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NSN Unite Day 1 Global Final

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NSN Unite Day 1 Global Final

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NSN Unite Day 1 Global Final

  1. 1. A fresh approach CEO Simon Beresford-Wylie communicates the mission and vision of Nokia Siemens Networks. Win a Nokia 3250 Enter our competition today – see page 23 A new converging world Industry analyst sheds light on the future of communications. Nokia Siemens Networks The new communications powerhouse. Global coverage, local reach How we’re uniting the world. Bringing networks to life. Welcome to unite, our new customer magazine unite Magazine Issue 2, 2007 Copyright 2007 Nokia Siemens Networks. All rights reserved.
  2. 2. 2008 2009 2010 2011 Need help to anticipate where your profits will come from in 5 years time? Bringing networks to life. With our depth of insights into customer behavior, markets and technology, we are uniquely placed to help our customers define future strategies. We also have the experience, both locally and globally, to turn these insights into real opportunities for long-term success. So start profiting from our knowledge today. www.nokiasiemensnetworks.com Copyright 2007 Nokia Siemens Networks. All rights reserved.
  3. 3. In this issue: 3 Welcome 4-5 Brave new world of communications 6-7 No question about the top priority 8-9 Taking ‘end-to-end’ all the way 10-11 Going from strength to strength for our customers 12-13 From research to service delivery and beyond 14-15 Global scale, local expertise 16 The business opportunity in environmental responsibility 17 Winning the next billion customers 18-19 A big player offering big benefits 20-21 Solving the big issues together 22 Broadest portfolio of products and services 23 Uniting to build the future Welcome to Nokia Siemens Networks – a new force that is shaping the future of the communications industry. Over the past few months, it has been exciting to take part in designing a company that has operators and service providers at the heart of everything we do. With this magazine, we aim to introduce ourselves to our customers, give you a glimpse of how we see the future – and show our commitment to building it with you. The timing of the merger of Nokia’s networks business and the Siemens carrier business is ideal. As the Internet and mobile communications have evolved from novelty to ubiquity, they have changed our society – and our lives – forever. The fusion of mobility and the internet will now only accelerate the pace of transformation. By combining the finest aspects of the Nokia and Siemens heritages, we will help you exploit this opportunity with a best-in-class product and solution offering underpinned by a unique services capability. We will enable the convergence of services and networks so you can master the challenges and deliver value to a dynamic market. Our aim is to set new standards for efficiency and innovation by marrying agility with global processes and presence. With a world-class fixed, mobile and services portfolio and global capabilities, we offer unmatched breadth in the communications industry for our more than 600 customers in all the world’s major markets. Uniting communities Beyond technology, the rise of virtual communities, which are driving everything from fashion to political change, is one of the most visible changes brought by the Web revolution. To serve and unite diverse communities requires a new and innovative approach to developing, launching and managing new services. Our goal at Nokia Siemens Networks is to help you engage and build these communities across new technologies, fuel your business and realize the full potential of new opportunities. We strive to: • Share our extensive user and technology insights to help you broaden the range of services you offer • Offer a unique methodology to help you boost your operational efficiency • Provide cost-effective solutions to help you win in fast growth markets • Help you offer consumers simplicity and personalization, regardless of the underlying network • Provide integrated solutions that improve service delivery and enable new business models for the different players in the value chain In short, we want to be your partner in the highly demanding and extremely exciting communications arena. With this in mind, we’re pleased to share this issue of unite, our magazine for you, our most important community. Simon Beresford-Wylie Chief Executive Officer You’re at the heart of everything we do Bringing networks to life. Simon Beresford-Wylie
  4. 4. 04 unite | issue 02 “In telecommunications, we are moving from a network-centric world to a user and usage centric one,” says Shiv K. Bakhshi, Ph.D., a telecoms analyst with IDC. Telecom user behavior in the monopoly environment of our not too distant past was circumscribed by what the network allowed. Not anymore.” Brave new world of communications Following market liberalization and other reforms, on the one hand, and technological convergence on the other, end-users today enjoy multiple modes of network access. This has altered the nature of the relationship between network operators and the consumer. “In today’s world, the consumer is king and no longer a ‘residual category’ after government and large corporations. Network operators and vendors who adapt to this reality are likely to thrive in the emerging telecom environment”, says Bakhshi. As he notes, operators are shifting from simply provisioning network access (competing for more subscribers) to ensuring the end-to-end user experience (competing to retain subscribers). Mobile operators recognize that in the steadily growing world of mobile data, provisioning robust, high-bandwidth networks is mere table-stakes. A desire to manage end-to-end user experiences and create a meaningful service offering is prompting them to look beyond their own networks at the entire ecology of communications, from content and platforms to devices and their operating systems – and everything in between. Convergence compels collaboration The convergence of telecoms, the Internet and media will force all players to collaborate because the competences needed to build meaningful solutions span several sectors. While many players recognize the need for collaboration in a converging world, they are afraid that “value” will bleed across sectors. Consider mobile search. Some operators may worry that big-name search engine providers will “hijack” subscribers on the strength of their brands. In response, they are looking for smaller players who can provide a “white label” search that mobile operators can brand as their own. What they may forget is that subscribers tend to resent these continued attempts to create walled gardens. Convergence is producing what economist Joseph Schumpeter called the “creative gales of destruction.” Operators must rethink their business models, and create new ones based on alliances and partnerships, which will allow them to offer complete, useful and attractive services. To learn more about the state of the communications industry, unite asked analyst Shiv K. Bakhshi, Ph.D., currently director in charge of mobility research at IDC, to share his views. Dr Bakhshi has written and lectured widely on the wireless and mobile infrastructure industry, and is a recognized expert in wireless network migration and convergence.
  5. 5. 05 “Operators must rethink their business models, and create new ones based on alliances and partnerships, which will allow them to offer complete, useful and attractive services.” Industry Analyst, Western Europe What does this mean for vendors? There are clear implications for vendors. In the past, they have tried to do everything in-house. Those days are over, in part owing to the proliferation of access technologies, but also to the growing role of IT platforms and software and the uncertainty over which technologies are most likely to provide long-term success. As Bakhshi stresses, now is the time to stop being a one-man band and take the role of an orchestrator. And just as the maestro conducting a symphony does not have to play every instrument, the orchestrating vendor does not have to provide every component of the solution. Instead, they can tap into the intellectual and financial talents of other players and still make the network sing. The principal infrastructure vendors (Nokia Siemens Networks, Alcatel-Lucent, Ericsson, Motorola, Nortel, etc), have one unique talent – they understand networks and they define and design the migration paths that are likely to take networks to the future. This gives them the legitimacy to be the orchestrator at the center of the business. To take this role, they need to transform themselves from a mere supplier, working at arm’s length, into a “partner” willing to share both the risks and rewards. Here, Bakhshi is alluding to the managed services business, which he sees as the new defining role for infrastructure vendors. As the principal managed services player and, in that sense, the principal network integrator, infrastructure vendors should scour the market for best-of-breed elements to design into their solutions. Which technologies will make it all happen? Bakhshi sees IMS (IP Multimedia Subsystem) as the cornerstone of fixed-mobile convergence and the new ecology that it will support. “There needs to be a common packet core that speaks the same IP language to any of the proliferating access technologies. At the end of the day, there is only one network. The last mile access technologies (Wi-Fi, WiMAX, cellular, DSL, cable, etc) are like access ramps all leading to the same highway,” he says. A seamless network environment with the promise of “any service on any network using any device, anytime” is still some distance away. Much needs to be done on the back-end, with OSS and BSS. The industry must devise ways of federating subscriber identity across different access networks (that may be controlled by different players). Today, there are still technical, business and probably regulatory hurdles to achieving this. Where will we be in five years? Bakhshi has some advice for network providers and their vendors: “They should stop the meaningless search for killer applications. Instead, they need to build a ‘killer environment’ that can support different kinds of applications as well as personalization, which is the underlying premise of successful mobile data services, and requires providers to meet the varied information needs of individuals.” For the infrastructure industry as a whole, consolidation is creating a healthier environment with strong players. By joining forces, players increase the effectiveness and reduce the cost of R&D. There are also benefits from rationalizing product and service portfolios and acquiring a complementary global footprint. Bakhshi predicts a future in which a few strong players will orchestrate complex webs of alliances with mid-sized and smaller technology providers. There will be very few monogamous business relationships. For Nokia Siemens Networks in particular, Bakhshi sees little obvious overlap – one company is strong in mobile space, the other in the fixed world. And given the small overlap in geographical footprint, the company is well placed to reap the benefits of consolidation and become much greater than the sum of its parts. Similarly, on the operator side, a handful of strong players in the converged space will offer compelling service bundles, elements of which are cobbled together through alliances with smaller, niche players in specific geographic enclaves. And consumers? They will have a wide choice of services, hopefully at competitive rates. For operators, the key will be to spend less on marketing and more on educating consumers to see the promise and value of the brave new world of communications.
  6. 6. No question about 06 unite | issue 02 the top priority Some 600 service providers in 150 countries. Working closely with these customers underpins the entire philosophy of Nokia Siemens Networks. Karl-Christoph Caselitz, Chief Market Operations Officer of the new company, took time out from his busy schedule to tell unite about the organization’s “passion to serve our customers.” Service providers are the front line of the communications industry. They are the ones to feel the heat of change first as end-users look for new services and the best deals matched to their own lifestyles. “The challenges of change that service providers face will be the top priority in our mindset,” states Karl-Christoph Caselitz, who heads up the CMO organization, which is responsible for operations that directly address service providers. A big job, but Caselitz is very clear about what needs to be done to achieve success. “Customer satisfaction, differentiation and relationships will be central to our way of working,” he says. “We have formed Customer Teams to help service providers succeed in today’s dynamic business environment. Each team will work with the service provider and look after its interests. As well as a team head and executive, these teams will comprise partners from the device business, and, most importantly, representatives from the service provider itself. “The customer teams will meet regularly to ensure that we are cooperating closely on the service provider’s roadmap and network evolution.” Tackling the major issues Caselitz’s long experience in communications, including his former role as President of Siemens Mobile Networks, gives him a strong insight into some of the many challenges that service providers face today. Chief among these, he says, is the need to control costs. “Mobile and fixed service providers are focusing on their cost structure,” says Caselitz. “These efforts will probably increase as revenue and subscriber growth slows in mature markets. Most new subscribers will come in new growth markets, increasingly from the low income segment. In addition, there will be sharper competition in all markets and pressure on tariffs. And we are already seeing moves to restrict high-margin roaming revenues in some mobile markets. Siemens and Nokia will be better able to implement their business plans which will see them have a bigger brand image and better network offers. Industry Analyst, Western Europe Karl-Christoph Caselitz
  7. 7. 07 “Consolidation that the market needs, e.g., noticeably less network suppliers but with a strong customer focus.” Operator, Europe “I see them as the biggest vendor. They always collaborate on resolving any problems. Both companies’ engineers work together to come up with solutions.” Operator, North America “Meanwhile, fixed line service providers need to defend their existing customer base and attract new broadband subscribers. They must do this with minimal investment because new subscribers will come primarily from rural areas. This will raise pressure on operators to reduce costs to maintain profitability.” Supporting the search for new opportunities Balancing out these pressures are great new opportunities. Operators have new scope to evolve their business model, from providing bandwidth to generating content and capturing new revenues. Sales and business models could also be adapted to address other growing markets. In addition, over the next three years, operators and service providers will have new opportunities to boost their business with broadband wireless technologies for residential, enterprise and mobile customers. “Part of our own challenge will be to support service providers as they search for new revenue sources from enterprise and residential subscribers, as well as from new applications,” says Caselitz. “The continuous introduction of new applications, flexible tariff schemes and new technology will be prerequisites to attracting and defending the customer base. “Our complete portfolio in fixed, mobile and fixed-mobile convergence provides the best-in-class and most balanced experience in the industry. We will apply the knowledge gained from all world markets to each service provider individually,” he continues. “We have the capability to roll out low-cost solutions quickly and efficiently in mature and growth markets through our leading market positions in both. “Nokia Siemens Networks will be the world market leader in all regions that show high population growth and fast subscriber growth, including Latin America, Asia Pacific, the Middle East and Africa.” Adding up the combined benefits The combined networks businesses of Nokia and Siemens bring compelling benefits to service providers. Close cooperation with Nokia, the world leader for mobile devices, puts the new organization in pole position for all mobile service providers in launching new applications. Links to Siemens, with its presence in many industry segments and nearly all markets around the world, provides understanding and competence for future expansion into new markets. “Our strengths and differentiators can be summarized as service capability, innovation, supply chain management, with fast, lean roll-out, a complete portfolio, and leadership in applications,” Caselitz explains. “We are in the unique position of bringing together two companies with complementary strengths to form an even stronger combination: Nokia, recognized for its lean and fast business approach, and Siemens, renowned for its global presence and project management capabilities, and both companies known for their strong tradition of innovation.” In the new and constantly changing world of communications, Caselitz sees new relationships emerging: “We will have to drive new revenue together with fixed and mobile service providers. The old ‘customer-vendor’ relationship will become obsolete. Future growth will involve vendors, application providers, ISPs, terminal developers, content providers and, of course, service providers.” A promise to all customers In conclusion, Caselitz emphasizes that Nokia Siemens Networks offers comprehensive end-to-end capability encompassing the broadest product and service range solution. He says: “Our Customer Teams are passionate about serving and consulting with all our service provider customers. The next few years will be decisive for driving up ARPU through new end-user experiences and applications, so the presence of a player with a complete portfolio and a close relationship with the world’s foremost device manufacturer will make a major difference.”
  8. 8. Taking ‘end-to-end’ all the way ‘End-to-end solution’; it’s one of those buzz phrases that suppliers often use. And we all know what it means – right? Well think again, because Nokia Siemens Networks is redefining end-to-end. It’s a whole new way of thinking about your business. When vendors talk about providing their customers with an end-to-end solution, they typically mean all the technology components needed to supply a service or run part of their business. Not just the products, but the design, deployment and operational support to ensure that all the boxes are properly integrated to provide the benefits promised. Nokia Siemens Networks brings an unmatched breadth of know-how and experience to this task. Our infrastructure products cover the full spectrum of radio, fixed line, convergence and transport technology, both for access and services core, plus complete network and service management solutions. Along with reliable deployment to ramp up infrastructure for business, the benefits include multi-vendor capability for fast time-to-market and profit, user satisfaction management, and more. All well and good. However, when we talk about our end-to-end solutions, we go far beyond conventional thinking. What sets us apart is not just our in-depth technology know-how, but our unrivalled insight into user behavior and our deep, holistic understanding of service provider business opportunities and challenges and the evolution of their business models. Add to this our deep knowledge of devices, covering their capabilities, evolution and use, and you get an offer that gives service providers a head start over the competitors. The combination of technology and end-user know-how is also important in another respect. We help service providers match technological maturity and performance with the lifecycle phase of the services market. So, service providers can offer the right services at the right time to the right market segment. And because we understand user needs, we design technology that takes these needs into account. The result is simplicity for end-users with solutions that hide technical complexity. Knowing how end-users behave and what they want How do we gain this understanding of how end-users communicate and what they want? This know-how comes from wide-ranging end-user research and close cooperation with service providers. “We have recently developed a sophisticated customer segmentation model that is one of the most extensive in our industry,” says Ulla Koivukoski from Nokia Siemens Networks. “We have gathered more than 10 billion data points from some 77,000 end-users worldwide. In addition, we have focused on specific end-user issues such as drivers and barriers for 3G, Personal TV, Mobile VoIP as well as reasons for churn and customer loyalty.” This database of detailed information provides vital intelligence on the kinds of services end-users want, the best time to launch a service and the most effective marketing and billing strategies. As well as enabling service providers to apply the best selling and pricing models, the data reveals trends and untapped market segments, opportunities for new services and effective ways of retaining existing end-users or attracting new ones. “We want to share this information with our customers and help them make the best choices by analyzing their local market and matching new services and technologies with their business aims,” Koivukoski explains. 08 unite | issue 02
  9. 9. 09 “We want to share this information with our customers and help them make the best choices by analyzing their local market and matching new services and technologies with their business aims.” Ulla Koivukoski “Your service provided our O&M employees with the opportunity to adopt the best O&M practices... This led to a considerably shorter learning curve.” Operator, APAC Understanding the service provider business and how it is changing Service providers need a clear picture of their positioning in today’s business jigsaw. We have created a sophisticated Communications Ecosystem framework to help them identify their current business value networks, decide which assets to develop, and clarify which roles to target to offer higher value for end-users and grow profitably in the face of intensifying competition. Over the past year this innovative framework has found much resonance with our customers around the world, with one European service provider saying: “This has provided us with a fresh and new look at the industry and motivated us to revise our strategy.” Whatever the market, this framework helps service providers redefine their core competencies to be able to offer truly customer-centric service offerings. It provides an important tool for aligning business, organizational and technological strategies and resources to help improve profitability and meet end-user demand at a lower price. We have also developed a three-step operational efficiency improvements practice that has been implemented successfully on five continents (for more information, see pages 20-21). Service providers that have done this benchmarking with us have used the results widely within their organizations, both to create and understand their efficiency levels, as well as to set future efficiency targets and budgets. Taken together, the result is a greater understanding of the changing business environment. The Communications Ecosystem framework helps service providers define the drivers and enablers for future business options, while operational efficiency benchmarking is a tool for analyzing internal capabilities and performance. Technology know-how underpins success Over the years, both Nokia and Siemens have separately built strong reputations as technology leaders who understand communications and demonstrate innovation in many areas. As one company, we are creating a vendor at the forefront of technological thinking. Whatever role a service provider takes in the Communications Ecosystem, we have complete technical solutions for integrating and managing increasingly complex technologies. This allows service providers to offer end-users reliable, easy to use services that work seamlessly across any device. The support to make it all happen Using these insights and capabilities, our end-to-end solutions are built to manage complexity and deliver simplicity according to end-user preferences. We achieve this by taking into account the service provider’s role and business aims and using innovative technology to enable secure and reliable end-user services that provide the highest user delight. Our vast pool of experts, from business consultants and network designers to integration specialists, provides all the support needed to plan and deploy advanced services. Identifying new opportunities, acquiring base station sites, dealing with regulatory issues in new growth markets, supporting customer care, building billing systems, and managing the network infrastructure for services throughout their lifecycle – the scope of our support covers the full range. To help service providers launch and market services successfully, we collaborate with them, from sharing strategic insights to implementing co-marketing activities. And our range of managed services enables service providers to launch services in the shortest time and with limited upfront investment, leaving them free to focus resources on their core activities. All of this adds up to end-to-end solutions covering technologies from devices to infrastructure, helping service providers adopt the role of their choice in the value networks and serve end-users from individuals to members of varied communities. With our support, service providers can launch a portfolio of new services matched to their local market and business aims, unlocking new opportunities and all with optimal investments and maximum revenue generation. With Nokia Siemens Networks as their partner, service providers gain access to the insight, expertise and technology they need to help them define and win their future business.
  10. 10. 10 unite | issue 02 The emergence of Nokia Siemens Networks from the heritage of two trusted names in communications offers a rare opportunity to build a new company, tailored from the beginning to be customer-driven. What strengths do Nokia and Siemens bring to the new company? Bosco: For starters, each company brings to the relationship a successful heritage in the field of communications. The combined number of customers that Nokia Siemens Networks now serves is over 600, and in every region of the world. Our company unites two great engineering and R&D organizations that believe deeply in the power of innovation. The two companies also contribute complementary product focuses that address both sides of the convergence equation – Siemens, on the fixed network side, and Nokia on the mobile network side. Nokia’s deep understanding of the mobile device market and end-user behavior is also a notable advantage. Bosco Novak, Head of Human Resources talks about the impetus for the merger and how the foundations for its future are being laid. And critically, we are merging two great global organizations with people who share many of the same values – respect, integrity and a deep sense of responsibility toward their customer relationships. What is happening in the communications market that supports the creation of this new company? Bosco: We are seeing a very clear shift in end-user behavior that is changing the way service providers and equipment manufacturers do business. Consumers are forming into communities as Web 2.0 emerges. At the same time, mobility is playing a larger role in their everyday lives. These shifts are driving the convergence of services and networks and impacting service providers’ business models. To be a partner in this convergence going forward, our solution portfolio needs to stand much stronger across the different customer segments. Moreover, scale has become an important requirement. It contributes to controlling costs and meeting our customers’ demanding roll-out schedules. As a united company, we offer a more comprehensive solution portfolio while enjoying the advantages that our scale gives us. This means that we are more capable than ever to respond to our customers’ evolving business models. An underlying foundation of any company is its values. What are the values of Nokia Siemens Networks? Bosco: We have invested a lot of time on this issue, what we call ‘creating our cultural direction’. This is very important because it influences our choice of leaders, workplace structure, objectives setting, assessment process and so many other things. Going from strength to strength for our customers
  11. 11. 11 Based on the work we have done so far, we have identified five cultural rallying points for our new company. They are Customer Focus, Open Communication, Being Valued, Achieving Together, and Innovation Leadership. Sharing these cultural directions will take time. We are currently going through a dialog process with our 50,000 plus employees, who are helping us further refine and give living substance to these values. But getting this right has the highest priority. We are aware that some two-thirds of all mergers fail because the partners cannot resolve their cultural differences. And what about the company’s Code of Conduct? Bosco: This is something we take very seriously. We have a very clear Code of Conduct, which is being communicated to all of our employees. Among other things, it addresses respect for ethics and the law, and our commitment to workplace best practices. But in a much broader light, it goes well beyond compliance issues. We see it as an enabler for other issues like diversity and equitable workplace practices. Are there certain brand attributes you would like to associate with the company? Bosco: Yes. While we are the product of two great names in the communications business, above all we are a new company that is creating a new brand identity. We believe that the essence of our brand is about uniting communities. That is to say we are enabling both geographically networked communities and virtual communities. The promise that we want our brand to convey is that we deliver flexible solutions suited to service providers’ dynamic and competitive business environment. The attributes of our brand are what we promise to be: Pioneering, Passionate and Pragmatic - in everything we do. So what do we mean by this? Being Passionate to us is about emotion. It starts with inspiring leadership and continues with engaging people. It also addresses how our company is going to make a difference, how it is going to bring new value to our customers, because it matters to our employees. The Pioneering attribute speaks to innovation leadership, being out there, trying new things, taking risks and having the guts to be entrepreneurial – knowing that not everything will go well, but for sure learning from your mistakes. And on the Pragmatic side, we recognize that the speed at which our industry is changing requires people to be empowered, so we extend a high level of trust in them to act boldly for the benefit of our customers. But with that empowerment comes the responsibility to make customer-driven decisions in a pragmatic way. We want to avoid an unnecessarily formal and bureaucratic way of doing things. Bosco Novak What is your reading so far from the market about this merger? Bosco: It’s been amazing! I have spoken with many consultants and people who have been part of so-called ‘mega-mergers’ before and the consensus is one of astonishment at how fast Nokia and Siemens found each other. It is no longer about ‘us’ at Nokia and ‘they’ at Siemens; it will be about ‘us’ going forward as a new company, and ‘they’ as the competition. This is a positive signal for our customers who want business-as-usual as fast as possible. They want to see that we care about them and can be trusted to deliver on our commitments as before. We are doing that now by finding each other in the new company and building our team for the future.
  12. 12. 12 unite | issue 02 Mini-profile: Radio Networks From research to service delivery and beyond The six Nokia Siemens Networks Business Units offer world-leading expertise and end-to-end products, services and solutions. On these pages, each unit outlines how it aims to help service providers by being passionate, pioneering and pragmatic. Key objective: To help service providers maximize profits from mobile data by providing leading-edge multi-radio solutions and by reducing service providers’ CAPEX and OPEX Solution highlights: All key radio access technologies: GSM/EDGE, WCDMA 3G/HSPA/I-HSPA, TD-SCDMA, WiMAX and LTE Pioneering: 2003 World’s first live HSDPA air interface call 2005 World’s first live HSUPA air interface call 2006 World’s first 900 MHz HSDPA call in a commercial WCDMA/HSPA network Word from the top: “Our pragmatism helps with service provider costs. We put ourselves in our customers’ shoes. We know their biggest cost is in radio, and site acquisition issues and the operational costs associated with those sites.” Ari Lehtoranta, Head of the Radio Access Business Unit. Mini-profile: Broadband Access Key objective: To meet increasing bandwidth demand and support Next Generation IP Networks by providing complete solutions to help service providers reduce CAPEX and OPEX, increase efficiency and build higher capacity Solution highlights: Access solutions for fixed and converged networks: DSLAM (DSL Access Multiplexer), PON (Passive Optical Networks), Ethernet Access Switching, Metro Switching, and Narrowband / Multi-service Pioneering: 2004 New ADSL2+ technology line cards 2005 First GPON lab deployment 2006 First VDSL2 compliant IP DSLAMs 2006 First commercial GPON Triple Play Solution Word from the top: “We aim to reduce the TCO for every customer through today’s broadest offering of fixed and mobile solutions. We are passionate in investing time with our customers to support them through the explosive growth in bandwidth demand.” Martin Lüst, Head of the Broadband Access Business Unit. Mini-profile: Service Core and Applications Key objective: To focus on service providers’ continuous demands for new revenue-generating services while keeping their existing business profitable Solution highlights: Voice, data and multimedia platforms with advanced middleware functionalities. Also provides systems to support service provider business processes, such as convergent charging Pioneering: 2004 First commercial end-to-end 3GPP IP Multimedia Subsystem 2005 First IMS in live commercial use 2005 First commercial IPTV deployment (ADC) 2006 First Personalized VoIP in commercial use (NVS 1.0) 2006 first to present service continuity (VCC) between Radio and WLAN Word from the top: “Our consultative approach will bring benefits in forming the strategies of our customers. We can help them work out how to react and develop their business models to cope with future trends.“ Christian Unterberger, Head of the Service Core and Applications Business Unit.
  13. 13. 13 Mini-profile: IP Networking and Transport Key objective: To help service providers increase their revenues by improving time to market and optimizing life cycle costs for their service offerings Solution highlights: Multi-haul WDM solutions including Metro, Regional, Long Haul and Ultra Long Haul Next Generation SDH multi-service provisioning platform and packet transport portfolio Carrier-grade IP network solutions covering core, BRAS, edge, multi-service and site routers PDH, SDH access, SDH trunk and PMP (LMDS) microwave link systems Pioneering: 2004 First 40G live traffic 2005 First Ethernet L2 switching with RPR 2006 First surface mounted RF technology based microwave radio product up to 38GHz 2006 20,000 microwave transceivers per month milestone achieved Word from the top: “Transport is integral to our customers’ success. No matter what the application may be - from straight data to peer-to-peer downloading - we can tailor the best possible solution.” Bernd Schumacher, Head of the IP Networking and Transport Business Unit. Mini-profile: Operations Support Systems Key objective: To provide software that automates operational and business processes to reduce complexity for service providers and improve their business performance Solution highlights: Interoperable software to automate operations and business processes, reduce Total Cost of Ownership (TCO) and raise customer life-time value by addressing key challenges of complexity, differentiation and customer loyalty Pioneering: 2002 World’s first AMR network implementation 2002 World’s first 2G/3G network management solution on the same platform 2003 World’s first GSM/EDGE-WCDMA Interworking 2003 World’s first EDGE network Word from the top: “Our passion lies in driving down costs for our customers. We help service providers to directly address their challenges, such as delivering more at lower cost, raising ARPU and optimizing CAPEX and OPEX. We’re also the key to launching and managing new services for end-users.” Christian Fredrikson, Head of the Operations Support Systems Business Unit. Mini-profile: Services Key objective: To improve customers’ Total Cost of Ownership by helping them to reduce OPEX and generate new revenues Solution highlights: Installation, commissioning, maintenance Consultation Integration Managed services Hosting Pioneering: 2004-2006 Bharti India signs Managed Services deals worth USD 800 million 2006 Fastest BTS swap in the world: 451 BTS swapped in 4 months 2006 Global Networks Solutions Center opened in Chennai, India Word from the top: “Our pragmatic approach ensures compliance and on-time delivery, helping our customers sleep at night. With the new company we have both a global and local reach that is unique to the market.” José Costa e Silva, Head of the Services Business Unit.
  14. 14. 14 unite | issue 02 Global scale, local expertise You can count on the fingers of one hand the number of countries where Nokia Siemens Networks doesn’t have a presence. Global scale and local expertise will combine to bring unrivalled benefits to service providers, wherever they are, whatever their business. What differentiates Nokia Siemens Networks is its global scale allied to a strong, local presence. Expert teams are working towards creating a company structure that harnesses the best attributes of both Nokia and Siemens to offer the market’s broadest range of solutions, but with the flexibility to work in rapidly evolving markets. “The talent and capacity of their people. They have the right kind of people to do the right kind of job. They have the expertise to deliver.” Operator, China And all with an eye on how to help fixed and mobile service providers everywhere achieve their business aims against intensifying local competition.
  15. 15. 15 Melding two world-leading companies presents a great opportunity, as Michael Hofmann, Head of Marketing, explains. “To be as flexible as possible, we are designing a completely new structure rather than simply keeping the existing make-up of the two companies. The communications industry is undergoing profound change, often forcing service providers to revisit their traditional business models. They need a partner that can quickly grasp and understand these rapid changes and really help them meet the new demands.” The combined R&D capabilities of each company are a key strength of the merger. Siemens has a long and outstanding record of more than 100 years of successful innovation in a wide range of industries, while Nokia has been a driving force in shaping mobile technologies. “Innovation through R&D is in our genes and we will build on this tradition going forward,” says Hofmann. He also points out that the new company’s global strengths, such as its world-beating logistics and customer fulfillment processes, are complemented by a powerful local footprint. “The local presences of Nokia and Siemens fit very well. Siemens has traditionally had very strong local relationships that we can build upon.” Since the merger was first announced, we have consulted with our customers, keeping them up-to-date on our progress, and explaining the benefits involved. “So far, the reaction has been very positive. Customers and analysts understand the logic of the merger and that it is based on clear benefits,” says Hofmann. “By understanding the challenges that service providers face, we can put together our portfolio of products, services and solutions in a smart way to build solutions that create new opportunities for our customers. This is our overarching principle.” “You were able to propose and implement an optimization solution that enabled us to roll out our 3G network with the desired quality of service. You have your commercial skill set right – skilled people who are capable of planning a high quality of service. This project proves your capability and scope in such services and that you are globally orientated with your services offering.” Operator, China
  16. 16. The business opportunity in environmental responsibility The communications industry is expected to do its part in protecting the environment. unite 16 | issue 02 For Nokia Siemens Networks, the goal is to go a step further and turn environmental responsibility into clear benefits for our customers. Consumers, industry and governments are looking to create a sustainable future. And increasingly, a company’s environmental record is drawing the attention of investors, shareholders and other stakeholders such as non-governmental organizations. Technology has a major role in this effort and we are making environmental performance an integral part of our products, services and solutions. Beyond fulfilling regulatory requirements, we also engage with service providers to turn environmental performance into improved competitiveness, differentiation and profitability. The power of product lifecycle thinking “Our approach to achieving our environmental goals is based on product lifecycle thinking,” cites Juha-Erkki Mäntyniemi, Head of Environmental Affairs at Nokia Siemens Networks. “This covers everything from materials selection and production processes to product use, disassembly and recycling.” An environmentally sound product lifecycle is only half the story. We realize that implementing environmentally friendly network solutions also requires close cooperation with service providers. Our solutions comprise network design to optimize the number of base station sites and antenna masts, as well as statistical modelling to reduce inefficient drive-testing. Other solutions include low power consumption base stations, more compact equipment, optimized service lifetimes, and enhanced remote management capabilities. “It’s common sense that good business is also environmentally sustainable business,” Mäntyniemi observes. “It isn’t just about environmental benefits; there are financial benefits, too.” “Environmentally responsible efforts can be leveraged to create competitive advantages for operators” Juha-Erkki Mäntyniemi
  17. 17. During the past 24 hours, more than a million new subscribers joined the communications party. Tomorrow, another million will connect. For many people, the mobile phone will provide their first experience making a phone call or using the Internet. Over the next few years, communications will connect the world like never before. According to Nokia Siemens Networks’ latest estimates, the 3-billiion mobile subscriber milestone will be reached in 2007, with 4-billion expected in 2010. Some 80% of new subscribers will come from countries with a large lower-income population, as well as a fast expanding higher-income segment. Both segments offer staggering growth potential for service providers. The Internet for all Such is the mobile’s allure that low income end-users often prioritize their spending in order to afford a device. What they have seen is that mobile phones bring an opportunity to improve daily life, by staying in touch and finding new ways to earn a living. The Internet has a growing role here and offers service providers a great opportunity to differentiate and win new revenue. While more affluent end-users adopt the entertainment and multimedia services seen in advanced markets, lower-income subscribers will increasingly depend on basic browsing, email and messaging for job hunting, trading and a myriad of other practical applications. Innovation will win the day Innovation is the hallmark of Nokia Siemens Networks’ approach to new growth markets. A good example is our cost control solution, which helps service providers tap into the potential of shared phone businesses. The solution eliminates a common lack of trust, particularly in urban areas, between customers and the phone owner by ensuring that the correct costs are charged based on the actual tariff before the call is made. The customer pays the amount that he or she wants to spend and the shared phone owner keys in the correct amount on the device. It’s that easy. Working with all stakeholders With lower income subscribers contributing ARPUs as low as USD 3, maintaining profitability means service providers must offer voice and data services that end-users can afford. Nokia Siemens Networks works closely with service providers to achieve affordability. We have a proven solution for building urban and rural coverage and capacity cost-effectively. Our core network solutions and our range of services from consultancy to operations will enable service providers to bring innovative end-user services to market quickly and run them reliably. We also place great emphasis on working with other stakeholders that influence communications development in new growth markets. 17 The work of regulators is critical in creating the extensive access to communications that is vital for a country’s development. Policy makers can help boost economies by encouraging competition to drive down costs. A liberal environment is essential for widespread communications to become a reality. Both Nokia and Siemens have worked with regulators to promote greater liberalization and transparency in the communications market. These efforts will continue and our combined scope as Nokia Siemens Networks will make us even more effective. Our strong local presence in all new growth markets gives service providers a head start in satisfying the hundreds of millions of new customers that the coming years will bring. Winning the next billion customers “Your managed services know-how, plus your proven track record when it comes to operating and enhancing networks worldwide, were key drivers in helping us make this decision.” Operator, APAC “The success of its operations outsourcing strategy prompted Mr Sunil Mittal, Chairman of Bharti Enterprises to say recently that operators in advanced, saturated markets could learn from the operational cost management strategies employed by emerging market operators.” 3GSM Daily News, 15 Feb 2005
  18. 18. 18 unite | issue 02 A big player offering big benefits Both Nokia and Siemens command leading positions in many areas of communications. Combined, these advantages make Nokia Siemens Networks a frontrunner in all key carrier markets. We aim to bring new competitiveness and more choice to markets all round the world. So what? As a service provider, what do these big claims mean to you? How can Nokia Siemens Networks help you achieve your own business aims? To find out, unite digs behind the big numbers of this new communications powerhouse. Did you know? Over 600 fixed and mobile service providers So what? We are ready to deliver seamless fixed-mobile convergence solutions to our customers. As a leader in both mobile and fixed, we have unrivalled insight into convergence and how service providers can address this biggest of opportunities. Did you know? Over 150 managed services contracts More than 500 systems integration projects So what? Managed services enable service providers to focus on new skills for the future, helping drive up efficiency and revenues from innovative services. With one of the world’s largest and most experienced service organizations, we have proven expertise combined with local knowledge that can make a real impact on a service provider’s profitability. Did you know? 1.1 billion people use our networks So what? And this number is growing fast. We have spearheaded in new growth markets with network solutions that enable low income end-users to enjoy the benefits of mobile communications. We are also No. 1 in IP transport for mobile voice, helping service providers win in advanced markets.
  19. 19. 19 Did you know? Leader in wireless - 700 million mobile subscriber customers So what? Our presence in the market, providing innovative infrastructure, services and applications is built on deep insight into end-user needs and desires. We are No. 1 in swapping competitors’ infrastructure. Did you know? Broadband access leadership built on innovation So what? We have consistently been first with new broadband technologies – world’s first IP DSLAM; world’s first VDSL2 compliant IP DSLAM; first commercial GPON Triple Play Solution; and many more. Our strong offering in multi-service access on copper and fiber, both first and second mile access, enables service providers to invest flexibly and concentrate on growth. Did you know? Strong no. 1 in 3G contracts So what? We offer one of the world’s most extensive radio access portfolios. The revolutionary Flexi Base Station platform, for example, is key in helping to exploit the mobile data opportunity with multiple radio technologies. We are pioneering WiMAX and have achieved a world first in Wideband CDMA 900 – replacing CDMA 2.1. Did you know? No. 1 in IMS fixed and mobile solutions So what? We are the top provider of access-independent and access-aware all-IP packet data networks. Our solutions help service providers control what’s happening in real time and optimize their networks to match their business goals and create sustainable revenue. Did you know? No. 2 in OSS license sales So what? Nokia Siemens Networks gives service providers one solution for managing their entire network end-to-end. One look and feel means simplicity, and simplicity translates directly into reduced OPEX. We consult with our customers and bring immediate benefits.
  20. 20. Turning headaches into opportunities is one of Nokia Siemens Networks’ prime missions. Three challenges stand out: revenue-building, cost-cutting and convergence. We have developed solutions to help resolve each one and offer service providers new ways to build their business. Solving the big issues together What are the main communications issues that regularly occupy your thoughts? Time and time again service providers from around the world tell us that their three biggest challenges are: • How to build new sources of revenue with advanced services? • How to reduce day-to-day operational expenditure? • How to realize the full potential of convergence? If anything on this list strikes a chord, then read on. Nokia Siemens Networks offers solutions to help tackle them all. 20 unite | issue 02
  21. 21. 21 Step 1: Benchmarking First, current efficiency levels are measured against the markets top performers, and the results are used to set targets for various functions. With a unique benchmarking tool, we assess 30 areas of the service provider’s business, including marketing and sales, networks, customer service and IT and support departments. Step 2: Assessment Once the benchmarking has been completed, additional work is often needed to evaluate the efficiency and quality of various work processes. This usually involves interviews with service provider personnel and a review of the Key Performance Indicators for each department. The results are then compared against data on customer loyalty, usage patterns and customer preferences gleaned from market research, helping to identify the root causes of low operational efficiency. Generating new revenue Recent history provides many examples of new services launched with disappointing results. Failure often stems from a poor analysis of what end-users really want. Instead, the underlying technology has dazzled the provider, obscuring the service’s lack of real revenue potential. Data services are widely considered to offer the best way to win new income sources. We estimate that annual revenues from mobile services will rise globally by more than 40% between 2007 and 2010, from €459bn to €662bn. Yet beyond SMS, there is very little end-user awareness of advanced data services. For any new service to succeed, it must fulfill a need, provide a benefit and enrich a lifestyle. The first step in devising and executing a successful service strategy is to thoroughly understand user behavior and market trends. This is one of Nokia Siemens Networks’ key strengths. “To create and launch new services that consumers value requires insight and careful market analysis. We have access to extensive market research that gives us an unrivalled understanding of users and what they want. We share this insight with service providers,” explains Elina Välimaa from Nokia Siemens Networks. Once this vital early analysis and planning has been done, we work closely with our customers to provide the resources needed to rapidly design and launch a total service offering, not just a patchwork of separate end-user services. And when the services are up and running, we also support the routine operations even by hosting these services and optimizing them as they evolve and grow. Improving operational efficiency Improvements in operational efficiency translate directly into higher margins and profitability. We have identified a potential gain in profits of 13% globally if all service providers were at the same level as the top performers in their own market. For many operators and service providers, this figure could be even higher. Step 3: Solutions to improve operational efficiency Nokia Siemens Networks provides a full range of solutions to raise operational efficiency where it falls short. Service providers can significantly reduce costs by optimizing existing assets and processes with our network and service management solutions, hardware services, managed services and competence development. Further cost savings can be achieved by modernizing operations and network build-up to handle rising traffic volumes. To help achieve these gains, the following three-step process has been developed to boost operational efficiency. Taking advantage of convergence IP-centric convergence is a key trend today, promising richer and easier communications whenever and wherever users need services, on the device of their choice. Convergence will undoubtedly create substantial global demand, as well as bringing new ways to reduce operational and capital costs by unifying and optimizing separate fixed and mobile networks. To exploit the opportunity, we can help service providers analyze how to prepare their business for IP convergence. It is vital to find partners who not only understand the issues, but are widely experienced in developing and implementing converged solutions. For service providers of all types, whether fixed, mobile, cable, ISP or virtual network, Nokia Siemens Networks provides complete systems encompassing networks, network services and systems integration. We offer common unified network platforms that embrace all technologies, including broadcasting.
  22. 22. 22 unite | issue 02 Manage the challenges of a converging world • Nokia Siemens Networks offers the broadest portfolio of products and services to help service providers solve today’s toughest challenges, including the convergence of networks and services • Our flexible operational and business structure is built to meet the demands of the convergence and horizontalization of networks • We have the scale to be able to invest heavily in R&D to create outstanding innovation
  23. 23. 23 Uniting to build the future We hope this magazine has helped paint a clearer picture of Nokia Siemens Networks and how we can work together to meet tomorrow’s challenges. After all, we are the community that will be transforming our industry to take communications to the next level of excitement and dynamism. One fact about the future stands out above all others. It is that sweeping changes are coming and all of us in the communications industry face new opportunities. On pages 4 & 5 industry analyst Shiv Bakhshi points out that points out that operators must look beyond their own networks at the whole ecology of communications, from content and platforms to devices and operating systems – and everything in between. An important strength and talent of Nokia Siemens Networks is our understanding of the new ecology of communications. We understand how end-users behave and what they want. We understand fixed and mobile technologies and how they are converging. We understand that our success depends on our ability to help our customers transform their business by adapting to change. And we want to share that understanding with you. We call our new magazine unite, reflecting the future we face. End-users are uniting into communities, and to serve them successfully, vendors and service providers need to unite and work together more closely than ever. Our passion is to inspire. We aim to work with you to understand your needs exactly and to use our portfolio of products, services and solutions to help you create a winning end-to-end communications experience for your customers. Michael Hofmann Head of Marketing WIN a sensational Nokia 3250 Xpress Music Phone! Answer this simple question and you could be the lucky owner of the latest Nokia music phone which holds up to 750 of your favorite tracks. Q. Approximately how many people use our networks? Simply email your answer to unite@nsn.com before 1st July 2007. Good luck! Full terms and conditions available upon request. Prize may be different from image shown. Nokia Siemens Networks Karaportti 3 FIN-02610 Espoo, Finland www.nokiasiemensnetworks.com To subscribe to future issues of unite please email your name, company name and job title to unite@nsn.com with ‘SUBSCRIBE’ in the subject line.
  24. 24. Wouldn’t it be nice if the guys building your network knew your customers as well as you do? Bringing networks to life. People today are communicating, sharing and entertaining each other like never before. They are forming new communities that are driving the future and making the world a more interesting place. Harnessing all this potential will bring your network to life and drive your business. And we know how to do it. www.nokiasiemensnetworks.com Copyright 2007 Nokia Siemens Networks. All rights reserved.

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