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Perspectives 2010 2011
 

Perspectives 2010 2011

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the prospect of telecom future

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    Perspectives 2010 2011 Perspectives 2010 2011 Document Transcript

    • [transform] [digital] [business] 2010/11 Apps And Ads reshApe mobile Federated services and Top 10 innovations that will Cloud Computing needs solid networks are the future transform communications standards and security to fly
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    • Perspectives [ transform ] [ digital ] [ business ] TM Forum Yearbook, 2010/11 Contributors Editor Annie Turner Priscilla Awde is an established freelance journalist specializing in Copy Editor Nick Gordon telecoms, although she also reports on other industries. She writes for Design The Page Design Consultancy Ltd the Financial Times and the business-to-business press. www.thepagedesign.co.uk Production Management Tim Richards Dawn Bushaus has covered the communications industry for over 20 Commercial Sales Mark Bradbury - mbradbury@tmforum.org years. She works as a freelance journalist and is based near Chicago. Client Services Caroline Taylor - ctaylor@tmforum.org Head of Publications and Research, TM Forum Ankush Chibber is a Mumbai-based journalist who has been covering Rebecca Henderson - rhenderson@tmforum.org banking, technology and entrepreneurship in the Asia Pacific region for VP, Communications, TM Forum seven years. His work has appeared in the U.S., Europe and South East Nik Willetts - nwilletts@tmforum.org Asia. Published by: Tonia Graham has been the manager of the TM Forum Business TM Forum Benchmarking Program since its inception in 2004. She has over 240 Headquarters Plaza 30 years’ experience in the telecom management, networking and East Tower, 10th Floor computer industries. She also serves as Chairman of the TM Forum Morristown, NJ 07960-6628 Advisory Board and is CEO of e*Tezeract. USA www.tmforum.org Richard Handford is a highly experienced freelance writer for Phone: +1 973 944 5100 publications such as Informa Telecoms and Media’s Mobile Handset Fax: +1 973 944 5110 Analysis and is a contributor to The Economist’s Technology Quarterly. Printed by William Gibbons & Sons Ltd Alun Lewis is a freelance writer and consultant who has specialized in convergence technologies in marcoms, PR and journalism for over 20 years. This edition of Perspectives is dedicated to Lynd Morley, who was the first editor of the TM Forum George Malim is a freelance journalist who contributes regularly yearbook, between 2006 and 2008. As a journalist she to Global Telecoms Business, Capacity, Mobile, VanillaPlus and was always generous with her time and reporting, and Communications News. He was editor of Stream, Europe’s first became a much valued member of the Forum family. magazine on mobile content. He has also worked for Silicon.com. She had interest in and well informed views on a huge range of subjects, from horse paddocks (which we Tony Poulos is the head of revenue management sector, TM Forum. discussed often), to human rights and myriad aspects of the communications industry. She was well connected and very well Robert J. (Rob) Rich is MD of TM Forum’s Insights Research. He has liked, not least for her irreverent sense of humor. We, and others who more than 16 years’ experience in market research and consulting, knew her, miss her personally and professionally. including 11 years as executive VP of communications & networking at the Yankee Group. Before that, he spent 17 years in the computing and Keith Willetts, Chairman and CEO, TM Forum networking industry. Susana Schwarz served as editor with TM Forum’s Research & Publications and currently is a freelance journalist specializing in back office and emerging technologies. Karen E. Thuermer has over 25 years of experience as a journalist specializing in economic development, international business, and logistics. She has written for many publications including Forbes, Boston Globe and Washington Business Journal. She is based in Alexandria, Virginia, U.S. © 2010. The entire contents of this publication are protected by copyright. All rights reserved. No part of this publication may be reproduced, stored in Annie Turner started her career as communications journalist in the 1980s a retrieval system, or transmitted in any form or by any means: electronic, and hasn’t been bored since. As well as editing Perspectives, she is mechanical, photocopying, recording or otherwise, without the prior permission editor of Payments Cards and Mobile, and ICT for Education magazines. of the publisher, TeleManagement Forum. The views and opinions expressed by independent authors and contributors in this publication are provided in the John Williamson edits the yearbook Jane’s Military Communications, writers’ personal capacities and are their sole responsibility. Their publication Convergence World magazine and the Global Startups, a newsletter for does not imply that they represent the views or opinions of TeleManagement Forum and must neither be regarded as constituting advice on any matter venture capitalists. He is a regular contributor to telecomredux.com. whatsoever, nor be interpreted as such. The reproduction of advertisements and Previously he worked for Telephony, Telecommunications, and sponsored features in this publication does not in any way imply endorsement by Microwave Journal. He has also written for publications from Computer TeleManagement Forum or of products or services referred to therein. Weekly to the Wall Street Journal. www.tmforum.org / Perspectives / 3
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    • Contents Contents 9 Making time to sharpen the axe 32 Why real-time is the real thing Foreword by Keith Willetts, Chairman & CEO, TM Forum Tony Poulos and Tonia Graham The reluctance among network operators to transform The future of revenue management is about handling their back office as growth stalls, core revenues fall and transactions almost instantly – and being able to tell how mobile data surges is like the woodcutter who’s too busy well you’re doing it. The most effective way of doing this to sharpen his axe. is to benchmark key areas of performance against peers to prioritize and maximize investment. Introductions 36 Catalogs critical as industry enters new lifecycle 13 2010: The next odyssey in communications By George Malim Martin Creaner, President, TM Forum Product lifecycle management moves center stage in the As we start to emerge from the global recession, there is communications industry, as it has already done in so a profusion of threats and opportunities. Communications many other sectors, as time to market becomes critical. players need to make up their minds how and where they want to compete. 41 Get faster results by spending less time and money By Alun Lewis 17 Triple play is a long game The communications industry, which has contributed so Engineer Akil Beshir, Chairman, Telecom Egypt much to globalization, is seeing its own borders eroded. Tariffs have dropped to an alarming level in the Middle Service oriented principles can turn this situation into a East, hampering network investment. This is a time of win for communications service providers. consolidation in the region, and of building for the future. 46 Exposing assets to enable new services 19 The year of thinking differently By George Malim Ben Verwaayen, CEO, Alcatel-Lucent One of the key processes needed to enable two-sided There are many options open to communications service business models and other roles in the value chain is providers to go and grow with customers’ needs, none of migrating data from multiple sources. The need for which is about simply providing a pipe. standardized principles and best practices to do so efficiently is becoming urgent. Familiar Themes, New Twists 23 Where are we now? 50 Balancing bandwidth supply, demand and price By Annie Turner By Richard Handford Snapshots from around the globe question how fast 4G and fixed mobile convergence demand new business India’s mobile market is really growing and why prepaid and operational models. The bad news is this needs to is making big inroads in developed economies that has happen fast. The good news is they present operators nothing to do with recession. with the chance to develop new, revenue-generating services. 28 Commitment at the top impacts the bottom line By Dawn Bushaus 52 Waiting on the platform Managing the customer experience: a small percent By Susana Schwarz and Annie Turner improvement in customer loyalty can generate a big Confusion surrounds service delivery platforms, which increase in profits – what greater incentive is there to make is why TM Forum is developing its Service Delivery it happen? How will network neutrality affect services? Framework – after all, look what happened to IMS. www.tmforum.org / Perspectives / 5
    • Contents 57 Raising the standard in network security management 77 When access is like oxygen By John Williamson By Annie Turner Securing all-IP networks is work in progress, with much Future shock: why federated networks and services are achieved already and some clear ideas about what we the key to success when the entertainment, information need to do in the short and longer term. and communications industries’ business models are being destroyed by native web companies. 60 The toughest juggling act ever Cultural and business transformation is difficult to achieve, 80 When ads are apps the game changes but there is little choice for operators as core margins By Annie Turner are squeezed. Help is at hand, though, in the shape of Battle lines are being drawn in the fight for the massive, Frameworx. emerging mobile advertising market. As apps continue to grab headlines, how can the operators make money from New Horizons the new mobile ecosystem? 63 Seeing through the clouds 85 Avoiding the dumb pipe dilemma By Rob Rich By Rob Rich Cloud services are full of promise, but there’s lots to Adapting to market conditions and adopting new business do to release their potential – particularly concerning models is of course the short answer, but there are many interoperability, common standards, security and grasping factors to take into account and perhaps some unexpected a whole new business paradigm. outcomes. 66 Who goes there and there goes who? 88 The next 10 big things starting now By John Williamson By Karen E. Thuermer Identity management – controlling access to ICT systems Innovations that will have a big influence on our lives in – is big business, and growing fast as access to the the next five years, all around the globe, from clouds and Internet and myriad systems pervades more and more webs, to being online when offline, mobile payments and aspects of our lives. taking the tablet. 71 Cable blasts into telecoms 92 TM Forum Annual Report 2010/11 By Priscilla Awde The essential guide to what’s going on in TM Forum, There’s still great scope for growth in residential, small from the successor of NGOSS, Frameworx, to multi- companies and enterprise markets – and cablecos are on lingual training and events around the world, exclusive it, surging into what was the telecom heartland. in-depth and fast-take reports, benchmarking against peer organizations (anonymously, of course), major 74 Still standing at the crossroads collaborations between members from all over the globe By Ankush Cibber and our progress in new sectors including cable and IPTV and mobile TV searches are searching for viable defense. And much more. business models in the face of competition from over-the- top players. Much better marketing would be a good start. 98 Index of Advertisers 6 / Perspectives / www.tmforum.org
    • Foreword Making time to sharpen the axe A VERY WARM WELCOME much data). This begs the tipping point. It simply cannot to Perspectives, the TM billion dollar question, “What go on as it is. The rollercoast- Forum’s yearbook for 2010. happens when smartphones er that was started 20 years Since I wrote the introduc- are owned by the major- ago by a combination of liber- tion to last year’s edition, the ity?”. Android handsets are alization and the birth of mass year has flown by; I said then beginning to gain traction as market mobile is speeding up, it would be challenging, and many more models hit the making what has gone before it was. networks, including Google’s look pedestrian. In general the industry held own Nexus One, and there Consolidation in the up well in the face of global is much talk about dramati- industry is inevitable. Bharti economic crisis, but as most cally lowering the cost of Airtel has long been looking parts of the world emerge smartphones by the likes of for acquisitions outside its from the downturn, it is the Huawei, to make them more native India and, as we went over-the-top players who are affordable in developed and to press, it had bid $9 billion accelerating out of it, having developing markets. for Zain’s African proper- already shown an extraor- All of which has huge im- ties. Other groups that are dinary turn of speed during plications for core transport, likely to grow by acquisition the recession. For commu- backhaul and the radio net- include China Mobile, Qtel, nications service providers work, which will need huge Telefónica (which has many (CSPs), a lot of markets are investment to cope. In the businesses in Latin America saturating; there is little or meantime, it is Apple, Google and Europe), Telenor (which no growth (IDC is predicting et al who are monetizing the is very active in Asia) and growth of less than 2 percent mobile web, with Google in Vodafone to deliver share- in the coming year), tariffs particular storming into the holder value. are continuing to fall and, to mobile advertising market. Cost cutting is another cap it all, there is massive The anticipated revenues obvious approach and there growth in mobile data traffic. from location-based services, are some intelligent moves, A startling example is that MMS and mobile content such as O2 UK recently an- AT&T has experienced a have failed to materialize for nouncing it will outsource the 5,000-fold rise in data traf- CSPs, and the temporary ad- running of its network to BT. fic in the last three years, vantage gained by those who Across Europe, O2 and Voda- although only 40 percent got exclusive rights to the fone have said they will share of its subscriber base has iPhone will soon disappear. network sites where it makes smartphones (and by no It is clear that the commu- economic and operational means all of them generate nications industry is nearing a sense to do so and Vodafone www.tmforum.org / Perspectives / 9
    • Foreword is to do the same in Aus- networks (see page 80), but tion of our standards, better tralia. All of which is in the it is only part of the picture supporting their implementa- “This back office spirit of cooperation, in sharp and very early days too. tion, training, advice and help comparison to the corporate Nevertheless, as the paralysis among through our Communications raiding that went on just over need to find new revenues operators is like the Resource Center. 10 years ago. becomes ever more urgent woodcutter saying, Our recently announced This will add impetus to the and the obligation to invest ‘I’ve got all these Frameworx integrated busi- move among equipment sup- heavily in networks draws trees to cut down, ness architecture is another pliers to consolidate further. closer, it is not uncommon major step forward. Built on but no time to Already the likes of Oracle, to find the attitude that the solid foundation of the Amdocs, HP, Telcordia and transforming the back office sharpen my axe’.” industry’s leading NGOSS IBM are winning contracts (from an unwieldy collection platform, Frameworx is across the entire operator of disparate systems into a designed around service ori- groups as CSPs move away standardized set-up, which is ented principles and aligned from cumbersome bespoke cheaper and massively more to major IT standards such back office systems. There efficient to run and provision as Information Technology is broad recognition that new services on) is an unwel- Infrastructure Library. It is today’s market conditions do come distraction in a time of also compatible with recog- not allow the ‘luxury’ of time impending crisis. nised enterprise architecture or budget for building highly This back office paralysis methodologies such as Open customized approaches or among operators is like the Group Architecture Frame- supporting typical software woodcutter saying, “I’ve got work (TOGAF). Frameworx cost ratios of around 5: 1 all these trees to cut down unifies the existing Business between customization costs but no time to sharpen my Process (eTOM), Information and software license costs. axe”. (SID) and Application (TAM) Overall there is a great Agility, standardization and frameworks into integrated deal more fluidity than there flexibility in the back office target business architec- ever was previously about are key to CSPs being able to ture for 21st century digital what is done in-house and prosper – particularly across services. bought ‘off the shelf’. Exactly groups that grow by merger As the tipping point draws what the optimum balance is and acquisition, are mov- nearer, TM Forum’s primary remains to be seen. ing towards network shar- mission is to help its mem- TM Forum also welcomes ing, structural separation or bers restructure, transform the formation of a consortium outsourcing. Otherwise the and rebalance their busi- by 24 mobile operators plus underlying problem is just nesses, to ensure they come leading suppliers, the Whole- multiplied and the economies down on the winning side. sale Applications Commu- and efficiencies of scale can- nity. Their aim is to provide not be realized. developers with one-stop ac- In response to market cess to getting their apps to conditions and the needs of market by creating a single, our members, TM Forum uniform apps platform. This has been focusing on making kind of federated approach is implementation simpler and Keith Willetts key to operators overcoming more effective. We’re doing Chairman & CEO the geographic limits of their this by improving the integra- TM Forum 10 / Perspectives / www.tmforum.org
    • Introduction 2010: the next odyssey in communications TO SAY THE PAST 18 MONTHS it: Most have been unable to or mobile broadband connec- has led to soaring demand have been challenging would generate fresh revenue from tion fee. for more bandwidth. Serious be a gross understatement. new services. So on the one hand CSPs questions will, of course, Communications along with There have been a lot of have to develop and launch remain concerning handsets’ everyone else has suffered trials of new services. Many innovative services that will compatibility, backhaul re- from the deep recession, have been successful from delight and retain their own quirements and standards. although compared to some a user volume perspective, customers, and churn cus- TM Forum will be playing industries it held up well. The few if any have made the tomers from their competi- its part by defining some of perception of communications breakthrough into generating tors. On the other hand they the key standards for how the services as vital to everyday serious revenue. have to find business models new network equipment is life has largely spared our The staggering ‘success’ that coax their customers to to be managed – most likely industry from the blows that of the iPhone has generated expand their overall spending in a hybrid 2G, 3G, and 4G have been dealt to banking, a massive amount of data on communications services environment. Many CSPs are automotive, retail, travel and traffic, but very little revenue – particularly the ones that put planning to roll out commer- other market sectors. for the CSPs or most of the most strain on the networks. cial services in the back-half Now as we climb out of application developers. The At the same time, they have of 2010, and while some of this slump, the profusion of vast majority of the billions of to navigate the regulatory and these will slip into the next threats and opportunities applications that have been philosophical challenges that year, I expect to see some means that every commu- downloaded are free, and are tied up with the issue of a impressive launches. nications player has to think the consequent huge data neutral or non-neutral net. Another area that will broadly and rapidly about growth has been accom- Network neutrality is com- doubtless continue to be high where they plan to compete modated by fixed price plans plex and the single biggest on the hype meter is cloud in the changing communica- thereby creating serious issue facing the industry since computing or cloud services tions value chain. network issues for the CSPs, deregulation. I’m confident in (see article on page 63). While Surviving such extreme but little additional revenue. It predicting that it will not be some might dismiss cloud as economic conditions is an certainly is a conundrum. solved in 2010, but over the simply the second coming of achievement, but sharehold- Where does it leave the coming 12 months I expect the application service pro- ers expect their investments industry for the coming year? to see some very interesting vider model, I think this time to thrive. For communication The public is becoming more developments. around it’ll be much more service providers (CSPs) thriv- enamored of the fixed and relevant and will take off a lot ing means generating large mobile Internet, and more What’s hot for 2010? faster. Of course, there will streams of new revenue to demanding of their commu- In the mobile space, 4G (LTE be security concerns among replace the inexorable slide nications connections and and WiMAX – see article on large enterprises that are of voice revenue and margin. devices. Unfortunately, this is page 50) holds a lot of prom- nervous about parting with This is where the real chal- allied to an entrenched belief ise for large parts of the world their data, but most of these lenge is, and recent years that most of these services that either don’t yet have a 3G issues are ones of perception have shown that CSPs have should be free to use – bun- infrastructure or where the rather than technology and so singularly failed to address dled as part of a modest fixed proliferation of smartphones can be addressed. www.tmforum.org / Perspectives / 13
    • Introduction TM Forum has been paying Managing customer experi- as everyone attempts to find very close attention to cloud “I won’t predict ence is as old as telecom the sweet spot in this area. services, and during Man- itself, and has developed a Some companies, such as which approach agement World Americas in bad reputation as the topic Blyk, adopt a model where December 2009 we kicked off works best, but it that CSPs talk about most, the advertising is targeted the Enterprise Cloud Buyers is clear to me that but do least about. But this based on a user-defined Council (ECBC), an industry- the winner will be time I think the interest and profile. Others develop a wide organization whose aim the one that leaves concern is real, and I expect dynamic user profile built by is to remove impediments to the recipient of the investment dollars to fol- mining data from the users’ cloud technology adoption low this topic. browsing, calling and texting and the growth of commercial advertising viewing With the advent of more activity. I won’t predict which cloud services. The ECBC it as content rather and more complex services, approach works best, but it will initially be working on than spam.” distribution methods and is clear to me that the winner defining common terminol- value chain partnerships, will be the one that leaves ogy, governance models and operators have come to the recipient of advertising service level agreements for realize the strong correlation viewing it as content rather the procurement and delivery between customer experi- than spam. of cloud services. ence and profitability. They What makes cloud really are putting measures in place A front row seat interesting is that many TM to ensure customers are get- TM Forum plans to be there Forum members have a ting the services they paid for, every step of the way as the dual interest in it. Like any at the right price, without any industry navigates its way out enterprise, these companies hiccups. Allied to this is an of the recession and turns to can see the potential cost and emerging set of approaches standards, frameworks and efficiency benefits of using using policy-based manage- other supporting solutions cloud services, but many have ment and embedded probes, to reduce costs and risk, in- woken up to the fact that which allow a much more crease revenues and become they could be cloud service systematic and scientific ap- more profitable. providers too, providing infra- proach proactively to manag- Stick with us as we con- structure, solution platforms ing customer experience. tinue on the leading edge of or software as a service. This My final hot topic for 2010 all aspects of communications double-edged aspect means is mobile advertising (see – whether mobile, fixed line or that cloud computing will be- page 80 and also TM Forum cable – and newer areas such come a main plank of Forum Monetizing Mobile: When Ads as defense and government. strategy over the coming year. are Apps Quick Insights Re- No matter where you fall in Another key area for the port). With the level of invest- the value chain and what your coming year will be manag- ment being made currently by role is, TM Forum is the place ing customer experience (see key industry players such as to turn to keep you moving article on page 28). During an Microsoft, Google and Apple forward. attendee poll at Management in acquiring players in this World Americas, I was not space, we can be certain of surprised to find customer fireworks as each of these, experience at the top of many and many others, look to gain people’s list of concerns and a return on their investments. Martin Creaner issues that need to be in the I expect to see multiple busi- President spotlight. ness models being tried out TM Forum 14 / Perspectives / www.tmforum.org
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    • Introduction Triple play is a long game IT’S A GREAT PLEASURE across the Middle East, but problems with quality of to write a short opening movies alone are not enough. service caused by operators’ article welcoming you to TM The other big area is sports inability to invest in upgrading Forum’s Perspectives. The coverage, especially soccer. their networks. Middle East and Egypt have (In February 2010, Egypt won I also expect to see yet to see the end of the the Africa Cup of Nations and consolidation in the region financial crisis. At the macro set many new records on through mergers and acquisi- level, pre-crisis the region its way to victory.) We also tions. Some service provid- was booming, but now in need to Arabise content from ers simply won’t be able to Egypt we expect a growth elsewhere. survive on their own due to rate in gross domestic So content provision will increased competition and product (GDP) of 5 percent become our core business. also the crisis has made in June 2010, the end of our We won’t develop and create banks more difficult about fiscal year. it ourselves (a few operators providing lines of credit. In absolute terms this is a such as France Telecom have This is not bad news for good result and would be a attempted this), but we will the region, and certainly we real achievement for many work through partnerships expect there will be opportuni- countries, but it does not and there are lots of poten- ties for us to make acquisi- compare well with our recent tial partners to choose from, tions. We are already looking history. We really need 7.5 per- such as ART, Orbit, Show- for targets in the Middle East cent growth in GDP to drive time and Rotana. and North Africa that are either development and create jobs. We don’t expect to make integrated fixed and mobile op- In telecoms, 2010 prom- any money from triple play in erators, or mobile-only service ises to be a difficult year in the next three years, indeed providers. We are not interest- the region in general and we may incur a loss as it will ed in green-field licenses, nor Egypt in particular. We are have a long payback period. in fixed-only operators; that is seeing a slowing down in the But we think it’s very im- not our strategy. “We don’t expect growth rate of mobile and portant in the fight to retain In short, we think 2010 to make any money stagnation in fixed line de- customers as competition will be a tough year, but we ployment. Our great hope is becomes fiercer. expect to see the start of from triple play broadband, fixed and mobile, Already competition is some relief from the crisis in in the next three which we do expect to grow intensifying and prices have 2011. Our industry is chang- years, indeed we at a most reasonable rate. dropped to an alarming level ing fast all over the world and may incur a loss We also expect to see lots of right across the Middle East. changing lives too. From the as it has a long new services emerging as a Value is being destroyed for perspective of the Middle payback period. result, most of all triple play. operators to the extent that East that change has never The challenge here is it will affect their ability to been more exciting and But we think it is to source enough Arabic expand and modernize their challenging. very important in content. Egypt itself has a networks, and to invest in the fight to retain big movie industry and the customer service. In the near Engineer Akil Beshir customers.” films made here are popular future I foresee a lot of Chairman, Telecom Egypt www.tmforum.org / Perspectives / 17
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    • Introduction The year of thinking differently THIS YEAR, 2010, IS AN differently, and we want it in erators could earn money this Apple are the ones geared exciting year in our industry. an all-you-can-eat package. way or that, but actually there up to do all that, but there People communicate in a The business model is are only two real questions. are a lot of things network different way than they ever clear from the consumers’ The first is to establish what operators can do to add value did before and this is present- point of view. They know their business model should if they want to. ing great challenges. Phone what price they are prepared be and the second is how to Service providers have a calls, fax and email all revolve to pay – little or zero. The differentiate themselves from choice. They can choose to around words and the net- same cannot be said for the competitors. These are what run a utility business very effi- works were designed for this. network operators’ business matter. ciently if that’s the best route Now suddenly communication model. They built the network There is no single answer to for them, and there most is about collaboration, two- for words and then broadband either question. The head of certainly is a market for it. way exchange of non-verbal and backhaul to deal with a large network operator said Or they can think different- information including pictures large amounts of data. Then to me recently, “I do the best ly. That their migration path and most of all, video. all of a sudden consumers vanilla ice cream, but now I’m involves meeting different Welcome to the next gen- are eating huge amounts of being asked to do another 48 customers’ needs. For in- eration. It’s great, but it puts bandwidth. Smartphones that flavors.” That’s true. Web, stance: managing your social a huge amount of pressure are always on; peer-to-peer content and device compa- network for you; making sure on service providers because communication has expanded nies like Google, Disney, and you are secure in everything what we expect from them massively, and there is more you do; creating location-type has changed too. Yes, we and more video. services; ensuring continuity want what we always got If five years ago people between your business and from them, that is reliability, could’ve seen what’s avail- private life and leisure time; or security and safety – in fact able to them today, they’d “Service providers connecting your car via LTE so we take those things for have been willing to pay for it, can go and grow that it’s a part of the network. granted. but things happen in stages with customers’ In other words, service pro- But on top of that we want and they certainly won’t pay viders can go and grow with needs. All these the Internet in the palm of our now. Customers’ perception customers’ needs. All these hands. We expect always-on and experience is key, and things are possi- things are possibilities and activity wherever we are and service providers have to live bilities and none none of them is about simply the same experience every- with that. of them is about providing an access pipe. where. We don’t want to There is huge debate about simply providing an remember different pass- what to do. Thousands of access pipe.” Ben Verwaayen words or to have to behave people say that network op- CEO, Alcatel-Lucent www.tmforum.org / Perspectives / 19
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    • Global Snapshots Where are we now? IN 2010, WORLD GROWTH 10 percent, India 8 percent, A virtual, whistle-stop tour of the world, will be led by emerging Russia 5.3 percent, Brazil 4.8 comprising snapshots of what’s going on in market consumers. Morgan percent), up from 1.6 per- different regions or countries that illustrate, or Stanley forecasts 4 percent cent in 2009. A rebalancing global gross domestic product towards domestic demand-led sometimes alter, our impression of the overall (GDP) growth this year. How- growth in [emerging markets] picture there. At the very least, they present a ever, this number conceals is well underway.” The report starting point from which to gain a more two very different situations. concludes, “growth in emerg- in-depth understanding of local markets. For developed economies ing economies has staying growth of 2 percent in aver- power and has even been age GDP is expected in the bolstered by the crisis.” By Annie Turner G10 economies. The U.S. will lead with Emerging energy growth of 2.8 percent, the What does this mean for European Union is expected the global communications to grow by less than half that market? It will continue to rate (1.2 percent), while Japan expand, with emerging mar- will hardly grow at all (0.4 kets offsetting the spending percent). deceleration in advanced However, the outlook for economies, according to Mon- emerging markets is more ica Zlotogorski, editor of TM positive, where Morgan Stan- Forum’s Inside Latin America ley forecasts “output to grow and vice chair of TM Forum’s by 6.5 percent this year (China Latin America Advisory Board. www.tmforum.org / Perspectives / 23
    • Global Snapshots The growth of wireless services in emerging mar- "3G networks and kets will compensate for the mobile data services slowdown in the advanced economies. The expansion of will prop up the the mobile sector in emerging worldwide telecoms markets has been a key build- market, prompting ing block to economic growth, it to grow at a 6 so one supports the other. percent compound The analyst firm Analysys annual growth rate Mason predicted in October 2009 that 3G networks and to reach $2.4 trillion mobile data services will prop in revenues in 2013." up the worldwide telecoms market, prompting it to grow at a 6 percent compound annual growth rate (CAGR) to reach $2.4 trillion in revenues in 2013. subscribers in January 2010, fallen dramatically, with up will graduate to the largely The firm also reported that to bring the total to more than to 12 competing operators in contract-based model of mobile data traffic will grow at 545 million, which equates to some areas of the country. richer countries as they de- a 131 percent CAGR through a mobile teledensity of over A large number of the SIMs velop. Zlotogorski thinks this 2013. The key cause for this 46 percent, according to the are so-called lifetime cards is wrong-headed and argues growth is the expected 3G Telecoms Regulatory that are considered active that developed markets will network deployments in many Authority of India. even when they are not, while also see a shift towards emerging markets, such as Churn could be more of an analysts said some newer prepaid, even after the China and India, in addition to issue here too than is widely operators are also sending economic crisis recedes. Long Term Evolution deploy- understood, despite the lack SIMs to retailers that have There is considerable ments in mature markets of number portability. At the been activated before they evidence to support her during the next few years. beginning of March 2010, the are sold to end-users. view. For instance, Pyramid Zlotogorski writes, “In sum- Financial Times reported that Syed Safawi, president of Research predicts that over mary, more people will have the true number of Indian wireless at Reliance Com- the next five years we will access to the Internet in the mobile phone users is up to munications, India's second see more than 90 million new next 10 years, the Internet 40 percent lower than official largest mobile operator, was mobile broadband subscrip- will be wireless, and most of numbers suggest. As the quoted saying, "It's for compa- tions in Europe. Pyramid thinks the growth will come from newspaper said, this raises nies like us [to work out] how prepaid broadband will play a emerging economies. Conse- questions over the true extent we can leverage [multiple big role in this growth, since it quently 2010 will be remem- of India's telecoms boom and SIMs] to our advantage." He has a large addressable market bered as the beginning of the the valuations of its wireless estimates the ratio of SIMs to in high income markets with mobile Internet being driven operators. user in India at about 1.25. developed fixed broadband by emerging markets.” Phones have just come infrastructure (predominantly onto the Indian market that Under-valuing prepaid Western Europe) and in low- India's reality check allow the user to swap SIM Prepaid fuels the growth in income countries where there India is still the world’s single cards, hence Indians are buy- emerging markets and is is a lack of fixed broadband fastest growing market; ing multiple SIM cards to get often viewed as a hallmark (Central and Eastern Europe). it added nearly 20 million the best deals. Prices have of less mature markets that Operators that have 24 / Perspectives / www.tmforum.org
    • Global Snapshots invested heavily in 3G and are loyalty to network providers, to know where to sign up. the deal would reduce costs. now beginning to invest in 4G they’re more interested in Using advanced OSS tools to "To maintain our competitive- need to make sure that they trying out the next big thing. reduce prepaid churn and also ness going forward in the get the most revenue from In Zlotogorski’s words, “they the percentage of inactive medium and long term, it is that investment. are of a prepaid mindset”. customers is the route to an of the essence that we end Operators are skilled at She argues that prepaid improved bottom-line in these up running an integrated postpaid mobile broadband doesn’t mean less opportu- difficult economic times.” operation," he said. offers, Pyramid states, but nity. For example, it opens up prepaid mobile broadband is the doors to more options to Far from Slim pickings Latin financial services new. Success will depend sponsor mobile products and The world’s richest man (ac- In Latin America the payment on pricing mobile broadband services. She adds, “Clearly cording to Forbes in March preferences of mobile users perfectly in relation to two there’s a greater need for 2010) is concentrating on is being explored as a route factors: Its affordability in more operational flexibility, scale and integration better to to new services. NovoPay- relation to disposable income efficiency and adaptability oppose his nearest competi- ment, the region’s biggest and the availability of fixed than ever before. We are in tion, Telefónica. Mexican prepaid card issuer, forecast broadband, according to the great need of a new business billionaire Carlos Slim is to that Latin America's pre-paid, research house. model that can support such merge his assets across the general purpose, reloadable Neil Heyes, regional substantial transformation. Latin American region to cre- mobile and utilities card member development CSPs from the U.S., Western ate “a massive and integrated market could be worth nearly director, Europe, TM Forum Europe and some developed fixed/mobile group in most of $160 billion a year by 2015. comments, “What we offer countries in Asia may have a the area's countries, some of This growth will be driven our members is not necessar- lot to learn about surviving in which are seeing high mobile by the mechanism for prepaid ily about differentiation – one a prepaid/low ARPU type of growth”, according to Caro- being extended to a general broadband offering is much scenario.” line Gabriel, head of research, purpose payment instrument. like another – it’s about Rethink Wireless. NovoPayment’s CEO, Anabel helping them streamline and Churn, churn, churn Slim's main vehicle is Amer- Perez stated, “Prepaid general- run a more efficient business Wally Swain, SVP Emerg- ica Móvil, Latin America's larg- purpose cards are a value so they have the resources ing Markets, Yankee Group, est cellco by subscribers. This proposition for mobile and utili- to dedicate to ways of agrees, pointing out that will now acquire his Telmex ties service providers and their differentiating themselves.” “churn management becomes and Telmex International units, customers because they create IDC pointed out that during an even more critical issue… which provide mainly fixed loyalty, improve margins and the first part of 2009, the top Prepaid churn management is line services in Mexico and connect the region’s largest 10 cellular carriers in the U.S. all about using sophisticated much of the rest of the Latin consumer group – which added just under 3.5 million data mining and customer America, respectively. make up the base of the pyra- retail net subscribers. Out relationship management Gabriel reckons this will mid – to a modern payments of these, 75 percent were techniques to target offers give the combined entity huge and services infrastructure.” prepaid users, which in total that appeal to a particular economies of scale, plus the make up 19.2 percent of the client’s profile,” in a recent ability to offer flexible com- 20 take control subscribers for the top 10 column published in TM binations of fixed and mobile That mobile services are carriers in the U.S. Forum’s Inside Latin America. services to drive ARPU and increasingly a business of This is because the profile He added, “This is the oper- customer uptake – an advan- scale is underlined by the fact of phone users is changing. ating system software (OSS) tage already gained in many that the top 20 global cellco Those born after 1995 grew challenge; as penetration markets by Telefónica. groups now control 57 per- up with the Internet and rises, growth slows and it is Carlos Garcia Moreno, cent of all the world's mobile don’t want to be bound by no longer sufficient to merely America Móvil’s finance connections. In summer 2009 contracts. They have no hang out a sign for clients director, told Bloomberg that Gabriel cited figures published www.tmforum.org / Perspectives / 25
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    • Global Snapshots by Wireless Intelligence that Middle East and Africa revenues, according to Ballout. Operators are showed these top 20 carriers As 2008 gave way to 2009, He thinks the arrival of a have about 2.4 billion connec- the African land grab slowed slew of Android handsets in finally beginning tions, spanning 118 of 223 of down and investors started 2010 will have a profound to see some of the countries it tracks. to take African markets more effect, with the advent of their suppliers China Mobile leads the field seriously, concentrating on web-enabled phones for $30. as partners. For with 11.5 percent of global providing coverage rather than “Even Nokia has bought into instance, Etisalat connections, at 479 million – simply obtaining operating it. Web 2.0 is not a promise, almost twice that of Vodafone licenses, according to Nasser but imminent via mobile, and is in negotiation Group, which has 247 million Ballout, membership develop- the other most important with companies like subscribers across 19 mar- ment associate, Middle East, development after Android Apple, Research kets where it holds a majority TM Forum. this year is the arrival of the in Motion and stake in a cellco (10 of these He says that while previ- cloud (see page 63). These Google because are in Western Europe, the ously operators concentrated two things together will drive it recognizes others spread around Eastern on urban areas, now they are profound change,” he claims. Europe, India, the Middle East turning their attention to sub- Another important develop- the market is and Africa). urban and rural areas; a good ment is that, “Operators are changing…” In close contention for example is Etisalat’s build out finally beginning to see some third and fourth places come in rural Nigeria. of their suppliers as partners. Telefónica and América Móvil of While Africa’s astonish- For instance, Etisalat is in Mexico (which controls Telmex). ing growth defied the global negotiation with companies These two operate in 13 of slump, growing faster than in such as Apple, Research in the same markets, and boast any other region of the world Motion and Google because 190.1 million and 174.9 million since 2003, the United Nations they recognize the market is connections respectively. Conference on Trade and changing, the value chain is The rest of the top 20 in Development (UNCTAD) said changing and so are their roles terms of total global mobile in October 2009 that urgent in it. Etisalat recognised that connections is as follows: action is needed to improve in two years’ time, providing China Unicom, Deutsche Africa’s slow, expensive voice services would not be Telekom/T-Mobile, Telenor, Internet access. An UNCTAD enough, so it is working on MTS of Russia/CIS, Verizon report found monthly broad- transforming its business. If Wireless, France Telecom/ band access in Burkina Faso, you want an iPhone, you have Orange, pan-Middle East and the Central African Republic to sign up for a data plan.” Africa group MTN, AT&T, and Swaziland is the most ex- He concludes, “The real Telekomsel of Indonesia, pensive in the world, costing innovation is about how to Telecom Italia, Russia's more than $1,300. deliver services efficiently, in VimpelCom, Weather Invest- In mobile, content is begin- particular it’s about controlling ments Group (controller of ning to make its presence felt costs intelligently and time to half of Orascom plus Wind, in Africa, with sales of games, market, although it is hard to TIM Hellas and others), an- ringtones, music downloads overestimate the boost given other Middle East and Africa and so on growing, and now by the FIFA [soccer] World giant Zain, Reliance of India, accounting for 2 to 3 percent Cup which is being held in Orascom (its direct hold- of African operators’ total South Africa in summer 2010. ings), and with NTT DoCoMo income, while all non-voice Sponsor MTN started building bringing up the rear on 54.7 activities account for between out additional infrastructure million connections. 8 and 12 percent of their total early in 2008." www.tmforum.org / Perspectives / 27
    • Customer Experience Management Commitment at the top impacts the bottom line A small percent improvement in customer loyalty can generate a big increase in profits – what greater incentive is there to make it happen? By Dawn Bushaus LYING AWAKE ONE NIGHT to learn by watching videos unable to get to sleep, Steve of interviews with custom- Oldham, CEO of California- ers describing their service based integrated communi- experiences. cations provider, SureWest “Steve approached me Communications, had an with this idea, and now each inspiration about how to im- quarter, I go to a customer’s prove his company’s custom- home or office with a camera- er service. Oldham thought person and interview them his employees might be able about their experiences with 28 / Perspectives / www.tmforum.org
    • Customer Experience Management our services,” says Ron service groups during the capture and archive all of the Rogers, SureWest’s director past year, and the company details of customer interac- “The big focus of corporate communications. has launched a new program tion with service reps. This “I interview two satisfied and called SureWest Pro, which is how service includes recording the conver- two unsatisfied customers.” aims to educate customers providers can sation as well as logging all SureWest management then who are purchasing new use the web and screen shots associated with shows the videos at quarterly services from the company. other self-service the call. “We can go back employee meetings. channels to improve and recreate the call to see if “The impact of these Follow-up visit pays something has happened with the customer videos has been amazing,” The SureWest Pro program the customer that represents Rogers states. “Employees sends a second SureWest em- experience.” a broader issue we need to see firsthand what makes our ployee to the customer’s home let everyone in the company customers happy as well as after a technician has installed customer service agents that know about or whether it’s the impact we can have on a new service. This ‘pro’ shows aggregates account just a coaching opportunity our customers’ lives if we do the customer how to use new information from multiple for a particular service rep,” not do our jobs right.” equipment, such as a televi- databases. Called Grand Slam, Oberg explains. SureWest understands the sion remote, and educates the system pulls customer relationship between custom- the customer about the new information, such as a list of Social networking’s role er satisfaction and profitability bill. SureWest provides the all products and services used Both SureWest and Comcast – a relationship the TM Forum service free to all double and and a history of calls to the have embraced social net- details in its recent Insights triple play customers. customer service center, from working as a way of improv- Research Report, Customer So far, the program has several OSSs and presents ing the customer experience. Experience Management: translated into a 10 percent it in a single view, explains Comcast and its director of Driving Loyalty & Profitability. increase in customer satis- Jenni Moyer, senior director digital care, Frank Eliason, are The connection is quantifiable. faction for all new customer of corporate communications widely credited with starting Bain & Company research installations, Oberg says. “We for networks and operations the corporate trend of using shows that a 5 percent know we have added a layer at Comcast. Twitter to communicate with improvement in customer of cost with SureWest Pro, The system, which can customers. loyalty can increase profits but the benefits far outweigh be accessed by Comcast’s Eliason and his 11-member by as much as 75 percent for the cost of providing it.” 16,000 technicians in the field Digital Care Team sift through companies in a wide range of through handheld wireless de- Tweets and blog posts daily industries. Biggest obstacle vices or laptops, also presents looking for satisfied and dis- “Clearly, the cost to keep TM Forum’s research shows a real-time view of service satisfied customers. Since a customer is significantly that one of the biggest performance in addition to starting on Twitter in April lower than the cost of ac- obstacles to providing a historical data. 2008, Eliason’s team has quiring a one,” says Karlyn positive customer experience On the heels of this and fielded more than 120,000 Oberg, VP of administration at is poor integration between other network operation public Tweets and 60,000 SureWest. Oberg declines to processes, systems and data center investments, Comcast private direct messages, specify how much SureWest in service providers’ back introduced a customer Moyer says. spends to acquire a new cus- offices. “Most service provid- promise in October that Social customer relationship tomer, but several communi- ers are held back by their includes a 30-day money- management, or social CRM, cations industry estimates put fragmented OSS/BSS silos, back guarantee for all new is one of the topics at the the price tag at around $400 which prevent a holistic view products and services, a $20 top of the list of this year’s each – a number that can of the customer and also bill credit for late or missed focus areas for TM Forum’s increase dramatically if a com- stifle agility to respond to appointments and access to Managing Customer Experi- pany has to buy a competitor new customer needs – sim- free services if a customer’s ence Program, says program to add customers. ply unacceptable in today’s problem is not resolved after director Stephen Fleece. “That’s why customer environment,” the Insights the first attempt. “The big focus now is figur- satisfaction and churn reduc- Research Report states. SureWest also has been ing out how service providers tion are so important,” Oberg U.S. cable operator Com- working to improve its back can use the web and other says. In an effort to reduce cast has attempted to address office. The company devel- self-service contact channels churn, SureWest has added this issue by developing a oped an internal software to improve the customer employees in its customer new desktop portal for its application that allows it to experience and lower the www.tmforum.org / Perspectives / 29
    • Customer Experience Management cost of providing service,” ence management and define its Customer Experience Fleece explains. he adds. “That’s particularly specific metrics for measuring Program, which focuses on For the coming year in important for younger cus- the customer experience. the lifecycle of a customer addition to social CRM, ad- tomers who prefer to use the TM Forum service pro- relationship beginning with dressing the proliferation of web rather than picking up a vider members including shopping for a service and complicated mobile devices is phone or going into a store.” BT, Telefónica, TeliaSonera ending with the customer a top priority for the Manag- TM Forum started the and Turkish Telekom worked leaving the relationship or the ing Customer Experience Managing Customer with vendors such as Nokia service provider phasing out Program, Fleece adds. “We Experience Program early Siemens Networks to develop a product or service. believe there is a coming in 2008 to help CSPs figure a service provider model for “This lets us look at all of smartphone crisis. As more out what it takes to manage customer experience that was the touch points a service users buy smartphones and the customer experience based on an auto industry provider would want to netbooks, they are strug- end-to-end, including across model, Fleece says. identify, measure and manage gling with how to use them networks. Phase I of the pro- across the customer lifecycle effectively and how to fix gram, which was completed Product lifecycle and tie that back to the widely problems,” he says. “CSPs in 2009, set out to model best TM Forum has been work- adopted TM Forum Business will have to manage that practices for customer experi- ing to wrap up Phase II of Process Framework (eTOM),” complexity.” Will net neutrality help or hinder the drive for improved customer experience? When it comes to providing of Proposed Rule Making on issue of net neutrality directly a three-strikes rule, a service a rich customer experience, Preserving the Open Internet, in the law, a compromise provider can disconnect CSPs often argue they need Senator John McCain deal struck by lawmakers a user from the Internet to be able to prioritize traffic introduced a bill in Congress essentially opens the door if copyright violations are on the Internet so that called the Internet Freedom for network operators suspected, such as illegal file they can manage delivery Act, which, if passed, will to manipulate Internet sharing. of services such as voice prevent the FCC from traffic, explains Monica Citizens’ opposition to and video end-to-end. But enacting its rules in 2010. Horten, a veteran telecom such a rule caused a six- that position leaves CSPs “Unfortunately for journalist and PhD candidate month delay in the passage at odds with proponents of consumers, net neutrality researching copyright of the Telecoms Package. net neutrality, who believe creates some obstacles for protection. Ultimately, the issue was the Internet must remain a CSPs to manage end-to-end Wording inserted into the resolved with another best-effort network where no service quality, particularly law as part of an amendment compromise in the law traffic receives preferential for services like video,” allows CSPs to inform their stipulating that the Internet treatment. says Fleece. “It essentially customers in contracts of user must be granted a The regulatory climate prohibits them from using “conditions limiting access court hearing before being for net neutrality varies the capabilities of modern to and or from services and disconnected. depending on where a networks to discriminate applications,” Horten says “In my opinion, if service service provider operates between traffic and improve quoting the text of the law. providers are just trying to globally. In the U.S. the the customer experience.” “Effectively, it means service make sure that the traffic debate heated up in providers are not prohibited gets through the network as October 2009 when the Contrast in Europe from restricting access to a efficiently as possible, then Federal Communications By contrast, the regulatory service,” she says. it is reasonable that they Commission (FCC) proposed climate in Europe may have Some attorneys are arguing should be allowed to manage rules that will prohibit turned favorable for network that the service provider traffic at a technical level,” Internet service providers operators with passage of a clause in the Telecoms Horten comments. “But it is from blocking content revision of a pan- European Package actually supports not reasonable for a service and prioritizing traffic. The Union communications law the “three-strikes” copyright provider to choose what rules will apply to wireless called the Telecoms Package infringement provisions someone may see or not broadband networks as well in November 2009. Although advocated by European see, and it is not acceptable as traditional wireline. In the European Parliament did governments such as for them to block content or response to the FCC’s Notice not set out to address the France, Horten adds. Under charge extra for it.” 30 / Perspectives / www.tmforum.org
    • Webinar Title: Reliability, Scalability, Increased Revenue: Monitoring Ethernet Backhaul Services
    • Revenue Management Initiative Why real-time is the real thing Breaking down the old back office barriers has been one of the communications service providers’ greatest challenges. In the two years since the Global Billing Association transferred its activities to TM Forum, the transformation of business systems software/operations systems software has been its main driver. By Tony Poulos FOR MANY YEARS, BILLING the need for some sort of too. They are sourcing content for post-paid customers lived revenue assurance process. and applications from third in its own little world, nestled The greatest shift occurred parties and have to account somewhere between IT and when pre-paid billing was for them and settle with their finance. introduced, which meant partners across value chains. Its main role was to everything had to be rated in In other words responsibil- mediate switch call records, real-time, or near real-time. ity for charging accurately is supplied by operating system This shifted the billing shared by many people across software and magically trans- process much more firmly the organization, not just the form them into chargeable into network operations billing department. records that could be rated activities which sometimes To reflect that, the latest and compiled to produce a caused friction with traditional releases of key standards bill. The bills were printed and billing and business systems and best practices have been mailed to customers. software (BSS) teams. updated to account for the In the days when there was new scenarios and bring the only one service to bill, usually Revenue loss danger NGOSS program up to date voice, the process was rea- Today, services are delivered with TM Forum’s new Frame- sonably straightforward, but across a mix of platforms worx Integrated Business as more services came along including service delivery Architecture (see page 92). these processes became platforms, application servers The teams within the Forum’s more complex. Legacy billing and next generation networks, Revenue Management Pro- systems that could not rate all distributing the charging gram have been instrumental the new services were often function ever more widely. In in defining these new process- supplemented by ‘adjunct’ addition, legacy technologies es, applications and interfaces. systems that fed the ‘main’ such as time division mul- Managed as part of the system at billing time. tiplexing mingle with these Forum’s Online Communities, The more systems were newer approaches creating a there is also considerable introduced, the greater the real danger of revenue loss at cross-team activity: Revenue chance of records (and revenue) every turn. is the main driver for being being lost. This spawned ‘con- Communications service in business and it touches vergent’ billing systems that providers’ (CSPs) business almost every element of a could rate multiple services on models are becoming more CSP’s operation. one platform, and underlined complicated and distributed Starting with the integration 32 / Perspectives / www.tmforum.org
    • Revenue Management Initiative of the Global Billing Asso- eters could be as simple as Business benchmarking for revenue management ciation’s Billing Map into the a monthly subscription to Business Process Framework something as complex as Revenue Management is a insights into best-in-class (eTOM), the activities have bundling by time, number of focus area for TM Forum’s billing and revenue assurance. now expanded into defining programs used, data storage, Business Benchmarking. The The table below shows best practices, guidebooks, processing power, bandwidth Forum conducts three or studies planned for 2010. white papers, maturity mod- consumed and so on. These more studies a year to provide els, training courses and a charging paradigms also need sophisticated set of published to account for the cost-base, Billing performance benchmark key performance indicators or payables, that a third party linked to a number of power- is supplying to ensure margin Runs over the winter ful benchmarking programs is maintained. (see panel opposite and on Perhaps the most inter- New metrics to capture hot topic of e-Billing and e-Payment page 34) available to TM esting and difficult charging Forum members. concept CSPs are moving to is real-time charging for all Revenue assurance maturity model survey Never-ending story customers. This requires the Billing is a never-ending story; convergence of the pre-paid Runs in the spring as quickly as new technol- systems and the post-paid Valuable maturity model survey, proven to have high ogy arrives to provide faster rating and billing engines. The correlation to strong Revenue Assurance Performance speeds and greater band- level of convergence and the width to networks, CSPs are means to achieve it will vary adopting new services that from operator to operator. Revenue assurance performance benchmark invariably require new charg- Those with a predominantly ing methods. A good example post-paid base might opt to Runs over the summer of this is the move to cloud keep account balances in that Measures Revenue Assurance performance on revenue based services (see article system, whereas a pre-paid recovery and leakage prevention on page 63) that is viewed by dominated operator may many CSPs as a means prefer to maintain balances on of avoiding becoming a its network based systems but Like all Business Bench- Close scrutiny of the data commodity bit carrier. utilize the advanced rating and marking studies, participants enables the right investment Hosting cloud services and bundling features of the post- receive a personalized report decisions. providing the optimum com- paid system. Whatever level showing their performance Participation is free to munications infrastructure is of convergence is achieved against that of the other par- TM Forum service provider challenging, but determining doesn’t matter as much as ticipants as well as an account members. how to charge for these ser- being able to charge for every to the query side of the highly For more information about vices and settle with partici- service delivered in real-time. secure web portal. Your ac- Business Benchmarking and pating delivery partners will This is not only important count in the secure web portal how you can participate contact stress revenue management in minimizing exposure to provides an opportunity to fil- benchmarking@tmforum.org techniques even further than bad debt but provides a great ter results by region, company today. The charging param- service to customers who size and other parameters. Tonia Graham www.tmforum.org / Perspectives / 33
    • Revenue Management Initiative might be prevented from simply running a business pre-paid balance that can be rather than paper. trying services by fear of and running one optimized for used for purchases. These are By providing Forum amassing large bills. This ‘bill profit. As the average revenue all elements of the revenue members with cost-saving shock’ phenomenon has again per user (ARPU) continues to management value chain and business cases, convinc- made headlines as users of decrease, optimization will be are reliant on both network ing marketing approaches, smartphones are surfing the a critical additional weapon and charging elements being environmental impact studies Internet in their home country in the revenue assurance aligned to succeed. and access to the technol- and while roaming, often arsenal. Despite the move to pre ogy to make e-billing simple assuming that their flat rate and post-paid convergence, and effective, the Kill the Bill billing plan extends overseas. Paying a premium smartphones, Internet access campaign is beginning to gain Being able to offer custom- Another weapon will be the and a digital world, the some ground. It still needs ers advice of charge before, move to profiling all customers industry continues to send much wider support to be during or after a service is in order to personalize their customers paper bills. truly effective. consumed also provides the experience. Advertisers are at Over the past couple of operator with a case for non- last seeing the value of mobile years, the TM Forum’s Rev- repudiation in disputes over push advertising and are will- enue Management Program billing and bill shock. Allowing ing to pay a premium if their has launched a Kill the Bill people to set their own limits target market is clearly de- campaign to persuade TM is another benefit. fined. Only CSPs, particularly Forum’s members and the Knowing what a CSP’s ex- mobile operators, can achieve industry in general to ac- posure to debt is, in real-time, this and combine it with celerate the move to greener is the difference between spending patterns and even a and cheaper electronic bills Seeing the relationships When people think of Bill preparation time benchmarking, the immediate thought is comparative data Leading Average Lagging on best-in-class performance. Certainly, understanding the 0.12 days 2.68 days 10.00 days time required to generate bills Source: TM Forum Business Benchmarking 2009 for display or dispatch is one of the benefits of the Billing capability while the average spot but are very revealing. times to prepare bills. Performance Benchmark. is close to three days. For example, the correla- Conversely, leading CSPs It is a good indicator of However comparative data tion in the chart above shows have either or both good a CSP’s ability to produce is only half the picture. The strong alignment between process maturity and/or bills quickly. The table below other half is seeing potential the cost of running the billing relatively efficient systems shows leading CSPs are relationships across perfor- process and processing time enabling them to run fre- twice as fast as those lag- mance areas. Our correlations required to prepare bills. CSPs quent billing cycles while ging. The leaders are clearly highlight relationships that can with high cost of billing also keeping costs down. Those at or close to a real-time otherwise be very difficult to typically have long process with newer systems are in a stronger position to deliver SPa SPb SPc SPd SPe SPf SPg SPh SPi SPj SPk the newer services. This B-OE-2a Avg Avg Avg Avg Avg is useful information when Time to Lead Lead Lag Lag Lag Lag Lead Lead Lag Lead Lag you are evaluating your BSS Prepare Bills evolution plans. B-OE-1a Avg Avg Avg Avg Avg Cost of Billing Lead Lead Lead Lag Lag Lag Lead Lead Lag Lag Lag Process Tonia Graham Source: TM Forum Business Benchmarking 2009 34 / Perspectives / www.tmforum.org
    • Sponsored Feature The challenge for mobile operators in an industry moving towards convergence Antonia Walter-Krisch, VP Marketing grips with this type of business model. and Communications Advertising services, IPTV and other B2B business models, such as machine-to- In the past decade telecommunications novatively package, price and support machine, will also present different types have become the nerve system of the these services in a way that provides of challenges that need to be supported world. The number of mobile subscrip- real value to the subscriber. At the same by increased flexibility in the BSS. tions worldwide has grown to 4.6 billion. time, operationally, it makes little sense Finally, subscribers themselves will de- Mobile broadband has changed the to maintain multiple service-specific mand a different type of communications industry and analysts believe that we systems. experience: they will expect personal- will see 3 billion new mobile broadband Even if operators find it difficult to ized experiences based around their subscriptions within the next five years. move directly to full convergence, many lifestyle and behavior patterns. Business This situation poses many challenges insist on seeing at least a clear evolution- intelligence combined with powerful for communications service providers in ary path towards it. Over the next few predictive analytics, integrated into the satisfying their customers’ needs: opera- years it is likely that most of the remain- charging and billing environment will be tors in emerging markets primarily need ing greenfield operators will launch their vital to delivering this experience, ensur- solutions for managing their growing businesses based on fully convergent ing subscribers receive information about subscriber base and voice traffic. Opera- systems and, even more significantly, the right promotions and services at the tors in mature markets however need incumbent operators will increasingly con- right time and in the right location. solutions for managing their subscriber verge their charging and billing systems. In summary, it is true to say that effec- base in mobile broadband and to enable As more and more service providers tive billing and customer care systems new multimedia services and new busi- plan to converge their charging and bill- have become a strategic and indispen- ness models. Any solutions offered must ing systems, cost reduction is becoming sible asset for telecommunications be cost and energy efficient, future-proof an increasingly important driver. This providers, enabling them to introduce and multi-technology, to enable operators was made very clear in a recent study new services, products and tariffs quickly to gain flexibility, reduce their operating which concluded that charging and billing and flexibly. Only companies that can expenses and improve their efficiency. systems convergence can enable cost continuously adapt their business model A further near-term challenge for savings of up to 20%. to rapidly changing industry and mar- many service providers is the ongoing All of this will of course have signifi- ket conditions can keep up with their migration to converged all-IP broadband cant implications for the ICT industry, for competitors. Faced with these dynamic networks, combining broadband Internet, service providers’ business models and markets, BSS vendors need to be able to voice and video traffic. Increasingly, the for the BSS solutions they need. Busi- provide both the right solutions and help boundaries between the telecommunica- ness models will change, including the deliver them. tions, media and Internet industries are introduction of new players into the value Providing the right solution involves becoming less clear-cut. The conver- chain. Thus charging and billing systems following a clear roadmap, demonstrating gence of technologies (such as mobile, need to be increasingly powerful due how future market needs will be support- fixed and IP) is being further driven by to the complexity of some ‘behind the ed by future products and how a migra- the continued consolidation within the scenes’ business models that will need tion from an operator’s current system to communications industry, the rapid to be supported. future releases can be managed. Vendors uptake of consumer multimedia services These will include a range of content must also be able to support the service and the increasing emergence of multi- partners, each with different business provider and facilitate the transformation play offerings. terms to be supported. Although opera- it has undertaken. This is fundamental to This poses a challenge for operators: tors have been working with content pro- any strategy of helping service providers convergent Business Support Systems viders for a number of years, the evidence to achieve a fully convergent charging (BSS) are required so that they can in- suggests they still have not fully got to and billing environment.
    • Product Lifecycle Management Catalogs critical as industry enters new lifecycle By George Malim FOR THE COMMUNICATIONS construct new services – and Product Lifecycle Management has been used in industry, deployment of critically be reused – time other industries for many years. As the number Product Lifecycle Manage- and time again to speed new of services escalates and their shelf-life shortens, ment (PLM) is a challeng- service introduction. ing process. Uniquely, the Among the many challeng- service providers too must adopt elegant ways industry needs to access data es they face is the need to do of accessing the data they hold to introduce new from disparate systems that this effectively and in a timely services faster and more efficiently. TM Forum cannot necessarily be easily way. “Time-to-market is criti- is supporting their initiatives to make the most integrated. In an ideal world, cal in the communications in- of what they’ve got and look to a future service communications service dustry but accuracy is just as creation and delivery environment through its providers (CSPs) could access critical,” says Ernest Margitta, Information Framework. a range of building blocks marketing director, Tribold. that could be drawn down to “Inaccurate or misaligned 36 / Perspectives / www.tmforum.org
    • Product Lifecycle Management product information between derstanding service providers’ business processes and billing, customer relationship attitudes to and their need structured components to management (CRM), order- for PLM. “People look at a maximize compatibility ing and provisioning leads product as a set of operational with long term reference to higher channel costs as issues around network architecture,” he says. disgruntled customers try equipment and are much to align the offer advertised more interested in the ‘deploy Catalog as enabler against what is appearing on and operate’ phases of PLM,” Yogen Patel, VP of mar- the bill.” he says. “However, there is ket and product strategy, That emphasis on time- wider work we are undertak- information management, to-market is just one facet ing in understanding PLM as Convergys, attaches the of the changing nature of a process that encompasses same importance to product product lifecycles. Historically, the entire life of a service and service catalog solutions products were deployed with from concept to retirement.” working hand in hand with no thought to lifecycle. After Tying PLM to an accurate PLM. “If PLM is a process all, a service such as voice product and service catalog and an approach, catalog is has no retirement strategy to is the critical means by which an enabler of that approach,” be taken into account – the it can be accurately and ef- he says. “It would be difficult lifecycle is open-ended. That fectively used by CSPs. “It’s to adopt PLM without an en- approach is no longer suit- absolutely critical that PLM abler to support that. Catalog able; the game has changed, systems have the information is a key enabler. Catalog has perhaps to how a product can they need and that it accu- to allow layered modeling be launched, run and retired rately reflects what is in the and the use of underlying in three months. network at the time they’re elements. It defines service making their decisions,” adds building blocks and enables Speedy components Dilbeck. usage in different ways.” Breaking the service into com- He continues, “It is very Dilbeck urges wider under- ponents provides the means important they have an standing of what a catalog to accelerate that process. understanding of the non- or repository can achieve: “Using a componentization operational aspects of those “It seems to be a crucial approach to product and ser- services so they can do element, but in order to be vice delivery brings benefits service composition and effective, information has to in the original time-to-market understand what the rules be understood.” and radical improvements dur- are in terms of what they can To this end, TM Forum has ing the maintenance and retir- and can’t do with current sys- two initiatives underway, the ing of products – an element tems. Understanding what a catalog team and a broader of PLM sorely neglected in construct needs to contain initiative called Service De- the CSP market today,” adds so that it can be constructed livery Framework (SDF). The Margitta. “Service providers properly and be a well be- two are working together and often face IT delivery costs haved service is critical.” while catalog is highly tactical, for maintenance and retiring Margitta reckons that this SDF is broader in scope. that are almost as high the type of approach to PLM, Margitta also thinks there “Catalog has to original launch phase. Tribold’s combined with product and is widespread “chaos” within allow layered customers have been able service catalog, is a means by product and service manage- modeling and the to reduce maintenance and which service providers can ment. Tribold categorises this use of underlying retiring costs to near-zero, drive costs out of the process chaos as a series of business supported by automated and compete. “From a cost- challenges. These include: elements. It defines launch and integration directly to-market perspective, this dispersed and unsynchro- service building into the back office.” approach delivers reduced nized product and service blocks and enables For Kenneth Dilbeck, direc- operational and delivery information; the absence of usage in different tor of technical programs at costs – by up to 80 percent – a single view of products and ways.” TM Forum, it’s a case of un- reduced complexity of services; lack of control over www.tmforum.org / Perspectives / 37
    • Product Lifecycle Management product design, creation or to compete with third parties ognized the value of the In- reuse; and the lack of a stan- in providing applications and formation Framework a long dardized definition of products ‘mash-up’ services. “Apps time ago, Tribold also saw and services. mash-ups are an issue,” says the advantages of certifying This chaos is compounded Dilbeck. “But the reality is the compliance of its soft- by current systems only en- that it occurs outside the ware solution to the latest abling a slow, costly time-to- carrier environment today. release of the Framework. market for new products and In the future they want that To that end, we collaborated not allowing CSPs to build tri- capability so they can bring with TM Forum in forming ple or quad play offers. Often their network and internal and verifying the process of there is little or no integration capabilities to this. That is for certification. This resulted between systems, revenue the future and it’s crucial.” in Tribold being the first leakage throughout the order- For Patel, the Forum’s software solution provider to to-cash flow process and no Information Framework (SID) achieve the Certified Compli- performance analysis. is a critical enabler. “If the ance Mark for the Forum’s Patel sees a similar issue assumption is that to deploy Information Framework.” in the disconnect between PLM processes effectively the information systems hold across the business, you Extending SID and their inability to link that need to ask what representa- Dilbeck is engaged in the information with services. tion of that you are going to large job of extending the “Across the entire Business have. SID provides a broad, Information Framework to Support System base (BSS), canonical representation of meet new requirements. most information exists but it product data. Not having that “From a tactical perspective, is somewhat disparate,” he broad representation would we’re looking at what exten- says. “For instance, some of create pain.” sions need to be added to it is in CRM and some of it is He continues, “SID address the immediate need in ordering or within fulfill- provides the template. You to interact between the SID ment or pricing and setting may still need to transform and product catalog. There tariffs in the billing system. and implement systems that will also be additional work The problem today is those can be used, but not having as we broaden the lifecycle systems are not connected that common information to encompass concept to cleanly and not linked effec- model would involve great retirement. Logical exten- tively. The information exists deployment challenges. SID sions will come. The core but needs to be brought is the first step towards full value proposition of SID isn’t together.” adoption of PLM and the TM changing, it is just extending Dilbeck agrees saying, Forum is really helping.” into this problem domain and “Service providers have 80 to Margitta acknowledges, we’re making adjustments to 90 percent of the information “SID has emerged as the de- handle its specific needs.” they need in their invento- facto information standard in The work ahead is big in ries. However, the concept the communications industry. scale and scope but, with ac- of composition and rules are, Tribold has encountered nu- curate data from existing sys- in current environments, not merous questions from the tems exposed and effectively something that has been con- market and customers about feeding through into the sidered at the design stage. our product’s compliance to product and service catalog, Service providers have large Information Framework SID. service providers will be able amounts of information – a lot Service providers are increas- to compete with a raft of of which they can’t get at – ingly using SID compliance new and different services. but they don’t have all of it.” as a distinguishing feature They will have very different This renewed focus is nec- between solutions.” lifecycle profiles than those essary because CSPs want He insists, “Having rec- that have gone before. 38 / Perspectives / www.tmforum.org
    • Service Oriented Enterprises How to get faster results by spending less time and money SERVICE PROVIDERS ARE With that as the back- It’s ironic that an industry that’s contributed so facing the commoditization ground, it’s hardly surprising much to globalization should now be dealing of traditional voice and data that in recent years the services as well as increased communications industry and with an erosion of its own borders. Software- competition. They are turning its relatives have looked to based services are blurring the internal and to advanced services to drive exploit the potential of ad- external lines between system and process, future profitability. Software vances in software engineer- while the need to recruit partners to offer new rather than the underlying ing – specifically service services has speeded up. TM Forum’s service network is increasingly the oriented principles offer oriented Frameworx offers the solution. source of end-user services, the potential to support the with key components such as greater openness and rapid content or applications being systems development de- By Alun Lewis supplied by partners. manded by the market today. Success or failure will lie in the ability of service provid- Scaling SOA ers to create an environ- It’s of strategic interest to ment where they and their more than just the commu- partners can rapidly create, nications industry that TM manage and monetize Forum has announced the end-user services across release of Frameworx, the complex value chains. next evolutionary step of its www.tmforum.org / Perspectives / 41
    • Service Oriented Enterprises popular NGOSS industry road- an excuse for an operator to nimble strategies and tools map and standards package. avoid such technology trans- are needed. Frameworx uses service formation – just the opposite, Service oriented principles oriented principles and is as this can be one of the main involve decomposing com- Iinformation Technology Infra- drivers to decide it.” plex processes into loosely structure Library (ITIL) compli- By using an SOA Accel- coupled ‘services’, which ant. It is an integrated busi- erator – compliant with TM can be thought of as building ness architecture, that is the Forum standards – Mobitel blocks. They can be combined blueprint for the development believes that it has attained to build new functionalities in of the service oriented en- several important benefits. a fraction of the time usu- terprise (SOE). This is where They include less time and ally required. In this context business process, information, cost to implement, and re- the term service refers systems and people combine duced effort, achieving better to elements of business in a modular fashion to enable compliance with key Frame- functionality, not end-user rapid end-user service creation worx components such as the and deployment. Business Process Framework Numerous vendors are also (eTOM), the Application “Primoz Rozman, head of billing at Mobitel taking the same route with Framework (TAM) and the their product portfolios. A Information Framework (SID). in Slovenia, showed how his team had good example of this, which But what does a service combined SOA principles with Forum helped steer the TM Forum oriented approach involve standards to resolve a number of strategic down a service oriented route, and what is new about the business and technology problems.” was highlighted at Manage- concepts? ment World in Nice in 2009 when Primoz Rozman, head of Service orientation services. These services then billing at Mobitel in Slovenia, Systems and processes in employ ‘contracts’ which are showed how his team had communications were, like the interfaces that form the combined SOA principles with the underlying network infra- basis of their interaction with Forum standards to resolve a structure, essentially linear, other services, resources and number of strategic business two-dimensional and largely processes. and technology problems. closed to the outside world. This approach allows the The range of systems Now, the industry has to SOE to source these ser- involved was broad, including deal with a multi-dimensional vices both within and outside order fulfillment and provision- business model where data the enterprise, enabling the ing functions as well as sys- and revenues may be flowing construction of end-to-end tems used to support prepaid in several different directions services across a partner top-ups via external partners, simultaneously – between value chain. It demands a mobile payments, and integra- customers, partners and standardized approach to how tion with financial systems. other service providers. This services are defined and inte- In addition, interworking is all against a backdrop of grated. The SOE also needs between IBM Websphere and uncertainty. a high level of automation of SAP/BEA systems was sup- In this context, it has business processes that span ported successfully. become clear to the industry the value chain. Summing up, Rozman that its time-honored, almost It’s easy to see how such stressed, “The fact that craft-based approach, to an approach fits well with the the business and technical systems development can more promiscuous commer- environment is constantly and not be supported for much cial and technical environ- rapidly changing should not be longer and that newer, more ments that service providers 42 / Perspectives / www.tmforum.org
    • Service Oriented Enterprises now operate in, where the its partner value chain. business and system bound- enterprise applications wallflower unwilling or unable From a technical perspec- aries in response to chang- coming from outside the to engage with a widening tive the Integration Frame- ing commercial situations service provider or different circle of partners will find work provides a unifying necessarily involves more tariffs or services or themselves limited to being a function in Frameworx. It real-time interworking when bandwidth bundles can be dumb bit carrier. takes the key elements from it comes to things like billing created and delivered.” The boundaries between the Process and Information and policy control. different systems and busi- Frameworks and binds them He says, “If you look at the Bullish ness entities must become together to form sets of stan- Service Delivery Platform area Suppliers are also bullish more permeable if new value dard Business Services being and the execution of real-time about the opportunities is to be created and that exposed to and/or consumed applications and applets, these emerging out there as Gordon extends to interworking with by applications in the won’t be using SOA as such, Rawling, senior marketing Web 2.0 and ITIL concepts Application Framework. but will need to expose their director, Oracle comments, as well as newer network Business Services share a “Like many TM Forum components such as IP multi- lot in common with NGOSS initiatives, there’s a leading media subsystem (IMS – also contracts which they re- “TM Forum will group of service providers see article on page 52). place. In addition to defining define a repository who see this as a key tool in standard interfaces or APIs of standard Business their transformation jour- Key components from the TM Forum Interface ney and the maturity of the Frameworx maintains TM Program, they include busi- Services or reference solutions are being driven by Forum’s established Business ness rules and policies that implementations, these early adopters. We’ve Process, Information and govern the use of the Busi- along with an auto- certainly seen a considerable Application Frameworks while ness Service. mated means for recent increase in requests extending the Integration The TM Forum will define the creation of new for proposals (RFPs) with an Framework, previously known a repository of standard Busi- SOA element and these as the Technology Neutral ness Services or reference Business Services currently make up about half Architecture, to enable the implementations, along with for Frameworx.” the total that we see.” creation of a true SOE. an automated means for the It’s not just in the service “At the core of Frameworx creation of new Business services to the SOA environ- and application areas however lies two key concepts, a Services for Frameworx. ment. This in turn naturally has that benefits accrue from this platform-based architecture an impact on the responsive- approach, as Hamid Modar- and a Business Services Wider vision ness of the services and, while ressi, VP, Aricent, explains, repository,” says John Reilly, Many vendors are keen to SOA works at the application “One recent project that a distinguished fellow of the support this wider vision as level, it’s important to rec- we did involved field force TM Forum. Business Services an essential means of coping ognize that the actual imple- management for a service represent a standardized, with the increasing complex- mentation involves a real-time provider who was adopting a functional building block, ity of business processes and environment.” triple play strategy. It needed such as ‘allocate resource’, the supporting technologies. The importance of dealing to allow its engineers to ac- or ‘notify alarm’, which are This is especially true in areas with the policy element is also cess multiple new and legacy specified independently of where network resources highlighted by Chris Hoover, support systems in a very their end-use. Competitive such as mobile bandwidth VP, product management at reliable and scalable way to advantage is derived from the are becoming stretched and Openet; “SOA definitely sup- guarantee a good customer service provider being able to greater flexibility and speed ports increased commercial experience.” create new end-user services are required to support policy creativity and agility. You also Here too SOA/SOE dem- by combining these building management. need to see it in the context onstrated its flexibility and blocks in unique ways, and For Graham Cobb, director of a wider service oriented de- applicability, and will do so in to orchestrate the business of service delivery marketing livery discipline and how the many more contexts in the processes dynamically across at Telcordia, the blurring of integration of new third party coming year. www.tmforum.org / Perspectives / 43
    • Sponsored Feature If you don’t manage your customers’ data experience, someone else will The rapid adoption of mobile broadband A new approach to managing broad- a user who’s experiencing a slow device data services presents wireless carriers band data services on a wireless network which seems to be with new revenue opportunities but Mobile data networks are complex, with running correctly. There are a number of also with new business challenges. many moving parts (devices, applica- reasons why the user could be experienc- In recent interviews1 of senior execu- tions, multiple connections, etc.). In fact, ing poor performance on an otherwise tives from 22 mobile network operators they have more in common with a typical faultless network, but the most usual are around the world, four main challenges enterprise IT environment than the opera- that the device is too busy processing emerged in the wireless broadband data tor’s traditional voice service. To effec- information to send or receive data (de- space. These were: tively address the customer satisfaction vice congestion) or that it is infected with and business challenges in their mobile malware. If the CSR had access to some • declining customer profitability; broadband businesses, and to understand device-specific data, the problem would • increasing customer churn; where/when to invest in new services, be seen immediately. • declining customer satisfaction; operators need to adopt a completely new • rapidly rising mobile infrastructure approach to managing mobile broadband 2. Provide the right information to the and support costs. services – an approach that encompasses right people at the right time in the three major principles: right form The situation is further complicated by the fact that, more and more, it is 1. Start with the only perspective that A wide range of information is required for the device companies (RIM/Blackberry, really matters – the end users’ effective service management: iPhone, Google-Android, Palm, etc.) that are defining the customer experience, The mobile user data experience is not a • The contact center needs detailed, real- leaving even less room for operators to measurement but a perception of end-to- time information on individual users to add value and provide differentiation. end service quality that individual mobile help diagnose immediate problems and broadband customers develop about their proactively call struggling users; In addressing these challenges, opera- personal experience on a specific service • Operations needs real-time information tors are finding that the standard model or application. To truly understand the data on cell performance in specific geo- used to manage mobile voice services experience of individual customers, pro- graphic areas; simply does not work with mobile viders must have full visibility into what • Sales and marketing needs information broadband data services, because exist- worked properly, what failed, when, why that summarizes what users were doing ing (network-centric) management tools and how frequently. Customers will use yesterday, last week and last month; only provide metrics on overall network all of these symptoms to develop their • Executives want an overview which performance and a “top-down” aggre- own perceptions of their experience with summarizes the overall health of the gate view of subscribers. mobile broadband services and, most business. These metrics can provide very mis- importantly, to decide whether they stay leading results in a mobile data environ- with you or move to a competitor. Role-based reporting turns raw data into ment. For instance, take the case of The obvious next question is: “If you valuable business intelligence by present- a user who calls the contact center to can’t measure the mobile user data ing the information in a form that best report that his/her device seems to be experience, short of asking each and meets the business’ needs. running slow. The CSR will check the every customer, how can you determine Again, let’s take the initial example of a standard reports – device status, cell whether it’s good or bad?” device which seems to be running slow. availability, network outages, etc. – and IP-based data traffic contains a wealth The question for the sales and marketing sees that “all lights are green.” They tell of information about the mobile user, the departments is: “Is this just one user, or is the user that there’s no problem, and device being used and the services being this particular type of device prone to con- the user becomes frustrated and irri- accessed. This can be pieced together to gestion or malware?” Instead of wading tated. Not a good customer experience! give a very comprehensive and surpris- through pages of individual statistics, they ingly accurate view of the user’s data want a summary report by device. Com- experience. Take the earlier example of puware’s Vantage for Mobile solution, for
    • one at a time and it’s not always obvious which to fix first. So it’s critical to prioritize problem resolution based on the potential business impact of the problem, not just on a ‘first come, first solved’ basis. For business unit owners, typical concerns are questions such as “Are we delivering what we advertise?”, “Which services are underperforming?”, “How many users are being impacted by a prob- lem?” and, most importantly, “What is the revenue impact of the problem?”. Being able to link technology problems back to business impact is generally Figure 1: Device Usage Report referred to as business service manage- ment, and it is notably lacking in many service management solutions for network operators. When implemented correctly, it provides huge benefits to both the op- erational units (they know which problems to fix first), and to the customer-facing business units (they know where to focus customer retention and acquisition efforts, and where to invest in new services). Conclusion The mobile broadband data business is a fast-moving, highly competitive market- place. Operators are facing core business Figure 2: Executive Dashboard challenges which require a completely different way of looking at customers, instance, can take this data and aggregate tion to CSRs and operations engineers, their interaction with the network and the it into a meaningful display. aggregated views to sales and marketing, impact of those interactions on business Figure 1 shows that some devices are and dashboard views to executives. Every objectives. The old metrics, based solely much more prone to congestion than report can be customized; new reports on network performance, cannot provide others. This provides valuable insight into can be built to meet users’ exact needs; the information that’s necessary to im- which devices provide the best experi- and information can be included from prove profitability and cut costs. ence and which do not. legacy systems to provide a complete To reduce customer churn, operators Similarly, executives are concerned with 360-degree view of the business. need to increase customer satisfaction broader trends in the business and need with mobile data service. The new world is dashboard displays that are much more 3. Align service KPIs to key business all about managing from the only perspec- intuitive and readable. Figure 2 gives a goals and objectives tive that really matters: the customers’. typical high-level, executive view. Vantage for Mobile offers a highly flex- Service quality directly or indirectly im- References ible solution to providing the right data pacts everything from brand reputation to 1 Mobile Data Service Providers: Struggling to the right people at the right time. It market share and an individual subscrib- with the Customer Data Experience can provide byte-level, real-time informa- er’s experience. Problems never happen (www.compuware.com/validationreport)
    • Data Migration Exposing assets to enable new services By George Malim With little appetite for total back office upgrades, a new layer that allows data from disparate systems to be exposed to create new service is needed. Standardization of the principles along with best practices for the migration of this data are becoming an urgent necessity. COMMUNICATIONS SERVICE disparate amounts of data providers (CSPs) need to must be extracted from sys- provide new services, often tems across their businesses. in tandem with bringing new With the appetite for the full network technologies into scale replacement of systems their operations. They have to diminished or gone, service come up with innovative ser- providers are looking for a vice bundles to differentiate means to expose the data themselves, decrease churn such services comprise into and attract new customers. a new layer of product and The challenge is that creating service catalogs. CSPs have the services means large and neither the time nor invest- 46 / Perspectives / www.tmforum.org
    • Data Migration ment to develop these solu- For Gareth Senior, CTO, Sometimes it’s as if they’re tions for individual services Comptel, it’s more a case of hoping for a panacea in that and particularly not for the catalogs providing the best overlay. You can have the many lower value services means to bring new services greatest order automation they expect to launch. to market. “While we’d love products, but if your network Consequently data has to to see large scale consolida- inventory management and be exposed, migrated and tion and rationalization of your processes for data applied in a reliable, replicable existing systems there really governance are poor it will be and consistent way. Migrat- is no business case and it’s fruitless.” ing and applying data is a too risky,” he says. “These The big challenge remains serious challenge for CSPs are career-breaking decisions how to migrate and ap- and the focus has shifted to and in a lot of cases we’re ply data to new services. the most pragmatic means of seeing such approaches “Catalog and order manage- doing it – by implementing a almost ruled out.” ment success comes from layer of order automation, and positioning the catalog where product and service catalogs. Changed thinking different Operational Support This would allow enable them CSPs aren’t just specifying Systems (OSS) investments to expose critical data to this a catalog and hoping for the come together,” explains Se- new, interface layer thereby best, though. They’re using nior. “Operators have OSS in- enabling service creation and the catalog approach as a vestments in delivering DSL, delivery based on a reusable, means to change their way of dial tone or messaging, for modular approach. thinking about the structure example, and as you move “There has been a rise in of their systems. “Custom- to an all-IP environment and the number of applications ers are taking it a step further Long Term Evolution, you that focus on product and than just implementing the need to look at how to create service catalog in the last few catalog,” says Elaine Haher, hybrid bundled models.” years,” explains John O’Reilly, director, product manage- He adds, “The catalog story TM Forum subject matter ex- ment, Telcordia. plays well into that because pert and distinguished fellow. “They’re focusing on it can bring in new services “Many of them use TM Forum understanding how you get from third parties and other Information Framework (SID) to a modularized way of order internal areas. We’re seeing as the foundation for their management. They don’t people willing to invest for information model because of want spaghetti codes of busi- new business lines, but there the SID’s inherent, sometimes ness processes, they want to are few projects saying let’s called dynamic, extensibility. know how to take products, have wholesale data migra- “CSPs aren’t just “Vendors in this market services and resources and fit tion.” Rather, “It enables you specifying a catalog include Tribold, Conceptwave, them to their existing struc- to expose the services your and hoping for Telcordia, Amdocs, Conver- ture,” she says. existing OSS gives you then the best, though. gys, and Comptel. These Her colleague, Tim Ma- incorporate that into hybrid They’re using it as applications focus on provid- nahan, VP of consulting, products with newer invest- ing a single catalog across the Telcordia, points out there are ments. It provides a point of a means to change enterprise as well as resolving limitations; “Service providers consolidation between OSS their thinking about the debate around who owns want to use what they have investments and network the structure of the catalog – order manage- as opposed to taking on a domains,” he asserts. their systems.” ment, assurance or billing.” big transformation initiative. For O’Reilly, interoperabil- www.tmforum.org / Perspectives / 47
    • Data Migration ity is critical. “Many of the inventory solution may not service providers still rec- applications use an integra- satisfy all the functional and ognise the need to change. “SID provides an tion framework – such as an data requirements of various There’s an increased reliance Enterprise Service Bus or hub- information and data network technologies.” on some of TM Forum’s work and-spoke approach – to sup- reference model, That federated and con- because people know they port interoperability between and a common solidated view cannot easily need to change and change in the catalog management vocabulary to sup- be constructed in a uniform a standard way. There is still application and others that port standardized way for the reasons that a siloed structure out there require catalog information,” O’Reilly gives. However it but IT is truly replicating the he says. “Two key challenges migration of data.” can provide value in having business requirements and are: The reluctance of vendors a standardized approach that everyone is rowing in the that have a catalog application makes a layer composed of same direction.” embedded within their order multiple catalogs applicable TM Forum’s Information management, assurance, and to multiple applications and Framework is a key part of billing applications; and the their requirements. the Forum’s overall Business different data requirements of Architecture called Frame- these applications.” Too big a bite worx, designed to help ensure It is those different data “Standardization of the way cost effective implementation requirements for specific you expose data is one of with minimal risk or disruption applications that create so the biggest challenges,” as well as providing the flex- many of the challenges that says Senior. “Having a single ibility to suit a range of service an overlay layer presents. catalog would be nice but, provider OSS strategies. Network inventory manage- in this climate of adversity, it “The various frameworks ment, for example, involves is too risky. One catalog fits (see article on page 92 for many different and overlap- all is too big a bite so we are more information) can be ping data sources which need seeing investment in spe- implemented incrementally as to be exposed to such a layer cific domains. Now it’s more they all are structured to be in a way that is standardized important to demonstrate that highly cohesive and loosely so that the information can several catalogs can inter- coupled,” explains O’Reilly. be made available to multiple operate with each other and “A SID-based ODS can be service as they emerge. demonstrate that hierarchical used as part of an application catalog structure.” convergence strategy mov- Federate and consolidate This is where initiatives ing to SID-based Application “An Operational Data Store such as the TM Forum’s Program Interfaces (APIs) by (ODS) can be used to federate Information Framework (SID) wrapping current APIs with a and consolidate the data from comes in. It provides an in- SID-based layer.” multiple sources to provide a formation and data reference That type of approach pro- single view of network inven- model, and a common vocab- vides the building blocks ser- tory while leaving the current ulary to support standardized vice providers need if they are applications intact,” explains migration of data. “We’re to reuse processes to build O’Reilly. “An ODS does not getting a lot of traction on many services. It enables preclude the fact that clean- service factory and the TM them to construct new ser- ing, redundancy resolution, Forum SID product/service vices and get them to market and business rule enforce- infrastructure,” says Haher. quickly and make operational ment must be taken into ac- She continues, “People are cost savings. For service pro- count. It may be the best ap- starting to pay attention and, viders that combination is the proach since a single network even in poor economic times, name of the game. 48 / Perspectives / www.tmforum.org
    • Sponsored Feature 2010 and beyond: Emerging Trends with CSPs at the Helm How do communications service providers have undoubtedly pushed the consumer is to optimize the subscriber experience (CSPs) transform business delivery to make appetite for seamless application content through a consolidated approach to BSS. it more agile without having to undergo a – immediately pulled from and pushed One that unifies the large number of business “makeover” (operational systems onto the “network.” service orders and workflow processes, overhaul), to take advantage of emerging while providing the front-end flexibility to business requirements? Emerging Trends – It’s about YOU – rapidly modify offerings. The Coveted Consumer/Subscriber A unified product and service catalog How do CSPs better orchestrate the The experience of application driven approach enables CSPs to better or- service provisioning process, end-to-end, services and instant provisioning are key chestrate the service provision process. with less effort, greater speed, agility, and factors that will drive the need for swift, A complete order and product lifecycle higher ROI – all with increased customer flexible, tailored product and service management solution allows end-to-end satisfaction and loyalty? provisioning. And all while ensuring visibility and tracking, cutting across “flawless” back-end execution, fault multiple business units. As product of- How do CSPs leverage their existing correction, and metrics visibility combine fers are rapidly changed and must be put investments and align with corporate to ensure one thing: an exceptional end- into production due to competing offers, strategy amid a challenging economy while to-end consumer experience. service orchestration can occur with positioning business to succeed in 2010 As, Chun-ling Woon, VP Business much greater speed, agility and fewer and beyond? Development and Marketing at Con- mistakes – translating into higher ROI, ceptWave states there are four business with increased customer satisfaction and Acute changes in the global economy have mantras for 2010 that will shape this a better end-consumer experience. This caused CSPs to rethink and alter their busi- decade for CSPs. They are: engenders consumer loyalty. ness practices as they now stand poised to Consumer-centric – The desire to By using a unified product and service meet the challenges and market opportuni- engender loyalty and create “sticky” catalog approach, CSPs can leverage ties of this decade. customers who love your products and their resource investment. They can services, through a consumer-centric better align with corporate strategy by The Issues at Hand experience that is second to none, amid rapidly changing, executing and assuring Today’s CSPs are undergoing a resurgence multiple offers from different providers. order fulfillment, based on consumer- to accelerate new and advanced services Application-centric – The ability to centric market needs. to market. At the same time, they are enable consumers to experience rich, rel- After all, in 2010 and beyond, it’s pressed to contain operating costs amid a evant, targeted content seamlessly pulled about you – the coveted consumer and challenging economy and customers who from and pushed onto the network cloud. subscriber! often refuse to “pay more” for new offers. User-centric – The flexibility to roll Services offered today have critical busi- out products and services that enable About Us: ness requirements of aggregating, coordi- end-users to quickly and painlessly tailor ConceptWave is a leading provider nating and managing orders and inventory product offerings to their specific needs of lifecycle management solutions across multiple external business channels – even after the product bundle has been that allow global multi-play CSPs and and internal business units. With order delivered. operators to rapidly introduce new fallouts at an all-time high and constant On-demand – To access, change, provi- market offers. Our catalog-driven business pressures to lower fulfillment sion, view, modify content and services order fulfillment solutions enable cus- and service delivery costs, today’s service on the fly – however, wherever and tomers around the world to introduce providers are constantly seeking ways to whenever the end-customer wants. complex multi-product and service better orchestrate the provisioning process offers in record time, translating into and manage the customer experience, A Solution Perspective: Unified increased revenues, reduced operating while protecting investment. Product and Service Catalogs costs, and highly satisfied, loyal end- And let’s face it: products like the One approach to transform business consumers and service subscribers. iPhone and other mobile experiences delivery and address emerging trends www.conceptwave.com
    • 4G/Fixed Mobile Convergence Balancing bandwidth supply, demand and price Mobile network operators cannot continue with flat-rate data plans as their primary charging mechanism as data volumes soar. New, 4G technologies are at hand to help – WiMAX and LTE – but sustainability demands new operational, business and pricing models. The bad news is that there isn’t much time to get them in place. The good news is they offer network operators the chance to offer new, revenue-generating services. By Richard Handford WIMAX NETWORKS ARE service (QoS) at a premium. whether a tiered service as has been done by Amazon being rolled out now and LTE This could generate additional would appeal to many users: with its Kindle e-reader. roll-outs will begin at the end revenue, but the difficulty is “While there is always a Users pay for the content of 2010. Network operators incorporating net neutrality group who is willing to pay rather than network usage, must do better at develop- and privacy regulation into any top dollar for a premium while Amazon acts like an ing business models and service that prioritizes one set service I would say in general mobile virtual network opera- operational thinking than with of data packets over another. that’s a very small and volatile tor, buying 3G data services 3G. They need to manage There is also the ques- group,” says Bohdan Za- from AT&T in the U.S., in bandwidth more efficiently, tion of whether mobile bawskyj, CTO of Redknee. what is assumed to be a and develop a persuasive operators could guarantee a Zabawskyj prefers a pricing profit-sharing agreement. new pricing model that will particular QoS for a group of model where the cost of This works for AT&T not result in clogging up their customers. Ashvin Vellody, the transport is incorporated because data usage by the networks. The second part senior VP of research with into the price paid by the Kindle is relatively small, cer- will be harder. the Yankee Group, says it’s end-user for content. The tainly compared to an iPhone. Offering LTE as premium- tough but possible: “The content provider is paid by The business model is flexible priced, unlimited services disparate pieces of enabling the end-user, and passes on enough to allow the Kindle to is not the answer. Services technology exist to make that the payment for data usage roam on 3G networks outside such as high-definition video happen, but operators have to the communication service the U.S., without the user would replicate the discon- too much information that is provider (CSP). incurring direct roaming fees. nect between revenue and not integrated to help them This situation could change traffic that exists today with make real-time decisions. It’s Profit sharing rapidly, though, if Amazon is 3G networks. imperative this approach is The model could be applied pressured into turning Kindle An alternative approach is given a fair shake with 4G.” to individual items such as into a broader multimedia to offer guaranteed quality of Some are sceptical about films, or to an entire service device in response to 50 / Perspectives / www.tmforum.org
    • 4G/Fixed Mobile Convergence competition from Apple’s backhaul costs are largely figure it out,” says Aditya CSPs can join the consortia iPad, say. borne by the user’s fixed Kaul, ABI’s practice director that are coming together to Others argue users are broadband line rather than for mobile networks. pursue such opportunities, realistic about pricing and them. The fact that femtocells Operators also need to look but some will need to change open to offers. A survey, con- also gives them the oppor- closely at how they manage their mentality to function ducted among 3G European tunity to offer new services traffic on their 4G networks. well in vertical markets. users during October 2009 (its tends to be overlooked. “Once upon a time an op- Operators are accustomed findings can be applied to 4G However, U.S. research erator managed a wireless to working as stand-alone too), found many users willing firm ABI halved its previous network and had wireless entities with a straightforward to accept some limits on their prediction for the number expertise. Or they managed customer ownership model. bandwidth usage in return for of femtocells that would be a fixed network and had fixed Vertical markets require them a manageable bill. shipped during 2009, citing network expertise. Now these to act as part of wider groups, The survey, commissioned high retail prices and CSPs’ things are blurring together,” possibly with no direct control by Camiant, a U.S. vendor concerns about interference says Marie Murphy who is over customers. of policy control software, for lower than expected leading TM Forum’s Managing The business model is new found users are prepared to take-up. New Technologies Initiative. to operators too, involving cope with less bandwidth The researcher is more LTE is an all-IP technology forms of revenue sharing. in the event of exceeding optimistic about the future. and the Forum’s new initiative “It’s basically a new capability their monthly data allocation, It reckons 40 million femto- aims to standardize interfaces they need to develop. These provided they are charged cells will be deployed globally that will allow end-to-end are the challenges they are less than at present for by 2014, a figure that is still management of all-IP, facing,” says Siggins. the additional, lower-speed down on its previous converged networks more bandwidth. Twice as many estimate, but only by about easily and cheaply. users preferred that option 10 percent. By 2014 though, New sources of revenue to the current model where ABI argues 4G networks will are essential too. One option users can rack up big bills be much more prevalent and is to offer WiMAX and LTE in by exceeding their monthly femtocells will be making an a more targeted way to large allowance. impact. enterprises. “We work in “Essentially what this band- financial services and health- width limit does is control the Femtocell coverage care, which recognize the op- applications that put pressure Equipment suppliers are portunity in mobile business on the network. If no one ever talking about various reve- enabled by wireless broad- used video then this would nue-generating scenarios if band,” says Peter Siggins, not be as nearly big a problem femtocell coverage becomes a mobile specialist with PA as it is right now,” says ubiquitous with 4G. A daily Consulting. Operators should Randy Fuller, Camiant’s VP of newspaper could be deliv- start thinking carefully about business development. ered electronically to a user’s the opportunities in vertical phone (or e-reader or tablet) markets, he says. Tiered pricing when they enter a building In financial services, some The vendor is working on with femtocell coverage. Or mobile operators already the early stages of an LTE an operator could offer auto- partner with banking groups deployment with an opera- matic syncing via femtocells across a range of activities. “Once upon a tor which plans to offer its of content such as podcasts, SK Telecom, Telefónica and time an operator highest bandwidth service at music or video between PC Vodafone are among those managed a wireless a premium price, pointing the and handset, which saves involved. Activities include network and had way to tiered pricing in 4G. a user time compared with delivering remittance pay- wireless expertise. Additional fees for a burst of connecting to a PC via the ments or forming consortia to higher bandwidth might be USB port. target the transport sector, for Or they managed a attractive to those users on Of course, operators will instance offering e-ticketing in fixed network and the slower speed service. have to persuade users to mass transit systems. Voda- had fixed network Technical fixes could offer pay for any of these ideas: fone also recently announced expertise. Now some relief too. Mobile “That’s the key question a new unit that will deliver these things are operators are attracted to where operators are scratch- mobile technology to the blurring together.” femtocells because their ing their heads and trying to healthcare sector. www.tmforum.org / Perspectives / 51
    • Service Delivery Framework Waiting on the platform Service delivery platforms are much discussed in the communications industry, particularly in the context of two-sided business models. Yet there is considerable confusion about what an SDP is, and myriad standards form only part of the picture. Clearer understanding is needed if service providers are going to implement new business models and revenue streams efficiently – and platforms are to escape the fate of IMS. By Susana Schwarz and Annie Turner THE TROUBLE WITH SERVICE undertaken on that account management of SDPs, TM ferent classes of services. Delivery Platforms (SDPs) is by bodies including the Open Forum is looking at the man- The SDF Reference Archi- every network equipment Mobile Alliance, the Organiza- agement functionality needed tecture embraces Frameworx, vendor, back office software tion for the Advancement of to complement the work being the latest iteration of TM supplier and systems integra- Structured Information Stan- undertaken at the service Forum’s widely deployed Solu- tor has a slightly different take dards and the 3G Partnership layer, as part of its Service tion Framework, NGOSS. on what an SDP is, based on Project (3GPP). Delivery Framework initiative. Through a better under- what they are offering. While they are steps in the The Forum is evaluating standing of SDP components, This is made more confus- right direction, their usefulness the common elements of TM Forum is striving to help its ing as a growing number of is limited by the fact they only SDP definitions coming from members build management complex services are deployed address some aspects (such standards bodies, as well as capabilities and interfaces that on SDPs, and a market is as wireless or fixed, software those emanating from vendors link together multiple service emerging for specialized SDPs or web services) of the service and integrators. The goal is to platforms including SDPs and for services like IPTV (see delivery lifecycle at the service create a high level, common legacy, silo-based solutions. page 74) and mobile payments. layer. None provides a cohesive management framework that This would aid interoper- The need for standards and end-to-end service manage- would allow service providers ability, prevent communi- best practices around SDPs ment view based on the to implement homogenous cations service providers is widely recognized and a service and business context. and cost-efficient service (CSPs) from being locked into great deal of work has been To clarify the structure and lifecycle management for dif- certain vendors’ offerings, 52 / Perspectives / www.tmforum.org
    • Service Delivery Framework and enable the consistent deploy, operate, or retire). from the VCI metamodeling in September 2009 by Mind creation and management Though the SDF work is that SDF can possibly apply Commerce, says it all: IMS of new services, even in a not yet focused on defining a to ‘service’ definitions in the Status Report: Emerging from legacy silo environment. ‘service’ or its ‘functionality’, SDF work,” notes Dilbeck. the Trough of Disillusionment. The management of a ser- it is currently evaluating the “The VCI metadata work may Its author, consultant Alan vice is defined separately from management needed for the help us define the metadata Quayle, says operators stated the functionality, so the service service during its lifecycle or model for managing services. the absence of a compelling definition or implementation of future phase. The team will The content focus expands business case, and the lack functionality could change with look at digital media content, the metadata model in a very of standards compliance and minimal impact to the manage- IT services, and registries and useful direction,” he says. back office integration were ment of the service. catalogs to find commonality. the top three barriers to IMS’ For example, one CSP With that effort, SDF will Where is IMS? adoption. might want to expose network provide the mechanisms for While TM Forum’s work Even so, IMS has not services, while another might exchanging information among around SDF is at a high level, gone away. Over 100 service want to focus on innovation in repositories and catalogs. and still has a considerable providers, including Verizon, the area of on-board applica- Metamodels, the manage- distance to go, the impor- China Mobile, and Vodafone tions. A third service provider ment information necessary at tance of the work is under- Spain, were interviewed might want to enable app each phase of a product or ser- lined by what has happened about their plans for IMS for store services like Android vice’s lifecycle, is an important to the IP Multimedia Sub- the report. Only 8 percent Market, while a fourth might part of this work. The meta- system (IMS) SDP. Back in have deployed IMS, but none focus on exposing inherent IT model must be ‘service neu- 2007 when the Forum started has completed the conversion capabilities in a software-as- work on the SDF, it looked as of their network to IMS. All a-service (SaaS) environment, though IMS would be widely considered it to be a five to such as billing or email. “Operators said the deployed in the move towards seven year process. While some SDPs have absence of a com- service providers separating Another 12 percent are management hooks, there is pelling business services from the underlying running extended field trials, no common management for infrastructure. which are characterized by case, and the lack IMS was originally designed services being launched on functions (such as deploy- ment, fulfillment and assur- of standards compli- for mobile but was extended the IMS core, sometimes ance) across all products and ance and back office to cover Wi-Fi and fixed line involving paying customers. services. integration were the services as well. To ease None has yet decided to The TM Forum’s SDF initia- top three barriers to integration with the Internet, commit to service migration tive is now in Phase 4 of de- IMS uses Internet Engineer- onto the IMS core. velopment: Work is underway iMS’ adoption.” ing Task Force protocols The report predicts linear on a guide to the elements of wherever possible, such as growth in initial adoption over management that need to be tral’, while capturing detailed the Session Initiation Protocol the next five years, with 32 exposed in product catalogs. enough information to ensure (SIP). 3GPP says IMS is not percent of operators mov- “With SDF, we are striving service-specific requirements intended to standardize appli- ing to adopt IMS by 2014. to lay out the management are addressed. cations but support access to North America is expected to interfaces and types of meta in- TM Forum’s Value Chain multimedia and voice applica- provide the bulk of growth in formation that service providers Initiative (VCI) is also working tions from wireless and wire- 2010 and 2011 while Europe, need to manage their servic- on metadata to describe digital line terminals, through having the Middle East and Africa, es,” says Ken Dilbeck, director, media content. It is possible a horizontal control layer that and the Asia Pacific regions TM Forum Collaboration Pro- the SDF initiative will be able isolates the access network will provide most of it from gram. He explains that at each to leverage some of that from the service layer. 2012 to 2014. phase of a service’s lifecycle, work to define metadata for However, it seems that ser- It will be interesting to there are certain ‘actions’ that managing services, streamlin- vice providers were not con- watch its progress. In the must be taken and information ing management processes, vinced that implementation meatime, efforts such as collected that is either relevant defining data, and ultimately would translate into reducing the TM Forum SDF initiative to that lifecycle phase or for implementation by service costs and complexity, and all will strive to overcome the required in a future phase (such providers and vendors alike. went quiet on the IMS front. barriers to wider and more as concept, design/develop, “We are learning lessons The title of a report published efficient SDP adoption. www.tmforum.org / Perspectives / 53
    • Sponsored Feature Solutions for your business – Imagine the opportunities It’s time to turn challenges into oppor- within their operations that is the key to huge competitive advantage. Experi- tunities. Nowhere does this apply more profiting from these market changes. ence shows that adopting this holistic than in the communications industry. CSPs that are able to get their busi- view – taking people, processes and According to a recent study by IBM, ness evolution and technology evolution systems into account at the same time CEOs of communications service provid- working together – people, business – is critical to success. So is the removal ers (CSPs) are expecting monumental processes, systems and technology, of organizational and technological silos changes in the industry. In fact they see all working hand in hand – will have a to form streamlined and agile opera- more changes coming than CEOs from any other industry, they also feel that in the past they have been less successful at managing change than their peers. The survey shows that CSPs recog- nize that much still needs to be done in order to prosper in the new, digi- tally connected world. Happily though, many CSPs are in a unique position to succeed – no one knows their large customer base better than they do, and these customers place a high degree of trust in their providers and the services they supply. For the CSPs, it seems the keys to success lie in getting four key areas of their business in shape. Nokia Siemens Networks has identified those areas, based on our market research (see Figure 1), as: Figure 1 • Operations Transformation; • Customer Experience; • Customer Insight; • Adjacent Industries. If we take a look at each of these areas in turn, we can start to see where the opportunities for a bigger, better and more profitable business lie. Transform business processes to strengthen competitiveness The digital lifestyle is driving transforma- tion within both the communications and entertainment industries. That brings with it new Internet players, ad- vanced applications, services moving to broadband and higher quality of service demands. And it will be how well orga- nizations manage this transformation Figure 2
    • tions founded on an open, process-led profitability that will count, but the end- calls, tariff plans and billing clarity and architecture. customers’ lifetime value. Globally, the accuracy are all included here. To take this holistic approach, the first number one reason that people give for step is to apply a growth and transfor- switching service providers is not price, • Customer care: mation framework that addresses all but the structure of their contracts. So Customers value an after-sales ser- aspects of the digital evolution, like the the benefits and opportunities derived vice that is easy to contact, and quick one set out in Figure 2. from pairing the right contracts with the to respond and solve any problems. Using this approach, CSPs will eventu- right customers are obvious. Having well-trained call center staff ally be able to turn their competitive Most customers simply don’t care that have the right tools to solve que- advantage into an evolutionary advan- which network technologies or busi- ries on the spot also plays an impor- tage that is able to satisfy ever-increas- ness model their provider uses. They tant role here, because effectiveness ing customer demands. A simplified just want the best possible individual is just as important as friendliness. architecture plays a crucial role here, by communications experience. The better leveraging the capabilities of open stan- a CSP understands its customers, the • Brand image: dards and industry best practices. The better it can deliver new ideas and ser- Long term value here is derived from end result is a powerful, revenue gener- vices that will generate loyalty and new the combined result of all the other ating machine with the agility required revenue opportunities. good practices. It includes a reputa- to grab every upcoming opportunity. tion for good service and an under- Five key drivers to customer loyalty standing of customers’ needs, as Telecoms knowledge and service Extensive market research conducted well as the CSP’s wider behavior and capability make the difference by Nokia Siemens Networks has identi- trustworthiness. Whether CSPs are planning a minor fied five key areas that can define the change or a major transformation, they customer experience and make or break So there are five examples of how need to feel confident that the change the relationship with the CSP: CSPs can differentiate their offerings will bring business value today, and be from the competition. Nokia Siemens sustainable in the future. This is why • Service and device portfolio: Networks would be delighted to discuss adopting a robust transformation frame- Customers are looking for services value propositions, strategies, plans and work and a well-defined architecture is that are attractive, easy to find and models – optimizing them to deliver the so important. buy, and start using. They want ser- best customer experience and the most Reflecting its deep roots in the tele- vices that match their needs, as well profitable lifetime value. coms industry, Nokia Siemens Networks as desirable devices and customer has already taken more than 100 CSPs premises equipment (CPE). Improve insights and act on them worldwide from market entry to 3G, As communication channels increase, giving the organization a wide perspec- • Network and service quality: consumer lifestyles are becoming more tive on how best to achieve business In mobile networks, network and ser- and more individual. But increasingly, evolution and transformation. As one vice quality encompasses coverage customers have the perception that pro- president and CEO of an operator in and service availability, service retain- viders don’t understand their needs. An APAC recently expressed it: ability (e.g. call drop rates), service article in The Harvard Business Review “We are happy to have Nokia Sie- performance (such as service success states, “50% of customers across the mens Networks as our transformation rate or delays), usability and security. industry think many of the companies partner because what they do for us In broadband it includes network per- they interact with don’t understand or creates competitive advantage over the formance and coverage, characterized care about them.” rest of the industry.” as usable data speed or bandwidth, The key is to provide what people stability and security. need at the right time and the right Enrich the customer experience to place. As Rajeev Suri, CEO of Nokia derive lifetime value • Cost and billing: Siemens Networks recently put it, “If In the converged markets that are de- Total monthly cost, device cost, per- we want the telecommunications sector veloping worldwide, it is not short-term ceived value, cost of same-network to reach its full potential, we need to
    • Sponsored Feature transport, healthcare, education… The role of telecoms in socio- economic development is crucial and many recent announcements between CSPs, healthcare providers, utilities and other players, demonstrate the potential for growing business and revenue in new ways. This has already been successfully demonstrated by Belgacom with its IPTV solution, which had more than 660,000 TV subscribers in Q3 2009 (an increase of 220,000 in one year) at the same time as increasing ARPU to €20.10 per month. Vodafone Spain has opened a new revenue stream by providing content security solutions. These provide a key business opportunity as awareness move from a ‘one size fits all’ view of Networks shows that, while customers and demand for security as a service to the world to helping operators provide want to feel in control of their personal residential and corporate customers is an individual experience to each one of information, they are willing to share rising. their customers.” their data if they can see clear value in And there is good money to be made return. Another very encouraging sign CSPs already have the assets… providing services people want, when was that customers place high trust in The services that CSPs already provide they want it. To put this into context: their CSPs (second only to banks) to to their customers make them uniquely monthly Apple revenue from the sale of keep their data secure and protected positioned to bring value-adding assets mobile apps on the iPhone is US$7 mil- from misuse. to other industries: lion. Monthly CSP revenue from the sale This puts CSPs in an excellent position of internet access on iPhones is US$200 to be the preferred provider of services • Ubiquitous access, broadband million (source: Informa 2009). that support digital lifestyles – using connectivity and network control; their customer data to act as a broker • Direct and personal relationships to Turn data into actionable insights between customers and Web 2.0. This millions of customers; For many CSPs, a huge amount of cus- could be sharing information about loca- • Business systems for real-time tomer data exists, but it remains siloed tion, presence, reachability and device monitoring and charging. and therefore under-utilized. Imagine capabilities, brokering billing information the potential if CSPs could organize and or identity for third parties, or enabling To help CSPs identify their strengths monetize all this information – opening web and mobile single sign-on. in adjacent industries, Nokia Siemens up opportunities to raise business per- With better insight and fast actions, Networks brings a deep understanding formance, increase personalization and CSPs can satisfy and anticipate the of CSPs’ assets. Our industry experts drive revenue growth. needs, desires and preferences of their and our understanding gained from our What is crucial in unlocking this customers. And ensure that they have a partnering experience can help CSPs potential is the ability to execute highly truly individual, and secure, communica- unlock the untapped business potential targeted campaigns quickly and effi- tions experience. beyond telecoms. ciently. The most forward-looking CSPs are already running over 800 highly Grow business in new ways by look- The four keys to success targeted campaigns every year. And one ing beyond telecoms At Nokia Siemens Networks, we believe African CSP has been able to increase Today, a CSP may see itself as a tele- that focusing on these four areas: opera- revenue by €25 million, simply by being coms provider, but where does it see tions transformation, customer experi- faster to market with targeted, micro itself in five years’ time? ence, customer insight and adjacent campaigns. Imagine the opportunities for revenue industries will provide CSPs with the growth by moving beyond telecoms to best opportunities for business success CSPs can become the key player in partner with adjacent industries such as in the digitally connected world. To find modern digital lifestyles advertising and entertainment, banking out more, please visit Recent research by Nokia Siemens or the energy industry. Not to mention www.nokiasiemensnetworks.com.
    • IP Networks Raising the standard in network security management IP networks enable the convergence of traffic types onto one infrastructure, to deliver substantial CapEx and OpEx benefits. They also increase operational scalability and flexibility for service providers and end-users. The downside, though, is an escalation in the potential for security breaches. This is why TM Forum unveiled its Security Management Initiative at Management World Americas, in December 2009. By John Williamson UNLIKE MANY CLOSED as much as $16.4 billion to legacy networks, those run- protect laptops, desktops, and ning IP have an open architec- mobile devices with antivirus, ture, making them vulnerable encryption, and firewall soft- to threats, from Distributed ware. Juniper reckons network- Denial of Service (DDOS) at- based security provision to tacks to viruses and Trojans. the business end-point could The cost of deploying account for close to 20 percent preventative measures is high and rising. Juniper Research calculated that by 2014 orga- nizations could be spending www.tmforum.org / Perspectives / 57
    • IP Networks of the total market by then. tom review of the federal gov- which have become so In addition, introducing ernment’s efforts to defend essential to modern living.” “Governments, encryption into a voice over IP information and communica- She adds, “Service provid- (VoIP) network, for example, tions infrastructure, and sub- ers, applications develop- enterprises, adds an overhead that can sequently created the office ers, and solution integrators communities, and offset the bandwidth gained of cyberspace coordinator. recognize their expanding families look to our by moving from a circuit Security matters are a responsibility to implement industry to provide switched network. primary concern of TM Forum best practices in all aspects a safe and reliable member organizations, their of network and data security. environment for all Consequences customers and constituents. These organizations, and new The consequences of IP net- The Forum’s activity in this area entrants such as the cloud of the information work security being compro- is a logical progression of the computing providers, look to transactions which mised range in seriousness work undertaken by its Govern- TM Forum for focused have become so from loss of confidentiality at ment Defense Interest Group. leadership on this topic.” essential to modern one end of the spectrum to This Group was established living.” threats to life in the case of gov- to foster a collaborative ap- Acting on initiative ernment and military networks. proach to the development Accordingly the Forum has un- Security-related financial of Military Unique Features, dertaken a major Security Man- losses aren’t a trivial matter which are best practices, agement Initiative to enrich its either. In a speech given in standards and guidelines for Frameworks and certification April, the then European Union the defense industry. For processes with full spectrum (E.U.) Commissioner for In- obvious reasons, the defense security management guid- formation Society and Media, community is preoccupied ance. This covers architec- Viviane Reding, suggested that by military and governmental ture, processes, information a month-long Internet inter- network security. Much of and data models, applications, ruption in Europe or the U.S. the expertise accumulated interfaces, and testing. would mean economic losses in this domain is applicable The Forum-wide Security of at least €150 billion. to the requirement to secure Management Initiative was Speaking ahead of an E.U. cyberspace in its totality. formally unveiled at Manage- Ministerial Conference on ment World Americas in cyber security that took place Securing cyberspace December 2009. This involved in Tallinn, Estonia in May “The need to secure cyber- all the main TM Forum project 2009, Reding said, “Cyber space – the operating domain areas and member segments, attacks have become a tool realized most prominently over and will be a permanent part in the hands of organized telecommunications networks, of TM Forum’s future work. crime, a means of blackmailing the services they enable, and The Security Management companies and organizations, the data conveyed by those Initiative draws on a body of of exploiting the weakness of services – is now a near- earlier work. This includes vari- people, but also an instrument universal mandate,” points ous International Telecommu- of foreign and military policy, out TM Forum Defense Sector nication Union (ITU – a United and globally a challenge to head Christy Coffey. “Govern- Nations agency) documents democracy and economy.” ments, enterprises, communi- – the ITU M 3010 recommen- Similar thinking was evident ties, and families look to our dation on the principles of a across the Atlantic when, industry to provide a safe and telecommunications manage- after taking office, President reliable environment for all of ment network (TNM), ITU M Obama ordered a top-to-bot- the information transactions 3400 on TMN management 58 / Perspectives / www.tmforum.org
    • IP Networks functions, ITU M 3016.0 on Rogues’ gallery security for the management plane and ITU X.800, 850, and In November 2009 TM by country”. Vinny Gullotto, infections had resurged to X.nnn on security architecture. Forum member Microsoft general manager of the become the second most The work of the ITU-T Study released the seventh volume Microsoft Malware Protec- prevalent threat for enter- Group 17 is also applicable, of its Security Intelligence tion Center, comments, “It’s prises in the first half of as are the SANS Institute’s Report (SIRv7). This indi- been said that knowledge is 2009. Worms rely heavily Consensus Audit Guidelines 20 cated that worm infections in power – and when it comes on access to unsecured file Critical Security Controls (and the enterprise rose by nearly to security intelligence, a lack shares and removable similar checklists), the security 100 percent during the first of accurate information can storage volumes, both of standards, and data models half of 2009 over the preced- be detrimental to separating which are plentiful in adopted by the National Insti- ing six months. Rogue secu- real threats from hype.” enterprise environments. tute of Standards and Technol- rity software also remains a The SIRv7 found that, According to the report, ogy, and the National Security big threat to enterprises. ten years after Melissa ap- rogue security software Agency Net defense data The report provides “… a peared and defined mass- remained the single largest models, protocols and tools. deep, accurate view of the mailing worms as a class threat category for the first Information Security threat landscape country of malicious threats, worm half of 2009. Management best practices as defined by the Information Technology Infrastructure Library, and the Making Security Measurable initia- tives of the Mitre Corporation, are also relevant. The Forum’s approach is to draw on these extant bodies of work and tailor them to its specific needs and prefer- ences to provide around 95 percent generic Security Man- agement guidance for all its member categories. Additional input will be required, though, in fields such as Digital Rights The mechanics of quantum Management, privacy and compliance. As well as adding a bandwidth in the form of an emerging changed. This prevents data It’s also the case that a small overhead, the use of conven- technology that exploits the compromise and alerts the amount of new work is in hand tional encryption doesn’t deliver properties of quantum physics communicating parties to at- to meet the need of particu- an absolute level of security. to exchange encryption keys. tempted intrusion. lar member sectors such as The level of security is a In quantum key distribution, Companies such as ID defense, cable (see article on function of the computational a string of photons is used to Quantique, MagiQ Technolo- page 71) and wireless. These complexity of the encryption generate a code known only gies and SmartQuantum are will take the form of profiles, coding used and the compu- to the sending and receiv- demonstrating and beginning extensions and exceptions or tational resources available to ing parties. Photons in this to ship equipment that oper- waivers after the completion the would-be interceptor. context cannot be observed ates at commercially usable of the generic content. A solution may be at hand or measured without being data rates and distances. www.tmforum.org / Perspectives / 59
    • Cultural and Business Transformation The toughest juggling act ever There was a time when the telecom sector was so profitable, it was almost a license to print money. Then along came competition and instead of profits falling, they continued to soar on the back of the massive success of mobile. Being highly efficient was less of a factor in the minds of CEOs than managing growth, and it still is in high growth markets like India and China. In developed markets though, competition and falling core revenues are forcing change. By Priscilla Awde IN MANY DEVELOPED markets, mobile penetration rates of over 100 percent and slowing growth has led to trench warfare between competitors over market share. ARPU and profits are declining, and even the rapid growth of mobile data is barely offsetting the increased costs of spec- trum and network upgrades. Consequently, network operators and service provid- ers find themselves juggling with three simultaneous chal- lenges: Taking radical steps to cut their operating cost base; looking at how to improve their customers’ experience to keep them loyal; and be- coming more agile – stream- lining the time taken to launch new or upgraded services. Many other industries have trodden this path already – learning how to continuously deliver more for less. Retail, manufacturing and financial 60 / Perspectives / www.tmforum.org
    • Cultural and Business Transformation services sectors have all becoming a highly efficient, the Forum comes in. Build- “Operators should know streamlined their processes, integrated and automated ing on its highly successful exactly where they want to involving customers and sup- back office, depending on NGOSS platform, the Forum go; what they want to achieve pliers, and are continuously many factors. has recently unveiled its when, and stay committed. evolving and integrating new Responding to this need, Frameworx integrated busi- They should expect resistance technologies to decrease TM Forum is greatly increas- ness architecture, which is an to change,” says Creaner. costs while improving busi- ing the support offered to enterprise-wide roadmap for “Transformation to a lean or- ness agility. They compete on members to help them with all types of service provider ganization requires investment innovation, price and service practical transformation. – fixed, mobile, cloud, cable capital, long term commitment levels, not on the plumb- Keith Willetts, Chairman and and web services. Even the from the board and executive ing behind their businesses. CEO of the Forum explains, defense industry is recogniz- team, and clear responsibilities Many have precisely defined “We’ve long predicted that ing the benefits of a single, and business goals.” core competencies and the industry will have to industry-wide approach that The Forum has defined understand fully how to lever- transform itself into a lean and is supported by suppliers and business and IT standards age outsourcing and supplier agile sector, but it has proved systems integrators. plus five related elements of partnerships. remarkably resilient and able to delay making serious Scary landscape change. We’ve used that time “Now the big implementation wave is The legacy of years of rapid to develop some comprehen- underway, we are focusing more and more growth, mergers and acqui- sive approaches – an inte- resources towards helping our member sitions, and different man- grated business architecture companies move forward in a common agement approaches have if you like – to help service created a scary landscape of providers become much more direction and start to reap the benefits of that inefficient, inconsistent and highly integrated and stream- investment.” multiple duplications of sys- lined in how they run their tems and processes. It was business and how they should Frameworx extends the the transformation process: common practice to let each adapt to changing markets NGOSS platform by aligning business models; product division or operating com- and business models”. it with a services oriented portfolio; network infrastruc- pany in a group develop their He continues, “But now approach that allows much ture, business processes and own business processes and the big implementation wave greater reuse of software and business systems. systems, and management is underway, we are focusing many more flexible deploy- approach. The result is higher more and more resources ment options. This is particu- Model are changing operating costs, low levels of towards helping our member larly important when service Business models are chang- customer service and scle- companies move forward in providers are using more ing fast from the days when rotic inflexibility. Little wonder a common direction and start innovative approaches such the service provider bought new entrants, particularly to reap the benefits of that as outsourcing and work- equipment, connected it up over-the-top (OTT), web-based investment.” ing closely with value chain and provided services that companies, seem to move at partners to deliver content or customers paid for. Most lightning speed compared to How urgent is urgent? applications. involve third parties and value their telecom rivals. The line that many operators Frameworx defines the end chains: In a growing number, The message that things are taking is a gentle evolution, goal, but the journey to get someone other than the have to change has been but that may have to accelerate there can be difficult if some end-user pays, such as an received and well understood as profit margins get squeezed basic steps are missed. Proj- advertiser. in the boardrooms of com- tighter. “Big bang approaches ects should start with clearly Many systems and process- munications players around are difficult to justify,” explains defined long term goals and es are heavily customised, the world. CEOs must take the Martin Creaner, TM Forum’s incorporate regular measur- even if they are based on lead on this and be crystal clear President: “The vast majority of able returns: The key to im- commercial off-the-shelf and consistent. If they don’t projects are fairly small but valid provement lies in continuous technology. Just as airlines and aren’t every operating divi- just as long as the small steps measurement against external don’t need to build custom sion and company in a group are all in the same direction. If benchmarks (see panels on airplanes or their own special will find reasons to delay or they just go round in circles, the pages 33 and 34). The ulti- runways, service providers continue to do it their way. effort is largely wasted.” mate aim and how to reach it can run very effectively with There are many routes to That direction is where must be clearly defined. the right mixture of out-of- www.tmforum.org / Perspectives / 61
    • Cultural and Business Transformation the-box software – so long In a recent TM Forum understanding the customer Wheeler, technical lead as their choices fit into their workshop on cultural change experience across networks, consultant, Cisco. overall architecture and use (see Successful Business services and IT platforms. He adds, “New skill sets industry standards that govern and Cultural Transformation “Transformation is not just are needed to build, design business processes, informa- Quick Insights Report on TM about technologies and and manage next generation tion and common plug and Forum website), participants boxes, but how to monitor networks, which requires play interfaces. noted that change is much and measure events and re-training and/or hiring new Any change program re- more likely in companies led ensure customer experiences staff, and a total integration of quires clear stages and mile- by experienced, charismatic are excellent. two different skills sets into stones to build confidence people rather than financiers, one. Still, servers remain serv- that the plan is working, for outsiders or political appoin- ers, fiber and boxes stay the everyone from the teams on tees who lack experience and “Success depends same although new tools and the ground up to the board- too often come from com- on getting the organ- models may be required to room. ‘Declaring victory in panies where decisions are ization operating get the best from them.” stages’ is a good mantra. For made by committees. in a transformation Despite tough economic instance, one quick win on “Right now you’d have environment, and conditions, this is arguably the the journey to improving the to concede that most of worst time to halt investment bottom line is to plug revenue the smart new ideas in the using employees to in transformation projects, and fraud leakages. converged digital services innovate.” which are designed to save market are coming from OTT millions, reduce OpEx, Starting in the right place players and application de- “This is a common jour- support agility and speed Starting at the right place is es- velopers,” says Willetts. “In- ney for all players requiring to market with the revenue sential and that, believes Cre- novation is a problem for the considerable innovation and streams of tomorrow. Difficult aner, is at the process level. industry mainly because the smart ways of understanding decisions must be made Another route to quick wins culture of decision making is end-to-end services involving about which services to keep is to benchmark key business risk averse, plays safe and the whole supply chain. There or drop, according to their processes against competitors protects existing products.” is no silver bullet. Success de- profitability. and then look for ‘hot spots’ pends on getting the organiza- New wholesale opportuni- where the service provider is Customer centric tion operating in a transforma- ties arise from opening up behind the pack. Customer centricity goes tion environment, and using networks to third parties Typically 80 percent of with that cultural shift. “Cus- employees to innovate.” while standardization across the bottlenecks of cost and tomers are king for service Mead concludes, “Competi- the board cuts costs and time delays occur in just 20 providers. Delivering a great tion is forcing Tier 1 operators speeds transformation. percent of the process, so customer experience is not to think in marketing terms. “Transformation is a con- homing in on and eliminating being altruistic for companies Some are partnering with tinuum with most operators these can produce surprising- like Apple or Amazon. It’s a outsourcers and moving to undertaking incremental proj- ly quick and satisfying results. good way of doing business managed services which go ects,” concludes Roz Rose- Changing work practices and has everything to do with hand-in-hand with transfor- boro, senior analyst, Analysys and culture is perhaps the profitability,” Willetts contin- mation. Traditional customer Mason. “Their scope depends biggest challenge and where ues. “Making the experience supplier relationships must on the risk to their business most resistance is encoun- simple, easy and pleasurable evolve into partnerships.” and customers operators are tered, especially in countries engenders great loyalty and Culture is not the only bar- willing to take.” where the labor market is lines up whole new lines of rier to transformation. The inflexible. If the culture is business. How many Mac nature of network build-out more suited to an incumbent users bought iPods, then can be a problem too. “In philosophy and business iPhones and do so over and the Internet boom the core practices, no amount of over again, even though they infrastructure did not change money will effect change. are premium priced?” as fast as the edge, but with The pervasive culture must Bradley Mead, VP, services, cloud services and virtualiza- be rooted in innovation, be Ericsson agrees, adding tion, the next generation core upbeat and encouraging, that service providers must must be in place before the suggests Willetts. focus more on brands and service edge,” explains Jeff 62 / Perspectives / www.tmforum.org
    • Cloud Computing Seeing through the clouds Will cloud services rise rapidly to become the most important service delivery platform of the future, or will they evaporate, blown away by the inherent complexity of establishing a new service delivery paradigm and a lack of interoperability, common standards and sufficient security? By Rob Rich DRIVING INTEREST IN boundaries, and unlimited Institute of Standards and effort or service provider cloud is a series of power- scalability combine to make Technology, Information interaction. ful and undeniable potential a very compelling case for Technology Laboratory. They This cloud model promotes benefits: Expectations of cloud services. define it as, “a model for availability and is composed lower operating costs, con- At the same time, lack of enabling convenient, on- of five essential characteris- servation of capital, instant clarity of definitions, a dearth demand network access to a tics, three service models, and ubiquitous availability, of standards, and a healthy shared pool of configurable and four deployment mod- lower support costs, efficient dose of skepticism create computing resources (for els.” They are abridged here. and agile charging structures, adoption barriers. At the mo- example, networks, servers, access to a broad variety of ment, the widely accepted storage, applications, and Essential characteristics cutting edge capabilities, definition of cloud comput- services) that can be rapidly On-demand self-service. A ease of collaboration across ing comes from Peter Mell provisioned and released consumer can provision com- organizational and geographic and Tim Grance of National with minimal management puting capabilities as needed, www.tmforum.org / Perspectives / 63
    • Cloud Computing such as server time and net- Cloud Platform as a Service technology that enables data work storage, automatically. (PaaS). The consumer can and application portability Broad network access. deploy its own applications, (such as cloud bursting for “While some argue Capabilities are available over created using programming load-balancing). that security is the the network and accessed languages and tools sup- most serious short- through standard mechanisms. ported by the provider. The Concerns arising term issue, others Resource pooling. The pro- consumer does not manage Given this non-exhaustive noted that best-in- vider’s computing resources or control the underlying definition, the industry has class service provid- are pooled to serve multiple cloud infrastructure. concerns about security, consumers using a multi- Cloud Infrastructure as a availability, performance, unit ers’ security capa- tenant model, with different Service (IaaS). The consumer costs, interoperability, and bilities are already physical and virtual resources can provision processing, that flexibility/personaliza- on par with or better dynamically assigned and storage, networks, and other tion will raise barriers and than those of many re-assigned according to fundamental computing re- slow the adoption of cloud enterprises.” consumer demand. There is sources where the consumer services. So while there is a sense of location indepen- is able to deploy and run great potential, it will not be dence in that the customer arbitrary software, which can realized unless real custom- ers noted that best-in-class generally has no control or include operating systems ers’ needs are addressed, service providers’ security knowledge over the exact and applications. and cloud services deliver capabilities are already on par location of the provided the effectiveness, variety, with or better than those of resources. Deployment models value and security that they many enterprises. In addition, Rapid elasticity. Capabilities Private cloud. The cloud infra- promise. the industry focus should be can be rapidly and elasti- structure is operated solely To this end, TM Forum on the needs for and ap- cally provisioned, in some for an organization. It may be has announced the Cloud proaches to transparency and cases automatically, to scale managed by the organization Services Program (see page auditing, as well as the role their usage up and down. or a third party and may exist opposite). The program, in of the network in addressing To the consumer, provision- on or off premises. liaison with the Distributed security requirements. ing capabilities often appear Community cloud. The Management Task Force to be unlimited and can be cloud infrastructure is shared (DMTF) and the IT Service Performance purchased in any quantity at by several organizations and Management Forum (itSMF), Performance requirements any time. supports a specific commu- aims to support this nascent and issues for cloud services Measured Service. Cloud nity that has shared concerns market in moving beyond the are diverse and vary accord- systems automatically control (such as a common mission, hype and shorten the time ing to the service on offer, and optimize resource use security requirements, policy, to realization of real value. application and even cus- through metering. Resource and compliance consider- In particular, effort will be tomer expectation. Much of usage can be monitored, ations). It may be managed focused around the following the discussion has centered controlled, and reported. by the organizations or a third areas. around the role of the net- party and may exist on or off work in delivering appropri- Service models premises. Security ate performance, and the Cloud Software as a Service Public cloud. The cloud Security goals and top- advantages that a properly (SaaS). The consumer can infrastructure is available to ics for cloud services are engineered cloud infrastruc- use the provider’s appli- the general public or a large largely similar to those of ture could have in deliver- cations running on cloud industry group and is owned any mature IT operation, ing performance-sensitive infrastructure. The applica- by an organization selling though cloud service mod- content and applications tions are accessible through cloud services. els, operational processes, services over a wide geo- various client devices via a Hybrid cloud. The cloud and enabling technologies graphic area. thin client interface such as infrastructure is a composi- may present some different a web browser (for instance, tion of two or more clouds challenges than those found Portability & interoperability for web-based email). The (private, community, or in more traditional IT ap- Cloud interoperability is about consumer does not manage public) that remain unique en- proaches. While some argue how multiple cloud platforms or control the underlying tities but are bound together that security is the most can work together. Cloud cloud infrastructure. by standardized or proprietary serious short-term issue, oth- portability refers to reusing 64 / Perspectives / www.tmforum.org
    • Cloud Computing applications or components how service providers might and success. quality metrics; and among clouds, regardless differentiate themselves, for The approach is to provide • Technical agreements of their specific infrastruc- example through operational an ecosystem that enables developed in collaboration ture characteristics. These excellence, performance/ TM Forum members to with other industry groups. capabilities are particularly latency, security, functional- identify, understand and ad- The Forum’s Cloud Servic- important to customers to ity, customer service, and dress the myriad challenges es Program aims to establish avoid vendor lock-in. The big- vertical focus. at a platform level, enabling a healthy and vibrant ecosys- gest issues are the impor- competitive advantage built tem composed of buyers and tance of developing and the Futures on sustainable ground rules. sellers of all types, encourag- wide adoption of common While many fundamental is- TM Forum’s Cloud Services ing dialog and an open ex- interfaces, definitions and sues are yet to be addressed, Program brings together the change of ideas that enable standards. the industry is already looking necessary elements to real- requirements and solutions towards the evolution of ize a healthy cloud services to be presented, discussed, Governance cloud services and architec- market, including: understood and implemented Governance issues manifest tures. As outlined above, • The Enterprise Cloud Buy- by all of the players. themselves at multiple lay- approaches for enterprise ers Council, whose members Founding members of ers in cloud environments. planning have been put include some of the world’s the Cloud Services Program Development and run-time forward, including build to largest buy-side enterprises, include AT&T, BT, Telecom governance issues such as peak, build to baseline, pure dedicated to developing joint Italia, and Telstra, CA, EMC, proper change management utility, and hybrid/dedicated requirements and communi- HP, IBM, Microsoft, Cisco and testing apply, as do plus utility, with the hybrid cating them to suppliers of Systems, and Nokia Siemens operational and management approach generally viewed as cloud services; Networks, as well as influen- transparency. Governance the most promising. • Sell-side programs, de- tial enterprises such as Com- also includes enterprise us- signed to assist with demand monwealth Bank of Australia age policies; that is putting TM Forum Program forecasting, buy-side align- and Deutsche Bank. controls and policies in place TM Forum Cloud Services ment, business models and to assure usage transparen- Program, in liaison with the offer creation; In conclusion cy, security and cost control. DMTF and the itSMF, brings • An ecosystem of cloud There are a number of together cloud users, tech- buyers, service providers and formidable obstacles in the Service differentiation nology suppliers and service technology suppliers that will way of the broad adoption of Commoditization of cloud providers better to under- enable commercialization; cloud services, but innovative services is a sensitive issue. stand customers’ needs and • Business guidance, includ- and practical strategies to There is much debate about remove barriers to full growth ing benchmarks and service address them are on the way. The good news is that the potential benefits of a secure, Business & open, interoperable, govern- Technology Standards able set of clouds portend more formidable benefits. Cloud Cloud is beginning to move Ecosystem of Technology Suppliers past the hype stage toward a Developer Buyers & Environment Sellers promising future, and efforts Cloud by TM Forum and other organi- Service Providers zations like itSMF and DTMF Standards for Business will go a long way toward Managing Guidance accelerating that reality. Cloud Benchmarks & Services Metrics Cloud This article is an abridged version of Buyers the Seeing Through the Clouds Quick Insights Report which is based on discussions at the roundtable event held at Management World Americas December 2009. It is available from the Figure 1: Components of the TM Forum’s Figure 2: Key aspects of TM Forum’s Cloud Services Program cloud services program TM Forum website. www.tmforum.org / Perspectives / 65
    • Identity Management Who goes there and there goes who? Identity management has become big business with predictions that it will be worth $5.3 billion in 2012, rising to $12.3 billion in 2014. It’s all about controling access to ICT systems, resources and assets, which is a complex business. We will rely on IdM more and more as ICT and the Internet increasingly pervade our everyday lives. by John Williamson A NUMBER OF FACTORS too. As noted by the Euro- are promoting the growth of pean Telecommunications interest in and reliance on Standards Institute (ETSI), identity management (IdM) the Internet is now enabling (also sometimes referred to the multi-faceted intercon- as IAM for identity and access nection of many different management). devices and services – the The obvious starting point is so-called Internet of things the pervasiveness of ICT and – and requires the use of an the Internet in many areas extended collection of user- of modern life. They increas- names, passwords and PINs. ingly enable and support To help meet this need, sectors such as business, ETSI has recently created commerce, local and national an Industry Specification government, social interac- Group on Identity and Access tion, healthcare, education, Management. It points out entertainment and defense. In that because users assume some societies this perva- different roles and identities siveness is an almost all day, at different times (for ex- everyday occurrence, ac- ample, parent, doctor, sports companied by a greater need fan), they require access to to identify and authenticate different groups of services individuals accessing sys- according to their role at any tems, exchanging information given time. or performing transactions. In the enterprise arena, a The complexity of meeting main IdM issue is inappropri- this requirement is growing ate or malicious breaches 66 / Perspectives / www.tmforum.org
    • Identity Management of access by unauthorized service provider environment access rights and authorities individuals, and denial of are managed using multiple across the system for opera- “The service itself legitimate access to employ- proprietary user management tors (who are effectively the ees, partners or customers. systems (UMSs) supplied by users of the management can be the product In both instances the resul- operational support system systems). It also deals with of collaboration be- tant costs of compromised (OSS) companies. auditing the results of the tween infrastructure, or incorrectly functioning IdM In the view of TM Forum, provisioning operations. content and mer- can run into billions of dollars, there is a definite need for The first commercial chant parties, and reported and unreported. a standardized and central- implementation of TMF615 even involve end- Another serious enterprise ized provisioning and audit- deployed in a multi-supplier concern is regulatory compli- ing mechanism for CSPs, OSS environment involved user input.” ance with legislation such as and their entitlements, Vodafone D2, Ericsson and Sarbanes-Oxley. working on these manage- IBM. In this case study two In general, matters are not ment systems, if they are to possibilities were exam- simplified as enterprises and move towards more secure, ined – the implementation other organizations expand, consistent, and efficient of TMF615 directly in the merge or are taken over management of the network Ericsson OSS and, for other and, in the process, acquire components. Added to this systems not yet supporting different IdM regimes and individual service providers the standard, the creation practices. need to be able to implement of a trouble ticket via JSR91 The communications indus- specific authorizations based Trouble Ticket Interface to try provides a good example on local situations. support the manual procedure of the IdM issues facing for user provisioning. business enterprises. After Access rights TMF615 supported the privatization and market liber- In pursuit of these goals following user operations: cre- alization, many communica- TM Forum established the ate, modify, delete and audit. tion service providers (CSPs) Enterprise Identity Manage- The translator to JSR91 in- have merged or been bought ment team. Members of this cluded a database to simulate out by others. Networks are body are concerned with the online resources and storage more frequently assembled security aspects of net- of the ticket status. using solutions sourced from work management, and are Some impressive results multiple suppliers. responsible for the definition were recorded. The imple- In parallel, the model and implementation of the mentation of TMF615 in the of service provision has interface between the Central Ericsson OSS application changed. Where there was User Management System reduced provisioning time by once end-to-end ownership (UMS-C), from which a 79.2 percent. The participants of all components of service, service provider can provision calculate that where all OSS today it’s common to find access rights and authorities, applications support TMF615, a multi-tenanted delivery and multiple Local User Man- chain. The service itself can agement Systems (UMS-L), be the product of collabora- which actually implement the Simplified sign-on saves millions tion between infrastructure, access rights and authorities. content and merchant parties, In particular the team is Reducing sign-on to a single example, has centralized its and even involve end-user working on the deliverables action applicable in all con- user authentication and autho- input. With all this has come a for Telecom OSS Operator texts could be one of the ul- rization to key external and in- greater need for and reliance User Management and for timate goals of the ICT world ternal web applications using on identity management. Single Sign-On/Off. and at the moment some the CA SiteMinder simplified Telecom OSS Operator solutions providers refer to sign-on system to support 36 Managing the managers User Management Release their products as simplified million transactions per day. IdM is an area of increasing 1.0, or TMF615, specifies an sign-on. Either way, cutting In the process the operator is interest for CSPs’ internal op- interface by which it is made the number of log-ins can pay reported to have saved more erations. Drilling down, multi- possible for service provid- dividends. than £4.5 million ($7.24 mil- vendor networks in a typical ers consistently to provision TM Forum member BT, for lion) per annum since 2004. www.tmforum.org / Perspectives / 67
    • Identity Management the overall provisioning time reduce the overall corporate Wipro, that Interface Program will be reduced by about 98.4 financial risk, and it is not drew a number of conclu- percent and the time for a de- inconceivable that regulators sions. Among them were tailed reconciliation of all user may demand SSO and the that: data will be reduced by 98.8 use of proper security archi- percent. The participants also tecture in the medium term. • Some form of structured noted that TMF615 facilitates However, there is as yet central or federated user straightforward daily auditing. no standardized version of management is a prerequi- Meantime, using a transla- SSO, and at present SSO and site for SSO deployment; tion from TMF615 to JSR91 user management are ac- • Agreements may be Trouble Ticket Application complished, if at all, in an ad necessary for plug-and-play; Program Interface to provision hoc manner and rely heavily • Provisioning is an open field workflow for all OSS applica- on hard to maintain custom where adoption of emerging Identity parade tions was found to reduce projects. Moreover, a lack of standards may make a huge user lifecycle audit time by consensus in the communica- difference. The Javelin Strategy and Re- 98.1 percent. tions industry in this area is search 2009 Identity Fraud preserving this status quo. It may be, as some experts Survey Report, published in Signs of the times TM Forum has mounted a assert, that universally stan- 2009, compares 2008 with Single Sign-On (SSO), as the number of initiatives aimed at dardized SSO fit for all internal 2007 and suggests that name suggests, involves advancing the standardization and external purposes is a the number of U.S. identity a user performing a single of particular SSO applications. long way off, if it can be done fraud victims had increased action for authentication and One TM Forum Interface at all. In the interim though, 22 percent to 9.9 million authorization to access, in Program was designed to TM Forum is already deliver- adults in a year. Although the this case, multiple systems. show that, by adopting open ing actionable SSO specifica- total annual fraud amount Single Sign-Off is the reverse standards for SSO, it would tions for use by the global only increased slightly by 7 process. be possible to increase communications industry. percent in 2008, the overall SSO has many advantages, security at the same time as bill was still an eye-watering including reducing human lowering the cost of roll- $48 billion. error and password fatigue, ing out or running network On the upside the Javelin saving time, better workflow, management systems. The analysis found detection and increased security, and re- basis for that work was resolution efforts are work- duced IT costs. At the same TMF058 CO-OP Architecture ing well – consumers and time, service providers are Specification Release 2, and businesses are detecting and under pressure to improve in particular Appendix E TMF resolving fraud more quickly. their risk management and 058 Supporting Document As a result the mean con- corporate legal and regula- Single Sign-on Overview sumer costs of identity fraud tory compliance, while also and Architecture (along with fell by 31 percent to $496 lowering the cost of running other related appendices). per incident in 2008. Javelin their network services. From Sponsored by Telefónica also found that women were a Sarbanes-Oxley compli- and involving as participants 26 percent more likely to be ance perspective, securing Alcatel, Ericsson, Evidian, victims of identity fraud than the infrastructure is a way to Nokia, Siemens, Sun and men in 2008. 68 / Perspectives / www.tmforum.org
    • Cable Industry Cable blasts into telecoms Like communications service providers everywhere, multiple systems operators are exploring new markets and implementing next generation networks; that is the technologies, platforms and standards they need to compete effectively, now and in future. They are in the enviable position of having considerable scope for growth in their core residential and smaller company sectors, but are also moving into the enterprise market. By Priscilla Awde MULTIPLE SYSTEMS $120 billion. In contrast, telcos’ Operators (MSOs) are engaged revenues from IPTV are well in a David and Goliath battle – under $10 billion annually out and it’s going very well indeed of total global annual revenues (see Figure 1). Although telcos of $1.7 trillion. are launching Internet Protocol John Dinsdale, executive television (IPTV), their rev- director, TeleGeography, says enues are as yet small; around targeting TV customers with 40 percent of MSOs’ revenues telecoms services offers sub- come from telecoms services. stantial growth prospects for Fig 1. Growth of cablecos’ telecoms subscribers, 2003 – 2009 According to TeleGeography MSOs. “Most cablecos earn 95 100 Research, MSOs round the percent of revenues from the Broadband Internet world generate around $60 bil- residential sector where they 80 Telephony lion annually in revenues from will continue to grab substan- these services which have tial market share from telcos. Subscribers (m) expanded their core business Five years from now, cable will 60 by about 50 percent. double its telephony revenues. In addition, MSOs have Globally the future for cable tele- 40 increased their broadband vision (CATV ), is really bright. Internet subscriber base by 7 Markets are still reasonably percent and telephony sub- small in many countries: India 20 scribers by 13 percent over the and China don’t allow MSOs last year. Global revenues from to offer telecoms services, but 0 TV and video are $155 billion when that happens, it will swing 2003 2006 Q2 2009 of which cable accounts for the needle for the cable sector.” Source: TeleGeography ©2009 PriMetrica, Inc. www.tmforum.org / Perspectives / 71
    • Cable Industry He adds, “Comcast, Time With an IP core, they are ity, supporting 160Mb/s down- package of standards and Warner Cable and Liberty deploying the latest technolo- stream and 120Mb/s return in best practices – the successor Global all now feature in the gies and standards. “Services North America, and 200Mb/s to the Forum’s existing and top 15 ranking of broadband mirror those of telcos,” says downstream and 120Mb/s re- widely implemented NGOSS Internet service providers, and Cesar Bachelet, senior ana- turn in Europe. Soon it will be standards – provides solu- telecoms remains an engine lyst, Analysys Mason. “In Bel- possible to have eight channels tions for business process and for growth for many cablecos gium, Britain and Spain they bonded, and 16 or 32 channel information modeling defined around the world.” compete with national telcos. bonding in future. for a number of different topics In America, it is relatively “We have well-engineered especially service manage- Other sectors new for MSOs to go for the and managed networks so ment and assurance. Frame- Having taken market share business market, but it makes contention is no longer a worx contains a number of from telcos, MSOs hope to re- strategic sense.” peat the process in other sec- British MSO ntl/Telewest tors. Capitalizing on the fact serves business and consum- “In Belgium, Britain and Spain [MSOs] com- that small and medium-sized ers over separate access pete with national telcos. In America, it is enterprises (SMEs) are under- networks: Hybrid Fiber Coax relatively new for MSOs to go for the busi- served by traditional suppli- (HFC), for residential custom- ness market, but it makes strategic sense.” ers, MSOs are filling the gap. ers and FTTP or copper for en- There is 50 percent growth in terprises. All traffic backhauls the 10 to 250 employees SME over a national next genera- problem,” explains Dan Estes, key components such as: The market where MSOs have tion network. executive director technol- Business Process Frame- been both collaborative and “Ours is very much a busi- ogy, Cox Business. “We are work (eTOM), a blueprint for entrepreneurial. ness class telecoms model collaborating with CableLabs optimizing business processes; The bigger MSOs are moving with solutions running over to enable DOCSIS 3.0 and the Information Framework up the value chain targeting the an IP MPLS core network and incorporating industry stan- (SID), which offers a com- enterprise market and typi- access via Ethernet, fiber or dards. Growth in the business mon approach to managing cally have developed separate DSL,” explains Alison Adams, sector is largely untapped and, information; and standardized business arms to address it. senior manager, VPN Services, in America, enterprises have interfaces between systems to Although they have made ntl/Telewest Business. “We had limited choices leaving a aid process automation. headway, especially in vertical guarantee SLAs and QoS and multi-billion dollar space to fill For example, the Forum’s sectors, cablecos face several have resilient networks. We and room for MSOs.” Internet Protocol Details barriers. They have little his- will extend HFC to businesses TM Forum’s Cable Inter- Record (IPDR), specifications tory of supplying large compa- via DOCSIS 3.0 in 2010 to est Group works with MSOs are now publically available and nies which typically want one- deliver higher bandwidth.” and CableLabs to implement part of DOCSIS. IPDR collects stop-shop solutions, quality of standards and promote best and collates data on subscrib- service (QoS) and service level DOCSIS delivers practice to help operators ers’ behavior and simplifies agreements (SLAs). Data Over Cable Service Inter- drive out operational costs the integration of third party Yet progressive MSOs face Specification (DOCSIS) from the back office, reduce applications. Using this data, offer suites of business solu- is an international standard customer churn through driv- cablecos can offer more de- tions including virtual private that enables the addition ing up service quality, and get tailed information to advertis- networks (VPNs), primary rate of high speed data transfer new services out faster. Many ers thereby gaining potential Integrated Services Digital to a CATV/HFC system. Its cablecos’ back office sys- new revenues. Network (ISDN), voice over development was started back tems are manual and legacy “MSOs are just starting to IP (VoIP), metro Ethernet and in 1997 through CableLabs systems don’t support next market to businesses which some include mobile services. and many companies have generation services, speed to require SLAs and QoS which They have driven fiber to the contributed, including ARRIS, market, flexibility or efficiency. are not traditionally part of the premises (FTTP) and to busi- BigBand Networks, Broadcom, Consequently TM Forum rec- cable mentality. We provide a ness parks, upgraded capac- Cisco, Conexant, Correlant, ommends MSOs upgrade op- forum for MSOs to come to- ity, increased resilience and Harmonic, Intel, Motorola, erating system software (OSS) gether to collaborate,” explains split nodes to deliver higher Netgear, Terayon, and Texas through systems, process and Christy Coffey, cable sector speeds and cut contention in Instruments. organizational transformation. head, TM Forum. high traffic areas. DOCSIS 3.0 increases capac- The Forum’s Frameworx “Using the Forum’s IPDR 72 / Perspectives / www.tmforum.org
    • Cable Industry standards, Cablecos can developing consumer confi- new segments, introducing determine who is watching dence. To improve services new products and catering to what and measure peoples’ in- we are constantly researching, individual needs are key, along teraction with advertisements. measuring and asking custom- with providing the individual MSOs are creating a platform ers about their installation. We touch through personalization.” to improve the advertising have introduced new tools to Since it costs less to keep than experience for subscribers and manage [services] more effec- acquire new customers, it is provide better, more targeted tively. The main thing is to live essential to give customers services to advertisers,” sug- up to your promises – it is very the opportunity to interact with gests David Jacobs, CTO difficult in telecoms to promise their provider. broadband cable, Amdocs. to respond within a given time. Having separated the resi- “Using digital insertion, they “Customization and per- dential and enterprise divisions can deliver local and interactive sonalization for each person within the company, Roberto advertising targeted at specific within the home is a big new Nobile, COO for Cablevision segmented audiences.” challenge,” continued Duclos. Argentina, said the company is “North America is two years “The whole industry is trying closely tracking public sec- behind Western European to find the winning strategy for tor opportunities and sees MSOs which have bundled understanding people both in potential in partnering with multiple services and found and outside homes. It is likely other players. He believes new markets. Traditional to be a combination of all avail- that in Argentina, cable is the margins are holding up, giving able options backed by solid IT only infrastructure entering MSOs room to test the enter- infrastructure to deliver to each homes with very personalized prise sector,” believes Patrick individual customer.” services, adding there is lots to Bossert, director, market strat- Moving into enterprise mar- do on the product side. egy, Convergys. “CATV opera- kets requires different skill sets “Although we don’t have tors are now multi-play telcos and tools and Net Servicos is wireless yet, people need to offering quad play solutions trialing enterprise services and understand cable is moving over better end-to-end network working in partnership with from fixed to flexible products. infrastructure than telcos.” Embratel. As a service company, we In the mature Canadian cable have implemented a suc- Looking ahead market, Rogers Communica- cessful internal campaign to Panelists who took part in tions has merged its cable and prioritize customers – to keep, the cable sector debate at wireless companies and offers satisfy and surprise them,” he TM Forum’s Management voice, data and enhanced busi- commented. World Americas conference ness services to enterprises. “We are working on getting in Orlando in 2009, examined Tom Vari, senior VP, application satisfactory guarantees for the challenges ahead, largely delivery, suggested opportuni- broadband. It is important to agreeing the cable sector ties for growth lie in innovative make websites simple and should play to its strengths in new products as well as ex- easy to use so subscribers existing markets. ploring new market segments. can customize products and “The whole industry The panel discussed the “We are crossing boundaries increase up and downstream is trying to find the changing residential market of access networks bringing speeds.” winning strategy in which subscribers want to cable and wireless together. As The consensus of the panel for understanding customize communications traditional residential markets was that delivering the highest people in and and entertainment systems. mature, service providers have possible service combined outside homes. Rodrigo Duclos, CTO at Net to fight for every customer. with innovative products is Servicos, explained that in the Keeping existing clients through essential. While agreeing there It is likely to be a relatively new Brazilian cable high service levels and deliver- are enterprise opportunities, combination of all industry MSOs are concentrat- ing multimedia applications over exploiting them seemed to de- available options ing on residential and mass reliable, broadband pipes are pend on the sophistication and backed by solid IT markets. “We have focused high priorities,” said Vari. maturity of the national cable infrastructure.” on getting into homes and He continued, “Exploring market and each MSO. www.tmforum.org / Perspectives / 73
    • IPTV and Mobile TV Still standing at the crossroads IPTV at least seems to be moving forward, but the arrival of over-the-top players is not necessarily what network operators were hoping for in terms of progress. Mobile is still struggling to find viable business models, as yet more standards are introduced. The road ahead is not certain for either, although the potential markets are huge. By Ankush Chibber 74 / Perspectives / www.tmforum.org
    • IPTV and Mobile TV AT THE END OF 2009, top (OTT) models in the near Ecosystem (DECE) brand and up and usage. “Operators will evidence emerged suggest- future. Fleece comments, the willingness of traditional have to improve and maintain ing Internet Protocol televi- “TV-Everywhere and other retailers to join and support quality of content program- sion (IPTV) has finally come similar subscription authenti- this consumer purchase and ming, address customers’ per- out of its infancy. Multimedia cation models will remain vital rights management model will sonal interests and profitable Research Group (MRG) fore- to maintain the current level be interesting to watch.” segments in all resolutions cast global IPTV subscribers of monetization.” DECE (see top panel on [SD, HD, mobile],” he says. will grow from 28 million in page 79) is a cross-industry, Operators need to bet- 2009 to 83 million in 2013, a OTT muscles in global initiative for digital rights ter integrate TV with other compound annual growth rate Fleece argues there are a backed by Paramount Pic- consumer electronics such (CAGR) of 31 percent. couple of important questions tures, Warner Bros., Sony, HP as PCs, smartphones, and However, although the in- for the industry to address and Microsoft, among many hosted services. “We should frastructure is mostly in place, in the coming year. He says, others. It aims to enable con- also see distributors and IPTV operators have consider- “The continued slow growth sumers to buy content from operators getting negotiating able challenges facing them in of TV widget applications is anywhere that has the DECE leverage with content provid- 2010. “One of the key trends something that will be looked approval mark, and to transfer ers to unbundle linear content will be operators moving IPTV at very acutely in 2010. How- that content to other devices programming packages…as from being just ordinary TV ever, there are much bigger without further payment or fuss. this will allow operators to over a different technology questions about the future of compete down market with to becoming a more interac- set-top box-based operator Marketing, marketing lower prices through lower tive and PC-based, broadband services, given the arrival of The report by MRG also cost of content to the end- video-like experience,” says OTT broadband video services forecasts a better perfor- customer,” Fleece claims. Stephen Fleece, leader of TM from the likes of Roku, mance by IPTV players on the However, Rita Van Galen, Forum’s Value Chains Initiative. Amazon and Netflix.” back of new strategies and an independent, Netherlands- Fleece reckons the sector In particular, the mainte- services, which will push up based analyst says that it’s not is likely to see a dramatically nance of net neutrality and their total service revenue to content so much as marketing increased selection of on-de- how to monetize managed $38 billion. that will change the game. She mand content and improved IPTV networks (in the face of “Consumers are beginning says, “Operators in Europe personalization, recommend- unmanaged neutral Internet to understand the advantages and other parts of the world ation, search, and program- broadband networks of IPTV,” says Gary Schultz, have typically never indulged ming guide capabilities. supporting OTT video) are MRG’s president. “Simul- in dedicated marketing for “Getting the licensing vexed questions. taneously, IPTV operators their IPTV offerings. Given that agreement to do this is a “IPTV operators are also are facing more competition constantly feeding exclusive big task and will take time, preparing for 3DTV and its and driving rapid investment content is too expensive, but efforts are beginning to bandwidth and network in infrastructure and new content strategy must be overcome this year,” he adds. management demands,” services.” complemented with a stronger There is likely to be some Fleece continues. “This Fleece believes network marketing strategy.” merging of ordinary TV-based year will see the launch of operators’ priority should be a Van Galen states that programming with over-the- Digital Entertainment Content hybrid strategy to drive take- simply printing catalogs and www.tmforum.org / Perspectives / 75
    • IPTV and Mobile TV offering e-programming has the backing of LG and Fleece comments, “Me- guides is not enough. “Op- Samsung, as well as a num- diaFlo is just ramping up erators will have to deploy a ber of U.S. broadcasters. It is services for the U.S. market, more focused and personal a potential rival to platforms after the delay in the move to approach,” such as that of that stream TV content across digital over-the-air TV transi- Flixster, the social network mobile networks, such as tion last year,” he says. “The where friends recommend Qualcomm’s MediaFLO. new ATSC standards have movies to each other and talk In September 2009 GSMA, little potential for mobile net- about them online. which represents the inter- work operators to monetize “Recommendation is the ests of the worldwide mobile and hold more promise for new buzzword,” she says. communications industry, TV stations operating in large “Amazon is selling almost half announced it had endorsed a urban areas.” the number of books through new 3G Partnership Project He observes that growth recommendation as it does standard called Integrated in the linear programming through customers’ Mobile Broadcast. This was broadcast model with non- independent requests.” developed in collaboration targeted advertising seems Fleece says, “Major social with Orange, SingTel, to moving slowly, and suc- network widgets for TV will Softbank, Telstra, T-Mobile cesses are mostly in niche see modest growth, but and Vodafone. programming like live sports strong momentum will contin- Back in July 2007, the and news. ue to accelerate in mobile and European Union expressed PC devices, and networks.” support for the Digital Video The impact of 4G Targeted mobile advertis- Broadcasting for Handhelds, “Hybrid models that are ing, though a small market in (DVB-H) whose development mobile phone-centered may comparison with TV, will see was initiated by Nokia. It had emerge later this year or into continued incremental growth been adopted as a European next,” Fleece says. “Espe- in 2010 and could introduce Telecommunications Stan- cially between 3G/4G telco new business model innova- dards Institute standard. services for on-demand or tions – particularly in emerg- Rival companies in China, short form video content, and ing markets, according to the U.S. and Korea were TV station, broadcast-based Fleece, who adds, “I predict alarmed, but it seems they content that is for live video.” we will see greater penetra- needn’t have worried, DVB-H While the deployment of tion of product placement in failed to take off. 4G, due to begin in earnest content in the coming year.” “These are important times this year (see page 50) will be in mobile TV and the issue of important for operator-based “Growth in the Standard soup multiple standards is distract- mobile video services, Fleece Mobile TV has been in flux ing,” Van Galen says, par- notes, “The battery life of such linear programming for a long time and in October ticularly as there is still great mobile video devices may limit broadcast model 2009, another standard was uncertainty about mobile TV’s usability and demand, this year with non-targeted introduced in the shape of business models and the vi- and into the future.” advertising seems Mobile DTV, approved by the ability of these services. Van Galen argues that the to be moving slow- Advanced Television Systems “There are arguments for key component of a success- ly, and successes Committee (ATSC). both free and fee-based mo- ful mobile TV service has to This has opened the doors bile TV, while the role of each be pricing, given that mobile are mostly in niche for U.S. broadcasters to player in the value chain, be TV models so far have failed. programming like provide services to mobile it the telecom operator or the “Fee or free is the key ques- live sports and devices using their digital TV content provider, is yet to be tion at the crux of it,” she news.” transmissions. Mobile DTV fixed in stone,” she says. concludes. 76 / Perspectives / www.tmforum.org
    • Future Shock When access is like oxygen Native web companies and their over-the-top models are going from strength to strength, over fixed and mobile networks. Meanwhile the entertainment, information and communications industries’ business models are being destroyed, and they are struggling to come up with viable new ones. Times are tough, but there’s lots of help at hand, especially if the parties involved are prepared to help themselves by helping others. By Annie Turner FIXED BROADBAND HAD 2009 and recovery is looking already become commoditized slow. when the web via mobile be- There’s worse news too. came a reality in 2008 with the Lucy Hood, executive direc- launch of the iPhone. Almost tor, University of Southern single-handedly, it gave rise to California, Marshall School of the digital ecosystems that the Business, Institute for communications industry has Communication Technology talked about for so long. Management (CTM), says, In the midst of the fast, furi- “What most people want, ous and accelerating transfor- according to our research, mation brought about by the is uninterrupted entertain- web across multiple platforms, ment [without advertising], there are major ramifications but there’s also a limit to how for the communications, much people will pay for it.” information and entertainment industries. No dramatic rise The global broadcast and CTM has not seen a dramatic cable industry grew 3.9 per- rise in how much people in cent in 2007 and is predicted the U.S. spend on commu- to be worth $291.8 billion in nications and entertainment 2012, according to Datamoni- in the last 20 years, nor does tor. TV advertising generates it expect to. Hood says, 52 percent of the broadcast “There’s a real resistance to and cable TV market’s value, additional premium revenues but the sector faced the most and micro revenues among adverse conditions ever in consumers.” www.tmforum.org / Perspectives / 77
    • Future Shock Piracy on TV the age of interactive content Internet,’ because it’s absorb- operators possibly afford to Broadcast and cable TV’s (and piracy), and scarcity is an ing everything. Some 1.5 invest in new technologies advertising revenue woes are anathema when the consumer billion people use Google’s such as Long Term Evolution already and will continue to expects stuff to be “there”. products online. We’re work- to accommodate the soaring be exacerbated by fragmen- Illegal music file sharing ing on the more than 4 billion traffic levels?” tation. There are hundreds boomed because there was who will access the web via of channels available via no straightforward way for their mobile phones.” Planes apart satellite and cable, as well people to purchase music Against this backdrop, the Transmission and services as growing competition from digitally, until Apple launched multi-billion dollar question were, for decades, on the online services and piracy is a iTunes and made buying more is, as Brian Levy, formerly VP same plane, but now they big worry. convenient than stealing. and CTO, HP Communica- have split apart. At the same In November 2009 Forbes Still, the music industry’s tions and Media Solutions time it isn’t just new media magazine revealed Carpathia physical sales are diminishing points out, “How can network that aren’t limited by geogra- Hosting handled 0.6 percent by more than 5 percent per phy (such as Google, Face- of all Internet traffic in July year and digital is not making book and YouTube); ordinary 2009. That is twice as much up the deficit. Nor will it. “It isn’t just TV and radio channels have as Facebook and half as much While media companies new media that broken out of their national as is used by all of Microsoft’s are acutely aware of what aren’t limited by boundaries via the web. Internet properties combined. has happened in the music geography (such as This poses a huge problem Carpathia allegedly hosts business, they aren’t mak- for network operators, be- traffic for illegal content shar- ing paying for digital content Google, Facebook cause they are still bounded ing services such as Mega- easy. They have created their and YouTube); by the reach of their physical video and Megaupload. The own distribution rights, rules ordinary TV and infrastructure. In media and Forbes article said “Together and methodology. Depending radio channels have on the web, business cases they offer, at no cost, practi- on which distribution chan- are built on how many people broken out of their cally every popular television nel they want to use, there’s you can sell to, while network series episode by episode a different cost loading and national boundaries operators have, for example, (Mad Men, for example), pricing associated with it, and via the web.” a finite audience they can music albums (such as Jay consumers are confused. present to advertisers. Z’s The Blueprint 3) and films, Cloud computing is seen as including several still in the- Booming traffic the Wunderkind of 21st cen- aters, such as Where the Wild Social networking via mo- tury communications and it is Things Are and Zombieland.” bile is a key component in generally associated with the Previously Hollywood has the explosion in web traffic. Internet. Yet network opera- exploited its content through There had been a 249 percent tors are trying to differentiate a series of windows – a growth in social networking their cloud services from sequence of different chan- via mobile in the U.K. and the Internet and each other, nels over a period of time. 156 percent in the U.S. over claiming better service levels, This typically meant a film the previous year, according for instance. The problem opening in movie theaters, to a Nielsen Online report in comes back to their limited then becoming available on March 2009. geographic coverage (for DVD or for download weeks Google believes the future more details see TM Forum or months later before of mobile is the web and that Quick Insights Report Seeing eventually appearing on TV. we are at the beginning of through the Clouds). It was a way of creating the next computing cycle. There is lots going on scarcity, thereby being able Nick Heller, new business though that could help the to demand a premium price development EMEA, Google, communications, enter- at each stage. comments, “To quote our tainment and information This doesn’t play so well in CEO, ‘Don’t bet against the industries claw back territory, 78 / Perspectives / www.tmforum.org
    • Future Shock develop new business mod- focused on APIs for devices. Back to the garden? els and increase revenues all The next step for these round. parties is to work closely There are developments un- that is studio-supported and The arrival of the next together to ensure all the derway to enable charging for global. Members include version of the universal different aspects of API stan- content that was previously Paramount Pictures, Warner Hyper Text Markup Language dardization are aligned and free online or that users had Bros., Sony, HP and Micro- (HTML5) in 2009 has big make a coherent whole. to pay for more than once to soft, among many others. implications. Already, Palm, run it on different devices. Provisionally named the Apple, Android and Opera Federation is the future In 2009, Disney announced Digital Entertainment Content browsers are using WebKit If the CSPs were willing and it was developing Keychest. Ecosystem (DECE), the initia- based on the HTML5 plat- able to federate their net- “The technology would allow tive aims to enable consum- form, moving beyond Web works to provide more servic- consumers to pay a single ers to buy content from 2.0 capabilities to support es, extending the model they price for permanent access anywhere that has the DECE high-fidelity rendering, akin to use to provide global voice to a movie or TV show across approval mark, and to use a native application, through service and SMS, then the multiple digital platforms and that content on other devices the browser. service plane would extend devices – from the web, to without further payment or across all the networks. mobile gadgets like iPhones fuss. Help via HTML5 There are signs this feder- and cable services that allow Levy comments, “This is HTML5 enables frictionless ated approach between on-demand viewing. It could the next horizon; it’s all very updates that, for instance, network operators is gaining also facilitate other services new, but it’s still difficult to will be important to advertis- ground with the formation of such as online movie sub- overstate it’s importance.” ing (including mobile apps). the Wholesale Apps Commu- scriptions,” according to the Unfortunately, it looks like we Perhaps most importantly of nity, announced at the Mobile Wall Street Journal in October have another head-on battle all, though, is the fact applica- World Congress in Barcelona 2009. like VHS versus Betamax and tions can run on any platform, in February 2010 (see page There is also a new, cross- Blu-ray versus HD DVD on our meaning many versions will 81), which is encouraging. industry initiative on the way hands – DECE versus Disney no longer be required. Levy argues, “If we were – the first for digital rights Keychest. This also plays to what net- able to [extend the federation work operators are trying to of networks], my contention do through BONDI, which is is that there would be more to figure out how to expose value for everyone involved: Disruptive models systems and networks that over-the-top players could enable third parties to put provide guaranteed quality A small Swedish company ing catalog of music on an two-sided business models services and cloud services, has come up with a different all-you-can-eat, on-demand in place. and it would be easier to model that is garnering terrific basis. When users pay for the HTML5’s attributes could offer real-value content ser- popularity in Sweden, Nor- premium service, they get expose the abilities of the vices that people would be way, Finland, the U.K., France the Android or iPhone app so browser to the telecom world happy to subscribe to. And, and Spain – all places where they can still play music when and combine well with its there would be more money digital rights have been ironed they’re off-line. work on standardizing ap- in the equation for network out. It is working to obtain Access is replacing the plication program interfaces operators to invest.” digital rights in other places, need to own content, and (APIs). It would certainly help including the U.S. Spotify is the proof of the to reduce the development This service, Spotify, pudding. The web offers end- costs – eventually. This article is an abridged version streams music free of charge, less possibilities for new busi- Different aspects of net- of TM Forum Quick Insights Report but with ads included. If users ness models and approaches, Future Shock: When Access Is Like work APIs are being worked prefer, they can pay £10/€10 and those that are massively Oxygen, which is based on the highly on variously by TM Forum, interactive roundtable discussion at subscription per month for an popular now – even iTunes – an ATIS sub-committee Management World Americas, in ad-free service and access its do not have a monopoly on and GSMA, while BONDI is Orlando in December 2009. extensive and rapidly grow- success. www.tmforum.org / Perspectives / 79
    • Mobile Advertising When ads are apps the game changes Battle lines are being drawn as mobile web access heads for the mainstream and the massive potential of mobile advertising becomes apparent, driven by the staggering popularity of apps. Google is anxious to replicate its success with online advertising, and Apple showed the way. The question is, how will the mobile operators make money from the new ecosystem? By Annie Turner GOOGLE WAS THE FIRST space of a decade. realized early. It was also quick ed for 11 percent of smart- of the native web compa- That give-them-something- to understand the impact of phones globally early in 2009, nies to figure out that if you they-want model is transfer- the iPhone and its ecosys- they generated 65 percent of provide something useful, ring to mobile very well, it tem, the App Store, although mobile data traffic in the fall of free of charge, people accept turns out, with lots of varia- perhaps no one could have that year, according to Mary advertising so long as it’s not tions on the theme (see panels foreseen to what extent the Meeker, managing director, obtrusive or obstructive. That on page 82) – and mobile is combination would transform Morgan Stanley. By January is how search became a multi- going to dwarf computer- the mobile landscape. 2010, more than 3 billion apps billion dollar industry in the based access, which Google While iPhones only account- had been downloaded from 80 / Perspectives / www.tmforum.org
    • Mobile Advertising Apple’s App Store in the 18 communications service pro- only to be faced with signifi- via their mobile phone bill, months since its launch. viders (CSPs), has done little cant integration and scalability instead of using a credit card. It is staggering to consider to calm nerves. This is why, challenges. It’s important for Dr. Rainer Deutschmann, that, relatively speaking, Apple in February 2010, some 24 operators to adopt a common SVP, Mobile Products, is likely to become a niche network operators and three approach, and this will depend Deutsche Telekom, told a player as Android takes off handset makers announced on them aligning with a stan- press conference, “We envi- and the cost of smartphones they had formed the Whole- dard IT architecture. TM Forum sion a PC-like environment plummets in the developing sale App Community. delivers the IT architecture where it doesn’t matter what and developed world, with Between them the op- standards and best practices PC you are using, and if you costs driven down by the likes erators have around 3 billion that enable this kind of agility change your PC, you don’t of HTC and Huawei. subscribers, almost half the and which will be a critical lose all your applications.” Google’s contention is that world’s population and almost success factor for a wholesale How well the operators the future of mobile is the web three quarters of its mobile applications environment.” execute their plans remains and it likes to cite Meeker’s phone owners. The idea is Interestingly, operators are to be seen. Also, while apps argument that the mobile that developers will be able seeking to cooperate with were definitely the hottest of ‘computing’* market will be ten to go to one place to get their the new players as well as hot topics when Perspectives times bigger than the PC. That’s applications approved and compete against them. For went to press, cooler heads why Google propagated the in- distributed instead of having to example, two days after the could conclude that with and dustry-wide Android initiative, to go through multiple approv- Community announcement, without apps, there are lots enable it to replicate its search als. Also, the Community is T-Mobile said it will enable its of opportunities for CSPs in and advertising success online to start work on a common customers to download apps mobile advertising. on an even bigger platform. app development standard from the major stores and For one thing, network op- The only thing that is in over the next year, that will be allow them to pay for the apps erators could adopt the feder- doubt is the timeframe – how independent of phone type ated approach they are taking short will it be? In February and operating system. with apps to other services. 2010, Dr. Jagdish Rebello, In short, the network opera- “[Deutsche One of the drawbacks with principal analyst with research tors (and handset makers Sony Telekom] envisions a mobile advertising from the house iSuppli, said in a state- Ericsson, LG and Samsung) are PC-like environment brands’ point of view has been ment, “If Google executes [its] banding together to compete fragmentation. Brands want strategy correctly – by working more effectively against where it doesn’t big audiences, and to avoid with and not against the rest Apple’s App Store and Google’s matter what PC you working with four or five CSPs of the mobile value chain – the Android Market, so that they are using, and if you – each of which has a different wireless industry will be well gain revenue from apps in- change your PC, you way of working – to reach their positioned to unlock the next stead of simply carrying them. target audiences. trillion dollars of value by the TM Forum has expressed its don’t lose all your The most obvious solution end of this decade.” support for the initiative. Keith applications.” to this is for operators to team He went on to suggest that Willetts, CEO and chairman of up to form a single, contiguous Google could reshape the in- the board, says, “TM Forum channel, as they have done suc- dustry, replacing income from has been calling for industry cessfully in Austria, to enable services such as voice with ad collaboration in this area for people to pay for car parking. revenues as the foundation of some time, and we strongly In addition, every time the business. support the Wholesale Ap- people make phone calls, This would be very good plications Community and the CSP collects data about news for all sorts of players in its goals.” Details of both its them and their activity from the value chain, from handset Content Encounter program something like 14 different makers to app developers and and Service Delivery Frame- data points – from setting the big brands – but not necessar- work, designed to standardize call up, to invoking records ily for network operators who and streamline the delivery of for billing. Accurate consumer could find themselves carrying content, can be found on TM profiles can be built up from more and more traffic without Forum’s website. much less, and of course the getting a share of the revenue. Willetts adds “In the past, great thing for operators is that Google’s continually reiter- we’ve seen the market take a the information is added to ated mantra that it wants to siloed approach to developing and refined all the time. work in partnership with the and delivering applications, This means CSPs are well www.tmforum.org / Perspectives / 81
    • Mobile Advertising placed to identify influencers even at a simple level, billing cause it is something almost (and is an area that TM Forum too by analyzing calling patterns. has a lot of potential to gener- everyone will want to look at.” is beginning work around) We could see the development ate mobile advertising revenue Finally, CSPs could also and offers the potential of of a new business model for and reduce costs. He points enable payment for smaller many variations. For instance, advertising – pricing by influ- out that since November 2009, items such as digital goodies network operators could ence, not per set of eyeballs, many consumers in Canada or a book sent in the mail, or a provide a basic service free of Rory Sutherland, vice chairman, have been able to look at their downloaded movie, through a charge, and charge for more Ogilvy Group UK, suggests. mobile bills on their phones. customer’s phone bill. sophisticated features, or offer Uniquely, CSPs can zero He says, “This is a simple The great advantage is this a service free of charge initially rate (not charge the user for) but great idea because it cuts doesn’t involve credit cards or (sponsored by an advertiser), traffic associated with an ad down the number of phone inputting any other sensitive then charge subsequently. The being delivered on a phone. calls to the operators’ call payment data. Instead, such scope is endless. Patrick Parodi, managing centers massively. It’s near transactions require minimal * See TM Forum Quick Insights Report director, EMEA, Exicon, says, real-time information and they inputting of any sort, remov- Future Shock: When Access is Like “As a result, they are the only don’t have to post a paper ing the barriers that inhibit Oxygen, which can be downloaded ones capable of delivering on bill to you, which means they impulse buys, and of course from the TM Forum website. true ad-funded models. One save the costs of around $6 enabling operators to get a This article is largely based on the example of this is peer-to- per document, per person. share of the revenue. TM Forum Quick Insights Report peer SMS ad insertion.” Also, there is an opportunity to This combination of mobile Monetizing Mobile: When Ads Are Colin Orviss, SVP, Patni carry unobtrusive ads on the advertising and payments Apps, which can be downloaded from Computer Systems, thinks that bill on the mobile screen be- could be a very powerful one the TM Forum website. Endless variations on the theme Just shake it In December 2009, Reuters es- “We are paid to create apps Smart phone ads in general ever ‘shakable’ iPhone ad timated the iPhone game devel- for our clients all the time, but have become far more in- for clothes retailer Dockers, oper Tapulous earns almost $1 the consumer chooses which novative and consequently advertising its Vintage Work- million per month (it has only 20 apps they want to download popular in their own right. wear line, created by Media- employees) solely from Apple and use. For instance, there They exploit the bigger lets. It features Dufon from App Store sales, netting over are maybe 15 apps offered or screen, greater processing a dance group called Circle $300,000 a month for Apple, as being built right now that will power and unique attributes, of Fire. To get him to dance the iPhone maker/store owner find the nearest clean public such as the motion sensor, more or change his moves, takes a 30 percent cut. toilet for you, and one hits big. which allows the user to the user shakes his or her In addition, as a 99c app, The beauty of it is, you can view the screen in either mobile phone. It’s embedded its most popular game when then brand it retrospectively.” portrait or landscape mode in a range of free apps. we went to press, Tap Tap He cites SitOrSquat, a wiki by simply turning the phone In August 2009, Silicon Revenge 3, reportedly had model iPhone and BlackBerry 90 degrees. Alley Insider stated Medialets sold about 1 million songs app, developed by a start-up in iBeer, which sloshes ‘beer’ had signed up more than embedded in the game. Then New York. It now covers bath- around as though the iPhone 1,000 app publishers and had the company thought the rooms in more than 10 coun- screen were a glass, costs reached more than 14 million guitar hero game would reach tries and has been sponsored 99¢ and has been very popu- unique users since summer a much bigger buying public by toilet paper maker Charmin lar indeed. 2008. That equated to about by making it free of charge. since March 2009. New York-based ad agency 40 percent of all iPhones and It was right. In January 2010 Also, as Nick Heller, new Medialets’ raison d’être is to iPod touches that Apple had Tap Tap Revenge 3 had already business development, EMEA, popularize disruptive multi- sold up to then. been downloaded more than Google, says, “Ads in apps is media ads that capture users’ 20 million times, and the com- one of the fastest growing ad attention and fetch a pre- pany claimed it had 4 million products at Google. There will mium ad rate in the $20 to active players per month. be many more browser-based $30 cost per thousand (CPM) The beauty of apps is that apps that are linked to the range, according to a Silicon they can be adapted and their Internet ecosystem. This inno- Alley Insider report. life extended if they are a hit. vation is being driven by new A great example is what Ogilvy’s Sutherland points out, standards such as HTML5.” is claimed to be the first 82 / Perspectives / www.tmforum.org
    • Sponsored Feature What’s the next big thing in telecom and media? Chances are we’re already working on it! Tap into new revenues - Tieto makes advertising work for you Today most operators are looking into Operators have unprecedented oppor- The Tieto Advertising Platform pro- advertising as a new source of revenue, tunity to turn their services and cus- vides operators with all the tools they but building a new, viable business tomer interactions into innovative media need to exploit advertising and associ- model is challenging, especially in an products and tap into new revenues by ated areas of business across all their economic downturn. leveraging SMS/MMS/IM messaging, media assets. The modular structure Running a successful advertising the web via online and mobile access, means operators can select the mod- business is not simply about display- IPTV, widgets and applications, app ules they want as they need them, so ing ads, so much as their creation, and stores, contact center communications they can develop at their own pace in managing the media channels and sales. and so on. Today most of these are different areas. unexploited assets. The Tieto Advertising Platform is pre- Operators are in a unique position to integrated with leading telecom manu- provide contextually targeted ads by facturers’ products as well as with most profiling users and their usage, thereby mobile advertising networks. creating more value for their advertising customers. This is something that many traditional media companies can only dream about. As a leading telecom software R&D, IT services and integration provider Tieto has created a versatile Advertis- ing Platform for operators that enables them to maximize advertising-related revenues through multichannel delivery and a two-sided business model. With the Tieto solution operators can man- age advertising channels and get the Tieto is an IT service company provid- most from their ad inventory – building ing IT, R&D and consulting services. a viable business on multiple sources of With approximately 16,000 experts, advertising revenue. we are among the leading IT service To capture these new revenues companies in Northern Europe and the fully, operators need to look at tightly global leader in selected segments. We integrating advertising into their core specialize in areas where we have the business and operations instead of look- deepest understanding of our custom- ing at it as separate or in isolation. This ers’ businesses and needs. Our superior approach enables operators to increase customer centricity and Nordic expertise ad revenues and, at the same time, set us apart from our competitors. increase revenues from their core busi- ness, by using advertising, promotions Knowledge. Passion. Results. and rewards to foster customer loyalty and satisfaction. www.tieto.com
    • New Business Models Avoiding the dumb pipe dilemma Will communication service providers learn to exploit the emerging digital value chain, or will they be relegated to dumb pipe providers, disintermediated from their customers and continually struggling to increase profitability? As market dynamics change, service providers must learn how to adopt and evaluate new business models. They need to develop flexibility, agility and efficiency in their infrastructure, organizations, and processes to profit from them. By Rob Rich THE DRAMATIC INCREASES For their contributions, CSPs delivery infrastructure will all Framework NGOSS supports in traffic, increasing competi- would gain revenue from play important roles in the back office transformation). tion, and decreasing unit business users and consum- realization of the platform Much of the growth will pricing for services are ers, as they always have, but on which to base two-sided come from mobile subscribers making finding answers a in addition, they would be paid services. However they must and video services, especially burning issue. by business partners, most evolve from their present in emerging economies, due Perhaps the greatest chal- likely in the form of a fraction state to become sufficiently to the arrival of better mobile lenge lies in understanding and of the revenue generated by flexible and efficient enough connectivity and smaller, but addressing the nature of change the products and services they to attain the scale needed more powerful, devices such in the markets. enable (see Figure 1). to remove friction from the as smartphones. The move The two-sided business transactions. (see informa- to mobility will also drive model is hardly new; it has The platform is key tion starting on page 92 increases in subscribership to long been adopted in many The platform must be able to about how Frameworx, the video services, as the unit of other sectors. Credit cards address market needs and next generation version of subscribership moves from are a great example (income while many of CSPs’ core the widely adopted Solution the household to the person, from banks and merchants) capabilities – transport, settle- as is Amazon.com. In addition ments and billing – are key, Application to selling its own inventory, so are newer competencies, developers Amazon partners with com- such as location, authentica- petitors to provide marketing, tion, customer management, Service Retailers merchandising, and logistics and perhaps most importantly, Enabling services, and earns about 17 user information. Service pro- Platform Customers percent of the revenue from viders have a wealth of user Government e.g Transport competitors’ sales. information that could be used IT fixed/mobile Communication service pro- for personalization purposes, Billing voice DSL, Google/ Settlements content viders (CSPs) could augment creating a more compelling Authentication delivery, Apple/Nokia the delivery of core services experience for customers and Location media User Information broadcast through a variety of enablers a more efficient channel to Cloud/SAAS CRM that would improve the prod- market for partners. Finally, providers etc ucts and services of business service providers have a large partners (such as application customer base and an estab- CSP (Retail) developers, retailers, govern- lished, trusted brand. ment, device and web compa- Operations support sys- Source: STL Partners nies, cloud service providers, tems (OSS), business support Figure 1: A sample two-sided and perhaps other CSPs). systems (BSS) and service business model for the digital value chain www.tmforum.org / Perspectives / 85
    • New Business Models or even the device, as many Average 3.5” LCD TV ucts and video on demand, 2.5 2.5 10 10 people will own more than one. Hard Drive Shipped (TB) Sq. In. per $100 and a streaming platform for 2.0 2.0 8 8 There are highly variable 2.5 2.5 CAGR 58% 10 CAGR 11% 10 subscribers. It will also offer rates of change in various 1.5 2.0 1.5 2.0 6 8 68 public Wi-Fi for subscribers technologies and it’s hard to 1.0 1.5 1.0 1.5 4 6 46 and upgrade its broadband of- predict how they might impact 0.5 0.5 2 2 fering from 3Mb/s to 10Mb/s. 1.0 1.0 4 4 the evolution of business 0.0 0.0 0 0 0.5 models. Selected rates of 2008 2009 0.5 201020082011 20092012 2010 2011 2012 2 2008 2009 2 2010 20082011 2009 20122010 Possible 2011 2012 scenarios change are shown in 0.0Figure 0.0 0 0 Fixed and mobile service 2008 2009 2010 20082011 200920122010 2011 2012 2008 2009 20102008 2011 20092012 2010 2011 2012 2. For example, since storage providers have some tough Average Broadband Speed NAND Flash capacity per drive is growing (Mbps) GB per $100 choices to make – and soon. so much faster than fixed 40 40 CAGR 17% 400 CAGR 85% 400 CSPs could leverage their broadband communications huge customer and revenue 40 30 40 30 400 300 400 300 speed, there are huge implica- bases, and move aggressively tions for storage moving into 30 20 30 20 300 200 300 200 against web and over-the-top the cloud. This is even more (OTT) players. A series of 20 10 20 10 200 100 200 100 true for wireless broadband. smart acquisitions and dynam- Clearly these kinds of 10 discon- 0 10 0 100 0 1000 ic new services could allow 2008 2009 201020082011 20092012 2010 2011 2012 2008 2009 2010 20082011 2009 20122010 2011 2012 tinuities create opportunity communications companies to 0 0 0 0 for savvy players who quickly 2009 201020082011 20122010 2011 iSuppli, Gartner, DisplaySearch, OECD, Accenture 2008 2009 Sources: 2012 2008 2009 20102008 2011 20092012 2010 dominate the growing mobile 2011 2012 identify their impact. Figure 2: Rates of change in core technologies web market for anytime, any- For most companies in the where content, applications value chain, growth is a scale Though many perceive oth- new growth must be driven by information and commerce game, but the increments of erwise, Apple gains most of new services. The company such as mobile banking. growth and CSPs’ willingness its revenue through the sale of is approaching this through Players like Google, and ability to partner and share its hardware despite the huge business model evolution and Face-book and Amazon could revenue in that growth are publicity surrounding iTunes a multi-dimensional service come to see more value in quite different. For example, or the App Store, so growth strategy, including the con- partnering with communica- a company like Google gains comes from hardware up- tinued deployment of digital tions companies and strong growth through its global grades. This is why the consis- video technology, a massive go-to-market alliances could footprint and low infrastructure tent delivery of new products launch of high definition prod- form. It is even possible that costs, with annual revenues is so important. Apple’s global governments would eventu- per subscriber of fewer than footprint and strong brand ally relax tight controls on $20. This means growth re- are essential components of “Players like CSPs of all stripes, having quires very low per subscriber its growth strategy, as are its Google, Facebook seen the damaging effects of acquisition and delivery costs. partnerships. and Amazon could market distortions delaying The difficulty for partners come to see more the build-out of fiber and 4G Tied to new subscribers like AT&T is that without new networks. This would enable value in partnering CSPs to reinvent themselves For multi-services operators products to bundle into the (MSOs) with high ARPU, like portfolio, growth comes in with communica- as fast-to-market innovators of Comcast, growth is heavily small increments. Even so, tions companies the mobile Web 3.0 and make tied to new subscribers. Con- a data services contract with and strong alliances them a more attractive propo- sequently, similar players may a new iPhone customer can could form.” sition to the OTT players. struggle to grow with tradition- drive high infrastructure and It is possible that CSPs al services in highly penetrated support costs. could replace flat-rate plans geographies. In that case, they For Cablevision Argentina, with tiered, volume-based may look for growth through historical growth was realized pricing (see article on page acquisition of new territories, through the acquisition of a va- 50), although this could be a or new revenue streams, such riety of smaller cable firms dur- difficult sell as customers are as those Comcast hopes to ing a period of consolidation accustomed to flat-rate, falling generate through the joint ven- driven by the 2002 financial tariffs. It seems inevitable, ture it announced with NBC in crisis. Cablevision is now the though, that people and busi- December 2009. largest player in its market, so nesses will have to accept 86 / Perspectives / www.tmforum.org
    • New Business Models billing, settlements, location Implementing best prac- Revenues 2009E = Reach Users, x ARPU Users, USD Units or Subs Units or Subs and other services to applica- tices around operations, and tion, content and information developing strategies to best $17B 879 Million $19 service providers. leverage the cost efficiencies Net Advertising However, any gains in regu- and scale of new networks $23B 24 Million $964 latory relief will be hard fought. will be critical to success in Video CSPs will be challenged by profiting from access services the principle of net neutrality, in consumer markets. $32B 64 Million $497 regulators’ expectations that Moving to a leadership posi- Hardware they can exploit Moore’s Law, tion in two-sided markets will and difficulty on the part of the also be a challenge, requiring $54B 80 Million $673 regulators to fully understand continued technological and Wireless the implications of accelerating organizational change, as well 1 10 100 1,000 1 10 100 1,000 technology change. as a new view of markets that Sources: comScore, company filings, Accenture Having accepted their place must be driven across the Figure 3: Revenue models further back in the value chain, entire company. some of these new wholesale The key to success here tiered pricing when bandwidth In addition, economic recovery enablers could thrive and look is an understanding of the performance suffers due to is likely to take several years in for growth through wide- concept and importance of inability of service providers to some developed economies, spread mergers and acquisi- the platform, which extends invest in their networks. At a which typically have an aging tions, so we end up with a few way beyond CSPs’ general press conference in February population whose focus is giant companies straddling the definition of it – a techno- 2010, Dr. Rainer Deutschmann, more on saving. Hence an globe. A good number, though, logical or service delivery SVP, Mobile Products, ever increasing group of could to end up as dumb pipes, platform – to embrace brand, Deutsche Telekom, told a products and services will with thin profit margins main- scale, customer experience press conference, that people compete for limited incremen- tained through relentless cost and loyalty programs, as well would be prepared to pay for tal discretionary income. reduction and increased scale. as the underlying transaction good, better and best service, Another possible scenario The retail divisions are likely processing infrastructure. after LTE was rolled out, not is that, after years of being to have mixed fortunes. No CSPs will need to move necessarily based on volume, forced by regulators to provide doubt some would learn to from being vertically oriented innovate, while others would organizations to become more go into long term decline. horizontally structured, com- “Having accepted their place further back The innovators would tap into plete with implementation of in the value chain, some of these new advertising revenues as a new enterprise processes around wholesale enablers could thrive and look source of income to boost service fulfillment, assurance, flattening revenues. billing/charging and customer for growth through widespread mergers experience. and acquisitions.” Conclusion Finally, they will need to It is far from clear how roles gain quick understanding and but the applications they want wholesale services and endure in the digital value chain will accommodation of new prod- to run. So those who use their falling retail market revenues, evolve. After all, it is being ucts, services and business phones to text and talk would CEOs will decide to split their formed by a collision of mas- models to bring more value to be happy with the most basic wholesale and retail busi- sive proportions between pre- customers and partners, while package while those whose nesses into separate divisions viously different industry seg- maintaining speed, efficiency, main interest is streaming or even entities. This would ments, each bringing its own and quality of customer video would be prepared to allow wholesalers to surge historical values, technologies experience. This is a tall order pay more for a faster service. ahead, providing a range of en- and business models. So for companies who have been Yet as we went to press in abling services to various OTT while some gains may come doing business essentially the early 2010, T-Mobile, Verizon companies. The wholesalers from pricing schemes, service same way for decades. and AT&T in the U.S. had all could tap into these emerging providers’ best opportunity for This article is an abridged version of the TM recently reduced prices on income streams on a revenue increasing profitability on core Forum Quick Insights Report Monetizing their unlimited mobile voice share basis, providing trans- access services likely lies with New Business Models, which can be plans by 30 percent or more. port, security, authentication, gaining scale and efficiency. downloaded from the TM Forum website. www.tmforum.org / Perspectives / 87
    • Global Innovation The next 10 big things starting now It’s been said that the 21st century will go down in history as the century of communications. Already it’s hard to remember what life was like before mobile and the Internet (and more latterly the combination of the two) transformed the way people live and work in developed economies. They are benefiting more and more people in developing economies too. By Karen E. Thuermer HERE ARE TEN BIG NEW capabilities – something once gest change since it morphed innovations that we think will thought extremely unlikely. into a mass medium 1993. Late have a big influence on lives Analysts reckon that of in October 2009, The Inter- and lifestyles in the next five the 1.2 billion mobile phones net Corporation for Assigned years, around the globe, in no shipped globally in 2009, Names and Numbers (ICANN) particular order. nearly 190 million were approved the use of non-Latin smartphones. Frost & Sullivan characters in web addresses. Mobile web predicts that five years’ time, According to ICANN, of the Early in 2008, the launch of almost all phones sold in the 1.6 billion Internet users today, the iPhone around the world U.S. will be smartphones. more than half use languages almost single-handedly kicked What’s more, ABI says the that have scripts that are not off the mobile Internet, or cost of 45 percent of smart- Latin-based. The [U.S.] National more accurately, mass access phones shipped globally will Science Foundation predicts to the Internet via the mobile be under $200 by 2015, broad- that the Internet will have nearly phone, and ushered in the era ening the market for them 5 billion users by 2020 (com- of the app store (see below). massively. pared to1.7 billion today). Some ABI Research observes that pundits warn this huge change now more users are buying The Internet 2.0 could spawn opportunities for handsets based on the operat- The Internet turned 40 in 2009 cybercriminals to create even ing system and software and is on the brink of the big- more scams and fake websites. 88 / Perspectives / www.tmforum.org
    • Global Innovation Cloud computing of 2009 and Quattro Wireless continuing to boom. Facebook Online when offline Cloud computing (see ar- early in 2010, respectively. At started 2009 with 150 million Something big happened ticle on page 63) provides a the moment, those embed- users and ended it with ap- in 2009 that went relatively service by combining virtual ding the advertising in the proaching 500 million. unnoticed: The arrival of computing and broadband apps are making the money, Twitter has been hugely HTML5, which has big impli- capabilities. In particular, it has but it’s telling that Apple popular and, at the end of cations for the entire online the potential to reach count- said in February 2010 it will 2009, looked to have found a world (see article on page less small and medium size prohibit location-based apps way of monetizing its micro 79). Instead of only native enterprises who do not have whose primary function is blogging service, having apps, there will be many the bandwidth or resources to advertising. This suggests it signed up search deals with more browser-based apps maintain, constantly upgrade has its own plans. Google and Microsoft. that look and feel like a native and back-up business applica- app, but are linked to the tions on their own systems. entire Internet ecosystem. TM Forum Cloud Services “At the moment, those embedding the Already Palm, Apple, An- Program, in liaison with the advertising in the apps are making the droid and Opera browsers are Distributed Management using WebKit based on the Task Force and the IT Service money, but it’s telling that Apple said in HTML5 platform, moving be- Management Forum brings February 2010 it will prohibit location-based yond Web 2.0 capabilities to together cloud users, tech- apps whose primary function is advertising. support high fidelity render- nology suppliers and service This suggests it has its own plans.” ing, akin to a native applica- providers better to under- tion through the browser. stand customers’ needs and This also plays to what remove barriers to the growth Relatively speaking, Black- Social networking has been network operators are trying and success of cloud. Berry, Palm and Android are hugely influential in mobilizing to do through BONDI – figure in their infancy concerning public opinion and fostering out how to expose systems Apps and stores apps, but this will change activism. Perhaps the most and networks to enable third At the time of writing in dramatically in the next few famous examples of social parties to put two-sided February 2010, Apple’s App months, and network opera- media playing a big role are business models in place. Store officially had more than tors too have jumped on the President Obama’s election HTML5’s attributes could 140,000 iPhone applications bandwagon, forming the campaign and during the pro- expose the abilities of the and downloads surpassed 3 Wholesale App Community tests in Iran after the general browser to the telecom world billion in January 2010. This in February 2010. The plan is election of June 2009, which and combine well with its demonstrates the continuing that developers will only have was allegedly rigged. work on standardizing appli- huge potential for apps and to get one set of approvals Now TM Forum is exploiting cation program interfaces to app stores, and looks to be and develop one app to run on these attributes with its online reduce development costs. the trigger that will turn mo- a uniform, common platform. developer network and open bile advertising into a multi-bil- Between them the 24 opera- collaboration community. This Mobile payments lion dollar business, eventually tors involved have 3 billion online meeting place changes The business models and (see article on page 80). mobile subscribers. the way members can ap- value chains have yet to be Google and Apple are squar- proach standards by offering a sorted out in many places, ing up over this potentially Social media place for professionals to net- and regulation is also prov- huge market, each having Social networking venues work, access expertise, make ing a sticking point in many acquired a mobile advertising like MySpace, LinkedIn, changes and additions, and markets. Nevertheless, TM network – AdMob at the end Facebook, and Twitter are collaborate on future standards. Forum predicts that in the www.tmforum.org / Perspectives / 89
    • Global Innovation “In February 2010 Apple celebrated the download of the 10 billionth iTunes track… Before iTunes, there had been no simple way of paying for music downloads, which was largely responsible for widespread piracy and illegal file sharing.” next five years mobile pay- off the desktop and moves later), pundits are predicting Pay once, consume ments will have become part them to servers – and it’s that in the fullness of time, In February 2010 Apple cel- of everyday life for many mil- much more energy efficient the iPad will have two cam- ebrated the download of the lions of people in developed to run many screens and eras for video conferencing, 10 billionth iTunes track since and developing economies. relatively few servers than perhaps 1080 HD TV its launch in the U.S. in April Safaricom’s M-PESA mo- have a PC on every desk. reception, recording and 2003. Prior to iTunes, there bile money transfer service Elsewhere, Ericsson’s Base nano projection. had been no simple way of has generated huge amounts Transceiver Station (BTS) Pow- Many have scoffed that paying for music downloads, of publicity (overshadowing er Savings feature is in use in it is too big to carry around. which was to a large extent two hugely successful mobile Vodafone Germany’s network. 2ergo which is developing responsible for widespread money transfer services in It cuts energy consumption by iPad apps says that is miss- piracy and illegal file sharing. the Philippines). between 10 and 20 percent. ing the point; it will be more The entertainment industry Safaricom’s annual report Late in 2009, Nokia Sie- likely to reside on people’s is acutely aware of the music published in 2009 revealed mens Networks launched its knees while they are watch- business’s experience and, that mobile money transfers Energy Solutions range, which ing TV to flick through a in an effort to reduce piracy contributed 4 percent of its includes intelligent energy virtual magazine. and establish other revenue revenue – often cited as the control with remote monitor- All round, the iPad is likely sources (see page 77), a first real proof that money ing of all power sources and to put a strain on fixed and cross-industry consortium can indeed be made from mobile base stations. wireless network operators, has been formed to tackle mobile payments. which in the U.S. at least the issue. From 2010, many phones Tablet computing are under pressure from the The Digital Entertainment will have the near field com- On 27th January 2010, Steve regulator to supply the nec- Content Ecosystem aims to munications (NFC) – the Jobs, Apple’s co-founder and essary bandwidth. enable consumers to buy technology needed to enable CEO, launched the iPad, a At the beginning of Feb- content from anywhere that contactless payments – tablet computer designed for ruary 2010, two Federal has the DECE approval mark embedded in them. In the the consumption of me- Communication Commission and use it on other devices meantime, rumors abound dia, such as ebooks, video, officials wrote on the FCC without further payment or about Apple’s plans in this photographs and music – an blog, “With the iPad point- fuss. space. iBook store will be opened ing to even greater demand Unfortunately Disney has in support of the iPad later in for mobile broadband on the launched a similar initiative, Green IT the year. horizon, we must ensure Keychest, which promises to Given environmental Many commented that it that network congestion create a rerun of VHS versus concerns worldwide, big looked like a giant iPhone, doesn’t choke off a service Betamax and Blu-ray versus changes are underway for without the camera, but just that consumers clearly find so HD DVD battle. It needs to telecom and IT technologies. as the first iPhone lacked appealing, or frustrate mobile be resolved soon; this is a Cloud computing is many of the features it has broadband’s ability to keep crucial issue if all the parties potentially a greener solution today (and the App Stores us competitive in the global involved are to make money because it takes applications was launched several months broadband economy.” in the digital ecosystem. 90 / Perspectives / www.tmforum.org
    • Sponsored Feature RTP Monitoring – nice to have or essential to excel? Improving voice quality and network performance on IP networks Dr. Michael Wallbaum Director Product Marketing, VOIPFUTURE Fixed mobile convergence, IMS, NGN That’s exactly the objective of moving ers have found inconsistent QoS settings and triple play have become synonyms to an all-IP network, isn’t it? And all the that previously went unnoticed. For this for telecommunication drivers and all-IP mechanisms for handling your competing reason the intended prioritization was not network architectures. All of these archi- IP traffic are in place, right? performed by routers, causing sporadic tectures rely on the Real-time Transport The challenge of voice quality in all-IP poor voice quality. Protocol (RTP) as the core technology for networks is well understood. A variety Whatever the reason for bad voice real-time communication services. RTP is of technologies to provide Quality of quality, the service provider’s network used for the media transport of services Service (QoS) have been developed. is considered to be responsible. Precise such as voice and video. Once a voice However, even when QoS mechanisms measurements to evaluate your suppli- call is established, the flow of speech are deployed on your network, are they ers’ and interconnection partners’ perfor- is continuously chopped up into RTP really effective? Your network is not the mance are essential to guarantee agreed packets and sent across the line until the only potential source of impairments service levels to your customers. end of the call. – your supplier and customer environ- Metrics, designed for online monitor- Poor voice quality with broken-up ments might be responsible as well. The ing and network-wide analysis, are avail- speech or dropped words is a typical need for monitoring is imperative. able for historic comparison over weeks result of disruptions to the RTP packet Yet voice quality monitoring is annoy- and months. Observing quality over time flow. High quality connections demand ing when it simply confirms a known makes it easy to track changes to the a constant and steady RTP packet fact. When you feel sick you don’t need network such as new network compo- stream. In practice this flow of packets the doctor to tell you so. You want to nents, system upgrades or fixes. is frequently exposed to distortions with know what is wrong and what to do a negative impact on voice quality. The about it. To sum up: network, equipment, configurations and VOIPFUTURE’s innovative RTP moni- changing traffic load are highly dynamic toring solution provides the diagnostics • In contrast to circuit switched networks, sources of such impairments. In addi- to assess quality, to localize the root voice connection quality in IP net- tion, RTP packets share the line with all causes of impairments and consequently works varies and requires continuous other communication and data services. to improve voice quality and overall net- monitoring; work performance. The RTP media flow is continuously analyzed in real-time to • Responsibility for voice quality is diagnose issues such as limited band- distributed across different depart- width or improperly functioning network ments and business partners; components. In such cases voice quality is affected by drop-outs. • Monitoring without root cause analysis Equally hard to identify are typical is of little value; impairments from underperforming or misconfigured end devices. For instance, • A dedicated metric providing root poor firmware releases may be eating causes, diagnostics and performance up your available delay budgets. When parameters is essential to improve net- needed, such safety margins are no work performance and voice quality. longer available to your network. VOIPFUTURE’s technology is in place VOIPFUTURE’s RTP Monitoring solu- literally to visualize the enforcement of tion is key to successful voice service The central role of RTP Monitoring QoS policies. In many cases our custom- operation.
    • Annual Report TM Forum Annual Report 2009/10 A very warm welcome to all of our members to this Annual Report for 2009/10. What is TM Forum? cable and media along with cloud services and associ- With more than 700 member companies in 195 countries, ated enterprise customers, our membership includes a TM Forum is the world’s leading industry association providing sweep of companies from major global banks to the U.S. business-critical industry standards and expertise to support Department of Defense; the cost-efficient creation, delivery and monetization of digital • At our heart, we are a collaborative R&D and services services. organization owned by our members, with over 10,000 The Forum provides the critical business standards and best people regularly collaborating through state-of-the-art Web practices that are essential to driving service delivery costs 2.0 online communities; down while providing ever more for customers. Members • TM Forum provides a breadth of market research, newsletters include the world’s largest communications service provid- and magazines available in online and print formats, with a ers (CSPs), cable and network operators, defense companies, growing range in languages other than English; large enterprises, software/equipment suppliers and systems • Our members download more than 56,000 documents per integrators. month and more than 2,200 new website accounts are created TM Forum provides a range of information and support to every month; help its members reduce the costs and risks associated with • Our website – www.tmforum.org – receives an average of creating and delivering profitable services. These include 320,000 page views per month, from 30,000 visitors from access to exclusive industry research; a comprehensive 208 countries. inter-company benchmarking service; software standards and interfaces; technology roadmaps and best practice guidebooks; Strategy and leadership training, certification, conferences and publications. The TM Forum Board of Directors comprises C-level execu- The Forum also provides its member community with tives from a global cross section of the industry, including extensive marketing and networking opportunities, facilitating leading CSPs, solution suppliers and systems integrators. The business with new customers and partners. Board sets the vision and direction for the organization and, indirectly, the industry as a whole. One of the Board of Direc- Membership – interesting facts tors’ key responsibilities is determining how TM Forum will serve the industry by choosing the areas of focus, and setting • Despite the global economic downturn we have maintained and guiding strategic initiatives. The Board is supported by an our membership at well over 700 companies and grown our Executive Committee which provides regular oversight and community of active participants to over 100,00 people in guidance on the Forum’s progress and direction. 195 countries; TM Forum’s professional staff are based around the world, • Recognizing the value in our Frameworx process and systems with headquarters in New Jersey, U.S. The staff provides business architecture, our service provider membership specialist expertise in areas such as technical program man- has grown significantly. They now collectively cover more than agement and support, industry expertise, marketing, event 75 percent of communications customers world wide; management, training, market research, benchmarking and • With the broadening of our scope into defense communications, publications. 92 / Perspectives / www.tmforum.org
    • Annual Report Membership of TM Forum In addition to the Spotlight series we have established local As digital services mushroom and drive the demand for more chapters in Brazil and China. This enables member companies and more bandwidth, it’s an exciting time for our industry. Yet to meet on a local basis to work on TM Forum-related topics prices don’t keep pace with demand, so service providers are and activities. We plan to organize more Spotlight events, and forced to continuously become more efficient and effective at establish more chapters over the coming year. how they create and deliver services – often across complex Joining the TM Forum is easy! See http://www.tmforum. value chains. TM Forum’s Frameworx (the successor to NGOSS) org/HowtoJoin/2091/home.html provides an industry-supported roadmap for driving down operat- ing costs while driving up business agility and the quality of Collaboration Program customer experience. Frameworx contains the critical industry TM Forum hosts a vibrant and dynamic global community of standards, guidance and support that are needed at the heart of professionals who readily share information and reach col- a service provider’s operational processes and systems. laborative agreements to help the industry create long term, This has never been more relevant and consequently we sustainable, high performance businesses. Our comprehensive continue to see growth and engagement in our organization portfolio of standards, best practices, technology roadmaps, and its work, particularly a significant increase in our service specifications, certification, training and support, come together provider membership. During the past year, strong collaboration under a common umbrella called Frameworx, which is the next programs in cable and defense have lead to a strengthening generation of our highly successful NGOSS program. of our position in those markets. Perhaps the most signifi- Implementing automated and integrated processes using the cant move, however, has been the enthusiasm of those who Frameworx business architecture and standards help our industry buy and provide cloud services to engage with TM Forum to drive down operational costs, improve the customer experience, remove barriers to the success of this market, such as the lack and enables the rapid deployment of new and exciting services. of standardization. While this is a critical issue for our traditional The Forum’s Collaborative R&D Program is underpinned by membership base, it has also extended our membership into a state-of-the-art, online collaboration environment which was the banking, enterprise and IT/cloud service markets. rolled out during 2009. This allows easy interaction between Our full membership list is available at http://www.tmforum. users and creators of collaborative work, using a variety of org/MemberList/737/home.html mechanisms including discussion boards, wikis and blogs. The environment leverages many successful social and professional Building on the success of our regional program, in 2009 networking concepts. we added eight Regional Spotlight meetings, as well as four Our collaboration environment ensures that our work is easily topic-specific meetings for cable and defense, to our estab- accessible to the 100,000+ members of the online TM Forum lished portfolio of international and regional conferences. With community, providing rapid access to knowledge, guidance and up to 250 people attending each meeting, the Spotlight series expertise. It is home to more than 30 communities of interest, has enabled us to increase our engagement with our mem- with over 30,000 members active in these communities. bers as well as inform new prospects about what TM Forum Hundreds of individual experts from around the world has to offer. contribute their thoughts and ideas on a regular basis. www.tmforum.org / Perspectives / 93
    • Annual Report Participating is as easy as a point and click on the Forum together under the Frameworx Integrated Business architec- website (www.tmforum.org/community), with members’ ture and supported into market uptake by a wide range of sup- involvement ranging from simply commenting on discussion porting services (such as certification, benchmarking, events threads and contributing ideas, to leading a team to define a and webinars), along with specific industry sector support new industry standard. centers. Key work areas are shown in the diagram below. The work of the Collaboration Program is published as soft- ware downloads, documents and models which are available Collaboration Program interesting facts: to all members on the Forum’s website. Some of these are guidelines that can be used in framing a problem or setting • The Forum runs more than 30 major collaborative projects requirements. Some are frameworks for deploying integrated at any given time that involve more than 500 subject-matter operation processes and systems, while others include detailed experts around the world; standards specifications for systems interfaces. All work is • There are approximately 56,000 downloads from the Forum tagged with an indicator of technical maturity, along with the website per month; download counts and user feedback ratings, which allows our • The Forum maintains a case study library containing more community to make informed decisions about when material is than 300 successful projects based on TM Forum work, appropriate for their use. saving our members many millions of dollars in operations The output from the collaboration program is grouped and software costs; Market support centers Implementation support Conferences Benchmarking services Frameworx Training & Industry Managing Integrated Business Cable/MSOs Certification research reports Government new services Change initiatives Architecture & Defense OM) rk (eT ss Fram e Infor rk (SID) Fram ess Proc ewo matio Best Integration Industry Growing ewo practice guides publications cloud services Busin Framework n Product Webinars Application certification Framework Managing new technologies Catalyst technology Online incubators communities Collaborative Developer Communications R&D Network Developers and integrators 94 / Perspectives / www.tmforum.org
    • Annual Report • More than 200 significant contributions of work from cal items of current focus is the alignment of the interface member companies were received as inputs to collaborative suite with the Information Framework (SID), and the model- work during 2009. ing of wireless resources in the SID (working closely with 3G Partnership Project – 3GPP) to meet the clearly articulated 2009 achievements in the Collaboration Program requirements of a number of major service providers. They are demanding the capability to manage all network tech- • Launch of the Cloud Program: Cloud services represent a nologies in a common way, with a single set of interfaces. significant evolution in the use and provision of digital infor- See here for more details http://www.tmforum.org/Solution- mation services for business effectiveness. Yet as buyers Frameworks/1911/home.html start to look at using these services, there are a number of barriers to adoption. The primary objective of TM Forum’s • Growth of Cable Sector: The Cable Interest Group is a team Cloud Services initiative, launched during late 2009, is to of over 25 global Multi-Service Operators (MSOs) within the help the industry overcome these barriers and assist the Forum that coordinates requirements for the management growth of a vibrant commercial marketplace for cloud based of new and existing services for cable companies. The rele- services. The centerpiece of this initiative is an ecosystem vance of the Forum’s work, such as the Business Process of major buyers and sellers who will collaborate to define a Framework (eTOM), is increasingly being seen as central range of common approaches, processes, metrics and other to their systems architectures. This is demonstrated by the key service enablers. Find out more from here http://www. large body of excellent case studies that are being contrib- tmforum.org/ManagingCloudServices/8006/home.html uted by MSOs documenting their usage of TM Forum work and the benefits achieved. Find out more here http://www. • Development of Frameworx: As the communications and tmforum.org/InitiativesforCable/6081/home.html media industries converge in the digital world, the software approaches and techniques used by everyone are also • Growth of Defense Sector: The Forum has created a converging. During 2009 we continued to work on a large community of interest focused on enriching existing TM program to enhance and extend Frameworx to adopt main- Forum standards for the defense industry. This group has stream software architectures and concepts, and in particular grown rapidly and continues to attract new members glob- to address alignment with Service Oriented Architecture ally. Significant contributions have been made in this com- (SOA) principles. As an example, our concept of Contracts to munity, particularly in the area of security, and we expect to define the behavioral and information aspects of interfaces launch a major new project related to this item in early 2010. has been extended and aligned with the SOA concept of Find out more here www.tmforum.org/defense Business Services, and a base set of these Business Ser- vices has been identified. • Growth of the Benchmarking Program: Our Business In addition, in order to expand the number of people using Benchmarking Program continues to grow, with 150+ service Frameworx, we have added Getting Started packs to each providers now contributing their performance measurements component to make them easier to understand for people to our secure database, enabling service providers to accu- from sectors such as cable and defense, rather than the CSP rately compare themselves against their peer group, identify- community, and for people whose first language isn’t English. ing which business areas need most attention and which Find out more here http://www.tmforum.org/SolutionFrame- change could give the best return. Find out more here http:// works/1911/home.html www.tmforum.org/BusinessBenchmarking/4695/home.html • Expansion of the Frameworx Interface Program: The • Growth of Revenue Management Program: During 2009 Interface Program has been working to unify the various this group produced an updated version of the Revenue interface programs under a single umbrella with a common Assurance Guidebook, as well as a set of business bench- roadmap and, in particular, to automate interface develop- marks that were used by a large number of service provid- ment through the use of standardized tools. One of the criti- ers and which led to the production of one of our most www.tmforum.org / Perspectives / 95
    • Annual Report successful Insights Business Intelligence Reports, Rev- TM Forum conferences enue Assurance: The Hidden Opportunity. This group also In keeping with the growing importance of delivering services produced an updated charging model for incorporation into faster and at lower cost, Management World 2009 in Nice the Business Process Framework (eTOM). It runs a vibrant saw a significant rise in the level of seniority of attendees. The online community and produces a focused monthly news- venue for this event was considered in detail, but following as- letter that speaks to the issues of this community. Find out surances from the management of the Nice Acropolis Center of more here http://www.tmforum.org/revenuemanagement a large scale refurbishment, the 2010 event will return to Nice with an exciting new event layout. • Service Delivery Framework and IPsphere: The Service Management World Americas saw delegate attendance Delivery Framework (SDF) has defined the essential man- increase slightly in a year when many other conferences experi- agement capabilities and reference architecture that will be enced a downturn. The Orlando conference also saw the intro- required to support a Service Delivery Platform. Since the duction of the highly successful Executive Program – attracting IPsphere Forum became part of TM Forum late in 2008, this a higher proportion of senior level executives from North and program has continued to deliver a business layer for rapid South American service providers. An increase in sponsors for service delivery including advanced support for IP services the Executive Appointment Service saw a considerable number using SOA principles. The IPsphere work defines mecha- of meetings being staged during the event. nisms to automate offers, purchase and provision service In early 2010, we continued building on previous success in components among multiple stakeholders. It adds real, prac- establishing the regional Management World series in Asia, tical references to our SDF work. A number of critical service Africa and Middle East, which all now contribute healthy returns to provider usage cases have been contributed to this commu- funding other TM Forum activities. The program of Regional Spot- nity, for the purposes of validating the reference architecture. light events has covered Sao Paulo, Buenos Aires, Cairo, Tokyo, Find out more here http://www.tmforum.org/ServiceDelivery- Beijing, Kuala Lumpur with Mexico City and Bangalore in Q4 Framework/4664/home.html 2009, and many more Spotlight events are planned for 2010-11. • Launch of the Developer Network: Widespread adoption TM Forum Research and Publications of TM Forum frameworks and standard interfaces across the TM Forum’s Research and Publications activities are focused communications industry helps to reduce the costs and risks on producing an exclusive range of strategic and informa- of managing complex information systems. TM Forum’s new tive reports and publications for member companies. Our Developer Network provides the technical documentation, research reports assist members with accessing and utiliz- knowledge and access to expertise to support and guide ing all of the work of the Forum. They help to facilitate their developers and IT professionals delivering rapid, high qual- transformation programs, as well as understand emerging ity solutions based on TM Forum Frameworks. In addition, topics in more detail. we have launched the Marketplace, a listing of products or In early 2009 we launched the Insights range of fact-based services provided by TM Forum members to assist in the business tools. This includes Insights Research Reports based implementation of our standards, providing a unique offering on multiple interviews with CSPs by leading analysts. Insights which is only available to our members. Find out more here Business Intelligence Reports are based on the results of our http://www.tmforum.org/DeveloperNetwork/7688/home.html benchmarking program. Quick Insights Reports are shorter and provide fast access to key information on the latest topics. In • Continuing outreach to other industry organizations: our Case Study Handbooks a diverse group of organizations We continue to engage with a large number of industry stan- demonstrate how they have implemented TM Forum standards. dards bodies and associations around our various programs, Topics covered by Insights reports this year include customer to ensure with they are well aligned with work being done experience management, cloud services, mobile advertising, elsewhere. Some of the organizations we are actively how to monetize new business models, app stores’ role in mo- engaged with include 3GPP, ITU-T, Alliance for Telecom- bile advertising, service delivery platforms, and how to achieve munications Industry Solutions, CableLabs, Distributed successful business and cultural transformation. Management Task Force, Open Mobile Alliance, Oasis, The The second range of publications in our portfolio is the Inside Institute of Electrical and Electronics Engineers, Entertain- series of e-newsletters which provide news and information on ment Technology Center, and Digital Entertainment Content a range of subjects relevant to our members and to the wider Ecosystem. The Forum routinely grants complimentary industry. We currently publish seven newsletters a month memberships to other organizations and universities, so which range from those that provide general information such that they can share openly in the Forum’s work. as our bi-monthly digest, Inside Track, to those targeting 96 / Perspectives / www.tmforum.org
    • Annual Report “One of the most exciting developments this year has been the teaming of TM Forum with Gravitas Global to bring a suite of executive level seminars to the market. We will expand this portfolio during the next year.” specific communities, such as Inside Best Practices and portfolio during the next year to provide executives and prac- Standards, Inside Revenue Management, and Inside Leadership. titioners with the support they need to successfully manage In March each year we publish this – our flagship yearbook, their transformation programs. Perspectives – which combines expert opinion and analysis on a variety of issues from the industry’s thought-leaders and Training – interesting facts: journalists, with supporting material from TM Forum subject matter experts. • We offer over 4,000 training days per year in English, Also in 2009 we launched TM Forum Knowledge, an ‘intel- Spanish, French, Russian and Portuguese, allowing us to ligent search’ archive of TM Forum content: case studies; deliver training almost anywhere in the world; conference presentations and videos; webinars; white papers; • We have launched our first online training product which publications; community posts; technical documents. We will provides an introduction to Frameworx; continue to improve and evolve Knowledge over the next year. • Our portfolio has been extended to offer revenue assurance All of our publications and reports are available in digital training and certification. This is the only independent format via our web site (www.tmforum.org) and many are also revenue assurance training program in the world today, and available in print. is backed by the strength and expertise of TM Forum; • Our portfolio has been extended to include executive level TM Forum Training and Education training and workshops that cover areas such as exploiting Our training program is designed to help with a consistent new business models, enhancing customer experience, adoption of TM Forum’s Frameworx and other widely imple- driving innovation and best practices in service outsourcing. mented TM Forum best practices and standards. Delivered either as a public course or at a members’ own site, courses For details of upcoming courses and locations, and how to cover introductory, intermediate or advanced levels aimed at register, please see here http://www.tmforum.org/TrainingWe- specific implementation strategies. The courses are high in binars/1487/Home.html or for information on our webinars, practical work and case study content, and delivered by practis- please see http://www.tmforum.org/webinars ing experts. The training program is underpinned by a set of certification exams. Looking toward 2010 Despite the recession, there has been no reduction in the de- In this industry we have been talking about the need for radical mand for training this year as service providers look to Frame- transformation for a long time. The economic situation, market worx to address their transformation issues. In 2009 we again saturation and the huge growth of new and exciting digital delivered over 4,000 training days across the globe. services, means the strategic investment needed for CSPs While our Frameworx Overview course, coupled with the to transform themselves into lean and agile organizations is Business Process Implementer’s workshop have continue to becoming urgent. In the coming year TM Forum will focus on be the most popular, we have seen a rise in demand this year helping its members make that leap so that new services can for our new Revenue Assurance Certification program. This be launched faster and increase customer satisfaction while is a highly practical course that teaches practitioners how to helping providers maintain or improve profitability through more identify leaks in a systematic way. efficient operations. While our courses have always been available in multiple People tend to associate transformation with big bang languages and locations, we have now moved to deliver some change programs that often fail to deliver on their promise. introductory level training online. Currently available is the However, transformation is a much more generic term that Frameworx Introduction course. Our online portfolio will soon applies to a series of constant improvement activities that all be extended to cover this course in Spanish and French, as well service providers must continually pursue to achieve sustain- as a Revenue Assurance Overview course in three languages. able profitability. The important factor is that whether those One of the most exciting developments this year has been steps are large or small, they lead towards a much simpler, the teaming of TM Forum with Gravitas Global to bring a suite more integrated and automated service operations approach of executive level seminars to the market. We will expand this through a common roadmap. The Forum’s core job is to provide www.tmforum.org / Perspectives / 97
    • Annual Report that roadmap for all suppliers and implementers to follow. It’s improving customer loyalty through a better customer easy to lose the way on transformation programs and end up experience and helping enable new services like mobile even less efficient after following false trails. The thing to keep banking and mobile advertising. in mind is that the market won’t reward players who move As a not-for-profit organization, TM Forum is owned by its slowly on new services, or that have high prices but deliver members and every penny we receive through membership only average value, and/or offer poor customer experience. So fees or other services we offer is plowed back into transformation has to simultaneously focus on the business providing our members with standards, tools and services effectiveness triangle: cost reduction; revenue generation; and that can help them, and their customers, do more, for less. improving customer loyalty. We look forward to working with you! Over the coming year, TM Forum will be stepping up its support to members grappling with that three-sided challenge through greater focus on implementation. We will provide easier to use services to help service providers think through what to invest in and suppliers to know what standards and best practices will help them secure more business. We will also be concentrating more on new and exciting topics like the emergence of cloud services, managing new Keith Willetts - Martin Creaner - generation network technologies like Long Term Evolution, Chairman President Index of Advertisers Contact Us Aktavara 40 Headquarters European Office Alcatel-Lucent 84 240 Headquarters Plaza 47 Lower Brook Street Ascom Systems & Solutions 26 East Tower, 10th Floor Ipswich Compuware 44-45 Morristown, NJ 07960-6628 Suffolk ConceptWave Software 49 USA IP4 1AQ Connectiva Systems 18 Phone: +1 973-944-5100 United Kingdom EXFO 20-21 Fax: +1 973-944-5110 Phone: +44 207-748-6615 Huawei Technologies 12 LHS, Part of the Ericsson Group 11, 35 General Inquiries Microsoft IFC info@tmforum.org Nakina Systems 15 Press Inquiries Nexus Telecom 4 gdevlin@tmforum.org Nokia Siemens Networks 54-56 Advertising and Sponsorship Opportunities Orga Systems 7 mbradbury@tmforum.org Outbox 39 Member Services PETER-SERVICE 22 memberservices@tmforum.org Rogers Communications 70 Publications and Research Telcordia OBC rhenderson@tmforum.org Tieto 83 Education & Training Inquiries TM Forum Services 16 education@tmforum.org TM Forum Business Benchmarking 69 Career Inquiries VOIPFUTURE 91, IBC recruit@tmforum.org Watch4Net 31 WeDo technologies 8 98 / Perspectives / www.tmforum.org
    • ©2010 Telcordia Technologies, Inc. All rights reserved. Realize the potential of telecom. More than ever, telecom has the potential to transform businesses, economies, and lifestyles. But to realize that potential, we have to break new ground in performance, execution, and delivery. For decades, Telcordia has helped define the potential of the industry, enabling and furthering the evolution of modern communications. And we’re doing it again with our Next-Generation OSS solutions. Service providers around the world are using them to unlock the latent value of their businesses and improve their return on earlier investments. You can, too. Break through your performance barriers with Telcordia. And start realizing the potential of your business. Realize the potential of telecom www.telcordia.com/ngoss