Industry Edge Communications Edition

Feature story: David Sliter on profiting from the new normal in IT and Telecom

Monetizing data: behavior-based pricing

The exploding cloud market

You say you want an M2M revolution

HP Enterprise Services /// Issue 001 /// Spring 2012

2. Industry Edge Communications Edition

Welcome to “Industry Edge,” the new e-zine

from HP Enterprise Services that focuses on

key industries. In this inaugural issue, we take

a look inside the communications industry.

In our feature story, HP’s David Sliter observes

that communications service providers (CSPs)

have a historic opportunity to be at the heart

of an emerging “intelligent economy,” where

billions of people have access to each other

and trillions of connected devices. Other HP

experts – and customers – describe how CSPs

must leverage their networks and customer

assets; embrace new technologies like cloud,

machine-to-machine (M2M) and big data;

and generally, reinvent themselves for a new

world. As you read through their stories, we

hope you are as inspired as we are about the

tremendous opportunity upon us. We hope

that “Industry Edge” gives you – executives of

CSPs and others in the telco, Internet, cable,

and mobile industry – the edge you need to

navigate the communications transformation

unfolding today.

What’s next from HP Enterprise Services

In t

his

issu

e 4 Feature story: David Sliter on

profiting from the new normal

in IT and telecom

12 Mobile World Congress 2012: beyond

the smartphone

16 Enabling business anytime, anywhere:

the enterprise mobility market

18 You say you want an M2M revolution

24 Case study – Magyar Telekom

speeds time-to-market to gain

the competitive Edge

26 Want to transform the business?

Put HP SCS heavy-hitters on your side

30 Case study – UNE: An exercise in

integration satisfies customers

and saves $150 million

32 SMBs: a sizable opportunity for

communications service providers

33 Tim Marsden’s cloud perspectives

34 HP helps China’s Liaoning Mobile

manage its network

38 Case study – Softbank BB saves time

and resolves issues faster with HP

40 Monetizing data with behavior-based

pricing models

42 Case study – Rogers gives customers

the power of choice

Visit us at www.hp.com/go/csp

Read our Telecom IQ blog at

www.hp.com/go/hptelecomiq

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5.Industry Edge Communications Edition

By David Sliter

The information and communications technology industry is again entering a period of profound change, marked by an explosion in users, applications, and data, as well as seamless and ubiquitous connectivity.

At the center of this change are communications service providers (CSPs), who need to prepare for the coming opportunities.

Profiting from the new normal inIT and telecom

1.2billion people have mobile broadband subscriptions, while approximately 44 percent of Facebook users are already mobile1.

David Sliter serves as vice president and general manager of the Communications, Media &

Entertainment Solutions organization at HP. His responsibilities encompass end-to-end P&L

management of the critical CME industry vertical for the company.

1. Facebook November 2011 statistics

6. Industry Edge Communications Edition

In IT and communications today, we’re

experiencing significant change, one that

market research company IDC refers to as the

third platform of IT industry growth1. The first

platform was the mainframe and terminals,

where mainframes lived in secure rooms

and were served like pagan gods by the high

priests of computing. A limited number of

individuals had access via terminals or used

the analog telephone network to get access for

their terminals at ridiculously low bit rates.

Then came the opening of information and

communications technology with the second

platform, based on local area networks (LANs)

and the Internet, client server models, and

ubiquitous PCs. Modems were phased out and

RJ-45 ports started appearing in all hotels.

Wi-Fi became widespread. In this model, each

platform is delimited by the number of users

that come onstream. Hundreds of millions

of users became connected and tens of

thousands of applications came into use.

The third platform ushers in a radical new

era in which billions of people have access

and potentially trillions of “things” become

connected. Long Term Evolution (LTE),

Wi-Fi, fiber to the home, and Ethernet for

the enterprise all contribute to a lower-cost,

accessible-anywhere Internet. Cloud services,

big data analytics, mobile devices and apps,

and social media provide a massively

scalable and highly intelligent compute

and services platform.

1. Mobility, Clouds and Intelligent Industries: Positioning for the Third Wave of IT Industry Growth, IDC 2011

The opportunity>

3The third platform ushers in a radical new era in which billions of people have access and potentially trillions of “things” become connected.

7.Industry Edge Communications Edition

2. Facebook November 2011 statistics

Already, close to half of users access the Internet by

mobile device rather than PC, and IT spending

is moving rapidly toward the cloud. CSPs need

to adjust their five-year plans to be at the heart

of this upheaval.

From their position in the center of the third

platform, CSPs should be launching cloud and

machine-to-machine (M2M) services, inserting

themselves into enterprise mobility and

application stores, and building analytics to put

value into the connectivity relationship through

personalization. In addition, let’s not forget

the things they do best: high quality, well-

managed connectivity, economies of scale,

revenue intelligence, and billing relationships.

Cloud and mobility

According to the International

Telecommunications Union (ITU), 1.2 billion

people have mobile broadband subscriptions,

while approximately 44 percent of Facebook

users are already mobile2. Internet usage is

rapidly going mobile and moving away from

PCs. Cloud services present a huge opportunity

for CSPs in developed markets, targeting the

enterprise, and in developing markets that

focus on both consumers and businesses.

As they rapidly mobilize their workforces,

businesses need consulting, managed and

hosted services, and implementation expertise.

Cloud services will revolutionize traditional IT –

moving it away from the high CAPEX, highly

project-oriented model to a utility model for

compute, platform, and software services.

In developing markets, where fewer people

have PCs, the awareness of over-the-top (OTT)

cloud suppliers will be lower, presenting an

opportunity for CSPs – in particular, mobile

network operators – to provide consumer

cloud services such as music and video,

backup and storage, payment services, etc.

The third platform puts the CSP at the heart of this intelligent economy. By providing seamless connectivity, supporting the mobile device ecosystem, and being a provider of cloud services, the CSP is in an enviable position to profit from these changes.

8. Industry Edge Communications Edition

CSPsIn developing markets, where fewer people have PCs, the awareness of over-the-top (OTT) cloud suppliers will be lower, presenting an opportunity for CSPs.

Analytics and personalization of services

CSPs should be taking advantage of customer

data to create higher-value relationships with

customers and partners in the value chain.

By leveraging customer data and new big

data analytics, operators can add more value

in two directions:

> In their own ecosystems – Operators can

use this data to identify what services

customers want, how they want to pay

for them, and how those services

can be configured to be most relevant

and profitable.

> In the wider value chain – Operators can

use that data to inform and assist partners.

This must be done carefully, to protect

the privacy of the user. But customer data,

along with the networks themselves, may

prove to be the operator’s greatest asset.

9.Industry Edge Communications Edition

Beyond operational efficiency

Now more than ever, CSPs need to provision

and deliver services and assure quality and

continuity in a highly automated and reliable

way. For the third platform to succeed,

connectivity services must be universal,

relatively low-cost, and highly reliable.

How can these criteria be met with high-cost

manual operations processes? CSPs need to

transform operations support systems (OSS)

and business support systems (BSS) to gain

common operations procedures and data,

while automating as much as possible.

Moreover, after years of considering operations

as a cost center to be optimized, CSPs realize

that investing in operations and business

processes and systems can have a direct

impact on the top line as well. Accelerating

time-to-market for new offers and delivering

a better customer experience for subscribers

are both strategic challenges in which the

answer resides in well thought-out OSS or

BSS investments. The advent of LTE is

creating a unique opportunity for mobile

operators to initiate the right transformation

in their operations.

Both fixed and mobile operators have an

opportunity to reduce their connectivity

costs and improve quality of experience

for customers through content delivery

networks (CDNs). With video pushing

bandwidth limits in both fixed and mobile

networks, a CSP-owned CDN that is based on

commodity IT hardware addresses both goals.

Machine-to-machine

Machine-to-machine communications are

both enabled by and a reason for the third

platform’s expansion of utility. Some of the

early applications of M2M include smart grid

and smart cars. In M2M, as in other areas of the

third platform, CSPs have an enviable position

in the middle of the connected ecosystem. This

position allows them to link the information

streams together to make intelligent decisions

(e.g., the user is at home, but her car has left

the country, so it might be a good time to

send an alert that the car may be stolen). And

since all applications require connectivity, and

many need to be managed, M2M plays well to

the strengths of the CSP. With the capability

to manage massive network environments

today, CSPs can embrace the connectivity and

management needs of M2M better than other

potential suppliers.

10. Industry Edge Communications Edition

Revenue intelligence

As more users and applications connect to

communications service, the risk of revenue

leaks increases, whether due to subscriber

fraud and credit risks, or flaws in more complex

revenue management procedures and existing

OSS and BSS infrastructure. It’s not just about

voice and data traffic, but also purchases of

content and media, apps, and merchandise.

Untrustworthy subscribers, automated attacks,

flawed processes, and leaky systems can all

lead to significant revenue loss.

In summaryWith each new IT platform comes an explosion

in IT’s usefulness, leading to many more users

and fields of applicability. We’re now talking

about millions of applications, billions of users,

and trillions of devices connected, producing

zettabytes (1,000 exabytes) of data. For CSPs

this change ushers in an era of seamless

connectivity, putting them at the heart of

the platform. CSPs need to understand the

power they have in this role and the business

opportunities presented.

Read on to learn more about the exciting developments taking shape within the communications industry. >

Mob

ile W

orld

Cong

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13.Industry Edge Communications Edition

Mobile World Congress 2012:

By Marie-Paule Odini

beyond the smartphoneThe 2012 Mobile World Congress (MWC) event

was held at the Fira in Barcelona, on beautiful

Plaza España facing Montjuïc. An amazing

venue surrounded by old red buildings and

magic fountains, MWC 2012 saw record

attendance, up 11 percent with 67,000

visitors from 205 countries according to GSMA.

With visionary keynotes, interactive panels,

developer workshops, industry forums on hot

subjects such as Long Term Evolution (LTE)

or augmented reality, and the popularity of

the App Planet (which saw 1,400 exhibitors),

MWC 2012 was a great place to meet

customers, partners, and competitors and

enjoy mobile networking by the moonlight.

Yes, MWC is also known for great parties.

14. Industry Edge Communications Edition

Comparing apples to apples Droids

In addition to record-setting attendance,

another notable takeaway was the

massive presence of AndroidTM. Those who

entered the event through hall eight were

confronted with a huge Android booth

filled with application developers, cool app

companies, and the ubiquitous little green

Android mascot. The message was clear:

Android is big, with 700,000 new activations

per day, on close to a total of 300 million

devices (by comparison, Apple® has 330

million)1. In addition, the Android app market

now has a total of 450,000 apps, gaining on

Apple’s total of 550,000.

Smartphones on steroids

So it’s no surprise that there are a bunch of

new smartphones and tablets on Android 4.0

ICS (also known as “Ice Cream Sandwich”).

The latest devices incorporate quad-core and

16G RAM – pleasantly surprising when you

were expecting “dumb” devices that leave

the intelligence to the network. Because even

though the trend is to put everything in the

cloud, video and gaming still require edge and

device intelligence.

Today’s smartphones are so much more

than phones: the Nokia PureView includes

a 41-megapixel camera, and the Samsung

Galaxy Beam features built-in projector

capabilities. Even Intel® launched its phone

(soon to be available via Orange) with a high-

definition multimedia interface (HDMI), near-

field communication (NFC, a technology similar

to radio-frequency identification [RFID] that

allows short distance communication), and an

Atom processor.

1. http://googlemobile.blogspot.com/2012/02/androidmobile-world-congress-its-all.html

Mobile World Congress 2012 saw record attendance, up 11 percent with 67,000 visitors from 205 countries.

67,000 visitors

15.Industry Edge Communications Edition

Greater control through constant connection

The big event theme this year focused on

HTML5 and apps, machine-to-machine (M2M)

with a connected car (a black Porsche with

a fully connected, dynamic dashboard), as

well as mobile health (mHealth) and a GSMA-

connected house. LTE is deploying and was live

at the Fira with standard form-factor devices

(not the huge battery people were predicting).

Access points such as small cells and

femtocells with multiband 3G LTE Wi-Fi and

Wi-Fi offload, and analytics with customer-

experience management were showcased.

Cloud was everywhere as well: smartphones

come with cloud services and applications,

software-as-a-service, and even base stations

are now hosted in the cloud. HP had a busy

booth in hall seven, showcasing the HP

Ultrabook, ePrint, and Aurasma augmented

reality technology as well as HP Actionable

Customer Intelligence. In addition, we featured

the HP Home Subscriber Server (HSS) solution

and policy management software to show

how a highly personalized customer

experience can be delivered on LTE networks,

a solution currently deploying at Hutchison

3G (H3G) Austria.

Marie-Paule OdiniHP Chief Technologist

Overall, it was a good show, presaging a solid future within a $1.5 trillion market. Mobile market growth is staggering, with GSMA forecasting double-digit expansion on pace to reach 9.1 billion mobile connections by 2015.

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Enabling business anytime, anywhere:

The enterprise

Driven by the unprecedented success of smart devices, particularly the high adoption of Apple iPhone®, and extended recently by the success of Apple® iPad® and Google™ Android™- based devices, the mobility market is witnessing a transformational impact on the enterprise.

Whether it is a fashion catalog or an oil and gas field services application, enterprises are building hundreds of new mobile applications that connect business processes to employees and customers using smart devices.

mobilitymarket

17.Industry Edge Communications Edition

Market dynamics indicate that mobility, cloud,

and the enterprise are coming together. This

integration creates new requirements for

employees who need anytime, anywhere

access, and enterprises who need to reach

sizable customers with simple internal

management and optimal controls. To meet

those requirements, large enterprises are

launching enterprise application stores to

create, certify, distribute, and manage mobile

apps so employees can access key corporate

information and applications for their business.

Communications service providers (CSPs)

employing enterprise application strategies

will potentially generate significantly more

revenue than consumer apps. Not only can

they transform their own enterprise to enable

employees to bring their own devices and use

mobility apps for their own business, but they

can leverage their network assets to offer

“mobility-as-a-service” for enterprises that

want to build and deploy their mobile apps.

HP offers an end-to-end view of mobility

to support the CSPs’ business models. Based

on the HP Enterprise Mobile App Store and

the HP Enterprise Mobility Gateway, the HP

solution provides an integration framework

that allows developers to build mobile

enterprise applications that can securely

access back-end enterprise data, synchronize

with external data sources, and provide data

caching for mobile application in a rich end-

user experience across multiple devices.

Enabling business anytime, anywhere:

The enterprise

market

Mac

hine

-to-

m

achi

ne

19.Industry Edge Communications Edition

By Nigel Upton

You say you

Revo lution...

want an M2M

1. “Cisco predicts 15 billion network devices in 2015,” InfoWorld available at http://www.infoworld.com/d/networking/cisco-predicts-15-billion-network-devices-in-2015-788.

2. “M2M on the rise: the services perspective,” Heavy Reading available at http://www.heavyreading.com/mobile-networks/details.asp?sku_id=2555&skuitem_itemid=1264.

3. Morgan Kennan

One of today’s most exciting and dynamic new communications trends is machine-to-machine (M2M). Want proof?

The number of worldwide M2M network connections is slated to hit more than 15 billion by 20151.

In terms of devices, M2M connections are expected to grow from 75 million devices to 225 million devices by 20142.

M2M subscriptions will go from 100 million today to 100 billion in the foreseeable future3.

20. Industry Edge Communications Edition

M2M is poised to reshape how we interact

and use machines to become more efficient

and productive. The M2M revolution will affect

people in every industry: nurses, security

officers, scientists, teachers, motor mechanics,

and structural engineers.

billions, or even trillions of nano-scale sensors,

strategically positioned throughout the

world. They can detect footsteps or sense

an ammonia or gas leak. They can gauge the

speed and volume at which traffic moves along

a freeway, or monitor wear and tear on

a bridge or manufacturing line machines.

And the M2M revolution will get personal.

> As you shoe shop in the near future,

a “chip” in your shoe could tell your retailer

what size you wear and when you last

purchased that shoe.

> In the event that you’re hospitalized, an

ingestible chip might help doctors monitor

your progress internally.

> Your home could call to tell you that you

forgot to turn off the water before leaving

for vacation, giving you the option to do

so remotely, thereby preventing a potential

disaster when your icemaker decides

to leak.

HP has helped our clients in industries

such as health care, automotive, process

manufacturing, energy, and utilities to develop

M2M infrastructures that will drive ever-

increasing efficiencies and new capabilities.

Our clients in the communication business –

Think of millions,

>

21.Industry Edge Communications Edition

both wired and wireless operators – are well-

positioned to deliver the innovative and low-

cost network capabilities needed to support

M2M. This position represents an opportunity

for communications service providers (CSPs) to

re-engage customers and deliver new service

experiences. According to Harbor/ABI – 2010,

this represents a $50 billion opportunity

for CSPs alone in 2015. HP not only has the

infrastructure to enable CSPs to build out an

M2M infrastructure through a combination of

HP hardware, software, and services, but we

also combine partner technologies to complete

our M2M solution offerings. In addition, HP has

deep industry expertise in multiple verticals.

We have been helping customers in process

manufacturing with radio-frequency

identification (RFID) for years. We’re a critical

solution provider in health care, our footprint

in the automotive industry is global, and our

presence in energy, utilities, and financial

services is substantial.

By combining HP technology with our industry footprint, we can create the partnerships necessary to develop an ecosystem that aligns with our M2M capability. As the trusted advisor for M2M, only HP has the depth and breadth to offer the different ver̀ vticals an agile solution that’s capable of managing a constantly expanding deployment of machines and sensors.

$50 billionopportunity for communications service providers alone in 2015.

22. Industry Edge Communications Edition

Nigel UptonDirector of the Targeted Innovation (TI) portfolio,

HP Communications & Media Solutions

Telecom Italia uses the HP Service Delivery Platform (SDP) and HP professional services in its connected-car initiative “Infomobility,” which includes parking guidance, traffic and vehicle tracking, and an open application programming interface (API) portal for developers. This type of project is part of the HP M2M offering, which also includes Smart Grid, e-Health, mobile subscriber identification module (SIM) management, and more.

In addition, SingTel with HP, HealthSTATS, and Frontier Healthcare group have launched a cardio monitoring solution. The offering enables patients’ physicians to monitor their cardiac health around the clock, keeping them better informed when the patient might need an intervention.

HP in M2M action

CaSE STuDy

a case study

competitive edge

Magyar TeleKom speeds time-to-market to gain the

25.Industry Edge Communications Edition

competitive edge

Magyar Telekom, the prime telecom services operator in Hungary, needed a more efficient way to launch next-generation services and streamline existing processes. Facing the increased service provisioning complexity associated with more personalized services, complex/multi-technology networks, and end-to-end service guarantees, the company knew that transforming its business required strong core technology. HP Enterprise Services stepped in to address the challenge.

HP conducted a deep and broad assessment

of the service lifecycle and worked with Magyar

Telekom to transform its business processes

and operational structures, including the critical

area of service provisioning and activation.

It was determined that Magyar Telekom had

to move to HP Next Generation Operations

Support Systems (NGOSS), a task that was split

into two parts – fulfillment and assurance.

Magyar Telekom chose an HP Service Activator

(SA) solution for two reasons:

> HP SA could meet the company’s principal

criteria of handling fixed, mobile, and

cable services.

> Magyar Telekom preferred the greater

simplicity of HP’s licensing policies.

HP SA design and development leveraged

considerable input from HP Solution Consulting

Services (SCS), which provided analysis of the

service lifecycle through use-case activities,

systems and tools, and roles based on industry

best practices including the enhanced telecom

operations map (eTOM) process framework.

Ultimately, these partnerships reduced

time-to-market for new services by 10 to 20

percent and allowed the implementation of

next-generation services, making the company

more competitive and profitable.

> READ THE CASE STUDY

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More than ever, the business world demands flexibility in adapting business to changing market dynamics. Concepts must be

taken to market rapidly and the organization must be agile enough to shift accordingly.

Want to transform the business?

Put HP SCS heavy-hitters on your sideBy Paul Nicholls

27.Industry Edge Communications Edition

Today’s business-driven operations must

keep pace with fluid market dynamics while

balancing internal business pressures and

market results. The question is no longer

“why transform” but “what and how to

transform” to improve the customer

experience, achieve operational excellence,

and fuel service innovation.

HP provides a complete capability to enable business transformation– from increasing revenue to implementing world-class cost structures and operational models.

HP Solution Consulting Services (SCS), our

Communications, Media, and Entertainment

(CME) business consulting practice, is helping

clients achieve real business change through

transformation. SCS partners with our clients

to define and execute profitable transformation

strategies that lead to tangible business

outcomes. These credentials are enabled by:

> A global consulting practice of

CME industry business consultants

> A portfolio of consulting capabilities across

three areas: strategic and financial advisory,

operational excellence, and transformation

management

> A CME industry framework that combines

industry standards, technologies, solutions,

and operational best practices in a cohesive

industry operational blueprint

> Proven methodology and credentials to

plan and orchestrate enterprise-class

business transformation

Everyone has goals – the best have roadmaps

One area where we increasingly see clients ask

for our leadership pertains to the development

of a measurable business-results-oriented

transformation program that defines where the

client needs to go, how to get there, and what

the business benefit will be.

SCS uses benchmarking as a central element

in comparing as-is client business and

operational metrics to their industry peers,

as well as their desired strategic objectives.

Comparison is only the first dimension to the

effective use of benchmarking; critically, we

also analyze the reasons for the difference

and propose actionable solutions to move

to strategic objectives.

28. Industry Edge Communications Edition

In a recent transformation engagement

with a client in Asia, benchmarking played

a key role in helping HP develop a holistic

approach to the client’s customer experience

transformation program. mobility apps for

their own business, but they can leverage their

network assets to offer “mobility-as-a-service”

for enterprises that want to build and deploy

their mobile apps.

We used benchmarking to assess the current

assurance and fulfillment efficiency to validate

where the client was positioned in relation

to their strategic aspiration. The analysis

assisted HP in working with the client to create

a program that aligns organization, process,

metrics, and systems elements to enable the

success of the customer experience initiatives.

Gain insight into innovation

Our clients are also looking for our

perspectives as they relate to innovation.

To provide insight in this area, we have

established a collaborative forum known as

the Industry Advisory. Through the Industry

Advisory, we deliver client-facing, executive

thought leadership supported by detailed

research. Focusing on key industry topics,

the forum is developed and maintained by

our globally distributed industry business

consultants and subject matter experts.

The DNA of HP SCS integrates the deep

industry experience of our consultants,

a holistic approach to transformation,

a commitment to the development and use

of industry best practices to mitigate program

risk, and the passion our consultants have to

make a difference for our clients.

Paul NichollsGlobal Practice Principal

HP Worldwide Solution Consulting Services

30. Industry Edge Communications Edition

a case study

satisfies customers and saves $150 million

UNE: an exercise in integration

case study

31.Industry Edge Communications Edition

satisfies customers and saves $150 million

UNE EPM Telecomunicaciones (UNE) is one of the leading communications service providers in Colombia, operating diverse networks including fixed-line voice, Voice over Internet Protocol (VoIP), high-speed Internet, cable TV, and entertainment, as well as providing co-location and hosting services to business clients.

Formed after the merger of seven

companies, UNE was faced with integrating

numerous platforms and disparate individual

management systems. Employees had

to manage approximately 8,000 different

configurations – many of which required

manual operations. The unwieldy network

management situation was negatively

impacting customer satisfaction, affecting

UNE’s ability to develop services, and leading

to customer churn.

UNE issued a request for proposal to

six network management vendors, and

ultimately chose the HP Operations Support

Systems Transformation offering, a Manager

of Managers (MoM) consolidated service

assurance solution. The decision hinged on

a total cost of ownership that forecasts a

payback period of five years and the ability to

see all of the company’s services and networks

from one central point.

An economical solution that improves customer satisfaction

The MoM solution gives UNE the ability to

detect outages faster because it allows the

IT staff to see most network faults almost

in real-time – before they affect service to

customers. UNE now has total operational

visibility, implementation issues can be

addressed with teams that speak the same

language, and rectification times have gone

down from several hours to 30 minutes.

And if that’s not enough, the company expects

to pay back its financial investment in five years

and will save $150 million in three years – all

while delivering better customer satisfaction

than the competition (according to regular

surveys by market researcher Ipsos).

> Read the case study

32. Industry Edge Communications Edition

To say the “as-a-service” opportunity is

huge, risks understating the case. More than

half of all small and medium business (SMB)

customers want an “as-a-service” offering

that’s driven by cost savings, technical

agility, and dynamic consumption. They

want a better user experience based on a

trusted relationship beyond a single service.

Fortunately, communications service providers

(CSPs) are ideally positioned to deliver the “as-

a-service” benefit to business customers.

But today’s service providers confront difficult

challenges. First, they need to foster top-line

growth, which means attracting more new

clients, increasing service signups from their

current customer base, or selling a richer mix

of more profitable services. Second, they must

increase sales and revenue while distancing

themselves from their competitors, which

means counteracting over-the-top media

delivery from the likes of Hulu and Netflix as

well as public cloud service offerings from

Amazon, GoogleTM, and Microsoft®.

The answer to such challenges is HP

CloudSystem Service Provider, which offers

a competitive advantage by compressing the

time-to-market of differentiated services with

lower risk. The solution simplifies delivery

to multiple customers through an easy-to-

customize portal and delivers cost efficiency

with a pre-integrated and flexible end-to-

end cloud solution. As a key component of

the HP CloudSystem Service Provider, the HP

Aggregation Platform for SaaS (AP4SaaS)

enables the distribution, subscription, and

consumption of Infrastructure-as-a-Service

(IaaS), Communications-as-a-Service (CaaS),

Device-Management-as-a-Service (DMaaS),

and other on-demand cloud services.

HP offers a unique single vendor solution

for enabling businesses to generate new

revenue through on-demand “as-a-service”

offerings. Already deployed by major

operators worldwide, the IaaS and CaaS

offerings allow business customers to take

advantage of utility pricing and the flexibility

of an on-demand services model. Benefits

include more predictable operating costs,

low capital investment, and minimal risk

in new technology adoption.

SMBs:a sizable opportunity for communications service providers

Tim Marsden’s cloud perspectivesGain insight into the intricacies of the exploding cloud market in this interview

with Tim Marsden, director of Applications and Cloud Enablement for HP

Communications, Media, and Entertainment. Learn more about how HP enables

telecommunications clients to help their customers find, buy, and use cloud

services most effectively. And discover how HP’s recent alliance with Alcatel-

Lucent allows us to provide a full-spectrum cloud solution complete with multiple

delivery models and pricing plans.

Tim MarsdenDirector, Applications & Cloud Enablement,

Communications & Media Solutions at HP

Chin

a’s

Liao

ning

M

obile

35.Industry Edge Communications Edition

Liaoning Mobile, a fast-growing division of the

telecommunications company China Mobile,

recently selected HP solutions and services

to manage its network operations, helping

to ensure a consistent, positive customer

experience. Liaoning Mobile provides voice

and data services to more than 36 million

customers in China’s Liaoning Province.

With the company’s rapid growth, the task

of managing disparate network elements and

platforms from a variety of vendors became

increasingly difficult and inefficient.

Liaoning Mobile is deploying HP TeMIP for

Fault Management and the HP Service Quality

Management (SQM) platform to assure high-

quality service to its customers.

Both solutions are part of the HP Operations

Support Systems (OSS) – Transformation

portfolio. In addition, Liaoning Mobile is

using HP Solutions Management Services

(SMS) for ongoing support, operational

management, and architectural consulting

to model future enhancements.

HP helps China’s Liaoning Mobile

manage its network

36. Industry Edge Communications Edition

HP TeMIP reduces downtime

Liaoning Mobile’s OSS team chose HP TeMIP

for its “manager of managers” ability to handle

different technologies from different vendors.

HP TeMIP enables Liaoning Mobile to automate

a series of complex operational tasks to reduce

network downtime, improve service quality,

and enable resolution of network issues before

customers are affected.

HP TeMIP has a proven record of success

at more than 250 Tier 1 and Tier 2

communications service providers

worldwide. “To win and retain customer

loyalty, communications service providers

must be able to consistently deliver a rich,

rewarding customer experience,” said David

Sliter, vice president and general manager,

Communications, Media & Entertainment

Solutions, HP Enterprise Services. “With HP’s

balanced combination of OSS software and

management services, Liaoning Mobile can

be sure that its customers are receiving the

best possible quality of service.”

HP SQM improves service quality

Now in an early stage of deployment,

the HP SQM platform will offer Liaoning Mobile

real-time visibility on service quality, including

the ability to monitor actual service levels

across both network and IT service delivery

resources. It also will enable Liaoning Mobile to

identify and resolve problems quickly. Liaoning

Mobile plans to use HP SQM across all offerings

to consumers and enterprises, including mobile

broadband, Internet, voice, and data.

HP SMS simplifies accountability

With its Total Solutions Support offering, HP

SMS provides Liaoning Mobile with a single

point of accountability for problems – from

initial discovery to final resolution – across all

components of its new implementation. With

HP SMS, Liaoning Mobile can take advantage

of onsite HP engineers and managers who

provide 24/7 support services (reactive,

proactive, and operational) and manage HP

TeMIP and HP SQM operations to ensure

optimum results. Liaoning Mobile also draws

on HP SMS Solution Enhancement Services to

plan additional improvements.

2011Telecom Asia magazine recently named HP the

winner of the “Cloud Innovation of the Year”

award in its 2011 Readers’ Choice Awards.

37.Industry Edge Communications Edition

HP OSS solutions certified by TMF

HP also announced that the OSS Assurance

Suite v1.4 has completed certification for

TeleManagement (TM) Forum Frameworx.

With industry standards defined by TM Forum

Frameworx, communications service providers

can simplify IT infrastructure, improve

interoperability, and bring transparency to the

purchase of OSS solutions. The certified HP

OSS Assurance Suite, which includes HP TeMIP

and HP SQM solutions, addresses the needs

of convergent telecom and IT environments

with telecom-specific tools as well as IT

tools with telecom extensions.

HP wins cloud innovation award in Asia

Telecom Asia magazine recently named HP the

winner of the “Cloud Innovation of the Year”

award in its 2011 Readers’ Choice Awards.

Telecom Asia is a leading publication in the

communications service provider industry,

with print and online versions distributed

throughout Asia.

“HP’s CloudSystem gives telcos, which have

been struggling to find new revenue growth

areas, a simple and agile path to serve the

lucrative SMB market,” said Joseph Waring,

group editor, Telecom Asia. “HP leverages

cloud services so customers pay only for

what they use.”

Waring added that HP has demonstrated

leadership in expanding its cloud portfolio

to the often underserved small enterprise

segment. Analysts who nominated HP for

the award said the CloudSystem is a major

breakthrough, allowing service providers to

quickly move into the SMB space and offer

enterprises a low-risk, one-stop shop for

their IT and communications services.

“In the scramble to win subscribers away

from competitors, today’s service providers

need new sources of revenue to grow and

lead the market,” said Laurent Valluy, vice

president, Communications & Media Solutions,

HP Asia Pacific and Japan. “HP’s stand-out

achievements in cloud innovation are helping

telcos become public cloud service providers

so they can expand revenue opportunities

with SMBs.”

Winners were announced by Telecom

Asia at a reception in Singapore on

December 1, 2011.

The Cloud Innovation of the Year

Award honors HP for its new hybrid

delivery cloud solutions, which allow

telecommunications operators

to move into the SMB market with

revenue-generating, on-demand

communications services.

a case study

SOFTBANK BB saves time and

case

stu

dy

resolves issues faster with HP

39.Industry Edge Communications Edition

The high cost of Internet downtime and the importance of broadband are not lost on SOFTBANK BB, a “lifestyle company” offering broadband service accessible throughout Japan. When SOFTBANK BB needed to automate its trouble-resolution processes to shorten and standardize resolution times and reduce the burden of associated costs, HP answered the call.

SOFTBANK BB has a monitoring system

alarm that notifies personnel during a trouble

incident with its nationwide access equipment.

When this happens, the company’s Network

Operation Division investigates the cause of

the incident, isolates the appropriate location,

and implements optimized policies designed

for rapid recovery. Previously, SOFTBANK BB

had been experiencing varying resolution times

and costs, depending on the skill level of the

responding operator and personnel policies.

They needed to leverage IT to improve service

quality and increase cost-efficiency.

“We deliver a high-quality, stable broadband

environment to our customers 24 hours a

day, 365 days a year,” said Hiroki Muramasu,

SOFTBANK BB Access Operation Department

general manager. “Consequently, our standing

order is to plan for rapid recovery in the

unlikely event of a trouble incident.”

That standing order was ultimately fulfilled

by automatically isolating trouble incidents

using a system developed by HP. Providing

systematized business rules and alarm

notification, the Automatic Trouble isolation

System (ATiS) supplies field engineers with

instructions for recovery at the affected site.

Standardizing business rules enables the

organization to consistently employ best

practices without having to rely on the skills

of a single operator.

“Previously, overcoming a problem that

created operation load increases meant

throwing more resources at the problem,”

according to Muramasu. “With ATiS, the

situation is greatly improved because teams

are more informed and, thus, better able to

handle any spikes in the load. This has led to

improvements in our quality of service.”

As a result, SOFTBANK BB reduced the number

of work incidents, used automated primary

trouble response to reduce the risk of human

error, and shortened incident detection-to-

resolution cycle time.

case

stu

dy

resolves issues faster with HP

> Read the case study

Feat

ure

Mon

etiz

ing

data

behavior-based pricing models

The telecommunications industry has reached a tipping point. Like never before, today’s communications service providers are under mounting pressure to rapidly meet the changing business preferences of their customers. And while the industry discusses reinvention, many marketers are striving for real innovation but find it difficult to lay the first foundational brick.

To address these challenges, the

Chief Marketing Officer (CMO) Council and

HP have teamed up to investigate where

and how new thinking around data, analytics,

and the use of actionable customer intelligence

can further monetize mobile subscribers.

The thought-leadership initiative will tap into

the CMO Council’s Customer Experience Board,

a special interest community comprising

senior executives and marketing leaders

in the communications service provider (CSP)

space, to better understand where behavior-

By Liz Miller

Monetizing data with

41.Industry Edge Communications Edition

based pricing models

can positively impact

the customer experience

while optimizing new

routes to revenue.

Among the key areas

of investigation are:

> Current pricing pressures, challenges,

strategies, and intentions to monetize

service value, diversify revenue sources,

and individualize plans for greater

profitability and retention

> Factors and forces shaping existing and

traditional pricing models and satisfaction

with, or desire for more, innovation in

this area

> Organizational ability to react and respond

to change and the willingness to transform

and anticipate new opportunities

The output of this initiative will

be a comprehensive report that

chronicles the insights and input from

providers including AT&T, Deutsche

Telekom, Etisalat, Orange, Rogers

Communications, Sprint, Telefonica,

Viva, Vodafone, and more. The report

is expected to be released in mid-May,

with subsequent dialogs with leading

CSPs and operators taking place

throughout the year.

To schedule a call to review the research

results, please email Oded Ringer.

Liz MillerChief Marketing Officer Council

Vice President of Marketing Programs and Operations

case study

Rogers gives customers

a case study

the power of choice

43.Industry Edge Communications Edition

case study

Canada’s largest provider of wireless voice and data communications services, Rogers Communications was hoping to capitalize on the increased mobile data usage related to the expanding smartphone market. The company was struggling with an inflexible infrastructure: costly and awkward customer information consolidation tools, lack of automatic mobile device detection, and an inability to build rate plans or applications that matched actual customer device usage.

Rogers needed an innovative, single-platform

foundation that could support next-generation

mediation and billing models to accommodate

the launch of new services. To accomplish

this, the company chose HP Internet Usage

Manager (IUM), which provides real-time

flexibility to deploy current and anticipated

data collection, as well as tiered pricing plans

and charging services at a manageable cost.

Rogers’ Data Day Pass (DDP) plan utilizes the

data consolidated by HP IUM to allow users to

test-drive data usage and billing without risk.

The number of first-time data users increased

26 percent in the plan’s first year, increasing

Rogers’ DDP average revenue by 17 percent

within the same period, despite a 30 percent

reduction in price point. The HP program also

helps Rogers shorten development cycles to

speed time-to-market; some cycles have been

reduced from four to six months to 30 days,

resulting in significant cost savings.

Big bottom-line results

Reade Barber, director for data services

marketing at Rogers Communications, says

that HP IUM has given customers certainty

about what they’re buying. As a result, disputes

and credits have been significantly reduced,

and the company saves several million dollars

yearly in customer care calls.

According to Barber, “By introducing Data Day

Pass, we have seen a 98 percent reduction in

credits – from several million dollars per year

to virtually zero – and eliminated 120,000 calls

into customer care per year.”

> Read the case study

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