MBA Summer Internship Project




     WIRELESS TELECOM NETWORK
     OPERATIONS | CHANGING NEEDS




          Prepared & ...
Objective



 Analyze & evaluate Client’s Telecom network operation Process.

Perform Client’s Technology evaluation as ...
Are you a TELCO and feeling Heat of Challenge?


  •Are you currently looking at cutting operating costs of support functi...
Industry Expert Feed

This is what an OEM has
to say about
Service Provider’s
Operations!!!




         The large number ...
Telco’s Network Operation -Challenges
    Process Risk                               Technology Risk
o   Higher Operationa...
Scope of Work
Analyze Client‟s Telecom Network Operation; Evaluate Process by the
means of Client tailored Framework-Analy...
Methodology-How do we go About It

Identifying Drivers of Wireless Telco Network Operation
Area of Concern | PPT (People-P...
Telecom Network | Operation Chain

                          Conceptualize

Vision, Purpose, High Level Project Plan, Crit...
Processes Featured | Deliverable

                           Network Strategic        Network Planning
   NOC-Centralized ...
Telco Network Operations-Process
     (Framework-Analysis Methodology)| Deliverable


                        Framework-An...
Telco Network Operations-Process
     (Framework-Analysis Methodology)| Deliverable




Process SLM Framework
Telco Network Operations | Regulator’s Say

 Regulators‟ Say: TRAI-India
 Regulator #
                               TRAI-...
Telco Network Operations | Challenges

                      Where are we?
                      Where are we up to?
     ...
Telco Network Operations | Challenges
What's Needed?
Actionable Business Intelligence to Address :
•Evolution
•Key Strateg...
Actionable Business Measure




   #Source: Booz Allen & Hamilton

The Solution for Actionable Business Intelligence is:

...
What is SLM?
 Service Level Agreement (SLA) is a formal negotiated agreement between
  a service provider and a customer....
SLM Monitoring System Architecture

SLA monitoring:

•Qos Parameter
•Problem Notification
•Performance Data
•Network Level...
Telco Network Operations | Delivery Model


                                                               
             ...
Telco Network Operations | Performance Measure
                              Difference between KPI/KQI
                  ...
Telco Network Operations | Performance Measure
Case Study– Resolving a High Rate of Prepaid Call Failures

Problem
A wirel...
Technology Featured:
Radio & Core| Deliverable


                            CDMA2000 Base Station   CDMA2000 Mobile
   CD...
Technology Featured:
Transmission | Deliverable


       Metro Access                                                  Met...
Telco Network Operations-Technology
(Industry Benchmarks Analysis Methodology)| Deliverable




        Industry Benchmark...
Solution: Involvement of an EXPERT
                    But Who?

   The one who understands & has answers to…



       W...
Outsourcing BUZZ


                   Outsource !!!

                   Offshore delivery capabilities have evolved signif...
Telco Network Operations | Outsourcing BUZZ




                                              Now we are here
Market Vectors




# Source: Joint Report „Market Vista,2009‟ of SSON & Everest Research Institute
Some Benefits….
    √   Increase stakeholders‟ value             √ Increase sales

    √   Reduce costs-TCO               ...
Tracking benefits | Bharti case
                Outsourcing as a driver for operating cost reduction –
                Bha...
Industry Trends

  Managed and Advisory services | A Growth Avenue




Changing Outlook of Industry             : Growth  ...
Industry Forecast




                                                                                       CSPs will spe...
Challenges of Outsourcing
Consumer Protection/Consumer Enforcement

Government Securities or Foreign Control

Worker Pr...
Some Processes in Place
   Operations & Maintenance
   NOC Operations
   Billing
   Supply Chain
   Data Center Opera...
Way Forward

Step 1
          Scope Definition-RFI/RFP


Step 2
          Identification of stake holders

          Devel...
Way Forward

Step 11
          Ease of provisioning & Termination of services.


Step 12
          Report and Consent from...
Out-Sourcing Scenario                                                     Our Major
                                      ...
Different Out-Sourcing Models



•Free Standing Simple Captive Model
•Virtual Captives
•Acquiring a Captive Over Time: Bui...
Some Out-Sourcing Charging Models

Monetizing Outsourcing Decision !

•Per Minutes of Usage payment Model-Revenue Share/Fi...
Some Out-Sourcing Charging Models


•Payment Based Upon Revenue Share/Fixed Payment on ARPU
•Time & Material Based and T&M...
Re-Course
Limitations

     Non availability of data from a primary source especially for operational
      metrics
     Key Perfo...
Leverages to Telcos
   „Wireless Telecom Network Operations‟ project makes org.,with prior
   vast experience in Telecom ...
Incase of further query feel free to right me:
   misra.vaibhav@gmail.com
   http://in.linkedin.com/in/vaibhavmisraindia

...
Vaibhav Misra Telecom Wireless Operations Management Consulting Presentation
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  1. 1. MBA Summer Internship Project WIRELESS TELECOM NETWORK OPERATIONS | CHANGING NEEDS Prepared & Presented by: Vaibhav Misra MBA-1 yr.(System & Finance), Symbiosis,Pune Email: misra.vaibhav@gmail.com
  2. 2. Objective  Analyze & evaluate Client’s Telecom network operation Process. Perform Client’s Technology evaluation as per network architecture requirement Propose benefits of Outsourcing and help the Client structure it.
  3. 3. Are you a TELCO and feeling Heat of Challenge? •Are you currently looking at cutting operating costs of support functions? •Do you want to focus on your core business and remain competitive at all times? •Are you looking at reducing capital expenditure in process and technology? •Are you looking at business transformation through innovation? & more If your answers to any of the above questions are YES then pl. go on….. The Telco's under pressure “We think that the days have gone where services providers can consider themselves the integrators, the jacks of all trades, as we say in New Zealand, thinking that they can pull this together all.” -- Simon Moutter, Chief Operating Office (COO), Telecom New Zealand.
  4. 4. Industry Expert Feed This is what an OEM has to say about Service Provider’s Operations!!! The large number of network maintenance engineers, with their associated compensation and benefits in the European market, has greatly impacted operators' HR costs. In fact, comparative HR costs are usually several times lower in regions such as Asia and Africa. European operators realized that network operation and maintenance have increasingly become non-core services but they account for a large portion of the OPEX. # Source: Huwaei Telecom
  5. 5. Telco’s Network Operation -Challenges Process Risk Technology Risk o Higher Operational Cost o Not Abreast with Technology- o Poor Network Management Obsolescence o Slow Pace of Change o Poor Vendor Management o Need of Expertise o Less Technical Expertise o Competitor Threat o More Cost-TCO & Many More….. to name a few….. Benefits to Telco:  Stay a ahead in Business of Network Operation  Overcome Process Risk in Rational & Make Strategic way  Better Mechanize the Process vis-à-vis Business Goal  Overcome Technology Risk by Industry Insight & best Practices  Better creation of Network Technology and thus Business Drivers. With us fasten your loose end & Achieve the best in Industry in most optimize way & a lot more……….
  6. 6. Scope of Work Analyze Client‟s Telecom Network Operation; Evaluate Process by the means of Client tailored Framework-Analysis Tool.  Find gaps on the basis of an exhaustive Service Level Management design  Find risks & losses  Propose alternatives to mitigate risk & control losses. Analyze Client‟s Technology as per network architecture requirement; Evaluate by the means of Industry Benchmarking-Evaluation Criteria & product metrics kit.  Find obsolescence (if any) and possible upgrades,  Find existing vendor products & services,  Find Propose best fit solution to stay ahead with vendor technology and services. Propose benefits of Outsourcing and help Client deal with it.  Structuring network outsourcing capabilities & its features.  Possible and prevalent outsourcing models and their payment models.  Gauging mechanism and further improvements.
  7. 7. Methodology-How do we go About It Identifying Drivers of Wireless Telco Network Operation Area of Concern | PPT (People-Process-Technology) Analysis Process Framework Network Operations GAPS Feasible Models Outsourcing Technology Industry Benchmarks Alternatives GAPS Available Analysis
  8. 8. Telecom Network | Operation Chain Conceptualize Vision, Purpose, High Level Project Plan, Critical Success Factor. Design Business Model, Scope, Project Map, Architecture, Approach. Execute Implement, Test, Analyze, Process, Delivery, Operate. Support Monitor, Analyze, Enhance, Optimize and Trouble Shoot.
  9. 9. Processes Featured | Deliverable Network Strategic Network Planning NOC-Centralized Planning (New)- (Existing)-Optimization Monitoring Expansion & Network & Scaling Roll Out O&M Circle Level Performance Service Assurance Management Regulatory Compliance QoS Measure Parameters Cost Element-Technology Other Parameters
  10. 10. Telco Network Operations-Process (Framework-Analysis Methodology)| Deliverable Framework-Analysis Methodology Process SLM Framework
  11. 11. Telco Network Operations-Process (Framework-Analysis Methodology)| Deliverable Process SLM Framework
  12. 12. Telco Network Operations | Regulator’s Say Regulators‟ Say: TRAI-India Regulator # TRAI-India KPI.doc Regulators‟ Say: International Regulators # International KPI # Source: TRAI
  13. 13. Telco Network Operations | Challenges Where are we? Where are we up to? Problems Faced: •Changing Service Requirements •New Technology Barriers-Multivendor Scenario. •Competition •Non-Traditional Techno-Commercial Model. Many More….. "Measure what can be measured, and make measurable what cannot be measured." --Galileo Galilei
  14. 14. Telco Network Operations | Challenges What's Needed? Actionable Business Intelligence to Address : •Evolution •Key Strategic Planning •Network Optimization •Profitability •Vendor/Supplier/Self Gauging for better Management Solution: Lean Operation….May be! Performance Gauge….. •Drive Down Cost: Reduce Manpower, Simplify Process, New ways of doing things, Improve Supplier Relationship •Drive Up Revenue: Service Innovation, Reduce Time Market, Reduce Time Cash. •Drive Up Business Agility: Fast Reactions, Business Process Improvements. •Drive Up Customer Loyalty: Improving Quality and Service by reducing Lead time and •Increasing Response Time, Increase Customer Satisfaction, Achieved Customer Excellence.
  15. 15. Actionable Business Measure #Source: Booz Allen & Hamilton The Solution for Actionable Business Intelligence is: Service Level Management (SLM)
  16. 16. What is SLM?  Service Level Agreement (SLA) is a formal negotiated agreement between a service provider and a customer.  The service level management (SLM) is the integrated management of all functionalities in the SLA life cycle. Business Level Management  Business Level Management  Service Level Management Service Level Management Customer Interface Management SLA contract: •SLA Creation SLA Creation SLA Assessment •SLA Negotiation Customer •SLA Provisioning SLA Negotiation SLA Reporting •SLA Assessment •SLA Reporting SLA Provisioning SLA Maintenance •SLA Maintenance SLA Monitoring Network Level Management
  17. 17. SLM Monitoring System Architecture SLA monitoring: •Qos Parameter •Problem Notification •Performance Data •Network Level Management #Source: White Paper by-Distributed Processing & Network Management Lab. & Network Technology Research Lab., ETRI, Daejeon Korea
  18. 18. Telco Network Operations | Delivery Model  Network Chain Service Chain Network Network Service Planning Service Implementation Planning & Design Implementation & Design Network Service Business Goal Monitoring Business Goal Monitoring & Control & Control Network Service Optimization Optimization
  19. 19. Telco Network Operations | Performance Measure Difference between KPI/KQI KPI (Key Performance KQI (Key Performance Indicator) Indicator) Network Performance Based End to End Service Delivery that network Supports Traditional Approach Modern Approach Network Focused Customer Focused Difference between QoS / QoE QoS (Quality of Service) QoE (Quality of Experience) Finds Places in Contract Needs to be seen while Management contracting Cause-Effect Analysis Perception Based Analysis Based upon Machine Factor Based upon Human Factor “A new, dynamic “business control layer” should be capable of dynamically adapting network or service behavior at the customer level to improve operators‟ transaction revenue and – at the same time – customers‟ experiences.” – Yankee Group
  20. 20. Telco Network Operations | Performance Measure Case Study– Resolving a High Rate of Prepaid Call Failures Problem A wireless service provider received complaints from prepaid subscribers concerning originated calls that would not complete. Solution On examining the call completion report from an integrated monitoring system (in this case, Tekelec's Integrated Applications Solution [IAS]), the service provider was able to quickly identify the cause as a prepaid Service Control Point (SCP) issue. A deeper analysis of the KPI information indicated that the prepaid transactions were timing out due to SCP overload. Examining the same call completion report over a three week period, the operator saw a pattern that showed the SCP had abnormal activity several times between 5PM and 8PM on weekdays and was dangerously close to engineered transaction capacity. Based on this information, the operator added capacity to the SCP to alleviate the problem. The diverse reporting capability of the Tekelec IAS system enabled the service provider to quickly gain visibility into the problem and take corrective action, which resulted in improved service quality and fewer customer complaints. “Bharti holds its strategic partners accountable by linking payments to KPIs,” says Mr. Norman Donald Price, CTO and director of Bharti Cellular Limited. “Successful managed services typically require an all or nothing approach. We believe that the probability of.” success is heavily dependent on the clear definition of responsibilities and processes”.
  21. 21. Technology Featured: Radio & Core| Deliverable CDMA2000 Base Station CDMA2000 Mobile CDMA2000 Base Stations Controllers Switching Centers CDMA2000 Packet GSM Base Station GSM Base Stations Network PDSNs Controllers UMTS Radio Network UMTS Node B Base GSM/UMTS Mobile Stations Controllers Switching Centers IP Data Gateways
  22. 22. Technology Featured: Transmission | Deliverable Metro Access Metro Edge Metro Core/Regional Optical Switching WAN DWDM
  23. 23. Telco Network Operations-Technology (Industry Benchmarks Analysis Methodology)| Deliverable Industry Benchmarks Analysis Methodology
  24. 24. Solution: Involvement of an EXPERT But Who?  The one who understands & has answers to… Works out Optimum Ways  And Allows you to Concentrate: ‘On Your Core’ If you deprive yourself of outsourcing and your competitors do not, you're putting yourself out of business. Lee Kuan Yew ,Former PM, Singapore
  25. 25. Outsourcing BUZZ Outsource !!! Offshore delivery capabilities have evolved significantly over the last five years with India emerging as a leading destination. –AT Kearney Report On Network Operation Outsourcing. Some Industry Experts even go to extent :- “Outsource everything except your Soul” – Tom Peters, Business Management Guru Crux: Outsource, Need of Hour
  26. 26. Telco Network Operations | Outsourcing BUZZ Now we are here
  27. 27. Market Vectors # Source: Joint Report „Market Vista,2009‟ of SSON & Everest Research Institute
  28. 28. Some Benefits…. √ Increase stakeholders‟ value √ Increase sales √ Reduce costs-TCO √ Improve service √ Reduce inventory √ Improve operations √ Increase inventory velocity and turns √ Overcome lack of internal capabilities √ Mitigate capital investment √ Keep up with competitors √ Improve cash flow √ Gain competitive advantage √ Turn fixed costs into variable costs and other benefits both tangible and intangible. √ Improve capabilities …the list is more. √ Avoid Vendor Lock-in √ Benefits Of SEZs √ Increased ISV‟s Role
  29. 29. Tracking benefits | Bharti case Outsourcing as a driver for operating cost reduction – Bharti Airtel# 2005 2006 2007 Outsource Network IT support Call center Network General activity management outsourcing deal functions management pressures on part outsourced part outsourced marketing costs outsourced Observed Network Personnel costs: Personnel Network costs: Marketing annual impact costs: fell by 22% costs: fell by 0.5% costs: on operating fell by 13% fell by 9% fell by 21% expenditure per subscriber  Bharti Airtel‟s operating costs per subscriber fell by 25% (2004-2007). Costs were reduced in networks, personnel, sales and marketing, and administration  A number of significant vendor deals have underpinned these outcomes, with key areas being the outsourcing of network expansion, network management and IT. #Source: Company website; annual report; Ernst & Young analysis
  30. 30. Industry Trends Managed and Advisory services | A Growth Avenue Changing Outlook of Industry : Growth : Lesser Control on Non-Core Source: http://www.oliverwyman.com
  31. 31. Industry Forecast CSPs will spend US $145 billion on third-party services during the next five years. The richness of services available means that CSPs could become almost entirely virtual– externalizing infrastructure. - Yankee Group Source: IBM Institute for Business Value and Economist Intelligence Telecom Industry
  32. 32. Challenges of Outsourcing Consumer Protection/Consumer Enforcement Government Securities or Foreign Control Worker Protection Environmental Impact of Management Globalization & The extended Enterprise Approach Some Other Risks Involved Business Process Re-engineering Competitive Pricing Performance Management/Service Guarantees Financial Management & Further Master Service Agreement Process Management Risk Management in Contract/Contingencies Relationship Management Human Resource Planning Legal Risk Management & Tax Planning
  33. 33. Some Processes in Place  Operations & Maintenance  NOC Operations  Billing  Supply Chain  Data Center Operations  Network Integration  Change Management  Network Expenditure Analysis  Revenue Analysis  Optimization Techniques  Service Delivery  Enterprise Business  Managed Services  Utilities Management & others. Use of IP-NGN Networks will scale convergence further and thus centralize process which is an Art that enables Outsourcing.
  34. 34. Way Forward Step 1 Scope Definition-RFI/RFP Step 2 Identification of stake holders Develop independent reference checks Step 3 Business Transition/Transformation-Hurdles & Challenges identification (Self BCP Plan) Step 4 Single/Multi-vendor scenario-& Challenges identification Step 5 Identification of Parameters: Service Level Management & Charging Methodology. Step 6 Categorization of services into logical modules----Escalation Levels---Charging Basis----Affects on Step 7 SLA---Charging Reference Step 8 Cap on amount of Risk to Service Credit on periodic basis/Appreciation on better performance- Credit basis. Step 9 Future change control mechanism-Agreement /Disagreement Step 10 If multiple geographies, vendors must take into account to consider jurisdiction in different locations. …contd.
  35. 35. Way Forward Step 11 Ease of provisioning & Termination of services. Step 12 Report and Consent from Affected Parties. Devising a Charging Method: Cited in Detail Further. Step 13 Supplier‟s propriety to be maintained for Payment of Taxes etc. Step 14 Benchmark of industry to be looked in long term Step 15 Both Parties to retain ownership of their Pre-existing material . Step 16 Reporting methodology-Formal Reports: Accessing scope in changing trends / Further change Step 17 reqd. /Audits etc. Step 18 Termination assistance (Period includes Procurement ,Transition e.g. KT etc.) to keep business As- Is Step 19 In Case of some Process-IPR not part of Customer contour, the Supplier must agree to sell it. Parties have to agree to pay back to other in case of End of Period of termination of services from Step 20 opposite side.
  36. 36. Out-Sourcing Scenario Our Major Focus Source: IBM Institute for Business Value and Economist Intelligence Telecom Industry
  37. 37. Different Out-Sourcing Models •Free Standing Simple Captive Model •Virtual Captives •Acquiring a Captive Over Time: Build-Operate-Transfer (BOT) •Divestiture or Spin-off of a Captive •Jointly-Owned Captive
  38. 38. Some Out-Sourcing Charging Models Monetizing Outsourcing Decision ! •Per Minutes of Usage payment Model-Revenue Share/Fixed Payment •Per Erlang-B based payment Model- Based upon Blocking probability. •Per Erlang-C based payment Model- Based upon Waiting, Queuing Probability, Infinite Samples •Per Engset formula based Payment Model- Based upon Waiting, Queuing Probability, Finite Samples •Payment for Data Based on Per bits based Model in case of Services like GPRS/PDSN •Payment for Radio Based on Spectrum utilization efficiency •Payment Based upon Coverage Model for Wi-Max •Payment based upon Capacity Model for Wi-Max •Payment based upon per new activation or Avg. Retention of Users on Fixed Pricing Model •Payment based upon Fixed Basis minus Network Failure Report or SLA Breach •Payment Based upon Performance based upon Industry Present Benchmarks. •Payment Based Upon Per Line Basis-Revenue Share/Fixed Payment …Contd.
  39. 39. Some Out-Sourcing Charging Models •Payment Based Upon Revenue Share/Fixed Payment on ARPU •Time & Material Based and T&M not to exceed Clause •Fixed Price Project Model •Mile-Stone Based Model Payment Schedule-Remote Development Project •Monthly Resource based Payment •Pure Revenue Share basis much similar to JV. •Revenue per Employee Model •Operational Expense per Employee Model •Revenue per Man-hour Model •Operational Expense per Man-Hour Model Other Possible Models: •Hybrid Cost Proxy Model-USO-Portugal Telecom •Probability Cost Model (PCM)-Monte Carlo Simulation •Toll Model •3rd Party Conduit Model The above models need consideration of several factors like Value Chain etc. Some may be hypothetical and yet to be introduced industry
  40. 40. Re-Course
  41. 41. Limitations  Non availability of data from a primary source especially for operational metrics  Key Performance Indicators and Parameters of QoS are as per Benchmarks set by Conventional Practices.  Parameters mapped to KPI are Telco Specific, may differ from operator to operator  Some Out-Sourcing Charging Models have been selected on hypothetical basis fitting with Telecom Business.  The scope is limited to Wireless Mobile Operations in core technical functions-Transmission, Core and Radio.  Further Financial & Business logics & strategies is required to choose Outsourcing as significant Operating Alternative.  Certain challenges were faced because of the scope of study which is strategic to any organization and not disclosed.  Limited time & disclosure of project.
  42. 42. Leverages to Telcos „Wireless Telecom Network Operations‟ project makes org.,with prior vast experience in Telecom cater the needs of larger audience-Old & New. Though other models for instance eTOM are available, still challenges about business decision making were needed to be addressed. In this economic recessionary period, rising customer expectation and demand for robust telecom network model businesses requires to be done in optimized way. Industry buzz-Outsourcing in Telecom Operation is new so rules are to be still to be set. According to a recent Gartner survey, more than 60 percent of companies do not do any security risk mitigation when outsourcing development.
  43. 43. Incase of further query feel free to right me: misra.vaibhav@gmail.com http://in.linkedin.com/in/vaibhavmisraindia Disclaimer: Information contained in the report has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Neither representatives nor any of its data or content providers shall be liable for any errors or for any actions taken in reliance thereon

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