1 / 12

A Holistic and Best Practices Approach to IMS Rollout (2008)

“Applying a ‘Holistic’ and ‘Best Practices’ Approach to IMS Rollout” presented at the IMS 2.0 World Forum in Paris, April 2008.

mjadoul
Download Presentation

A Holistic and Best Practices Approach to IMS Rollout (2008)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A ‘holistic’ and ‘best practices’ approach to IMS rollout Marc Jadoul Paris, 22 April 2008. IP TRANSFORMATION CENTER Partnering for change

  2. IP Transformation and IMS Rollout Why Do Service Providers Need to Transform ? ‘Legacy’ dominates revenue mix Low margins on new services Fast erosion of legacy revenues Impact on EBITDA margins = + * Growth Growth ~ 25 % ~ 45 % (~ 2- 4 %) YoY 42 % 35 % ~ 75 % Legacy ~ 55 % Legacy Revenue Mix 2000 2002 2004 2006 2008 EBITDA Mix Legacy revenues Source: service provider reports, Morgan Stanley Low return (RoA, RoI) due to ‘legacy’ & ‘proprietary’ infrastructure. Limited innovation capacity due to network silos & heavy processes/IT. Market Cap /Revenue EV/PPE OPEX/Revenue CAPEX/Revenue Traditionele telecom service providers < 3 < 5 > 62% > 18% New market players (Google, Yahoo, eBay, ...) > 8 > 53 < 47% < 10% RoA= Return on Assets; RoI = Return on Investments EV = Enterprise Value; PPE = Property, Plant, Equipment Source: the Yankee Group, Alcatel-Lucent 2 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  3. Case Study* An European Incumbent Revenues (M€) EBITDA margin (%) 5000 € 45% 40% 4000 € 35% 3000 € 30% 25% 2000 € 20% Baseline scenario Baseline scenario 1000 € Target scenario Target scenario 15% 0000 € 10% 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012 Environmental impact from: Transformation impact from: Price erosion Take rate Customer churn • Service delivery (NGN/IMS/SDP) • New services/bundles (VoIP, IPTV, multimedia, blended) • Network transformation (All-IP) • Process re-engineering and NG OSS/BSS • Competition • Regulation • Internal/external costs evolution (*) business case simulation based on anonymized service provider reports, analyst data and extrapolations of the former 3 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  4. Case Study* Impact of Transformation on the Business Results Impact on revenues Impact on EBITDA 29% 17% 6% 13% 71% 64% 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 4 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  5. A ‘Holistic’ Approach Transformation is No ‘Business as Usual’ Upgrade approach Transformation approach • Tactical infrastructure upgrades • Unchecked/uncontrollable TCO • Poor user experience • Technology & operations “stovepipes” • Strategic network transformation • Cost control & investment protection • Managed end-to-end QoS/QoE • Global IP transformation project QoE Costs Costs QoE OpEx OpEx CapEx CapEx Time Time • • • Increased churn ARPU erosion Pressure on margins • • • Customer-centric services ARPU growth Margin protection 5 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  6. A ‘Holistic’ Approach Transformation Occurs at all Layers of the Network Wireline Wireless Voice Content Applications New Services/Bundles New Services/Bundles OSS/BSS SDP/SDE & NG OSS/BSS SDP/SDE & NG OSS/BSS Video Data Public Internet IMS IMS Call/Session Control PSTN/PLMN Fixed Mobile Convergence Fixed Mobile Convergence IN & Telephony Apps IN & Telephony Apps IP/ MPLS Core IP Business/Consumer VoBB End-to-End VoIP Multiservice Edge Transport Class 4 & 5 NGN Tandem & Class 4 NGN Legacy Data Services Distributed R4 Access Networks Data Center IP Core IP Core/Backhaul Consumer High Speed Access High Speed Access Enterprise Convergence 6 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  7. A ‘Holistic’ Approach IP is a Means, NOT the Target ... Services • ROI on broadband access • New customers, higher ARPU • Enhanced ‘user experience’ Network • Common transport layer • Ready for multimedia • Getting rid of “stovepipes” Operations • Time-to-market • Cost reduction • IT, processes & organization 7 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  8. 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 8 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  9. A ‘Best Practices’ Approach Services Transformation 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 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 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 “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 9 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  10. A ‘Best Practices’ Approach Operations 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 10 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  11. Conclusions A ‘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. 11 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

  12. www.alcatel-lucent.com www.alcatel-lucent.com www.alcatel-lucent-iptc.com Thank You! marc.jadoul@alcatel-lucent.be 12 | IMS 2.0 World Forum | April 2008 All Rights Reserved ©Alcatel-Lucent 2008

More Related