TOP TEN PAIN POINTS OF OPERATING NETWORKS

AVIAT NETWORKS

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#1- OPEX IS LARGE AND KEEPS RISING•Operators,ITorganizationsandprivatebusinessesaresearchingfornewbusinessmodelsandcoststructurestoremaincompetitivewhilesurvivingon-goingbudgetcuts.Byusingvendororpartnersuppliedmanagedser-vices,operatorsandprivatebusinessescancutOPEXcosts.Operationalfunctionscanbeoutsourcedatacheaperratethanwhatpublicandprivateoperatorscansupportthemselves.

•Operatorsandprivatebusinessesarepressuredtofindnew,creativewaystocutcosts.,Byoutsourcingpor-tionsofyouroperatingbudget-fromfulloperationstospecificfunctionsorscopesofwork-OperatorscanreducetheirOpExbudget.

21%

26%

5%

5%10%

33%39%

22%

31%8%

OPEX BreakdownFixed Line Operators

Network operations

OPEX BreakdownMobile Operators

General and Admin

Marketing and Sales

Customer Care

Network operations

Source: Yankee Group, 2007 estimates. EEMEA denotes aggregate of Eastern Europe, Middle East and Africa. Source: Yankee Group, 2007 estimates. EEMEA denotes aggregate of Eastern Europe, Middle East and Africa.

General and Admin

Interconnections and Roaming

Terminals and Materials

Marketing and Sales

Customer Care

“OnaveragemobileoperatorsarespendingthreetimesmoreonOpExthanCapEx.Thesesameoperatorsarespending~26%oftheirOpExbudgetsonnetworkoperations.(fixedlineoperatorsarespending39%)“

-Yankee

•Outsourcingcontractscancreatestabilityandpredict-abilityinyourbudgetingprocess.CostsfiguresfromNOCoperatorsaretypicallyfixedbycontractandarepredictableformultipleyears,allowingyoutocontrolandconsistentlymeetyourOpExbudget.

Inahighlycompetitivemarket,TelecomCompanieshavebeenforcedtosqueezecostfromtheiroperationsbackofficesthroughprocessoptimization,enhancedsolu-tions,andformalizedprocedures.Despitetheseefforts,manytelecomcompaniesarestillunderpressuretodriveadditionalcostsavingsandarebeginningtoexplorethebenefitsofamanagedservicesarrangement,realizingthatmaintainingandsupportingnon-corefunctions,suchasNetworkOperationCenters(NOC),isnolongerthebestuseoftheirresources.

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#2- MANAGING THE NETWORK IS TAKING FOCUS AWAY FROM GROWING THE BUSINESSManybusinesseswouldratherconcentrateontheircorecompetencies,suchasdevelopingcustomerrelationsandnewserviceopportunities,insteadofoperatinganetworkthatsupportstheirbusiness

•Informanotesin“TheRiseoftheHollowOperator”that,traditionally,operatingthenetworkwasasourceofdifferentiation.Today,thenetworkislongeradifferentiatingfactor.Itismorecosteffectiveforoperatorstooutsourcethenetworkinordertoconcentrateontheircorecompetencies.

•Subscribersdon’tnecessarilyseethenetworkasthedifferentiatoreither.Subscribersarewillingtopayforthebestoverallserviceplan.Iftheyaresatisfiedwiththeirplan,theydon’tcarewhooperatesthenetwork.

•“Competitioniscomingatoperatorsfromalldirections.Operatorscannotsitandfiddlewithnetworks.Theymustfocusonattractingcustomersanddevelopingtheiroffering.”StefanJelvin,StrategicMarketingManageratEricssonGlobalServices,from“TheRiseoftheHollowOperator”.

#3- LOW CUSTOMER SATISFACTIONCustomersatisfactionandretentionisimportanttome.HowdoIprovideoutstandingcustomersupportwhileofferingthenewestapplicationsandservices?

•Outstandingcustomerservice,trouble-freenetworkoperationsanddeliveryofpromisedservicesarekeycompetitiveadvantagesforOperatorsanddrivecustomersatisfaction.ThiscanbeaccomplishedbyoutsourcingyouroperationstonetworkmanagementvendorsviacontractedSLAs.Customerswillstaysatisfiedwiththelatestapplications&servicesattheirfingertipsincombinationwithnetworkuptime.

•Alternatively,PublicandPrivateNetworkOperatorscanimprovetheirnetworkperformanceandend-to-endnetworkprocessingbyintegratingelementsoftheirnetworkintoonenetworkmanagementplatform.Thisinturndrivesfasterresolutiontonetworkingissuesinapro-activemannerandprovidesaplatformtopreventissuesfromimpactingendusers.

•PerInforma’sreporton“TelecomManagedServices:TheRiseoftheHollowOperator”,“Someclientsjustwantyoutotaketheirmessforless.Theydon’twantyoutotransformit,justoffshoreit”.Theywanttooutsourceit,andtheydrivetheirproviderstodoitforlessthantheycandoitthemselves.“Theforecastfortheworldwide

marketforManagedServiceshasaCAGR20%reaching$21.4Bin2013.” -Informa

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#4- NETWORK IS NOT FUTURE PROOF Yourtimetomarkettodelivernewservicesiscritical.Canyoudifferentiateyourselfwithvalue-addedservices?Howdoyoufocusonwinningnewbusinesswhilelearningtooperateyournewnetwork?

•Loweryourbarriertonewservicemarketswhilelimitingyourupfrontinvestmenttoimplement,operateandmaintainyournetworkthroughoutsourcingorout-tasking.

•WiththeinitialawardingofBroadbandStimulusfundingunderway,manypublicandprivatenetworkoperatorswillbepushedtomeettheaggressivetimelinesstipulatedbytheplanguidelines.Seekvendorsandpartnerswhodeliverend-to-endsolutionsthatareaugmentedwiththerightproductsandservicestohelpyoureachyourgoalsfaster.

•Somevendorsandpartnersprovideturnkeyservices,rangingfromapplicationsupporttonetworkdesign,implementationandsupport.Thesetypesofturnkeysolutionsprovideyouwiththepeaceofmindyouneedtofocusonyourkeybusinessobjectivessuchaskeepingyourcustomershappywithnewservicespoweredbyyourtechnologytransformationto3G,4G,WiMAX,LTE,etc.

#5- NETWORK UPGRADES DISRUPT CUSTOMERSManagingmultiplevendorsthroughnetworkexpansionandconvergencecanbealargemanagementproblem–especiallyifvaguelinesofresponsibilitiesexist.

•YourNOCproviderorpartnerbecomesyoursinglepointofcontactfornetworkconvergence-theyareresponsibleformanagingnetworkprotocolorinterfacechallengesacrossyournetworkforallvendors.Theyareyour“onethroattochoke,”whichrelievesyouoftheburdentomanagemultiplevendorcontractsandtheconvergenceofindependentlyoperatingnetworkelements.

•Viaintegratedserviceassurancesolutions,NetworkOperatorsmanagenetworkconvergenceandmaintainvisibilityofallnetworkelementsthroughoutanetworkexpansion.TheymanageyournetworkconvergencewhilemeetingyourcontractedSLAssoendusersarenotimpacted.

•Networkgrowthplanningandimplementationrequirescostlyinvestmentsinemployeeskill-setdevelopmentandtraining.Anetworkmanagementvendorcangrowyournetworkquicklyandefficientlybyapplyingfirsthandexperienceinscalingnetworkoperations.

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#6- LACK WORLD CLASS OPERATIONS TOOLS, PROCESSES AND PEOPLEDoIhavetherightsystemtoolsandtrainedpersonneltomanagemynetwork?Howmuchcostisinvolvedinkeepingupwiththelatestupgradesandtraining?

•AnintegratedNetworkManagementSystem(INMS)givesyouinstantvisibilityandend-to-endmanagementofyourentirenetworkinfrastructure.INMSsalsopro-activelymanagenetworkoperationalissuesthroughfundamentaltoolssuchasTroubleTicketingsystems,PerformanceManagement,WorkforceManagement,andothersystems.

•World-classNOCoperatorsusecomprehensiveIntegratedServiceAssuranceSolutionswhichprovidetheirclientswithacompetitiveedgeinCustomerServiceandnetworkuptime.TheseIntegratedServiceAssuranceSolutionsdriveETOMcompliancewhichensureshighperformanceinyournetwork.

•NOCoperatorswillalsohaveeTOMcertifiedspecialistsandothercertifiedpersonnel,thusprovidingyouwithaccesstoworld-classresourcesandprocesses.ThesearekeypersonneltoseekoutwhensearchingforaNOCproviderorManagedServiceProvider(MSP).

“Globally,$120billionperannumisspentonstaffingnetworkoperationsalone.”-Yankee

#7- THE NETWORK DOES NOT RUN EFFICIENTLY HowdoIknowifmynetworkisrunningeffectively?Aremycustomersimpactedbyhowwellorpoorlythenetworkisoperated?AmIontherightpathtoachievemynetworkingbusinessgoals?

•Accesstoreportsthatreflectcomprehensivenetworkstatisticsareacriticaladvantageforanyoperator,businessownerorprivatenetworkprovider.AnINMSsolutionprovidesreal-timeviewsofnetworkperformance,anddailyreportsonnetworkhealthdowntime,andMeanTimeToRepair(MTTR).Thereportsenableanoperatortomanageanetworkbothreactivelyandproactivelytominimizedowntime,maximizeefficiency,andplanforcapacitychange-allofwhichpreventproblemsforendusers.

•Headsup:manyorganizationstodayimplementINMSsolutions,butarenotreapingthemaximumbenefitoftheirinvestmentbecausethesolutionwasimplementedwithoutfullyassessingandre-engineeringexistingprocesses.Tomaximizeyourcostsavings,investthetimeandmoneyintoanend-to-endprocessassessmentexercisewherebythewholeprocessisrestructuredforenhancedefficiency.

•Examplesofsituationsrequiringprocessimprovementinorganizationsinclude:1)operationalprocessesareeitherscattered,non-existentorhavenorelevancetothepeopledoingthework,2)knowledgeofchangestothenetworkrestsinthemindsofpeopleratherthanwelldocumentedchangerecords,whichresultsinyourworkenvironmentbeing“peopledependent”insteadof“processdependent”,3)concernaboutyourorganization’sreadinesstopassTL9000auditsorcertifications.

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#8- THE NETWORK IS NOT SECUREHowdoIdetect,counterandpreventhackers?Aremycustomersprotected?Whatarethesedisruptionscostingme?

•Withworld-classsurveillancetoolsintegratedintotheirNMS/INMSinfrastructure,3rdpartyNOCoperatorscanprovidepropertysurveillanceandactonnetworkandphysicalintrusionsinrealtime.Thesesolutionscanincludedispatchingpoliceandresponsible3rdpartiestotakeimmediateaction.

•NOCOperatorstypicallyhaveaccesstothelatestvirusprotectionupdatesandapplicationstoensurethatyournetworkisprotectedfromunauthorizedaccess.Withoutthesetoolsinplace,networkownersareatriskofprovidingarapidresponsetoattacksandintrusions,whichcanslowdownorevenshutdownyournetwork.

#9- NO DISASTER/RECOVERY PLANIsmybusinesssafefromadisaster?Aremycustomersprotected,andhowfastcanmybusinessrecover?

•ManyOperatorsdonothaveareliableback-upsolutionorDisasterRecovery(DR)plan.Furthermore,mostDRplansarecomplexanddrivetheneedforredundantnetworkingoperationsthatarecostlytoimplement.However,ifyoudonotimplementaDRplansupportedbyareliableback-upsolution,itcanbecomeaverycostlydecisionasyoucanpotentiallylosesignificantmarketshareandsubscriberbase.

•Third-partyNOCoperatorcandeliverasolidDRPlanforyournetwork.Backingupyournetworkinfrastructureisthesmartest,singleactionyoucantaketoguaranteenetworkuptimevianetworkredundancy.YourNOCoperatorcancustomizeaDRplansothatyournetworkisprotectedandcomesonlinefasterintheeventofanaturaldisasterorcriticalnetworkingevent.

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#10- NO REGULATORY AND COMPLIANCE SUPPORT?Withgrowingindustryandfederalregulations,doIneedtocomplywithallofthem?Domycustomersneedthem?HowdoIbecomecompliant?

•World-classNOCOperatorsaretypicallyeducatedandcomplianttoindustryregulationsandstandards.ETOMcertifiedprofessionalsprovidethehighestlevelsofexpertiseandprofessionalismavailableintoday’smarkettonavigateyouthroughtheon-goinggrowthofregulationsandhowyouneedtomodifyyournetworktobecompliant.

•NOCandCallCenterOperatorshaveexpertsontheirstaffsthatunderstandhowregulationscanaffectnetworkoperationstoincludeCALEA,e911regulationsandmore.Byoutsourcingyournetworkoperationstoexperts,youremoveyourselffromtheburdenofhavingtoobtaintheregulatoryknowledgerequiredtokeepyournetworkandprocessescompliant.

“Therateofgrowthbysegmentsofthemanagedservicesmarketrangesfromsevenpercentto13percentovertheforecastperiod.Incontrast,growthoftelecombusinessserviceswillgrowonlythreepercentoverthesametimeframe.”-Insights Feb 2009

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