GDS International - Network Transformation was this the Right Agenda?


Published on

With data traffic growing by close to 50% per year in Western Europe according to Gartner
and CAPEX for wireless infrastructure reaching € 16 Bn in 2017, telecom operators face
major stakes to transform their networks. This is however highly complex, requiring both
strategic and operational vision and… the right agenda!

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

GDS International - Network Transformation was this the Right Agenda?

  1. 1. Network Transformation INNOVATION MAKERS Network Transformation: What is the right agenda?© 2012 Altran All rights reservedAltran Technologies – Public Limited Company – share capital: € 72 360 712registered office: 58, boulevard Gouvion Saint-Cyr - 75017 Parisregistration number: 702 012 956 RCS ParisPhoto credit: © Shutterstock – graphic design: luce théry
  2. 2. Network TransformationWith data traffic growing by close to 50% per year in Western Europe according to Gartnerand CAPEX for wireless infrastructure reaching € 16 Bn in 2017, telecom operators facemajor stakes to transform their networks. This is however highly complex, requiring both legacy end-dates. The objective is to ensurestrategic and operational vision and… the right agenda! Defining the network that costs and risks remain under control. transformation model Network transformation is not only about Defining the transformation model for an replacing a network, a technology or a operator remains a very complex exercise. series of equipment. It is also about new Operators need first to define what would competences planning, organisational transformation strategies some measures such as “fair-use” be the most cost effective, flexible and changes and processes rationalisation. Drivers for network transformation policies and other traffic management schemes setting data scalable network solution to serve their In addition, defining the transformationIn 2009, mobile data overtook voice traffic. In 2011, it volume caps in order to have a better control on “crazy” data strategy. They also need to define the exact model for an operator implies nowadaysdoubled voice traffic. Growth pace will remain high for forecasts. This will not be enough. milestones for each part of the network as to see how, in the most effective way, canthe coming years, due primarily to the abundance of The timeline associated with network transformation well as the correlation with their specific be leveraged the existing infrastructure ofbundle and “all you can eat” offers. Their success, both changes widely depending on countries, regulation, operator services portfolio. The transformation third parties or competitors (e.g. networkin terms of acquisition of new customers and service specificities, subscribers’ demands and services evolution. strategy needs to integrate in a clear sharing, wholesale…), and conversely,consumption, generated increased demand for network Therefore, the key success factor is, for each operator, a clear and actionable way the management of how to take advantage of its own excessresources. Combined with the explosion of devices (whether transformation agenda, with the associated timeline vis-à-vis interdependencies between Network and capacity by making it available forSmartphones, Tablets, PC or any connected device) and the of business needs (e.g. services portfolio, market strategic IT, between new infrastructure and critical competition.proliferation of internet applications such as web browsing, positioning, cost of megabit, total cost of ownership…) andsocial networking, software download/updates, these factors a good understanding of the operational implications at allconstantly challenge the capacity of mobile infrastructures. organisation levels.It is an absolute necessity for operators to transform their An example of agenda dilemma for a mobile operator Technology Technology Validation Network Networknetworks. It requires to manage increasingly complex and interested in reducing its cost per megabit would be when, Roadmap Advisory and Trial Management Implementation PMO Service Managementheterogeneous technologies, with a double objective: to where and how to move to LTE. If the operator has not beendeliver to end users an experience that is richer, in the granted by the regulatory agency a 20 MHz but a 10 MHz LTEfunctionalities and contents proposed, and simpler. • echnology and T • est bed and field T • etwork N • esign and D bandwidth, upgrading its current 3G Radio access to HSPA+ business cases technology validation implementation implementation of (with MIMO and Dual carrier) will offer similar performance to implication analysis processes design • est bed, trial network T the network service LTE and at a much affordable cost. Transformation agenda The same dilemma applies when the operator needs • echnology adoption, T and cluster • etwork planning and N management function readiness risk management roll out managementMobile data and video services take-up, always best • esign and D to choose between the IP Overlay and All IP migration assessment • endor roadmap V • ransformation Tconnected solutions, multi-services and QoS management implementation of the transformation model. The IP Overlay approach is • roducts and services P update follow-up programme governancealong with cost management are among the hottest topics on operating processes smoother, since it consists in adding “IP glue” to the roadmap • oftware and hardware S • roject stakeholder Pthe agenda of Western Europe mobile operators. They have and organisation existing TDM infrastructure. However, All IP migration is • pectrum analysis S release validation managementall launched, at various paces, major Radio Access Networks more straightforward, implying a faster replacement of the • efinition of the new D • FI and RFP R • chnology performance e and coordinationmodernisation and renewal programmes along with their legacy infrastructure. Network transformation is also about (subcontractors, solution end-to-end development and benchmarkpreparation for LTE /EPC and IP everywhere. identifying the best way to ensure return on assets on the vendors, customer service KPI and KQI vendor selection • echnology THowever network transformation shall not be limited to legacy infrastructure before even defining teams, other • ools and systems T • ransformation T generalisation supportan infrastructure alignment to cope with traffic demand. the road ahead. 3rd parties…) support requirements scenarios and impactIt also has to involve the smartest way to reduce the cost The timeline associated with network analysis • ransformation T analysisper megabit. Even though data revenues are increasing and transformation changes widely depending ERP management • egacy out scenarios L • ervice performance Srepresent now about 30% of mobile operators’ revenues, they (including billing chain, on regulation and subscribers’ demands. analysis managementstill do not cover the infrastructure cost associated with the stock and spare part Network transformation is also about new management)mobility experience expected by most customers in mature competences planning, organisationalmarkets. As data traffic is usually generated by a limited • Risk management changes and processes rationalisation.number of users, operators integrated in their network Altran Network Transformation Capabilities Higher Network Transformation by Altran Spectrum New Migration Packet core Multi spectral refarming spectrum to IP Programs VAS Altran, through its Infrastructure and Networks Practice, offers a comprehensive and phased approach to address efficiency (IP, R4, EPC, the challenges of network transformation. Our teams have implemented complex migration strategies multiple CDN) Other File Others Online times and have developed robust and proven transformation methodologies. We work hand in hand with our Sharing Video customers before, during and after the transformation in order to deliver: 2% value proposition 19% 26% • learer vision of the transformation agenda and the business implications C Radio Backhaul Core VAS • aster delivery of network transformation, with the support of a dedicated and scalable experts team F access 28% 25% • aster Time-to-Market enabling stronger competitive advantage F • anaged network transformation, to allow our clients to focus on customer experience, marketing M Source: Frost Sullivan strategy and sales effort Additional accesses for IMS Data P2P File Altran Network Transformation offer revolves around 4 pillars: Convergent indoor traffic Service Sharing (femtocells, Control • echnology Roadmap Advisory T capabilities wifi) • Technology Validation and Trial Management Mobile Infrastructure Market: • Network Implementation PMO Mobile Network Transformation per Sub-System Data Traffic Composition in Europe, 2010 • Network Service Management