Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations,...

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Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager [email protected]

Transcript of Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations,...

Page 1: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

Pre-/Postpaid & Fixed/Mobile Convergence: Why and How?

Dr. David Watrin,

Swisscom Innovations,

Billing Area [email protected]

Page 2: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Agenda

FMC in Swisscom Context

The 6 degrees influencing the Billing Organization and Infrastructure

Summary

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Swisscom is the Swiss incumbent having Fixed and Mobile Units

Swisscom Innovatio

ns

CEO

Group Communications

Group Human Resources

Group Operations & Related Business

Group Client Management

Group Finance & Controlling

SwisscomMobile AG

SwisscomFixnet AG

SwisscomSolutions AG

SwisscomIT Services

AG

Group Headquarters

Group Companies

Billag AG

Swisscom Broadcast

AG

Swisscom Immobilien

AG

Swisscom Eurospot

AG

Bluewin AG

Cablex AG

Directories AG

SICAP AG

Strategy & Group Steering

Page 4: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Swisscom Fixnet

Within Swisscom Fixnet the different business areas generally act independently:

– Retail Business (sale of network services and products)

– Swisscom Fixnet Wholesale (sale of network achievement)

– Customer Care

– Operator Services (information services)

– Payphone Services (public call boxes)

– Cards (Taxcards, Prepaid Cards)

– Bluewin (sale of Internet services and products)

Swisscom Fixnet in figures

Net turnover 2004 (consolidated)

CHF 5.715 billion

Private customers

2.9 million

Business customers

300'000

ADSL subscribers

802'000

Page 5: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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In addition to the decline of prices, fierce competition from Cable Operators, Fixnet is observing a new trendFix and Mobile usage in differentcountries (in %)

Source: Lars Finger, Swisscom Mobile, based on a Nokia customers survey Oct 2004

“Mobile-only” users in Switzerland : 5,5 %

A shift in customers’ bevaviour can be perceived

Page 6: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Swisscom Mobile

Switzerland's leading provider in the Swiss mobile communications market with a 66% market share

3.8 Mio NATEL® customers

25% of Swisscom Mobile's shares are held by the British-based Vodafone Group Plc and the other 75% by Swisscom Ltd.

Swisscom Mobile Customers

Prepaid / post-paid customers (in Mio)

Page 7: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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However Mobile Operators are also threatened by new technologies

2/3 of the mobile communications could be conveyed through other

communication mean (Fix line, VoIP…)

Page 8: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Swisscom is then investigating how a better future could be made out of convergence

FMCA

Swisscom launched the unique Unlimited Service in September 2004

Swisscom will launch Bluewin TV in 2006

– Acquisition of strategic shareholding in leading Swiss content provider

– Re-integration of the ISP, Bluewin, within Fixnet

Swisscom is a founding member of the FMCA

Swisscom offers 21 TV channels over UMTS via Vodafone Live! since September 2005

Page 9: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Our definition of Fixed Mobile Convergence

Convergence is the digitized takeover of communications and information in a network and device agnostic manner producing new services

Network Convergence

Voice and Data Circuit-Packet

Service Convergence

Fixed-Mobile, One Bill Unified Channel, Bundled Services

Device Convergence

Page 10: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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In today’s implementations the degrees of convergence are not respected in the same way

Network

Service

Device

Still to come!!

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IMS could help Swisscom to face its challenges

IMS offers the technology allowing the transformation of a vertically structured company to a horizontally one

Loca

l

Lon

g d

ista

nce

Wir

ele

ss

Inte

rnet

IPTV

Vertical, Integrated Horizontal, Disaggregated

Content/Applications

Community Applications

Communication Services

Devices

IP Network

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A simplified overview of IMS –IMS is not just about IP…

Page 13: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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IMS challenges the Billing Architecture and Processes on many levels

Business View

Technology View

New AAA mechanisms * Diameter

New concept of a session * ICID/GCID * Bearer

New charging paradigm * Real-time everywhere?

FMCMultiparty business models

Content

IP Multimedia Subsystem (IMS)IP Multimedia Subsystem (IMS)IP Multimedia Subsystem (IMS)IP Multimedia Subsystem (IMS)

Page 14: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Diameter is a robust and flexible AAA protocol

Diameter Base Protocol can be enhanced for specific purpose (e.g. Diameter SIP, Diameter Credit Control)

The protocol supports Real-Time requirement (Ro interface)

Diameter’s command (AVP) can be made vendor specific. More than 500 of them already exists… (e.g. Offline: Accounting Request/Answer; Online: Credit Control Request/Answer)

Page 15: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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However can your organization or your infrastructure handle such a flexibility? Diameter is a young standard (specified in

2001)

Diameters requires a high expertise

Diameter based services are not yet widely developed in Telco’s environments

Questions are then:

– Does your mediation platform provide the necessary plugins? Does it allow you to process different CDR formats in a timely efficient manner?

– Does your charging platform manage the Ro interface?

Page 16: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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IMS revolutions the concept of a call session

A key aspect of IMS is that it allows service interaction in a single customer session.

The correlation of charging information for an IMS session is based on the use of IMS Charging Identifiers (ICID)

The first IMS network entity within the SIP signalling path is responsible for assigning an ICID

ICID then be passed along the whole SIP signalling path in an end-to-end manner

For the charging correlation between the PS domain and the IMS, one or more GPRS Charging IDs (GCID), which identify the PDP contexts of the session, are passed from the PS domain to the IMS (be transferred from the GGSN to the P-CSCF)

The GCIDs are passed by the P-CSCF to the S-CSCF and the AS using SIP signalling. Along with the ICID, the S-CSCF passes the GCIDs to online and offline charging functions

Page 17: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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IMS revolutions the concept of a call session

However on certain details the specifications are not always precise. Therefore it is not sure that the ICID/GCID features are well implemented.

Should this be a task for the mediation platform?

Furthermore even if QoS is well addressed by IMS. What happens when the customer roams between different bearers? Can the QoS be guaranteed when a customer is moving from a WLAN network to EDGE while watching a video stream? Is this our customer’s issue or ours? If ours, can we offer SLA-based billing?

Page 18: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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CCF

CGF

MRF

HSS

SIP ApplicationServers

BGFCGGSN

SGSN

ChargingGateway

I-CSCFS-CSCFP-CSCF

Rf

Ga

Billing System

Bi

Offline

IMS also defines charging mechanisms: Offline & Online Charging

Event Charging

Bearer Charging

MRF

HSS

SIP ApplicationServers

BGFC

GGSN

SGSN

OnlineChargingGateway

I-CSCFS-CSCFP-CSCF

Ro

CAP

Session Charging

CorrelationFunction

Account

Rating

ISC

Billing System

Online

Online: Charging information can affectin real-time the service rendered

Page 19: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Our Marketing department favors the on-line approach

The traditional boundary between prepaid and postaid should vanish!

Prepaid Postpaid

Customized charging Online Balance Management

Itemized bills Specification of thresholds per account and/or per

service

Same service availability Differentiated alert management

Enhance sponsoring capabilities

Overall discounts

Page 20: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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However the commitment for a budget is hard to have and the technical departments are still fighting for which approach to choose

IN a

ppro

ach

IT a

ppro

ach

Network Department IT Department

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Can your infrastructure easily handle new contents?

IMS is designed to easily provide all sorts of content: Video streams; Gaming; Instant messaging; white board etc.

These topics are sold by the vendors since many years.

But how many Business Cases allowed to replace/update telco’s legacy environments?

Do your mediation platform, your rating engine allow a quick release of new content?

– Configuration/programming of new billable formats (e.g. lists)

– Flexible rating schemes

– New layout

– Flexible testing environment?

Page 22: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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IMS is an open platform allowing Third Party Content to be integrated Once IMS will be more widely implemented,

partnership will provide key market differentiator.

Big players are already here

IM and basic voice

Calender, address book

Email

Web hosting

Photo album,Blogging

E-commerse, Job hunting

Games, news, stocks

Video streaming

voice, video

Email

Address book

Web hosting

Photo album

Blogging

E-commerse

Games

Page 23: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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However how the operators prepared to handle these partnerships? Operators are still enjoying a dominant position

Can a Business Case be based on today’s revenue share agreements?

How well do you treat your partner?

– Are you transparent with him? Do you provide a real time assessment of your partners’ revenues?

– How well do you implement your revenue share? Is it based on statistics or on real usage?

– Are you willing to share the risks?

Are you considering Digital Right Management? Are Open Mobile Alliance DRM 1.0/2.0 the right solutions?

The SIMPAY initiative has been dismissed. Will we keep on imposing walled garden? Will M.I.A. create apostles?

Page 24: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Fixed Mobile Convergence is probably the main driver behind IMS FMC doesn’t always mean one Bill. However the

examples are getting more and more numerous

We have to differentiate between two cases: an offline model and an online one

Page 25: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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In the offline model the point of convergence is key

Mediation

Billing

Rating

Fixed InternetMobileIP Multimedia Subsystem (IMS)IP Multimedia Subsystem (IMS)IP Multimedia Subsystem (IMS)IP Multimedia Subsystem (IMS)Some circuit SwitchedNEs might still be there…

? 1. Consolidation of print files

2. Adjunct Rater

Page 26: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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These cases proved to be quickly doable and relatively cheap

The main issues with these scenarios are:

– To find a common customer id

– To make sure that the Account Receivable files are right

– To give a consolidated view to customer care

However Telia Sonera proved that this was feasible in less than 6 months

Page 27: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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An online FMC architecture might prove more difficult to build

Mutual Integration +2-3YInternal Convergence

Back OfficeSystems & Processes

Front OfficeSystems & Processes

Data /Content

Customer

Back OfficeSystems & Processes

Front OfficeSystems & Processes

Data /Content

Back OfficeSystems & Processes

Front OfficeSystems & Processes

internetMobileFixed

Customer Customer

Prepaid Prepaid PrepaidPostpaid Postpaid Postpaid

Residentia

l

Residentia

l

Residentia

l

Corpora

te

Corpora

te

Corpora

te

Page 28: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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A typical environment nowadays

MSC

GGSN

HLR

SS7 INAP,CAMEL, MAP CDR

ServiceLogic/Control

Rating

Balance Management

Cust./ProdDB

IN Node

Bills &Invoices

Mediation

VF live!PWLAN VASi-Server

3rd Pty.Server

RatingCust./ProdDB

Payment Collection

IP Mediation(Service Logic)

Real-TimeData control

Real-TimeEvent control

Real-TimeWLAN control

Reload

XDR

Page 29: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Afterwards an overall Session Control Layer should provide the true convergence

MSC

GGSN

HLRSS7 INAP,CAMEL, MAP

ServiceLogic/Control

Balance Management

IN NodeMediation

VF live!PWLAN VASi-Server

3rd Pty.Server

Middleware (EAI; SOA; PARLAY …)Cust./ProdDB

Payment Collection

Overall Session Management/Control(Service Logic)

Real-TimeData control

Real-TimeEvent control

Real-TimeWLAN control

Reload

XDR

InvoicingRating

Page 30: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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We specialise the environments by factorising common functionalities

MSC

GGSN

HLRSS7 INAP,CAMEL, MAP

ServiceLogic/Control

Balance Management

IN NodeMediation

VF live!PWLAN VASi-Server

3rd Pty.Server

Middleware (EAI; SOA; PARLAY …)Cust./ProdDB

Payment Collection

IP Mediation(Service Logic)

Real-TimeData control

Real-TimeEvent control

Real-TimeWLAN control

Reload

XDR

InvoicingRating

Page 31: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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At the end of the process a natural IMS implementation should have taken place

MSC

GGSN

HLRSS7 INAP,CAMEL, MAP

ServiceLogic/Control

Balance Management

IN NodeMediation

VF live!PWLAN VASi-Server

3rd Pty.Server

Middleware (EAI; SOA; PARLAY …)Cust./ProdDB

Payment Collection

Overall Session Management/Control(Service Logic)

Real-TimeData control

Real-TimeEvent control

Real-TimeWLAN control

Reload

XDR

InvoicingRating

CSCF/ event charging/

session charging/Bearer charging

HSS

HSS

Page 32: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Pre- & postpaid convergence would be then an enabler of a “mutual integration” approach

InternetMobileFixed

Convergent Billing

Convergent Rating & Discounting

Rating & Discounting

Rating & Discounting

Rating & Discounting

AAA SCM BM AAA SCM BM AAA SCM BM

OSA Parlay,Jainslee,Web Services,XML, …

OSA Parlay,Jainslee,Web Services,XML, …

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Conclusions

IMS offers tremendous opportunities to Telecom Operators

However it might challenge your Billing Organization & Infrastructure

– Know-how should be assessed

– Real-time requirement should be assessed. In this latter case a thorough Business Case should be conducted:

– Which approach should be chosen?

– OPEX should particularly be proven

Page 34: Pre-/Postpaid & Fixed/Mobile Convergence: Why and How? Dr. David Watrin, Swisscom Innovations, Billing Area Manager David.Watrin@swisscom.com.

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Thanks for your attention...Any Question?

For additional information

– about Swisscom: visit www.swisscom.com

– e-mail to: [email protected]

– Swisscom Innovations,INO-SSM,

Ostermundigenstrasse 93,3050 Bern,Switzerland

Phone: +41 79 278 97 73