© 2017 TM Forum | 1

Network Operation 2.0:

Joining the Dots for Better Decision Making

Aitor Ibarguen Ramon MartinezO&M Director Director of Services Euskaltel Group ZTE

© 2017 TM Forum | 2

The leading fiber and convergence operator in complementary regions

Euskaltel Group Briefing

Galicia Basque

Country+in footprint 1

1,891

3.5x

29%

65.8%

58.4

77.2%

15.7%

Residential RGUs ('000)s

RGUs / subscriber

Fixed penetration(1)

Market position

3P/4P Penetration

ARPU (€/month)

Mobile penetration

over fixed customer(2)

Churn

Note: 1H 2015 figures.

(1) Measured as residential fixed subscribers over homes passed.

(2) Measured as residential fixed subscriber with mobile (excluding mobile only) over total fixed subscribers.

Complementary fit with no market overlap and benefiting from increased size and scale

Addressable market

(population in millions) 5.0

RGUs (m): 1.89

Revenue (€m): c.572.9

Adj. EBITDA (€m): c.280.6

Operating cash flow (€m): c.184.7

Key consolidated metrics (2015)

© 2017 TM Forum | 3

Service proposition

Euskaltel Group Briefing

▪ The speed leader with the only ultra-

fast broadband offering across the

entire region (DOCSIS 3.0 network)

▪ Superior fiber coverage in the Basque

Country and Galicia (1.7m homes

passed)

▪ Wide offering of commercial speeds,

ranging from 30Mbps to 350Mbps

▪ Competitive prices offering best value

for money and superior service to

competitors

▪ High-quality and comprehensive content

offering covering different customer groups’

needs with possibility of adding premium

channels

▪ Enhanced offering providing a superior and

differentiated user experience (PVR, VoD,

TV Everywhere)

▪ Increased penetration of superior quality

services (HD, catch-up TV, VOD, network

PVR, start over, time shift...)

▪ Anticipating the future: Euskaltel will launch

the first hybrid 4K/UHD set top box in

Spain

▪ Internet in the STB: Smart TV connection

▪ Full-service, leading MVNO

▪ Competitive and innovative tariffs to

address real customer needs

▪ Largest WiFi network in the Basque

Country and Galicia with more than

240k hotspots allowing for data for

clients

Unrivalled coverage with the

fastest broadband offering

The most complete and innovative

TV proposition

Highly attractive and competitive

mobility proposition

2H2016 RGUs: 395k 2H2016 RGUs: 270k2H2016 RGUs: 763k (77.2% penetration over fixed customers)

Convergent offer with a leading value proposition in Basque Country and Galicia

© 2017 TM Forum | 4

Euskaltel & ZTE Strategic Alliance (Nov. ‘14)

Euskaltel Group Briefing

• ZTE technology will help Euskaltel to maintain a leader position in the SpanishMarket in the next future.

• A new ZTE Service Center in the Basque Country for Southern Europe.

• 10 year agreement for Managed Services, including:

Customerservicesprovisioning

Engineering & construction

Network Operation

• 24x7 Help Desk & network monitoring• 24x7 Technical Support (Back Office)• Configuration management• Fault management• Performance management• 24x7 Field maintenance• Spare parts management• …in a multivendor scenario.

• Feasibility analysis• HFC, FTTH &, LTE access networks

low level design• Netwok deployments (construction)• Internal plant installations• GIS information update• ad-hoc customer projects• …

• Voice fixed lines• Mobile services• Broadband Internet• Television• other VAS• …For residential, business and Big account customers.

Television Broadband Fixed Phone Mobile Phone

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Industry trends and challenges

Service Boundary of Legacy CSP NOC operations

Digital economySmart device CSP wireless & wireline services

AutomationCloudificationCustomer Centricity

NodeBBSC/RNC

BTS eNodeB

Access Transport Core/IMS

SGSN GGSN

MME/S-GW

IP Bearer

Network

Gn

S1-MME

S1-U

Gb/Iu-PS

Gi

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Key focus➢ICT Integration & operation

➢Data mining

➢API Services

➢Machining learning & AI

Key focus➢Services Quality

Assurance

➢Experience Management

➢Value Operation

➢Intelligent Operation

Key focus➢Performance

management

➢Operation efficiency

Key focus➢Maintenance support

➢Network quality

Build

Operate Transfer

Multi vendorNetwork Operations

MBB Service & Customer Centric Operations

Digital Operations

Network operation evolutions

Network resource controlCost reduction, quality & efficiency enhancement

Value creation, CEM& MBB service quality

Zero touch evolutions

MS 1.0 MS 2.0 MS3.0

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Key Factors

From MS1.0 to MS2.0

▪ Strategical -> deep inside organization

▪Organization aspects:

Specific resources + $$

Training: dedicated/ non dedicated

Change management

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Key Factors

From MS1.0 to MS2.0

▪ Project:

Prioritize use cases

▪ Based on painfulness, difficulty, improvement

▪ Results as a roadmap

Prioritize technology

▪ Service

▪ Canonical vs convenient

Use case

#1Use case

#2

Use case

#3

Use case

#4

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Key Factors

From MS1.0 to MS2.0

▪ Technology:

Massive data gathering

Massive data storage & processing (Big Data…)

Quality definition: Fixed Broadband (HFC) & Mobile Broadband

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Customer Experience Oriented Evaluation – BB-HFC

Availability (no service)

Availability (degradation)

Throughput

Wifi performance

Customer Experience Oriented

Evaluation Model

Throughput

Availability

Wifi

Problem Localization

Outage

Noise

Congestion

Wifi interference

Wifi coverage

RCA

Intelligent Problem Localization Algorithm

Evaluate network quality from

customer perspective

Intelligent correlative analysis for

automatic problem localization

Big Data Platform

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Customer Experience Oriented Evaluation - MBB

Accessibility

CDR

Handover

Redirection

Customer Experience Oriented

Evaluation Model

No call drop

Fast access

No latency

Problem Cell Localization

Coverage

Interference

PCI

Configure

Others

RCA

Intelligent Problem Localization Algorithm

Evaluate network quality from

customer perspective

Intelligent correlative analysis for

automatic problem localization

Big Data Platform

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User centric quality network assurance – BB-HFC

Intelligent RCA &

suggestions

W/O integrations

Optimization

Areas

UserGranularity Node CMTS

DATA

WAREHOUSE

Automatic

Resolution

Verification

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User centric quality network assurance - MBB

Intelligent RCA &

suggestions

W/O integrations

Optimization

Areas

Aggregation

Algorithm

UserGranularity Grid(100m x100m)

Area

MR/CDT

Automatic

Resolution

Verification

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Centralized optimization analysis

City 1 City N

Analysis

Opt.

Dept

Opti. Opti.

AnalysisCity 1 City N

Network

Dept

Opti. Opti.

Analysis

• Flat organization improve strategy execution

• Top – down communication

• Optimized use of expert resources

• Proactive performance management

40% Optimization

Resource

Reduced

Benefits

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Tomorrow Never Waits

Easy Speedy Valued

Easy to Evaluate

Easy to Optimize

Easy to Maintain

Agile Operation

Fast Response

Less Intervention

Focus on High-value Areas

Focus on High-value Users

Focus on High-value Services

Zero Touch Evolution

© 2017 TM Forum | 16

Tomorrow Never Waits

Thanks

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