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Operating Model for Digital PMROperating Model for Digital PMR

3rd TETRA Middle East ConferenceGraham Wilde

BWCS

6 September 2005

graham.wilde@bwcs.com

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Who are BWCS?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”

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Why talk about an operating model?Why talk about an operating model?

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Priority given to thinking about: Priority given to thinking about:

• Acceleration

• Top Speed

• Alloy Wheels

• Leather seats

• Sat-Nav

• MP3 Player

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And less about: And less about:

• Acceleration

• Top Speed

• Alloys

• Leather seats

• Sat-Nav

• MP3 Player

• Insurance cost

• Service interval

• Service cost

• Depreciation

• Warranty

• Anti-theft devices

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In digital PMR, the equivalents are:In digital PMR, the equivalents are:

• 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?

There is no single solution to suit everyone

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Who cares who runs the network?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.

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What does a network operator do?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

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Options for Network OperationOptions for Network Operation

Option Name Who owns the network assets?

Who operates the network?

User Control A government ministry or agency

A major user (e.g. Police)

Direct Control A government ministry or agency

A government ministry or agency

Government owned company

Government owned company

Government owned company

Outsourced operations

A government ministry or agency

A private company

Total outsourcing A private company A private company

Increasingly different from earlier models

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Examples from EuropeExamples from Europe

Country Network Name Operator is:

Belgium ASTRID Private company

Czech Republic PEGAS Government

Finland VIRVE Government owned company

France ACROPOL & RUBIS Government

Netherlands C2000 Private company

Slovakia SITNO Government

Spain SIRDEE Private company

Sweden Rakel Private company

UK Airwave Private company

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Key Factors to ConsiderKey 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?

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Pros and Cons of Private OperatorsPros and Cons of Private Operators

For Against

Risk Often better at handling low level risk

May not have resources to deal with major risk

Contract Forces you to define goals May be hard to manage

Labour Works outside civil service pay policy

Finances May be easier to track if company is dedicated to PMR operation

May be much harder to track if it isn’t.

Core Tasks Often skilled at outsourcing non-core tasks

But needs to be closely monitored

User representation

Can be made to be more accountable than government or single user

Unless clear framework exists, could be as bad as government or single user

Culture Usually better than government or single user

Unless under undue financial pressure

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A final word about private operatorsA 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)

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Which operating model is right for Which operating model is right for you?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

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Thank you!Thank you!