Telecom Convergence

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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

  1. 1. Telecom ConvergenceSiddhant JainMob:- 9595637843Email:- siddhant_jain_ind@yahoo.co.inhttp://in.linkedin.com/in/jainsiddhant 1
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 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
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. - 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25.  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
  26. 26. 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
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. 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
  31. 31. 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
  32. 32. 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
  33. 33. 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
  34. 34. 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
  35. 35. 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
  36. 36. 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
  37. 37. 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
  38. 38. 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
  39. 39. 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
  40. 40. 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
  41. 41. 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
  42. 42. 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
  43. 43. 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
  44. 44. • 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
  45. 45. 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
  46. 46.  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
  47. 47. 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

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