Presented by Martin Morgan of Openet at Next Generation BSS 2014

1. The Impact of 4G on BSS
Martin Morgan, VP Marketing, Openet
Next Gen BSS Conference, London
8th October 2014

2. Agenda
• 4G – New services, new business models – more opportunities
• Impact on BSS
w w w . o p e n e t . c o m 2
• Transformation
• Virtualization
• Working with 3rd parties
• What about legacy systems?
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• Summing up

3. 288 live LTE networks in 104
countries + 550 operators investing
in 161 countries (GSA, May 2014)
64% of the world population to be
covered by LTE in 2020 (GSMA)
w w w . o p e n e t . c o m 3
LTE Drives New Revenue Opportunities
• LTE: High speed and capacity driving data
usage and innovation
• LTE users ~1.5GB of data per month
= almost twice non-LTE users (GSMA, Nov 2013)
• LTE subscribers often exceed data limits
• Innovative offers and business models
• LTE users ARPU higher than non-LTE users (GSMA, Nov 2013)
• Developing markets: 7-20 times
• Developed markets: 10%-40%
Source: Modibia / Informa “Understanding today’s smartphone user”, 2014
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4. w w w . o p e n e t . c o m 4
New threats and opportunities require
flexible real-time solutions
• Avoid relegation to dumb pipe by OTT Services
• Recover heavy network investment
• Monetize premium service offerings
• Capture revenue opportunity from new rapidly
growing mobile applications (e.g. payments,
advertising, in-app purchases)
• Manage massive and unstructured data sources –
social media mashed up with EDR’s
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BSS needs to enable:
• Rapid response to
competitive threats
from Google, Apple,
Facebook, other OTT
players
• Extract appropriate
economics from
heavy network users
(such as Netflix,
YouTube)
• New revenue sources
to broaden base of
customers and
services
• Automated network
functions (NFV / SDN)
to reduce costs and
make new service roll-outs
fast and cheap
11
Service Providers Face an Increasingly Complex
Environment

5. w w w . o p e n e t . c o m 5
What Are Operators Saying……….
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6. The Foundation for LTE Service Innovation:
Evolving Legacy Business Support Systems (BSS)…
2. If yes, in your experience what is the main
reason for legacy BSS delaying product launches?
w w w . o p e n e t . c o m 6
1. In your opinion, do you think that
existing BSS limitations can delay new
product innovation and launches?
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89%
11%
Yes
No
23.8%
7.9%
30.2%
38.1%
0.0%
Systems are heavily reliant on
vendors to set up new offers
New rate plans can be too
complex
System integration work is too
complex
No one single system to centrally
develop, launch and manage
offers
N/A (Answered "No" to question
one)
“Charging & billing for the digital economy”,
Survey of 80+ operators, Openet, 2013
1 & 2: Survey of 70+ operators, Openet, 2014

7. w w w . o p e n e t . c o m 7
…Towards Real-time, Agile BSS
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Charging & billing for the digital
economy”, Survey of 80+
operators, Openet, 2013
Telecoms.com Intelligence,
“Operators’ BSS Strategies”,
global survey of 100+ operators

8. Operators Use Case – Real-Time Convergent
Charging and Policy (TMF Survey June 2014)
TMF – Current and Forecast Use of Real-Time Convergent Charging and Policy Management
Survey of 67 operators June 2014. 33% working on OTT Collaboration now. Will rise to 68% in 2 years
w w w . o p e n e t . c o m 8
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9. Plans to Deploy Policy Use Cases
Question: Which of the following use cases will your company deploy in its
network?

10. w w w . o p e n e t . c o m 10
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LTE is Driving….
• More services
• In less time
Shared data
Application
Sponsored service passes
data
High speed
roaming passes
Real-time context
aware upsell
Upselling
Add-Ons
VoLTE
Real-time dashboards
& notifications
Wi-Fi offload
& packaging
Speed-based
offers

11. w w w . o p e n e t . c o m 11
What’s the Impact on BSS?
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12. w w w . o p e n e t . c o m 12
Legacy BSS May Struggle……..
• Fragmented data
• Expensive to maintain
• Difficult to configure
(Adjunct)
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Near infinite variety
of devices
• Difficult to change
• Proprietary
• Built for “utility” style businesses
Billing
System
IN
System
Service
Catalog
Policy
PCRF
Billing
System
World of content
and services
Multiple access
networks

13. Open and Virtualized BSS – Enabling Transformation
w w w . o p e n e t . c o m 13
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World of content
and services
Multiple access
networks
Near infinite variety
of devices
Powerful benefits
• Service differentiation
• Monetization
• Network optimization
• Business intelligence
• Business model evolution
Industry leading technology
• Comprehensive functional library
• Modular architecture
• Flexible configuration
• Virtualized deployment support
BSS
Transformation

14. Business Drivers for BSS Virtualization
• Operators will be “using virtualization to drive innovative service creation,
especially the creation of services and apps that require time to market
intervals of only days, even hours.”
• “Many operators view NFV as a key ingredient in their OSS/BSS
transformation objectives, offering an escape from the legacy 12-24 month
service creation cycles that handicap their long-term competitiveness”
w w w . o p e n e t . c o m 14
Source: 2014 OSS/BSS Investment Trends: Top Operator Drivers and Priorities, Current Analysis
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15. w w w . o p e n e t . c o m 15
BSS Transformation and Virtualization
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16. BSS: Learn Fast and Minimize Risks
• Test new services with minimum risk/disruption (73.4% operators)
• In-service upgrades and modifications: faster, minimum disruption
• Adoption of open standards with BSS software and NFV
• Removes vendor lock-in and reduce needs for vendor specific skills
• Simplifies integration of new components to the existing network
w w w . o p e n e t . c o m 16
• Easy to roll out or roll back services
• Resources can easily be re-allocated
• Easy to go from small scale trial to full scale production
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17. Virtualized BSS can Provide the Open
Platform to Drive Partner Business Models
• Open up BSS to 3rd parties (via APIs) => Multi-sided business models
• Partners can directly build, launch, maintain own offers
• E.g. MVNOs, OTTs, content partners, enterprise customers, IoT providers
w w w . o p e n e t . c o m 17
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18. Opening Up Offer Catalog to Third Parties
w w w . o p e n e t . c o m 18
• Partners have secure access to
operator’s BSS to configure their
offers, pricing, QoS and promotions
• Automated process and reduces
strain on operator’s IT team
• Partners can also use operator
supplied customer intelligence to
refine offers
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19. w w w . o p e n e t . c o m 19
Protect Legacy BSS Investment
• Mobile operators want to protect
legacy BSS investments made over
many years
• Operators want to squeeze the last
drop of ROI out of legacy BSS
investments
• This approach can be to the
detriment of project timelines and
stymie real innovation
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20. Virtualized & Non-Virtualized BSS side by
side?
• Reduce time to market as services down to a matter of weeks
• Introduce new services such as RCS without legacy systems acting as a bottleneck
• Protect Legacy BSS investment while having the flexibility to scale up as required.
• Where appropriate adjunct systems can interface to existing BSS
w w w . o p e n e t . c o m 20
• Why would an operator do this?
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21. w w w . o p e n e t . c o m 21
Example of Adjunct Systems - VoLTE
• VoLTE requires co-ordination
across policy & charging control
elements to define application
level QoS with flexible charging
to zero rate VoLTE control
traffic, support legacy voice
tariffs and new flexible bundled
propositions
• Heavy Reading 2014 operator
survey – over 30% of policy
systems may need upgrading to
handle VoLTE and some may
need to be replaced
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22. w w w . o p e n e t . c o m 22
Policy VoLTE: Option to run as Adjunct
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23. Summing Up
• 4G is driving more services that need to be delivered in less time
• Many legacy systems are not up to job
• BSS transformation is happening – driven by move to IP, faster networks,
w w w . o p e n e t . c o m 23
© Copyright 2013 Openet – Company Confidential
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more services
• Open systems and virtualization can speed up transformation process
• Virtualization enables adjunct approach to be accelerated while protecting
legacy investment
Download the Slides:
openet.com/pricingmobiledata