Operators third party dilema rev a
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The document discusses the evolution of network and operations outsourcing in the telecommunications industry. It describes how earlier networks were more predictable with standardized devices, usage patterns, and growth. This allowed network management to be handled internally. However, market pressures around capital expenditures and operating costs led many operators to outsource various network functions. This helped control costs initially but the industry has since faced new challenges from unpredictable traffic patterns driven by viral apps and new devices. Accurately modeling usage is now much more difficult, posing risks to network performance. Outsourcing arrangements must now adapt to address the less predictable new market environment.
Operators third party dilema rev a
- 1. Network and Operations Outsourcing Have we gone too Far? Prepared by Rafael Andrade
- 2. Agenda • The Era of Network Management • The Era of Outsourcing • The Market Change and Evolution • How to make Outsourcing Work in the New Market? • Conclusions 2 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 3. Wireless Telecom Then – Simpler Networks 2G Mobility Interconnect & HLR EIR/ Roaming VLR 2G/2.5G SS7 Billing MSC STP BTS BTS 2.5G Core APNs SGSN GGSN PDSN Predictable Predictable Predictable Predictable Predictable service devices traffic patterns users growth • The world was predictable for operators 15 years ago • In addition to predictable, these areas were one- dimensional • Many processes were build based on this model • Operators had control of the network, users & services 3 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 3
- 4. Wireless Telecom Then – Network Management Data from incompatible The old era of Network Management and biased sources yields Reporting to information latency and information loss… and no Ad Hoc Reporting Other Reporting Prone to Latency customer focus Customer to Service Correlation Prone to Data Loss Service Status (Up / Down) Call and Service Detail Records Network and Service Billing and CDR Collection Monitoring Platforms Platforms 4 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 5. Wireless Telecom Then – Organization Silos Formed Operators divided internal functions to increase productivity, predictability and control across the entire organization. This worked initially, but with new services, this complicated the operational model 5 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 6. Agenda • The Era of Network Management • The Era of Outsourcing • The Market Change and Evolution • How to make Outsourcing Work in the New Market? • Conclusions 6 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 7. Operators Acted on the Market Pressures Get Capital Expense back Under Control……. Enable new billable services Gbps Required System Capacity 140 $30M $$ Planned System Capacity 100 $10M Time Increase Revenues and reduce Churn Help manage soaring operating expense 7 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 8. Outsourcing Takes Off 8 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION http://www.oliverwyman.com/pdf_files/CMT07-Network_Outsourcing-07.pdf
- 9. What is Outsourced? Source Nokia Siemens - http://www.nokiasiemensnetworks.com/perspectives/insight/efficiency-perspective 9 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 10. Agenda • Background – The Era of Network Management • The Era of Outsourcing • The Market Change and Evolution • How to make Outsourcing Work in the New Market? • Conclusions 10 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 11. New Challenges – Unpredictable Traffic Patterns Today, network traffic patterns change daily based on: – The latest viral smartphone application – The release of new popular smartphones that increase data consumption – Managing creating and evaluating realistic and relevant traffic models move from a hard to a close to impossible task. Generated +$100k revenue/day (advertisments) after 6 weeks 9 days to reach 1 million users 50 days to reach 50 million users This type of Viral growth has impacted 3G greatly... And will get worse in LTE 11 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 12. New Challenges – Unpredictable Traffic Patterns Initial performance and accessibility of the leading LTE network in North America made headlines worldwide Then LTE smartphones were launched and immediately KPI’s went from ’solid green’ to ’bright red’. The new user behavior, mobility pattern and traffic model killed the performance of the “perfect network” • Operators were not prepared to manage the new behavior of the smartphone users • The ability to accurately model and understand the impact of new devices to the overall traffic is crucial! 12 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 13. New Challenges – Unpredictable Traffic Patterns In Japan a commuter train delay due to a train accident during morning rush hour caused a significant network outage. Many users used various IM services to communicate their situation: – Line, Skype, WhatsApp, iDialog etc on both Android and IOS based UE’s This resulted in a significant Packet Switch network node overload causing immediate network blocking and outage. Unpredictable events lead to increased traffic congestion... Then no one moves 13 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 14. New Challenges – Users are the Problem & Solution Users continue to demand more from data networks They will continue to need more than operators typically plan for We must monitor, follow and learn from the user behavior – We can predict their next steps with proper testing & planning – Uncovering spare capacity and identify possible revenue potential If we dont learn from 3G, WiFi will continue to be a very good alternative to paying for data services 14 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 15. New Challenges – More Network Complexity LTE/FemTo EPC Mobility Interconnect & Roaming eNode B Home eNB HLR HSS PDN- MME S-GW GW UTRAN Node B Node B SS7 GPRS/UMTS/CDMA MSC STP GSM Data Content & Services SGSN GGSN PDSN BTS BTS EPC CDMA App Servers Mobile VoIP AN AN PCRF/ MSC GCF MGW CSCF PCEF Server IPTV & VoD WiFi/WiMAX UMA SIG G/W MGCF MRF Fixed Access Cable/xDSL VoIP Signaling Access B-RAS Node • Less control of network usage, devices, services, traffic, etc • Many tools, lots of data, but little information & knowledge • Network operations are very reactive and rely heavily on NEMs • Many KPIs but little Customer Service Experience Management 15 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION 15
- 16. New Challenges – Operators Now Have Higher Demands Without Control & Predictability, how can Operators Adapt to new Demands while Creating Intelligent Services for Intelligent Users? How to Lower CapEx How do I Enable New & OpEx without Services with High Degrading Quality? Quality? Operators need to regain some control of their networks and services in today’s challenging new world 16 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 17. Agenda • The Era of Network Management • The Era of Outsourcing • The Market Change and Evolution • How to make Outsourcing Work in the New Market? • Conclusions 17 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 18. Making it Work – Evolve with the Network UTRAN – 3G radio GPRS packet routing Operator ISP ISP Application Uu & Content associated LMU AMR Iub SMLC Other GPRS Providers Stand PLMN e-mail apps content alone LMU GTP Node B RNC GGSN BG ATM2u/5c Iur BG Gp AAA DNS RADIUS DHCP GTP Uu ATM2u5c GTP Gp Gp AMR ATM5 IP IP associated Iub IuPS Gn GTP Gi Enterprise PDN Stand LMU SMLC alone LMU Node B SGSN GGSN ATM2u/5c RNC Gb IuCS Uu Gr Gc Iub MMSC micro/pico/femto cell Gf associated LMU DAS evolution Call Control IP Stand alone LMU Node B & operator specific services Lg Lh IuBC Gs GMLC Le Lc CBE CBC EIR LCS HSS Broadcast client Lg SCP IP (gsm services (gsm SCF) SRF) C F Um D LMU(b) SMSC LMU(a) B VLR BTS GMSC MSC Nc ISUP/BICC server Um Abis Agprs server voice Enterprise Mc mail Mc PCU LMU(b) Agprs A A Nb IP OLO LMU(a) BTS BSC (Ater) MSC VLR MSC MGW PSTN Abis HR, FR, EFR Lb MGW PCM PCM HR, FR, EFR or AMR or PCM over ATM or QoSIP HR, FR, EFR GERAN – 2G/3G radio SMLC 2G radio Packet-switched voice Circuit-switched Roaming partners If technology evolves, so must your processes, your people & your approach 18 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 19. Making it Work – Lifecycle is Important, No Shortcuts 1 2 • Evaluate the technology • eNB scheduling performance against industry requirements Lab Testing • Security and billing policies Technology • Test technology implementations & • Service performance in controlled environments Field Trials • Adopt an open process Evaluations • UE performance instead of a closed bilateral field trial • MIMO performance gains 3 4 • Evaluate E2E performance • End user QoE/QoS • Evaluate network coverage • Historical troubleshooting Field Trials • Evaluate cell and node Friendly • Handset IOT, conformance & Vendor performance under load Customer and pre-conformance • Evaluate SON and IRAT • Monitor handset performance Evaluation capabilities and performance Trials • Trending, statistics and VIP • Perform KPI benchmarking reporting 5 6 • Ensure SON is working • Verify E2E visibility and troubleshooting capabilities • Locate areas for expansion • Monitor backhaul Commercial • Validate user behavior • Understand overall network Optimization performance impact on end- Launch handover performance and Growth user QoE • Benchmark service • Include integration with node- performance between macro logging capabilities and mirco roll-out 19 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 20. Making it Work – Understand and Own Tradeoffs Operators may have various motivations for outsourcing: – Increase profits – Increase market share – Increase shareholder gain – Increase customer satisfaction – Reduce churn In the end, this is a technology driven business: – Must balance finances and bleeding edge technology A network with – Cannot run the company with archaic mediocre 3G processes and procedures services will have – Cannot have a dysfunctional organization mediocre LTE – End user must be at the center of all financial and operational functions services 20 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 21. Making it Work – Too Much of the Wrong Change Many operators have lost control by becoming the dreaded “Dumb Pipe” the never wanted to become… – Little to no control of apps (i.e. facebook, twitter, etc) – Traffic patterns are unpredictable, thus uncontrollable – Users have changed and will more often than not get what they want – Devices are more variable than ever – Operators have lost control of their users and what they do Many operators have lost control by outsourced too much – Less engineers – Less labs Network operations – More Turn Key operations cannot move in the – Too many cooks in the kitchen opposite direction of – Some operators look like MVNOs technology! 21 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 22. Agenda • The Era of Network Management • The Era of Outsourcing • The Market Change and Evolution • How to make Outsourcing Work in the New Market? • Conclusions 22 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 23. Conclusions Reducing costs to Zero does not yield infinite profits! Lead technology with first class teams & class processes Understand the tradeoffs Hire and grow talent… Keep your IP… Outsource Labor Control your network where it matters the most to you! 23 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 24. JDSU Portfolio – Enabling Control for Operators Mobile Network Lifecycle Applications Integration & Optimization, Diagnostic Functional Trials & RF/RAN Pre- R&D Production Deployment Operation & Performance Analytics & Test Troubleshoot Engineering Reporting Test JDSU Optical & Ethernet Transport Test Solutions Base Station Test Network Protocol Test (SA, NA, TPA) Device Emulation and Capacity Testing Drive Test Active Test Ethernet Backhaul Test & Monitoring Mobile Assurance Smart Network Application Platform (Packet Portal) JDSU Services & Consulting 24 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 25. Thank You 25 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION
- 26. JDSU Mobility Solutions Industry Recognition 2012 Test & Measurement Best in Test Finalist - Signaling Analyzer Real Time (SART) Internet Telephony Product of the Year - 4G/LTE Smartphone Drive Test Application for Android Mobility Technologies LTE Visionary award - SART 7.1 release MultiService Forum - Center of Excellence Award LTE-World Summit Award - Drive Test & SART recognized for LTE test excellence Internet Telephony Product of the Year - SART 7.0 release 26 © 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION