Strategic Transformation of ChinaTelecom and Its BSS/OSS Requirements •Kong Lingping Chief Engineer Network Operations & Maintenance Department China Telecom Lp.kong@chinatelecom.com.cn 5/21/2006 Content • Business transformation in China Telecom • New challenges for BSS/OSS • BSS/OSS upgrading roadmap • Summaries 5/21/2006 Telecommunications Landscape Triple-play ISPs LLU VOIP access BIT sale Broadband voice voice Competitive operator broadband Other operators mobile Competition Evolution Break-up Monopolization Heterogeneity Substitution Broadban d mobile Wi Fi Wi Max Full Competition 5/21/2006 resale strive for industry topend Progressive Strategic Transformation Consumer Contents and Applications Enterprise Applications and Solutions (Games, VOD, family informatization) (IP VPN、System Integration, IT Outsourcing) Wireline Broadband Network Fixed Wireless Network Mobile Network Fixed Telephone Mobile Handsets PC PDA TV Home Appliances Convergence of multi-networks, multi-terminals & multi-businesses 5/21/2006 Extension of value chain Communication Services (Voice, Data, Media….) Philosophy of Transformation foundation Support •Organization and HR Product 5/21/2006 Key Actions of Transformation(1) • Product and Service Transformation : – Fully leverage existing resources to consolidate traditional fixed line business – Increase contribution of non-voice business, Strengthen development of Internet access & VAS – Expand integrated information service, Enrich video communication business – Explore “Triple-play” and “Fixed-Mobile Convergence” 5/21/2006 Expanding Integrated Information Services Everyday life and infotainment Information Communication & Technology Information Release Communication Assistant Sector-specific Application Information Application Industry Directory Search Enquiry & Forward Services Communication Application Services Support Enhance customers’ “stickiness” to consolidate traditional business Generate new revenue sources Pave the way for providing seamless information and communication services in future 5/21/2006 Key Actions of Transformation(2) • Network and technology transformation : – Intelligent upgrading of wireline network with a softswitch solution that provides a single platform to deliver the IPbased multimedia services as well as all the necessary telephony services from the circuit-switched world – Introduce ASON on backbone and MSTP/RPR in access level – Extend FTTB; apply ADSL2+ and VDSL2 on last-mile – Initiate aggressive NGN migration 5/21/2006 Key Actions of Transformation(3) • Organization and HR transformation : – Reinforce corporate governance and internal controls – Reallocate manpower among front-line, back-end and administrative area to 6:3:1 proportion – Recruit employees with mature new skills such as marketing, mobile, ICT, internet etc. and also strengthen on job training for personal knowledge upgrading – Seek a change from function-oriented to process-oriented organization – Implement precision management among all business operations 5/21/2006 Content • Business transformation in China Telecom • New challenges for BSS/OSS • BSS/OSS upgrading roadmap • Summaries 5/21/2006 New Challenges for BSS Customer retention Revenue enhancement Operation efficiency improvement Unified Unified customer customer contact contact Requirements Requirements For For BSS BSS Unified Unified Billing Billing process process Revenue Revenue assurance assurance Complete Complete customer customer consumption consumption behavior behavior analyze analyze 5/21/2006 New Challenges for OSS Customer retention Revenue augmentation Operation efficiency improvement Integrated Integrated and and fast fast fulfillment fulfillment Requirements Requirements For For OSS OSS SLA-based SLA-based assurance assurance Low Low cost cost and and high high quality qualityof of maintenance maintenance Work-flow Work-flow control control and and support support for for new new technology technology 5/21/2006 BSS/OSS Progressive Requirements BSS/OSS requirements Accelerate BSS construction Comprehensive/In tegrate/accurate network inventory management Improve customer experience •Provide diversified and customized services Implement common data platform 3G service delivering support Allocate resource based on customer’s need Unified subscriber information •Provide integrated experience for customer Enrich VAS over fixed-line Support multiservice fulfillment and flexible charging process Optimize resource allocation, improve efficiency of resource usage Utilize historical customer data to promote VAS applications and prediction FMC support Reinforce broadband access and internet applications Converge with legacy network, provide bundling services Multi-resource integrate effectively Support internet connection service FMC support Formulate ICT service Support common service , outsource Managed service support Analyze value of ICT service Explore mobile service Service combination and bundling Expand Inventory system to include new resource Market policy decision making support Business transformation 5/21/2006 Content • Business transformation in China Telecom • New challenges for BSS/OSS • BSS/OSS upgrading roadmap • Summaries 5/21/2006 Introduction of CTG-MBOSS CTG-MBOSS is IT framework of China Telecom. Corporate Informationalisation Strategic Aims Information Sharing Effective Supporting Function and Technique Framework Methodology Methodology philosophy Manageme nt and Operations Structure MSS BSS Value Creating IT Control Framework IT Organization OSS Business Processes EDA Information Data Infrustructure Applications IT construction and maintenance CTG-MBOSS Specifications 5/21/2006 Roadmap of CTG-MBOSS Chance detecting Service convergence Service supporting IT value improve: •Total solution •Consultancy •Outsourcing •Fast response •Unified front-end database •Comprehensive inventory database •Single account, single bill •Service convergence •Active service Information Sharing Effective Supporting 2006 •Dynamic applications of resource Methodology Methodology 2007 Value Creating 2008 5/21/2006 2009 2010 BSS/OSS Core Projects Planned BSS/OSS supporting demand Focus on customer experience Accelerate BSS construction Comprehens ive/Integrate/ accurate network inventory management Implement common data platform 3G service delivering support Deploy ICT service core project planned BSS •CRM system •Billing system • 3G •Service fulfillment system OSS •SQM system for key account customers •Service assurance system •Automatic fulfillment system •Integrated network inventory management system •Enterprise data architecture (EDA) 5/21/2006 OMC; • 3G NMC; •Supporting 3G services in current BSS/OSS •Managed Services supporting system Case of CRM Marketing Marketing campaign Management Integrated customer service Market program management Customer interface management Sale Sale document management Buniness opportunity managent Sale activity management Team management Front end changing Customer SLA / management Query and service requiring Problem and fault accepted and tracked Sale campaign management Customer Management Customer information Partnership management Partnership relationship management Partnership Service support Order accepted and tracked Partnership Settlement management management Product management Product lifecycle management Customer assessment management Product configuration and catalog management Common Support Workflow management System monitor Log management Policy management Knowledge base authentication Configuration Abnormity management Report framework Phase II Function Phase III Function Legend Phase I Function 5/21/2006 •This is a typical case implemented in Zhe jiang province. •It shows the way of evolution : it will need three phases to realize whole functions. Case of EDA 5/21/2006 Case of SQM for Key Account Customer •SQM system for key account customer •terminal •terminal •Management systems on •customer customer 客户内网网管 applications. side •Management systems on customer side •Management Systems 综合告警系统 客户内网网管 on CT side •Step 1 Step 1 •Step 2 Step 2 •Step 3 Step 3 Step 1:include CPE devices Step 2:include intranet of enterprise customer Step 3:include applications of enterprise customer 5/21/2006 •Customer intranet •N•e •e•w•s •N•e•w•s •l •E•-•m•a•i•l •Local network •M•e•d•i a •i••a •Local network •S•t•r•e•a•m•i•n•g •Customer intranet •CPE •W•e •e•b •CPE •B•a•s•e•d •backbone •P •V•o•I•P •N•e•w•s •N•e•w•s •N•w •e•w •V•I•o •I••P P •s •V•o •N•e •s•s ••P P •E •-•m •-•m •m •a•i•a •l•i•l •E•-•m •- •W •e•b •W •e•b •B •a •s •e•d •e •d •B•a •s •e •S •S r•e •a•m •i •n •n•g •S•t ••t r••e•a •m •i•n •n •g •e•i•d a •i••a •M•M •e•d ••a a•i •N•e•w•s •s •Customer applications Content • Business transformation in China Telecom • New challenges for BSS/OSS • BSS/OSS upgrading roadmap • Summaries 5/21/2006 Summaries • Business transformation is a long-term task for CT. • IT support systems are critical to the success of business transformation. • Implementation of BSS/OSS is the assurance of transformation. • CT is looking forward to sharing experience with other operators and finding solutions from market products. 5/21/2006 5/21/2006