Operators third party dilema rev a

Network and Operations Outsourcing
Have we gone too Far?

Prepared by
Rafael Andrade

Agenda

• The Era of Network Management

• The Era of Outsourcing

• The Market Change and Evolution

• How to make Outsourcing Work in the New Market?

• Conclusions
2
© 2011 JDS Uniphase Corporation | JDSU CONFIDENTIAL AND PROPRIETARY INFORMATION

Wireless Telecom Then – Simpler Networks

2G Mobility Interconnect &
HLR EIR/ Roaming
VLR

2G/2.5G
SS7 Billing
MSC STP
BTS

BTS
2.5G Core APNs
SGSN GGSN PDSN

Predictable Predictable Predictable Predictable Predictable
service devices traffic patterns users growth

• The world was predictable for operators 15 years ago
• In addition to predictable, these areas were one-
dimensional
• Many processes were build based on this model
• Operators had control of the network, users & services
3
3

Wireless Telecom Then – Network Management

Data from incompatible The old era of Network Management
and biased sources yields
Reporting
to information latency and
information loss… and no Ad Hoc
Reporting
Other
Reporting Prone to Latency
customer focus

Customer to Service Correlation

Prone to Data Loss Service Status (Up / Down) Call and Service Detail Records

Network and Service Billing and CDR Collection
Monitoring Platforms Platforms

4

Wireless Telecom Then – Organization Silos Formed

Operators divided internal functions to increase
productivity, predictability and control across the entire
organization. This worked initially, but with new
services, this complicated the operational model 5

Agenda





• Conclusions
6

Operators Acted on the Market Pressures
Get Capital Expense back Under Control……. Enable new billable services
Gbps
Required System Capacity
140 $30M

$$
Planned System Capacity
100 $10M

Time Increase Revenues and reduce Churn
Help manage soaring operating expense

7

Outsourcing Takes Off

8
http://www.oliverwyman.com/pdf_files/CMT07-Network_Outsourcing-07.pdf

What is Outsourced?

Source Nokia Siemens - http://www.nokiasiemensnetworks.com/perspectives/insight/efficiency-perspective
9

Agenda

• Background – The Era of Network Management




• Conclusions
10

New Challenges – Unpredictable Traffic Patterns

 Today, network traffic patterns change daily based on:
– The latest viral smartphone application
– The release of new popular smartphones that increase data consumption
– Managing creating and evaluating realistic and relevant traffic models move
from a hard to a close to impossible task.

 Generated +$100k
revenue/day
(advertisments) after
6 weeks
 9 days to reach 1
million users
 50 days to reach 50
million users

This type of Viral growth has impacted 3G greatly... And will get worse in LTE
11


 Initial performance and accessibility of the leading LTE
network in North America made headlines worldwide

 Then LTE smartphones were launched and immediately
KPI’s went from ’solid green’ to ’bright red’.

 The new user behavior, mobility pattern and traffic model
killed the performance of the “perfect network”

• Operators were not prepared to manage the new
behavior of the smartphone users

• The ability to accurately model and understand the
impact of new devices to the overall traffic is crucial!
12


 In Japan a commuter train delay due to a train accident during
morning rush hour caused a significant network outage.

 Many users used various IM services to communicate their situation:
– Line, Skype, WhatsApp, iDialog etc on both Android and IOS based UE’s

 This resulted in a significant Packet Switch network node overload
causing immediate network blocking and outage.

Unpredictable events lead to increased traffic congestion... Then no one moves
13

New Challenges – Users are the Problem & Solution

 Users continue to demand more from data networks

 They will continue to need more than operators typically
plan for

 We must monitor, follow and learn from the user behavior
– We can predict their next steps with proper testing & planning
– Uncovering spare capacity and identify possible revenue potential

If we dont learn from
3G, WiFi will
continue to be a very
good alternative to
paying for data
services

14

New Challenges – More Network Complexity
LTE/FemTo
EPC Mobility Interconnect & Roaming
eNode B
Home eNB HLR HSS
PDN-
MME S-GW
GW
UTRAN
Node B
Node B SS7
GPRS/UMTS/CDMA
MSC STP
GSM
Data Content & Services
SGSN GGSN PDSN
BTS
BTS EPC

CDMA App Servers
Mobile VoIP
AN
AN PCRF/
MSC GCF
MGW CSCF PCEF
Server
IPTV & VoD
WiFi/WiMAX
UMA SIG
G/W
MGCF MRF
Fixed Access

Cable/xDSL VoIP Signaling
Access
B-RAS
Node

• Less control of network usage, devices, services, traffic, etc
• Many tools, lots of data, but little information & knowledge
• Network operations are very reactive and rely heavily on NEMs
• Many KPIs but little Customer Service Experience Management
15
15

New Challenges – Operators Now Have Higher Demands

Without Control & Predictability, how can Operators Adapt to new
Demands while Creating Intelligent Services for Intelligent Users?
How to Lower CapEx How do I Enable New
& OpEx without Services with High
Degrading Quality? Quality?

Operators need to regain some control of their networks
and services in today’s challenging new world 16

Agenda





• Conclusions
17

Making it Work – Evolve with the Network
UTRAN – 3G radio GPRS packet routing Operator ISP ISP Application
Uu & Content
associated
LMU
AMR

Iub
SMLC

Other GPRS
Providers
Stand
PLMN e-mail apps content
alone
LMU GTP

Node B
RNC
GGSN BG
ATM2u/5c

Iur
BG Gp
AAA DNS RADIUS DHCP
GTP

Uu
ATM2u5c

GTP
Gp
Gp
AMR ATM5 IP IP
associated
Iub IuPS
Gn
GTP Gi Enterprise
PDN
Stand LMU SMLC
alone
LMU

Node B
SGSN GGSN
ATM2u/5c RNC

Gb
IuCS
Uu Gr Gc
Iub
MMSC micro/pico/femto cell
Gf
associated
LMU

DAS evolution
Call Control IP
Stand
alone
LMU

Node B

& operator specific services
Lg
Lh
IuBC Gs
GMLC

Le
Lc
CBE CBC EIR LCS HSS
Broadcast
client

Lg

SCP IP
(gsm

services
(gsm
SCF) SRF)

C
F

Um
D

LMU(b)
SMSC
LMU(a)
B
VLR

BTS GMSC

MSC Nc ISUP/BICC
server

Um
Abis Agprs
server
voice
Enterprise
Mc mail Mc

PCU
LMU(b)
Agprs A
A Nb
IP
OLO
LMU(a)

BTS BSC
(Ater)
MSC VLR
MSC
MGW
PSTN
Abis HR, FR, EFR
Lb MGW PCM PCM

HR, FR, EFR or AMR or PCM over ATM or QoSIP

HR, FR, EFR

GERAN – 2G/3G radio
SMLC

2G radio Packet-switched voice
Circuit-switched Roaming partners

If technology evolves, so must your processes, your people & your approach 18

Making it Work – Lifecycle is Important, No Shortcuts

1 2
• Evaluate the technology • eNB scheduling performance
against industry requirements
Lab Testing • Security and billing policies
Technology • Test technology
implementations & • Service performance in
controlled environments
Field Trials • Adopt an open process
Evaluations • UE performance
instead of a closed bilateral
field trial • MIMO performance gains

3 4
• Evaluate E2E performance • End user QoE/QoS
• Evaluate network coverage • Historical troubleshooting
Field Trials • Evaluate cell and node
Friendly • Handset IOT, conformance
& Vendor performance under load Customer and pre-conformance
• Evaluate SON and IRAT • Monitor handset performance
Evaluation capabilities and performance Trials • Trending, statistics and VIP
• Perform KPI benchmarking reporting

5 6 • Ensure SON is working
• Verify E2E visibility and
troubleshooting capabilities • Locate areas for expansion
• Monitor backhaul
Commercial • Validate user behavior
• Understand overall network
Optimization performance impact on end-
Launch handover performance and Growth user QoE
• Benchmark service
• Include integration with node- performance between macro
logging capabilities and mirco roll-out

19

Making it Work – Understand and Own Tradeoffs

 Operators may have various motivations for outsourcing:
– Increase profits
– Increase market share
– Increase shareholder gain
– Increase customer satisfaction
– Reduce churn

 In the end, this is a technology driven
business:
– Must balance finances and bleeding edge
technology A network with
– Cannot run the company with archaic mediocre 3G
processes and procedures services will have
– Cannot have a dysfunctional organization
mediocre LTE
– End user must be at the center of all
financial and operational functions services
20

Making it Work – Too Much of the Wrong Change

 Many operators have lost control by becoming the dreaded
“Dumb Pipe” the never wanted to become…
– Little to no control of apps (i.e. facebook, twitter, etc)
– Traffic patterns are unpredictable, thus uncontrollable
– Users have changed and will more often than not get what they want
– Devices are more variable than ever
– Operators have lost control of their users and what they do

 Many operators have lost control by outsourced too much
– Less engineers
– Less labs Network operations
– More Turn Key operations cannot move in the
– Too many cooks in the kitchen opposite direction of
– Some operators look like MVNOs
technology!
21

Agenda





• Conclusions
22

Conclusions

 Reducing costs to Zero does not yield infinite profits!

 Lead technology with first class teams & class processes

 Understand the tradeoffs

 Hire and grow talent… Keep your IP… Outsource Labor

 Control your network where it matters the most to you!
23

JDSU Portfolio – Enabling Control for Operators
Mobile Network Lifecycle Applications
Integration & Optimization, Diagnostic
Functional Trials & RF/RAN
Pre-
R&D Production Deployment
Operation & Performance Analytics &
Test Troubleshoot Engineering Reporting
Test

JDSU Optical & Ethernet Transport Test
Solutions
Base Station Test
Network Protocol Test (SA, NA, TPA)
Device Emulation and Capacity Testing
Drive Test
Active Test
Ethernet Backhaul Test & Monitoring
Mobile Assurance
Smart Network Application Platform (Packet Portal)
JDSU Services & Consulting

24

Thank You

25

JDSU Mobility Solutions Industry Recognition

2012 Test & Measurement Best in Test Finalist
- Signaling Analyzer Real Time (SART)

Internet Telephony Product of the Year
- 4G/LTE Smartphone Drive Test Application for Android

Mobility Technologies LTE Visionary award
- SART 7.1 release

MultiService Forum
- Center of Excellence Award

LTE-World Summit Award
- Drive Test & SART recognized for LTE test excellence

Internet Telephony Product of the Year
- SART 7.0 release
26

Operators third party dilema rev a

Recommended

Recommended

More Related Content

What's hot

What's hot (15)

Viewers also liked

Viewers also liked (19)

Similar to Operators third party dilema rev a

Similar to Operators third party dilema rev a (20)

More from Rafael Junquera

More from Rafael Junquera (20)

Recently uploaded

Recently uploaded (20)

Operators third party dilema rev a