norbert matuku fixed mobile convergence: a business transformation driver
TRANSCRIPT
• Fixed voice revenues have been eroded by mobile services.
FACT
• Convergence is the way for Fixed Operators?
Introduction
• Traditional Telcos need new revenue streams.
• Over The Top Applications have changed the Industry.
• The competition is now stiff.
• Is LTE the Answer to revenue woes?
• Content is the Game Changer?
• Customer Experience is the answer?
Fixed Mobile Convergence?
• FMC is not new.• It is not a service. It is a concept.• An attempt to reverse Fixed-
Mobile Substitution (FMS).• Seamless connectivity between
fixed and wireless telecommunications networks from one device.
• Optimize transmission of data, voice and video to end users, no matter what their locations or devices.
What was FMC originally?
In essence, FMC means that a single device can connect through and be switched between wired and wireless networks.
• One Device• One Number• One Message Box• One Address Book• One Secure Connection• One Point of Contact• One Bill
FIXED MOBILE CONVERGENCE?
The focus of FMC and next generation networks is now on using fixed line infrastructure to achieve several things:
a) To provide real solutions to customers
• Business• Consumer• Home entertainment
b) To best provide backhaul to high speed mobile data networks – everywhere.
c) To offload high end sources of traffic from mobile networks onto peripheral access networks (WiFi, Femto-cells , etc).
MobileFixed
Circuit switched
Packet switched
Voice
Multimedia communication
The focus of Next Generation Networks (NGN) & FMC initially was to use one device on any network, the market has now shifted towards using multiple devices to use the same service on any device and on any network. Customers have multiple devices for different things but they need the same services seamlessly.
FMCFIXED MOBILE CONVERGENCE
NETWORK CONVERGENCE
DEVICE CONVERGENCE
SERVICE CONVERGENCE
FMC can be viewed at 3 layers
FMC can be best explained as a number of technology components that work together at different layers to optimize the interoperability between services (or applications), different devices and different access networks.
This means that a multitude of services
(P-P, P-C, C-P) can be provided to the same user over
different access networks and to different devices.
Allows multiple applications to be run, reusing the same
functions for identification and authentication. The
mobile device supports more and more functions in
addition to telephony, e.g. Camera, TV/Video and email.
This involves consolidation of fixed and mobile networks to provide
different user services, with telecom-grade quality of service, to
several access types with an emphasis on operator cost efficiency.
NETWORK CONVERGENCE
Self Service
ChannelOperations
Wireless Voce/ Data
Access Network
CustomerOperations
WiMAXRAN
Switching (Core Network)
Data Network & AAA
Acc MgmtSales Orders Charging
Invoicing
Case Mgmt Rating
MediationCustomer
Mgmt
CRM Client Single POS
Customer Support
Retailers
Reporting / MIS
Voucher Mgmt
Product Cat
Payables
Receivables
Inventory
CTI
Call Centre
CTI
Self Service web
Customer
IVR
Customer
SMS
Customer
Fiber
Transmission & Data Network
ISP VPN
CRM/BillingFinancials
Fixed Voice /Data
Access Network
OSP
3rd Party
Interconnect
CONVERGENCE
Africa (Sub-Sahara) Fixed Line Business Highlights
Key Statistics
Total Revenue (US$ Billion) 8.3 (2011), 12.2 (2015
Revenue Growth (CAGR) 8.8%
Total Subscribers (Million) 11.8 (2011), 13.8 (2015)
Subscriber Growth (CAGR) 3.3%
Wire line Subscriber Growth 1.8%
Internet Subscribers (Million) 35.9 (2011), 310.8 (2015)
Internet Subscriber Growth 60.2%
Wireless Internet Subs (Million) 1.8 (2011), 31.1 (2011)
Wireless Internet Growth 102%
Source: Frost and Sullivan
… Data from Numbers
Investing in Wireless voice technologies where growth will be high.Late Entrant Risks!Not our area of strength?“Good” spectrum already taken?
The growth in fixed subscriber base cannot sustain our livelihood.This is our comfort zone!We must bleed the assetsOur investment in fixed is a sunk cost
Though Voice is still major contributor, its share is plummeting.Data Usage is increasing.Consider Market segments and Generational cahoots.
Most legacy systems have their own core network, own billing and management system
System Architecture is that of Silos; services and resources cannot be shared
Fixed Line Billing
CDMA Billing
WiMAX Billing
Fixed LineCore NW
CDMA Core NW
WiMAX Core Network
Legacy Network Operational View
Where Are we Bleeding? System Licences especially on stand-alone databases
Stand-Alone systems are not primed for the competitive environment.
How do we transform…….
Maintenance and SLAs
Human Capital Waste
Operational Overheads: Power
Where do we Land?
Operationally, FMC stops bleeding: Single Subscriber database Streamlined SLA Requires less human resources Less Operational Overheads
On Services: Unified Accounts Unified Voucher Tariff Flexibility Less Operational Overheads
On BOSS Single Customer Operations Single Channel Operations Unified Self services
CUSTOMER RELATION MANAGEMENT
Customer Management
Complaint Management
Sales & Order Handling
Customer Interaction Management
SERVICE PROBLEM MANAGEMENT
Create Service Trouble Report
Report Service Problem
Diagnose Service Problem
Close Service Trouble Report
Survey and Analyse Service Problem
Track and Manage Service Problem
Converged Billing and CRM…
BILLING & RATING
Products & Service Configuration
Rating & Discounts
Roaming
Billing and Invoicing
Partnership Management, Revenue Sharing, and Settlement
Revenue Assurance
Fraud Prevention
WORKFORCE MANAGEMENT
Manage Appointment Schedule
Administer Workforce
Issue Work Orders
Assign Work Orders
Track and Manage Work Orders
Close Work Orders
FINANCIAL APPLICATIONS
System Administration
Payments, Collections and Adjustments
Credit Control
Bad Debt Management
Material Management
Flexible standardized end to end architecture for multimedia services (based on SIP)
Multiple application server triggering for rich functionality.
Centralized user database
Access independent
Policy control for guaranteed Quality of Service levels
Industry accepted standard
Multi-vendor support
IMS BenefitsIMS is not a product but … defines architecture, functions and interfaces
FMC Product - Example
+
Convergence Level
Description
Invoice One Invoice (Voice and Data)
AccountsOne Account for Fixed and Mobile Services
4 Wallets (SMS, Fixed/Wireless Voice, GSM Voice, Data)
BillingOnce-Off N$X, MRC N$X, SMS N$0.X/Unit, MMS N$0.X/Unit
Unlimited Free Calls in Closed User Group (FMC’d 1 Fixed + 1 Mobile Numbers)
Included 1000Min, 10G, 100 SMS, 50 MMS. Uncapped ADSL
24 and 36 Months Contracts
RateOne Rate for Mobile Voice N$0.X/Peak, N$0.X Off-Peak
One Rate for Fixed and VoIP/VOBB; N$0.X peak and N$0.X Off Peak
One Rate for Fixed and Mobile Data; N$0.X peak and N$0.X Off Peak
Devices Included - 2 x Fixed, 1 x GSM, 1 x GSM Dongle, 1 x LTE Dongle, 1 x ADSL Advanced
Extra Optional - FTTH incl. WiFi Router, Tablet, Dual SIM Handset, 1 x GSM/WiFi Dongle
Tripleplay TN Public WiFI Access – Internet Access and IMS/SIP VoIP Call
Private WiFi – Internet Access, IMS/SIP VoIP & VoBB Calls, Video-On-Demand/IPTV
Mobile business flows along FMCG; It requires a different approach to fixed business Mind-set shift New Skills
Pitfalls
It is all about SPEED
Is LTE the technology of the day for our Market? Is the market mature for a full LTE coverage Voice is still the main revenue driver
Case Study of front
runners
Jack of ALL trades…… Core Network Radio Network Transport Business Support Systems VAS systems and applications Integration platforms
Funding limits options