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Managing Subscriber Services in FTTH Networks

Janez Öri, Tomo Bogataj, Iskratel FTTH Conference 2012

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"My business worked for decades!“

"What is wrong all the sudden?"

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Trends in service-delivery models

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The world is changing Media convergence – services diversification OTT services are challenging the "traditional" service-

delivery models

What should telecoms do to address the changes? Change the business model? Change the way they build the networks? Change how they deliver and charge for services?

And if so, why now?

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Unsustainable trend for EU telecoms Disturbing data for 2010/2011 YoY changes Investment +5% Service revenues –2% A trend that cannot be sustained Time to change the business model Continued increase in usage of OTT applications EU telecoms have to develop new business models

that will generate new revenue streams

Source: European Telecommunications Network Operators' Association (ETNO)

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Is offering higher speeds enough?

5

a) Yes

b) No

www.humanthermodynamics.com

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The path to sustainable future Higher speeds are important to keep customers

Adopting new models for service delivery is the way

to compete successfully in a market

Both are a necessity for telecoms to stay afloat

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OK, so what is a telecom to do now? Let your network generate you a revenue stream Regardless of services and their service providers Regardless of media used While keeping existing services and building on

existing infrastructure

This is an easy task, right?

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The sustainable goal

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How to get there? Turn a dumb-pipe network into a value-added network Address end-to-end service delivery Implement distributed policy enforcement Guarantee QoS, but focus on QoE Position policy and charging where they are efficient

The holy grail: ARPU

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Intelligent service delivery

VoIP Internet

IPTV

Serv

ice

Net

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Inte

rnet

IPTV

VoIP

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Agg

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tom

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Sm@rt phones Tablets

Media TV /NTB

Serv

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/App

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Telc

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Network Provider

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Sess

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awar

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E- s

ervi

ces

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Policy enforcement and control Efficient positioning of policy enforcement Traditional model: BRAS as a single PEP Open-access networks require distributed PEPs AAA clients located at intelligent access Network scalability and segmentation

Efficient positioning of policy control Traditional model: AAA server as a centralized PCP Open-access networks require several PCPs

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Trends to consider Penetration of MPLS(-TP) into the access The effect on traditional role of a BRAS Does BRAS become a LSR? What about AAA?

The move towards EPC Convergence to IMS/EPC The introduction of BPCF entity

Media-independent policy-enforcement entities Awareness of access-network conditions,

especially if shared (PON, mobile, DSL)

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Conclusion Clearly, EU telecoms need to Generate revenue from services, not wires Change the business model accordingly to stay

competitive

Which require a different approach to service provisioning and policy control