 SAM and Huawei’s U2000 are moving to a clearer multi-domain NMS which provides
NMS feature only and does not include other OSS functions such as service assurance and/or service
fulfilment. Also, displacing established multi-vendor independent software vendors (ISVs) such as Amdocs,
Oracle, IBM and HP in the service fulfilment and service assurance market will be difficult for NSN.
Management and maintenance of multi-vendor products are very complex because of the high number of
customized implementations that need to be individually tracked (versioned). Each customization may not
be reusable or incorporated into NSN’s mainstream product development, leading to possibly unrecoverable
cost (time and resources). Other NEMs have stayed away from multi-vendor NMS because of the cost,
complexity and limited market demand.
4.4 Opportunities
The high and growing number of multi-vendor networks does present opportunities for NSN’s NetAct. NSN
has also been very successful in emerging markets with small and new entrant CSPs providing it with most
of the baseline OSS, billing and SDP needed to operate effectively. The multi-vendor NMS proposition is a
unique selling proposition in the industry.
NSN’s managed services business exposure to multi-vendor environment enhances NSN’s systems
integration skills of NSN products and third-party products. These multi-vendor skills assist with driving
NSN’s multi-vendor product roadmap. An example of this is NSN’s multi-vendor PCRF solution (PCS-
5000) that integrates with third-party products to provide policy management for CSPs and is part of NSN’s
IMS core offering.
NSN’s modular approach of NetAct allows for retention of the value of various software component
capabilities. Typically, NEMs bundle many functions into their NMS, which is commonly given away with
equipment sales since the NMS is usually needed to effectively operationalize the equipment.
Acknowledgements
We would like to thank David Martin for his contributions to this paper.
Copyright © 2011. The information contained herein is the property of Analysys Mason Limited, and is provided on
condition that it will not be reproduced, copied, lent or disclosed, directly or indirectly, nor used for any purpose other
than that for which it was specifically furnished. The ownership, use and disclosure of this information are subject to the
Commercial Terms contained in the contract between Analysys Mason Limited and Nokia Siemens Networks.
Published by Analysys Mason Limited • Bush House • North West Wing • Aldwych • London • WC2B 4PJ • UK
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