© 2017 TM Forum | 1

Orange Polska

transformation

towards software

driven company

Orange Polska Rafał Dziedzic, Director of Technological Transformation Strategy

Sebastian Nowosielski, Virtualization Transformation Strategy Agency Konrad Gawda, Advanced Services Expert

© 2017 TM Forum | 2

66% CAGR mobile*

29% CAGR fixed data**

Almost 50% Convergence

Surge in Internet of Things

Simplicity Security

* Cisco ** analysys mason *** Company’s estimations

and the market is full of opportunities

Customer needs are evolving

traffic in Poland 2014-2019

of streaming in total mobile usage and growing

driven by growing number of connected devices per household

>58% CAGR wearables market*** in Poland 2014-2018

customers appreciate simple solutions

emerges as top customer need

© 2017 TM Forum | 3

Orange Polska Market Strategy

Consumer market: strategy centred around household

Bundled households proposals full-range of services to households

FTTH/VDSL

LTE/3G

Business market: push on quality and new services

Smart connectivity

Smart security

Smart Infrastructure

Smart workspace

Smart collaboration

Customer Experience

© 2017 TM Forum | 4

accompanied by technology transformation

New Customer Journeys

Virtual CPE Home LAN

IoT/Smart Home NG Multimedia

API Smart Energy

SD WAN Orange Dialer

AI/Customer Mobile Connect

Cu

sto

me

r J

ou

rne

y

Tra

nsfo

rma

tio

n

CAPEX/OPEX savings

Mobile traffic growth

Automation of Operations, Auto-scaling

Rapid growth of connected devices (IoT)

All-IP

5G (TBC)

NFV/SDN (On-Demand)

Tec

hn

olo

gy

Tra

nsfo

rma

tio

n Resilient

services

Open for bundling 3-party services

Try-and-buy experience

Digital Online access

High network customization

On-demand instant deployment of End to End services

© 2017 TM Forum | 5

Do we constrain our thinking to „regular telco”?

IT / OTT approach to core telco services

New

Operating

Model

Innovation

towards

IT / OTT

Perfectly sufficient from short- to mid-term perspective

Momentum must not be missed to secure long-term

„We are entering an era when everything and everyone will potentially have a digital identity and be connected by a global network. This will lead to the virtualization of

devices, homes, enterprises and the networks that connect them to the services they consume. This in turn will give rise to a new global-local socio-economic order, where

digital services are offered globally and tailored and delivered locally.” Marcus Weldon, President of Bell Labs, Future X Network, 2016

Telco

services

© 2017 TM Forum | 6

NFV/SDN Program

Strategy

Architecture

Operational Model

Financial Model

Vendor Management

Legal &Regulations

Orange Group communication & cooperation

Team Evolution

Implementation Projects, PoC, trials

Strategic key pillars

Business & new services

Technology transformation

OPL transformation

Orange Group & Global trends

Key success factors

Transversal program structure

Balance between stakeholders

All parts of organization involved (technology, HR, legal, regulations, business, financial)

© 2017 TM Forum | 7

Things to keep in mind

world

current

Incomes – Polish market Incomes – in Group

Experts team Knowledge-base

Orchestration Arch. framework Operational model

Team evolution

Smooth Transition

Secure the Vision

Business Continuity

CHALLENGES

© 2017 TM Forum | 8

Hints for the next steps

Along with advancements, we expect our focus to move towards creating new offers that in the end will address user needs

Offer

User needs

world

current

© 2017 TM Forum | 9

VNF Manager VNF Manager

VNF Manager

OPEX savings and protected & new revenues are main drivers

CAPEX savings – not the key to transformation

CPE radio site LAN

Ma

in a

rea

of

tran

sfo

rmation

Min

ima

l im

pa

ct o

n

Ca

pe

x

Excludes radio spectrum, IT systems and IT infrastructure

Core Network

Convergent

Network

Optical Network

and Fixed Access

Network

CPE

Radio Access

Network

of 2016 OPL CAPEX

30%

of 2016 OPL CAPEX

70%

© 2017 TM Forum | 10

Initial Focus on Customer Care Use-Case

vCPE (B2C) Trial

Expected Benefits

Simplification of network

Scalability

Capex/Opex savings

Customer self care

Personalized services

New services

Internal Customer

Remote configuration and testing

Services New Revenues

“Orange store” try & buy, on-demand security services, Multi-site Home VPN

Customer Care Opex Optimization

internet IP/MPLS Core network

Multi services IP/MPLS Backhaul

BRG

FunBox 3

Network Controller SDN/NFVI Gateway

OpenStack

IPv4/IPv6 Overlay GRE/VxLAN/VPN/etc…

SelfCare applications Orchestrator

© 2017 TM Forum | 11

Zero touch CPE

Friendly User Test with OPL Customer

SD VPN (B2B) Trial

Check market response

Assess Polish market potential

Gain knowledge about consumer value perception

Get and customer’s feedback on new VPN service features

Services New Revenues

Virtual Private Networks

Security VNFs

Site to site connection

Zero touch CPE

On demand options

Self-service portal (order, activate, configure, monitor)

Internet access

Orange orchestrator

Orange SDN controller

NFV POP

local internet

Orange network

local internet

NFV POP

Expected Benefits

Revenue and less churn - better offer

OPEX savings - automated processes

New business models possible

New services’ palette

Shorter time to resolve common problems

Internal Customer

© 2017 TM Forum | 12

Two approaches to NFV

Strategic: define target architecture, masterplan

Bottom-up: driven by current needs

Ensure we meet in

one point by

animating Trials

and Quick Wins;

collect and

distribute feedback

manual

virtualization backup-restore

procedure

target NFV

architecture

automation

© 2017 TM Forum | 13

No agreement between units = blocking point

NGPoPs BC

negative infra. islands

PoCs, trials, deployments

PoCs, trials, deployments?

Agreement between units

cloud pricing model

cloud hw selection

responsible unit selected

Changes in Orange Polska structure made to address this (IT infra. in Network unit)

No agreement between units

© 2017 TM Forum | 14

ECOMP / ONAP evolution

ECOMP ONAP initial

ONAP 1.0

OPEN-O

Open

ECOMP

Initial code published in ONAP was based on OpenECOMP, architecture.

It still evolves.

(since ~2015) April 2017 November 2017 (Jan/Feb 2017)

November 2016

© 2017 TM Forum | 15

Brains for NFV – ONAP example

Design Description, Policies

Monitor Metrics, Events

Execute Inventory,

Orchestration, Control

ONAP install

ONAP maintenance

HEAT file ONAP closed loop is one thing

Installing and maintaining ONAP is another one

• as with any open source: buy Enterprise edition with support (traditional approach for telco)

• or develop and support by yourself

© 2017 TM Forum | 16

Business models are changing

Collect classic and

new vendors, talk

together to find

win-wins

Run RFPs with

vendors offering

new models

© 2017 TM Forum | 17

Take-aways

OTT Momentum must not be missed to secure long-term

Prepare for future user needs

Business models are changing

Fiber deployment is crucial (low latency, high throughput), intelligence can be moved from Customer Premise to the Provider Network

Ensure services quality & availability requirements e.g. geographic redundancy

An initial investment in a few Points of Presence is needed, otherwise it may be difficult to achieve positive business cases for individual network functions or platforms

Focus on OPEX and revenues instead of CAPEX

Strategic and Bottom-up approaches – make them meet

New skills and organizational model

© 2017 TM Forum | 18

Thank you