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This reoprt covers the different flavors of convergence,analysis of global players,vendor analysis as well as consumer survey

This reoprt covers the different flavors of convergence,analysis of global players,vendor analysis as well as consumer survey

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    Telecom Convergence Telecom Convergence Document Transcript

    • Telecom ConvergenceSiddhant JainMob:- 9595637843Email:- siddhant_jain_ind@yahoo.co.inhttp://in.linkedin.com/in/jainsiddhant 1
    • Telecom Convergence ReportContents1. Definition & Scope of Telecom Convergence .............................................................................. 4 1. A) Definition .............................................................................................................................. 42. Myths regarding cross domain convergence: ................................................................................. 63. Scope ............................................................................................................................................ 84. Different types of convergence ...................................................................................................... 9 4. A) Cross Industry Convergence: ................................................................................................. 9 4. A.1) Telecom and Health Industry .......................................................................................... 9 4. A.2) Telecom and Automobile Industry ................................................................................ 10 4. A.3) Telecom and Banking Industry ...................................................................................... 11 4. B) Cross Domain Convergence: ................................................................................................ 12 4. B.1) Changes from convergence ........................................................................................... 14 4. B.2) Leading player strategies............................................................................................... 15 4. B.4) Role of Broadband ........................................................................................................ 16 4. B.5) Role of Operators .......................................................................................................... 18 4. B.6) Convergence of Networks and Technology .................................................................... 18 4. B.7) Key Challenges .............................................................................................................. 20 4. C) Post-paid prepaid ................................................................................................................ 20 4. C.1) INTRODUCTION............................................................................................................. 20 4. C.2) CONVERGENCE BILLING: FIVE FUNCTIONAL LAYERS ...................................................... 22 4. C.3) PRE/POST SOLUTIONS & ARCHITECTURES ..................................................................... 23 4. C.4) MODULES OF CONVERGENT BILLING ............................................................................. 26 4. C.5) OFFERINGS.................................................................................................................... 30 4. D) FMC..................................................................................................................................... 33 4. D.1) NEED FOR FMC: ............................................................................................................ 35 4. D.2) FMC ECOSYSTEM .......................................................................................................... 36 4. D.3) FMC SOLUTIONS ........................................................................................................... 38 4. D.4) FEATURES REQUIRED FOR FMC SERVICES ..................................................................... 42 4. D.5) FMC CHALLENGES ......................................................................................................... 43 4. D.6) FMC SWOT ANALYSIS .................................................................................................... 44 4. D.7) Offerings under FMC:.................................................................................................... 455.) Different facets of convergence: ................................................................................................. 47 2
    • 5. A) CONTENT CONVERGENCE .................................................................................................... 47 5. B) Service Convergence............................................................................................................ 49 5. C) Network Convergence ......................................................................................................... 54 5. D) Device Convergence ........................................................................................................... 576.) Demand of Convergence ............................................................................................................ 607.) Billing Vendors analysis .............................................................................................................. 66 7. A) Strategic future of Billing ..................................................................................................... 67 7. A.1) Amdocs......................................................................................................................... 68 7. A.2) Ericsson ........................................................................................................................ 71 7. A.3) Comverse...................................................................................................................... 73 7. A.4) Alcatel Lucent ............................................................................................................... 75 7. A.5) Oracle ........................................................................................................................... 76 7. A.6) Intec: ............................................................................................................................ 77 7. A.7) Convergys: .................................................................................................................... 79 7. A.8) Huawei: ........................................................................................................................ 80 7. A.9) ZTE ............................................................................................................................... 82 7. A.10) Nokia Siemens Network .............................................................................................. 84 7. A.11) Parameters for vendor selection ................................................................................. 858.) Unique Identification .................................................................................................................. 86 8. A) UID: Ease of implementation ............................................................................................... 86 A Unique Identity Bill ............................................................................................................... 86 Convergence............................................................................................................................ 87 Sharing of Information ............................................................................................................. 87 8. B) Benefits to operator ............................................................................................................ 88 8. C) Benefits to Customer ........................................................................................................... 909.) REGULATORY ISSUES OF CONVERGENCE .................................................................................... 95 9. A) INTRODUCTION ................................................................................................................... 95 9. B) LICENSING REGIME .............................................................................................................. 96 9. C) INTERCONNECTION IN CONVERGENCE................................................................................. 98References .................................................................................................................................... 106List of Figures ................................................................................................................................ 108ABBREVIATIONS ............................................................................................................................ 110 3
    • 1. Definition & Scope of Telecom Convergence:1. A) DefinitionFor so many years, convergence has been far more concepts than real actions in the industryenvironment but now scenarios are changing and ―the any factor‖ is coming into existence.―The Any factor‖Anytime, anywhere, any service on single device.Everyone in marketing domain talks about 4 P‘s of marketing but now with convergence this 4 Pconcept has also entered in telecom environment. 1. Pipe (Network) 2. Pod (Device) 3. Panel (User Interface) 4. Program (Content)Figure 1 :4 Ps in Telecom 4
    • Simply convergence is merging of different future visions at a single point.Broadly convergence can be classified into 2 types 1. Vertical convergence: It refers to integration between different levels of same industry like advertising, infotainment and web provided by single content provider. Similarly cellular services, fixed mobile services, DTH etc. services by same provider. 2. Horizontal convergence: It refers to integration of different industries like delivery of content, device and different services by a single provider.Figure 2: Horizontal and Vertical Convergence 5
    • 2. Myths regarding cross domain convergence:The opportunities in the new world of convergence are enormous. But so are the risks. When it comesto choosing convergence strategy operators must be able to separate fact from fiction, myth fromreality.Myth 1: Convergence is about controlling costs and driving efficiencies.This is true but it is by no means the whole story Convergence is also about giving subscribers thepersonalized services they want. Today‘s customers are more mobile, more demanding and more cost-conscious than ever. They want instant delivery of services, dynamic and flexible real-time offers,personalized packages and control over spending – and they want it now. Converged billing is theway to give these customers everything they want, with the freedom to flip between services andpayment options in real time. Offering this level of convenience and personalization can provide adistinct competitive advantage. And it requires a unified customer view that centralizes all ordering,billing and customer information – eliminating duplication, synchronization and other data issuesassociated with conventional billing systems.Myth 2: Standalone prepaid only or post-paid only vendors possess the expertise to achieve fullconvergence.Today‘s standalone prepaid and post-paid vendors may appear to offer the functionality required in aconverged solution but, in reality, they are inherently incapable of creating this environment on theirown. While these vendors can offer specific point solutions – either prepaid or post-paid – they maynot possess the production experience to handle all aspects of convergence. For example,transforming a post-paid system into a converged system may require the post-paid vendor toundertake a costly and risky project. They will need to build prepaid capabilities with complex, real-time, high availability functionality, that they may not have the know-how to really understand.Another common stopgap measure is for prepaid vendors to partner with other suppliers to provideback-end financial management for true end-to-end functionality. These multi-vendor partnershipscan result in a patchwork of systems that creates more problems than they solve. 6
    • Myth 3: Implementing a convergent solution can mean years of potential disruption to theoperator’s business.In truth, operators have the freedom to migrate to convergence as slowly or as quickly as they likewith minimal disruption to existing business. While some operators are ready to immediately move allof their existing customers to a converged solution, many prefer a phased approach. Some choose tophase by customer segment, others by service type. Still others introduce new converged capabilities– such as personalized rating or a common self-service portal across all service types – withoutdisrupting existing billing processes. A phased approach is feasible when the operator has chosen aconvergence partner with a modular, pre-integrated platform and with proven deployment expertise.Using a modular platform that has robust functionality already ‗built in‘ enables an operator toexecute a transformation in a timeframe appropriate for its business. This can help distribute capitalcosts over time, reduce risks and ensure that the operator‘s initial goals can be validated beforemoving on to more complex or comprehensive convergence adoption.Myth 4: Purchasing complete convergence today is overbuying. The operator is better offmaking a short-term decision today and dealing with longt erm problems later.One purchase decision can solve both problems. This strategy of planning for growth requires amodular product-based environment that can solve business needs today while offering a growth pathto meet tomorrow‘s demands. With a short-term approach, the operator may implement tacticalsolutions using a collection of suppliers and systems to fill an immediate need. When it‘s time to growthe operator is faced with a painful reality – its infrastructure is inherently unable to cope with growthand has, in fact, driven the operator into a technology dead-end. Short-term gain is overwhelmed bylong-term pain.Myth 5: Achieving low Total Cost of Ownership (TCO) must be easy, since everyone says theycan provide it.In the new world of convergence lowering TCO is about increasing the operator‘s self sufficiency byreducing its dependence on suppliers and leveraging the operator‘s own resources. Unless theconvergence solution can support operator self-sufficiency, reducing TCO can be extremely difficult.Self-sufficiency is achieved through a productized software platform that offers a unified view of thecustomer supported by a single database containing all billing, ordering and customer information.The operator must be able to rapidly configure new services, offers and promotions without requiring 7
    • expensive custom integrations. This approach also gives the operator firm control over its own futurewith inherent long-term application manageability. Being able to leverage a clear R&D product roadmap creates affordable upgrade opportunities for the operator. A low TCO solution must be driven bya ‗configure, don‘t code‘ mantra and enables operators to get new offers into the market in one to twodays, not one to two months.The bottom lineConvergence requires a new way of deploying and optimizing the billing and customer careenvironment, one that demands proven expertise across service types and across both the prepaid andpost-paid worlds. Taking convergence a step further – integration of value-added services with thebilling platform offers additional efficiencies. While most operators will eventually have to migrate toconvergence to stay competitive, not all billing suppliers are equally suited to the task of helping anoperator transform. Choosing the right convergence platform must be a decision rooted in reality, notmyth and it should be about current choices and trade-offs, risks and rewards.3. ScopeTo understand telecom convergence in better manner it can be further categorized as 1. Industry convergence (Cross industry and domain convergence): Cross industry refers to communication of telecom and non telecom industry like automobile, BFSI (Banking and financial services institutions). Cross domain refers to telecom, IT and media convergence. 2. Network Convergence: It refers to convergence at core and access part of network. It is basically merging of cellular, fixed mobile, broadband and other telecom related services at single network. 3. Service Convergence: Different voice and non voice service by a single provider. Like quad play and triple play. 4. Pre-paid and Post-paid convergence: Common handling of subscribers by having single billing (mediation and real time) solution for both categories. 5. Subscriber convergence: All subscriber information at single place for single AAA (Authentication, authorization, Accounting) 6. Device convergence: To land up all the services on a single device. 8
    • 4. Different types of convergence4. A) Cross Industry Convergence:It simply refers to entering of telecom into various industries like banking, insurance, automobile etc.Some of possible explanations are given below:4. A.1) Telecom and Health IndustryWith the coming of m-health there is seen a convergence in health and Telecom Industry.Need: 1. In countries like India m-health proves to be one of the major opportunities that can be used to provide secondary and tertiary medical expertise to the majority of people in rural areas who do not have access to good health care facilities but do own mobile phones. 2. Mobile devices can be helpful across the health care spectrum-transmitting vital information quickly during an acute public health crisis or being used for on-going needs such as education and training 3. In addition to improved patient outcomes, workflow and administrative efficiencies from the use of mobile devices can produce cost savings for the user or user organization.Offerings: 1. UAE-based telecoms provider Etisalat unveiled a new mobile health service at GITEX 2010 in Dubai this week. The service will use mobile technology to provide users with personalised and relevant health information via their mobile devices. Users are also able to seek active medical advice from consultants on issues such as exercise and sport, obesity and diet, and a range of illnesses including diabetes via SMS. This is all delivered via Etisalat‘s ‗Value SMS‘ platform 2. Orange smart numbers provides patients and healthcare workers instant access to the person available to answer their call, improving patient care and increasing internal efficiency. 3. Australian telecoms giant Telstra has signed a Memorandum of Understanding with the Royal Australian College of General Practitioners (RACGP) to deliver a suite of national e-health solutions and services. 4. Ericsson worked in partnership with Apollo Hospitals, Hand in Hand (a local NGO), Edurite, One97, CNN and the Cartoon Network to deliver a range of services including telemedicine, e-education, egovernance, voice and video call services and live television and entertainment. Ericssons HSPA solution is a part of Ericssons full-service broadband offering.Challenges 1. Acceptance of mHealth by the end user and the health care provider particularly in a developing country is itself a challenge. 2. Regulatory issues, logistics, and the use of appropriate, need-based, customized solutions are some of the other concerns. 3. General design challenges faced by all telemedicine systems include billing and usability 9
    • 4. Operating protocols need to be designed to coordinate, prioritize, integrate, and compress the diverse media streams.Vodafone standing: Vodafone already working with UN foundation to promote mhealthRecommendations: Vodafone India has not taken any initiative on this regard while the govt. of India is also interested in promoting m-health. With coming of 3-G the spectral inefficiencies remain resolved. Thus an initiative can be taken to promote not just m-health through mobile but also through other required equipment with the help of govt. and take the first mover‘s advantage.4. A.2) Telecom and Automobile IndustryThe automotive industry‘s demands for connectivity integration require products and services tailoredfor unique automotive production demands, supply chain logistics, global operations and high qualityindustrial integration.Trends:GPS systems have been seen to be integrated in the upcoming models in the industry already andother integrated services are on cards.Offerings: 1. Telenor Connexion has been working closely with car and truck manufacturers since 1999 to realize the potential of connected vehicles. Line-fit solutions for OEM customers like Daimler, Volvo, Scania and aftermarket solutions within fleet management, stolen vehicle tracking and pay-as-you-drive solutions all have different characteristics, technical needs and business. 2. WirelessCar is an automotive telematics service provider (TSP) providing manufacturers of cars and commercial vehicles with customized telematics services to end-customers anywhere in the world. Current reference customers are BMW, Volvo Cars, Volvo Trucks and Volvo Construction Equipment. 3. T-mobile, AT&T, Claro and Telenor Connexion have offerings globally in automotive telematics. Telenor Connexion specialises in mobile communication for M2M and telematics. Apart from that China Unicom, China mobile and China Telecom are also in the field. 4. Telenity, a US-based company that provides converged services over mobile networks, offers LBS in India through the country‘s top mobile operator Airtel and the state-run telecom giant BSNL. 5. Airtel, which has 120 million subscribers, now offers a location-based service called Buddy Finder on each handset. 6. BSNL has introduced eTrack, a fleet tracking system, which uses a vehicle-mounted, microprocessor-controlled device to send periodic SMS/GPRS messages from the vehicle to a network command center. 7. Tata Teleservices, which offers mobile phone services on a CDMA platform, has launched an LBS service that supports Points of Interest and Navigation applications for enterprises as well as consumers.Vodafone standing: 10
    • Vodafone offers Vehicle tracking systems to its enterprise customers in India.Recommendations:Use of LBS for non enterprise customers needs to be fully explored.4. A.3) Telecom and Banking IndustryNeed: 1. M-commerce would enable microfinance institutions (MFIs) to offer more competitive loan rates to their users, as there is a reduced cost of dealing in cash 2. The interactivity to perform transactions on the spot saves the customer a lot of time and ease to perform transactions 3. Banking–mobile communications product is a way for wireless telecoms to move beyond commodity voice services and differentiate their products to improve customer retention in a business with a notoriously high churn rate.Offerings: 1. I mode in Japan by NTT docomo 2. Idea Cellular Signs Up As Banking Correspondent For Axis Bank - Idea and Axis bank will run a pilot project to enable mobile remittance between Mumbai‘s Dharavi – one of the largest slums in the world – and Allahabad in Uttar Pradesh. Customers will be able to transfer money 3. Union Bank of India is planning to launch ―Union Bank Money‖, a mobile payments service, in partnership with Nokia and (Nokia funded) Obopay. The service allows customers to store money, transfer money and make payments: it is, by the looks of it, a wallet service. Nokia plans to preinstall the application in Nokia mobile devices. The rollout is expected to be complete in 12-18 months 4. Obopay has launched bill payments services for government owned telecom operator BSNL, in the West Zone, including in Gujarat, Maharashtra, Madhya Pradesh, Chhatisgarh. 5. Nokia has also partnered with Yes Bank to launch similar service for mobile payments 6. Competitor Paymate has partnered with Essar‘s retail chain MobileStore to offer mobile payment services across its 1,300 stores in over 200 cities 7. Movilpago, a joint-venture subsidiary of Telefonica Moviles, the cellular unit of Spanish telecom Telefonica SA, and Spain‘s largest bank, Banco Bilbao Vizcaya Argentaria SA (BBVA), will provide a wireless payment system over Telefonica‘s cellular network. 8. Mannesmann, the German subsidiary of the U.K.‘s Vodafone Group PLC, has a joint venture with Deutsche Bank. Telecom Italia has one with Banco di RomaTrends: 1. MChek has clocked more than a million users with Airtel since its commercial launch in June 2008 2. M-Pesa by Safaricom in Kenya was first introduced in March 2007. By mid-quarter of 2010, the application had over ‗2.3 million registered users with over 18 Billion (about $230 million) Kenyan Shilling (Ksh) moved through the system, via person-to-person transfers.‘ The service has now been transitioned to be operationally run by IBM Global Services on behalf of Vodafone; the initial three markets (Kenya, Tanzania and Afghanistan) are hosted MTN and Western Union have formed an alliance that is bound to ignite the biggest 11
    • international mobile remittance services or mobile money transfer, if you like, on the continent by Rackspace. 3. With new forecasts from ABI Research indicating that in 2015 about 244 million people worldwide will carry out financial transactions using their mobile phonesChallenges 1. Regulation, not keeping up pace with technology. 2. No clear-cut approach to addressing the challenge and there is still no defined predictability as to what level of changes could occur with adoption of MobileMoney in a big mobile market 3. Telecoms need certain capabilities in order to provide wireless finance services. Those they do not already possess, they can acquire relatively cheaply by allying themselves with banks. 4. Security issues concerning wireless transfer of money using third party applications. 5. Privacy of customer and account information to be securely transferred.Vodafone standing 1. Voafone in M pesa in Kenya, Afghanistan, Kenya, Tanzania 2. Mannesmann, the German subsidiary of the U.K.‘s Vodafone Group PLCRecommendations: 1. Regulators must encourage such alliances to sustain the relevance of the different segment players otherwise nothing stops a mega Telco from becoming a mega-multi services provider offering all services in one converged pipe 2. No-KYC Prepaid Instruments should not be encouraged by the operators. 3. Transparency to the customer and all the other parties involved. 4. Interoperability: by making all mobile payment offerings inter-operable it would allow pre- paid instrument issuers to connect networks and reduce the cost of establishing a business- correspondent/retail network.4. B) Cross Domain Convergence:Industry convergence, defined as a ‗blurring‘ of boundaries between industries, induced byconverging value propositions, technologies and markets, appears to be a pervasive phenomenonleading to the emergence of inter-industry segments. The industries under consideration are thetelecom, media and broadcasting sectors. Does convergence mean the closer co-operation betweenindustries or does it simply imply the substitution of products/services? Dealing with altered industrystructures through mutual innovation, traditional frameworks have to be Re-evaluated and will bemodified or extended in order to give direction for an adequate strategy. 12
    • Figure 3: Cross-Domain ConvergenceIn this particular context, industries can be defined as group of firms with similar resource bases. Andhence, it becomes possible to define an industry from both the demand side (Products/Services) andthe supply side (Resources/Technologies).The convergence of these products/services may lead to a scenario in which firms with ‗traditionally‘different businesses will compete against each other as the end user of the service is same. That is tosay that the user will perceive these firms, which were previously not in direct competition with eachother as being in the same ‗playfield‘.Figure 4: Supply & Demand of ConvergenceNeedless to say, this is undoubtedly an age of industry convergence.The biggest difference between the current era of convergence and the past two decades is that thedrivers of reform come from divergent directions. A new industry will emerge that combinescommunications, information, entertainment, media, even finance, retail and logistics. The telecomindustry will be but one part of it, but might no longer be a driving force with marked changes largelysteered by other industries that blend into the new industry mix. 13
    • Those in the telecom field must fully understand industry reforms, and go beyond the industry to consider issues from the perspective of industry convergence. Otherwise, it will be difficult to see future trends and confusion will reign. Major players like Apple and Google show us that in the new industry convergence game, operators need to play with their inherent advantages, rebuilding a commanding position and profit points into services. Also, the operators need to learn from past mistakes. The strategies to get access to content in the nineties led some operators to some difficult financial situations. Figure 5: Content Integration 4. B.1) Changes from convergence Industry transformations appear to be complex with many elements entangled, but no matter in which industry or era, the bottom line is that development must meet and cater to end users. The right direction for most new industries should: Be greater affordability. Low cost, accessibility, and easy use of products or services are crucial. Products and services should enhance and improve the lives of the users both at work and play. Services should generate a more enjoyable, fuller user experience and follow the trends in entertainment, fashion and social interaction. From the angle of the value chain, a convergent industry must encompass three elements: application, network, and terminal. 14
    • Application: The future primary application model most likely will be Software as a Service (SaaS).Compared with traditional business models, SaaS provides lower costs, better services, ease of useand completely conforms to the general development direction of the industry. All applicationsbecome a simple icon that users just click on to use. Many concepts such as Communication as aService (CaaS) will emerge and all applications will be virtually services.Network: Future networks must be deployed as"optical fiber + wireless". But the location to placeoptical fiber, the coverage of wireless services, and the choice of technology and networking modeldepend not only on equipment costs, but also on auxiliary equipment, installation, maintenance,energy consumption and equipment room leases. Apart from this, there may be more crucial factors,such as licenses, governance, and private ownership of land. There is great difference in these factorsbetween countries and cities. As a result, applicable technical solutions vary greatly.Terminal: In essence, terminals are the extension of networks, and the presenter of applications.Should terminals be intelligent or fool-proof? Fool-proof terminals (especially user interfaces) arein the mainstream, because the industry strives to serve the masses and users usually do not want todeal with complex high-tech devices. Key technologies at the terminal side are input/output, networkconnection capacity and power supply. Other capabilities should be implemented at the network sideto reduce cost and provide greater convenience for users. For convenience, terminal networks areconnected wirelessly.4. B.2) Leading player strategiesApples trump cardAfter the iPod turned out to be an overwhelming success, Apple continued its involvement in theinformation service industry. More importantly, through its App Store, Apple enables numerousindependent software vendors to develop various applications using iPhone software and hardware, tobetter match iPhone users personalization requirements. These applications are only sold through theiPhone and App Store and this channel has become one of the primary 3G service flows foroperators. Apple can share revenue with operators thanks to the iPhones popularity and the impetus itgives to 3G services. Certainly, Apples main control point is the superb user experience created by itssoftware and hardware, which stems directly from Apples highly capable innovation.Googles super platformGoogles situation is just the reverse when compared with Apples. It boasts a very powerful searchengine platform, but offers no support for terminals. For this reason, Google has developed Android, a 15
    • terminal operating system, and offers free source codes with it. This move has turned out to be quitepowerful. After Google provided the source codes, terminal vendors from around the world and evensome personal studios were able to design terminals on the platform. At the same time, softwarecompanies and even personal software developers internationally can develop various applications.The synergy can beat any company that develops applications independently. Despite the openness,Google does not let it roam freely, but keeps it on a short leash. Its control point lies in strong searchapplications and the powerful supporting ―cloud computing" networks.4. B.3) New operation directionSTRONG ALLIANCES ARE IMPERATIVEObjectively speaking, among participants in the transformation, emerging online media, such as Facebook, were not born with a silver spoon in their mouths, and they revolutionized theindustry. Traditional media like News Corp. have competitive pressure as well as an opportunity forexpansion. As long as the industry grows in size, upstream vendors like Intel have a stable yield. Thetelecom industry however will go along with the revolution and see the traditional voicecommunication market gradually diminish or even vanish. The telecom industry only plays asupporting role in this revolution. Some people argue that as a vested interest group, the telecomindustry is even acting in resistance to the revolutionaries.Fortunately, most astute telecom operators have realized that revolutions once they begin are oftenirreversible trends. By conformity and adaptation, operators can evolve and gain or regain the leadingposition. The first order of business is consolidation. Against the backdrop of globalization, localoperators are not in a position to compete with the industry titans. Eventually, they will either turninto mere conduits or be acquired. Telecom giants must keep expanding through mergers, and controlmore users, thereby gaining the foundation to compete with the service titans and even become newservice integrators.4. B.4) Role of BroadbandIn the converged scenario, broadband is expected to be the key driver for business growth. Theservice delivery is expected through different media namely wireless, fixed and cable and as such thecomplexity of the service environment will be very complex and tricky as compared to the presentscenario in that involves fiber and cable.Network complexity is also expected to be very high in such a scenario but the next generationtechnologies as well as network infrastructure will be able to cope up with the new challenges.Network management refers to the activities, methods, procedures, and tools that pertain tothe operation, administration, maintenance, and provisioning of networked systems. A common way 16
    • of characterizing network management functions is FCAPS—Fault, Configuration, Accounting,Performance and SecurityFigure 6: Network ManagementIt‘s safe to say that broadband wiil be the key factor for devices, products, services and theirconvergence. Some of the key elements in the converged set-up such as IPTv , Video-on-demand andMobile TV in a 3G environment will all be delivered on broadband connection thereby making it akey indicator of competitiveness.Figure 7: Screen ConvergenceAlso, thanks to broadband, there is bound to be a boom or explosion in the services arena apart fromthe three mentioned above. These will be in the following key segments: - E-Banking - E-Commerce - E-Government 17
    • - E-Leisure - E-Education - E-Health4. B.5) Role of OperatorsThe operators should be willing to accept the fact that traditional telephone services such as voice andmessaging cannot be treated as utilities on their part and they should not also out rightly jump intocontent creation either. The operators have to keep in mind the following key risks involved in thiscontext: - Dumb Pipes: With regards to a mobile network operator (MNO, or operator), the term dumb pipe refers to an operator‘s network being used simply to transfer bytes between the customer‘s device and the Internet. The use of the term ―dumb‖ refers to the inability of the operator to restrict services and applications to its own portal and primarily just provide simple bandwidth and network speed. The dumb pipe is one of the commonly understood operational models for a MNO. E.g. Apple‘s iPhone. The iPhone enables its users to directly surf the Internet with its mobile Safari browser and connects to Apple‘s ITunes store for purchasing ringtones and music instead of the operator‘s own portal. Operators such as AT&T Mobility cannot offer their traditional services (such as downloads of wallpapers, ringtones, games, applications, etc.) as Apple controls the total iPhone user experience. Operators must be content to provide only the network connectivity and bandwidth which the iPhone has tripled in some cities. In addition to losing valuable revenue opportunities with the customer, operators are rumored to pay Apple a percentage of the customer‘s monthly bill as well. While the iPhone is a good example of the dumb pipe, not everyone believes it will ultimately be bad for operators. - Control of content: Controlling the content available to the consumers is a key role for the operators. The explosion of content-sharing services available to the consumers has threatened the content business. The generators of content are looking for new innovative measures to sustain growth of their businesses.4. B.6) Convergence of Networks and TechnologyConvergence can be compared on the basis of level of advancement in the technology and servicesavailability at a particular time. The evolution of media, IT and telecom industries from previoustechnologies to an all-IP scenario is what is driving the growth of convergence. Following is thematuring of technologies: 18
    • TELCO  ISDN BISDN ATM NGN IMSIT Computer Internet Broadband NetworkMEDIA CaTV IPTVSDP INTEGRATION:As SDPs evolve, they will often require integration of telecom and IT capabilities and the creation ofservices beyond technology and network boundaries. SDPs available today are optimized for thedelivery of a service in a given technological or network domain (examples of such SDPs includeweb, IMS, IPTV, Mobile TV, etc.). They will typically provide a service control environment, aservice creation environment, a service orchestration and execution environment, and abstractions formedia control, presence/location, integration, and other low-level communications capabilities.Figure 8: SDP Framework Integration 19
    • An SDP aggregates different network capabilities and services as well as different sources of contentand allows application developers to access them in a uniform and standardized way.In the past the SDP concept has been primarily focused on the IT infrastructure required to deliver andmanage the service environment, with the underlying network simply providing the interface anddelivery machinery. However, in the new evolving SDP world these boundaries between IT andnetwork environments are merging, thus generating the need for a new end-to-end architectural viewspanning the complete service delivery environment. In particular the following new challenges needto be addressed:4. B.7) Key Challenges - Regulatory aspects - Internet privacy - Content business model4. C) Post-paid prepaid4. C.1) INTRODUCTIONPrepaid and postpaid systems came from different domains and were aimed at solving the problems ofdifferent market segments. Prepaid systems, predominantly network elements, provided zero balanceleakage and high performance, but were inflexible in defining new services and tariffs. On the otherhand, postpaid systems, the heart of the BSS, provided a high degree of flexibility to handle complexservice plans and innovative business rules, but lacked real-time capabilities.As long as prepaid and postpaid systems addressed different market segments and different marketneeds, there was no real incentive for converging these domains, despite the higher operationalexpenses incurred in managing two separate systems. However, market trends and customer needs arechanging, and it is no longer possible to clearly segment prepaid and postpaid customers.There are three main reasons for considering the consolidation of prepaid and postpaid environments:  New revenue opportunities  Increased retention and customer satisfaction  Reduced direct and operational costsNEW REVENUE OPPORTUNITIESIncreasing revenues is the best measure of success, and selling more to existing customers is an easyway to do so. Converging prepaid and postpaid customers into a single platform does this and more. It 20
    • allows providers to offer all customers a complete set of services, turning the payment method(prepaid or postpaid) into a mere financing issue. With this approach:  Prepaid customers can be offered services and options that were once available only to postpaid customers.  Postpaid customers can benefit from real-time control of their services and from unique offerings. A converged charging system allows them to control their spending, receive balance notifications and real-time promotions, and derive instant gratification from actions they perform.  Hybrid customers (with both prepaid and postpaid services) constitute a new business segment. A converged system enables them to combine prepaid and postpaid subscriptions, split charging for prepaid and postpaid accounts based on any characteristic, and benefit from blended services, volume discounts, and more.  Innovative services, business rules and upsale/cross-sale offerings enable service providers to escape the declining "price per minute", or even worse, flat rate schemes.INCREASED RETENTION AND REAL-TIME CUSTOMER INTERACTIONAs competition intensifies and customer retention becomes a key issue, delivering yet another serviceor competing on price is no longer a viable long-term solution. Now, Providers must focus on thecustomer experience as subscribers interact with a multitude of services.A truly converged solution allows services to be offered in a blended manner (as opposed to as a setof discrete services), providing subscribers with a sense of a single, multifaceted experience.Moreover, they can interact in real-time. They expect that when they press a button, complete adownload, or reach a bonus quota, the provider will respond immediately with the appropriate action(for example, increasing the loyalty points balance or granting free SMSs). With a converged solution,providers can achieve this by offering a solid mix of real-time services they can interact with andrespond to in real time.REDUCED OPERATIONAL COSTSThe consolidation of prepaid and postpaid environments can have significant cost-saving benefits.Ultimately, prepaid and postpaid customers will have a single set of service offerings, single servicelogic, and a single set of tariffs, discounts and promotions. By converging prepaid and postpaidsystems over a single customer base, a single set of processes, interfaces, and operational procedures,providers should expect a reduction in OPEX and in TCO. 21
    • 4. C.2) CONVERGENCE BILLING: FIVE FUNCTIONAL LAYERSA convergent charging and billing solution consists of five functional layers based on commontechnology:  The customer care layer provides a 360-degree view of all subscribers and services, including self-care.  The billing layer provides a single bill and statement for all communication services — fixed, mobile, broadband, and TV —to increase convenience for subscribers.  The charging layer provides real-time rating, bonuses, and promotions as well as notifications to subscribers in real time. This stimulates usage and increases customer intimacy and loyalty.  The mediation layer reduces revenue leakage by providing online bidirectional transport of charging information between network and service elements for real-time charging.  The session control layer enforces credit and spending control by providing network and service elements that can notify users and stop services when real time charging indicates that credit has been depleted.Each layer requires unique convergent capabilities and should work interdependently. In addition, theconvergent charging and billing solution must have  The ability to configure new price plans, services, and products quickly;  Highly configurable business rules to ensure that requirements are met with minimum need for customization; and  High availability and scalability, pre-verified and lab tested (this is not something an operator can afford to integrate in the field).A major challenge in delivering a converged solution is in using a single instance of all key billingand CRM system components.  A single high-performance real-time rater handling usage transactions for prepaid and postpaid customers and at the same time required to address non-usage events;  A single customer database;  A single product catalog merging the pre-paid product catalog for applying usage rating and usage discounts, with the CRM and Billing catalog holding all non-usage services, applying recurring and one time charges and Billing discounts.  A unified CRM delivering the full suite of services and offerings to all customers. 22
    • 4. C.3) PRE/POST SOLUTIONS & ARCHITECTURES There are three main solutions for achieving prepaid/postpaid convergence:  End-to-end converged pre/post solution  IN-based pre/post solution  Unified CRM solution. The three solutions differ in the level of convergence they provide, the systems they use, their integration and implementation requirements, and on where critical data is stored and managed. The following sections review the three solutions, and outline their benefits and drawbacks.END-TO-END CONVERGED PRE/POST SOLUTIONAn end-to-end converged pre/post solution provides high integration and operational efficienciesusing a four-layer approach:  A service control layer consisting of a standard component of an IN, the SCP, which is used to control the service usage and to communicate with the switching device on the one hand, and with the charging function on the other. The SCP queries the charging and business control layer for session quota allocation and sets a timer for triggering subsequent queries. In an end-to-end pre/post converged architecture, all service requests (prepaid and postpaid) go through the SCP, as opposed to the traditional separation between batch CDRs and real-time events.  A charging and business control layer that serves as a real-time function within the converged system architecture where information related to a usage event is collected, formatted, transferred and evaluated so that it is possible to determine the charging or business implication on one or more parties. This function enables customer interaction and affects the service rendered in real-time. In this solution, the charging and business control layer encapsulates a single rating, charging, and business control with online and offline interfaces. IMS compliant, it implements the Policy and Charging Control (PCC) function.  A billing layer that provides industry-generic system processes including invoicing, account receivable, voucher management and discounting. Using a business rule designer, it should allow competitive services and business rules to be introduced 23
    • quickly and intuitively. The billing layer should offer real flexibility in payment methods and allow balance transfers from any customer to any customer (for example, from post-paid to pre-paid), voucher replenishments by any customer to any balance, and many more.  A CRM layer that covers a broad spectrum of customer relationship management and business processes including sales, marketing, service management, and self service. The CRM layer manages the entire customer base of pre-paid, post-paid and hybrid customers from a single customer repository and using a single product catalogue. The product catalogue must contain all service offerings and tariffs for all customer segments, regardless of their payment methods.Figure 9: CONVERGED PRE/POST END-TO-END SOLUTIONThis solution addresses the stringent requirements of a converged solution and ensures some distinctbenefits:  New revenue opportunities - All customers have access to all services, enabling them to consume the full suite of provider offerings.  Single-product catalog – Providers can apply highly innovative business offers and promotions to both prepaid and postpaid services, for example, hybrid services and real-time discounting.  Real-time balance management – Enables real-time credit control and enforcement of spending limits for all customers.  Single-charging and rating layer – Usage rating, billing charges, usage and billing discounts, and any other business rule are all implemented in a single charging layer. 24
    •  Operational efficiency - CRM, billing and charging are provided a single, end-to-end, extremely flexible solution with no overlapping modules.IN-BASED PRE/POST SOLUTIONThe IN-based pre/post solution integrates between an IN charging layer and a CRM and billing layerfor handling the full range of customers. In this solution, the IN charging engine is used as a singlerater of both prepaid and postpaid transactions.Figure 10: IN-Based Converged PRE/POST SolutionThis approach shares most of the advantages and benefits of the end-to-end converged pre/postsolution, while allowing customers to preserve their IN systems investment. Notwithstanding, thereare some issues that must be taken into consideration when implementing this approach:  Minimizing duplication between customer accounts that are held in the billing and CRM layer and in the IN layer. The latter must hold only charging-related information and real- time balances.  Synchronizing service offerings contained in the CRM and in the IN layers. The main product catalog resides in the CRM, while related information required for charging is synchronized with the charging layer. This solution is typical for providers that already have an existing IN-based network and are looking to complement it with postpaid capabilities. A pre integration between the IN vendor and the billing vendor ensures the best results.UNIFIED CRM SOLUTIONThe unified CRM solution offers a single CRM layer on top of existing, separated, prepaid andpostpaid billing systems, coupled with a central product catalog that holds all service offerings andtariffs for the entire customer base. 25
    • This approach offers only part of the full pre/post advantages; however, has the benefit of low costand relatively quick implementation. Like the IN-based solution, it enables service providers tomaintain their existing investments in prepaid and postpaid systems.Figure 11: Unified CRM solution4. C.4) MODULES OF CONVERGENT BILLINGFigure 12: Modules of Convergent BillingThe modules which broadly represent convergent billing are as follows:Network Elements 26
    • Network elements include all elements through which data flows as well as formation of CDRhappens. These include xGSN, PDSN, MSC, VoIP servers, WAp gateways, Game server to name afew.Figure 13: Network ElementsMediation As new services come into the fray, handling increased number of data formats is the main concern for the service providers. Even after collection processes, these traffic and network information from different input CDRs still need to be merged in order to construct meaningful billing information to be displayed on a consolidated bill.FUNCTION OF A GOOD MEDIATION PLATFORMIn an evolving environment where network convergence continues to dominate, the mediation layerneeds to perform the following key selected functions:Network Data CollectionThe mediation engine needs to be able to collect event data from disparate network elementsdynamically in real or near real time. In addition, it should also support file-based or record-basedcollection of data information from different network protocol. 27
    • Figure 14: Network Data CollectionNetwork Data ProcessingEvent data generated from network elements typically have various formats according to networkelement vendors. The mediation layer should be able to convert these heterogeneous event data into astandardized format for downstream distribution. In addition, user interface should allow serviceproviders to customize field formats, field mapping, action rules, validation rules according to therequirements of the business.Data DistributionData Distribution involves transmission of reformatted usage data to downstream systems like datawarehouses, etc in real time or near real time via suitable network protocols. A convergent mediatorshould allow user to register and manage downstream application interface information, such as IPaddress, system name etc by specifying such information in user interface.Figure 15: Data Distribution 28
    • Data AggregationIn an all IP environment, multiple interim event records are typically generated during a singlesession. In such scenario, data aggregation is necessary to combine multiple interim records to form asingle CDR record for charging purposes.Data CorrelationFor billing purposes, a service provider has to select and group records generated from the samesession from multiple network elements. Once the records are distinguished and collected, theinformation is correlated to form a single billable record. Ability to perform such complexcorrelations of events is a must in a convergent mediator.Duplication CheckingIt is imperative that mediation solution must be able to avoid data omission and remove duplicate datato insure accurate billing. Duplicated records should be stored in separate databases for futureinvestigation purposes.Rating The solution should converge all provisioning, transaction, charging, rating and billing for supported services (voice, data, SMS, mCommerce) under a single system in the most comprehensive fashion and most importantly, in real-time.Figure 16: Rating Module 29
    • Types of Ratings include: 1. Voice Rating Voice Rating enables you to deliver, rate, and verify prepaid/postpaid voice services with confidence 2. SMS/MMS Rating SMS/MMS Rating controls and rates enhanced messaging services for prepaid and postpaid users, including premium SMS/MMS delivery, tele-voting, gaming and content downloads. 3. Data Rating Data Rating offers you a competitive advantage with real time rating of new emerging data services based on events, volume, quality of service, time of day, source, and destination. 4. C.5) OFFERINGS1. Vodafone Czech Republic: Full Convergence for Enterprise Offers PROFILE Vodafone Czech Republic (CZ) has grown since entering the market in 2005 by acquiring Oskar Mobil, which was then the fastest-growing operator in the country. Increasing their customer base by over 9% in 2007 (more than 245,000 subscribers), Vodafone CZ now has attracted more than 2.751 million subscribers as of June 2008 and continues to thrive, despite the fact the country‘s mobile subscriber penetration rate is over 120%. THE CHALLENGE Breaking into the corporate segment as the first operator in a highly competitive European market to offer a full range of fixed-mobile convergent telecommunication services, focusing on simplicity, flexibility and cost savings. THE SOLUTION Vodafone adopted FORIS NG, a fully-convergent Charging and Billing solution from SITRONICS Telecom Solutions, pre-integrated with CRM from Microsoft® and TIBCO® middleware. 30
    • BENEFITS Vodafone was able to attract hundreds of new corporate customers of different sizes with their fixed- mobile convergent offer, OneNet. FORIS NG automates Ordering, supports complex customer hierarchies and provides a unified Product Catalogue for shortening time-to-market for introducing or modifying offers.2. AMAZONIA AND TELEMIG CELULAR : Network Interface Solutions – Intec Rating & Charging PROFILE Amazônia Celular S.A. provides wireless services in five states in the north and north east of Brazil, covering some 41 per cent of the national territory and with a 27 per cent market share. REQUIREMENTS Amazônia/Telemig offer a wide array of content based services, with approximately 160 service offerings and more than 5,000 content items/channels. Since most of the customer base is prepaid, it was imperative to find an active mediation platform that could bill for these services in real-time for both pre and post paid customers. SOLUTION Amazônia/Telemig selected Intec Rating & Charging because of its flexible functionality that allows them to bill in real-time for all of their content-based services for both pre and post-paid customers. Intec Rating & Charging‘s customisable pricing and flexible business rules were also of particular interest given Amazônia/Telemig‘s broad portfolio of services. BENEFITS Evandro Canabrava, chief information officer at Amazônia/Telemig: ―We needed an active mediation and real-time rating system that could also leverage flexibility in rating rules and service plans to both prepaid and postpaid customers.We selected Intec Rating & Charging to enable us to bill for our content based services in real-time, allowing us to offer more services, and therefore increase customer satisfaction and revenue.‖ 3. TELECOM NEW ZEALAND: Retail Solutions – Intec Convergent Billing (Singl.eView) PROFILE Telecom New Zealand (TNZ) is one of the leading telecommunications network providers in Asia Pacific with over 3.5 million customers using its fixed line, mobile, and Internet services. Following the deregulation of the country‘s telecommunications market in 1989, TNZ found its market share under competition from new entrants. 31
    • REQUIREMENTS With TNZ needing to retain and grow its market share, the organisation realised it had to overcome the challenge of an older network and the legacy of an ageing billing system. This lead TNZ to shift its business focus to new technologies and business and operating support systems as part of an investment strategy. SOLUTION TNZ developed a long-term roadmap, which included a commitment to roll out a ‗next generation‘ IP network to residential customers. With the new IP network able to offer customers a greater range of value added services, TNZ needed to upgrade its billing system to a single convergent solution to maximise the investment in the network and expand its offerings. Following a formal competitive bid process, TNZ selected Intec Convergent Billing to provide competitive advantage. BENEFITS Mark Ratcliffe, chief information officer at Telecom New Zealand: ―The selection of Intec Convergent Billing formed part of TNZ‘s strategic shift toward operating as a full service provider and the ability to offer customers one bill for post-paid and pre-paid services.‖4. MTS Russia Profile With over 90 million customers across Russia and the CIS, Mobile Telesystems (MTS) is the leading telecommunications service provider in the region, billing over 64 million customers in Russia, its key market. Since 2000, MTS has been publically traded on the New York Stock Exchange and was recently recognized as one of the Top 100 Most Powerful Brands in the world by BRANDZ™, with revenues increasing 29% in 2007 to reach $8.2 Billion. Challenges  Prior to 2003, MTS Russia used dozens of diverse billing systems and IN platforms from different vendors, stretching across nine macro-regions and 8000 km of Russian land. Faced with rapid subscriber growth, MTS‘ previous systems lacked the necessary scalability to handle more customers. This raised expenses and caused marketing activities to suffer due to the complicated synchronization of a variety of systems.  Similarly, the lack of support for real-time online charging for next generation services resulted in missed revenue opportunities. 32
    • SolutionIn response, MTS initiated a major OSS/ BSS transformation in July 2003, starting with a plan toreplace all billing systems with FORIS OSS, a Prepaid/Postpaid convergent Charging and Billingsolution and later consolidating various IN platforms with MEDIO IN/SCP from SITRONICSTelecom Solutions.FORIS OSS and MEDIO IN/SCP provided the following benefits:  Convergent charging for retail & corporate subscribers reduces tariff complexity and configuration time  Robust and scalable billing handles even the largest customer bases and traffic loads  Unified Rating Engine supports advanced rating schemes and handles both online & offline rating and discounting  SCP enables popular VAS and provides open, standard interfaces for seamless integration of 3rd-party systems  Self Care empowers customers to take charge of their own service setup, supporting online changes even to corporate hierarchies, with bonuses to reward ―sticky‖ customers4. D) FMCINTRODUCTION:FMC can be simply identified as ―One Phone, One Number, One Bill‖Fixed Mobile Convergence (FMC) in simple terms & broader sense can be defined as theconvergence of Fixed (wireline) and Mobile (wireless) networks, services and terminals. FMC willenable the subscriber to access a wide variety of communication, information and/or entertainmentservices, with consistent quality of service regardless of the device used, the underlying network overwhich those applications run or the users location.The aim of Fixed Mobile Convergence (FMC) is to provide fixed and mobile services with a singlephone or personal device, which could switch between networks ad hoc.Fixed Mobile Convergence (FMC) allows network and service operators to make more efficient useof existing access technologies (GSM, DSL, Wi-Fi), as well as taking an advantage of the roll-out ofnew access technologies such as 3G, WIMAX etc, by launching new voice & multimedia services andrealizing cost reductions by implementing common service machinery for different access networks. 33
    • Fixed and Mobile Convergence is concerned with the provision of network service capabilities, whichare independent of access technique. This does not necessarily imply the physical convergence ofnetworks. It is concerned with the development of converged network capabilities and supportingstandards. This set of standards may be used to offer a set of consistent services via fixed or mobileaccess to fixed or mobile, public or private networks.An important feature of fixed mobile convergence is the separation of the subscriptions and servicesfrom individual access points and terminals and to allow users to access a consistent set of servicesfrom any fixed or mobile terminal via any compatible access point. An important extension of thisprinciple is related to internetwork roaming; users should be able to roam between different networksand to be able to use the same consistent set of services through those visited networks.LAYERS OF CONVERGENCE IN FMCThe following three layers of convergence will be required to be carried out to achieve objectives ofFMC:- a. Network convergence – The same network (physical infrastructure) is used for both fixed and mobile services. Network convergence can be further divided between the access network and the core network. b. Service convergence –The same service can be accessed from different types of terminals & networks. c. Terminal convergence – Single terminal can be used to access different services offered by different networks (different technology).FIXED MOBILE CONVERGENCEFigure 17: Fixed Mobile Convergence 34
    • FMC is a service in which the most appropriate network can be used according to the situationwithout users being aware of when the terminal switches between fixed and mobile modes. FMCalso enables automatic network selection for incoming and outgoing calls, roaming and handoverbetween different networks, and an integrated billing service. The users‘ needs for FMC are based onrecognize the new value and benefits of converging fixed and mobile networks is needed.FMC is expected to provide a ubiquitous service that can be used at any time and any place. In theenterprise market, FMC is expected to create new business opportunities by making businessoperations more efficient, presenting business model innovations, and reducing costs.4. D.1) NEED FOR FMC:1. ProductivityProductivity can be increased by implementing FMC. With on-the-spot access to the organization‘sfixed systems, mobile professionals can make more informed decisions. Having a single phonenumber that customers and colleagues can use to reach the employees of the organization, no matterwhere they are. This means that they are never out of touch. Workers can collaborate more quickly byaccessing familiar desktop phone features like call transfer and extension dialling right from themobile device.2. SecurityWireless solution security helps to address the need to transmit voice and data in a highly securemanner through encryption, authentication, authorization, access control and firewall protection downto the wireless device level. As wireless solutions continue to build momentum and the subsequentnumber of wireless devices grows, the demand to manage and secure these solutions increases. FMCis designed to extend the security and control of fixed voice network to mobile devices. With highlysecure access, organization can minimize the likelihood that it could be the target of toll fraud,conference call snooping and other unauthorized access. Validation of a user‘s voice networkcredentials over an encrypted data channel between the mobile device and the organization‘s serversis leading edge technology and provides a highly secure solution.3. Planning for future innovationMost organizations have made significant investments in voice technologies, but voicecommunication is always changing and improving. Plotting a course to take advantage of innovationcan help the organization maintain control while increasing employee freedom. FMC solutions allowleveraging existing infrastructure by integrating mobile devices with fixed PBX-based desk phone 35
    • functionality. FMC solutions that support multiple and mixed network technologies (IP/TDM) allowto extend the life of existing telecom capital investments while leaving the door open to new ones.4. Competitive advantageEnabling mobile workforce to use their mobile device as a highly secure mobile desk phone allowsthem to answer customer inquiries faster, to beat competition and to help organization grow in aglobal economy. FMC allows organization to maintain ownership and control of its telephonenumbers, making them a managed asset that customersand vendors are familiar with.5. CostFMC opens the door to a variety of cost-control opportunities. In some cases, calls placed frommobile phones to long-distance and international endpoints can be costly. The ability to extend class-of-service control to mobile devices allows to permit and restrict access to services like internationaland long-distance calling or pay-per-use (i.e., information) services. With FMC, cost can be furtherreduced by implementing policies that route mobile calls through your PBX and across the lowest-cost negotiated rate fixed-line networks. Directing mobile calls through PBX also allows auditingmobile usage through advanced reporting features which help to reduce time and cost associated withbusiness use billing. These reports can help better understand current usage patterns, allowingplanning strategically for future mobile workforce expansion.4. D.2) FMC ECOSYSTEMThe main elements of FMC ecosystem include service providers, equipment and software vendors,and customers.End user equipment, including customer premises equipment (CPE) like cable modems, mobiledevices, and fixed phones.The main segment in the FMC ecosystem on the ―service-receiving end‖ includes residential,enterprise, and institutional (such as government, research, health-care, and military) subscribers.These markets have different needs but are driven by similar objectives: cost savings on both serviceand equipment sides, convenience or productivity enhancements, and coverage or reception andpotentially service quality improvement. 36
    • FMC ECOSYSTEM SERVICE CONSUMERS VENDORS PROVIDERS FIXED RESIDENTIAL INFRASTRUCTURE OPERATORS ENTERPRISE APPLICATIONS & MOBILE CONTENT OPERATORS INSTITUTIONAL END-USER EQUIPMENT MVNOs VOIP CPE IXCTRADITIONAL HANDSETS CELLULAR ILEC ACCESSOR CONTENT IES MOBILEBROADBAND BROADBANDFigure 18: FMC EcosystemSOLUTIONS FOR FMCCordless Telephony Profile (CTP) and Unlicensed Mobile Access (UMA) standards are interim FMCsolutions that enable operators to offer FMC services to only a limitedextent, whereas IP Multimedia Subsystems (IMS) standard by 3 rd GenerationPartnership Protocol (3GPP) is considered as a solution for complete FMC. CTP and UMA are,therefore, generally referred to as pre-IMS solutions, as shown in Figure. 37
    • 4. D.3) FMC SOLUTIONS CTP Cordless Telephony Profile UMA Unlicensed Mobile Access IMS IP Multimedia SubsystemFigure 19: FMC Solutionsa. Cordless Telephony Profile (CTP) is a profile defined within the Bluetooth specification, bythe Bluetooth Special Interest Group, which allows a Bluetooth-enabled mobile phone to be used as acordless telephone when it is within a range of a Bluetooth CTP access point. CTP is thus a way ofadding limited mobility – cordlessness - to the fixed network. CTP acts as an application on thedevice - which is sometimes a mobile phone and sometimes a hands-free headset. Mobile and fixedaccess are only loosely converged in CTP. The mobile device retains its GSM number, whereas theCTP access point uses the number associated with the fixed line to which it is attached.b. Unlicensed Mobile Access (UMA) provides access to GSM and GPRS mobile services overunlicensed spectrum technologies, including Bluetooth and WLAN 802.11 (and may later cover otherunlicensed technologies, such as WiMax or even Ultra Wideband (UWB)). By deploying UMAtechnology, service providers can enable subscribers to roam and handover between cellular networksand public and private unlicensed wireless networks using dual-mode mobile handsets. The UMAsolution has now become a 3GPP standard named Global Area Network (GAN).Figure 20: UMA mode of FMC 38
    • In the UMA based solution, the inter-networking of calls from cellular to Unlicensed Mobile Network(e.g. WiFi, Bluetooth) will occur via UMA Network Controllers (UNC) that enable call hand offs ondual mode handheld devices, as shown in Figure.UMA SERVICES OFFERED IN EUROPEOPERATOR YEAR OF LAUNCH NAME OF SERVICE COUNTRYBT 2005 BT Fusion UKOrange 2006 Unik UK, France, Spain, Netherlands, PolandTelecom Italia 2006 Unico ItalyTelia Sonera 2006 Home Free Finland, SwedenUMA provides GSM services over WLAN radio with built-in roaming and handover between WLANand GSM. While UMA may be appealing to GSM operators, there are a few drawbacks with thisapproach:  It applies only to GSM operators.  It doesn‘t provide any new end-user services, only connectivity to legacy services.  It doesn‘t leverage SIP-compliant terminals, which are likely to be implemented on all WLAN-compatible terminals in the long term.c. VoIP extensionSeveral service providers offer downloadable clients for dual-mode handsets that extend the enduser‘s subscription to the handset. Once out of WLAN coverage, though, the end user is back tonormal cellular service. The advantages are a very low cost to the end user, an easy-toinstall overlaysolution and the ability to add multimedia services. A large and problematic drawback is that there isno opportunity to provide roaming to cellular service — so you have a converged device but not aconverged service as part of an enhanced service portfolio. It is thus a step toward convergence butnot true convergence.d. IP Multimedia Subsystem (IMS) is a standard that defines a generic architecture based on SIPwhich allows multiple real-time applications to run across a single network. Although it was initiallydesigned by the 3rd Generation Partnership Project (3GPP) for mobile networks, newer releases ofIMS are designed to be access- agnostic so that it can be used by any type of access method, be it a 39
    • fixed line, GSM, CDMA2000, WCDMA, Wireline broadband access, WiFi or WiMax. IMS basedFMC solution is shown in Figure 4.Figure 21: IMS based FMCVoice Call Continuity, currently under development in 3GPP R7, extends an IMS network to cellularcoverage and addresses handover. It provides seamless voice call continuity between the cellulardomain and any IP-connectivity access networks that support VoIP. It‘s the most comprehensive ofconverged service approaches in that it can work between any cellular technology (GSM, UMTS, andCDMA) and any VoIP-capable wireless access. IMS-VCC provides for the use of a single phonenumber (or SIP identity) as well as handover between WLAN and cellular. It also provides keyadvantages:  A single solution to target multiple markets and segments  Enhanced IMS multimedia services, such as greater personalization and control  Seamless handover of voice calls between a circuit-switched domain and IMS  Seamless integration with other VoIP networks  Access to service from any IP device 40
    • Figure 22: IMS network of FMCe. FemtocellsA femtocell is a modern, smaller scale, reincarnation of a nano- and picocell technology firstintroduced in the previous decade. Specifically, nanocells and picocells were initially brought tomarket in the late 1990s by companies like Nokia, Motorola, and Ericsson. Unfortunately theseproducts were not well received. Among the reasons at the time were limited backhaul bandwidth,high equipment cost, and poorly chosen deployment strategy—a typical combination of factors for atechnology ahead of its time.Femtocell solutions nowadays are used to convert traffic to and from standard cellular handsets inclose proximity (typically up to 100 meters) and carry it over IP, reducing to a bare minimum the airportion of the cellular traffic and relieving operators from the necessity to deploy expensive wide areacellular sites.Essentially a femtocell is a miniaturized base station with the following characteristics:■ Radiated power in the single-digit mill watt range■ Capacity between four and ten simultaneous active calls■ Backhaul based on IP over broadband links■ Range around a hundred metersFemtocells are typically designed to be installed in residential home zones or small offices. They aredesigned to provide the same service as any other base station to subscribers using standard cellularhandsets. 41
    • Figure 23: Femtocell based FMC4. D.4) FEATURES REQUIRED FOR FMC SERVICESThe following are the major functions necessary to realize an FMC service: 1) Mobility management To provide an anytime/anywhere FMC service, it is necessary to continuously track the user‘s whereabouts and deliver incoming data based on this location information. While the existing mobile communication system manages the user mobility within an access network, FMC needs to control various access networks such as WLANs and 3G cellular phone networks and select the most appropriate route. 2) Seamless handover A function that enables users to seamlessly shift within and across access networks is required. For example, FMC services must be handed over from a 3G cellular-phone network to an ADSL/optical fibre network. 3) Features to support various access networks A feature that allows any type of access net work to be selected according to its availability and a feature for converting the access network dependent communication protocols to the access network independent communication protocol of the core network (i.e., SIP) are needed. 4) Lifeline and emergency response services Functions for complying with lifeline requirements, for example, support for emergency responses and ensuring system reliability are needed. 5) SIP basic control A session control function, for example, for basic call origination/termination and routing, is required to continue the existing call services. The SIP protocol, which is widely used in IP networking, is the best choice for the session control protocol. 6) SIP supplementary service control 42
    • A supplementary service scenario and net work resources (talkie files, CODECs, etc.) for achieving supplementary services are required so a wide variety of services can be provided. 7) Interconnection function Interconnection with other carriers is essential for expanding the use of FMC services. To achieve it, functions such as a protocol conversion function and account adjustment function are required. 8) QoS Control To provide a wide variety of services over the IP network, a function for ensuring the quality of communications according to the service characteristics is required. A QoS control function is especially important to ensure a sound quality equal to that of existing phone services, regardless of IP traffic levels. 9) Security 10) A high level of security and the protection of privacy are necessities for the communication services of carriers. In particular, to avoid interception, there should be a focus on features for authorization and confidentiality.4. D.5) FMC CHALLENGES • Number plans and number portability • Fixed and mobile numbers come from separate blocks and they have prefixes that contain information for interconnection charging • Currently there is separate fixed number portability and mobile number portability available but not fixed/mobile number portability • Directory services • Fixed operators provide directory service to their customers. This catalogue contains information on all fixed line customers • Currently mobile operators do not offer this kind of service and mobile numbers are considered as personal data • Handset availability • Always a problem in the early stages of any telecommunications technology • Role of regulators • Regulators should only set up the environment so that the market forces can guide direction, extent and pace of FMC 43
    • • Since the definitions of information, data and entertainment has changed the rules related to network and service providers should change accordinglyFMC impact on Service Providers and ConsumersEnabling voice communications over the same fixed networks that handle data transmissions, andconverging it with mobile cellular systems to deliver a seamless user experience, is by nowrecognized as a key strategic advantage by most service providers. Such service providers howeverrequire putting in place complex infrastructure solutions , creating and managing new handset andCPE programs, and often building new partnerships and alliances for infrastructure sharing, jointdevelopment, billing, and roaming. For those fortunate mega-carriers owning both fixed and mobiletelecommunication assets, there is the additional challenge to find the way to internally partner onnew services without harming the business of the other division. Finally, the need to put in place aworkable deployment and GTM strategy goes without saying.The approaches to solving these challenges – and the nature of the challenges themselves, for thatmatter- vary widely between service provider categories, market segments, and even geographicalareas and the competitive and regulatory landscape in which they operate. While the operators‘ultimate long –term goals are essentially similar, both the short-term motivation and the barriers toFMC deployment could not be more diverse.4. D.6) FMC SWOT ANALYSIS Mobile Operator Fixed OperatorImpact MVNO Traditional Mobile VOIP PSTN Cellular BroadbandStrengthsCost X XCoverage X X X X XCapacity X XConvenience X X X X XOpportunitiesQuadruple play X X X X XAccess to new X X X X XsegmentsNew services and X X X X X 44
    • applicationsNew business X X X X Xmodels andmarketsChurn reduction X X X X XWeaknessesComponents X X X X XcomplexityDifficult partnering X X XCannibalization X X XTechnology X X X X XimmaturityThreatsPrice erosion X XDiminishing needs X X X X XSubscriber inertia X X X X XWeak initial X X Xbusiness caseRegulation X X X X XOperator inertia X X X X XFigure 24: FMC SWOT analysis4. D.7) Offerings under FMC:  Reliance Communication‘s OneOffice Duo - India‘s first fixed mobile convergence solution, offering a nationwide VPN across Reliance Landline, Fixed Wireless and Reliance Mobile services.  Huawei: Leading the companys FMC initiatives is the new HG553 VoIP home gateway, currently available through Vodafone. The device combines a standard ADSL2+ Wi-Fi-enabled four port router with a pair of phone sockets for VoIP calling and a dockable USB mobile broadband dongle, giving the user a backup option of 3G data should the fixed-line service fail. Being removable means that the owner can take the mobile broadband service with them when necessary. 45
    •  Vodafone: Vodafone Germany was the first mobile operator in Europe to pioneer the home zone + DSL formula, and the resulting service (Vodafone Zuhause DSL) is a key component of the German operators At Home strategy, an integral Mobile Plus prerogative. In essence, this service encourages end users to cancel their fixed and broadband contract with their current provider in favor of a bundle of all-mobile home zone and Vodafones DSL, as provisioned through Arcor. Perhaps the most promising variant of this service is the Vodafone DSL Family offer. This service has three components. First is the Zuhause option for the mobile handset, which allows unlimited calling to fixed-line numbers when the caller is within the designated home zone. Second is a SIM-based fixed telephone for family use, complete with a fixed geographical number. Third is the DSL Pur broadband element, without the standard monthly charge for fixed-line rental. Orange: ‗Unik‘ - UMA-based FMC Service. The services (to be branded ‗Unik‘ in France and ‗Unique‘ in the UK and Netherlands) offer consumers a single device service, with a single voice mail, address book and sales and support channel. The service is composed of an Orange broadband subscription, an Orange LiveBox, and Orange mobile subscription and a choice of three applicable, UMA-ready handsets (Nokia 6136, Samsung P200 and Motorola A910), to be priced at the EUR 100 ballpark. BT: BT launched its all-in-one Wi-Fi, Bluetooth and mobile device in 2005 under the brand name BT Fusion Fusion aimed to be all services to all men: with one device, fusion customers can make mobile calls and fixed line calls, routed through a BT-provided and branded router and over a broadband connection. T-Com: T-One...T-One combines the benefits of fixed and mobile communications and unites them in one terminal. Having to decide between fixed and mobile communications is now history: With two different product options, T-Com enables using the novelty with a classic telephone line or as a DSL-based offer. In other words, it is completely irrelevant whether the customer goes for the classic fixed-network option or the DSL-based solution; the benefits of the convergence solution can be used either way: One line, one telephone, one voice mail box, one bill Telecom Italia: Product name ―TIM Unica‖ 46
    • 5.) Different facets of convergence:5. A) CONTENT CONVERGENCEContent convergence is about being able to do more with your content; reusing content from multiplesources, automating reuse in new ways, allowing users to choose only the content they want. After all,content is an asset that costs money to produce and maintain, so the more use organizations can getfrom their assets, the more value those assets have.Figure 25: Platform, technology and content integrationThree digital platforms, six categories of contentIndian Telecom market has been the center of growth for the Global telecom industry in the lastdecade and has witnessed major investments from the likes of top Industry players like Vodafone, 47
    • Uninor, and DoCoMo apart from several global PE/VC firms. With the success of smart phones andcontinued improvements in high speed broadband services operators are trying to open new revenuechannels by providing media-rich services to their existing customers. Services like music downloadsand video-on demand are already very popular in the market. Telecom players have also successfullyentered the digital content distribution market through DTH route. The first revenue model is theoldest in use and is now used extensively by telecom players. Telcos like Airtel and Reliance havestarted their own DTH services and are playing the role of content distributors.Figure 26: The value chain of digital contentBig TV*Anil Ambanis direct-to-home company, Reliance BIG TV is in discussions with foreign studios likeViacom, BBC, CNN and Fox studios to source high definition niche non-film content.Airtel* Has launched launch of the Airtel Digital Media Business. The creation of its Digital MediaExchange offers the industry, a secure digital distribution capability across multiple media platforms 48
    • International Telecom companies moving into content productionFrance Telecom- Its subsidiary Orange created studio 37 in order to access audiovisual contentfurther upstream than a simple Video- OnDemand broadcaster. Studio 37 is entering co -production offeature-length works; we will invest in 10-15 projects per yearTelecom Italia- Acquired Telecom Italia Media (or TI Media) to move into context space. It fouceson television production and broadcasting, Advertizing and other multimedia activitiesItalia- Launched first fill fledged mobile television channel LA3 devoted to broadcast livesports,news and entertainment. In just over two years from launch , over 10% of 3 Italias subscriberbase signed up for service and part of success can be attributed5. B) Service ConvergenceFigure 27: Service ConvergenceService convergence lets people connect simply to a wider number of services using a smaller numberof devices. The primary goal of service convergence is the concurrent delivery of all media types:-voice, data, and video--all to an easy-to-use graphical interface.With service convergence, the user experience will be the same independent of the device type used.Mobile, fixed, and IP phones will behave similarly. For example, a convergent service layer means: 49
    •  Group services such friends/family, group pick-up, automatic call distribution, etc, support all device types simultaneously  The same profiles for call restrictions and other supplementary services (call forwarding, call holding, call waiting, etc.) apply to all device types  A subscriber with several devices has only one voice mailbox  Rich services such as Ring-back tones/videos, distinctive ringing, and other personalization features  Location and presence information about all devices is available  Multi-service orchestration ensures the correct application of all of the services a user may contract  All services are provided by the service layer with no need for customer premises equipment such as PABX‘s Commercial convergence means the availability of  Multiple-play Bundling for Fixed+ Internet+ TV+ Mobile  Special call-type ratings such as Fixed numbers for mobiles, Home or Office Zone types of services, special tariffs for members of group services, and Prepaid-Postpaid convergence Network convergence means  The same service layer infrastructure is connected to both the CS and PS networks and enables devices connecting from either network to be part of the same services  The service layer supports both SS7 and Sigtran on the CS networks  CRM, personalization, provisioning, and billing convergence  Multi-Service provisioning orchestrationExample 1:- of service convergence would be for CSPs to offer a service that would enable theircustomers to take part in social networking using any device from anywhere. Moreover, customersnot only expect to be able to use the services from anywhere using any device, but they also expect tomove content/services seamlessly from network to network without compromising quality ofexperience.Example 2:- a phone call uses the cellular network when that is the only network available forconnectivity and uses the WiFi network when that is available in addition to the cellular network. Infact, the transition from cellular network to WiFi network happens seamlessly without interrupting thephone call. 50
    • Example 3:-video being watched on a small-screen cellphone in a train is seamlessly transitioned to alarge-screen TV set when the user enters home. This is an example of seamless mobility of content.While service convergence opens up unprecedented opportunities of offering novel value-addedblended services for the CSPs, it also makes the content providers worried that what used to beprotected content in their network may not be protected any more due to lack of a comprehensivesecurity solution spanning multiple networks.Figure 28: Before, Now & future of Service ConvergenceA.) Converged Services Approach for Wire line Service OperatorsCase Study 1:Integrated Converged Service Providers in USPlayers: SBC & Bell SouthQuad Play Capabilities: • Voice: Fixed line telephony via existing RBOC infrastructure • Broadband Internet: x DSL broadband internet via 51
    • • RBOC infrastructure • Wireless Mobility: Joint ownership of Cingular • Video: Announced partnerships through satellite service providers (Dish Network and DirecTV)Case Study 2:Telecom multi-service IPTV in EuropePlayers: France TelecomQuad Play Capabilities: • Voice: Fixed line telephony via existing infrastructure • Broadband Internet: x DSL • Wireless Mobility: Ownership of Orange • Video: IPTV through x DSL networkBenefits: • Integrated Standardization of services and user experience • Leverage of current telecom infrastructureChallenges: • Success of unproven technologies like IPTV • Inexperience in media services and distribution • No content provider relationships • Broadcast rights acquisitionB.) Converged services approaches for cable service operatorsCase Study 3:Joint venture converged service providers in US 52
    • Players: Sprint- Nextel, Comcast, Cox Communications, Time Warner, Advanced New HouseQuad Play Capabilities: • Voice: VOIP over broadband internet by cable service providers • Broadband Internet: Cable broadband by cable service provider • Wireless Mobility: Sprint Nextel‘s nationwide CDMA capability • Video: Broadcast video through cable service providerCase Study 4:Cable operator buys MVNO in EuropePlayers: UK cable operator NTLQuad Play Capabilities: • Voice: VOIP over broadband internet by cable service providers • Broadband Internet: Cable broadband by cable service provider • Wireless Mobility: MVNO acquisition Virgin Mobile • Video: Broadcast video through cable service providerBenefits: • Content service and distribution experience provided by cable service providers. • Faster time to market through existing infrastructure • Shared infrastructure development costs among service providersChallenges: • Customer relationship and business process integration across several organisations • Prevent possible dilution of their individual brands • Required large investment to roll out digital services 53
    • 5. C) Network ConvergenceNetworks will gradually evolve from circuit-switched, SS7-based architecture to packet-switched,IMS-based architecture. During the transition period, services will have to be provided to both typesof networks. There are two principal service layer strategies during the transition. One strategy is asegmented approach where a parallel service infrastructure is implemented on both networks. Theother strategy is a convergent approach where the same service infrastructure is used to provideservices to both types of networks.Segmented Service LayerIn a segmented model, the IN SCP‘s and IMS Application Servers are maintained separately.Eventually, the IN infrastructure will be decommissioned but there will be a period of several years ofoverlap. A parallel investment must be made and maintained in order to provide the same services onboth networks. In addition, a SIP Application Server with no interfaces to the CS network is unable toreuse the existing core network investment and is inadequate for FMS and FMC deployments.Convergent Service LayerIn a convergent model, a single service layer connects to both the CS and IMS networks. The sameinfrastructure provides the same services to both network domains and the features and capabilities ofboth network domains may be used in the implementation of the services. A convergent service layerhas none of the deficiencies of the segmented approach, and furthermore provides several advantages.  No parallel investment is necessary, but rather only one service layer needs to be maintained.  The existing core network infrastructure investment is fully leveraged and can be used to provide functionally rich FMS and FMC deployments.The connection with the CS core network has many technical advantages:  Service consistency is provided, because there is no dual provisioning or replication of subscriber data, and other configuration parameters such as the supplementary services settings (call forwarding, etc.) are retrieved directly from the source (the HLR).  The connection across the network boundary allows - Dual mode phones - Integration of mobile and IP subscription - Unique voice mailbox - Messaging inter-working 54
    •  Services for devices connecting from the IMS network we gain - Efficient roaming management - Location information - Access to subscriber data in HLR over CS network - Multi-ringing abilities - Interactions with IN services like Dual-Line and Multi-SIM are possibleFigure 29: Core and Access part in Network ConvergenceThere will be three key players in the emerging architecture:-  Access Service Providers  Connectivity Service Providers and  Application Service providers. 55
    • It may so happen that in some countries all of the above three domains may be owned by differentoperators and in some countries it could be a state owned operator controlling access andconnectivity. It is highly unlikely that applications will be monopolized.Now lets look at the roles of each of the above key parties in the convergent telecom infrastructure.Access service providers role is to provide error free reliable IP bandwidth to the end customers.Connectivity services provider in simple terms provide the AAA functionality; Authenticate the userbefore letting them into the network, Authorize them to use applications that they have subscribed andAccount and charge them for the service usage. In order to do this, connectivity service providershould configure the customer, should hold the customer profile; ensure connectivity to applications,rate the service usage, billing and collect the payment.Application service providers are the ones who develop, host and run the applications for variousConnectivity service providers.Connectivity services providers will offer Application service from various application vendors overvarious access channels. Connectivity service providers will own and bill the customers and settle hisaccounts in the back end with access providers and application vendors. Lets look at how it will looklike; your building will have copper and fiber termination by multiple Access service providers. Youcan subscribe services from a Connectivity service provider of your choice specifying one of theavailable accesses. Your Connectivity service provider will be offering you applications frommultiple Application service providers. You subscribe to your choice of applications. Your entirerelationship as a customer will be to Connectivity service provider.Managing partners, content and end-users:A real-time IP network allows network operators and their business partners to rapidly create andprovision new services based upon the lifestyle preferences of their customers. But this makes thingsmore complicated because operators not only have to manage the network but also the personalizationof the content that runs on the network. In addition, operators have to protect intellectual propertyrights.Billing:Converged services count for little if their value cannot be captured and billed. New business modelsrequire significant changes in billing and revenue sharing between network operators and theirpartners, a QoS imperative that is becoming a major differentiator. 56
    • Trends  Bandwidth demand is growing almost exponentially  Video is the major contributor, impacting both wireless and broadband networks  More spectrum will be needed for mobile networks; but also more efficient use of the spectrum; LTE is one of the answers  More network capacity will need to be deployed, but network economics will be very critical  Network optimization and backhaul / access optimization will be a major area of focus  Cloud Computing will be part of the answer – more on this later!  Also need better distribution of content , better allocation of processing between network and devices  Need better tools for policy management  Next phase of Internet, ubiquitously available, from any device, anywhere and anytime  HSPA, LTE technologies for wireless networks, Smartphones, browsers, Apps, and Services  Content is King, but content delivery is and will continue to be very critical as well; Content Delivery will be the ―King Maker‖  Advertising will be very important element of the new business models  Battles between Apps and Browsers  Battles for Smartphone Operating Systems  Pervasive and Trustworthy Network and Service Infrastructures, including virtualized infrastructures  Lots of room for innovation on both the technology and the business models – more on this later5. D) Device ConvergenceIt is clear that there cannot be a single unifying device given that users have different needs, but smartphones are a serious contender for voice plus multimedia services in a true mobility environment.Multiple air interfaces enable access over circuit- and packet-switched networks and SIP allowsservice and applications to traverse different IP networks.Mobile phone development has been rapid in the last decade, but new models will take increasedadvantage of technological developments. They will have enhanced color displays and higher qualityimaging, developments that are needed to support new services and applications. The explosion inmemory capacity and exponential growth in processing power will also allow smart phones toreplicate the applications currently employed in notebook PCs and PDAs. 57
    • Apple introduced Apple TV. It is currently focusing on streaming video content from the web to TV.Google announced Google TV in May and is trying to bring the entire internet to television, includingweb browsing. Samsung, which introduced Internet TV on several flat screens TV sets earlier thisyear, is taking the middle ground by focusing on web videos as well as cooking up little widgets thatcan give weather updates or news nuggets.Figure 30: Trends in Consumer technologyConsumer electronics and communications functionality are converging onto consumer devices. Forexample, laptops are being equipped with microphone, speakers, cameras and other consumerelectronics to enable new capabilities like telephony and video conferencing (using Skype, Yahoo!Messenger, GTalk etc.) across the Internet in addition to the traditional applications, such as Websurfing, instant messaging and e-mail. What used to be just a mobile phone a few years ago is today acamera, a video recorder, an MP3 player, an AM/FM radio, an electronic organizer, a gamingcontroller, a phone, a device for surfing the Web, a device for sending instant messages, and in somecases, a device for watching television. Consumers‘ ownership of such powerful handheld devicesopens the door for communications service providers (CSPs) to deliver a variety of content embodiedin text, images, audio and video to the end user. However, the fact that an end user can store thedelivered multimedia content and share it with the rest of the world with a single push of a button maylead to unprecedented illegal sharing of content, making it content owners‘ worst nightmare. Thus thebenefits of convergence come with challenges of security and privacy. 58
    • Figure 31: Device ConvergenceFigure 32: Control of ScreenSOME TRENDS  Smartphones are growing; 500Million Smartphones by YE 2009; most likely 30% of all handsets globally by 2012  Mobile Internet is the key driver for Smartphones; Internet Access in developing market will be primarily through mobiles & Smartphones will have a major role  Apple, iPhone and iTunes revolutionized the mobile world in the last 2 years  But Google and Android is coming strong; potentially major challenger to iPhone; giving more choices to users / operators;  Google‘s new Nexus One has several revolutionary elements  App Stores are a very critical element for Smartphone business  Smart edge – dumb pipe dichotomy; networks need to fight back  Network as a Service (NaaS) concept helping operators to regain / maintain services and fight back on the value chain battle 59
    • 6.) Demand of Convergence Total population covered was 72 and following are the observation 1. Currently which are the services you are using? Broadband using data card [ ] Broadband using landline [ ] Mobile services [ ] Landline [ ] DTH services [ ] Sr.no Service No. of users percentage 1 Broadband using 14 20% data 2 Broadband using 18 25% landline 3 Mobile services 66 93% 4 Landline 7 10% 5 DTH services 11 15% Landline DTH Broadband 6% services using data 9% 12% Broadband using landline 16% Mobile services 57%Figure 33: Survey figure 1 2. Are you aware of Telecom Convergent services? Yes [ ] No [ ] YES 59 82% NO 13 18% 60
    • No 18% Yes 82%Figure 34: Survey Figure 2 3. Do you like to get different services like DTH, Landline connection, Mobile Connection, Broadband connection using data card from the same operator if they provide converged services to you Yes [ ] No [ ] YES 61 85% NO 11 15% NO 15% YES 85%Figure 35: Survey Figure 3 4. What would you prefer : Single billing for all the different services you subscribe from a single provider [ ] Separate billing for each service [ ]Single billing for all the different services you 53 75%subscribe from a single providerSeparate billing for each service 18 25% 61
    • Separate billing for each… Single billing for all the…Figure 36: Survey Figure 4 5. Are you comfortable in conducting financial transactions on mobile device (device convergence)? Yes [ ] No [ ] YES 52 72% NO 20 28% NO 28% YES 72%Figure 37: Survey Figure 5 6. Do you wish to have all your mobile services available on your fixed telephone line? Yes [ ] No [ ] YES 38 72% NO 31 28% 62
    • NO 45% YES 55%Figure 38: Survey Figure 6 7. What is more important to you? Cost benefits [ ] Convenience benefits [ ]Cost benefits 33 46%Convenience benefits 39 54% Cost benefits Convenie 46% nce…Figure 39: Survey Figure 7 8. Are you aware of triple play and quad play services? Yes [ ] No [ ]YES 57 79NO 14 54% NO 20% YES 80%Figure 40: Survey Figure 8 9. Rate following services out of 5 in order to your willingness to get them (5 interested and 1 least interested) 63
    • a. Same operator for all different servicers you are using...(so that you can get benefits like same bill for all) [ ]b. ability to recharge your prepaid mobile from your landline account [ ]c. ability to recharge your prepaid mobile from post-paid mobile [ ]d. same number for your landline and mobile so that call can be routed to your landline when your cell is not in network or switch off [ ] 64
    • Figure 41: Survey Figure 9 What are the services you expecting from convergence?  M health, M commerce. Infotainment  Lot of mobility and one solution for every problem.. your mobile  VOIP, DTH on emergency service  All services which offer utility n value proposition..  Fixed mobile convergence  Triple play  Mobile TV  High video content  Bill Discounts, Convenience  seamless transition and convenience 65
    •  Convergent billing and bundled services would be the key drivers for con vergence.  Unique number per person  Completely unified communications..  Single universal device !!7.) Billing Vendors analysisCurrent Pre-paid vs Post-paid subscribers scenarioFigure 42: Current Pre-paid vs Post-paid subscribers scenarioAs we can see from above mentioned figures that 72% of mobile subscribers are pre-paid and28% are post-paid while ARPU from post-paid is more as compared to pre-paid. Henceoperators need single platform to deliver end to end services right from acquisition to billingfor both categories of subscribers. As post-paid subscribers are critical from high ARPU pointof view and pre-paid subscribers from volume point of view. 66
    • 7. A) Strategic future of BillingConsumers will show a good response if they are given immediate delivery of tailoredpackages demanded by them rather than pre-designed schemes by service providers. It ischallenging task for service providers to do so along with agenda of cost reduction. In orderto increase RMS (Revenue Market Share) and CMS (Customer Market Share) and decreasecost operators are trying to target pre-paid and post-paid customers simultaneously withsingle billing portfolio for both segments. This is portfolio of convergence where providerscan handle pre-paid and post-paid for any service or bundle of service in a single system.With passage of time some industry trends have been observed like merging of IT/Billingcompanies and IN (Intelligent Network) providers to achieve convergence concept.Diagram below shows difference between legacy networks and converged solutionFigure 43: Single System ConvergenceThere are 4 basic types of entities playing in convergent billing field  IT-based postpaid billing  IN-based prepaid billing  Mediation  Content infrastructure providers 67
    • Figure 44: Four worlds of Convergent charging & billing7. A.1) AmdocsAmdocs expert in customer management software vendor acquired Israel‘s Sigvalue in 2007,a provider of an integrated billing, customer care, and service control platform designed. Thelatest product of Amdocs in convergent billing domain is CES (Customer ExperienceSystem) 8. It supports the quadruple play. It provides end-to-end control of the digitallifecycle across all three screens (TV, computer and mobile device) and enables real-timeconvergent charging for any size subscriber base.Solution selling:Amdocs prefers the direct selling approach, it has increasingly been partnering with SIs tocapitalize on their local presence. Current partners include IBM, T-Systems, HP, Atos Originand Wipro.Amdocs Customers:BMCC (China), Excelcom (Indonesia), FarEastTone (Taiwan), Mobilkom (Austria), Si.mobil(Slovenia), Mobiltel (Bulgaria), VIP mobile (Serbia), Bité (Latvia and Lithuania), MagyarTelekom (Hungary), Mobily (Saudi Arabia), Wateen (Pakistan); for fixed-mobileconvergence Vonage (U.S.), True (Thailand). Multiplay Rogers (Canada), Elisa (Finland),Magyar Telecom (Hungary), Telus (Canada). 68
    • Amdocs CES 8:This product tries to reduce dependency on 3 rd party software using small scale architectureand low cost hardware. The heart of this product is Turbo Charging concept which providessuperior charging performance of both real-time (online charging) as well as batch (offline)events significantly reduces the hardware requirements by up to 70% when compared withtraditional rating and online charging implementations. It also provides graphical interface forany adding any new business logic rather than taking pains to change software. It uses openstandards like SOA (Software oriented architecture) that reduces the cost factor.Amdocs uses  Single, integrated inventory for both IT and network assets is made possible by Amdocs Resource Manager and Amdocs IT Manager  SOA-enabled architecture improves effciency and total cost of ownership  Enhanced Qpass Digital Commerce platform incorporates new storefront capabilities such as rich discovery, delivery, merchandising, payments and partner management  Amdocs In-Memory Object Store (AIMOS). AIMOS significantly reduces calls to the database and file-system resulting in faster data access and updates.  Event server and database server: JS 23 and JS 43  IBM storage systems used: DS 8300 and IBM XIV storage systemsFigure 45: Amdocs convergent charging 69
    • Figure 46: Amdocs convergent charging configuration With emerging market and new trends billing is not only becoming significant from pre- paid and post-paid point of view but also from multi play point of view and hence we have services like IPTV that we usually call as triple play (a combination of voice, video and data) and Mobile TV that we usually call as Quad play (a combination of voice, video, data and mobility). Now with increase and service requirements OSS role comes into play because it is the place where multi play business succeeds and fails as rating becomes more complex and entire system needs to respond faster. Figure below shows how much servers we need increasing subscribers and service complexity.Figure 47: Amdocs billing capacity & scalability With years of expertise and number of acquisitions Amdocs has prepared a single module for OSS/BSS which has entire functionalities covering each stage of customer life cycle. New and enhanced features of Amdocs’ CES 8 portfolio 70
    • [Source: Amdocs and Analysys Mason, 2010]Figure 48: Blue frame of CES 8Main features of OSS/BSS Modules:  CMDB Operational Product Pack - A complete package for supporting converged, next generation networks on an ITIL- compliant configuration management data base.  Platform enhancements including migration of all products onto a single (SOA- compliant)  Amdocs BSS Pack – Amdocs Business Support Systems Pack offers a customer management, ordering and billing package. It provides out-of the box functionality to support mobile, fixed and broadband business processes.  Amdocs Convergent Charging – Based on innovative Turbo Charging technology, Amdocs Convergent Charging lays the foundation for a single real-time charging architecture across prepaid and postpaid services to process and charge any type of event, regardless of network or payment method.  Compatible with upcoming technologies rollouts, including LTE, Carrier Ethernet and FTTx.7. A.2) EricssonLHS was acquired by Ericsson in 2007 to dominate in BSS domain. Total cost of deal was $420mn.Ericsson was already in pre-paid billing and mediation systems at that point of time. Main product ofLHS for convergence is BSCS iX. Ericsson‘s Charging & Billing In One product is providing bothTelecom based and IT based convergent charging and billing solution and is using BSCS iX. Ericssonsells its billing solutions both directly and with SI partners. 71
    • Solution selling:Ericsson can prime projects or work with its SI partners. Current partners include Alcatel-Lucent,Atos Origin, HP and Tech Mahindra.Ericsson customers:Major clients are Al-Madar (Libya), Digicel (Caribbean), Etisalat (Egypt), multiple implementationsin the Middle East and Africa.Figure 49: Blue frame of Ericsson’s/LHS BSCS iXThis solution is based on 5 layers:  Customer care layer: 360 degree view of all subscribers and services including self care  Billing layer: single bill for pre-paid, post-paid as well as quad play and triple play services  Charging layer: real time rating and immediate notification to subscriber. It has real time database  Mediation layer: bi-directional transport between n/w and service elements to reduce leakage  Session control layer: stop session as well as intimated users when balance ends or when credit limit is crossed 72
    • These are the 2 basic modules for convergent billing product: BSCS iX billing of LHS and chargingsystem of Ericsson are used in order to segregate session control, mediation, charging, billing andcustomer care.Figure 50: Internal Architecture of BSCSThese are different solutions and components:Solution Components and Partnerships  IN service control — Ericsson Charging.  Real-time rating — Ericsson Charging.  Voucher management — Ericsson Charging.  Account balance management — Ericsson Charging.  Policy management — Ericsson Charging.  E-commerce/m-commerce — Ericsson Charging.  Customer care — BSCS iX.  Billing/settlement — BSCS iX.  Others — EMM (Ericsson Multi Mediation), iX Collections (debt management), EMA  (Ericsson Multi Activation — provisioning).7. A.3) ComverseComverse has developed a lot in field of converged billing and customer management and came upwith a new converged product called Comverse ONE Billing and Active Customer Management byacquiring Kenan.Solution selling:Comverse sells both directly and with SI partners. Current partners include Accenture, Capgemini,HP, IBM, Tata Consultancy and Tech Mahindra. 73
    • Comverse Customers:Major customers are Gtel (Vietnam), Mobistar (Belgium), m:tel (Montenegro), MultiLinks (Nigeria),Orange Luxembourg, Play (Poland), Plus (Albania), Sotelco (Cambodia), Telenet (Belgium), Utel(Ukraine), UTS (Netherlands Antilles)Comverse ONE‘s innovative architecture helps eliminate redundant systems while providing a highlyoperable solution that is field-proven to reduce operating costs. See what you gain when you deployComverse ONE.  One Data Model: Removes complexity by unifying ordering, billing and customer care applications, eliminating integration points, speeding time to revenue and lowering cost  One Product Catalog: Maintains all offers and services in one central repository, streamlining product lifecycle management, especially the creation of new service bundles and promotions  One Convergent Platform: Supports any service, content, network and payment type, lowering operational costs and improving the customer experience  One Architecture: The single code base offers unified APIs to facilitate integration with third party applications or existing infrastructureDiagram below shows the different modules on One BillingFigure 51: Overview of Comverse Convergent charging & Billing 74
    • Various modules in the system can now be co-mingled or evolved into any of the four functionaldomains: real-time rating, promotions and session control; billing and financials; mediation, roamingand settlements; and active customer management, which includes self-service, customer managementand service fulfillment. This product integrates various billing capabilities into a single suite of billingand customer care solutions that works from a single data model and product catalog. In addition tosupporting pure-play prepaid, pure-play postpaid or hybrids of both, operators can also deployComverse ONE to support postpaid subscribers with real-time credit control; to support prepaidsubscribers with order management and customer care; or to support any combination of prepaid,postpaid and hybrid accounts.―Convergent real-time rating and billing uniquely gives us the ability to use one system tomanage all subscribers consistently, regardless of payment or service type, as well as acceleratethe launch of new offers and promotions,‖ says Telenet Executive Vice President Technology &Solutions Jan Vorstermans.7. A.4) Alcatel LucentAlcatel Lucent convergent billing solutions support real-time rating, charging and billing for wire line,wireless, data and video (quad play) services with an open suite of payment capabilities. It allowsservice providers to: (1) simultaneously offer prepaid, postpaid and hybrid real-time rating andcharging service packages for voice (circuit and VoIP), data, video and content/commerce, andsupport multiple networks including GSM, CDMA, NGN, IMS, GPRS, 3G, 4G/LTE and IP (2) offertheir customers innovative, flexible and context-specific real-time charging models providing easyand immediate payment options to further expand existing revenue streams tailored to individualmarket segments (3) enable cost controls for prepaid and postpaid subscribers to reduce bad debt (4)define customized loyalty programs to reduce churn and increase average revenue per user (ARPU).Solution Selling:ALU sells both directly and via system integrator (SI) partners. ALU can prime projects or work withits SI partners. Current partners include Convergys, Ericsson/LHS and Comptel.Figure 52: Overview of Alcatel Lucent Convergent charging & billing solution 75
    • Alcatel Lucent Customers :Major customers are KPN, O2, Orange, Orascom, Verizon Wireless and Vodafone.The Alcatel-Lucent 8610 Instant Convergent Charging (ICC) Suite is the key component of theAlcatel-Lucent Convergent Payment solution.Figure 53: Alcatel Lucent’s 8610 ICC modular S/W suite (Convergent billing product)The Alcatel-Lucent 8610 ICC Suite and its associated Convergent Rating Engine enableservice providers to be extremely flexible. Through its unique drag-and-drop decision tree-basedgraphical user interface (GUI), service providers are quickly able to mix and match tariff plans withproducts, bundles, discounts, promotions and telco usage based loyalty plans. Alcatel-Lucent 8610ICC Convergent Rating Engine (CRE) integrates a flexible on-line service creation environment.7. A.5) OracleOracle has developed its portfolio over years of experience and by important acquisitions likeeServGlobal (2010) — prepaid charging; Convergin (2010) — service broker; MetaSolv (2006) —fulfillment; Portal Software (2006) — billing.Solution SellingOracle sells both directly and via SI partners. Oracle can prime projects or work with its SI partners.Current partners include Accenture, Capgemini, Deloitte, HP, IBM, Infosys, Tech Mahindra andWipro.Oracle CustomersMajor customers are Vodafone (Spain), Saudi Telecom Company (STC) (Bahrain), BSNL (India),Iridium (U.S.), Atheeb (Saudi Arabia), TUS Mobile (Slovenia), Poste Mobile (Italy), Polsat (Poland),Telefonica (Mexico), Expresso Telecom (Ghana, Nigeria, Mauritania, Senegal), Tikona DigitalNetworks (India), Orange (Poland, Spain, Switzerland, U.K.), SRR (Reunion Islands), Telecom New 76
    • Zealand, Telecom Portugal, Antel (Uruguay), Hutchison CP Telecom (Indonesia), Two DegreesMobile (New Zealand).Oracles convergent charging and billing solution includes multiple products to provide a completeend-to-end solution, depending upon the service provider profile: Siebel CRM, OracleCommunications Billing and Revenue Management (BRM), Oracle Communications NetworkCharging and Control (prepaid charging), and Oracle Communications Service Delivery Platform.Figure 54:Overview of Oracle Convergent charging & billing solution  This combination delivers full charging combination  Pre-paid, Post-paid and convergent charging  Implemented for mobile, fixed and NGN  Open, highly configurable and easily integrated7. A.6) Intec:Intec is world-class leader of real-time charging for prepaid services and postpaid billing withfull converged services - from a single platform, for all their services.Solution Selling 77
    • Intec sells both directly and via SI partners. Intec can prime projects or work with its SIpartners. Current partners include Accenture, CSC and Wipro.Intec CustomersMajor customers include Hutchison 3G (Australia, Austria, Denmark, Ireland, Italy, Sweden,U.K.), Telecom New Zealand.Most dominant product of Intec in convergent market is Single.eView. Singl.eViewConvergent Billing covers every imaginable option from convergent service bundling torevenue share. It works in both real time mode as well as in batch process mode.Entire solution portfolio is divided into 6 major functions: Rating, billing, receivablemanagement, financial reporting, customer acquisition and management, product sales.Figure 55: Overview of Intec Convergent charging & billing solution 78
    • Basic 3 modules used in Intec‘s product are:  Convergent billing  Customer management  Commerce engine―A key measure of the success of the billing project was the customer reaction. Theimplementation went so smoothly that there was no disruption to customer services at allwhen the change over occurred.‖ TCNZ Telecom New Zealand CIO Mark Ratcliffe7. A.7) Convergys:Known for rating and billing convergent services in a cost-effective manner, its revenue managementsolutions provide an unprecedented implementation success rate, low latency, high availability andthe flexibility to meet todays challenging business model needs. Convergys billing solutions enablestelecom billing systems to deployment structure that is less hardware intensive and adaptable formultiple business models.Solution SellingConvergys sells both directly and via SI partners. Convergys can prime projects or work with its SIpartners. Current partners include Alcatel-Lucent and Logica.Convergys’ CustomersMajor customers include Hutchinson 3 (Indonesia) (real-time mediation from Openet), Telkomsel(Indonesia) (partnership with NSN), Crazy Johns (Australia) (partnership with NSN), nTelos (U.S.)(mediation from DigitalRoute, eServGlobal SCP), T-Mobile and WildBlue (U.S.).Convergys convergent charging and billing solution is called Convergys Rating and Billing Managerfor Real Time Convergent Charging. Main features of solution are  Centralized charging, both online and offl ine, for any service delivered across any network or medium  Per event or subscription-based charging  Multiple payment methods  Network-grade performance 79
    • Figure 56: Overview of Convergys’s Convergent charging & billing solutionConvergys solutions are for better business billing systems that allow for hybrid accounts such as pre-and post-pay and separate personal and business billing within the same account structure. Rating andBilling Manager provides a single platform for online and offline convergent charging, streamliningoperations and rating to support the demands of complex next generation services. With a ratingthroughput of up to 100,000 complex events per second, Rating and Billing Manager scales to meetall convergent BSS requirements and up to 60 million customers with five 9‘s (99.999%) reliability.―There is an increasing desire to separate mobile services from the payment method. Convergyssolution consolidates our pre- and post-paid customers in a way that allows us to offer them the sameservices at the same time. We recognized the value of having Convergys as a long-term strategicbilling partner. Project paid me back in the same year we deployed‖ Arman Hazairin VP - InformationTechnology Telkomsel7. A.8) Huawei:Huaweis convergent billing solution is built on Huaweis many years of experience in Application &Software (A&S), especially in real-time charging and offline billing. Since releasing its first INproduct as early as 1996, Huawei has served 300 million users of real-time billing service around theworld. In the BSS space, Huaweis OSS (Operation Support System) for 2G and 3G networks, nowwidely used worldwide.Solution SellingHuawei sells both directly and via SI partners. Huawei can prime projects or work with its SI partners.Current partners include IBM, Accenture and Tech Mahindra.Huawei Customers 80
    • Major customers are China Mobile (multiple divisions), China Telecom (multiple divisions), AIS(Thailand), Etisalat (Nigeria), CTBC (Brazil), Sudatel (Senegal), STC (Bahrain, Saudi Arabia,Kuwait), Visafone (Nigeria), Syriatel (Syria), Access Communications (Malawi), Telkom (SouthAfrica), Gadu-Gadu (Poland), Shyam (India), Telmax (Peru), MTN (Cote dIvoire, Cyprus, Yemen,Zambia), NTS (Indonesia), Dialog (Sri Lanka), BSNL (India), ICE (Costa Rica), Viettel (Cambodia),Claro (Brazil), KPN (Netherlands), Globe (Philippines), Wana (Morocco), Mattel (Mauritania), LTC(Laos), SFR (France), Smart (Philippines), Cell C (South Africa), PCCW (Hong Kong), Safaricom(Kenya), Celcom (Malaysia).Huawei convergent charging and billing product is Convergent billing solution (CBS).Figure 57: Layers in Huawei’s CBS (Convergent billing solution)Here convergent real time rating supports Online charging solution (OCS). OCS system consists offunctional modules such as the adaptation layer, real-time billing engine, rating policy, and real-timetransaction processing and system management. This enables the OCS system to adapt to complexnetworks and converged networks, services and subscribers.Functional aspect of CBS can be explained with help of diagram.Figure 58: Overview of Huawei’s Convergent charging & billing solution 81
    • Huawei CBS is the convergent billing solution based on the next-generation independent rating andbilling engine. Through the CBS provided by Huawei, operators can construct horizontal and opennetwork architecture. The solution can support various infrastructure networks and services, and serveall end users no matter prepaid or postpaid. Huawei can provide the end-to-end CBS, includingservice control and collection, rating and billing, customer care, and more. Huawei can also provideadaptive products according to the status of operators networks, capable of integrating with third-party systems.7. A.9) ZTEZSmart cvBS is a truly convergent system to support multiple networks, services and prepaid/postpaidmodes. ZSmart cvBS features are shown in diagram below.Figure 59: Features of ZSmart of ZTE 82
    • Solution Selling:ZTE sells directly and implements projects independently and don‘t use any partners.ZTE Customers:Major customers are Viettel (Vietnam), TMIC (Cambodia), GPTC (Libya).ZTEs convergent charging and billing solution is called ZSmart cvBS (ZSmart convergent BSS).Figure 60: Overview of ZTE Convergent charging & billing solutionSince 2004, ZTE started OCS development. ZTE ZSMART cvBS(Convergent Billing Solution) is co-developed by ZTE Any service VAS R&D team and ZTE BOSS R&D team, both of them have aproven track record in their respective fields. ZTE ZSMART cvBS is undergoing wide applicationsglobally, bringing revenue for many operators. The nature of ZTE ZSMART cvBS is to separateservice control and billing control, and provide uniform data/voice/content/event online chargingplatform and uniform subscriber data for both postpaid and prepaid subscribers. The core-competitiveness for telecom industry is service. The online charge solution brought forward by 3GPPunchains the bondage from technical field which prevents operators from services market promotingto all customers.As the quick spread of 3G services globally, a lot of operators deployed OCS solutions or areconsidering deploying it. ZTE ZSMART cvBS is an unavoidable necessity for the development oftelecom industry. With the integration of CRM and traditional billing system, ZTE ZSMART cvBScan be evolved as Convergent Business Support System (CBSS). This evolution will greatly improvethe service and management of telecom operators. 83
    • 7. A.10) Nokia Siemens NetworkNSN gives a single view of your customer, prepaid and postpaid. Nokia Siemens Networks unifiedcharging and billing solution helps make your business independent of payment methods.Solution Selling:NSN sells both directly and via SI partners. NSN can prime projects or work with its SI partners.Current solution partners include Cerillion, MetraTech, MoreMagic, OpenCloud (NSN is also aninvestor) and Comviva.NSN Customers:Major clients of NSN are Smart (Philippines), Vodacom (Tanzania), Tunisiana (Orascom). It hasmore than 10 integrations with other solutions for a convergent solution such as Idea Cellular (India).NSN‘s convergent billing product is NSNs is called the Unified Charging and Billing Solution and isbased on NSNs charge@once unified suite.Figure 61: Overview of NSN Convergent charging & billing solutionThe Nokia Siemens Networks‘ solution uses a two-layer approach to simplify and consolidateexisting, scattered charging and billing data into a unified system that transforms your ability toprovide fast, flexible services to your customers. The two layers are:Telco layer– which consolidates the telecommunications specific charging and billing functions.Enterprise layer – which sits above the telco layer and provides customer care and financials. It caneasily be extended with additional customer relationship management (CRM) and enterprise resourceplanning (ERP) functions. 84
    • 7. A.11) Parameters for vendor selection There are various parameters that are taken into considerations while selecting a vendor. Some of the parameters are mentioned below:  How easily service provider can migrate from one vendor to another without disturbing current subscribers  Will the old vendor will serve the customer during migration period.  Technical features/characterisitics  System performance  System capacity  Fault diagnosis  Upgradability of software/hardware  System security features  Operating costs  System redundancy  Maintenance  Compliance to international standards  Interoperability with other systems  Ease of configuration  Customized report generation Some of the company specific parameters that make any vendor suitable are mentioned in the table below:Feature/Compa Alcatel Amdoc Comverse Covergys Ericsson Huawei Intec NSN Oracle ZTE ny Lucent s IN service Native Native Native Partners Native Native Partners Native Native Native controlReal Time rating Native Native Native Native Native Native Native Native Native Native Voucher Native Native Native Partners Native Native Native Native/P Native Native Management artnersAccount Balance Native Native Native Native Native Native Native Native Native Native Mgmt Policy Native Native Native Native Native Native Partners Native Native Native Management E-commerce Native Native Native Native Native Native Partners Partners Native Native MgmtCustomer Care Partner Native Native Native Native Native Native Native/P Native Native s artnersBilling/Settleme Partner Native Native Native Native Native Native Native/P Native Native nt s artners Others Mediati Product Mediation Mediation, Mediatio Mediati Mediatio Mediatio Control None on, catalog, , Campaign n, on n n Plan Usage Docum Campaign Mgmt(OEM) Debt Provision editor, control ent Mgmt, Product Mgmt, ing Service Design, Catalog, Provision Broker, Resourc SFA(OEM) Collection, ing Conver e Mgmt , eShop, Inventory, ged app Channel Field Service Server, Care, Mgmt, CRM Service Roaming Ordering Gateke Appointment eper Figure 62: Critical parameters for billing vendors 85
    • 8.) Unique IdentificationThe Unique Identification Authority of India (UIDAI) is an agency of the Government ofIndia responsible for implementing the envisioned Multipurpose National Identity Card orUnique Identification card (UID Card) project in India. It was established in February 2009,and will own and operate the Unique Identification Number database. The authority will aimat providing a unique number to all Indians, but not smart cards.The UID will link a persons Passport Number, Driving License, PAN card, Bank Accounts,Address, Voter ID, etc and all this information will be checked through a database. So, forexample, if someone has different addresses on PAN and driving license, is liable to getcaught. Those who will opt out of this program will have much inconvenience in doingbusiness, operating bank accounts and other offices which will require a UID.UIDAI has headquarters in Delhi and a technology centre in Bangalore. It also has 6 regionaloffices in Chandigarh, Delhi, Lucknow, Ranchi, Guwahati, Mumbai, Hyderabad andBangalore.8. A) UID: Ease of implementationA Unique Identity BillThe project pegs its legitimacy on what it will do for the poor. It promises that it will give thepoor an identity, with which they may become visible to the state. The UID number isexpected to plug leakages, including in the Public Distribution System (PDS), ease paymentsto be made under the National Rural Employment Guarantee Scheme (NREGS), and enableachievement of targets in consonance with the right to education.The operation for being invested with an identity goes through stages: enrolling with aenroller/registrar who will set down the basic biographic details such as name, address,father/guardian‘s name (and UID number), mother‘s name (and UID number) and collect thebiometrics – photographs, all 10 fingerprints and iris scan, de-duplication (which will be doneby the UIDAI to make certain that there is one identity for one person), updating the databasewhenever any change occurs in relation to the information on the database (for instance,when there is a name or address change, the responsibility for which will rest with theindividual). 86
    • The UIDAI has said that getting on to the UID database is voluntary. That is, it is clarified;there will be no compulsion from the UIDAI. The UIDAI has been signing memoranda ofunderstanding (MOUs) with a range of agencies including banks, state governments and theLife Insurance Corporation of India (LIC) to be ―registrars‖.ConvergenceConvergence is a predictable and inevitable consequence of the UID project. Convergence isabout combining information. There are various pieces of information that we hand over to arange of agencies when buy a railway ticket, maintaining a bank account, registering in auniversity, getting work at an NREGs worksite, taking out an insurance policy, buying amotorcycle, paying telephone bills, etc. Currently, with only the name and a possibly correctaddress, it will not be easy to profile a person or track them.The objective of the Unique Identification Authority of India (UIDAI), constituted in January2009, is a simple one: to issue a unique identity (UID) number for every resident in thecountry. The impact of this initiative, however, goes to the heart of our development agendatoday. The UIDAI will fill a significant gap that has existed in our regulatory infrastructure.India has long lacked the identification infrastructure that is in place in countries around theworld. The absence of this in India has been one of the biggest barriers that the poor face inaccessing welfare and social services effectively, as it increases costs and effort ofidentification as well as the risk of duplicates.Sharing of InformationThe UID database is not what makes convergence of information possible this is fullypossible, even today, without Aadhaar. Mobile numbers, PAN card numbers and passportnumbers can all be used to profile, identify and converge data on individuals by agencies.When it comes to sharing of data, the UIDAI is of the view that the individual is an active,not a passive participant, and does not need self-appointed spokespeople to debate on theirbehalf. A strong data protection law would ensure that data sharing when it is done is donewith the consent of the individual. Such a law would also give individuals the space andsecurity to choose the information they keep private, according to their own needs. 87
    • 8. B) Benefits to operatorThe Unique Identification Authority of India (UIDAI) plans to harness the customer base ofbanks and mobile phone operators in its mammoth task of issuing a single, universal identitynumber to all Indian residents.Likely costIt is early days yet and the technology architecture of the UID project is based on some high-level assumptions. But back-of-the-envelope calculations indicate that the cost of theprogramme could run upwards of Rs 15,000 crore. If we add to that the security software thefirewalls, fraud detection software, intrusion detection systems, encryption solution and therest we get a picture of what is involved. After all, a data-centre that contains demographicand biometric information of all residents is bound to draw hackers by droves. Analystsexpect this entire IT infrastructure at UIDAI‘s end to cost a ballpark Rs 5,000 crore. And thisis just the IT back-end component of the project.The larger expense will go towards the front-end IT systems. The enrolment agencies thatpartner with the UIDAI will reach out to residents through thousands of centres across thecountry. Each centre will have to be equipped with personal computers, connectivity,enrolment software, fingerprint readers, iris scanners and cameras. An easier approach,therefore, will be assuming an enrolment cost of a maximum of Rs 75-80 per person abenchmark that UIDAI itself seems to be veering towards that means that the totalinvestments needed for 1.2 billion residents could easily run up to Rs 9,000-10,000 crore, atthe front end.Huge opportunityNaturally, the project promises to create an IT opportunity never seen before in the domesticmarket. As it is, during the current fiscal ended March 2010, the domestic IT market isprojected to grow 15-18 per cent outpacing the IT export growth rate of just four-seven percent (export performance is expected to be subdued due to the slowdown in large marketssuch as the US and the UK). There are two parts of the UID project – Issue of uniqueidentification number and authentication services for verification of records. This means thatafter a number is issued, the record would be maintained in a database which can be fetched 88
    • online anytime. This is a huge task and the huge opportunity has caught the interest of manycompanies including Microsoft, Yahoo and Cisco.Few applications that the developers can work on:  mGovernance – There is a huge potential for developers in the area of Governance. Applications can be developed to enable users to fetch land records, court case records, health records, etc. after proper authentication of the user. Open APIs from UID project can be embedded in the application for this purpose. Recently, addressing the community of developers, D Shivakumar, MD, Nokia Mobile phones and VP, Nokia said, ―Government will be a major player in buying applications from the developer community‖ and urged developer community to think and build innovative applications, which will help government to implement in different sector.  Micro-Finance Institutions provide loan to poor people to help them overcome poverty but themselves lack the basic productivity tools. This results in high administration costs and ultimately high interest rate for the borrower. Simple applications can be build with authentication mechanism to enable the money collectors to directly upload the data on collections.  mEducation – Education is the biggest need of the country and its a big role for mobile phones in imparting education and right skill-sets. Developers can work with the content providers to develop an application that enables authentic users to learn and appear in the examination.  Mobile Banking and Commerce – This is yet another upcoming area that has huge potential but is most susceptible to fraud. Biometric authentication would go a long way in convincing the users and giving them the peace of mind. Again developers have a great potential here.Global Scenario on AuthenticationTo put the entire opportunity in context, it is important to look at the Global Market Size forauthentication products and services. A report by Goode Intelligence forecasted that mobilephone-based authentication products and services will generate $153 million in 2010 and thatthe market will grow to almost $760 million in revenue by 2014; an increase of $607 million.As per the report, the market for fingerprint sensor chip alone is expected to grow from $40million in 2008 to $428 million by 2013.The mobile phone with biometric authentication 89
    • would be increasingly demanded by enterprise users so that data is safe. Biometric sensors onmobile phones not only protect private data stored on the device, but also can blockunauthorized use of mobile phone services, create personalized user interface shortcuts, andeliminate the need for remembering and typing passwords.Devices ReadinessThe biometric includes fingerprints, iris and voice but currently the fingerprint sensors are themost popular form on mobile phones. The cost of adding finger print module to a mobilehandset is less than $10 and with economies of scale, it would come down even further. Thebiometric authentication phones are not available from the big handset vendors like Nokiaand Samsung and if the big brands can come on board, the cost of biometric sensor wouldcome down significantly.Atrua Technologies is the largest provider of fingerprint chips for mobile phones with otherproviders being Fujitsu, Authen, Atmel and UPEK.8. C) Benefits to CustomerThe biggest benefits for Identity proof, no one can claim to be other person withoutcorrelation to UID. It‘s like a Credit Card holder whose full name could be common withhundred others but the card number is unique to that person. One tends to get a sense ofsecure belonging to a Nation with such vast population and common names and surnames.Identity theft and other frauds such as Credit worthiness, inter-state frauds etc could beminimized to large extent. But this could happen only when there is full synergy in sharing ofinformation between Central and State Govts. and should be completely automated andonline. Having UID is big task by itself, but ensuring its effective usability is even moreimportant. Let me give a small example, a person in one state could defraud a loan in currentsystem and go to another state and open another different bank account, put in a small depositand draw up fully on his overdraft limit and vanish again until the law catches up him. WithUID, if we implement a system that has an option to reach out to a centralized repository thatis legally authorized to share relevant information about the person when requestedlegitimately by a required agency (Govt. or Private) would go a long way in having bettersafety nets against frauds. 90
    • Citizen identity management in IndiaThe Government of India has undertaken several efforts to provide a clear identity to themajority of residents. First in 1993, the Election Commission issued photo identity cards.Subsequently, in 2003, the Indian Government approved the Multipurpose National IdentityCard (MNIC). The initiative which came closest to intent was that of the Permanent AccountNumber (PAN), issued by the Income Tax Office for the purpose of tracking income andincome tax. It has now gained awareness and use as a means of identification for activitiessuch as getting a utility connection but predominantly in urban areas. However, for themajority of citizens there is no formal national identification scheme or number at present.Leveraging existing identitiesThe intent of e-governance is to accelerate the existing processes by automating the same andmaking them accessible to the end-user. The part of making the processes accessible to theend-user is at a nascent stage in the majority of the cases. However, this aspect, if coupledwith interdepartmental information sharing, has the potential to transform the performance ofthe process. To channel the interdepartmental information exchange, identity managementacross service providers is a key requirement. Such an exchange of information has to bebased on identity mapping. Federated Identity Management is the avenue that leads to thisgoal.The benefits of Federated Identity Management include:  Simplified integration between one department and other department‘s database  Improved business compliance by helping reduce security exposure  Improved end-user experience through extended single-sign-on  Expanded business reach for service providers by creating new revenue generating opportunities  Simplified security administration in cross-enterprise business processes by delivering security as a service  Delivery of policy-based integrated security management for Web services.Creating a circle of trust 91
    • The various IT systems across service provider departments have identity data for users onthe basis of which the services are extended. As a first step, developing a utility to extend theidentity and thereby access to the database between service providers initiates the informationexchange. The providers can control the same by giving the end-user an option to link theiridentity with a provider to another provider. Such a mechanism can lead to the creation of acircle of trusts amongst security domains of different entities. For example, there aredepartments such as Regional Transport Offices and Passports which have gathered thebiometric data of users over the last 5-6 years. This data too can be leveraged to generate aGlobal Unique Identifier for every identity link created.Here are some examples of information exchange through interoperability (refer to the tableInformation exchange through an interoperability solution). The information exchangedepicted can happen only once the identity is mapped using federated functionality under adefined circle of trust. Information exchange through an interoperability solution Department Information exchange Dependent deparments Regional Transport Vehicle accident data Police Office Vehicle insurance data Insurance agencies Claim details information MTNL Owner Details (address) Electricity Dept Municipal Corporations Property record City survey Owner identity MTNL Electricity Dept RTO Insurance agencies 92
    • Department of Stamps Property details City survey Corporations Owner details MTNL Electricity Dept RTO Electricity Dept Information for new Corporations connection City survey Owner details IGR MTNLFigure 63: Information exchange in UIDAIThe journey ahead—miles to goAs a part of the program, the UIDAI will be engaging with a variety of agencies and serviceproviders to enrol residents for UID numbers and verify their identity. The enrolment isproposed to be demand driven. As part of this process, the following demographic andbiometric information will be captured in order to issue a UID number:  Name  Date of birth  Gender  Father‘s name  Father‘s UID number (optional for adult residents)  Mother‘s name  Mother‘s UID number (optional for adult residents)  Address (Permanent and Present)  Expiry date  Photograph  Fingerprints 93
    • The resident citizen is expected to submit his or her information to the enrolling agency withsupporting documents. This information will be verified according to established Know YourResident (KYR) standards.Likely benefitsIndia being the most populous country in the world, the UIDAI has a challenge on its handregarding the implementation on account of its sheer scale. The enrolment run-rate isanticipated to have a peak load of one million enrolments per-day in the first year ofoperation. In order to streamline the enrolment process, the UIDAI has drawn up plans towork with departments such as the Income Tax PAN system, Public distribution systemfollowed by ration shops and use banks as citizen touch points. There are still more ITsystems in departments such as district administration, state finance and school educationwhere the basic data required for UID creation exists within the system. The citizen desires tohave option of choice of agency for enrolment which can be extended through the variety ofdepartments within the government. The likely outcome is a set of wide ranging benefits:  Option for citizen to enroll at the agency of his or her choice  Acceleration of enrollment process and population of central database of UIDAI  Creation of common information pool across agencies as added information depending on the citizen‘s preferences  Effective use of existing data with biometric inputs in urban areas from departments such as transport and home which is available with other basic information of the citizen required for UID  Generation of quality MIS reports to help the administration on meaningful interpretations and to prepare action plansAs we progress towards maturity of e-governance, there is a need for provisioning IT enabledservices in urban governance along with an adequate level of synergy amongst all ITinitiatives and plans for other projects of a catalytic nature i.e. low effort–high benefit underthe NeGP for which the UID project will be a driver. 94
    • 9.) REGULATORY ISSUES OF CONVERGENCE9. A) INTRODUCTIONThere is no standard definition for convergence. In simple words convergence is  The ability of different networks user equipments to cater to similar services  The ability of one network and user equipment to carry different services.Services like Voice over IP (VOIP), IPTV, and Mobile TV can be provided through convergence.Hence telephone, data/internet and media (TV and Radio) will be available on one device say a PC ora cell phone. The Internet Protocol (IP) provides a common network platform for voice, data andvideo signals for transmission over a packet switched public network.These services have destroyed the boundaries between services such as local, national andinternational long distance. VoIP is the biggest challenge to the current telephony over PSTN that hasaffected the level playing field for basic service providers by ISPs and has already given rise todisputes in some countries, due to the present service specific licensing regimes.BENEFITS AND CHALLENGES OF CONVERGENCE  Promotes competition –allows the operators and consumers to derive full benefits of technology directly with no regulatory restrictions  Encourages development of increasingly efficient technologies and services  Results in lower costs  Enables custom made service packages to suit consumer needs  Challenges the existing regulatory framework  Increases regulatory responsibility: 1. with regard to monitoring and enforcement of existing license conditions 2. by the addition of several new technologies and accompanying proliferation of delivery mechanismsBENEFITS OF CONVERGED REGULATORY FRAMEWORK  Telecoms being a structural cost for all businesses the economic effects are enormous.  In the current globally competitive marketplace, enables effectiveness of the companies.  New framework should eliminate old boundaries as broadcasting; telecom and IT are getting evermore closer and interconnected.  A solution, addressing all key areas is needed to ensure that all the benefits of convergence and advanced services are obtainedIMPACT OF CONVERGENCE- KEY ISSUESConvergence raises basic policy and regulatory issues and has impacton mainly the following:  Licensing regime  Interconnection regime  Costing and Tariffs  Spectrum management  Numbering  Consumer protection  Public policy: universal service obligation  Broadcasting regulation 95
    • 9. B) LICENSING REGIMEFor convergence it is very important to have a converged licensing framework. Many countries haveadopted the converged licensing regime. It is important to implement technology neutral license withbroader service categories and establishing a unified that is service neutral and technology neutrallicense that allows operators to provide multiple services under one license using any kind oftechnology. India is taking progressive steps in the direction of unified licensing and now it is beingimplemented by TRAI. The process is not complete yet but in the near future there will be a scenarioof unified licensing in India. VoIP convergence in particular has rendered most technology based andservice based licenses obsolete. So it has become very essential to reassess the practice of licensing inthe new market environment. With this a unified license operator could use the same transportnetwork (IP) for its fixed voice, mobile telephony, and broadband. This will ease the migration to nextgeneration network and reduces the network and operational complexity resulting in better, bettercustomer provisioning and greater service bundling. It is very important to get answers to a fewquestions like ‗how can we move to converged licensing framework without benefiting eitherincumbents or new market entrants?‘ and ‗if new and existing participants are less tightly licensedhow the regulator can ensure that the public interest is appropriately served?‘Licensing frameworks traditionally consisted of a large number of different service categories, andapplicants applied for separate licenses in order to provide each service. In addition, licenses wereoften granted based on the type of technology that was being offered by the applicant for e.g. VSATlicense.Convergence has had an impact on this categorization and made it complicated for regulators tocontinue to grant licenses in this manner. For example, a cable television operator intending toprovide ―triple play‖ services generally would require three different licenses, one for each of thebundled services like broadcasting, voice and data instead of one single license. Countries have beenmodifying their licensing frameworks to address this new situation by simplifying their licensingregimes. This has been primarily implemented by: 1. introducing technology-neutral licenses withbroader service categories; 2. establishing a unified and technology-neutral license that allowsoperators to provide multiple services under one license using any kind of technology; 3. ―de-licensing‖ whereby the operator merely needs to submit a notification or registration with theregulator, although specific rights of use may be required when scarce resources such as spectrum ornumbering are involved in the provision of a service or 4. Not requiring any registration ornotification on the basis that the services provided fall outside of the regulator‘s authority or becausethe regulator has decided to forbear from regulating a particular service.These modifications may not be sufficient to fully address convergence if they are not supported byrelated measures in the regulatory framework to introduce competition and non-discrimination. Forexample, in many jurisdictions, cable television operators, which were initially licensed to providebroadcasting services, can provide voice and data services without any specific restriction. On theother hand, traditional telecommunications operators may not be allowed to compete with cableoperators if broadcasting service licenses are restricted. In this case, the lack of reform in broadcastinglegislation becomes a bottleneck that restricts competition and discriminates againsttelecommunication operators.The modification of the licensing regime may not be an easy task for policy-makers and regulatorsbecause of the existing legal framework and market structures already in place. However, necessaryreforms may be introduced through a transition process in which market and legal structures aresmoothly adapted. A regulator can undergo following steps in transition to technology neutrallicensing regime. 1. Deciding which model of licensing will be adopted. 96
    • 2. Deciding whether the existing licensing framework will be overhauled in one step or through a gradual, phased in fashion. 3. Deciding which entity or entities will be responsible for licensing, authorizations, and notifications. 4. Mapping various services licensed under a service or technology-specific regime to a less burdensome licensing regime a. This includes deciding which services may still be subject to licensing, which may require only an authorization or notification process and which may become unlicensed as well as eliminating any geographical licensing restrictions and redesigning the application process. 5. Ensuring a level playing field under the new licensing regime so that neither existing service providers nor new market players will be at a competitive disadvantage, i.e. whether existing licensees will require any compensation for moving to the new licensing regime or whether the transition can be accomplished in the absence of compensation; how to address issues such as large license fees paid during a period of limited competition while reduced license fees apply in the new regime, changes to bank guarantee policies, etc. 6. Revising existing universal access/service regulations, including modifications to network rollout, coverage or investment requirements as well any contributions to universal access funds and reviewing which services consumers should be provided under the nation‘s universal access/service definition. 7. Reviewing and updating other regulations such as quality of service, interconnection, spectrum and numbering, both to transfer any such regulations currently included in license terms and conditions to stand-alone regulation as well as updating such regulations to accommodate convergence. 8. Developing a regulatory framework that incorporates recent technological developments, such as WiFi, VoIP and WiMax and anticipating a continuous technical and market evolution. 9. Developing regulatory capacity to regulate disputes, enforcement and sanctions.1. GENERAL LICENSE CATEGORIES AND TECHNOLOGY NEUTRALITYThe first trend in licensing reform is to introduce technology-neutral licenses that combine convergedservices or broaden the types of services that fall within one license. Malaysia, the prior licensingframework consisted of 31 service-based licenses, whereas its new framework consists of four generaland technology-neutral licenses: Network Facilities Provider (NFP); Network Services Provider(NSP); Application Services Provider (ASP); and Content Application Services (CSP)(a specialsubset of application services that includes television and radio broadcast services and Internet contentservices).2. UNIFIED LICENSINGA second trend is the introduction of a unified licensing regime, in which licenses evolve into a singlelicense covering a wide range of services. This approach has been or is being adopted by variouscountries. The Telecommunications Regulatory Authority of India (TRAI) has also adoptedrecommendations for its future licensing framework in order to introduce a unified license regime. Itproposes to implement three different categories of licenses (i.e., unified license, class license and,simple authorization), with a unified license allowing an operator to provide any kind of service.3. DE-LICENSINGA third trend is the movement in certain countries towards lighter licensing regimes or de-licensing.Traditionally, many countries used three general approaches to authorize telecommunicationsnetworks and services -- individual licenses, class licenses, and open entry. In the initial phase of 97
    • liberalization in particular, countries leaned towards a higher degree of regulatory control over marketentry, thus requiring individual licenses in most cases, where: 1. there was a need for access to publicproperty and/or locations of public use and/or third party‘s properties to roll out the networks (i.e.deploy a base station or a fibre network); 2. There was a need for scarce resources (e.g. frequenciesand/or numbers), and 3. The government of a particular country determined that the service needed tobe provided in a certain way.De-licensing involves a general authorization or class license system in which operators are free toprovide services subject to regulatory obligations. Typically, the operator must submit to the regulatora notification containing minimal information before, or within a short time after, initiating service.However, operators do not have to wait for approval before commencing service.A registration regime typically requires minimal information, but involves stricter formalities in thatprior acceptance of the registration by the regulator is required for the operator to commence itsactivities. In addition, unlike a notification, a registration may be rejected by the regulator. In April2004, Japan implemented a review of its Telecommunications Business Law and established aregistration and notification regime. Operators in Japan that install networks of a certain size and scalemust obtain a registration from the Ministry for Internal Affairs and Communications. However, allother operators are only required to submit a notification to the Ministry.The EU has moved towards a simple authorization regime using minimal regulatory intervention andrequiring individual licenses only where strictly necessary (e.g., for the use of resources such as radiofrequencies and numbering). The regime covers authorization of all electronic communicationsnetworks and services regardless of whether they are provided to the public. The objective of the newframework is to ensure the freedom to provide electronic communications networks and services,subject only to the conditions relating in particular to welfare, public security, and public health.4. ELIMINATING LICENSE REQUIREMENTS ON NEW CONVERGED SERVICESA fourth trend to address convergence is to eliminate filing requirements with the regulator on thebasis that the services fall outside of the regulator‘s authority or because the regulator has decided toforbear from regulating a particular service.This approach has been followed in the United States for ISPs and the services they provide (e.g. e-mail, Internet access, and VoIP). To date, services provided by ISPs have been treated as unregulated―information services‖ in order to promote the continued development of the Internet.9. C) INTERCONNECTION IN CONVERGENCEInterconnection to legacy PSTN networks is very essential for services like voip. Interconnection isimplemented by using gateways and contractual agreements between voip providers and PSTNoperators. The WTO reference paper stipulates interconnection with a major operator to be providedunder non-discriminatory terms, conditions, including technical standards and specifications, and ratesno less favourable than that provided for its own like services or to its subsidiaries, etc, and in a timelyfashion, and cost oriented rates that are transparent, reasonable, sufficiently unbundled so that supplierneed not pay for facilities that it does not require for the service to be provided. Interconnection UsageCharges (IUC) are determined in PSTN with sufficiently unbundled network elements, so that theIUC is related to the relevant capital and operating costs of actual network resources employed.Traditional Interconnection regulations have been established for PSTN services. Traditionalinterconnection regulation was established for telecommunications operators with interconnectionrates generally based on time i.e. per minute. Services based on IP protocol, however, do not fit withinthe traditional schemes of switched voice interconnection and requires different kinds of access (forexample interconnection at an IP level or the higher frequencies of the local loop necessary to provide 98
    • ADSL data services over the existing copper wiring) and different kinds of charges. This is necessaryto permit, in a converged environment, the fundamental principle that any network operator is able tointerconnect with any other operator regardless of the network (i.e., ―any-to-any‖ interconnection)IPbased services require a new approach. Adapting the IUC regulation is very important. IUC is costand technology dependent. Cost based termination is in conflict with technology independence.Current approaches are mostly technology based. The fundamental principle is that regardless of thenetwork type, any network operator should be able to interconnect with any other operator. Theinterconnection should be simple and the basis of charging should be simple and easy to apply.Interconnection can be understood in three broad categories  a symmetrical interconnection regime  new kinds of ―access‖ through interconnection regulation  a technology-neutral interconnection charging system based on capacity, instead of time and distanceA SYMMETRICAL INTERCONNECTION REGIMETraditionally, only public switched network operators (fixed or mobile) were subject tointerconnection obligations. However, there has been some ambiguity regarding other operators, suchas cable networks or ISPs. As convergence blurs the traditional difference between networks,regulators are introducing a symmetrical interconnection regime in which any operator, regardless ofthe type of network it has, is obliged to interconnect with any other operator. Some countries havemaintained asymmetrical interconnections. The EU NRF requires regulators throughout the EU tocarry out a market analysis to determine which operators have significant market power.Interconnection has been separated into three different markets (i.e., call origination, call terminationand transit). Regulators will decide after this analysis which markets are deemed to have significantmarket power. In each such market, an operator is obliged to provide interconnection. EU hasdetermined that all mobile operators are dominant in the provision of termination on their networks asthere is no realistic possibility of substitutionNEW KIND OF ACCESSTo address the different needs of IP network and service operators for interconnection, the EU NRFintroduced the concept of ―access‖, principally for origination, which allows ad hoc interconnection tonetwork infrastructure via direct access or resale (such as local shared access or bit stream access).Within the EU, member states have implemented ―access‖ interconnection and granted this right tooperators other than traditional voice providers. Member states, such as Denmark, Finland, andGreece, have determined that all operators have a right to bit stream access, and Austria has allowedISPs to request unbundled infrastructure.The United Kingdom has proposed implementing an ―equivalence of inputs‖ (EoI) for NGN thatobliges the incumbent telecommunications operator to make available the same products and servicesto other operators as it makes available to itself, at a wholesale price (which is the same ‗transfer‘price that a network division may provide to a retail division), and using the same system andprocesses. EoI implements a further step within the ―access‖ concept, as it allows operators to requestdirectly, on a wholesale basis, services which have a retail counterpart instead of regulating a physicalconnection.CAPACITY BASED INTERCONNECTIONRather than charging at per minute rate it will be a capacity based interconnection. Spain andColumbia have introduced capacity based interconnection. Capacity based interconnection (CBI) 99
    • allows the operators to request a specific capacity for interconnection and pay a flat rate charge thatreflects the fixed cost nature of the interconnection capacity. As interconnection capacity isdimensioned to peak-hour traffic, CBI rates reflect true economic costs and do not require artificiallyspreading such fixed costs over projected traffic minutes to arrive at a per-minute charge.There are three models that can be used in interconnection 1. Capacity based model 2. Time based 3. Mixture of the first two models.NETWORKS THAT REQUIRE INTERCONNECTIONThe types of networks and services to be considered in interconnection policies vary with thedevelopment of new technologies. Examples of services that have required a reshaping of suchpolicies are mobile data, cable television, and Internet.When first introduced, Short Messaging Service (―SMS‖) provided mobile users the ability totransmit text between mobile terminal devices. Today, SMS may be transmitted from call centres andwebsites, and may even be received by fixed line users. This has pushed the boundaries of voice-focused interconnection policies and has forced regulators to consider whether traditionalinterconnection policies should be applicable to SMS traffic between mobile operators, contentproviders and fixed line operators. In Bahrain, Venezuela, and Mexico, regulators orderedinterconnection for SMS providers.Another challenge regarding interconnection with mobile networks is the emergence of multimediaapplications, prompting questions as to whether mobile network operators can operate as ISPs andwhether there should be any limitations on the ability of users to access mobile portals. Whether amobile network operator can operate as an ISP is generally based on the scope of the mobileprovider‘s license or whether a special license is required to provide Internet access. Where theprovision of Internet access does not require a license, mobile operators generally do not encounterproblems in deploying mobile Internet services. Consumers should be allowed to use alternativeaccess and content providers, but this is not possible when mobile operators lock users in their portals.Mobile operators should be required to open their networks to other Internet service providers, contentproviders and other portals.Regulators have also taken different decisions regarding Internet access via cable television modemnetworks. Some countries such as the United States, have ruled that Internet access is unregulatedand, therefore, cable operators have no obligation to open their networks to alternative ISPs. Othercountries, such as Canada, have ruled that cable television companies are obliged to make theirInternet access network available for resale to other operators.IMPACT ON COST AND PRICEAn essential factor in change from protected market to competition is the alignment of prices to cost.Convergence presents another scenario of best effort/quality label based routing for differentiatedservices where flat rate/volume based tariffs are more common. The cost basis has changed and as theexisting core model was designed for expensive core networks a need for new model arises. Newservices have come up and many more may come up in future. Cost reduction in termination chargeshould be the aim, but with sufficient incentive for Telcos to invest in infrastructure. Probablesolutions to these are to have zero termination charges. This will force the operators to get revenuesfrom their own subscribers and thus will improve market competition and innovation. There arecertain benefits from this. These are as follows  Less Regulatory burden: oversight to prevent anti-competitive practices only 100
    •  Interconnection agreements become very simple  Promotes fixed-mobile convergence and portability  More incentives to invest in new technology so as to derive full benefit from declining costs and more efficient usage of network infrastructure –lower Capex and lower Opex resulting in lower retail tariffs  Enables achieving technology neutralitySPECTRUM MANAGEMENTMost countries allocate spectrum on a national basis in accordance with the ITU frequency allocationtable, and then assign specific frequencies for use by particular radio services. Traditionally, spectrumlicenses have been subject to stricter government controls than other types of licenses because theyinvolve the use of a scarce resource and can be hampered by interference.Policy-makers and regulators are beginning to introduce changes within spectrum regulations toaddress the challenges of convergence. First, regulators are starting to grant the right to use spectrumwithout regard to the type of technology being used (i.e. technology-neutral approach). Australia,New Zealand and Guatemala have taken steps to improve their regulations to be more technologyneutral, and in India, TRAI has published two consultation documents soliciting opinions on variousconvergence-related issues including its proposed technology-neutral spectrum licensing regime andwhether there should be flexibility in spectrum allocation to take full advantages of new services andtechnologies.The United States has similar rules to Australia and generally takes a technology-neutral approach.Congress authorized the FCC to allocate spectrum for flexible use when it:1. Will be in the public interest;2. Will not deter investment in communication services, systems and technology developments;3. Will not result in harmful interference; and4. is consistent with international agreements.Second, regulators are allowing spectrum trading or in-band migration. In Australia, spectrum licensesare tradable and technology neutral. Spectrum licenses authorize the use of spectrum and licensees arefree to use any device and technology within their spectrum, provided that such devices comply withthe conditions of the licenses and the advisory guidelines established for the corresponding bands. Toavoid interference, the Australian Communications Authority (ACA) creates a document called―interference management framework‖ for each auction in which it sets forth the rules for spectrumuse. In addition, in Guatemala, the 1996 Telecommunications Law introduced private spectrum rightsthat are granted in frequency usage portions (Títulos de Uso de Frecuencias – TUC), which havetechnical limitations to protect against interference (e.g., maximum power transmission and emission).These private rights are limited for a period of time (15 years plus an additional 15 year extension ifrequested), but they can be traded without limitation other than the technical condition related to eachTUC to protect against interference. 101
    • INTRODUCTION TO TECHNOLOGY NEUTRAL IN SPECTRUM REGULATIONThe introduction of technology neutrality in spectrum regulation brings with it certain limitations. In atechnology neutral architecture any service should be provided through any kind of technology in anyfrequency band, and the use of spectrum can be altered at any time. However, in practical terms, thisis not feasible for various reasons. 1. Interference. Traditionally, regulators have addressed interference problems by mapping the services and allocating them in a national table of frequencies. Only those services allowed in a frequency band could be licensed therein. However, now that countries have introduced a technology-neutral approach in spectrum regulation, interference issues may be dealt with a different manner. One option followed by certain regulators is to issue specific technical rules associated with the specific spectrum granted. These technical rules introduce some limitations to the spectrum use, and thus in the strictest sense full technology neutrality is not possible, but it does resolve the problem of interference. 2. Economies of scale. The implementation of new technologies is more effective and economically viable when efficient economies of scale (e.g., decreases in the cost of equipment and technology development) are achieved by industry coordinating in the development of a standard and the identification of specific spectrum bands. In certain instances, countries and regions with industrial interests tend to develop their own standards (e.g., GSM in Europe). A technology-neutral approach in spectrum regulation challenges this coordination as different technologies and standards could be deployed in the same spectrum bands. However, although the costs related to deploying different technologies and standards are potentially higher in the short term because the economies of scale of each standard are lower than if a unified standard is adopted, a standard competition policy could have its benefits in the medium term because standards are enhanced and improved in a competition environment, providing consumers with better options and reducing technology costs. 3. International coordination. The ITU Radio Regulations, which are binding on the signatories of the ITU Constitution and Convention, are the international regulations used by the member nations to allocate and manage spectrum within their jurisdictions. The Radio Regulations affect the extent to which technology neutrality can be implemented; however, the ITU Radio Regulations are broad enough to allow development of different radio communications services within the designated spectrum bands, so countries still have a wide degree of discretion to introduce technology neutrality.SPECTRUM TRADINGA second response to convergence has been the introduction of spectrum trading and in-bandmigration. Spectrum trading refers to the ability of licensees to sell or trade their spectrum rights.Countries may decide to limit spectrum trading for specific uses or technologies or to allow unlimitedtrading except for requiring adherence to rules regarding interference. European Commissioncommissioned an independent study regarding the conditions and options of introducing spectrumtrading. The report recommended the implementation of spectrum trading and further liberalization ofspectrum use. The United Kingdom has already allowed spectrum trading for certain types of licensedtransmissions, and is expected to expand to more types of licenses. Furthermore, the United Kingdomhas introduced measures to liberalize spectrum by, among other things, reducing obligations ofcurrent licenses and allowing them to modify their spectrum use provided they do not causeinterference.IN-BAND MIGRATION 102
    • Various countries are introducing in-band migration which refers to the policy of allowing operatorsto use existing licensed spectrum to provide new services. Jurisdictions in the Americas and Asia haveused this policy with the introduction of IMT-2000 systems, allowing existing mobile operators toprovide third generation (3G) networks in their assigned frequencies. This policy has permittedoperators to decide when to deploy 3G networks and has been effective in reducing implementationcosts because it has allowed operators to use their existing spectrum without incurring the cost of newlicenses. As a result, 3G mobile networks have succeeded throughout these two regions.NEW WIRELESS TECHNOLOGYRegulators are also facing the introduction of Wireless Local Area Networks (WLAN and WiFi),technologies that operate in the Industrial, Scientific and Medical (ISM) bands. The ISM bands aregenerally unlicensed because they operate on a non-interference basis. Regulators have generallyallowed WiFi networks to operate unlicensed, provided that their transmitting characteristics fall intothose designed for that band. In practice, this has resulted in the implementation of a technology-neutrality approach for the ISM band. New wireless technologies are introducing challenges toregulators. These technologies, such as WiMAX (Wireless Inter-operability for Microwave Access)have a wider geographical coverage than current wireless technologies, such as WiFi. WiMAX willbe able to provide fixed, nomadic and portable wireless broadband connectivity (the fixed expectedcapacity is 40 Mpbs and the mobile is 15 Mpbs). Although the initial specification operated in the 10-66 GHz bands, it was further amended to operate additionally in the 2-11 GHz bands. This has madethe technology available in a range of radiocommunications bands. An improvement of the WiMAXstandard, which is expected to be completed in 2006, will be mobility and regional roaming.Due to the need to achieve the efficient economies of scale for WiMAX technology, the WiMAXForum is trying to obtain a harmonization of WiMAX deployment in three bands ( 5GHz band, the3.5 GHz band and the 2.5 GHz band). Regulators are sensitive about the benefits of the introductionof new wireless standards and in 2005 some started the process to license some of these bands, insome cases on a technology-neutral basis, having in mind the deployment of WiMAX technologies.DIGITAL TERRESTRIAL TELEVISION (DTTV)he introduction of digital television in satellite and cable broadcasting was generally praised as animprovement in technology that would offer consumers better quality and interactive services.However, given its spectrum implications, digital terrestrial television (DTTV) has gained theattention of regulators and policy-makers. DTTV is more spectrum efficient than analogue terrestrialtelevision, and therefore requires less spectrum per channel. As a result, it makes available aconsiderable amount of spectrum in bands that new and existing technologies are demanding. Inaddition, in order to receive DTTV consumers must acquire a new television set or a top box,introducing a disruptive effect for consumers that must be carefully managed.Regulators and policy-makers are facing the challenges arising from these two factors by establishingpolicies to: (i) require analogue broadcasters to give back analogue spectrum and assign the newlyavailable spectrum to new uses, and (ii) pursue a smooth transition for consumers that minimizes thedisruptive effect of requiring a new device. Most countries have implemented policies establishinglong parallel emissions periods allowing consumers to have a smooth transition, and designating aspecific date whereby broadcasters must switchover from analogue television (i.e., switch-off date) toDTTV. Countries such as Italy, Germany, Spain, Australia, and Japan have established analoguetelevision switch-off dates from 2007 to 2012, implementing a parallel emissions period averagingbetween eight and ten years.In India, TRAI stated in its recommendations on Private Terrestrial TV Broadcasting Service that,although switchover to DTTV was necessary in light of similar developments worldwide, analoguetelevision would continue to dominate the Indian market for several years. Thus, TRAI recommended 103
    • allowing both analogue and digital television without setting a switch-off date, provided sufficientspectrum was available.NUMBERINGNumbering policies and regulations were developed to address voice telephony services. As a result,numbering plans established different ranges for voice services and within fixed telephony,numbering was divided into geographic areas. This differentiation had a twofold function ofinforming end users of the charges of the calls and maintaining the interconnection cost structurebased on services (i.e., mobile voice service vis-à-vis fixed voice service) and distance. Since thisallowed subscribers to be reached by a unique combination of digits, numbering became an essentialresource for telecommunications networks operators. However, with the advent of convergence,regulators are finding that modifications to such policies and regulations are necessary.1. Assignment of Numbering Resources to New Technologies Service OperatorsOne of the significant impacts on numbering regulation relates to the proliferation of VoIP services.This has raised questions among regulators as to whether numbering resources should be assigned forVoIP and whether traditional telephone service operator obligations should be imposed on VoIPproviders. Regulators have adopted a variety of solutions. For example, in some jurisdictions,providers are allowed to use geographic numbers provided they offer service under the traditionalvoice service regime, which imposes various obligations (e.g., quality of service, access to emergencyservices, and lawful interception). In addition, countries such as Singapore, Japan, South Korea andsome EU Member states (e.g. Ireland, France, Germany, and Austria), have created a specificnumbering range for VoIP services, due to the special characteristics of the service, most notably itsnomadic use.Some countries, such as Japan, Spain, and the United Kingdom, have combined both measures, andgrant geographic numbers to VoIP providers if they operate under the voice service regime (i.e. voicequality of service, lawful interception obligations, access to emergency services), and specific numberranges if VoIP providers operate under the ―information service‖ regime. The implementation of thisdifferentiation has the additional intention of highlighting to consumers that these services are notequal and that VoIP specific range service providers do not necessarily provide the same set offeatures commonly associated with public voice service.2. Inter-modal PortabilityA second modification on numbering regulation has been the introduction of inter-modalityportability. Number portability is the ability of a consumer to maintain the same telephone numberwhen changing service providers. Number portability may be inter-modal (e.g., porting a numberfrom a fixed to a mobile network or vice versa) or restricted to one type of network. The United Stateshas included a geographically restricted inter-modal portability, meaning that a consumer may portamong different types of networks within a limited geographical area. In Argentina, thetelecommunications law allows inter-modal portability to be implemented by the regulator although ithas not been adopted yet. Hong Kong (SAR) is currently discussing whether to introduce inter-modality portability to address fixed to mobile convergence but there are signs that number portabilitycould potentially be expanded to other services, such as VoIP. In Denmark, the regulator hasimplemented a non-geographic numbering plan (i.e a consumer may be reached at a telephone numberthat does not correspond to its geographical location) where numbers are not attached to a specificservice, and consequently, there are no portability restrictions among services.However, the implementation of inter-modal portability is currently limited to few jurisdictions.Geographical restrictions on inter-modal portability often respond to the potential effects ontraditional numbering plans that are based on distance, services, and interconnection cost structures 104
    • and for this reason, inter-modality portability may require a numbering policy restructure to beimplemented.3. ENUMENUM is an international initiative on electronic numbering, a protocol that converts a telephonenumber of the public telephone network (―PSTN‖) into an IP address.3 The ENUM initiative hasestablished the possibility of introducing a fully neutral approach to numbering, simplifyingnumbering regulations and addressing complexities resulting from convergence. Essentially, bytranslating a PSTN number to an IP address, ENUM would make it easier to contact people throughelectronic means (e.g., linking users‘ email, telephone number, fax and instant messenger addressallowing them to be reached by any of these means through a single number). ENUM developmentsmay potentially define the future direction of numbering policies. In addition, ENUM may addresssome of the transparency concerns with VoIP, due to the mapping of PSTN numbers to ―uniformresource locators‖ (URLs). ITU-T Study Group 2 and the Internet Architecture Board are workingtogether in the implementation of ENUM. An procedure to administer the delegation of ENUMresources has been approved by the ITU-T Study Group 2 and several countries including Australia,China, France, Japan, Republic of Korea, and Sweden, have started ENUM trials.4. DOMAIN NAMESAs numbering policies continue to be influenced by the development of IP networks, the managementof country-code top-level Internet domain names (―ccTLDs‖) has become another regulatory issue.Several countries have given their telecommunications regulators the responsibility to manageccTLDs, yet some regulators may not have the necessary resources to take on this task. Althoughregulators maintain the control and legal responsibilities, they may rely on others for the domainnames management including other government agencies, private companies, academic institutionsand non-profit organizations. Furthermore, some governments have even commercialized the ccTLDsthat correspond to their jurisdictions in order to obtain an additional source of revenues.CONSUMER PROTECTIONIn regular telephony services the security and consumer protection standards have been defined andare generally found adequate. But as far as IP is concerned there is no one-to-one relation between theservice and the physical infrastructure. Considering an example of VoIP, it is just another IP serviceconveyed in the IP networks and anyone with access to the network can tap the signal and activelydamage the integrity of the message and the signal. To assure privacy the VoIP provider canimplement end-to-end encryption, which is not 100% secure but can establish security levelscomparable to those of regular telephony. The encryption will on the other hand prevent theauthorities from lawfully tapping the VoIP signal. Different models for a solution to this can be found.But the most future safe solution will connect this type of security issue to IP connections generally,and VoIP will then be a treated as a sub-set of the general solution. 105
    • Annexure1.References  http://www.trai.gov.in  OFTA, Licensing Framework for Deployment of Broadband Wireless Access: Analysis of Comments Received, Preliminary Conclusions and Further Consultation, 31 August 2005, available at http://www.ofta.gov.hk/en/report-paper-guide/paper/consultation/20050831.pdf  http://www.trai.gov.in/trai/upload/ConsultationPapers/3/cpaper12jan06.pdf  TRAI, Consultation Paper No. 11/2004: Efficient Utilization, Spectrum Allocation, and Spectrum Pricing, 31 May 2004, available at http://www.trai.gov.in/trai/upload/ConsultationPapers/74/consultation%20paper%20on%20sp ectrum%20released.pdf and Consultation Paper No. 1/2006: Issues relating to Convergence and Competition in Broadcasting and Telecommunications, 2 January 2006.  http://www.unescap.org/idd/events/2007_NW-Azerbaijan/licensing-trends.pdf  TRAI, Recommendations on Issues Relating to Private Terrestrial TV Broadcasting Service, 29 August, 2005, available at http://www.trai.gov.in/trai/upload/recommendations/8/recom29aug05.pdf  http://www.fonearena.com/blog/2964/interconnection-usage-charges-iuc-reduced-will- mobile-call-charges-come-down-further.html  http://www.sitronics.com/upload/iblock/cf8/vodafon_letak_v05.pdf  http://www.intec-telecom-systems.com/uploads/annualreport2005.pdf  http://www.etsi.org/WebSite/document/Workshop/Security2007/Security2007S7_3_Stephan_ Spitz.pdf  http://www.azouk.com/216488/Nokia-IMS-White-Paper/  file:///D:/RP/FMC/Fixed%20Mobile%20Convergence%20- %20Google%20Books.htm#v=onepage&q&f=false  http://searchcio-midmarket.bitpipe.com/detail/RES/1244842177_329.html  http://www.fujitsu.com/downloads/MAG/vol42-4/paper11.pdf  http://whitepapers.techrepublic.com.com/abstract.aspx?docid=2308015  http://www.munsoy.com/Dr_Unsoy_Telecom_Trends_2010.pdf  http://media.wiley.com/product_data/excerpt/89/04707462/0470746289.pdf  http://www.murdoch.edu.au/elaw/issues/v9n1/duggal91.html  http://ec.europa.eu/information_society/eeurope/i2010/docs/studies/interactive_content_ec20 06.pdf  http://graphics.eiu.com/files/ad_pdfs/Agilent_Convergence_WP.pdf 106
    •  http://voicendata.ciol.com/content/ContributoryArticles/110051004.asp http://www.isp-planet.com/cplanet/tech/0004phifer.html http://blog.tmcnet.com/beyond-voip/billing/the-seven-laws-of-converged-billing.asp http://www.redknee.com/_media/pdf/solution_bulletins/RK_PB_Turnkey_Converged_Billing _Solution.pdf www.crestel.in/newsletter/092007/images/EliteAAACaseStudy.pdf www.crestel.in/downloads/Brochure/Brochure.pdf http://www.amdocs.com/OfferingsRETIRED/CES-Portfolio/Revenue-Management/Billing- Charging/Documents/CONVERGENT_BILLING_SOLUTION_0708.pdf http://www.alcatel- lucent.com/wps/DocumentStreamerServlet?LMSG_CABINET=Docs_and_Resource_Ctr&L MSG_CONTENT_FILE=Brochures/ConvergentBilling-Brochure.pdf http://www.orga-systems.com/home/en/products/opsc_gold_convergent http://www.convergenceplus.com/feb05%20india%20telecom%2004a.html http://whitepapers.technologyevaluation.com/pdf/4778/the-convergent-mediation-solution-- competitive-advantage-enabler.pdf http://www.sitronics.com/upload/iblock/cf8/vodafon_letak_v05.pdf 107
    • Annexure 2List of FiguresFigure 1 :4 Ps in Telecom .................................................................................................................. 4Figure 2: Horizontal and Vertical Convergence................................................................................... 5Figure 3: Cross-Domain Convergence .............................................................................................. 13Figure 4: Supply & Demand of Convergence .................................................................................... 13Figure 5: Content Integration........................................................................................................... 14Figure 6: Network Management ...................................................................................................... 17Figure 7: Screen Convergence.......................................................................................................... 17Figure 8: SDP Framework Integration .............................................................................................. 19Figure 9: CONVERGED PRE/POST END-TO-END SOLUTION ............................................................... 24Figure 10: IN-Based Converged PRE/POST Solution .......................................................................... 25Figure 11: Unified CRM solution ...................................................................................................... 26Figure 12: Modules of Convergent Billing......................................................................................... 26Figure 13: Network Elements........................................................................................................... 27Figure 14: Network Data Collection ................................................................................................. 28Figure 15: Data Distribution ............................................................................................................. 28Figure 16: Rating Module ................................................................................................................ 29Figure 17: Fixed Mobile Convergence .............................................................................................. 34Figure 18: FMC Ecosystem ............................................................................................................... 37Figure 19: FMC Solutions ................................................................................................................. 38Figure 20: UMA mode of FMC.......................................................................................................... 38Figure 21: IMS based FMC ............................................................................................................... 40Figure 22: IMS network of FMC ....................................................................................................... 41Figure 23: Femtocell based FMC ...................................................................................................... 42Figure 24: FMC SWOT analysis ......................................................................................................... 45Figure 25: Platform, technology and content integration ................................................................. 47Figure 26: The value chain of digital content .................................................................................... 48Figure 27: Service Convergence ....................................................................................................... 49Figure 28: Before, Now & future of Service Convergence ................................................................. 51Figure 29: Core and Access part in Network Convergence ................................................................ 55Figure 30: Trends in Consumer technology ...................................................................................... 58Figure 31: Device Convergence ........................................................................................................ 59Figure 32: Control of Screen ............................................................................................................ 59Figure 33: Survey figure 1 ................................................................................................................ 60Figure 34: Survey Figure 2 ............................................................................................................... 61Figure 35: Survey Figure 3 ............................................................................................................... 61Figure 36: Survey Figure 4 ............................................................................................................... 62Figure 37: Survey Figure 5 ............................................................................................................... 62Figure 38: Survey Figure 6 ............................................................................................................... 63Figure 39: Survey Figure 7 ............................................................................................................... 63 108
    • Figure 40: Survey Figure 8 ............................................................................................................... 63Figure 41: Survey Figure 9 ............................................................................................................... 65Figure 42: Current Pre-paid vs Post-paid subscribers scenario.......................................................... 66Figure 43: Single System Convergence ............................................................................................. 67Figure 44: Four worlds of Convergent charging & billing .................................................................. 68Figure 45: Amdocs convergent charging .......................................................................................... 69Figure 46: Amdocs convergent charging configuration ..................................................................... 70Figure 47: Amdocs billing capacity & scalability ............................................................................... 70Figure 48: Blue frame of CES 8 ......................................................................................................... 71Figure 49: Blue frame of Ericsson’s/LHS BSCS iX ............................................................................... 72Figure 50: Internal Architecture of BSCS .......................................................................................... 73Figure 51: Overview of Comverse Convergent charging & Billing...................................................... 74Figure 52: Overview of Alcatel Lucent Convergent charging & billing solution .................................. 75Figure 53: Alcatel Lucent’s 8610 ICC modular S/W suite (Convergent billing product) ...................... 76Figure 54:Overview of Oracle Convergent charging & billing solution .............................................. 77Figure 55: Overview of Intec Convergent charging & billing solution ................................................ 78Figure 56: Overview of Convergys’s Convergent charging & billing solution ..................................... 80Figure 57: Layers in Huawei’s CBS (Convergent billing solution) ....................................................... 81Figure 58: Overview of Huawei’s Convergent charging & billing solution ......................................... 81Figure 59: Features of ZSmart of ZTE ............................................................................................... 82Figure 60: Overview of ZTE Convergent charging & billing solution .................................................. 83Figure 61: Overview of NSN Convergent charging & billing solution ................................................. 84Figure 62: Critical parameters for billing vendors ............................................................................. 85Figure 63: Information exchange in UIDAI........................................................................................ 93 109
    • Annexure 3ABBREVIATIONSAAA Authentication, Authorization, AccountingADSL Asymmetric Digital Subscriber LineARPU Average Revenue Per UserASP Application Services ProviderATM Asynchronous Transfer ModeBFSI Banking and financial services institutionsBISDN Broadband Integrated Services Digital NetworkBRM Billing and Revenue ManagementBSC Base Station ControllerBSS Business Support SystemBT British TelecomBTS Base Transceiver StationCaaS Communication as a ServiceCBI Capacity based interconnectionCBSS Convergent Business Support SystemCDMA Code Division Multiple AccessCDR Call Detail RecordsCES Customer Experience SystemCMS Customer Market ShareCPE Customer Premises EquipmentCRE Convergent Rating EngineCRM Customer Relationship ManagementCS Circuit SwitchedCSCF Call Session Control FunctionCSP Communication Service ProviderCTP Cordless Telephony ProfileDAB Digital Audio BroadcastingDPI Deep Packet InspectionDSL Digital Subscriber LineDTH Direct To HomeDTTV Digital Terrestrial TelevisionDVB-H Digital Video Broadcasting-HandheldEMA Ericsson Multi ActivationEMM Ericsson Multi MediationEoI Equivalence of InputsERP Enterprise Resource PlanningFCAPS Fault, Configuration, Accounting, Performance and SecurityFDMA Frequency Division Multiple AccessFMC Fixed Mobile ConvergenceFMS Fixed Mobile ServiceFTP File Transfer ProtocolGAN Global Area NetworkGGSN Gateway GPRS Support Node 110
    • GMSC Gateway Mobile Switching CenterGPRS General Packet Radio ServiceGSM Global System for Mobile CommunicationGTP GPRS Tunnelling ProtocolGTM Go-to-Market Strategy3GPP 3rd Generation Partnership ProtocolHLR Home Location RegisterHSPA High Speed Packet AccessHSS Home Subscriber ServerHTTP Hypertext Transfer ProtocoICC Instant Convergent ChargingISDN Integrated Services Digital NetworkIUC Interconnection Usage ChargesILEC Incumbent Local Exchange CarrierIMS IP Multimedia SubsystemsIN Intelligent NetworksIP Internet ProtocolIPDR Internet Protocol Detail RecordIPTV Internet Protocol TVITU International Telecommunication UnionIXC Interexchange CarrierLTE Long Term EvolutionMGCF Media Gateway Control FunctionMPLS Multi Protocol Label SwitchingMMS Multimedia Messaging ServiceMME Mobility Management EntityMNO Mobile Network OperatorMSC Mobile Switching CenterMTS Mobile Tele SystemsMVNO Mobile Virtual Network OperatorNaaS Network as a ServicesNGN Next Generation NetworksNFP Network Facilities ProviderNSP Network Services ProviderOCS Online Charging SolutionOEM Original Equipment ManufacturersOPEX Operational ExpensesOSS Operations Support SystemPABX private automatic branch exchangePCC Policy and Charging ControlPBX Private Branch ExchangePSDN public switched data networkPSTN public switched telephone networkQoS Quality of ServiceRACGP Royal Australian College of General PractitionersRAN Radio Access NetworkRMS Revenue Market ShareRNC Radio Network ControllerSaaS Software as a ServiceSCP Service Control PointSDP Service Delivery PlatformSIP Session Initiation ProtocolSMS Short Message Service 111
    • SMSC Short Message Service CenterSOA Software Oriented ArchitectureSTB Set Top BoxSS7 Signaling System 7SWOT Strength Weakness Opportunity ThreatsTCO Total Cost of OwnershipTCP Transmission Control ProtocolTDM Time Division MultiplexingTDMA Time Division Multiple AccessTRAI Telecommunications Regulatory Authority of IndiaTSP Telecom Service ProviderTNZ Telecom New ZealandUDP User Datagram ProtocolUDR Usage Detail RecordsUID Unique IdentityUMA Unlicensed Mobile AccessUMAN Unlicensed Mobile Access NetworkUNC UMA Network ControllerURCS Unified Rating &Charging SystemUWB Ultra Wide BandVoIP Voice Over Internet ProtocolVAS Value Added ServicesVMSC Visited Mobile switching CenterVPN Virtual Private NetworkWAP Wireless Application ProtocolWLAN wireless local area networkWIMAX Worldwide Interoperability for Microwave Access 112