Post on 15-Aug-2015
Get Serious About VoIP, Enabling Managed
TransformationMichael AndersonTelcordia Technologies
Telcordia Technologies – 2
Get Serious About VoIP, Enabling Managed Transformation
The MarketWhy You Should CareThe ChallengesThe Enablers
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VoIP Long Distance Global Traffic and Revenue Forecast
Source: Global VoIP Market 2004, iLocus, July 2004
“Revenues in 2003-04 for VoIP service provider sector stood at an estimated $4.9 billion for international and national long distance markets. This is forecast to touch $19 billion by the year 2009.”
“By the year 2009 near about 139 billion minutes of international VoIP traffic could be generated which should represent about two-thirds of theoverall international telephone traffic.”
Traffic
Revenue
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VoIP GrowthWhy You Should Care
Long Distance Service Providers Face a Huge Challenge– Erosion of current domestic and international $145 billion market IDC, 2003
– With 1/3 of international traffic left by 2009, current $35B could shrink to $10B or less with downward price pressure
Network Equipment Providers Must Shift Focus– Revenues for VoIP equipment expected to grow from $2.1billion to $10.2
billion by 2009 - up 50% from 2003 Global VoIP Market 2004, iLocus, July 2004
OSS/BSS Suppliers Must Support New World Order – Support multiple services and offerings combinations – not a silo or
monolithic– Integrate into carriers operations, business processes and workflow – Provide extensibility to support anticipated future requirements –
workflow, service offerings
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Service Provider Business Challenges
Growing Business Revenue in a market where there is slowing subscriber growth and increasing challenges with achieving returns from new service in an increasingly competitive market
Profitability where competition is lowering ARPU in traditional voice service offerings forcing a greater business dependency on newer services with different cost structures
Risk where new service offerings are increasingly dependent on new unproven models, revenue sharing, new devices requiring new payment options, and significant investment
Debt where large network and license upgrades have been funded by borrowing with increasing repayment costs
Shareholder Value in a increasing disillusioned market, with unexpected winners and losers emerging so that shareholders are closely watching key business indicators and scrutinizing strategies
Cash to meet operational costs, service debt and improve attractiveness to the market, cash flow is critical
Cost Containment making it essential to understand, analyze, manage, and control the costs involved in all aspects of infrastructure development, service delivery and competitive marketing and billing capabilities
Service providers must offer exciting new service bundles with agility and efficiency.
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VoIP Operational Challenges
Provide effective customer self-service that enables real time adds & changes through customer portal with instantaneous network adaptation
Operate in a low-cost “getting-started” environment that can scale and facilitate flow-through
Enable rapid definition and deployment of advanced IP-based services
Efficiently manage all new touch-points introduced by new services and features
Support voice services that traverse both circuit and packet networks
Manage end-to-end QoS and SLAs across converged and multi-provider networks
Support LNP, number management, CALEA and E911 Develop techniques for mitigating security threats
Customer Care
Fulfillment
Assurance
Regulatory
Security
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Enabling Transformation with VoIP Readiness Investments
Customer Care
Fulfillment
Assurance
Regulatory
Security
VoIP Requirements
Transformational Requirements
Fund VoIP with Transformational Economics
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Why are economics important?
Positive gains are crucial as the enterprise understands more and more of the true cost of doing business over project phases, and the metrics involved.
Acquisition andImplementation
TimeDirect: Software, Hardware, Implementation, Training, Systems Integration, Configuration, Data Migration
Indirect: User Training, Administration, Overhead, Management, HVAC, Facilities, Hardware Upgrades
Cost
sPh
as
e
Maintenance Upgrade
Operations
Direct: Operations personnel, maintenance charges, IT resources, maintain procedures
Indirect: Order to cash delays, system downtime, apply fixes, planning and management,
Direct: Software upgrade fees, integration time, data migration, training fees
Indirect: Opportunity costs of IT resources, user downtime, retraining, user confusion, system downtime
Source: Return on Investment ,Thomas Pisello, Information Economics Press, New Canaan, Connecticut
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OSSs As EnablersMust Migrate to Deliver “Must Have” Efficiencies
Service Specific OSS Multi-Faceted, Multi-Service OSS
Services
Local Phone Provider
Long Distance Provider
CATV OperatorInternet Access Provider
Wireless Voice Provider
Non-Broadcast
VideoInternet Access
Local Phone
Long Distance
Wireless Voice
ServicesIncumbent Service Operators
Local Phone Provider
Long Distance Provider
CATV / HFC OperatorInternet Access Provider
Wireless Voice Provider
Non-Broadcast
VideoInternet Access
Local Phone
Long Distance
Wireless Voice
Incumbent Service Operators
Cross Marketing
Cross Marketing
Substitution, Displacement and Cross Marketing
Online
Video
Content
ADSL orSatellite
Source: TMNG
?
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Functional
Technical
Operational
Economical
Shift in Evaluation, Buying, Success CriteriaIncreased Demand for Proof Points & Shared Risks
OngoingAccountability
One Time Accountability
Table stakes to business imperatives
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Aim Small, Miss Small – Ensure ROI
Positive ROI PointBenefits Exceed Costs
RealizedAccruedReturns
$
Acquisition andImplementation
Maintenance Upgrade
Operations
Time
Pla
nned
Begin
nin
g o
f R
OI
•Predictable•Achievable•Realistic•Measurable•Fast
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Benefits of NGS OSS
Subscriber self-service; delegate management
Fast introduction of the latest services and technologies – Increase revenues by increasing addressable market, targeting new
offerings - serve businesses, youth, credit challenged – Price protection with bundled consumer and business offerings– Increase ARPU with broadband and premium services
Modular platforms with flexible business rules to support any service, any business model
Lower total cost of ownership
Automated management of multi-technology networks– Flow-through service order activation and provisioning
Manager-of-manager for network surveillance and troubleshooting
Telephone Number, IP Address Management
Customer Care
Fulfillment
Assurance
Regulatory
Security
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Managed Transformation
Fund Transformation Through Iterative Improvements
The Foundation
The Transformation
StatusQuo
InventoryCosts,
Capabilities
Foundation & PlanningROI Driven
TransformationStaged Execution
Increasing Efficiency Increasing
Product Margins
Define Needs, $$
Model
Monetize Initiatives, Prioritize
New GenSystem
Invest ROI, Execute
Execute, Drive ROI
X
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“It is not the strongest of the species who survive,
not the most intelligent, but those who are the most
adaptive to change.”Charles Darwin