SMSC Competitive Overview 08

7/25/2019 SMSC Competitive Overview 08

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SMSC

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Competitive overview

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S*SC 2 Competitive overview

Table of Contents

1 Competitor Groups...............................................................................................3

!-! 0rime Competitors----------------------------------------------------------------------------------------------------------------$

!- 3e( *ar1et 0la(ers--------------------------------------------------------------------------------------------------------------- $

!-$ Alternative competitors---------------------------------------------------------------------------------------------------------4

2 Key Competitors...................................................................................................5-! LogicaC*+ 5loo1ing in first6-------------------------------------------------------------------------------------------------7

-!-! S.%T-------------------------------------------------------------------------------------------------------------------- 7

- Sc,lum"ergerSema--------------------------------------------------------------------------------------------------------------

--! Compan( %verview-----------------------------------------------------------------------------------------------

-- 0roducts----------------------------------------------------------------------------------------------------------------

--$ Services-----------------------------------------------------------------------------------------------------------------8

--4 0artners,ips----------------------------------------------------------------------------------------------------------8

--7 Customers-------------------------------------------------------------------------------------------------------------8

--9 S.%T--------------------------------------------------------------------------------------------------------------------

--9-! Strengt,s---------------------------------------------------------------------------------------------9- .ea1nesses------------------------------------------------------------------------------------!#

--9-$ %pportunities-----------------------------------------------------------------------------------!#

--9-4 T,reats---------------------------------------------------------------------------------------------!!

-- Anal(sis---------------------------------------------------------------------------------------------------------------!!

---! ;ow to Attac1 Sema-------------------------------------------------------------------------!!

--- ;ow Sema will Attac1 Us-----------------------------------------------------------------!

-$ ;uawei Tec,nologies----------------------------------------------------------------------------------------------------------!

-$-! Compan( %verview---------------------------------------------------------------------------------------------!

-$- 0roducts--------------------------------------------------------------------------------------------------------------!$

-$-$ Services---------------------------------------------------------------------------------------------------------------!$-$-4 0artners,ips--------------------------------------------------------------------------------------------------------!$

-$-7 Customers-----------------------------------------------------------------------------------------------------------!$

-$-9 S.%T------------------------------------------------------------------------------------------------------------------!4

-$-


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S*SC 2 Competitive overview

-4-4 0artners,ips--------------------------------------------------------------------------------------------------------!

-4-7 Customers-----------------------------------------------------------------------------------------------------------!

Some of >o1ia@s S*SC customers include:------------------------------------------------------------------------ !

-4-9 S.%T------------------------------------------------------------------------------------------------------------------!8-4-9-! Strengt,s-----------------------------------------------------------------------------------------!8

-4-9- .ea1nesses------------------------------------------------------------------------------------!

-4-9-$ %pportunities-----------------------------------------------------------------------------------#

-4-9-4 T,reats--------------------------------------------------------------------------------------------#

-4- Anal(sis---------------------------------------------------------------------------------------------------------------!

-4--! ;ow to Attac1 >o1ia------------------------------------------------------------------------!

-4-- ;ow >o1ia will Attac1 Us-----------------------------------------------------------------

-7 Comverse---------------------------------------------------------------------------------------------------------------------------

-7-! Compan( %verview---------------------------------------------------------------------------------------------

-7- 0roducts--------------------------------------------------------------------------------------------------------------$-7-$ Services---------------------------------------------------------------------------------------------------------------$

-7-4 0artners,ips--------------------------------------------------------------------------------------------------------$

-7-7 Customers-----------------------------------------------------------------------------------------------------------$

-7-9 S.%T------------------------------------------------------------------------------------------------------------------4

-7-9-! Strengt,s-----------------------------------------------------------------------------------------7

-7-9- .ea1nesses------------------------------------------------------------------------------------7

-7-9-$ %pportunities-----------------------------------------------------------------------------------9

-7-9-4 T,reats--------------------------------------------------------------------------------------------9

-7- Anal(sis---------------------------------------------------------------------------------------------------------------

-7--! ;ow to attac1 Comverse------------------------------------------------------------------7-- ;ow Comverse will Attac1 LogicaC*+-------------------------------------------

-9 Telsis----------------------------------------------------------------------------------------------------------------------------------- 8

-9-! Compan( %verview---------------------------------------------------------------------------------------------8

-9- 0roducts--------------------------------------------------------------------------------------------------------------8

-9-$ Services---------------------------------------------------------------------------------------------------------------8

-9-4 Customers-----------------------------------------------------------------------------------------------------------8

-9-7 0artners,ips--------------------------------------------------------------------------------------------------------8

-9-9 S.%T------------------------------------------------------------------------------------------------------------------

-9- Anal(sis---------------------------------------------------------------------------------------------------------------

3 Overall conclusions............................................................................................31

) ##$ LogicaC*+ ? Table of Contents iv


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1 Competitor Groups

1.1 Prime Competitors

T,e traditional S*SC mar1et saw a select few competitors compete for messaging"usiness- Up until a"out ### t,e messaging war too1 place "etween C*+ and Logica wit,Sema and Comverse pla(ing less of a 1e( role- C*+ soldB ,ig, performance and sta"ilit(w,ile Logica sold its S*SC on t,e premise of a c,eaper price wit, more features 5"utwit,out t,e elements C*+ could offer customers6- *ost smaller and medium si&ed

operators opted for t,e c,eaper price alternative- C*+@s solution was more appealing to t,elarger operators wit, fast growing messaging "usinesses as !6 t,e( could afford it and 6 itoffered t,em t,e sta"ilit( for pea1 volumes and increased interactivit( and $6 t,e increase inS*S traffic meant uic1 pa("ac1 periods and faster return on investment- C*+ alsofocussed in t,e o1ia and o1ia ,as"een said to t,row inB a messaging centre along wit, t,e ,andsets= ma1ing decisions foroperators easier 5or ,arder6 to adopt a single vendor polic(- At t,e end of t,e da( it is all

a"out "uilding mar1et s,are and penetrating t,e mar1et- Free ,andsets 5or t,e wit,,oldingof ,andsets6 added to t,e euation ma1e it simpler for operators to "uild up t,eir mar1ets,are- 'ut wit, new ,andset pla(ers entering t,e mar1et= o1ia ,ave less"argaining power t,an t,e( used to-

T,en t,ere was t,e silent 5"ut deadl(6 move from C,inese pla(ers ;uawei and GT< w,oactuall( ,ave a stronger position in t,e mar1et t,an we first imagined- T,ere ,as "een aperception t,at t,e products from C,inese suppliers are c,eaper and t,erefore inferior t,ant,eir


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1.3 !lternative competitors

T,ese da(s t,e ta"les ,ave turned- S*SCs ,ave essentiall( "ecome commodit( items= andas t,e main mar1et for C*+ in t,e past= matures 5not to mention t,e over capacit( installed

in t,e mar1et6 t,e focus is all a"out "eing a"le to decrease CapeH and %peH- T,e totalmessaging solution and t,e service networ1 concept were "orne out "( t,is ver( fact- Cross2selling or "eing a"le to lin1 in t,e features and "enefits from ot,er products 5e-g- *AR= 0SA='usiness Tools= FS+ and %*+6 in LogicaC*+@s messaging solution allows LogicaC*+ toposition itself as a pla(er for t,e future- It is no longer a"out /ust delivering t,e "est S*SC-

Trends in t,e glo"al mar1etplace ,ave also seen new pla(ers enter t,e messaging arena=strategicall( euipped wit, a weapon t,at could seriousl( impact LogicaC*+@s eHisting andfuture messaging "usiness-

T,e li1es of Telsis=


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2 Key Competitors

2.1 "o#icaCMG $looin# in first%

T,is c,apter will start "( loo1ing at our own compan(@s position in t,e mar1et- .e willaddress LogicaC*+@s 1e( Strengt,s= .ea1nesses= %pportunities and T,reats- T,e S.%Tsta1e into account LogicaC*+@s neHt2generation messaging offering 57-# or 0icasso6= as wellas t,e classic S*SC 54-9 or Telepat,6- .,at will follow t,en is a loo1 at LogicaC*+@scompetitors= providing details a"out eac, compan( including an overview of its products and

services= and a S.%T anal(sis- It was decided to list all competitors as t,e( eac, pla( t,eirown 5"ut differing6 role in t,e future of messaging-

2.1.1 S&OT

Table 1'

Table 1' "o#icaCMG(s SMSC S&OT

Stren#t)s &eanesses

- Strong messaging reputation wit, largeS*SC installed "ase

- Unlimited performance and t,roug,put

- Largest independent S*S vendor

- Solutions providerpartner

- S(stems Integration eHpertise

- AggressiveeHtensive sales force

- 0environment

-Strong S*S interconnect features5S*00 and SS6 on one platform

- Rollout turn21e( deliver( J operationalwit,in one wee1

- Supports all glo"al standards

- ;uge compan( w,ic, can lead to slowreaction timesRKD effort

- 0erception of infleHi"le pricing model

- Few strategic c,annel partners,ips

- %fficial /oint proposition still to "edetermined

- %pen interfaces= opens t,e opportunit(for competitor products to get foot in

- %pen E*S is some cases is considereda wea1ness "( t,e mar1et

) ##$ LogicaC*+ ? Key Competitors


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"o#icaCMG SMSC S&OT con(t

Opportunities T)reats

- 0remium *essaging *ar1et

- *anaged Services

-


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- .e don@t /ust deliver an S*SC= we deliver t,e eHpertise and ot,er associated products to ensureour customers get maHimum value out of t,eir messaging "usinesses-

- '( centralising LDA0 provisioning= SS access= S>*0 management etcQ "( utilising t,e >P!

scala"ilit( concept= online upgrades= and t,roug, rationalisation of eHisting ;.= LogicaC*+@soffer "ecomes eHtremel( cost competitiveN

*ore detail on individual strengt,s= wea1nesses etc- will "e added as appropriate

2.2 Sc)lumber#erSema

2.2.1 Company Overvie*

Sc,lum"erger is a glo"al tec,nolog( services compan( wit, corporate offices in >ew or1=0aris and T,e ;ague- .it, more t,an 8#=### emplo(ees= in !## countries= t,e compan(consists of two "usinesses:

%ilfield Services= wit, turnover of 8"n and 7#=### emplo(ees= focuses on oil andgas eHplorations= production services= information tec,nolog( and networ1 solutions-

Sc,lum"ergerSema 2 formed in April ##!= w,en Sc,lum"erger acuired Sema plc=and com"ined it wit, part of its former SI* cards and Test K Transaction "usiness=,as $#=### people and turnover of 4"n- It provides capa"ilities delivering consulting=s(stems integration= managed servicesand products serving t,etelecommunications=energ( and utilities=finance= transport= and pu"lic sectormar1ets-

T,e Telecommunication "usiness unit consists of t,e followings:

4=7## telecom emplo(ees in around t,e world

Reinvestment of !# per cent of revenues in researc, and development

$7# customers worldwide

0roducts and services are tailored to customer needs

# (ears in telecommunications

T,e( claim to ,ave one of t,e worldVs largest installed "ases of "usiness supports(stems including more t,an 97 million post2paid su"scri"ers= and lead t,e world inprepaid services wit, 87 operators and 9# million prepaid su"scri"ers-

Sema@s glo"al mar1et s,are in S*SC installations is -!$O 5$7 installations6

2.2.2 Pro+ucts

- *essaging solutions supporting += -7+ and $+

- 'usiness support including customer care and "illing= prepaid platforms= interconnectservices= mediation= provisioning= and networ1 management

- SI* and USI* smart cards

-;andset and networ1 applications

http://www.slb.com/consultinghttp://www.slb.com/sysinthttp://www.slb.com/mgdsvcshttp://www.slb.com/mgdsvcshttp://www.slb.com/telecomhttp://www.slb.com/telecomhttp://www.slb.com/utilitieshttp://www.slb.com/financehttp://www.slb.com/financehttp://www.slb.com/transporthttp://www.slb.com/publicsectorhttp://www.slb.com/consultinghttp://www.slb.com/sysinthttp://www.slb.com/mgdsvcshttp://www.slb.com/telecomhttp://www.slb.com/utilitieshttp://www.slb.com/financehttp://www.slb.com/transporthttp://www.slb.com/publicsector


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- +atewa(s for mo"ile commerce= electronic pa(ment= .A0= messaging and roaming

- Sc,lum"ergerSema solutions support +S*= TD*A= CD*A= +0RS and U*TS standardsand cover a "road range of services including:

S,ort *essage Service= *essaging +atewa(s=*ulti2*edia *essaging

Location 'ased Services=Unified Communications= *o"ile Instant *essaging

*o"ile ortel= Cisco= Siemens= Sonus >etwor1s= Sun=


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2.2. S&OT

Table 2'

Table 2' Sema SMSC S&OT

Stren#t)s &eanesses

- Relia"le= full( redundant= scala"ilit( and,ig,2performance s(stem

- I0R s,ared wit, Eodafone w,o gets 47Oof all software license fees wit, specialarrangement wit, Eodafone U3-

-+lo"al Tier ! installed "ase

- o1ia and


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Sema ,as installations on most Eodafone Tier ! su"sidiaries suc, as Eodafone U3 andEeri&on-

- o vision= roadmap= strateg(= support etcQ >o 1e( differentiator for $+

Sema ,as no clear vision on t,e future for messaging- T,e vision and positioning t,e( ,aveis "roadl( copied from LogicaC*+-

- Ineffective messaging partners,ips

- Relativel( poor ualit( despite ,ig, price tag

T,e Sema S*SC ,as a reasona"le performance= "ut it is not t,e "est in t,e mar1etplace-;owever t,eir pricing is ,ig,-

--9-$ %pportunities

- Leverage position wit,in t,e Eodafone +roup especiall( wit,in C,ina *o"ile

T,e Eodafone group ,as a minorit( s,are in C,ina *o"ile- Eodafone can use t,is influenceto pus, Sema in C,ina *o"ile-

- Use eHpertise and customer "ase to "ecome a $+ messaging leader

Sema is tec,nicall( a strong compan(- T,e( can use t,is eHpertise to "ecome a $+ leader-T,e( ,ave an **SC and a Unified Communications platform- Alt,oug, Sema ,as a latestart in t,ese mar1ets= t,eir S*SC customer "ase 5specificall( t,e Eodafone group6 givest,em cross2selling opportunities for t,is-

- Attac1 former Logica customer "ase- Increase >ort, American mar1et s,are w,ilst competitorsfocus on ort, America and wit, t,at a strong reference int,is part of t,e world- .it, t,eir UniH S*SC t,e( can attac1 t,e former Logica customer"ase-

) ##$ LogicaC*+ ? Key Competitors !


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- Develop special purpose applications in strategic spaces

As Sema delivers tailor2made solutions= t,e( can reasona"l( uic1l( develop specificapplications for operators in regions Sema finds strategicall( interesting= suc, as t,e US-

--9-4 T,reats

- >ew UniH S*SC ma( not prove itself

T,e new UniH s(stem ,as not (et proven itself- *ost UniH S*SCs do not ,ave a trac1record for performance and relia"ilit(- In a developed mar1et wit, pressure on CapeH and%peH= operators are reluctant to c,oose unproven solutions-

- %t,er messaging vendors could occup( Sema@s space in t,e Eodafone group: LogicaC*+ inort, America

As ot,er vendors suc, as LogicaC*+ are furt,er a,ead wit, messaging compared toSema= t,e Eodafone group ma( consider replacing Sema S*SC- Logica C*+ ,as

reference sites wit,in t,e Eodafone group suc, as D2Eodafone= Telecel and EodafoneIreland- T,ese su"sidiaries are out performers in t,e S*S mar1et- Comverse ,as a strongEoicemail installed "ase- Comverse can cross2sell S*SCs e-g- in t,eir >ort, AmericaEoicemail customer "ase-

- Rumour a"out divesting mo"ile arm 2X >o more product "usiness

T,e rumour spreads t,at Sema is no longer investigating in t,eir mo"ile "ranc,- As t,is is/ust a rumour it nevert,eless ma1es operators reluctant to "u( a s(stem t,at is end of life-T,is t,erefore ,urts t,e "usiness- ;owever= note t,at Sema is still selling S*SCs- TelstraAustralia in anuar( ##$ decided to upgrade t,eir messaging infrastructure using t,e SemaS*SC-

- >o1ia and


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.,ilst Sema is reducing its investments in messaging= LogicaC*+ ,as 1ept itsdevelopment eHpenditure at t,e same level in real terms- T,is means t,at LogicaC*+is a"le to furt,er develop and tailor t,e S*SC to new mar1et reuirements-

*a1e optimal use of t,e rumour= t,at Sema divesting its messaging= "illing and cardsproduct "usiness- Alt,oug, t,is is a rumour and s,ould "e treated wit, caution= t,eorganisation was recentl( c,anged to ma1e eac, product independent-

T,e UniH S*SC is not a proven solution

Sema@s messaging vision is a LogicaC*+ cop(-

- In t,e Sema S*SC installed "ase= opportunities can arise in ##$ for replacement anddeliveries as second vendor- T,e most li1el( areas w,ere t,e Sema customer isdissatisfied wit, t,e Sema S*SC and LogicaC*+ ,as a "etter offering are:

$+

T,roug,put

Mualit( of Service

;ig, %peH

--- ;ow Sema will Attac1 Us

!- In ##$= Sema can attac1 LogicaC*+ mainl( at t,e former Logica installed "ase usingt,e UniH S*SC:

T,e UniH S*SC is a nice to ,ave in t,e US

T,e( claim to ,ave "etter SI s1ills t,an LogicaC*+

- In a competitive confrontation wit, LogicaC*+= Sema will use t,e following points to

position t,emselves against LogicaC*+:

Tailor made solutions fit eHactl( wit, customer needs-

Strong reference in t,e Eodafone group= w,ic, is t,e largest group

2.3 0ua*ei Tec)nolo#ies


;uawei Tec,nologies was esta"lis,ed in !88- It is a private ,ig,2tec, enterprise full(

owned "( its emplo(ees-

A total staff of over !=###:

47O RKD Y ### peopleQ Researc, Centres in Silicon Ealle(= Dallas= Stoc1,olm=*oscow and 'angalore

$7O *ar1eting= Sales K Customer support Y 997# peopleQ 4# "ranc, offices andcustomer support worldwide

!#O 0roduction Y !## people

!#O Administration Y !## people

;uawei@s glo"al mar1et s,are in S*SC installations is -!$O- As t,eir entire

customer "ase is in Asia 0acific eH- apan= ;uawei@s mar1et s,are in t,is region is!8O 5or $9 installations6-

) ##$ LogicaC*+ ? Key Competitors !4


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##! revenues of $=! "illion

2.3.2 Pro+ucts

;uawei specialises in researc, and development= production and mar1eting ofcommunications euipment= providing customised networ1 solutions for telecom carriers infiHed= mo"ile and data communications and optical networ1s- Ranging from switc,ing=intelligent networ1s= support networ1s= +S*= +0RS= .2CD*A= CD*A !H= AT* to ot,er 1e(telecom tec,nolog( fields- *ost importantl(= ;uaweiVs products are "ased on independentl(designed ASIC c,ips w,ic, allows ;uawei to provide solutions from start to finis,= from c,ipto networ1-

;uawei 5toget,er wit, GT< and most ot,er C,inese telco vendors6 ,as never spent mone(on inventions or long2term R K D- Instead= it is cop(ing t,e concepts and ideas from t,e realmar1et leaders= t,en wit,in an eHtremel( s,ort period= creating t,e product and starting tosell even "efore t,e product is read(- T,eir ,uge engineer "ase is mainl( used for t,is

purpose- Furt,ermore= t,e goal for t,eir "usiness is purel( for mar1et s,are= not for profit-

2.3.3 Services

Services can "e tailored to customer needs-

2.3., Partners)ips

;uawei Tec,nologies sa(s t,at it is willing to esta"lis, %


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2.3. S&OT

Table 3'

Table 3' 0ua*ei SMSC S&OT

Stren#t)s &eanesses

- Strong government support in C,ina

- Strong growt,Q ##! revenues up 7O

- ;uge and fleHi"le wor1force 5### in RKD6

- Top two core networ1 vendor in C,ina

-Strong S*SC presence in C,ina and Asia

- Strong sales arguments t,roug, diverseportfolio and "undled deals

- Aggressive sales and mar1eting

- SI partners,ipscapa"ilities

- Limited international presence

- Limited international eHperience

- *essaging not core "usiness

- *a/orit( C,inese specifications t,erefore

lac1s universal specsreuirements- *essaging 0roducts not fit for ,ig,

performance

- Muic1 and dirt(B product development

- I0R and patent issues wit, Cisco


- Influence telecom legislation in C,ina

-


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-$--! ;ow LogicaC*+ can attac1 ;uawei

Use some of t,e generic arguments 5see **SC Competitive %verview= page !92!6 suc,as:

LogicaC*+ is independent of core networ1= ,andsets etc

LogicaC*+ ,as strong capa"ilities in t,e area of "illing and CR*

LogicaC*+ ,as glo"al SI capa"ilities across numerous industries

LogicaC*+ is committed and focussed on messaging

8 out of !# Top mo"ile operators use LogicaC*+ *essaging gear

.,ere s,ould we attac1 ;uawei and w,ere s,ould we pre2empt t,em attac1ing us

T,e o"vious countr( to attac1 t,em is C,ina: C,ina *o"ile= C,ina Unicom and C,inaTelecom- Considerations: local partner E and more local feed on t,e ground essential-

Li1el( partners: Siemens= >ortel= *otorola and Alcatel- Dedicated messaging products forC,inese mar1et: 5D26S*SC= S*S TE= **SC= Service ote t,at ;uawei@s seniormanagement ,as set eHport growt, targets at 8# to !##O for ##$ and ##4-

In a confrontation ;uawei will use t,e following against LogicaC*+:

At product level: too eHpensive= not fleHi"le= no localised products for specific regions= oftenno local support at Tier $-5note t,at ;uawei is present in more countries t,an LogicaC*+ isN6

At compan( level: LogicaC*+ will divest .ireless >etwor1s division /ust li1e t,e( did wit,Aldiscon- %utside .estern


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2.3. !nalysis

;uawei is 1nown to "e wor1ing on a LogicaC*+ replacement strateg( for our S*SC=**SC and C'S products- T,e stereot(pical perceptions of o1ia ,as !8 production facilities in !# countries around t,e world

RKD spend Z$ "n

Researc, and development in !7 countries- !8=9## people emplo(ees in t,e area ofRKD ma1ing up $7O of its wor1force

Sales to over !$# countries

o1ia glo"al mar1et s,are in S*SC installations is -$O 549 installations6-

*ost recentl(= >o1ia moved its Service 0latforms including t,e messaging products suc, asS*SC= **SC into t,e mo"ile p,one division- T,is will provide uniue s(nergies and s,owst,e strategic importance associated to service platforms given its leaders,ip in t,e mo"ilep,ones-

2.,.2 Pro+ucts

>o1ia@s *essaging and 0resence suite is made up of:

- >o1ia *essaging +atewa(

- >o1ia **S Solution 5w,ic, includes .A0+atewa(= **SC= ** store= 0rofiling Centreetc6

- >o1ia 0resence Server

- >o1ia S*S Centre

- >o1ia USSD Centre

- >o1ia Download Centre

) ##$ LogicaC*+ ? Key Competitors !8


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2.,.3 Services

>o1ia is said to provide services to ,elp operators ma1e t,e most of t,eir networ1investment- T,is covers t,e entire process of planning= "uilding and operating a networ1=

maintaining and optimising networ1 performance= training operator staff and integratingsolutions t,at ena"le new mo"ile services-

>o1iaVs services for operators comprise a glo"al partner networ1 and >o1ia %nline Services=w,ic, provides round2t,e2cloc1 support via t,e Internet-

2.,., Partners)ips

>o1ia divides its partners,ips into t,e following categories:

+ames: orwa(

- 'en= >et,erlands

- 0ol1omtel= 0oland

- Cosmote= +reece

- %range= Denmar1

- Telia= Finland

- Ittissalat Al2*ag,ri"=*orroco

!mericas

->euvatel= 'olivia

- Digicel= Een&uela

!sia Pacific

-Smart= 0,ilippines

- Airtel= India

- 'irla ATKT= India

- C,ina *o"ile 5;ainan=ilin= S,anHi= unnan='e/ing= >ingHia= Fu/ian6=C,ina

- Time .ireless= *ala(sia

) ##$ LogicaC*+ ? Key Competitors !


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2.,. S&OT

Table ,'

Table ,' oia SMSC S&OT

Stren#t)s &eanesses

- Large wor1force in >o1ia >etwor1s 5!=###6

- ow part of mo"ile p,ones

- o1ia6- ;andset position o"stacle in I%0

- >ot a dominant S*SC mar1et s,are

- Do not full( understand support s(stems andprocesses suc, as "illing= provisioning etc-

- >o CD*A or proven I0 solution


-o1ia S*SC

- *ar1et s,are in ,andsets reduced due toAsian pla(ers

- Slow growt, in $+ mar1et

-4-9-! Strengt,s

- Large wor1force in >o1ia >etwor1s 5!=###6

>o1ia >etwor1s ,as a significant wor1force= w,ic, ,as made it possi"le to implement t,eir**S vision in t,eir **SC- T,e cost cuttings in >o1ia ,ave "een less drastic t,an in


20/31

>o1ia Smart messaging= w,ic, is similar to o1ia ,andset-To date >o1ia ,andsets do not support o1ia ,as Tier ! presencein C,ina= 0,ilippines and etwor1s-

%ne of t,e weapons t,at >o1ia use to fig,t t,eir **SC "attles is vendor financing- >o1iawill ,ave less room for providing financing to t,eir customers= as t,eir CapeH will declinewit, an eHpected 7#O-

- 0oor S*SC 0roduct Mualit(

T,e availa"ilit(= scala"ilit( and performance of t,e >o1ia S*SC= w,ic, is "uilt on t,e ancientArtuse platform= is poor- T,e functionalit( of t,e >o1ia S*SC is not fit for ,ig, performance-

T,e( need S*SCs to ,andle t,e traffic at S*ART 0,ilippines-

- Lac1 of core *essaging Focus and trac1 record

>o1ia pla(s in t,e "road field of wireless communication= and t,e( ,ave "een successful invoice- 'ut t,e( do not ,ave t,e eHpertise and understanding of w,at ma1es a successfulwireless messaging or mo"ile internet solution- 'ecause S*SC is not a significant source ofdirect revenue for >o1ia= t,e( are not committed to it and it will "e one of t,e first areas foran( additional cost cuttings-

T,e issuing of man( Service >etwor1 tenders "( operators indicates t,e need forapplication= networ1 and ,andset2independent service IT environments- T,is reuiresspecialisation and separation from infrastructure- Don@t let t,e plum"er do (our electricit(-B%perator suc, as o1ia into t,eir Service >etwor1 environment-

- %verl( dominant pla(er= at times a"usive of position 5


21/31

T,e ot,er ,andset vendors are reluctant to give openness to >o1ia in interopera"ilit( testingwit, >o1ia@s **SC= since t,e( 1now >o1ia is t,eir competitor in ,andsets and will use an(intelligence it gets on t,eir ,andsets@ **S capa"ilities-

->ot a dominant S*SC mar1et s,are

S*SC is not a core "usiness for >o1ia= alt,oug, t,e( identified S*SC an important sourceof income- T,erefore t,e >o1ia S*SC is not ver( muc, pus,ed into t,e mar1et- >o1ia ,asaround O mar1et s,are-

- Do not full( understand support s(stems and processes suc, as "illing= provisioning etc-

>o1ia ,as not focused on w,at an S*SC means from a "usiness point of view- Issues on,ow to ,elp t,e operator wit, "illing and provisioning are generall( not addressed-

- >o CD*A or proven I0 solution

>o1ia does not ,ave a CD*A solution- T,e( claimed to ,ave an I0 S*SC- .it, t,at= t,e(tried end ##! and earl( ## to sell an I0 s(stem to +lo"e Telecom in t,e 0,ilippines- T,iswas in fact a proprietar( >o1ia Solution and not an open standards I0 solution-

-4-9-$ %pportunities

- o1ia ,eavil( targets t,e AsianA0AC mar1et= especiall( C,ina- T,ese mar1ets s,ow t,estrongest growt, in t,e S*S mar1et-

-Leverage **SC for cross2selling S*SC and routing products- Target former Logica customersdue to product rationalisation wit,in LogicaC*+

>o1ia@s strong installed "ase for **SC can potentiall( "e used for cross2selling for S*SC-For LogicaC*+ t,ere is a t,reat in t,e Tier ! former Logica customer "ase in o1ia@s 1e( customers

>o1ia ,as a num"er of ver( visi"le **SC customers 5**%= %range6- If t,ese customersare successful in t,eir **S "usiness= >o1ia@s trac1 record in wireless data is esta"lis,ed-

- Financiall( strong to "u( mar1et s,are

>o1ia ,as a strong cas, position- T,erefore= t,e( can "u( mar1et s,are-

-4-9-4 T,reats

- Losing out in CD*A mar1ets as t,e( onl( ,ave a +S* solution

>o1ia ,as no S*SC installed "ase on a CD*A networ1- .it, interopera"ilit( issues "eingaddressed= CD*A is a growt, mar1et for S*S- '( not ,aving a CD*A solution= >o1iacannot grow in t,is area-

- Replacement of >o1ia S*SC

>o1ia does not ,ave a solid trac1 record in ,ig,2performance mar1ets- In S*S growt,mar1ets t,e( ris1 losing mar1et s,are e-g- to LogicaC*+-

-*ar1et s,are in ,andsets reduce due to Asian pla(ers



22/31

+0RS and $+ are a"out colour and ,ig, ualit( audio- T,e apan2oriented ,andsetmanufacturers started on t,e learning curve of producing colour screens= pol(p,onic audio=integrated cameras and picture and movie pla("ac1 in earl( ###- >o1ia is at least a (ear"e,ind t,at and could "e ,urt if t,ese Asian pla(ers enter t,e +S*+0RS domain-

- $+ infrastructure mar1et grows slower t,an eHpected

T,e profit decline in >o1ia >etwor1s will steepen if t,e mar1et for $+ networ1s does notta1e off soon and t,e operators t,at ,ave "een financed "( >o1ia are not starting to ma1epa(ments-

Importance of >etwor1s 5$+ Infrastructure*essaging6 will compel t,e >o1ia group tocontinue sustaining and investment activities for $+ networ1s= even w,en revenues are"elow eHpectations- T,is could lead to cost reductions in terms of la(2offs and furt,erreduction of effective S*SC and **SC eHpertise- >o1ia >etwor1s contri"uted to 8O of+roups total revenue-

2.,./ !nalysis

T,is section presents t,e conclusions comparing >o1ia@s and LogicaC*+@s S.%Ts- T,eoutcome provides t,e direction for t,e S*SC Competitive *anagement document= and t,eS*SC attac1 plans for >o1ia- T,e conclusions of t,is anal(sis are presented in twosu"sections:

!- ;ow LogicaC*+ can most effectivel( attac1 >o1ia- T,e conclusions in t,is section ,ave"een reac,ed "( matc,ing LogicaC*+@s strengt,s wit, >o1ia@s t,reats= andLogicaC*+@s opportunities wit, >o1ia@s wea1nessesQ and identif(ing w,ere >o1ia ismost vulnera"le-

- ;ow >o1ia is most li1el( to attac1 LogicaC*+- T,is section is t,e result of t,e inverseeHercise: matc,ing >o1ia@s strengt,s wit, LogicaC*+@s t,reats= and >o1ia@s

opportunities wit, LogicaC*+@s wea1nesses-

-4--! ;ow to Attac1 >o1ia

!- In a competitive confrontation wit, >o1ia= t,e following points most effectivel( positionLogicaC*+:

LogicaC*+ is independent from wireless ,andsets 5and networ1s6 and focuses oninteropera"ilit(BQ operators are frustrated wit, t,e wa( >o1ia ,as forced t,em to "u(proprietar( >o1ia S*SC and now also **SC- T,e( are afraid >o1ia will introduceproprietar( functionalit( "etween t,eir s(stems and ,andsets= li1e t,e( ,ave pus,edSmart *essaging as a proprietar( alternative to


23/31

LogicaC*+ ,as strong capa"ilities in t,e area of 'illing and Customer CareBQ 'KCCis not in t,e core eHpertise of >o1ia-

LogicaC*+ ,as strong S(stems Integration and IT capa"ilitiesBQ t,is is eHpertise

t,at >o1ia does not ,ave-

- In t,e >o1ia S*SC installed "ase= opportunities can arise in ##$ for replacement anddeliveries as second vendor- T,e most li1el( areas w,ere t,e >o1ia customer isdissatisfied wit, t,e >o1ia S*SC and LogicaC*+ ,as a "etter offering are:

EAS support and management functionalit(

T,roug,put

Mualit( of Service

;ig, %peH

-4-- ;ow >o1ia will Attac1 Us

!- In ##$= >o1ia can attac1 LogicaC*+ mainl( at t,e former Logica installed "ase= sinceLogicaC*+ as t,is customer "ase can following S*SC open cross2selling opportunitiesfor **SC:

'undle S*SC wit, **SC wit, ,andsets= networ1= applications= discount t,e S*SC

%ffer financing

- In a competitive confrontation wit, LogicaC*+= >o1ia will use t,e following points toposition t,emselves against LogicaC*+:

>o1ia is t,e leader in **S and ,as t,e ,ig,est mar1et s,are in wireless ,andsetsand **S client software and is t,erefore "est prepared to wor1 as a messaging"usiness partnerBQ LogicaC*+ ,as no position in ,andsets-

>o1ia offers a complete= end2to2end solution for S*S and **S= ,as ever(t,ing t,atis reuired in2,ouse or availa"le t,roug, Forum >o1iaQB LogicaC*+ is not a"le tooffer end2to end S*S-

T,e long term via"ilit( of LogicaC*+ is uestiona"leQ it is a small compan( in adifficult mar1etQ t,is is to compromise LogicaC*+ as a relia"le partner-

T,e commitment of LogicaC*+ to maintain t,e .ireless >etwor1s "usiness and1eep investing is uestiona"leQ Logica split off and sold a lot of t,e Aldiscon "usinessafter t,e( acuired it and t,e( want to do t,e same wit, C*+ .DSQ t,is is tocompromise LogicaC*+ as a relia"le partner-

2.5 Comverse


Israeli and American "ased Comverse is a provider of software and s(stems ena"lingnetwor12"ased multimedia en,anced communications services- T,ese services includeen,anced services s(stems and software= w,ic, ena"le t,e provision of revenue2generatingvalue2added services including call answering wit, one2touc, call return= s,ort messagingservices= I02"ased unified messaging 5voice= faH= and email in a single mail"oH6= -7+$+multimedia messaging 5**S6= wireless instant messaging= wireless data and Internet2"asedservices= voice2controlled dialling= messaging and "rowsing= prepaid wireless services= and

additional personal communication services-

4### emplo(ees in !## countries

) ##$ LogicaC*+ ? Key Competitors 4


24/31

4## 5fiHed and mo"ile6 customers worldwide

Toda(= it is said t,at almost one out of ever( two mo"ile su"scri"ers en/o(s t,epersonalised communications eHperience of Comverse Solutions-

Scala"ilit(= redundanc(= and relia"ilit( are said to "e t,e cornerstones of ComverseVssolutions= along wit, open standards-

+lo"al mar1et s,are in S*SC installations is 8-$7O 5or 4! installations6

2.5.2 Pro+ucts

Messa#in# Solutions

- IS*SC

- iTE+ate[

- S*S Interconnection +atewa(s

- EoiS*S

- **SC

- Eoicemail 5E*S6

- UCU*

- EoiCD

Personal Communication

- Eoice solutions:2*o"ile conferencingEoice activated diallingEoice portal

- 0repaid solution

Mobile -ntertainment

- *o"ile +ame Services

- *o"ile 0ortal

- %pen-S*S

2.5.3 Services

T,eir *edalist\ *ar1et Success 0rogram is said to "e t,e industr(Vs most compre,ensivemar1eting consultation and support programme=designed to ,elp customers position andmerc,andise t,eir services-

2.5., Partners)ips

T,e Comverse Spar1 Alliance 0rogram promotes cooperation in t,e development=mar1eting and deliver( of value2added= "est2of2"reed multimodal solutions- Comverse formsalliances wit, wit, infrastructure vendors= s(stem integrators= tec,nolog( vendors=application developers= and content providers- T,e( sa( t,is ena"les t,em to rapidl(integrate new tec,nologies and capa"ilities into eHisting and new revenue2generatingsolutions-

0artners include Siemens= ortel= Mualcomm= TeHas Instruments= 'itFlas,=Feat,er *o"ile S(stems= Eitaminic Signs= *A]ware= .etwor1s= S(lantro=%nset= InfoSpace among ot,ers-

2.5.5 Customers

Comverse ,as more t,an 4## wireless and wireline telecommunications networ1 operatorsin more t,an !## countries- A selection can "e found "elow-



25/31

!mericas- Sprint 0CS= USA

- 'ellSout, affiliates=

'ra&il K 0eru- Telecom 0ersonal=

Argentina

- TelefWnica= C,ile

- Infonet= Eene&uela

-M-!- T2*o"ile Austria

- Airtel Eodafone= Spain

- Comvi= Sweden

- Ces1( *o"il

- U1raine *o"ileCommunication

!sia Pacific- 0T


26/31

Comverse SMSC S&OT con(t


- Strong foot,old in fiHed mar1et and ,encelarge num"er of S*S over fiHedopportunities to pus, UC-

- >ew "ids in LogicaC*+ upgradescustomers

- Ealue2added services platform

- Cross2selling opportunities

- 3e( accounts c,oose a "etter profiledmessaging vendor

- *erging of messaging and voice

- %ngoing E*S mar1et saturation

- S*S upta1e in under2developed regions

-7-9-! Strengt,s

- Aggressive Sales and *ar1eting

Comverse is "u(ing mar1et s,are- Anal(sing t,eir pricing for 'a(antel in t,e 0,ilippines in###= t,e( are more eHpensive compared to LogicaC*+- ;owever= Comverse@s strateg( isnever to t,e "attle on pricing-

- Strong glo"al voicemail installed "ase 5$$# Customers6

Eoicemail accounts for approHimatel( #O of Comverse@s revenue-

-;as "ot, fiHed and mo"ile customers

Comverse ,as contacts= t,roug, its voicemail installed "ase= wit, "ot, fiHed and mo"ileoperators:

- Strong financial position

>et cas, position in M ## of !-$ "illion-

- Strong 0artners,ips

Comverse ,as strategic partners,ips wit,: ortel= Mualcomm= Siemens and TeHasInstruments- >eHt to t,ese t,e( ,ave partners,ips wit, application providers 56= contentproviders 5!6= tec,nolog( providers 5!6 and infrastructure vendors 576-

-+lo"al presence 5$ countries6

Comverse ,as offices in $ countries worldwide- In t,e US Comverse is present in states-

-7-9- .ea1nesses

- S*SC not suita"le for ,ig, traffic environments

Comverse claims t,at t,e( can ,andle $### S*Ssec on a single point code- To dateLogicaC*+ is not aware of a reference sustaining t,is claim-

- Reuires data"ase maintenance during low traffic ,ours

- Seen as a voicemail vendor

Comverse made its claim to fame mainl( in t,e voicemail arena- As t,e( are a ma/or pla(erin t,e voice mail messaging mar1et= t,e( claim to understand t,e teHt mar1et as well-



27/31

- ew "ids in LogicaC*+ upgrades customers

T,e merger of Logica and C*+ gave t,em almost 7#O of t,e S*SC installations- ;owever=product realisation means t,at a"out ,alf of LogicaC*+ customer "ase will need a newS*SC= w,en upgrades are needed- T,is can potentiall( open wa(s for Comverse to "e partin new "ids for t,ose customers-

- Ealue2added services platform

As Comverse ,as its own value2added service platform= t,e( can directl( offer services wit,t,eir S*SC-

- Cross2selling opportunities

T,eir voicemail installed "ase can potentiall( "e used for cross2selling-

-7-9-4 T,reats

- 3e( accounts c,oose a "etter profiled messaging vendor

'( t,e creation of LogicaC*+= Comverse ris1s t,e possi"ilit( t,at its 1e( S*SC accountsc,oose t,is glo"al messaging vendor-

- *erging of messaging and voice

As data and voice are merging= data vendors will include a voice solution as well 5e-g- teHt2to2speec, for fiHed2line S*S6- Comverse will get new competitors in t,eir 1e( mar1et-%ngoing E*S mar1et saturation-

- S*S upta1e in under2developed regions

Comverse@s S*SC is customer "ase is mostl( in regions w,ere S*S is not (et developed

suc, as >ort, and Latin America= C,ina and t,e U1raine- T,e( do not ,ave Tier ! customers



28/31

in .estern


29/31

0osition t,eir eHpertise in voicemail as eHpertise for messaging

2. Telsis

2..1 Company Overvie*

Telsis was founded in !8 and ,as a staff of 7# people worldwide- T,e Telsis groupincludes a researc,= development and production facilit( at its ,eaduarters in Fare,am=et,erlands= Singapore= Australia and >ort, America- T,e( offer a range of programma"leplatforms and t,eir goal is to ena"le operators to uic1l( develop and implement advancednetwor1 services for competitive advantage-

Interesting to note Telsis ,as an +erman language option on t,eir we"site-

2..2 Pro+ucts

Telsis provides a range of value2added service platforms ena"ling fiHed and mo"ile telecomsoperators to develop and implement advanced services faster and more efficientl( wit,inan( mo"ile= 0ST> or I> configuration- T,eir portfolio includes:

Interactive voice response s(stems

0rogramma"le switc,es

I> platforms

Intelligent S*S routing

T,e compan(Vs main product line is t,e %ceanrange of programma"le platformsw,ic, comprises t,ree 1e( elements Ja famil( of %cean fastSS0s5ServiceSwitc,ing 0oints6= t,e%cean fastI05Intelligent 0erip,eral6 and t,e %cean fastSC05Service Control 0oint6 J toget,er wit, a powerful visual service creationenvironment and management s(stem= t,e %cean fastSC


30/31

2.. S&OT

Table /'

Table /' Telsis 4outer S&OT

Stren#t)s &eanesses

- Solid reputation at Telco companies

o Founded in !88

o 7# staff

o 3nowledge in ICT=

infrastructure and networ1tec,nolog(

-


31/31

LogicaC*+ itself 5i-e- mindset= culture= slow response= lac1 of sufficient internalcommunication and colla"oration6 is its "iggest t,reatB

Telsis S.%T will "e furt,er updated- For more information= please contact *ar1eting-

2.. Generic S&OT on 4outin# Solutions

Table

Table ' 4outin# Solutions S&OT

Stren#t)s &eanesses

- 0erformance= fleHi"ilit( and relia"ilit(

-C,eap

- Small footprint in si&e and cost

- Telco references if somew,at limited

-

Documents

SMSC Competitive Overview 08