How network operators improve their efficiency and prepare for market consolidation

How network operators improve their efficiency and prepare for market consolidationBased on case studies of KPN-Group and Telefonica

Bernd Kreiling

Director Business Development

Agenda

Operational Efficiency

1. Driven by process optimization/harmonization

2. Market driven via merger/acquisition

Telenet

Agenda



Next Generation OSS

- OSS strategy resulting from business strategy

• Simple flat-rate/discount tariffs

• Multi-brand strategy

• strong partner (B2B2C/MVNO)

Business

Strategy

• Basic services with good quality

• Smart follower strategy

• Network/IT cooperation models

• Multi vendor/technology environment

Network

Strategy

• Market driven OSS products (COTS)

• Simple/lean network processes

• Managed service IT models

OSS

Strategy

Past Situation:

Legacy, over 15 years incremental developed landscape of planning-, documentation- and

configuration tools based on individual software

Dissatisfaction due to high complexity in processes and tools

• only few people with knowledge about config processes and tools (buy in)

• network quality issues due to shortcomings in config management processes and tools, too

many workarounds in place (e.g. overwriting of optimized parameters)

• time to adapt tools to new network feature or SW-releases

takes too long, too many interfaces, tools and supplier

• Wide range of tasks done by E-Plus to provide planning tools

(from research to database administration)

• Readiness for a change at all level

Next Generation OSS

- Motivation

Next Generation OSS

- strategic guidelines

1. Standardisation -> use of COTS products

-> participate from market driven developments

-> reduce number of interfaces, tools and supplier

2. Simplification -> increase efficiency by lean and simple network processes

-> standardize processes to supporting different sourcing models

-> improve network quality by reliable processes and data

3. Flexibility -> managed service model for OSS functionalities

-> OSS independent from equipment vendors

The project at E-Plus and Base was initiated by C-Level Management as

transformation project with three strategic guidelines:

Next Generation OSS

- objectives









The three guidelines are aiming for three objectives:

Next Generation OSS

- transformations









The three objectives need three transformations:

Technical Transformation

Next Generation OSS

- technical transformation (E-Plus OSS)

OSS landscape before transformation:

• No standard products used in service fulfilment domain

• network outsourcing model, some OSS tools outsourced to network operations partner

Next Generation OSS

- technical transformation (E-Plus OSS)

Transformation project:

• NGNP project covered full service fulfilment domain (planning, rollout, integration)

• Second project for performance management tools transformation

Next Generation OSS

- solution architecture service fulfilment

• Inventory as central data hub

• OSS process Management

• Configuration management

• Auto-Discovery & Reconciliation

• Integrated network planning and documentation modules

• Embedded GIS

• Embedded document management system

• OSS mediation to network

• Interface API to integrate expert tools

Comarch integrated

service fulfilment solution

Next Generation Network Planning

- technical transformation – best practice

The right transformation plan is key for success!

• Avoid big bang approach-> transformation in manageable phases

e.g. phases split according to network processes/user groups

• Comarch takes e2e responsibility for technical transformation-> transfer of legacy systems

(development, maintenance, transfer of assets/IPRs)

• Take care of data migration and data cleansing in the beginning-> prepare for cleansing in legacy systems

• Stick to standard functionality of new solution-> power to change processes / way of work

Business Process Transformation

Next Generation OSS

- business transformation

Legacy Processes(e.g.: parameter configuration process)Simplified & Optimized Processes

Next Generation OSS

- business transformation

• OSS Process management: Process transparency via BPM

Legacy status tracking tool Comarch OSS process management

Next Generation OSS

- business transformation – best practice

Ability to change is key for success!

• C-Level Management commitment for process changes!

• Comarch as driver for process improvements and automation!

• Integration of accepted key users

• Integration of workers council

• Communication, communication, communication….

-> on all levels, from management board to roadshows in regions

Delivery Model Transformation

Next Generation OSS

- managed service transformation

Comarch end to end responsibility:

• Product/Platform- set up of platform, data center, connectivity etc.

• System Integration- seamless and correct interfaces incl. OMC IF

• Transition- transformation of IT and processes, data migration etc.

• Business Process- propose optimizations

• Extensions- solution design, technology driven and business driven

• Service Operation- ensure KPI fulfillment, support processes

Next Generation OSS

- managed service transformation

OSS managed service

BSS

Network Partner A

Network Partner B

Network Operator

Vendor A Vendor B Vendor C

• All functionalities delivered as managed service, running

in Comarch data center

• User IF (E-Plus & partner) via Citrix environment (500

user ) or WEB access (2000 user)

• Data reconciliation and configuration via northbound

OMC IF

• EU data protection and compliance laws fulfilled

(ISO 27001, COBIT 4.1, ISAE 34.02)

• SLAs and KPIs defined and managed

• Support processes provided by Comarch (incl. support

tools)

- user management (full life cycle)

- incident management (direct hotline)

- service request (config. tasks e.g.

new antenna in catalogue)

- demand process (technology driven, business driven)

Next Generation OSS

- managed service transformation – best practice

Co-operation in multi partner environment is key for success!

• Define ITIL and business KPIs-> measure business value-> payment model based on business value

• Ensure co-operation with other partner -> office/IT supplier, network sourcing partner, equipment vendor

• Change of operator OSS-organisation required-> establish ITIL processes/organisation

Results and Business Benefits

Next Generation OSS

- project results and business benefits

1. Standardisation -> from 9 to 12 month for adaptation of legacy environment to

- 1 month for new network release

- 3 month for new ‘established’ technology

- 6 month for new technology on market

2. Simplification -> from 110 to 65 different types of business processes

- automated process steps

- consistent network data for operations and planning

- transparent and documented business processes

- optimised interface to network sourcing partner

- reorganisation of tasks in network departments

3. Flexibility -> significant reduction of OSS costs

- 5 years TCO reduction

- optimized financial engineering

- reorganisation of OSS department

Agenda



2. Market driven via merger/acquisition

Telenet

Legal and project set up

Comarch acting as “Trusted Third Party”

signing NDAs with both operators

Solution contracted by Telefonica as

“buying operator” in due diligence phase

(9 month before authority approval and

legal closer of the merger)

Comarch managing access rights to data

and guaranteeing that only approved data

is visible for the dedicated entity

Solution has been audited by law

company consulting Telefonica in merger

process to ensure that legal restrictions

(access rights etc.) are fulfilled

Comarch co-operating with Network & IT

partners of Telefonica and E-Plus to

implement technical solution

Comarch tactical network planning solution

- legal setup

Telefonica Network

& IT Partner

E-Plus Network &

IT Partner

Telefonica

(“Buyer”)

Comarch

“trusted 3rd party”

NDA with

permission to

access

inventory

data

E-Plus

Optional: Law

Company

auditing solution

Due diligence

Restricted

communication

Project Objective: Set up common network planning environment for tactical network planning:

Managed service environment: set up HW and connectivity to Comarch data center

Define common network data model (basekeys, naming concept, logical model)

Merging data from legacy OSS environment into common inventory database

Provide common network planning functionality for all domains (radio, transport, core)

Configure solution: in project agreed workflows/planning processes, engineering rules, target network configuration templates etc.

Synchronisation of planning data back to legacy tools, managing all dependencies between networks consolidation activities


- project objective

Comarch

tactical network

planning

solution

Frequent load of

Network data

Engineers from Operator and

Network Partners connected

from distributed locations

Common data model

Common planning applications

Common engineering rules

Project set up:

Joint project team working at „neutral“

location close to customer

in total 6 people from both operators in

core team (with personalized NDAs) plus

4 analysts from Comarch mostly onsite

Development/Configuration done in agile

development mode based on verifications

sessions of prototypes

Close co-operation with engineering team

defining future network engineering

guidelines


- project team & approach

Technical solution for tactical network planning

Common inventory DB with consolidated data in

common data model for network planning and

network consolidation activities (central data hub),

frequent synchronization with legacy OSS

Comarch managing data access based on legal

restrictions

Environment delivered in managed service model

(running in Comarch data center)

Comarch rule engine to pair and weight network

elements as pre-decision for “golden grid”

Comarch network planning modules (radio,

transmission, GIS) for validation of “golden grid”

and detailed common network planning

Comarch OSS process management (BPM) to

manage network planning and consolidation

activities between organisations

Optional: Comarch configuration management

(CM) to integrate consolidation activities into

common network (end to end service fulfilment)


- solution design

Example for Network Consolidation Process

3 phases to network consolidation


- network consolidation example process

Design of Target

Network

“golden grid”

Detailed network

planning

“activity plan”

Implementation of

consolidation activities

“realize the savings”

• Define target KPIs (e.g.

# of remaining sites)

• Kill site nomination

• Accuracy 80%

• Identify quick wins for

BC: sited to be

dismantled immediately

(termination of real

estate contracts)

• Capacity planning

(based on templates)

• Generate activity plan

• Accuracy 90%

• Evaluate dependencies

and define priorities for

optimized KPIs and BC

• Manage execution of

activities

• Manage changes of

target network design

• Verify KPIs and BC


- pairing & rating engine

Golden Star

indicates Winner

from rating

Phase 1: Define target network

design:

• Pairing and rating network

elements/sites

Results from rating visualized in GIS view

Phase 1: Define target network

design:

Pairing and rating network

elements/sites

Define working areas for

verification

Radio planning verification



Difference in radio propagation between networks

Phase 1: Define target

network design:

Pairing and rating

network elements/sites

Define working areas for

verification

Radio planning

verification

Transport planning

verification



Verify transport network (hubs, capacity etc.)-> if kill decision not feasible: VETO

Phase 2: Detailed planning of


Definition of activation areas



Activation Area = geographical area where consolidation activities and network changes are managed as one package (e.g. activation of national roaming)

Results and Business Benefits


- project schedule: The key benefit!

Public

announcement

of merger

Approval of

authorities

Legal closer

of merger

1 month9 month

3 month

Starting planning

of target network

(“golden grid)

-> 50 concurrent

users

Target Network defined!

Starting implementation

(e.g. termination of site

contracts) and detailed

planning of network


(vendor-swaps,

dismantelings etc.)

-> 250 concurrent users

Solution

accepted and

ready to use, first

user trainings

Comarch

Analyses &

scope

definition

Contract

and project

kick off

6 month

Environment

ready, first

prototype for

validation

Solution

verification

sessions

Legal milestones

Comarch solution implementation

Telefonica network engineering

Thank You.

How network operators improve their efficiency and prepare for market consolidation

Technology

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