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Network Transformation: What is the right agenda?

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Defining the network transformation modelDefining the transformation model for an operator remains a very complex exercise. Operators need first to define what would be the most cost effective, flexible and scalable network solution to serve their strategy. They also need to define the exact milestones for each part of the network as well as the correlation with their specific services portfolio. The transformation strategy needs to integrate in a clear and actionable way the management of interdependencies between Network and IT, between new infrastructure and critical

legacy end-dates. The objective is to ensure that costs and risks remain under control.

Network transformation is not only about replacing a network, a technology or a series of equipment. It is also about new competences planning, organisational changes and processes rationalisation. In addition, defining the transformation model for an operator implies nowadays to see how, in the most effective way, can be leveraged the existing infrastructure of third parties or competitors (e.g. network sharing, wholesale…), and conversely, how to take advantage of its own excess capacity by making it available for competition.

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With data traffic growing by close to 50% per year in Western Europe according to Gartner and CAPEX for wireless infrastructure reaching € 16 Bn in 2017, telecom operators face major stakes to transform their networks. This is however highly complex, requiring both strategic and operational vision and… the right agenda!

Radio access

Additional accesses for indoor traffic (femtocells,

wifi)

Higher spectral

efficiency

Spectrum refarming

New spectrum

Migration to IP

Packet core Programs

(IP, R4, EPC, CDN)

Multi VAS

IMS & Convergent

Service Control

Backhaul Core VAS

Mobile Infrastructure Market: Data Traffic Composition in Europe, 2010

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19%

28%25%

26%

Other File Sharing

Data

Others Online Video

P2P File Sharing

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Mobile Network Transformation per Sub-System

Drivers for network transformationIn 2009, mobile data overtook voice traffic. In 2011, it doubled voice traffic. Growth pace will remain high for the coming years, due primarily to the abundance of bundle and “all you can eat” offers. Their success, both in terms of acquisition of new customers and service consumption, generated increased demand for network resources. Combined with the explosion of devices (whether Smartphones, Tablets, PC or any connected device) and the proliferation of internet applications such as web browsing, social networking, software download/updates, these factors constantly challenge the capacity of mobile infrastructures.

It is an absolute necessity for operators to transform their networks. It requires to manage increasingly complex and heterogeneous technologies, with a double objective: to deliver to end users an experience that is richer, in the functionalities and contents proposed, and simpler.

Transformation agendaMobile data and video services take-up, always best connected solutions, multi-services and QoS management along with cost management are among the hottest topics on the agenda of Western Europe mobile operators. They have all launched, at various paces, major Radio Access Networks modernisation and renewal programmes along with their preparation for LTE /EPC and IP everywhere.

However network transformation shall not be limited to an infrastructure alignment to cope with traffic demand. It also has to involve the smartest way to reduce the cost per megabit. Even though data revenues are increasing and represent now about 30% of mobile operators’ revenues, they still do not cover the infrastructure cost associated with the mobility experience expected by most customers in mature markets. As data traffic is usually generated by a limited number of users, operators integrated in their network

transformation strategies some measures such as “fair-use” policies and other traffic management schemes setting data volume caps in order to have a better control on “crazy” data forecasts. This will not be enough.

The timeline associated with network transformation changes widely depending on countries, regulation, operator specificities, subscribers’ demands and services evolution. Therefore, the key success factor is, for each operator, a clear transformation agenda, with the associated timeline vis-à-vis of business needs (e.g. services portfolio, market strategic positioning, cost of megabit, total cost of ownership…) and a good understanding of the operational implications at all organisation levels.

An example of agenda dilemma for a mobile operator interested in reducing its cost per megabit would be when, where and how to move to LTE. If the operator has not been granted by the regulatory agency a 20 MHz but a 10 MHz LTE bandwidth, upgrading its current 3G Radio access to HSPA+ (with MIMO and Dual carrier) will offer similar performance to LTE and at a much affordable cost.

The same dilemma applies when the operator needs to choose between the IP Overlay and All IP migration transformation model. The IP Overlay approach is smoother, since it consists in adding “IP glue” to the existing TDM infrastructure. However, All IP migration is more straightforward, implying a faster replacement of the legacy infrastructure. Network transformation is also about identifying the best way to ensure return on assets on the legacy infrastructure before even defining the road ahead.

The timeline associated with network transformation changes widely depending on regulation and subscribers’ demands. Network transformation is also about new competences planning, organisational changes and processes rationalisation.

Network Transformation by AltranAltran, through its Infrastructure and Networks Practice, offers a comprehensive and phased approach to address the challenges of network transformation. Our teams have implemented complex migration strategies multiple times and have developed robust and proven transformation methodologies. We work hand in hand with our customers before, during and after the transformation in order to deliver:

•Clearervisionofthetransformationagendaandthebusinessimplications

•Fasterdeliveryofnetworktransformation,withthesupportofadedicatedandscalableexpertsteam

•FasterTime-to-Marketenablingstrongercompetitiveadvantage

•Managednetworktransformation,toallowourclientstofocusoncustomerexperience,marketingstrategy and sales effort

Altran Network Transformation offer revolves around 4 pillars:

•TechnologyRoadmapAdvisory

•TechnologyValidationandTrialManagement

•NetworkImplementationPMO

•NetworkServiceManagement

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Altran Network Transformation Capabilities

Technology Roadmap Advisory

•Technologyandbusiness cases implication analysis

•Technologyadoption,readiness & risk assessment

•Productsandservicesroadmap

•Spectrumanalysis

•RFIandRFPdevelopment and vendor selection

•Transformationscenarios and impact analysis

•Legacyoutscenariosanalysis

Technology Validation and Trial Management

•Testbedandfieldtechnology validation

•Testbed,trialnetwork and cluster management

•Vendorroadmapupdate follow-up

•Softwareandhardwarerelease validation

•echnologyperformancebenchmark

•Technologygeneralisation support

Network Implementation PMO

•Networkimplementation processes design

•Networkplanningand roll out management

•Transformationprogramme governance

•Projectstakeholdermanagement and coordination (subcontractors, vendors, customer teams, other 3rd parties…)

•TransformationERP management (including billing chain, stock and spare part management)

•Riskmanagement

Network Service Management

•Designandimplementation of the network service management function

•Designandimplementation of the operating processes and organisation

•Definitionofthenewsolution end-to-end service KPI and KQI

•Toolsandsystemssupport requirements analysis

•Serviceperformancemanagement