laying the foundation for the second transformation wave (2009)

Laying the Foundation for the

Second Transformation Wave

Marc JadoulBarcelona, 28 April 2009

All Rights Reserved © Alcatel-Lucent 20092 | IMS 2.0 World Forum | April 09

“It’s a great invention, Mr. Bell, … but the

keyboard is a bit tedious for Twittering.”


Today’s Hot Topics for Service Providers

Applications& Content

Network

Applications

Enablement

Transformation and optimization of networks and IT systems

Broadband rollout and infrastructure monetization

Reduced cost of service creation, integration and migration

Improved time-to-marketof new services and features

Access to new revenue streams and enhanced customer experience


Network First or Services First

All-IP Architecture or IP Overlay

Softswitch or IMS

Feature Continuity or Service Innovation

PSTN Emulation or PSTN Simulation

Cost Optimization or Revenue Growth

Consumption-based or Indirect revenue model

Carrier-driven or Subscriber-driven migration

Strategy Options Menu


About the First and the Second Transformation Wave

The First wave• Network first

• Infrastructure modernization

• Broadband rollout

• Cost savings: maintenance,

footprint, real estate, power,

OPEX, …

• Service continuity

• Carrier-driven migration

The Second wave• Services first

• Portfolio differentiation

• RoI on Broadband

• Revenue growth: VoIP,

Multimedia, IM, video,

triple play, FMC, …

• Next generation services

• Subscriber-driven migration

Heavy Reading, April 2008

Nine out of ten telcos expect telephony to become part of a broader communications offering that also includes IM,

video communications, and other non-voice services.


Voice Network Transformation Scenarios

TDMSwitch

Class 4Softswitch

Class 5Softswitch

IMSVoice

IMSMultimedia

First Wave Second Wave

Overlay

ALL

IP

Over-

lay

T

D

M


Obstacles Experienced during the First Wave

Unrealistic requirements and internal resistance• 100% of products to be migrated

• Unwillingness to kill networks/services

• “No spend on legacy!”

• “Not my customer first!”

Monolithic approach to PSTN migration• All services/features or nothing

• All customer segments or nothing

Massive adoption of competitive services• VoBB, Triple Play bundles, mobile-only, Skype, …

Complexity and costs exceeding expectations• Multi-vendor integration, interop test & end-to-end validation

• Inter-working with legacy and IT (including the processes!)


“Mr. Watson, come here!!!”


Drivers for the Second Wave

Rationalizing and speeding-up PSTN replacement• Coupling PSTN migration with Access transformation

• Optimizing VoIP rollout, migration scenarios & costs

• Portfolio & features rationalization (e.g. ISDN BRA)

Competing with Cable, Triple Play and OTT services• Dealing with churn, (fixed) line loss, ARPU loss, …

• Reducing time-to-market for new services

Providing value for money to end-users• Creating and delivering Web 2.0 and Telco 2.0 services

Return-on-Investment on Broadband and IP• Getting Broadband revenues beyond access

• Stimulating (mobile) data traffic

• Enabling new applications on FTTx, GPON and LTE


The Second Wave has Already Started

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Subscribers

TDM voice Softswitch-based VoIP IMS-based VoIP & MM Services

Legacy phase-out

1st Wave

2nd Wave


“How long is she going to stay?”


‘Tipping Points’ for Accelerating Transformation

Maintenance cost increase• EOL/EOS or maintenance contract extensions

• ‘Bricks & Mortar’

New investments required in legacy• Legacy core extension

• Legacy OSS investments

Market pull/push for new services• Competitive voice (bundles) offering

• Rising end-user demand for next-generation services

Service provider specific• No simple common threshold applicable to al carriers or markets

Organizational changes and HR• Converging lines of business requiring network changes

• (Upcoming) shortage of legacy-knowledgeable personnel


[email protected]

www.linkedin.com/in/mjadoul

Special thanks to ([email protected])

www.alcatel-lucent.com

laying the foundation for the second transformation wave (2009)

Technology