Fixed Mobile Convergence:
A Business Transformation Driver
Norbert Matuku
OUTLINE
Introduction
• Fixed voice revenues have been eroded by mobile services.
• Traditional Telcos need new revenue streams.
• Over The Top Applications have changed the Industry.
• The competition is now stiff.
• Convergence is the way for Fixed Operators?
• Is LTE the Answer to revenue woes?
• Content is the Game Changer?
• Customer Experience is the answer?
FACT
What is Fixed Mobile Convergence?
FIXED
CONVERGENCE?
What was
FMCMOBILE
originally?
Fixed Mobile Convergence?
• FMC is not new.
• It is not a service. It is a concept.
• An attempt to reverse FixedMobile 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.
•
•
•
•
•
•
•
One Device
One Number
One Message Box
One Address Book
One Secure Connection
One Point of Contact
One Bill
In essence, FMC means that a single device can connect through and be
switched between wired and wireless networks.
FIXED MOBILE
FMCCONVERGENCE
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.
The focus of FMC and next generation networks is now on
using fixed line infrastructure to achieve several things:
Packet
switched
Multimedia communication
a) To provide real solutions to customers
• Business
• Consumer
• Home entertainment
Circuit
switched
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).
Voice
Fixed
Mobile
FMC can be viewed at 3 layers
NETWORK
CONVERGENCE
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.
DEVICE
CONVERGENCE
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.
SERVICE
CONVERGENCE
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.
NETWORK
CONVERGENCE
CONVERGENCE
Wireless
Voce/ Data
Access Network
Interconnect
Fixed
Voice /Data
Access Network
WiMAX
RAN
ISP
VPN
Transmission & Data
Network
Switching
(Core Network)
Data Network &
AAA
3rd
Party
Payables
Sales
Orders
Acc Mgmt
Charging
Inventory
Customer
Mgmt
Voucher
Mgmt
Product Cat
Mediation
Invoicing
CTI
Case Mgmt
Rating
Reporting
/ MIS
Receivables
Financials
CTI
CRM Client
Call Centre
Customer
Support
Customer
Operations
OSP
Channel
Operations
Fiber
CRM/Billing
Single POS
Self Service
web
IVR
SMS
Retailers
Customer
Customer
Customer
Self
Service
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
2008
15%
5%
Voice
20%
60%
Internet
Data
Other
2015
8%
17%
Voice
51%
24%
Internet
Data
Other
Africa is covered by the people who know Africa
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 assets
Our 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.
Legacy Network Operational View
Fixed Line
Billing
Fixed Line
Core NW
CDMA
Billing
CDMA
Core NW
WiMAX
Billing
Most legacy systems have
their own core network,
own billing and
management system
WiMAX
Core Network
System Architecture is that of Silos; services and resources cannot be shared
Where Are we Bleeding?
 System Licences especially on stand-alone databases
 Maintenance and SLAs
 Human Capital Waste
 Operational Overheads: Power
Stand-Alone systems are not primed for the competitive environment.
How do we transform…….
Total Convergence
Converged
Billing
Converged
Core Network
Fixed/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
Converged Billing and CRM…
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
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
IMS…..
CSCF
BGCF HSS
MGCF
MGW
AGCF
IM-MGW
IBCF AS
PDF
BCF
IMS
IMS Benefits
IMS is not a product but …
defines architecture, functions and interfaces
 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
FMC Product - Example
Convergence
Level
Description
Invoice
One Invoice (Voice and Data)
One Account for Fixed and Mobile Services
Accounts
4 Wallets (SMS, Fixed/Wireless Voice, GSM Voice, Data)
Once-Off N$X, MRC N$X, SMS N$0.X/Unit, MMS N$0.X/Unit
Billing
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
One Rate for Mobile Voice
Rate
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
Pitfalls
Mobile business flows along FMCG; It requires a different approach to fixed business
 Mind-set shift
 New Skills
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
Jack of ALL trades……
 Core Network
 Radio Network
 Transport
 Business Support Systems
 VAS systems and applications
 Integration platforms
Conclusion
Dinosaur Tragedy!!!!
Thank
You
Change is the only Constant in this business…..