A Key to Survive:Service-oriented Operations and Management

for Accelerating Business Transformation

Tae Il Park

Senior Vice President

Head of KT Network Management Business Unit

October 2008

- 2 -

Trends in Telco Business Transformation

Challenges for Operation Transformation

Service-oriented Operations & Management

Summary

I

II

III

IV

- 3 -

• Transformations are already Prevailing

• Telco Responses to IP Convergence

• Telco2.0 Transformation

• KT Telco2.0 Strategy: New Role & Business Model

- 4 -

Transformations are already Prevailing…

Convergence

Intensive Competition

Falling RevenueOpex, Capex, and ROI

Transform from network service provider to multimedia content providerto Rekindle Past Glory

- 5 -

Telco Responses to IP Convergence

Operator responses to IP Convergence: Strategic Implication of Convergence

1 2 3 4 5 6 7 8 9 10

92%

75%72% 70%

64%61%

57%

50%

47% 46%

Relative ImportanceMost

Least

(source: IMS insider surveys & Interviews: STL analysis)

1. Strategically re-think the role of operator in a converged world

2. Create a new common standard for future service creation

3. Re-structure the service prioritization process

4. Set up incubation teams to develop new IP-based services

- 6 -

Telco2.0 Transformation

Where should we focus our strategic effort to ensure growth?

101000101110010010010110001101000010111110101001001010101000101010111101010101010001010100010101110111101000101010100101110010001000101101100101011100111010000001011001010100

Voice, video,

web, messages

“Logistics solutions providers for valuable bits and bytes”

Answer: Focus on ‘core telco’ competences… …and exploit key assets (‘User Data’ is the most important)

My

Personal

Data

My

Relationships

My

Devices

My

Identifiers

My

Context My

Stuff

My

Interactions

Core Competence&

Distinctive Assets

LogisticsSolutionsProviders

2-sidedBusiness Model

NotThumb Pipes

UtilizeWhole enterpriseInfrastructures

Data delivery withThe right place,Time and way

Telco2.0 is about sustainable growth strategies for network operators facing new forms of competition

- 7 -

KT Telco2.0 Strategy : New Role & Business Model

KT Telco2.0 is defined as new role and business model for telco in the IP world to create customer value

To-be PartnersTelco1.0 Telco2.0

NetworkServiceProvider

Communication/Broadband Biz

Cultural complex biz

Contents biz

Computing Power biz

Solution biz

Knowledge consulting biz

MultimediaService

Aggregator

TotalSolutionProvider

New Growth Engine

As is

Mid-term

- 8 -

• Operational Challenges from Converged Environments

• KT Network2.0 for Customer Value Innovation

• KT NOM2.0 for Agile Operations

• KT’s Strategy for Business infrastructure Enforcement

- 9 -

• IMS and SDP Platforms

• Supplementary Access

• Open user devices

• QPS as a reality

• All-IP, FMC

Operational Challenges from Converged Environments

Technology Drivers

• Ambiguous Cash Cow

• Higher Competition

• Strategic Partnership and M&A

• New Business Models

• Service Explosion

Market Changes

• Siloed Operations and Management

• Manual Task and Human errors

• Aging and Decrement of Operation Staffs

• Accelerating Unmanned Operation

Operational Situation

Service Providers

• Increased network complexity

• Increased service complexity• Complex service visibility

• Increase efficiency• Maximize ROI• Customer value creation• Agile business Infra.• Business Federation Model

• Minimize Opex• Increase operational

efficiency• Integration BSS with OSS• Real-time Billing

Operational Challenges from technology, market, and operational trends should be solved to be an agile service provider

- 10 -

KT Network2.0 for Customer Value Innovation

New Window(MegaTV & WiBRO)

New Comm.(SoIP)

New BM(Broadcasting,

E-Commerce,

…)

Network Infrastructure transformation from technology-driven to service-driven infrastructure for customer value innovation

KT Network2.0: Technology Driven Service DrivenKT Network2.0: Technology Driven Service Driven

Network InfrastructureEnforcement

(All-IP, All-Optic, and FTTH)

Network InfrastructureEnforcement

(All-IP, All-Optic, and FTTH)

Service InfrastructureEnforcement(All-Platform)

Service InfrastructureEnforcement(All-Platform)

Service NetworkIntegration

(Wired + Wireless+ Broadcasting)

Service NetworkIntegration

(Wired + Wireless+ Broadcasting)

- 11 -

NOM2.0: AgilityNOM2.0: Agility

Intelligent / Unmanned

Innovation of network operations and management in line with the new Telco's business model and changing operations environments

Innovation of network operations and management in line with the new Telco's business model and changing operations environments

• Remote and unmanned operation

• Totally integrated management infra

• Monitoring < Control

• Operations with knowledge base

• Fully automated operations

• Rapid revision of operation process management (BPM)

• Quality of experience (QoE) centric

• Remote device/handset revision

• Self customizable operation interface

• Beyond standards

Con

verg

edIn

fras

truc

ture

NOM1.0: Efficiency NOM1.0: Efficiency

Dis

cret

e In

fra

Integrated / Clustered

Prioritize operations based on business importancePrioritize operations based on business importance

• Onsite and manned operation

• Siloed or partially integrated management infra

• Monitoring > Control

• Depend on operator’s experiences

• Manual operations

• Network performance and QoS centric

• Comply with standards

NOM0.1: StabilityNOM0.1: Stability

Res

ourc

es

Discrete / Partitioned

Get Network under ControlGet Network under Control

• Plan

• Provision

• Monitor

• Operation with EMSs

KT NOM2.0 for Agile Operations

Operation Transformation from manual and siloed to automatic and agile operation weapons

- 12 -

KT’s Strategy for Business Infrastructure Enforcement

• Based on the strategic direction, each business is deploying in parallel (PSTN transformation, WiBro, IPTV, SoIP, FTTH, etc.)

Premium Network (All-IP)

PSTN

Best-effortNetwork

xDSL, FTTH,LAN, WiBro, HSDPA

W-CDMA

Control/DHCP/Web Systems

SER

TGW

AGW

ResidentialGateway

Best-effortServices

PremiumServices

IP-TV,Video Conferencing,Video Learning, Robot,Etc

Access Networks

QoS Manager

New authentication platform

Premium network

FTTH

Home network with RGW

QoS control with QoS manager• AGW: Access Gateway• TGW: Trunk Gateway• SER: Service Edge Router

2005 2006 2007 2008

4G/NGN4G/NGN

SoIPSoIP: Rich IP comm.

IPTVIPTV: Retransmission of Broadcasting

WiBroWiBro (Wireless Broadband): High B/W real-time mobile data

PrePre--NGNNGN (PSTN transmission into IP): 600 Local and 100 Tandem/Toll switches

Reduce investment by replacing obsolete PSTN systems

120,000 subscribers in end 2007

800,000 subscribers in end 04.2008

- 13 -

• Operational Infrastructure Innovation

• Changed Management Scope of OSS/BSS

• Service Session Management

• Service Problem Management

• Service Quality Management

• Zero touch Device Management

• Integrated Channel Management

• Service-aware Engineering

• KT Strategy for Integration of OSS/BSS

• SOA Framework for Open OSS/BSS

- 14 -

Operational Infrastructure Innovation

KT is making NGOSS-based Operational Infrastructure Innovation to accelerate business transformation

New Generation OSS ToolkitNew Generation OSS Toolkit

BusinessProcess

Framework

InformationFramework

ApplicationFramework

SystemsIntegrationFramework

MarketOpportunities

BusinessGoals

BusinessProcess

TechnologyChoices

Today, around 50% of all OSS/BSS Spending is not Productive

Around 12% CapEx or around 4% of revenues spent on OSS/BSS

But up to 50% spent on integrating dissimilar systems

Business transformation requires two options

KT choose an innovative approach in accordance with TMForum NGOSS

• Infrastructure innovation• Integrating existing dissimilar

Operational Infrastructure Transformation with KT operational culture and NGOSS standard

- 15 -

Operational Infrastructure Innovation - Business Process Framework

Process Innovation (PI) defines all the major business processes for customer value creation, business innovation, and enterprise innovation within KT environments

Starting point for defining new system required

Single common language for describing the operations

Clear definition of work areas of revenue and cost

assignment

Big picture of how the business works

Development & IntegrationOperationsFinanceBusiness

People, Rule, Organization Change & Innovation with Excellence, Speed, and Standard System

Customer

S.I.P Operations

Supplier/Partner

Enterprise management

Stakeholders Employees Other stakeholders

Customer Value DeliveryCustomer Value Delivery

Customer Value CreationCustomer Value Creation

Business Capability DevelopmentBusiness Capability Development

Partner ManagementPartner Management

Enterprise Management & InnovationEnterprise Management & Innovation

1

2

3

4

5Task

Process

Process Chain

Mega

Process

Value

Domain

Step

(7)

(40)

(140)

(515)

(2,846)

Sales Marketing CRM Fulfillment

Assurance Billing PRM OSR

Key mega processes for KT Process innovation (PI)

- 16 -

Operational Infrastructure Innovation - Information Framework

Enterprise data architecture (DA) provides a common framework for organizing all the information within KT environments

Common integration framework

Reduce system integration time and improved

automation

Automation enables lower OpEX spend

Short time to market for innovative services

Development & IntegrationOperationsFinanceBusiness

KT Next Generation IT Data Classification Framework

BusinessProcess

Alignment

BusinessProcess

Alignment

LegacyData

Model

LegacyData

ModelBenchmarkingBenchmarking

KT StandardData Model

KT StandardData Model

Product

Market / Sales

Customer

Service

Resource

Supplier / Partner

Enterprise Common System Entities

Architecture

Mega Processes TMForum SID Model

Other industries Business Activity Classification

Entity Classification

Data Classification

MARKETINGSALE

CRMFULFILLMENT

ASSURANCEBILLING

PRMOSR

Channel

Customer

Product

Service

Resource

Partner

Enterprise

Common

Market

Iden

tific

atio

nD

escr

iptio

nC

lass

ifica

tion

Rel

atio

n

Eve

ntM

anag

emen

t

- 17 -

Changed Management Scope of OSS/BSS

The management domains should be extended to whole business infrastructure covering network layer, control layer, application layer, and devices

Ver

tical

End

-to-

End

Infr

a M

anag

emen

t

Access Network LayerAccess Network Layer

Public NetworkPublic Network Private NetworkPrivate Network

Mobile Access Fixed Access

GSM

IMS

UMTSSatellite

WiFiHSDPA

GPRSEDGE

WiBro

PSTNCable

FTTHxDSL

Mobile Access Fixed Access

WiFi

DECT

LAN

PABX

Connectivity LayerConnectivity Layer

Control LayerControl Layer

Service Delivery PlatformService Delivery Platform

Enablers(includeContentDelivery)

Enablers(includeContentDelivery)

Service CreationService Creation

Service ExecutionEnvironments

Service ExecutionEnvironments

Abstraction LayerAbstraction Layer

ExposureLayer

ExposureLayer

Portals Google Gaming

www Internet

Skype 3rd party ASP blogs

RoutingRouting AdmissionControl

AdmissionControl AuthenticationAuthentication Traffic

EngineeringTraffic

EngineeringSessionControlSessionControl RoutingRouting

Cu

sto

mer

s &

Dev

ices

3rd

Par

ty P

artn

ers

Horizontal End-to-End Service Management

- 18 -

Service Session Management – The Network doesn’t matter…

• Network diversity and network innovation had led to network abstraction based on IP as common denominator

All-IP (BcN)Mobility-enabled & QoS-guaranteed

GSMEDGE

UMTSCDMA

WiBroHSDPA

POTS/ISDN

WirelinexDSL FTTH

Others

Network Diversityis not a problemanymore due to All-IP evolution

CommonApplications& Services

• Network focused product

• Circuit-based long lived services

• Connectivity services

• Simple & individual service model

• Network focused product

• Circuit-based long lived services

• Connectivity services

• Simple & individual service model

• Service focused product

• Session-based short lived services

• Multimedia converged service

• Complex & convergent service model

• Service focused product

• Session-based short lived services

• Multimedia converged service

• Complex & convergent service model

Yesterday Today & Tomorrow

- 19 -

Service Session Management – Real-time Monitoring

DeviceNetwork

Identity

QoS

Preferences

Service

LocationPresence

The core of seamless service lies in real-time information management of user’s current service session and maintenance of user’s presence in heterogeneous public and private networks for delivery of converged services

Applications

OSS/BSS

Service Delivery Platform

Control (IMS)

Access

Transport

Clients and Devices

- 20 -

Service Session Management - IPTV

Service convergence introduces the complexity of service session management and its personalization leads large volumes of customer’s session information management

Head-End Center

RPRP

PEPE

PEPE

PEPE

PEPE

IPIP--MediaMediaSwitchSwitch

A3808A3808

L3 L3 SwitchSwitch L2 L2

SwitchSwitch

SERSER

A3808A3808

PEPE PEPE

PEPE

VOD ServerVOD Server

PP,CP,DP

RPRP Server Server --FarmFarm

Application

Layer

Control

Layer

Transport

Layer

Customer

Layer

HD Monitoring

VOD NMS

KSMS

HDS

PVS

CAS

MOC

VOD

DBS

IDMS

CMS

STB Web

U-CEMS

Access NMS

Premium NMS

Core NMS

Meg

aTV

NM

S

DAIMS

MegaT

V-S

CS

DRM

ProbeProbe• Service flows• Problem resolution• Quality management• Real-time billing• Customer usage pattern

management

- 21 -

Total Fault Management Framework

Service Problem Management

IMS &SDP

IMS &SDP

Access Networks(Wired & Wireless)Access Networks

(Wired & Wireless)

Applications&

Contents

Applications&

Contents

BackboneNetwork

BackboneNetwork

3rd PartySP

Applications& Contents

Management

Applications& Contents

Management

3rd PartyFederation

Management

3rd PartyFederation

Management

ServiceManagement

ServiceManagement

TT & WorkforceTechnician

Management

TT & WorkforceTechnician

Management

End-userDevice

End-userDevice

OperationStaffs

OperationStaffs

NetworkManagement

NetworkManagement

DeviceManagement

DeviceManagement

EventFiltering,

Suppress &Correlation

EventFiltering,

Suppress &Correlation

Root Cause Analysis&

VOCMgmt

Root Cause Analysis&

VOCMgmt

CustomerImpact

Analysis

CustomerImpact

Analysis

Empowerexperts

tocapture

intelligence& knowledge

Automaterecovery with

policy & knowledge-basedfault management

A fully featured network fault and service problem management framework is needed for reliable and effective service-oriented management

- 22 -

Service Problem Management – Fully Featured Problem Handling

A fully featured Network/Service Problem Management System and Total Fault Management System, which monitors and manages whole business infrastructure, will be needed to provide converged services.

VOC DB

• Root Cause Analysis

• Real-time Cross Domain Problem Monitoring and Handling

• Service affected facility & customer analysis with RCA

• Damage cost calculation incurred by Root Cause

• Trouble Ticket Issuance with RCA and VOC

• Related statistical report

FacilityFacility

LogicalResource

LogicalResource

LogicalResource

LogicalResource

VoIP SessionVoIP Session

IPTV SessionIPTV Session

Internet SessionInternet Session

VoIP SessionVoIP Session

IPTV SessionIPTV Session

Internet SessionInternet Session

Customer1

Customer5

Customer2

Customer3

Customer4

Customer6

PersonalizedCustomers

Alarm AnalysisAlarm Analysis

RCARCA

Event NormalizationEvent Normalization

AffectionAnalysis

AffectionAnalysis

Fault/VOC Real-time StatusFault/VOC Real-time Status

Trouble TicketTrouble TicketAffect AnalysisAffect Analysis

Event Adaptor

Adaptor Adaptor Adaptor Adaptor Adaptor Adaptor Adaptor

Event Correlation & FilteringEvent Correlation & Filtering

Analyzed Alarms

Facility/CustomerVOC DB

RulesRulesEngine

Root Cause AlarmRoot Cause Alarm

VoCVoC

Fault ScreenFault Screen

Facility/CustomerFacility/Customer

VOC VOC

ConstructionInfo

ConstructionInfo

EventCollection

IntegratedFacilityServiceCustomerDB

Web Application Server

Fault Detail

EndUser

Devices

Networks(Access

& Backbone)

IMS&

SDP

Application&

Contents

Circuit&

Sessions

- 23 -

Service Quality Management

Service providers must now put customers at the heart of their business by providing higher quality service than their expectation

What happens when QoE is poor?

About 29% of customers will not complain before defecting – they will simply leave once they become unsatisfied

QoE ≈ Customer Loyalty, Retention and Revenue

1-10-100 Rule for quality management

100100

1010

11Catching and fixing problems in your working area

Catching and fixing problems internally, but after they have left the working area

Repairing the damage of problems caught by external customers

1-10-100 rule for Quality Management

Total cost of Quality

PreventionPrevention

InspectionInspection

FailureFailure

PreventionPrevention

InspectionInspection

FailureFailure

Without Quality Improvement Process

With Quality Improvement Process

Total Cost of Quality

- 24 -

Service Quality Management - IPTV

KT Integrated Quality Management System (ISQM) for end-to-end service quality management

QualityAnalysis &

Measurement

QualityAnalysis &

Measurement

Fault& Performance

Fault& Performance

TVQMS(QSTB, HIKE, QM)

KSMS

Premium-NMS Core-NMS Access-NMS

IPAS

IP-CEMS

MegaTV-SCS / VoIP-NMS / WiBro-NMS

ServiceQuality

Management

ServiceQuality

ManagementKQI

KPI KPI KPIKPI

KQI

KPIKPI

SER

Ntopia Switch

UTPSiSi

FES

SiSi copper

L3 SwitchPE Router

STB

VDSL/IP-ADSL DSLAM

STBSiSi

Media Switch

VoD Server(H.264)

OLT

L3 switch

FTTHCP

DP

PP

Broadcast ServerEPG Server

CAS/Server

HDS Authentication Server

Premium

Best Effort

Media Center Backbone Network ResidentialAccess networks

ProbesQM

KQI

KPIKPI

Media QualityTransaction QualityTransmission Quality

Quality Monitoring, Measurement, and Analysis

QSTB

Branch Offices (107 Sites)

Network Operation

Centers (25 sites)

Quality Policy

QoE Indicator

- 25 -

Remote Device Management

Shift from network element management focus to service management, data management and user preference management

Network Intelligence Migrationto devices

Device Proliferation & Convergence

Fixed

Mobile+

Construct all the values for customer from device!!

Management Authorities

Provide valuable information

Customers (Users)

Direction of DM Innovation

• Integrated DM for any device (Fixed, Mobile, Converged device)

• Expand zero-touch deployment from fixed service to dynamic service

• Drive enhancements to customer experience management (Quality, Service failure, user preference)

• Software lifecycle management (from delivery to withdrawal)

• Device lifecycle management

- 26 -

Remote Device Management – Automatic Control

With zero-touch remote device management framework, we can control network-enabled devices anywhere in the world and integrate them into enterprise infrastructure.

u-CEMS

u-CEMS (Customer Equipment Management System)

STBSoIP IP-GW HG

Protocol Conversion

StatusMonitoring

DeviceAsset

Management

FW/SW Download

MemoryDB

SNMP OMA-DM

JobScheduling

RemoteControl

ProvisioningService Quality

management

Policy Management

Resource Management

Fault Monitoring Remote Control

StatisticsDiagnosis

Firmware & SoftwareManagement DB

Web ServerWeb Server

ApplicationApplication DatabaseDatabase

Protocol MediationProtocol Mediation

DeviceDevice

AdminMonitoring Configuration StatisticsAlarm

TR-069

• Software Installation• Device Configuration• Software/Firmware

Update

• Device backup• Alarm• Hardware & Software

Inventory

…..

NOC & Help Desk

- 27 -

Service-aware Engineering

• Reliable operation of the enterprise network is a necessity for business survival • Business transformation introduces the service-aware engineering

• Network Assessment and Planning

• Network Management and Performance Monitoring

• Network Capacity, Dataflow and Utilization Planning

• Network Design and Implementation service which incorporate architecture, network design, reengineering, and implementation.

• Network administration of the Network Operating Center/Network Service Center, network/asset management

Traditional Network Engineering

QoS-guaranteed Convergent Services

• Service flow anticipation & planning

• Real-time service session distribution model management

• Network resource reengineering based on the convergent service trends with service engineering simulator

• Service Life Cycle Management

- 28 -

Service-aware Engineering - Process

Virtual Network Environment

Traffic Collection and Importing(Traffic Classification by Service Types)

Traffic Analysis and Modeling(Convergent Service)

Analysis and Optimization

Offer comforts to customers with service-aware engineering

NetworkNetwork ServiceService CustomerCustomer

- 29 -

NOC / Maintenance & OperationsNOC / Maintenance & Operations

Call Center / Customer CareCall Center / Customer Care

Enterprise InfrastructuresEnterprise Infrastructures

BusinessPartner

BusinessPartner

CustomerDomain

CustomerDomain Channel 1Channel 1

Channel 2Channel 2

Channel 1Channel 1

Channel 2Channel 2

Integrated Channel Management with Single View on Customers

Customer Care without enterprise management information

Network Operations & Managementwithout customer information

Customer-centric Channel management is imperative for increasing customersatisfaction in rapidly changing business environment

• Different views by different organizations and staffs Harmful Business Model for Customer

- 30 -

(IntegratedBilling, Ordering, and

CRM)

(IntegratedBilling, Ordering, and

CRM)

KT Strategy for Integration of OSS/BSS

Phased OSS/BSS Integration Approach for Accelerating Business Transformation

PSTN xDSL Network Infrastructure

NetworkManagement

ServiceManagement

Businessmanagement

FTTH, WiBro, BcNSDP, IMS

W-CDMA / HSDPA 4G

NeOSS(Integrated configuration,

assurance, workforce, and Inventory Mgmt.)

NeOSS(Integrated configuration,

assurance, workforce, and Inventory Mgmt.)

IntegratedNMSs

IntegratedNMSs

NeOSSNeOSS

ICISICISSilo

Silo

Silo

Wired + Wireless

Wired + Wireless

• ICIS: Integrated Customer Information System for one-stop customer care and billing• NeOSS: New & Next Gen Operations Support System for flow-through fulfillment and assurance

- 31 -

SOA Framework for Open OSS/BSS

SOA and OSS/BSS Service Orchestration - SOA is a powerful integration approach because process flow no longer needs to be hard coded but can follow a contractual model

Enterprise & SOA GovernanceEnterprise & SOA GovernanceBusiness

Architecture

BusinessArchitecture

DataArchitecture

DataArchitecture

ApplicationArchitecture

ApplicationArchitecture

TechnologyArchitecture

TechnologyArchitecture

ServiceLife-cycle Mgmt

ServiceLife-cycle Mgmt

Standard I/FManagement

Standard I/FManagement

SOA Framework for OSS/BSSSOA Framework for OSS/BSS

ERPERP

CRMCRM

BillingBilling

IntegratedFault Management

IntegratedFault Management

IntegratedPerformanceManagement

IntegratedPerformanceManagement

Integrated ServiceQuality Management

Integrated ServiceQuality Management

Integrated ServiceSession Management

Integrated ServiceSession Management

Zero-touchDevice Management

Zero-touchDevice Management

Domain specificxNMSs

(include Probes)

Domain specificxNMSs

(include Probes)

Workforce Management

Workforce Management

IMS/SDPManagement

IMS/SDPManagement

ServerManagement

ServerManagement

EventNotification

EventNotification

Service Registry

Service Registry

PersistentEvent

Repository

PersistentEvent

Repository

DataTransformation

DataTransformation

EventFilter &Security

EventFilter &Security

Messaging/Transport

Messaging/Transport Web ServicesWeb Services Connector/

Adaptors

Connector/Adaptors

MessageRouting &

Distribution

MessageRouting &

Distribution

ESBWeb

Services

Governance& Monitoring

UDDI Registries

UDDI

BusinessManagement

BusinessManagement

ServiceManagement

ServiceManagement

NetworkManagement

NetworkManagement

CustomerManagement

CustomerManagement

Flow-through operational process management

Ful

fillm

ent

Ass

uran

ce

Bill

ing

Ope

ratio

ns &

Mai

nten

ance

Pro

cure

men

t &Li

fe-c

ycle

Mgm

t

Workflow Engine & BAMWorkflow Engine & BAM

GIS-enabled Integrated OSS/BSS WindowsGIS-enabled Integrated OSS/BSS Windows

CustomerCustomer PartnerPartner EmployeeEmployee StakeholderStakeholder

Enterprise Data

Facility, circuit, session, customer, QoS, SLA, Contract, product, HR, Rule & Policy …

- 32 -

• OSS/BSS Transformation

• Conclusion

- 33 -

OSS/BSS Transformation

Unsustainable cost structure !!!

TodayTomorrow

$

!

Fix

ed N

etw

orks

Fix

ed A

pplic

atio

ns

Mob

ile N

etw

orks

Mob

ile A

pplic

atio

ns

Ent

erpr

ise

Net

wor

ksE

nter

pris

e A

pplic

atio

ns

Spaghetti Networks & Siloed OSS/BSS

(Vertically Integrated)

Network/Transport(Different access networks

IP)

Network/Transport(Different access networks

IP)

Common ServiceCapabilities (IMS/SDP)

Common ServiceCapabilities (IMS/SDP)

Applications &Contents

Applications &Contents

Converged Networks &Integrated OSS/BSS

(Horizontally Layered)

• Market/service differentiation (penetration rates stagnating)

• Stop Opex explosion• Standards, technologies now available (IP, SIP

everywhere)

OSS/BSS innovation is imperative for rapid response to Telco’s business transformation

InnovativeEnterprise

Architecture

OSS/BSSIntegration

for Converged Infrastructure

ServiceOriented

OSS/BSS

All managed targets are converged

- 34 -

Conclusion

Telcos and Operators must move from network orientation to service orientation for successful realization of business transformation

BusinessTransformation

• The future role of Telcos and Operators is aggregator of contents and services with their existing core competence of data pipes

• Network value is rapidly move to the value from CPE and applications

OSS/BSSTransformation

• OSS/BSS innovation is urgent for rapid response to business changes and competition

• End-to-end service management is imperative for converged business infrastructure (session, fault, quality and billing)

• Zero touch and remote management of end-user devices

• SOA-based OSS/BSS Integration

OperationChallenges

• Every things are converged

• OSS/BSS are still fragmented and partly integrated

• Operation staffs are continuously decreased and aged

• Unmanned offices are increased

- 35 -

Q&A