Norbert Matuku

Fixed Mobile Convergence: A Business Transformation Driver

OUTLINE

3. FMC Drivers

2. Fixed Mobile Convergence

4. FMC Pitfalls

1. Introduction

• 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?

What is Fixed Mobile Convergence?

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

Show me the Money!!

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

Sub-Sahara Fixed-Line Revenue

Africa is covered by the people who know Africa

2015

2008

Africa Population by Age-group

Source: AFDB

… 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

Total Convergence

Converged Billing

Converged Core NetworkFixed/Mobile

Unified Service Brand

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

IMSBGCFMGCF MGW

CSCF

AGCF

BCF PDFAS

HSS

IBCF IM-MGW

IMS…..

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

Pitfalls

Rome was not built in a day….So are Networks

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

ConclusionDinosaur Tragedy!!!!

Change is the only Constant in this business…..

Thank You