Upload
marc-jadoul
View
451
Download
1
Embed Size (px)
DESCRIPTION
“Applying a ‘Holistic’ and ‘Best Practices’ Approach to IMS Rollout” presented at the IMS 2.0 World Forum in Paris, April 2008.
Citation preview
IP TRANSFORMATION CENTERPartnering for change
A ‘holistic’ and ‘best practices’approach to IMS rolloutMarc JadoulParis, 22 April 2008.
All Rights Reserved © Alcatel-Lucent 20082 | IMS 2.0 World Forum | April 2008
IP Transformation and IMS RolloutWhy Do Service Providers Need to Transform ?
Source: the Yankee Group, Alcatel-Lucent
Low return (RoA, RoI) due to ‘legacy’ & ‘proprietary’ infrastructure.Limited innovation capacity due to network silos & heavy processes/IT.
Traditionele telecom service providers
New market players(Google, Yahoo, eBay, ...)
Market Cap/Revenue
EV/PPE OPEX/Revenue CAPEX/Revenue
< 3
> 8
< 5
> 53 < 47%
> 62%
< 10%
> 18%
RoA = Return on Assets; RoI = Return on InvestmentsEV = Enterprise Value; PPE = Property, Plant, Equipment
Source: service provider reports, Morgan Stanley
‘Legacy’dominates
revenue mix
~ 55 %
~ 45 %Growth
Legacy
Revenue Mix
Low margins onnew services
~ 75 %
~ 25 %Growth
Legacy
EBITDA Mix
+2000 2002 2004 2006 2008
35 %42 %
Impact onEBITDA margins
=(~ 2- 4 %) YoY
Fast erosion oflegacy revenues
*Legacy revenues
All Rights Reserved © Alcatel-Lucent 20083 | IMS 2.0 World Forum | April 2008
0000 €
1000 €
2000 €
3000 €
4000 €
5000 €
2005 2006 2007 2008 2009 2010 2011 2012
10%
2005 2006 2007 2008 2009 2010 2011 2012
15%
20%
25%
30%
35%
40%
45%
Target scenario
Baseline scenario
Target scenario
Baseline scenario
Revenues (M€) EBITDA margin (%)
Case Study*An European Incumbent
Environmental impact from:
Price erosion• Competition Take rate
Customer churn• Regulation• Internal/external costs evolution
Transformation impact from:
• Service delivery (NGN/IMS/SDP)• New services/bundles (VoIP, IPTV,
multimedia, blended)• Network transformation (All-IP)• Process re-engineering and NG OSS/BSS
(*) business case simulation based on anonymized service provider reports, analyst data and extrapolations of the former
All Rights Reserved © Alcatel-Lucent 20084 | IMS 2.0 World Forum | April 2008
Case Study* Impact of Transformation on the Business Results
Impact on revenues Impact on EBITDA
71%
29%
64%13%
6%
17%
Transformation impact from:
Service delivery (IMS/SDP/SDE)
New services/bundles (VoIP, IPTV, multimedia, blended)
Network transformation (All-IP)
Process re-engineering and NG OSS/BSS
(*) business case simulation based on anonymized service provider reports, analyst data and extrapolations of the former
All Rights Reserved © Alcatel-Lucent 20085 | IMS 2.0 World Forum | April 2008
A ‘Holistic’ ApproachTransformation is No ‘Business as Usual’
• Strategic network transformation• Cost control & investment protection• Managed end-to-end QoS/QoE• Global IP transformation project
• Customer-centric services• ARPU growth• Margin protection
Costs
Time
OpEx
CapEx
QoE
Transformation approach
• Tactical infrastructure upgrades• Unchecked/uncontrollable TCO• Poor user experience• Technology & operations “stovepipes”
• Increased churn• ARPU erosion• Pressure on margins
Time
Costs
OpEx
CapEx
QoE
Upgrade approach
All Rights Reserved © Alcatel-Lucent 20086 | IMS 2.0 World Forum | April 2008
Wireline
New Services/Bundles
SDP/SDE & NG OSS/BSS
IMS
IN & Telephony Apps
Fixed Mobile Convergence
Class 4 & 5 NGN
Legacy Data Services
IP Core
High Speed Access
Business/Consumer VoBB
Wireless
New Services/Bundles
SDP/SDE & NG OSS/BSS
IMS
IN & Telephony Apps
Tandem & Class 4 NGN
Fixed Mobile Convergence
End-to-End VoIP
Distributed R4
IP Core/Backhaul
High Speed Access
A ‘Holistic’ ApproachTransformation Occurs at all Layers of the Network
Applications
Call/SessionControl
IPMultiservice Edge
IP/ MPLSCore
Transport
Consumer
Enterprise
Access Networks
PublicInternet
Voice
Video
Content
Data
OSS/BSS
DataCenter
PSTN/PLMN
Convergence
All Rights Reserved © Alcatel-Lucent 20087 | IMS 2.0 World Forum | April 2008
A ‘Holistic’ ApproachIP is a Means, NOT the Target ...
Services
• ROI on broadband access • New customers, higher ARPU• Enhanced ‘user experience’
Operations
• Time-to-market• Cost reduction• IT, processes & organization
Network
• Common transport layer• Ready for multimedia• Getting rid of “stovepipes”
All Rights Reserved © Alcatel-Lucent 20088 | IMS 2.0 World Forum | April 2008
A ‘Best Practices’ Approach Network Transformation
“Less is more” and “simpler is better” …• Regain economies of scale and allow cost synergies• One single multi-service network, without (network & service) silos
… but don’t under-estimate end-to-end complexity
• “Standards compliance” is not always a synonym for “interoperability”• Understand the legacy before designing the next generation• Work with a prime Network Integrator to manage technology, solution
architecture, project and multi-vendor interdependencies
QoS is more than “bits per second”
• It’s the overall quality of the end-user experience (QoE) that matters• Invest time & money for upfront QoS/QoE design, testing and validation• Always develop and evaluate the service against well-defined KPI/KQIs
Inter-working is a business decision, not a technical one
• Inter-working with PSTN and peering with VoIP are hard requirements• Don’t (mis-)use SIP for what it was never intended for• Security, QoS and inter-carrier roaming and settlement need to be
covered by end-to-end IP peering scenarios
All Rights Reserved © Alcatel-Lucent 20089 | IMS 2.0 World Forum | April 2008
A ‘Best Practices’ ApproachServices Transformation
Avoid the voice feature parity/transparency trap• A service portfolio based on “differentiation” instead of “continuation” will
minimize R&D costs and and maximize revenue potential• Synchronize with marketing & sales early in the project to challenge
features and to quantify costs, risks and benefits of approaches• Work closely with vendors to communicate your priorities and expectations
“Plain Vanilla” services are not enough• A well designed SDP will allow to smoothly ramp-up move from voice
to converged, blended and personalized services• Three activities not to neglect: MARKETING, MARKETING, and MARKETING
IMS is a great framework for design and delivery• Appoint Solution Architects to maintain integrity of the architecture• Adopt a consistent set of R&D practices and an efficient delivery organization • Get organized for a dramatically shorter SLC: weeks instead of 12-18 months
IMS should not be deployed in isolation• Launch new services bundles combined with a portfolio rationalization• Align your network and service capability roadmaps• Create a prioritized transition & launch plan to balance revenues with costs
All Rights Reserved © Alcatel-Lucent 200810 | IMS 2.0 World Forum | April 2008
A ‘Best Practices’ ApproachOperations Transformation
IP Transformation changes everything• Network Interface Points: e.g. collocation from CO to street cabinets• Services: e.g. regulated vs. non-regulated• Products & vendors: network, IT, CPE … content• Customer Interfaces: “Zero-Touch” provisioning and Customer Self-Service• In-house skills: spanning the present and the new technology and operations
Migration will not happen overnight• Physical Migration, Network Database Migration, Network Routing Migration,
OSS/BSS Migration, …• Migration strategy & planning, tools development and customer communication
Network transformation should go hand-in-hand with IT• Transform operations from managing networks to managing services and customers• New business and usage models require flexible rating, charging and billing• Challenges the processes, not just the technology !
Each transformation project is unique• Transformation may start anywhere in the service provider’s organization• Geography, local market, regulation, legacy infrastructure, resource availability,
budgets, etc.may affect transformation strategy, scope, roadmap and implementation
All Rights Reserved © Alcatel-Lucent 200811 | IMS 2.0 World Forum | April 2008
ConclusionsA ‘Holistic’ and ‘Best Practices’ Approach to IMS Rollout
• IP transformation is a ‘once in a lifetime’ business opportunity for service providers
• IMS is a key standards framework and reference architecture for new service development, deployment and delivery
• IMS rollout needs to be part of a ‘holistic’ network +services + operations transformation vision
• A ‘best practices’ approach and working with an experienced partner are the most effective paths towards predictable execution
• Carriers worldwide are leveraging Alcatel-Lucent’s global reach, experienced technical staff, and IP subject matter expertise to accelerate their network evolution and to incorporate the lessons learned from the early adopters
Transform predictably. Transform comprehensively. Transform profitably.
All Rights Reserved © Alcatel-Lucent 200812 | IMS 2.0 World Forum | April 2008
www.alcatel-lucent.comwww.alcatel-lucent.comwww.alcatel-lucent-iptc.com
Thank You!