TABLE OF CONTENTS   1.   Executive Summary   2. The Telecom environment is changing.   3.   Tomorrow’s Telecom Challenges ...
8.   ReferencesMediation            2Compaq Telecom
MEDIATION – MANY PATHS TO INCREASED REVENUEExecutive SummaryThe evolution from 2g to 3G means more data. Carriers will wan...
THE TELECOM ENVIRONMENT IS CHANGINGIt is early in the new millennium, but already the telecommunications industry finds it...
TOMORROW’S TELECOM CHALLENGESDramatic Increase in Data VolumeHow will you avoid information overload? Carriers want to mak...
The Need for SpeedHow fast can you actually use the customer information you have? Data has traditionally been batched and...
The word ‘mediation’ comes from the Latin and means ‘to be in the middle’, from the Latin word medius.Mediation systems si...
•   The new system must also offer real-time processing for value added services such as CRM, billing-on-           demand...
The SANs Storage Advantage for MediationSANs (Storage Area Networks) are the key to unrestricted data access and thus effi...
The Zero Latency Enterprise (ZLE) Advantage for MediationZLE provides a real-time architecture for collecting, synchronizi...
The Gartner Group                                                                                            coined term ‘...
For a description of the benefit to be derived from each function, see the sections following. They discuss how   each fun...
THE NETWORK MANAGEMENT DEPARTMENT WILL BENEFITA serious beneficiary of real time data, this entire department’s effectiven...
Planning & Analysis for Network CapacityThe mediation layer resolves technical incompatibility issues and makes it easier ...
THE MARKETING DEPARTMENT WILL BENEFITReduce ChurnCustomer churn is a common, complex and difficult to solve problem. Howev...
waiting for several weeks or months for response figures will simply cease to exist. The direct marketer mayperform almost...
THE SALES DEPARTMENT WILL BENEFITActively implementing the marketing vision, the sales department is often closest to the ...
Reduce Route DefectionRoute defection in corporate sales is the loss of a specific calling profile from a regular, establi...
Many suppliers of billing systems do not have the ability to link into ALL of the network interfaces in anywherenear real ...
FINANCIAL MANAGEMENT WILL BENEFITMeasure Customer ProfitabilityFinance is the hub around which all actions revolve. It is ...
On the surface, pre-paid mobile phones have solved some of these credit issues. The growth of pre-paid telephonyhas been p...
THE LEGAL AND REGULATORY FUNCTIONS WILL BENEFITHow much could you gain from getting a product approved and to market one m...
Regulatory ReportingOrganizations like the FCC also require fast responses to specific queries. Industry regulators can be...
THE COMPAQ HISTORY WITH TELECOMThe prime movers in the wireless market are carriers. These companies are building the vast...
COMPAQ – YOUR TOTAL SOLUTION PROVIDERSolution Part #1 - Compaq’s PartnersOur portfolio partners provide mediation solution...
continents, customers include large carriers processing over 7,850 million records/day down to start-upsprocessing only 10...
Verizon Communications (NYSE:VZ) is the largest provider of wireline and wireless communications in the UnitedStates, with...
better overall performance.    •   True scalability                                     •   Protects initial investment an...
"With its new                                                                                        StorageWorks         ...
“For us, the improvements in moving                                                                 to the Compaq StorageW...
Mediation        31Compaq Telecom
Solution Part #3 - Compaq Zero Latency Enterprise (ZLE) TechnologyCompaq’s ZLE is an integrated solution combining a zero ...
“The zero latency product offers a flexible and cost effective solution for pulling queries from various data sourceswith ...
Plan              Design          Implement                 Manage                 Support    Strategic                   ...
CUSTOMER SUCCESS STORIESCompaq Telecom products have served thousands of carrier customers worldwide. Hereare just a few o...
ITXC/INTEC Blaze New Trails over the InternetIn just four years of operation, ITXC has become the largest US-based dedicat...
ITXC started developing its own mediation solution using a Microsoft SQL Server, howeverthe realization quickly hit home t...
KPN Mobile/Comptel Stay Abreast of Billing NeedsIt’s no secret that telecommunications systems are evolving rapidly today....
Based on a Compaq AlphaServer™ six-node cluster, the system delivers the performance and availability neededto manage an a...
Compaq/Comptel Benchmark World-Class PerformanceCompaq and Comptel are long standing partners with over 40 joint customers...
Jari Annala, Executive Vice President, Comptel.Mediation                                         41Compaq Telecom
SUMMARYMediation                  42Compaq Telecom
Resources and Quotation Sources1.   “8 Lessons from the Telecom Mess / Bye-Bye Best Effort” Business Week, August 13, 2001...
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The Case For Compaq Mediation Technology Hp

  1. 1. TABLE OF CONTENTS 1. Executive Summary 2. The Telecom environment is changing. 3. Tomorrow’s Telecom Challenges 4. Mediation Meets Those Challenges 5. How Telecom Companies Will Benefit • Network Management Functions • Marketing Functions • Sales Functions • Customer Services Functions • Financial Management Functions • Legal and Regulatory Functions 6. Compaq – Your Total Solution Provider • Mediation Partners • Storage Area Networks • ZLE 7. Customer Success Stories • Verizon and TU-KA Cellular Tokyo • Intec and ITXC • KPN Mobile • Comptel Benchmarking StudyMediation 1Compaq Telecom
  2. 2. 8. ReferencesMediation 2Compaq Telecom
  3. 3. MEDIATION – MANY PATHS TO INCREASED REVENUEExecutive SummaryThe evolution from 2g to 3G means more data. Carriers will want to save, organize, and use that data for businessadvantage, and they can. However, on their way to capitalizing on the 3G opportunity, they will face challenges. • An increase in the volume of data so vast that it threatens to overwhelm them. • Demand for value-added services that virtually require new billing systems. • Portfolios differentiated only by the carrier’s SLAs and QoS standards. • An unquenchable need for speed. • The challenge of integrating data coming in from multiple vendors and platforms bound for constantly evolving downstream applications.Compaq’s mediation solutions enable our customers to generate revenues from their networks amounting to tensof billions of dollars every year, and we help them do it quickly, accurately, reliably, and cost-effectively. Ourbusiness success is based on providing our customers with operational support systems (OSS) that help makebusiness activities more profitable and more manageable.Mediation 3Compaq Telecom
  4. 4. THE TELECOM ENVIRONMENT IS CHANGINGIt is early in the new millennium, but already the telecommunications industry finds itself confronted by a seachange. Voice and IP data are converging, and with that convergence comes a more complicated and demandingtelecom environment. Until recently that environment was safely 2G, meaning that it focused largely ontransporting voice traffic over existing wired and wireless networks. Back office systems needed only to recorddata and bill for voice events. However, 2.5G and 3G are coming and with them the mandate to transport value-added content over those same networks. Consumers, after all, are going mobile. From CDMA to GPRS systems,they are already beginning to download all kinds of information onto their mobile appliances – weather and trafficreports, email, driving directions, and more. From PSTN products via SMS to mobile commerce, IP services areincreasing, and the data is flowing.Obviously, 3G brings with it a mountain of data. Some reports indicate as much as ten times the amount of datacurrently in the system. As a carrier, you will want to save, organize, and ultimately use that data to createbusiness advantage, and there are many business advantages to be had. The wireless IP billing market alone isexpected to leap from $94.6 million in 2001 to $855.7 million in 2005. However, between where now and then liesome challenges.Sidebar: GPRS (General Packet Radio Services) is the enabling technology that bridges between the current GSM–based (Global System Mobile) mobile networks and the next generation UMTS–based (Universal MobileTelecommunications Service) mobile networks. With data transmission rates of 115 kbps, GPRS is optimized for‘bursty’ datacom services such as mobile Internet access, multimedia, and instant messaging.Mediation 4Compaq Telecom
  5. 5. TOMORROW’S TELECOM CHALLENGESDramatic Increase in Data VolumeHow will you avoid information overload? Carriers want to make sense out of the information they have – andsoon they will have much more of it. In fact, carriers may have an information overload and maintenance problem.Increasing use of mobile technology has already increased the volume of CDRs. The launch of new 3G services withits IP component will multiply the volume of EDRs. And it isn’t just the volume. Data will arrive from more andvaried sources. Ultimately, carriers must decide what gets stored and for how long. After all, they are responsiblefor making sure that they can handle their business. Clearly, they will need new, more flexible, ways to capture,store and transport data.Usage Based Billing for Value Added ServicesHow will you use the new data to develop revenue? How will carriers charge for a value-add service? What is itworth to check on the weather or download a Webpage? These are billable events, but they will be billed verydifferently from the standard voice call. Billing forcontent requires a transition from flat rate to usage-based billing. In order to make that transition, you must beable to see individual account records at a higher level of granularity.Even with flat-rate billing, carriers still need some of the ‘who, what, when, where and why’ information that is inthe transaction record to understand how customers are doing business. To provide true CRM (CustomerRelationship Management), they will need to see into the calling pattern, history and habits. Only then can theydetermine service levels, pricing strategies and solutions.Service Level Agreements/Quality of ServiceHow will you meet customer’s standards for excellence? Service levels and service at a specified price will be amajor concern of the end-user. If specific service levels are not met, carriers will be forced to issue QoS (Quality ofService) credits/discounts, based on SLA’s (Service Level Agreements). Resolving the inevitable disputes will requireaccess to granular detail data, such as that provided by EDRs.Mediation 5Compaq Telecom
  6. 6. The Need for SpeedHow fast can you actually use the customer information you have? Data has traditionally been batched andprocessed within a 30-day window. For carriers, that delay between a customer phone call and billing for that callis fertile ground for fraud. However, if a company operates in real time, the fraud window narrows. Further,customer service agents need immediate access to customer information to solve problems, address complaints assoon as they happen and make adjustments. And what about cash flow? As we have said, the payment channelcan be 60 days long, resulting in cash flow problems.Carriers will want to offer their customers the ability to use real-time data with their customers also. Retailers(especially electronic retailers) need to integrate all customer touch points in real time, including instore, web andcatalog tracking to keep their inventory up-to-date. Carriers also need real-time insight into the operational andtraffic statistics of a customer’s network. By so doing, they can dynamically allocate bandwidth and assign QoS on aper-application basisIntegration Issues with Legacy SystemsHow do you pull al this together for seamless service? The merging of new applications and system elements withexisting network architecture will create integration issues on several fronts. • Data records entering tomorrow’s network from many trading partners will arrive in many different formats. As yet, there is no standard for EDRs. Therefore, the trick is to capture that information from the network or network element in a format that’s usable. • Advances in Internet technology will create other integration issues as IPv6 (Internet Version 6) is launched, especially while standards are evolving. • Carriers will need to integrate legacy billing solutions and evolving networks.What tools and services can carriers use to save them from information overload, provide the level of detailneeded for billing and customer service and provide the needed integration? MEDIATION MEETS THE CHALLENGEMediation 6Compaq Telecom
  7. 7. The word ‘mediation’ comes from the Latin and means ‘to be in the middle’, from the Latin word medius.Mediation systems sit between the network infrastructure and downstream applications. Traditionally, their rolehas been to handle one type of data, entering the system from one source and bound for one downstream path toa billing application. Increasingly, however, they must capture information from several network elements(switches, the Internet, etc.) and then store, review, sort, abstract and send it on to several downstreamapplications. The more reliable this information is, the better carriers can utilize it to boost competitiveness andrevenue assurance.Carriers need a mechanism by which they can integrate all their interactions with diverse sources seamlessly. Thetypical way of meeting this business need is by customer developing a centralized and redundant repository of allthe available resources. However, this is a manual, rigid approach that is both expensive and results in loss ofscalability as the number of services grows over time. A better solution is mediation technology.Independent mediation has been in use since the early 1980s. But the 3G challenge requires a new generation ofdata mediation systems with new capability to meet new challenges. Today’s mediation systems lack thefunctionality to handle even today’s modest requirements; they certainly can’t handle tomorrow’s.Next Generation Mediation is DifferentSidebar: Best in class mediation products will include not only next generation mediation functionality, but alsoSAN storage with ZLE technology for speed. [Editors note to printer: insert this sidebar here.]Carriers need a new generation of mediation systems. Legacy systems and next generation systems differ in threesignificant ways: • Current systems are based on frame relay, switched or cable telephone networks. They forward data from CDRs (call detail records) to, mostly, billing applications. Next generation systems also process packet-based IP data or EDRs (event data records). • Current mediation systems were designed using a 1-to-1 pipeline configuration. That is, there was one data source (usually a cable or switch) leading to one back-office application (usually billing). Next generation systems must collate information from multiple systems (routers, web servers, authentication servers) and vendors, generate EDRs for every session and export all relevant information to multiple downstream applications (billing, CRM) for value added services such as CRM, QoS, SLAs.Mediation 7Compaq Telecom
  8. 8. • The new system must also offer real-time processing for value added services such as CRM, billing-on- demand and fraud protection.Mediation 8Compaq Telecom
  9. 9. The SANs Storage Advantage for MediationSANs (Storage Area Networks) are the key to unrestricted data access and thus efficient use of data. Conventionaldata storage can scatter business information over several servers or attached external disks. That makes it hard toaccess. On the other hand, SANs offer unrestricted data access as they create one data pool and simultaneouslyshare that data pool across all servers and systems. Add ‘any-to-any’ connectivity between servers and storage,and companies can now organize and manage data as an independent resource.SANs are faster and easier to scale than conventional storage, with no downtime. Given the uncertainty of 3G,carriers will surely need to adjust mediation formats and rules as things evolve. Furthermore, imagine the suddenpopularity of a new service and the influx of new customers. With traditional storage, scaling to handle this happyevent could create a performance bottleneck. A carrier could decide to hold back future new offerings because themediation system can’t handle it. That could mean losing competitive advantage. But with a modular design SAN,part of the initial design choice is the planning for new configurations. So, an increase in business won’t disrupt thebusiness.Businesses are always looking to lower costs and achieve better service levels at the same time. In the past, thesetwo goals often conflicted. However, these advancements in storage technology, along with dramatic declines instorage pricing now make this a win-win reality.The value that SANs hold for mediation systems cannot be overstated. What is a SAN? Traditional Server Storage Storage Area Network (SAN) • Internal drives or directly attached external disks • Centralized data pool shared across any to store data number of servers and systems • Business critical information is often scattered • Business critical information stored in one over a large number of servers common pool for easy management and higher availability • Limits an organization’s flexibility to access their • Provides access across entire operation via information ‘any-to-any” connectivity between servers and storageMediation 9Compaq Telecom
  10. 10. The Zero Latency Enterprise (ZLE) Advantage for MediationZLE provides a real-time architecture for collecting, synchronizing, routing and caching information drawn from afull range of telecommunications operational systems. Consolidated information is instantly delivered to where itcan do the most good. Consequently, every transaction is instantly visible across the enterprise and can be actedon immediately. Customer service agents, for example, have a single, unified view of the customer that enablesthem to enhance the customer experience with assistance and attractive offers that are highly personalized. Ashyper-competitive markets such as telecommunications increase the speed of business, they need to alsoaccelerate the internal flow of information. That makes zero latency a business imperative.By integrating all data and applications throughout the enterprise, the ZLE framework offers several compellingadvantages for telecommunications companies. • Ensures that all applications are using the same current data, leading to improved customer service • Puts data to work instantly in a real-time environment from which valuable business information can be derived with sub-second latency for rapid response and operational agility. • Enables telcos to move quickly to deploy new high-volume, real-time enabled applications that are insulated (for scalability and reliability) from existing applications by the central architecture.What is a zero latency enterprise?A zero latency enterprise describes an organization that deploys data throughout the organization almostimmediately after it is created in any area of the enterprise. In a zero latency enterprise environment, formerlycostly and time-consuming manual processes are executed by IT systems in near real-time. Data processing istransformed from an operational necessity into a strategic asset that yields faster response time, better service,and greater business intelligence.Mediation 10Compaq Telecom
  11. 11. The Gartner Group coined term ‘zle’, meaning ‘zero latency enterprise’‘ or no delay’. Carriers need “no delay” between creating data and being able to use it. Compaq has adopted ZLE as the brand name for its zero latency products.ZLE is now considered such a strategic imperative that eleven of the world’s largest service providers recentlyparticipated in a study conducted by the Gartner Group. The results? The companies studied said that a real-timeCRM program would significantly improve the customer experience and reduce customer turnover from 5-15%.For these companies, that improvement alone would yield an increase in profitability of up to 15%. By introducinga zle-based billing on demand solution, companies believe they can effectively increase revenue by 2-3%/year.With instant access to credit and account information, they can reduce fraud by more than 50%. By linkingseparate systems into a single system, companies can reduce information processing costs by 5% to 35%. TELECOM COMPANIES WILL BENEFIT Telecom companies will reap the benefits of mediation solutions across the board as new systems serve all major organizational functions, both front and back-office. For revenues to rise, billing must be done right. But IP data will contain more than billing information. Even with flat-rate billing only, carriers still need some of the whos, whats, whens, wheres, and whys information that is in the transaction record to continue to understand how customers are doing business. Next Generation mediation systems will need to transform raw data collected from the network layers into a service-level profile of each end-user in order to determine service levels, pricing strategies and solutions. Next generation mediation systems also have additional useful functionality for a number of other front and back-end systems such as OSS.Mediation 11Compaq Telecom
  12. 12. For a description of the benefit to be derived from each function, see the sections following. They discuss how each function will benefit - network management, marketing, sales, customer services, finance, legal and regulatory.Mediation 12Compaq Telecom
  13. 13. THE NETWORK MANAGEMENT DEPARTMENT WILL BENEFITA serious beneficiary of real time data, this entire department’s effectiveness and ability to adapt to specificconditions could evolve from a reactive approach to a proactive approach on faults, service restoration and generalnetwork monitoring. From the network perspective, mediation works from two directions – provisioningsubscribers and activating services for them and then collecting usage information from the network.Service Assurance/Quality of ServiceSLAs are guarantees of service quality and related support. They usually have financial penalty clauses that keepthe carrier focused on delivering the agreed contractual service, within the prescribed time constraints. To comply,carriers must rely on accurately assessing the impact of network events.Large-scale failures of networks can have a dramatic effect on certain time-sensitive and telephony-reliantbusinesses such as commodity trading or real-time market data companies. Using real-time data correctly ensuresaccurate load balancing between the network access points and reduction of inbound/outbound line blocking.Using historic data, carriers can now pro-actively plan for capacity on certain switches before it becomes an issuefor customers. By determining requirements, carriers can anticipate the effect of large congregations of customers“blitzing” a mobile network and adjust the network to suit the traffic profiles as they happen. Picture the following scenario. A user initiates a video conference call under a QoS agreement. Dissatisfied with a noisy connection, they terminate the call and contact customer service. In order to address the problem, customer service must be able to verify the poor connection. Using data supplied in real-time by the mediation system, the CSR finds the detail she needs to compensate this customer. Meanwhile, the mediation system continues to reformat the same data for later export to a billing system or trading partner.Mediation 13Compaq Telecom
  14. 14. Planning & Analysis for Network CapacityThe mediation layer resolves technical incompatibility issues and makes it easier for carriers to commerciallylaunch new services by providing one management interface in a multi-vendor network, instant serviceprovisioning, and modularity that ensures constant operability, even during upgrades. Mediation centralizes allnetwork data onto a single platform and makes it available to users and other applications across the entire Carrierenterprise. The data can be used to identify bottlenecks and over-utilization of the network.“The winners in the world of mobile-Internet will be those who can manage new networks, not just build them.”ICDMediation 14Compaq Telecom
  15. 15. THE MARKETING DEPARTMENT WILL BENEFITReduce ChurnCustomer churn is a common, complex and difficult to solve problem. However, marketing departments can usenext generation mediation systems to reduce churn in three important ways: • Provide customer service agents access to network quality information. • Identify behavior that generally leads to defections. • Rapidly identify customers who are about to defect and initiate win-back programs within 48 hours.Historical data on lost customers often holds the key to predicting churn. It is possible to apply propensity modelsthat establish patterns and relationships in customer behavior that clearly predict customer churn. For instance,specific events like changes in call patterns and decreases in volume are often good indicators of potential churn.Spotting this change in behavior before the customer contracts with another supplier is vital, as it is then possibleto take proactive, preventative action. To acquire a new customer costs 7-10 times more than retaining an existing one. YankeeFine Tune Marketing Campaigns In-flightIn-flight campaign tuning means monitoring changes in behavior during a campaign so that you can refine themarketing campaign while it is still running. The marketer of the near future will monitor campaign response as itcomes into the call center or the Website and refine the messages and target audience as required. The days ofMediation 15Compaq Telecom
  16. 16. waiting for several weeks or months for response figures will simply cease to exist. The direct marketer mayperform almost like a Wall Street trader – getting real time data from terminals, applying propensity-modelingtechniques to the data and acting immediately on the output.Launch and Monitor ProductsContinuously reviewing and monitoring product usage and sales performance allows product managers to enhanceor withdraw products at the optimum time and provides the ability to analyze the impact of bundling and pricingchanges.Mediation 16Compaq Telecom
  17. 17. THE SALES DEPARTMENT WILL BENEFITActively implementing the marketing vision, the sales department is often closest to the customer. By capturingcustomer information and combining it with real time customer behavior, mediation provides a new level ofbusiness intelligence.Ensure That All Revenue is Counted– never lose an EDRRevenue assurance in this context means 100% accreditation for every dollar that customers spend. It is essentialthat sales directors ensure that all sales are accounted for. Mismanagement of sales-related information is viewedas a key failing in this role.Most problems are caused by disparate switching and information platforms, volumes of data, and the inherentdelays caused by poor integration. Different switch platforms create an issue in standardizing data and inevitablysome information is lost in the translation. Integrated mediation solves the disparate platform and volume issuesimmediately. It also soles the problem of poor integration by ensuring that the links to downstream applicationsare robust and complete.Cross-sell and Up-sellData analysis and profiling allows sales departments to proactively move customers into services that best matchtheir usage profiles. Image this example: A customer tries repeatedly to call home on a mobile telephone. Thenumber is busy. Three busy calls to the same number triggers a campaign to sell a ring back service. What if we could ensure that our existing customers bought more because usage data was used to trigger up-sell and cross-sell contacts? ?Mediation 17Compaq Telecom
  18. 18. Reduce Route DefectionRoute defection in corporate sales is the loss of a specific calling profile from a regular, established behavioralpattern. Identifying that a customer is about to defect can be relatively simple, given the right type of data. With areal time feed of call data, when an unexpected fall in traffic is determined the likelihood of defection is high andaction must be taken to prevent loss of other routes. Mediation systems can detect the telltale sign of serviceusage drop before it is too late. US organizations lose half their customers every five years and only one in twelve customers return. THE CUSTOMER SERVICES DEPARTMENT WILL BENEFIT The support of existing customers provides extremely useful information that A customer typically complements direct sales activities. Understanding the customer’s issues as interacts with a company NINE (9) well as the customer himself enables agents to counter many complaints on times for every ONE (1) completed the spot. What was initially a difficult, defensive dialogue could potentially be transaction. turned into a positive cross-selling/up-selling opportunity, where the customer believes that they are receiving an enhanced level of service. 3.1Bill in Real-time or on DemandThis application area is a ‘win-win’ for carrier and customer alike. Both parties are able to bypass the conventionalbilling cycle by using real time records online. The carrier gets settlement more promptly, thus aiding cash flow,and the customer is able to manage the time of the payment to their convenience. For example, the customer mayrequest that a limit be placed on the level of spend within any given time period. The carrier can measure callsagainst this threshold in real-time and alert the customer when they are approaching the threshold.Mediation 18Compaq Telecom
  19. 19. Many suppliers of billing systems do not have the ability to link into ALL of the network interfaces in anywherenear real time. Therefore the statement of account that the customer views is potentially out of date orincomplete. Mediation systems using rating and zero latency technology have the flexibility and real-timecapability to single source the entire bill-related data. Threshold management is automated. The result is improvedcash flow from the impact of more prompt payments.Handle Customer ComplaintsThe ability to provide a real time, single view of the customer is essential to problem solving in the face ofcustomer complaints. For example, consider a user who has subscribed to a high level of QoS but who cannotreally get a connection at the subscribed QoS. Dissatisfied with the network connection, he calls the CSR. The CSRlooks at the EDR generated for the session and verifies the QoS that the subscriber actually used. If it is inferior, thesubscriber gets a discount.A large Carrier uses this approach to route specific calls through to the same agent that a customer has spoken toon previous occasions. This continuity ensures a more effective resolution to any outstanding issues and positionsthe Carrier well for future dialogues.Mediation 19Compaq Telecom
  20. 20. FINANCIAL MANAGEMENT WILL BENEFITMeasure Customer ProfitabilityFinance is the hub around which all actions revolve. It is becoming clear that not all minutes are of equal value.Thus, you must understand which minutes contribute to profitability. Even large Carrier’s have limited resources,and investment opportunities outstrip your ability to deliver them.Detect FraudFraud is a big problem – about US$10 Billion. The problem is rising at 10% - 15% annually. This equates to largefixed line carriers losing 3% - 7% of their total revenue to fraud. Cellular carriers often experience 5% - 15% loss.Now, with a zero-latency solution, you can detect fraud instantly via instant access to credit and accountinformation. Add to that the ability to set parameters in real time and you may be able to reduce fraud by morethan 50%.Mediation with ZLE can detect certain types of fraud in real-time e.g. cloning, geography and threshold violationsor call collision/overlap. For example, call collision/overlap (the identification of two simultaneous calls fromdifferent locations) could be handled with an immediate suspension of service or diverting the call to a customerservices center. Geography and threshold violations could also be dealt with more effectively by adding an elementof automation to the process.Control Financial ExposureKeeping a tight control on credit limits can be challenging if your finance department does not have direct accessto real time data. Striking a balance between draconian and overly accommodating policies is difficult to achieve.Mediation provides an ideal real time, analytical environment for Credit and Risk Management. Each customer canbe monitored separately and treated according to specific, pre-agreed metrics.Mediation 20Compaq Telecom
  21. 21. On the surface, pre-paid mobile phones have solved some of these credit issues. The growth of pre-paid telephonyhas been phenomenal. The UK alone has in excess of 4 Million prepaying telephony customers who werepreviously unable to obtain credit or wanted to control their spending.Mediation 21Compaq Telecom
  22. 22. THE LEGAL AND REGULATORY FUNCTIONS WILL BENEFITHow much could you gain from getting a product approved and to market one month earlier than expected?Perhaps millions of dollars over a twelve-month period!Regulatory and governmental bodies throughout the world are increasingly involved in the shaping and monitoringof modern Carrier’s. Security agencies are actively seeking assistance with calling patterns relating to crime andfraud. This often requires real time information from a variety of sources in order to establish specific connectionsand potentially related activities. One large Carrier has such an infrastructure in place and recently used it to crack a drug ring by working closely with the local police force over a period of three months. The level of work involved was minimal. The extra requests for information were simply scheduled and automated accordingly. The drug ring in question generated approximately $50 million dollars per year in illegal revenue. This was terminated in one early morning swoop on several households. Mediation provided the bulk of the required information and intelligence.SecurityGovernment agencies and police forces are becoming increasingly demanding of the larger Carrier’s, regularlyrequesting live information on specific activities. Armed with this real time information, the agencies and securityforces are able to provide a speedy reaction to events as and when they actually happen rather than the followingday or week when it may simply be too late. Does your Carrier have the right technology to allow this type ofanalysis and alarm capability without interrupting day to day operations?Mediation 22Compaq Telecom
  23. 23. Regulatory ReportingOrganizations like the FCC also require fast responses to specific queries. Industry regulators can be very taxing ona large Carrier when considering the potential market impact of new tariffs/services and the potential impact.The ability to proactively drive the regulatory authorities ensures that the control of certain situations is in thehands of the Carrier and not the Carrier’s competition or the regulator. It puts the pressure back on thecompetition and drains their resources. How much overhead can be placed on the competition by ensuring thatthey are constantly reacting to price changes rather than generating their own ideas?Mediation 23Compaq Telecom
  24. 24. THE COMPAQ HISTORY WITH TELECOMThe prime movers in the wireless market are carriers. These companies are building the vast public networks thatwill serve us for years into the future. Increasingly, however, carriers are turning to computer companies to helpbuild these new networks. Why? Because computer companies have the necessary digital technology which isstandards-based and therefore flexible, high performing and low cost.It sometimes surprises people to learn that Compaq is not just a PC company. For 25 years it has provided the coretechnology that drives many of the major wireless services in the world.Over the years, our customers have included: • AT&T • Verizon • Sprint • British Telecom • France Telecom • Deutsche Telecom • China UnicomTo those customers, we have provided: • Roaming technology for wireless services to 70 million mobile customers • Fraud management solutions that protect 90 million users • Network management solutions for more than 120 phone companies around the world. • The solutions that power almost all the 800 numbers in the United States.Today, Compaq Telecom has much to offer the carrier with mediation needs: • Over 100 mediation customers worldwide. • An application portfolio including such leaders as Comptel, Intec and Verizon UMS. • A diverse operating systems portfolio including NSK, Tru64, Linux, and Windows NT • A turnkey solution including implementation, consulting, support and training • Systems pre-configured to the customers specificationsMediation 24Compaq Telecom
  25. 25. COMPAQ – YOUR TOTAL SOLUTION PROVIDERSolution Part #1 - Compaq’s PartnersOur portfolio partners provide mediation solutions operating on Compaq AlphaServers, NonStop Himalaya andProliant servers. These fine companies have the distinction of being Platinum Partners based on the strategicimportance of their relationship with Compaq.Comptel (HEX:CTL1V). is the global market leader in mediation solutions. Through their local offices and theextensive partner network they have established a truly global presence serving over 200 customers in 56countries worldwide, including Omnipoint/Vodaphone of Italy with 15 million subscribers. Headquartered inHelsinki, Finland, Comptel is listed on the Helsinki Exchange.Running on Compaq’s Tru64 operating system and the AlphaServer platform, Comptel’s Mediation DeviceSolutions (MDS) is a leading solution in the field of independent mediation devices. Utilizing an Oracle databasestructure, this solution is comprised of both billing and mediation functionality and service activation features ingreat demand among fixed and mobile network operators. For more information, visit www.comptel.com.Intec Telecom Systems (LSE:ITL) provides fundamental revenue assurance technologies such as Inter-mediatEconvergent mediation and InterconnecT inter-carrier billing, to the telecommunications industry. Clients includethe worlds biggest carriers, such France Telecom, and Verizon (for whom they handle 600 million CDRs/day). Theirglobal reach serves 200 customers in over 30 countries. INTEC is a FTSE 250 company. For more information, visitwww.intec-telecom-systems.com.Intec’s Inter-mediatE modular solution is a high-volume, convergent solution that collects, processes anddistributes data from circuit- and packet-based networks. it utilizes a proprietary database structure reportingthrough oracle and supports English, Spanish and French languages. Installed at over 85 customer sites across 5Mediation 25Compaq Telecom
  26. 26. continents, customers include large carriers processing over 7,850 million records/day down to start-upsprocessing only 10,000 records/day. Packaged with the Compaq AlphaServer and Tru64 operating system, itaccepts any record format from any network element and interfaces with any billing solution. For moreinformation on the Compaq AlphaServer, visit our online showroom at http://www.compaq.com/alphaserver/Mediation 26Compaq Telecom
  27. 27. Verizon Communications (NYSE:VZ) is the largest provider of wireline and wireless communications in the UnitedStates, with 132.1 million access line equivalents and 29.4 million wireless customers. A Fortune 10 company withmore than $67 billion in annual revenues and 240,000 employees, Verizons global reach covers more than 40countries incuding Japan where they process over 300 million CDRs/day for KDDI-Japan.The Usage Management System (UMS) from Verizon Data Services is a high-volume, high-velocity system thatautomates data collection from the most sophisticated networks. At the heart of UMS are three robust modules: aflexible mediation system, a user-friendly, rules-based development tool, and a complete pre-billing solution. TheUMS operates on Compaq’s Himalaya NonStop platform and integrates with any billing solution. For moreinformation on the Nonstop Himalaya Servers visit our online showroom at http://www.compaq.com/showroom.For more information on Verizon, visit them at www.verizon.com. Compaq Mediation Business Advantages Feature Benefit • Fault Tolerance • Permanent availability of business critical information • Common mediation across switching • Lower overall cost and single version of the platform truth • Handles convergent networks – wireline, • Lower overall cost and single pint of reference wireless, and ATM • No pre-set billing cycles • Cash flow, margins and customer service can be improved • Real-time output • Customer and network intelligence is available for those that need it, when they need it. • Mixed workload • Lower overall cost of implementation/ongoing management andMediation 27Compaq Telecom
  28. 28. better overall performance. • True scalability • Protects initial investment and levels out capital expenditure spikes.Solution Part #2 - Compaq SAN StorageCompaq San storage has been hailed repeatedly as the industry leader in SAN storage solutions. Our specialadvantages include: • Unlimited capacity and scalable performance through modular RAID Storage units. • Supports up to 100 km in a single long distance segment for a fibre-channel SAN • Support for Internet Protocol (IP) by seamlessly integrating IP connectivity with SAN fiber channel. • Do-it-yourself configuration tools and templates that save setup costs and time. • Downtime-free expansion allowing businesses to add servers or reconfigure applications without interrupting normal daily operations.Compaq Enterprise Storage is the number one global storage solutions supplier. According to studies published inAugust 2001 by Gartner Dataquest and IDC, customers continue to turn to Compaq in large numbers for the valueand reliability of their enterprise storage products. Compaq is one of only two storage vendors in the LeadershipQuadrant of Gartners highly regarded SAN Integrator Magic Quadrant analysis.Mediation 28Compaq Telecom
  29. 29. "With its new StorageWorks ”Enterprise” products, Compaq remains the leader in the modular system storage market, and is the largest storage vendor and the largest SAN vendor based on capacity shipments". Gartner, Jan 2002Source: The Magic Quadrant is copyrighted June 2001 by Gartner, Inc. and is reused with permission. Gartner’spermission to print its Magic Quadrant should not be deemed to be an endorsement of any company or productdepicted in the quadrant. The Magic Quadrant is Gartner’s opinion and is an analytical representation of a marketplaceat and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. Thepositioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Well- informedvendor selection decisions should rely on more than a Magic Quadrant. Gartner Research is intended to be one ofmany information sources and the reader should not rely solely on the Magic Quadrant for decision-making. Gartnerexpressly disclaims all warranties, express or implied of fitness of this research for a particular purpose Mediation 29 Compaq Telecom
  30. 30. “For us, the improvements in moving to the Compaq StorageWorks SAN were so obvious that we never looked back; we never gave it a second thought. It was evident from the beginning that we had made the right choice.” Chip Register, senior vice president and CIO, Resource Bancshares Mortgage Group, Inc.In the above diagram of a SAN Configuration, the data stored on the Compaq StorageWorks RAID arrays can bepresented to multiple servers and heterogeneous platforms. As more servers and switches are added to a SANfabric, the resulting configuration, known as a topology, can be optimized for a large variety of needs. This supportmay include future migration, data locality, accessibility, disaster tolerance, performance workloads, geographiclayout and scalability.Compaq’s leadership in SANs is demonstrated in many ways. With Compaq, new technology serves as a businesssolution, and not just a technical advance. For example, Compaq’s storage arrays use a cutting edge modulardesign that allows for rapid expansion with NO downtime. Even during periods of exceptional growth, normalbusiness functions are never compromised.For more information on Compaq Telecom storage products and services, visit our website athttp://www.compaq.com/services/storage/st_raid.html.For more information on the implementation of storage solutions, see us at this address:http://www.compaq.com/services/storage/st_implementation.htmlMediation 30Compaq Telecom
  31. 31. Mediation 31Compaq Telecom
  32. 32. Solution Part #3 - Compaq Zero Latency Enterprise (ZLE) TechnologyCompaq’s ZLE is an integrated solution combining a zero latency engine – encompassing all of Compaq’s coreserver platforms – with the software components needed to provide instant access to a single, integratedoperational data store.Compaq ZLE technology removes all the barriers to rapid deployment of your business-critical information. Amongthe obstacles are ‘application islands’ – applications that are poorly integrated into the enterprise or sometimesnot integrated at all. These can include packaged, custom or legacy applications or a combination. Because theyoften require costly and time-consuming manual processes before they can interface with the rest of theorganization, they are left isolated, creating bottlenecks that compromise response time and the value of the data.After all, data that you can’t reach when you need it isn’t worth much.Compaq’s ZLE technology removes that barrier by combining ODS (operational data store) with world-class EAIsoftware to create an engine (the Compaq Interaction Manager) that both pushes and pulls data from a centraldatabase to create a unique framework for application integration, e-commerce and CRM.Compaq’s ZLE solutions for telecommunications are field proven to work in the most demanding businessenvironments. Compaq teamed with major telecommunications companies to create a realistic scenario so largethat it would tax any other system beyond its capacity. But the Compaq solution was able to add 1.2 billion CDRs toa NonStop Himalaya server database every day – and keep them online for 90 days! The scale is unprecedented.The engine itself integrates all of Compaq’s core server platforms, including a 128-processor NonStop Himalayaserver, Tru64Unix GS140 AlphaServers, and Windows NT-based ProLiant 7000 OLAP servers, and a cluster ofProLiant 1850 data mining servers.This scenario demonstrates the Compaq advantage: • Unlimited scalability to handle absolutely any size workload. • The NonStop SQL software is the only dtabase that can support concurrent transaction processing and data mining. • ZLE solutions are individually engineered using a life-cycle methodology. • ZLE solutions are built to operate in an open-standards environment, allowing carriers to deploy them on a mix of systemsMediation 32Compaq Telecom
  33. 33. “The zero latency product offers a flexible and cost effective solution for pulling queries from various data sourceswith minimal investments to reconfigure the environment.”Evelyn Follit, senior vice president and CIO, Tandy Corporation/Radio ShackFor more information on our ZLE solution, see us at this address on the Internet:http://telecom.compaq.com/solutions.Solution Part #4 - Compaq Award-winning Integration ServicesToday, carriers need a total solution provider who can deliver both services and products integrated with allapplications and platforms. In the past, the carrier knew that they would have to integrate the solution into theirown network system themselves. Today competition in the telecom sector is so fierce that they must concentrateon retaining current customers and searching for new ones. Thus, they need a turnkey solution.To meet specific requirements, carriers may choose from a range of services including: • Data Integration • Data Mining • User Access Integration • Enterprise Application Integration • Hardware and Software Integration • Performance Assurance for your entire solution • Ongoing Project Management • Disaster Tolerance planning • Security Management.For a ZLE solution, Compaq Global Services can help you reduce risk, time, and costs by employing our expertiseand the rigorous methodologies of our ZLE Implementation service:Mediation 33Compaq Telecom
  34. 34. Plan Design Implement Manage Support Strategic Implementation Business Exploration Architecture Blueprint Integrated Business consulting and Proof of Concept Deployment IT Operations Critical BPR with Architecture Pilot Performance Management Support Scan Assurance 24 x 7Business goals IT and business Rapid, Stable availabilityand direction strategic Proven low-risk operation alignment architecture implementation Figure # : The life cycle of Compaq Global Services for ZLE spans planning, design, implementation, management and support. Compaq Global Services continues to be recognized for excellence by customers, partners, industry organizations, and publications worldwide. Our awards and honors reflect our dedication, technical expertise, professionalism, and commitment to customer satisfaction. For more information, see us at http://www.compaq.com/services/awards/index.html. Mediation 34 Compaq Telecom
  35. 35. CUSTOMER SUCCESS STORIESCompaq Telecom products have served thousands of carrier customers worldwide. Hereare just a few of their stories.TU-KA Cellular Tokyo/Verizon Rise to the ChallengeVerizon customer TU-KA Cellular Tokyo offers service to Japan’s Pacific Belt Zone. They have watched theircustomer base skyrocket to 1,150 million customers, necessitating an infrastructure that would support theincreased call volumes and record call histories, tally charges and adjust rate plans. The existing system processedboth rating and billing operations on a single mainframe system that hampered TU-KA’s attempt to getcompetitive rates plans into the market swiftly and flexibly. They needed a system with the ability to processmassive amounts of accurate tasks online at almost real time.After a detailed search of foreign and domestic computer companies, TU-KA Cellular Tokyo elected to support theirnew rating system – TUBASA – with UMS software from Verizon operating on the Compaq NonStop Himalayaplatform. This solution has greatly increased the efficiency of the billing operations by offloading mediation andrating from the mainframe billing system. The CDR is now sent from the switch system directly to UMS mediationwhich checks enormous volumes of data in order to calculate each customer’s charge based on day of the week,time of day, customer rates plan and other variables. While the new capability is great, the best news is that themediation system sends the information onto the mainframe billing system within 30 minutes of receipt of the calldata.For more information on TU-KA, see their website at http://www.kddi.com/english.Mediation 35Compaq Telecom
  36. 36. ITXC/INTEC Blaze New Trails over the InternetIn just four years of operation, ITXC has become the largest US-based dedicated wholesale carrier of internationalphone calls. The company ranks among the top 20 carriers of any kind in the world based on minutes ofinternational calling. Approximately two out of every 100 international calls worldwide are carried by ITXC onbehalf of the retail carriers whose customers make these calls.Proprietary ITXC technology has made it possible to build a carrier-grade call completion network, ITXC.net, with849 points of presence in 406 cities in 146 countries.For a company to become the largest US-based dedicated wholesaler of international phone calls in just four years,it has to be ready to pounce on opportunities. In March of 1998 ITXC set out to build a carrier-grade call-completion network using the Internet as a backbone and bypass the traditional route of leasing or buyingnetworks in worldwide markets, paying large monthly fees, and taking months to set up its operations. But thecompany realized that, in order to ensure the highest levels of service, it needed a way to gather and leverage asmuch real-time network data as possible for a variety of downstream systems. “We were a start-up business not so long ago and the way you get ahead is by jumping on opportunities. And the Intec and Compaq platform has allowed us to do that. We owe a lot of that to the power of mediation.” Lee Cascio, vice president of development, network engineering and development, ITXCMediation 36Compaq Telecom
  37. 37. ITXC started developing its own mediation solution using a Microsoft SQL Server, howeverthe realization quickly hit home that a fledgling technology would require regular patches, fixes, and updates.couldn’t afford to wait, and decided to evaluate existing mediation solutions. Intec’s Inter-mediatE solutionfeatured multiple approaches to every potential problem, instilling a comfort factor that the system would be ableto handle any situation ITXC might throw at it.Today, running on Compaq’s AlphaServer™ ES40 platform, Inter-mediatE, Intec’s module-based, convergentcollection and mediation platform, gathers raw network usage data and transforms it into rich, billable businessinformation in formats that can be distributed to ITXC’s operational and business consuming applications.“They’re looking at reports, statistics, alarms—everything is hot off the press,” related Lee Cascio, vice president ofdevelopment, network engineering and development at ITXC. “The information is 15 minutes old at the most whenthey receive it on their screens, and it’s all flowing out of the mediation system. They get more than call detailrecords (CDRs)—they also get SNMP (simple network management protocol) data, and log files.”Using the Internet allows the Company to have a unique cost structure, no net debt and extremely fast speed tomarket in any new location. The Intec and Compaq solution has enabled ITXC to do just that. For more informationon ITXC, see their website at http://www.itxc.com.Mediation 37Compaq Telecom
  38. 38. KPN Mobile/Comptel Stay Abreast of Billing NeedsIt’s no secret that telecommunications systems are evolving rapidly today. But some billing systems still haven’tgotten the word. KPN Mobile, a Netherlands-based provider of wireless services in Europe, had a provider, a billingsystem that couldn’t quickly manage new equipment releases in the core network. The company decided to definea standard interface to send a stream of data between the systems, but soon discovered this was more time-consuming than anticipated.In the meantime, KPN wanted to introduce a new wireless service and found that delivering CDRs in uniformformat for billing was in the critical path—hardly an optimal situation.Adding new functionalities to its network meant that KPN’s CDR formats were changing. A flexible mediationsolution would ensure a uniform billing environment and promote revenue assurance. So, with flexibility and thecapability to manage system changes quickly as its key criteria, KPN approached Comptel Corporation aboutdeveloping a mediation platform that could help reduce time to market for services and beef up its bottom line. “We were extending our core network, making configuration changes and simultaneously collecting information from our MSCs (mobile switching centers) and network events. In order to be flexible enough to grow, we had to introduce mediation.” Peter de Fuijk, Manager, operations/ development for value-added servicesThe resulting solution collects and correlates information from the company’s 26 networked MSCs, its servicemanagement system center (SMSC), applications like voice mail, and various value-added systems, and sends it alldownstream to a retail and wholesale billing system used for third-party customers and KPN’s roaming subscribers.Mediation 38Compaq Telecom
  39. 39. Based on a Compaq AlphaServer™ six-node cluster, the system delivers the performance and availability neededto manage an average of 25 million CDRs per day with zero revenue leakage while maintaining 600 GB of data.With an excellent support contract from Compaq Service that covers maintenance, release management, andminor changes and adaptations to the system, KPN is confident its mediation system has the company flowing inthe right direction. For more information on KPN, see their website at http://www.kpn.com.Mediation 39Compaq Telecom
  40. 40. Compaq/Comptel Benchmark World-Class PerformanceCompaq and Comptel are long standing partners with over 40 joint customers worldwide. The combination ofComptel applications with Compaq innovative products, services and enabling technology has resulted inintegrated solutions delivered globally. in a benchmarking event Comptel’s MDS/AMD product, together withCompaq’s AlphaServer platform produced outstanding test results that approach performance figures previouslyseen only with high-end super computers and proprietary architectures. This record-breaking performancedemonstrates that the Comptel /Compaq solution offers both excellent maximum capacity and the scalability tomaintain performance when the numbers of ER’s and subscribers increase.Characterization tests conducted at the Compaq Computer European Technology Centre in Sophia Antipolis,France yielded exceptional results. The objective of the testing was to measure the compatibility and performanceof the MDS/AMD application under both ideal and customer-case conditions. MDS/AMD performed mediationtasks including conversions, analysis and delivery of event records produced by ATM and GPRS networks.The tests yielded just the result that both companies were looking for - outstanding MDS/AMD performance,scalability and stability. The powerful Comptel/Compaq combination processed over 100,000 ERs per hour or over8.6 billion ERs/day. This result proves that MDS/AMD can increase in scale from smaller environments toaccommodate the performance requirements of even the largest operators.In addition, the tests, conducted on both the Compaq ES45 and Compaq GS320 AlphaServers prove Comptel’smediation solutions can grow in a cost-effective way. The ES45 is a high performing option that renders good valuefor the money, while the GS320 offers maximum performance. For more information on Comptel, see the websiteat http://www.comptel.com. “The scalability of the Compaq platform enabled us to prove that we are ready for the mobile Internet challenge. This benchmark is an example of the close global co-operation between Compaq and Comptel and enables a smooth and consistent technology migration path with best-of-breed solutions for operators.”Mediation 40Compaq Telecom
  41. 41. Jari Annala, Executive Vice President, Comptel.Mediation 41Compaq Telecom
  42. 42. SUMMARYMediation 42Compaq Telecom
  43. 43. Resources and Quotation Sources1. “8 Lessons from the Telecom Mess / Bye-Bye Best Effort” Business Week, August 13, 20012. “BSS Mediation Market Report”, Marcus Evans, August 20013. “IP Mediation: System Selection and Functionality Requirements”, Billing World, October, 20014. “Mediation Device Requirements for GPRS” PriceWaterhouseCoopers, August 20015. “Multi-Service Mediation White Paper”, The Gartner Group, September 4, 20016. “OSS Integration: Stepping Stone to Flow-Through Provisioning” Billing World, August 20017. “Terra Incognita” Cap Gemini Ernst & Youngs Telecom Media Networks (TMN) Practice, August 20018. “The Future of Wireless – Delivering Next generation Services”, Ovum May, 2001.9. “The Mediated IP Data Battle Strategy: Divide and Conquer, or Partition and Store?” Billing World, July 200110. “The Role of Mediation in Billing and Customer Care: Have We Found the Critical Piece of the Convergence Puzzle?” The Yankee Group, September 12, 200111. “You are ---and so are lots of other people.” Sharon Cleary, The Wall Street Journal, June 25, 2001.12. The Future of Wireless – Delivering Next Generation Services”, Ovum May, 2001Mediation 43Compaq Telecom

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