Operating Model for Digital PMR

1. Operating Model for Digital PMR 3rd TETRA Middle East Conference Graham Wilde BWCS 6 September 2005 graham.wilde@bwcs.com

2. Who are BWCS? • BWCS is a management consultancy specialising in telecommunications • We work with vendors, network operators and users organisations • We have worked on assignments covering digital PMR, 2.5G and 3G cellular, and fixed line networks • In Europe, Middle East and Asia-Pacific • Publishers of “Building a Cost Effective Trunk Dispatch Mobile Radio Network”

3. Why talk about an operating model?

4. Acceleration Top Speed Alloy Wheels Leather seats Sat-Nav MP3 Player Priority given to thinking about:

5. Acceleration Top Speed Alloys Leather seats Sat-Nav MP3 Player Insurance cost Service interval Service cost Depreciation Warranty Anti-theft devices And less about:

6. Geographic coverage Handheld vs vehicle coverage Network technology Network topology Network features Terminal devices Which vendor? Roll-out phasing Who will operate the network? How can the network be operated cost-effectively? How should users pay to use the network? How do we ensure that the network stays aligned with user requirements in the future? In digital PMR, the equivalents are: There is no single solution to suit everyone

7. Who cares who runs the network? • Today’s digital networks are more sophisticated than ever • Which means they are more complex to operate • And more costly too • Often, many agencies will share the same network • The consequences of strategic or tactical errors in network operation are greater • It is more important than ever to consider who will run the network, and how.

8. What does a network operator do? • Network operations tasks • Network engineering • Maintenance • Billing and customer care • User Training • Vendor management • Provision of management information • Management of relationship with government • Implementation of security policy • Disaster planning • Public relations • Sales and marketing of network services

9. Options for Network Operation Increasingly different from earlier models

10. Examples from Europe

11. Key Factors to Consider • Ability to manage risk/Allocation of risk • Risks from malicious attack, espionage, weather, technology, project management, commercial • Contract complexity • What is your track record of managing complex contracts? • Labour flexibility • How will you find and retain the best people? • Cost effectiveness • What is your track record of running efficient operations? • Financial transparency • How will you see where the money comes from and goes to? • Core tasks • What are the core tasks of operation versus those which are non-core? • Number of current and future user groups and user representation • How will you ensure users get what they need (within reason)? • Culture of service provision • How will you ensure that good service is provided? • Regulation • What are you allowed to do?

12. Pros and Cons of Private Operators

13. A final word about private operators • When used, they tend to have a pre-existing track record in defence in that country, and are often headquartered in that country • Belgium • Telindus is a shareholder in ASTRID • Netherlands • KPN is a shareholder in TetraNed • Spain • Telefonica Espana is a shareholder in Telefonica Moviles • Sweden • Saab is a shareholder in Rakel • UK • Contract originally awarded to BT, which de-merged its mobile arm (now called mmO2)

14. Which operating model is right for you? • There is no ‘one size fits all’ solution • But setting the operating framework for the network operator is crucial, no matter who they are • Even government departments should have a clearly defined set of responsibilities, clear lines of reporting and accountability to users • Big benefits to early and thorough planning

15. Thank you!