This action might not be possible to undo. Are you sure you want to continue?
We’re there for you
TeChnologies ThaT help you go furTher
Newtec technologies allow billions of people to connect to the world, their families and each other. You can find our innovations and technologies anywhere. Whether we work for government agencies or private companies, we always see innovation as a way to reduce your costs and optimize your efficiency. Our global experience in multiple markets helps us in achieving our ultimate goal: taking care of your satellite communications while you can focus on your core activities. We’re there for you. Always and everywhere.
Check out our new modem portfolio!
Visit us at SATELLITE 2013 Booth 5037 - March 19-21
Discover more @ http://newproducts.newtec.eu
All articles are available for download at www.connect-world.com
New age charging systems
Do bill me, please!
by Ernest L. Cu, President and CEO, Globe Telecom, Inc.
3 5 7
3 13 25 35
5 15 27 39
7 18 29 42
10 22 32
Overcoming the mobile data traffic challenge The changing face of charging and billing
by Morten Brøgger, CEO MACH
by Dave Labuda, Founder, CEO & CTO, MATRIXX Software
The road to multi-play success How service providers can optimize assets, increase profitability and boost customer satisfaction 10
by Lucas Skoczkowski, CEO, Redknee
Billing as a Service, billing as a Strategy
by Simon Muderack, CEO & Founder, Tribold by Nic Stirk, CEO, SLA Mobile
Product experience: leveraging enterprise product management to enhance the customer experince 13 Direct operator billing - A strategy to mitigate the OTT threat The rise of machines Total Convergence 15 18 22
by David Burks, VP for APAC and MEA, Orga Systems by Louis Hall, CEO, Cerillion Technologies
Customer is king
by Rebecca Copeland
The ‘Power of One’: Increasing customer loyalty with real-time, targeted offers
2 2 IFC 12 21 24 31 34 38 41 IBC OBC
by Yann Chevalier, CEO, Intersec
From the Editor’s desk Imprint
The Subscriber: The Overlooked Variable in the Policy Management and Enforcement Equation 27
by Dr Weiming Li, Vice President & General Manager, Comverse Asia Pacific
Newtec Cartes France Global Mining IT & Communication Summit 2012 MWC Luton Borough Council CTIA NAB ITU Ministry of Ontario BT
Using customer analytics to create new data plans and pricing models
by Rajesh Sharma, President Global Sales and Customer Operations, Astellia
Access technology affecting Billing
Seizing Revenue Opportunities with Fixed Wireless
by Roy Wittert, VP of Sales and Marketing for APAC, Cambium Networks
Managing the new mobile data network The challenge of deploying mobile broadband systems for profit 35
by Erwann Thomassain, Head of Regional Marketing for Asia Pacific, Amdocs
Telecommunications and Cable Convergence: Opportunity Knocks for India and China 39
by Ian Watterson, Vice President & Managing Director (Asia Pacific), CSG International
4G technology is not an evolution, it’s a disruption!
by Michael Lai, CEO, Packet One Networks (Malaysia) Sdn Bhd
The evolution of Charging and Billing in APAC
As the gravity centre of broadband services is shifting from under the mobile operators towards the large OTT (Over The Top) players, and at the same time smart devices continue to generate ever increasing traffic volumes, the impact on the back office systems is devastating. Traditional patched up billing systems cannot cope with the number of transactions and with the varied modes of operating services. Requirements grow in three dimensions all at once – vast scalability is needed, high speed of response for real-time usage monitoring and great agility and flexibility to support a growing range of features and business models. The Asia Pacific region is now seen as leading the world in the mobile data explosion, with the more developed countries in the region demanding greater sophistication, and the emerging large economies (China, India and Indonesia) clamouring for fast scalability (Ernest Cu, President & CEO Globe Telecom). Due to recent regulations and spectrum reclaiming, cable operators in India and China are now experiencing increased competition from OTT IPTV. Their response is to provide multi-device, multi-technology, multi-service packages that are designed to encourage loyalty. These multi-play services need to be supported by combined management systems. Unified billing has to go further than a single bill. To win customers, the merging of ordering, installing and charging for a wide range of services must appear easy and simple. This is not just about streamlining support systems to save costs – it is a basic customer requirement. True convergence of the service catalogue, unified delivery processes and integrated user interaction portals are needed across the different access technologies, devices and applications, and a consistent experience from order to service activation. Not only must the system be converged, but also the operator’s whole organisation, its procedures and its culture. Integrated subscriber management is now in itself a leading edge service that helps operators win in this competitive climate. In parallel, traditional post-pay services are migrating to real-time, not for a payment method, but for enhanced session monitoring and for immediate usage and charging information. Real-time billing is no longer an option - it is the eye into everyday business trends and user behaviour. It is now required for all subscribers wishing to control their spending. The fear of bill-shock remains the main barriers to uptake of mobile data services, roaming or not. By providing clear information of consumption and charges, users will not switch off data services and would be willing to spend more (Morten Brøgger, MACH) in increments that are more acceptable to them. Customer spending patterns, user behaviour trends and real-time reports are the operators’ great asset. It is important to merge all sources of user data to enable full analytics and appreciate the customer experience. Real-time monitoring generates ‘Big Data’ that needs multi-dimensional analysis to filter and convert it into useful information, but the rewards are high: operators can provide well-tuned packages to specific subscriber segments, detect fraud promptly and understand demand shifts in further detail. With dynamic analytics, on-the-spot offers can be presented to users, which can stimulate usage, revive inactive accounts and prevent ‘at risk’ customers from churning (Yann Chevalier, CEO, Intersec). Mobile Broadband support systems will soon need to manage millions of small cells that will be installed in order to increase air bandwidth capacity (Erwann Thomassain, Head of Regional Marketing for Asia Pacific, Amdocs). Such networks, whether using Fixed WiFi Access nodes or LTE microcells, need planning tools to optimise locating nodes and reduce interference. Like billing, network management is also gearing up to deal with versatility, scalability and real-time. The new billing system has further scope with more opportunities to operators. They may find new sources of revenues in offering Billing-as-a-Service in twosided models, addressing OTT and vertical markets upstream and subscribers and enterprises downstream (Nic Stirk, CEO, SLA Mobile). M2M (Machine to Machine) services provide a growth area that needs to be supported by real-time billing. Moreover, M2M solutions are now offered by non-Telecom industries like utilities, automotive and transportation. They need powerful real-time billing solutions, and the well-proven Telecom system is ideal for that (David Burks, VP for APAC, Orga Systems).
Rebecca Copeland, Executive Content Editor, Connect-World email@example.com
Editor-in-Chief: Fredric J. Morris firstname.lastname@example.org Publisher: David Nunes email@example.com Editorial Department: firstname.lastname@example.org Connect-World is published under licence by INFOCOMMS MEDIA LTD email: email@example.com URL: www.connect-world.com Production Department: firstname.lastname@example.org Sales Department: email@example.com Administration Department: firstname.lastname@example.org
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronical, mechanical, photocopying, recording or otherwise, without prior permission from the publishers. The content of this publication is-based on best knowledge and information available at the time of publication. No responsibility for any injury, death, loss, damage or delay, however caused, resulting from the use of the material can be accepted by the publishers or others associated with its preparation. The publishers neither accept responsibility for, nor necessarily agree with, the views expressed by contributors.
Asia-Pacific III 2012
Latency. wrapped around customer centricity. or at the very least. Ernest earned international accolade as Best CEO of the Year by Frost & Sullivan Asia Pacific. inherent to this process. for example. 2009. the topic at hand . and financial aspects of running businesses in the electronic publishing and database management industries. Globe is in the midst of a paradigm transformation from regular public utility to service-centric company. bills represent debt. simplify payment. Globe Telecom. broadband. and ultimately serve to pull hard-earned money from one’s pocket. and data usage. In 2010. Cu is President and Chief Executive Officer of Globe Telecom. He tirelessly advocates this mindset across the organization to stimulate better financial and operating performance. especially for the post-paid segment. separate bills are sent with separate due dates calling for separate modes of payment.is one that resonates with customers the most. Cu. tardiness. This year. it happens often enough that a bill shocks the senses out of its recipient.L. please! by Ernest L. Ernest Cu became the President and Chief Executive Officer of Globe Telecom on April 2. Kellogg Graduate School of Management. you may get a shock when spending far exceeds expectations. President and CEO. In mobile telephony. He was also voted as one of the Most Trusted Filipinos in a poll conducted by Readers Digest. the most recent of which is his post as President and CEO of SPi Technologies. we have been driving holistic transformation across the company. Today. He has significant experience in the technological. with figures unbelievably higher than expected. He joined Globe as Deputy CEO in October 2008. For the last three years. “real-timeliness of charging and billing is excellent credit control”. Ernest was awarded Ernst & Young ICT Entrepreneur of the Year. As real as purchase and payment are in the world of commerce. marketing.A. driven by Ernest’s primary advocacy of Customer-First. Generally people loathe getting their bills. Northwestern University. A realtime convergent billing system not only combines all charged services in one bill. In fact. The onus is on the collecting entity to evolve billing and charging systems to encourage. With many more real-time features. No one likes to be billed. Ernest brings with him over two decades of general management and business development experience spanning multi-country operations. from the J. Ernest has a Bachelor of Science in Industrial Management Engineering from De La Salle University in Manila.New age charging systems Do bill me. he was adjudged best CEO by Finance Asia. He was moreover conferred the International Association of Business Communicators (IABC) CEO EXCEL award for communication excellence in telecoms and IT. billing emerges as an area of opportunity. Inc. helping to strengthen project executions and day-to-day operations. In 2003. A single bill is easier with fewer transactions and greener with fewer printed bills. As if to rub salt in a debtor’s wounds. Running in real-time Our old post-paid billing system applies a post-process to assign rates and to charge customers accordingly for their calls. and an M. and data connection services. text messages. but also indicate spending against budgets or credit in a timely fashion. It is especially irritating when you get several bills from the same company. or charging comes late and confuses… ‘Did I really buy this?!’… For a customer maintaining more than one account with the same merchant. In black and white.B. As a matter-of-fact. serving consumers and businesses through a full communications suite of mobile. Inc. so is its billing component.the evolution of charging and billing . we share a few salient points of our own company’s experience in the billing arena that can serve as reliable guide posts for any other firm’s intention to evolve the way they charge and bill. These are common pain points in today’s billing environment inaccuracy. customers may actually like it! Ernest L. runs the risk of breached credit limits since our system will only Asia-Pacific III 2012 n 3 . Worse still. and ultimately to deliver superior customer experience that differentiates Globe from the competition. In this article. and separate billing with the same merchant. Globe Telecom is an 84-year-old leading telecommunications company in the Philippines. The way we charge and bill such customers can radically improve their overall experience. fixed.
where a customer will assert that. and convergent billing is a promising opportunity. The billing system we have designed and are currently implementing runs in realtime. especially for telecommunication companies that are focused on customers and are determined to win the game. This presents a huge difference. these services are billed separately. or shall we say. Convergent billing is the capability to render a single bill for all services offered by a single service or product provider. after the fact. We strongly believe that the impact of convergent billing will be highly positive. It brings accurate accounting and forecast for both parties. The timeliness. and sweeping budget control with the comprehensive view of multiple payments due to one entity. We have been using separate billing systems for mobile and broadband customers. many value-add features for realtime convergent billing can somehow offer soothing comfort. Convergent and green Customers can subscribe to multiple services offered by the same company with independent fees. Unfortunately. for instance. there are charges for a mobile phone service as there would be for internet-at-home. from the customer’s point-ofview. consuming less paper is obviously eco-friendly. In our current billing system.‘Do bill me. had timely notice been served. please!’ … Well. our customer faces a billed amount beyond credit limit. From our perspective. previously lacking in a post-process system. This tends to result in what is notoriously known as “bill shock”. Billing and charging systems of old only exacerbate the all too commonly unpopular grudge against receiving bills. consumers’ clamour will change from . above what he or she is willing to pay. as billing and charging systems evolve. it is cumbersome and not environmentally friendly for our customers to make multiple transactions in order to settle these bills with us. For our customers.‘Blast this bill!’ to . Plus. Real-time convergent billing is undoubtedly a strategically-sound route to take. Again. real-timeliness of charging and billing is excellent credit control for the buyer and for the seller. Of course. l 4 n Asia-Pacific III 2012 . With such valuable current information. it means no more “bill shock” because they will get alerts the moment they breach decided credit limits. maybe not exactly. one that can dramatically improve and differentiate customer experience. a single settlement spells utmost convenience and a holistic view of spend surfaces as an outstanding benefit. consumption could have been correspondingly curbed. ushering in a new sense of ease and comfort. more than budgeted. Soon enough perhaps.New age charging systems recognize that a subscriber has already amassed call or text messaging charges beyond the assigned credit limit. There is also tremendous opportunity to improve cost management owing to the production and delivery of one bill instead of two. Instead. Customers can also access their most upto-date consumption data so they can plan future spend wisely. Such practice gives customers the convenience of one-time settlement for several accounts. better collection and cash flow can be expected. but you get the picture. However. they can decide to personalize their post-paid plan to better suit actual usage.
Here. Founder. As geographically dispersed as the APAC region is. use services such as mobile video and apps which require higher bandwidth. about 40% of it will be generated in APAC. It follows that APAC has the highest growth forecast for data traffic in the world. wherever they are. Dave Labuda holds Bachelors and Masters Degrees in Computer Engineering from Case Western Reserve University and has 11 patents issued with several more pending. Of the 7. thus needing fundamental scaling up of real-time billing systems. CSPs need to move beyond flat-rate. The developing economies (such as India and Indonesia) are facing massive increase of smart device penetration with low ARPU. there are very high penetration rates of Smartphones and tablets. The developed countries in APAC lead the world in broadband services and they require smart billing solutions and higher sophistication. he led the architectural design and product strategy of the company. CEO & CTO. the ‘thumb tribes’ of Hong Kong’s Mass Transit system have widened out into popular culture: wherever you look. it shares at least one thing in common with all other global markets: a spike in the uptake of new devices. he successfully sold the company to Oracle in 2006. Dave also served as a board member for Aria Systems. He started his career at Sun Microsystems working for eight years in the UNIX Operating Systems group. Trying to build all that into old Billing will not work . Hong Kong and Japan. they want their mobile services to deliver instant interaction and gratification whatever they are doing. High device penetration. making it a global focus for innovative approaches to monetizing data traffic. relatively high Average Revenue Per User (ARPU) and a highly competitive market.a trend that cannot be sustained. As CTO. Businesses and consumers are embracing Smartphones and tablets at a voracious pace. The result is a staggering increase in network traffic without a corresponding increase in revenue . Asia-Pacific III 2012 n 5 .New age charging systems Overcoming the mobile data traffic challenge by Dave Labuda. This has created a ‘Supermobile’ generation of users who use their devices as a ‘musthave’ companion to their lifestyles. or unlimited data usage plans. At work. After stepping into the CEO role in 2004. Legacy billing cannot cope with new requirements. 3G and other mobile broadband technologies are commonplace. high subscriber numbers In developed APAC markets. Like everything else in their life. creating the first real-time billing and revenue management solution for Internet and communications service providers. Dave Labuda has co-founded Portal Software in 1994. everyone’s using their mobile device for something. as they are becoming less profitable. The Asia-Pacific (APAC) market is viewed as a bellwether in terms of the adoption of new technologies. such as Singapore. Most people now own more than one device.a new approach is required.000 annual Petabytes of mobile traffic that Cisco Systems predicts in recent research . new mobile services and new patterns of consumer behaviour. at play or at rest. This new breed of billing systems must also cater for ecosystems and varied business models to accommodate OTT as well as Telcos. providing architectural vision for the new organization and acting as a key advisor on several strategic acquisitions. and rely on the devices as ‘constant companions’ during their everyday life. Dave then served as CTO of Oracle’s Communications Global Business Unit until February 2008. shopping. including analytics for real-time customer insights.by 2015. Places such as Singapore and Hong Kong are driving the uptake of mobile broadband faster than anywhere else. This trend has led to an explosion in the amount of mobile broadband data traffic that Communications Service Providers (CSPs) must handle. MATRIXX Software Billing systems need great overhauling.
Next. the ideal solution must offer visibility and control over consumption to both the CSP and the mobile subscriber. Trying to build new functionality and scalability into legacy systems is akin to increasing the size of a car’s fuel tank and expecting greater fuel economy . the rapid increase in Smartphone penetration. cost effective charging with new pricing strategies and business models will enable CSPs to meet the challenges of the new mobile broadband era. personalized pricing and bundling of data services based on real-time information from the charging system. CSPs have not had cost-effective options to upgrade their billing systems to handle the new business models that come with faster networks and new devices. efficient set of low cost hardware that is ‘off the shelf’ and easy to maintain. CSPs can build insight around data consumption patterns. but CSPs risk unsatisfied customers unless new business models are developed. personalization and real-time insight and by looking for solutions that are designed to efficiently scale for 4G networks and beyond. Even prepaid systems that handle relatively simple pricing models. Building strategies for the new mobile era Research shows that subscribers who are more informed about what they are purchasing beforehand are more likely to trust their CSP and make purchases in additional to their usual spend . it has to be real-time. Providing accurate balance information and spending controls also cuts the number of calls to customer support-centres that originate through billing inquiries.it’s costly and based on a false premise. due to the cost sensitivity of most consumers. LTE has the power to bring mobile multimedia services to life. third party providers. The effect of LTE on the market Rollout of Long Term Evolution (LTE) across APAC in developed markets will magnify the growth in data traffic volumes and place further pressure on CSPs to find a solution to the ‘data crunch’. Finally . for example. but can’t track or charge effectively for data usage in real-time. Imagine a subscriber who is limited to 2GB of data for a fixed price per month. New services. Stuck in a systems rut So why do CSPs find themselves in this position? It’s largely because their current billing systems have failed to keep up with the market. Innovative pricing and packaging is not top priority . CSPs can better develop and target personalized offers and discounts.nor can they handle the more sophisticated pricing and charging models that come with 3G and 4G services. The system must not experience any degradation in performance and latency or require additional capacity as charging and billing models become more sophisticated. and it’s clear that CSPs need to be able to process a vast number of events in parallel. This adds pressure on CSPs to make their existing billing and charging systems scale to meet the increase in billing records and ensure consumption is tightly tracked and charged for in realtime. efficiency and operational cost structures. This must be accomplished on a small. Using a 3G network to stream video to the subscriber would offer them a choice of watching several movies. and advertisers bring new business models and marketing strategies. this type of functionality is central to providing an outstanding and compelling experience. the underlying trend is the same. That way. and that a billable event can be something as small as beginning to type a word into Google search. applications. by providing internal visibility and control. not higher usage. and new mobile plans created for subscribers. l 6 n Asia-Pacific III 2012 . So. and in areas such as Hong Kong. and primarily prepaid. Consider that there are often tens of millions of subscribers on a network. the relationship with Over The Top (OTT) providers of content could be better monetized. This would provide a path to driving stable revenue growth. This can be accelerated if CSPs build more creative. especially under high traffic volumes. such as HD video.it must provide both functional agility and reliable performance. Information about the average spend of the subscriber. Subscribers can also set their own account preferences through integrated charging and policy management capabilities. CSPs can overcome data volume challenges by monetizing their networks through creative pricing.New age charging systems In developed APAC markets. although APAC has many markets which are developing at different rates. is what driving data traffic volumes on 3G networks. With more businesses and families sharing plans. By contrast. CSPs could create more targeted packages around services such as video content. and put a price on it. developing markets such as Indonesia and India have very large populations and lower ARPU. instead of OTT players ‘riding the network for free’ and relegating the CSP to a ‘dumb pipe. Packages should be shareable across multiple devices and not necessarily byte-based.’ the CSP could gain additional revenue from common applications such as YouTube. India is just introducing 3G. such of plans are already starting to take hold. offering Quality of Service (QoS) pricing for business and power users or for specific services. CSPs need a charging solution that easily fits into their existing systems while supporting these business models. are not capable of keeping up with growing data traffic . Additionally. social networking and shopping and pair them with the right access speeds. help build a picture for CSPs to offer unique offers to their subscribers. This kind of bad consumer experience is the antithesis of what CSPs want to provide with LTE. Combining high-performance. Whether providing charging for prepaid or post-paid accounts.their challenges are based on pure scalability. but has hundreds of millions of subscribers are upgrading to 3G devices. Evolving the back office for success So what does the ideal solution look like? First. it must deliver a whole new level of scalability. and yet the requirement is for up to 100 times that. Pricing is also much more granular. bill shock and service reconnection calls. If sophisticated analytics are introduced. The move from 2G to 3G results in a 1030 times increase in data traffic per device. allowances and devices. The cost of scaling existing systems is unaffordable in an environment with razorthin margins. Current systems can only process hundreds or a thousand transactions per second. to create a better customer experience. the solution to this needs to include creative ways to break out of the flat-rate tariff model while creating mobile plans that make sense to the subscriber.about 15% more. For example. Here. whereas with LTE. Legacy systems were designed for Voice. their allowance could literally be sapped in minutes. Spotify or Facebook browsing. By tracking subscriber trends in real-time. their credit worthiness and historical services usage.
roaming subscribers to select special tariff for a favourite social media service . service aware charging. In this fastmoving. product management. as well as for Sunrise’s entire enterprise sales organisation. WiFI). location or user preference. he was Chief Commercial Officer. the APAC region accounts for nearly half of all mobile connections globally. and even on different network connectivity options (3G. Previously. Complex pricing structures and fear of bill-shock remain the main barriers to mobile data uptake. he held the position of VP. In this role. through an impressive combination of investment and innovation”. What is needed is microsegmentation. Morten Brøgger was appointed Chief Executive Officer of MACH on 1st April 2011. He also completed a four month MBA program at the University of California. Sales at the Scandinavian systems integrator Merkantildata. LTE.mobile phones. Transparent pricing options have become critical to a new generation of savvy consumers who expect to pay for exactly what they consume and nothing more. In today’s age of the superphone. Morten originally joined the organisation as Chief Operating Officer in November 2006 with global responsibility for client support. Additionally. Traditional billing models is simply untenable and cannot cope with the range of new business models.i. People in all corners of the world have taken to owning multiple devices that would be categorised as mobile connections .e. a multitude of apps and video streaming capabilities come as standard. the onus is on operators to produce top of the range customer services.New age charging systems The changing face of charging and billing by Morten Brøgger. high speed internet. responsible for the company’s global account management and marketing operations. including product marketing and marketing communications. that allows. marketing and product management activities for the Fixnet division. Figures from the GSMA and Machina Research support this and demonstrate that the growth of connected devices is booming in Asia Pacific. The smartphone revolution has fundamentally changed consumer behaviour. tablets. with true real-time spending control and with the unprecedented volumes of events to monitor.but the GSMA points to the Asia Pacific region as the driving force behind this explosive growth. GSMA Chief Government and Regulatory Affairs Officer Tom Phillips stated. Prior to joining MACH. The Asia Pacific region will also have the highest roaming revenue growth rate in the coming years. Morten held the position of Chief Operating Officer of the Fixnet division at Sunrise in Switzerland. The region is expected to be the biggest market by 2020 with total over 11 billion connected devices. According to their recent Asia Pacific Mobile Observatory 2011 report. Prior to this. “China alone currently has 940 million total mobile connections. he was responsible for all sales. the ability to offer flexibility in price plans and tariffs dependent on consumption patterns. marketing and pre-sales. Before this. Just a few years ago. according to Informa Telecoms & Media. Los Angeles (UCLA). and within Asia-Pacific III 2012 n 7 . a top of the range smartphone was one that offered integrated email. far outstripping Europe and North America. has become paramount. “Asia Pacific is one of the world’s fastest-growing mobile markets. connected notebooks and more . CEO MACH The region’s impressive growth of superphones and multi-device users is set to continue. customer centric landscape. for example. and differential pricing by speed instead of megabytes is just as incomprehensible to customers. Mobile users now expect to be charged only for the services they use in a consumer friendly and transparent manner and in real-time. exceeding the total number of connections in Europe and the US combined” . Morten has an MSE in International Marketing Management from the Aarhus Business School. he was Senior Vice President at TDC Business responsible for all product management and marketing activities. based on enhanced analytics. The region’s total data roaming revenue (including SMS) is expected to grow at a CAGR of 19% between 2010 and 2015 .
but also achieve a more granular view of subscriber roaming behaviour. If data roaming is to be a success. more scalability and faster response times. In addition. Continuing progression customer demands and meeting Customer experience innovation in terms of support for application-based and duration based ‘data packages’. MNOs have been successful in the push to encourage data usage on their networks. A further evolution lies in providing end users with greater visibility and control of the amount of data they are consuming. regardless of issues such as network discovery or CAMEL3 support. MNOs need to be able to understand their customers’ requirements and usage patterns. resulting in fixed-rate or flat-rate tariff plans. yet there is a need to maintain consistency in the user experience. resulting in reduced revenue potential. from a customer perspective this merely replaces one quite arbitrary basis for charging with another one. as the market is adapting to micro-segmentation and targeted tariff strategies. accounting for a 47 per cent market share and far outstripping Europe (19.4 per cent). Operators are also increasingly turning to offload technologies such as WiFi and small cells to prevent overloading of their network capacity. MNOs not only need to reduce their costs. online charging and policy control mitigate against traditional billing system models. subscription type. is the catalyst that can drive above average growth in usage and revenue as well as reduce subscriber churn rates. increased usage does not necessarily deliver linear revenue growth for MNOs. More granular business intelligence techniques are required.growth for operators? We have witnessed unprecedented mobile data usage growth in recent years. and significant investment is needed to ensure the billing system is able to fulfil its purpose. high profile mobile applications and a shift in usage. The most significant of these insights will be finding ways to enhance the enduser experience. more than ever. fuelled by smartphone and tablet device deployments and a greater variety of feature-rich content available for such devices. Monetization of mobile data The effective monetization of data services must be addressed. cost management can effectively be carried out by the subscriber via self-care applications. provides insights into expected MNO priorities during 2012. New developments in terms of customer experience management. there has been a loss of control over the end user relationship.in this way subscribers are kept abreast of how much they are spending almost as they spend it in near real-time. remains a significant barrier to the uptake of mobile data services.1 per cent) and North America (9.New age charging systems that. user defined spend limits. the combination of innovative mobile apps. then it is important to define exactly what that pack gives them. when it expires and also to provide pricing transparency.the current overburdening of networks being the most notable example. This shift within the mobile industry makes traditional billing models and systems untenable. Informa research. Now. which is increasingly being forged at the application or handset level. Providing a compelling service offering. It is important that service packs encompass flexibility and also provide an environment that offers ease of use and familiarity to the subscriber. to encourage usage. allowing them to self-provision services. the challenge in monetizing mobile data is further complicated. For example. published in 20111 . Online subscriber communication extends in other ways. device or access type. is the idea of more consumer empowerment providing the end-customer with the flexibility to tailor services as his/her needs change. While this trend is encouraging. while enabling the level of differentiation that modern consumers require. Helped by new handset launches. By introducing a pre-paid for post-paid (payas. when they are roaming. One obvious opportunity to encourage mobile data usage lies with alleviating bill shock via the provision of alerts when a certain data threshold is reached. Cost. is how to deliver seamless handover as well as maintain control and monitor subscriber usage off-net in the same way they do for on-net data traffic. Flat-rate data tariffs have led to increasing network congestion. if a subscriber wishes to use a 24 hour ‘Email Pack’. A tariff approach that aligns tariff with the type of service being provided would provide more transparency for a customer. almost 5. receive advice of charge notifications and use multiple payment options for re-charge. Originally. and advanced self-care facilities can be integrated into a common service offering. combined with flexible pricing plan options. Additionally. While new tariff structures based on measures of speed. while the cost of service provisioning has become disassociated from accurate revenue models. operators are under pressure to develop online charging systems with more features. along with associated complex pricing structures. the results have not been without unintended sideeffects . by simply removing the fear of bill-shock. The challenge for operators offloading traffic onto Wi-Fi. and respond with innovative and simplified service plans. However. This is the major focus for MNOs in every region.you-go) approach to roaming. rather than volume are being introduced. Subscribers continue to find ways to access data services outside of the MNO’s network environment.6 billion mobile connected devices. Such microsegmentation could be as granular as supporting tariffs that allow roaming subscribers to select specific data rates on particular social network sites that they use more intensively than others. more flexibility. The ‘all-you-can-eat’ model for data consumption is unsustainable and operators will inevitably move towards tiered pricing. In a roaming situation. new pricing expectations and the lower price points of feature-rich smartphones have combined to change user behaviour irreversibly. Such approaches are designed to enhance consumer confidence that the risk of bill shock has been removed . Providing such services is not a simple or quick task. Service pack innovation delivers part of the equation but can be used in conjunction with 8 n Asia-Pacific III 2012 . MNOs opted for simple mobile data pricing strategies to encourage take-up of data services. enabling mobile data services regardless of location. Mobile data . monitor data usage. Consumer satisfaction Central to changing how operators launch and charge for services. with concerns about ‘Bill Shock’ preventing many users from switching on data services. MACHs’ own research indicates that an additional US$900 million global market could be created in mobile data roaming. The challenges in adapting to evolving user behaviour are also different between domestic and roaming markets.
The idea of user-defined policies is related to the need for self-service capabilities. obviously within broader limits defined by the MNO. targeted promotions for which accurate and timely information about individual subscribers is vital.com/4988/westerneuropean-roaming-set-to-be-hit-hard-by-roamingregulation-generating-49-less-revenues-thanthe-asia-pacific-region-by-2016-says-paul-merry-senior-analyst-informa-telecoms-and-media/ II Asia-Pacific III 2012 n 9 . more flexibility. http://blogs.2012 I GSMA: Mobile Health Will Be a Major Driver of the Connected Life with a Market Opportunity in Asia Pacific of US$7 Billion by 2017 http://www. combined with real-time policy to monitor volume and type of usage and ensure bill-shock prevention. with real-time. Online charging and real-time policy management can be combined with the application of service aware charging. Selfcare capabilities are also opportunities for the MNO to engage in interactive subscriber marketing. all delivered in a highly scalable charging and billing environment. This calls for new features. In conclusion Requirements for the continued evolution of next-generation charging models comprise a range of elements. consistency of experience and pricing transparency. this might be a set of policies defined by the telecoms manager of an enterprise in agreement with the MNOs’ enterprise sales team. To enhance the customer experience the provision of seamless handover between on-net and off-net (Wi-Fi) activity ensures no service discontinuity and should also enhance the potential for revenue share options between MNOs and Wi-Fi service providers (WISPs). MNOs need to evolve their revenue management infrastructure to support increasing complexity in an increasingly real-time environment. l 1 Informa Industry Outlook . including an increasing use of online charging to ensure real-time control of spend. and lower response times. From a customer perspective the need is for ease of use. The time has come for the charging models of old to evolve and adapt to the changing face of the mobile telecommunications industry. allowing users to define custom policy controls to suit their requirements.New age charging systems other elements to help stimulate mobile data usage.informatandm. as well as helping them to reduce operator costs.com/newsroom/asia-pacific-willdominate-the-connected-device-market-fuelled-byexplosive-growth-in-china-says-gsma/ Informa Telecoms and Media: Asia Pacific will have the highest roaming revenue growth rate in next few years. One such area is the need for nonarbitrary policy control. an important element to help put the customer in charge of their own services. Such requirements render traditional billing models and the systems that support them untenable. In the case of enterprise users.gsma. personalised. to set pricing based on a particular type of service or type of content.
Multi-play capability is intended to provide synergies and greater economies of scope. with pre-paid convenience enhancing the traditionally postpaid service. each channel will enhance all of the other channels. he gives you a different menu. Costs should also be tracked. In short. No one channel should operate alone. and is a member of the Dean’s Development Council for the Faculty of Engineering at the University of Waterloo. Lucas has a Bachelor of Science in Electrical Engineering from the University of Waterloo. Creating a seamless user experience One of the most important aspects of infrastructure agility is the ability to support the broadest range of service delivery possible. Without a unified billing platform that cuts across pre-paid and post-paid services. service providers have pulled together various systems and solutions into their business and operational support systems (BSS/OSS). Prior to Redknee. It provides a seamless. the wisdom of having combined delivery options becomes more apparent. With a unified system. CEO. entire telecom departments have evolved working independently from each other. If efficiently coordinated and integrated. Lucas is responsible for strategic planning and execution. Because of these separate. Greater inter-channel communication comes from integration. Trying to do that with the various parts of legacy systems will not work. As strange as it sounds. service providers who cannot integrate their multiple billing and reporting platforms are limited in what they can offer to customers.New age charging systems The road to multi-play success How service providers can optimize assets. to deliver relevant offers and to create a broad. specific to your payment method. Conversely. operators are left to promote each channel individually. The penetration of smart phones continues to see rapid growth. Depending on your answer. profitability and business and customer growth. the host asks whether you intend to pay cash or credit. Such capabilities also allow Telcos to act as advertising aggregators. Lucas has received the Ernst & Young Entrepreneur of the Year Award and the Top 40-Under-40 Award for Canada. Consider this analogy: upon walking into a restaurant. thus reducing cost. It is like a restaurant offering a different menu depending on the chosen means of payment. transparent and controllable service 10 n Asia-Pacific III 2012 . a communications software company created in 1999 that provides business-critical billing and charging software and solutions for communications service providers around the world. multiple applications for billing and customer care that were never designed to integrate efficiently collect in service providers’ back offices. Lucas serves on the Board of Directors for Redknee and 20-20 Technologies. the virtues of ‘real-time convergence’ are compelling. adding profitability. and overall organizational performance. Lucas Skoczkowski is the CEO of Redknee. IPTV and fixed voice. that’s precisely what most telecom companies do. the world’s leading software developer of interior design and manufacturing software. With this growth. usually to solve a very specific problem or enable a very specific service. high-speed Internet. coherent bundle of services that can be offered to all customers. the ability to be agile and responsive. carriers can combine data from all sources and gain deeper customer insight that allows proposing enticing offers. allowing service providers to take advantage of lower marginal costs. Without that capability. Due to his exceptional leadership. since ARPU figures alone may be deceiving. including financial performance. increase profitability and boost customer satisfaction by Lucas Skoczkowski. GFK Retail Asia reported that smart phone adoption grew in South East Asia by 62 per cent in Q2 2012. The whole system should be now built for real-time. siloed systems. during which Redknee has consistently met and exceeded its goals. As a result. Real-time accounting can also discover fraud and revenue leaks immediately. these companies are left to offer customers a different set of services depending on their payment entry point. For instance. Redknee Offering multi-play necessitates integration of separate channels under one system. A multi-play service provider’s business often consists of four channels: mobile. Over the years. Lucas worked at Nortel Networks and Clearnet in various roles of Product Management. sales. share useful customer and market intelligence. instead of waiting for month end billing. Lucas is driving the development of Redknee’s product portfolio. to cross-sell services.
iTSCOM sees Japan’s dynamic cable industry as another route where it can develop new revenue streams. all accessed via the cloud. One requirement that iTSCOM needed was a solution that provided the flexibility to set up multiple types of services. iTSCOM can personalize each subscriber’s experience and differentiate it from its competitors through new innovative services and real-time cross-service promotions and bundles that it wants to deliver. Tracking profitability. This is especially important as content partnerships continue to grow and the service provider is leveraged as the advertising channel. Its legacy solution was unable to support iTSCOM’s aspirations for the types of services and offerings it wanted to launch to the market. iTSCOM’s investment in a next generation billing and customer care solution also needed to have the scalability and flexibility to support its aspirations to launch an ASP business model. Service providers need to have a highly granular. Unless you can drill down to the fine-grained costs. Would you like to try one for the day/week for only US$5?” Customer self-care Subscriber self-care is both a low-cost method of delivering support and a way for the customer to feel like he is truly in control. If billing systems and reporting systems are not integrated. However.as well as revenue. and offer robust Billing and CRM system capabilities to companies that otherwise may not have the resources to invest in themselves. One of its key objectives was to attract and retain customers with new offerings. iTSCOM sees a market opportunity to consolidate this market by taking advantage of cloud-based ASP (Application Service Provider) service model.New age charging systems to your customers. iTSCOM’s parent company signalled that wanted to expand into new areas such as security and financial services and launch Wi-Fi services in highly populated areas. The key is remaining contextually relevant: having the ability to send offers when they matter. l Asia-Pacific III 2012 n 11 . Know your customer Where great analytics leads to better products and more useful customer segmentation. Therefore.000 customers. Having a payments agnostic billing system would allow the service to continue through a pre-paid top-up or ‘turbo button’ that can be activated by the subscriber. renewing your tools and systems is the first step. Operating in one of the most active markets in the world. profitability per user is more effective than ARPU in measuring a multi-play service provider’s performance. drive customer acquisition and retention and support new revenue streams. With such a converged billing solution. the next points of business leverage are personalization and cross-channel promotions. With the right billing system in place. and an immediate new revenue stream for the service provider. subscriber-level view that looks at costs . while allowing service providers to react faster to market events and customer needs. operators can achieve better economies of scale. iTSCOM will be able to extend the new billing and CRM (Customer Relationship Management) capabilities beyond its cable company into these other business units and increase its efficiencies as well as provide a Tier 1 experience for its customers across the business. we conducted customer study and found that moving post-paid subscribers to a real-time environment significantly reduced revenue leaks. it is difficult to fully explore customer data across the organization. In this survey. a better customer experience. in addition to other next generation services. it decided it needed a billing and customer care solution that had the ability to consolidate all of the disparate systems to deliver a Tier 1 experience for its customers. Convergence is also necessary when supporting rewards or loyalty programs as well as increasing your network and services visibility and allowing you to feed intelligence into your product design and customer acquisition/retention activities. The power of convergence If you truly want to transform you company into a marketing machine and differentiate yourself from your competitors. Therefore. You may be able to create highlevel reports by market or service channel. With this. based in Tokyo. language and preferences . For example. In fact. it needed to ensure that its billing solution was scalable and agile to fit these needs. not just revenue Service providers consistently use ARPU as a measure of their business performance. they often do not have enough insight into the actual costs associated with individual users. Using a cloud-based solution. In closing. 90% of these companies have less than 100. strong competition and the high demand for advanced devices and the services they enable. you may not discover that a customer generating US$200 per month is actually costing you US$250 per month in customer care calls. and provide a more meaningful and responsive user experience. broadband and digital telephony services. Service providers benefit as well. elevate its multi-play cable service and the future support of its parent company’s multiple business interests ﹣ all on a single solution. from provisioning and account activation to real-time charging. iTSCOM saw the need to revise its business strategy to get ahead of these quickly changing dynamics. if you reach the bandwidth cap on your post-paid mobile Internet service. Average revenue figures can be useful but deceiving. but into the future. what multi-play operators need to understand is that significant benefits can be achieved when supporting converged service offerings. with its full suite of capabilities. Marketing outreach needs to be sensitive to the subscriber’s channel. service providers such as iTSCOM always need to be thinking about how it can grow new revenue streams. But to make this happen.such as the desire to opt-in and receive outbound messages about specific services and content. and the ability to support new services and technologies not only for today. your service is cut off or throttled. Customers appreciate fast activation. new services. it could then provide true value-add and turnkey ease of the entire billing process to its future business interests. While most multi-play service providers are good at understanding usage patterns. customer care and invoicing. operators need to address their business support systems to ensure they have the right tools in place. In addition. Adding prepaid convenience to a traditionally post-paid service gives the subscriber the service and the quality they want. billing. Fraud that would not have been identified until the month end bill cycle was flagged immediately with a real time system in place. You must be an agile marketer to support messages such as. The iTSCOM story iTSCOM is a leading Japanese provider of cable TV. Therefore. but it will be cumbersome and time consuming to dig down and analyze a particular customer’s usage across multiple channels. “I see that you’ve opened up your browser but don’t have a data plan. there are around 350 cable service companies in Japan. to review their account balance and easily sign up for new services without having to go through a customer care agent. service providers were able to reduce their bad debt losses and collection expenses from between 5-7% to 1-2% by identifying leaks more quickly. Being relevant often means being realtime as well. increased business intelligence. With the tremendous growth in Japan of broadband. Revenue is only part of the story. Currently.
EXHIBITION & CONFERENCE SMART SOluTIONS FOR SECuRITy.com an event by Register now I n di a . c o u n t r y g u e st o f h o n o u r . IDENTIFICATION & MOBIlITy Halls 3 & 4 Paris Nord Villepinte Exhibition Center France 6-8 NOVEMBER 2012 430 EXHIBITORS 20. PAyMENT.cartes.000 ATTENDEES 200 SPEAKERS www.
To stay competitive and deliver against customer expectations. from purchase. to delivery. lowers costs.not Asia-Pacific III 2012 n 13 . Wholesale and Cable operations in structuring complex IT transformation programs during ten years with Accenture. Ultimately. However. Tribold Customer experience is where Service Provider’s competitive edge lies. and the quality and consistency of the use of those products is what keeps the customer loyal. At the same time. monitored and refreshed. It may be hard to quantify loses from sub-optimal product experience but the benefits are clear . This experience is generated largely by the user’s interaction with the ‘product’ throughout its life cycle. streamlines offers. The Communication Service Provider (CSP) industry is currently awash with talk about the importance of optimising the customer experience. Prior to co-founding Tribold.Billing as a Service. the product portfolio must be managed. there is a vital dependency on optimising the product experience. changed and launched faster. The product experience is what underpins a satisfying customer experience. in order to truly optimise the customer experience. To add further pressure. communications products and services are no longer static. CEO & Founder. Simon partnered closely with Communications enterprises from across the globe in Wireline. Since products are generated. the customer experience is substantially defined by the customer’s interaction with the CSP’s products. automated approach is required. so that they can make better commercial and strategic decisions. Simon Muderack is Chief Executive Officer (CEO) & Founder of Tribold. delivering on this targeted style of customer management on a large scale is only possible through an industrial (i. the increasingly competitive CSP market requires that service providers closely monitor how their products are performing. The business challenge behind the experience comes down to a basic premise: what should I be selling to my customers and what do I need to do to effectively deliver and manage that? The successful retailers who deliver on customer experience are the ones adept at product management and at understanding the relationship between customers’ wants and needs and the products designed to fulfil them. increases re-use of components and provides greater agility. These dynamic and complex products need to be managed through fragmented order-to-install stages. CSPs are increasingly defined by the products they offer. and delivering a good customer experience is essential for those CSPs who wish to retain existing customers and attract new ones from rivals. and to stay competitive and deliver against customer expectations they must manage and refresh a complex and dynamic product portfolio. billing as a Strategy Product experience: leveraging enterprise product management to enhance the customer experince by Simon Muderack. However.simplified and proactively managed product portfolio. and continually evolve their product strategy. Prior to Accenture.e. automated and scalable) approach to designing and managing products . use and payment. Wireless. Simon worked in FMCG marketing for Del Monte foods in Europe and some time in Product Marketing for AT&T Global Information Solutions (NCR) based at European headquarters in the US. He demonstrated his ability to engage the business together with IT and to identify and prove business value through technology led projects to the successful delivery of several large scale on and offshore solutions. long-lived or few in numbers. The customer experience is considered to be a key area of differentiation. The products are what drive a customer to engage with a service provider. The diversity and attractiveness of offers and services are what generate additional revenue.
as Figure 1 shows. However. retention. a wide variety of touchpoints that together create the customer experience. since the concept of ’product‘ is fragmented throughout the order-to-install-to-cash-to-care process. since the product experience is such an integral part of the customer experience. the increasing velocity of product rollout. needs or desires contributes substantially to customer satisfaction. data. CSPs can deliver enormous benefits including lower costs. Having deployed a central product management tool. How these products perform in terms of delivering against the customer‘s evolving wants. The common element throughout an end-to-end experience. central product catalog for their product information requirements.e. operational and customer benefits. catalog. Figure 2 Benefits derived from better product experience management In summary By simplifying and explicitly managing the product in a single enterprise product 14 n Asia-Pacific III 2012 . Moreover. Gen-i concluded it needed to select a single. or enquired about at a given touch-point. used. Alternatively. reliability and low cost. This was largely a result of inconsistent use of tools to support the concept-to-market process and this directly contributed to poor product performance. means that CSPs now urgently need to consider how they manage their products so as not to risk undermining both their strategic goals and investments. and ultimately managing. mobile.Billing as a Service. billed for. and increased customer satisfaction. the proliferation of CSP products. The lure of a particular product offer is often what attracts a customer to a CSP in the first place. provisioned. centrally used product management tool to help resolve the central product management challenges. l Figure 1 The central role of the product in the customer experience Why the product experience needs to be explicitly managed The central role of products in the customer experience makes it essential that CSPs have explicit control over the entire end-toend lifecycle of products. while indirect costs (such as opportunity costs or sub-optimal competitive positioning) are notoriously difficult to quantify. There are. Four different downstream systems now use a single. Product Experience benefitting customer experience in the real world Gen-i is a division of Telecom New Zealand that brings together IT and communications services to provide converged ICT solutions (voice. Gen-i identified poor product specification as one of the root causes. paying and customer care phases holds the key to centralized control and effective management. if trying to quantify the total losses as a result of a sub-optimal product experience. contributing to a reduction of 6 months out of the 18 month concept to market process. enabling CSPs to monitor and optimise their performance. The central role of product in the customer experience When we consider what the customer experience actually involves. but also increases operational efficiency in a wide range of processes and supports greater commercial agility. The importance of the product to a successful commercial strategy. lifetime spending and support costs. and to the customer experience. as important as these are to the customer experience. Confronted by the duplication and redundancy across their product portfolio. Direct losses (such as higher operational costs and billing errors) are spread over a number of operational areas. buying. greater commercial and operational agility. It is now broadly recognized that using a common reference of product information throughout the selecting. the business rethought its entire approach to managing products. With the product portfolio central to running the business itself. significant cost overruns and products being slow to market. the speed of change and decreasing product lifespan mean that CSPs need to centrally and explicitly manage products. Likewise enhancing product management also complements investments made in business intelligence and analytics. commercially and from the customer’s point-of-view. Component reuse is fully enabled. standardization with flexibility. with the high cost and low speed to market. The benefits of delivering a better product experience Understanding. the product portfolio was rationalized to less than 50 in less than one year. however. Making the case for such an approach can be challenging. delivering this level of insight is often far from trivial. in fact. we quickly discover this is a rather more complex question than it first appears. the key role that the product plays in the customer experience delivers a wide range of commercial. Rather it is defined by the sum of all the touch-points a customer has with a CSP. is the product: the product is being offered. using. billing as a Strategy through the artisan (i. as shown in Figure 2. cloud ICT and IT services) for businesses across New Zealand and Australia. the upside of such an approach can be more easily quantified and even proven. sold. the requirements are obvious: a product management strategy that delivers simplification and accuracy. labour-intensive) approach that we commonly see throughout the industry. Investments aimed at improving the customer experience will be undermined if CSPs do not also invest in better product management. as well as having accurate and timely insight into how they are performing operationally. as it supports a 360° view of products. Delivering this type of centralised product management not only optimises the product experience. It encompasses far more than just customer service or customer service channels.
SLA Mobile There is no denying that OTT players have shifted the centre of gravity of the mobile industry. They are best placed to deploy permission-based mobile marketing to gain consumers’ consent. CEO. The mobile industry is seeing significant shifts in power and influence away from traditional Mobile Network Operators (MNO) such as SingTel. Facebook is a framework and a set of tools that allows users to input and build their own communication network. billing as a Strategy Direct operator billing .Billing as a Service. He is responsible for transforming SLA Mobile from a professional services business to a solutions provider. Axiata and Vodafone to Over the Top (OTT) players such as Apple. Figure 1: The OTT Threat Asia-Pacific III 2012 n 15 . As technology has developed from first generation voice and text services to mobile data. With an ‘asset rich’ infrastructure. He is an entrepreneur. To do that. Facebook and Google. DOB will build an ecosystem of downstream and upstream customers that can be further monetised when more consumer intelligence is utilized. facilitating merchants business on one side and driving it to the mass of consumers on the other.A strategy to mitigate the OTT threat by Nic Stirk. visionary and classic example of a transformational leader. Mobile operators can respond by adopting the two-sided model. graduate of the Stanford Business School and was awarded Member of the British Empire (MBE) status in 1995. it is argued that the MNO is ideally placed to mitigate the growing threat from OTT organisations by executing a strategy of ‘monetising network and personal data assets’. In effect. text and data transactions whilst real value is created from social media platforms and web companies that leverage the growing smart phone market. mobile operators need a Direct Operator Billing (DOB) system that exploits their biggest assets ﹣ subscriber knowledge and operator’s trusted brand. Nic has led SLA Mobile to growth as a global Professional Services business and expand into APAC. historical and real-time consumer personal data. media and entertainment. Nic is a Chartered Director. technologies and services that give the consumer the ability to develop their own content. Nic Stirk is CEO of SLA Mobile. The challenge for MNOs is how to mitigate the growing threat from OTT players and how to stop themselves from becoming a ‘dumb pipe’. not just mobile and telecoms. whereby their revenue is generated from declining voice. Having gained a wealth of knowledge working with large Telcos in the past. which helps mobile operators across the globe monetise their network assets. who have applied disruptive business and technology models that span a number of industries and sectors. mobile internet and Rich Communication Services power has shifted from the MNO who owns the network to businesses that have developed frameworks.
and will emerge as a new asset class touching all aspects of society”. p. the internet and the physical world into one interconnected network. The case study centres on the operator’s objective of reducing churn in a predominantly prepaid market. where insurance ﹣ such as life cover ﹣ is virtually non-existent. The MNO’s DOB infrastructure needs to adopt a 2. have said that we are moving towards a ‘web of the world’ in which mobile communications. With a scalable platform and a team that can culturally bridge the divide between the MNO and industry verticals. but rather begins with an awareness campaign to the upstream customers. So assuming the MNO has recognised the sustained value in a two-sided business model. which can sit equally alongside more traditional methods such as cash and credit cards. The MNO wants a partner that can be an ‘extension of their own business’. The needs of the stakeholders in a ‘two-sided business model’ that is focussed on DOB require the following: - The downstream customer and consumer of DOB require a service that is underpinned by trust in the relationship with their MNO. by Fatemeh Khatibloo. and not compete head-on with the OTT players. the WEF believe that: “personal data will be the new oil. this article suggests that the MNO should develop a ‘two-sided business model’ for the monetisation of network assets. In the same publication. retention and sustainability.weforum. they now need to execute. Forrester. (Source: Forrester Research. Right Place Marketing proposition the operator can detect in realtime when subscribers with the correct profile require a top-up and can incentivise them to top-up with a reward of free life insurance for a period of time. The consumer also needs to continue to recognise that the MNO brings ‘trust. Monetising the MNO billing platform assets through a DOB proposition should be a significant stepping stone to further monetisation of network and personal data assets. Personal Data: The Emergence of a New Asset Class1. - The upstream customers. simplicity with how the transaction is made with both the Merchant and MNO. they need to start by asking themselves three questions: • Do I recognise the threat from OTT players? • Do I want to adopt a Smart Pipe strategy? • Do I recognise the strategic value of DOB? Assuming the MNO answers ‘yes’.Billing as a Service. the merchant needs a seamless and easy way to access the platform. and finally a product and 1 2 3 solution roadmap that can bring value-added propositions which can complement DOB. This use case satisfies the conditions of ‘win-win-win’ of the two-sided business model. Issued by the Mobile Marketing Association Personal Identity Management. social technologies and sensors are connecting people. Having worked with a number of leading mobile operators in the APAC region. merchants and enterprises. however it is recommended that the MNO ﹣ and not an aggregator ﹣ owns the merchant. the MNO brand is the biggest asset they have. October 2011. focusing on the low-income segment. however if they do not they should explore a partnering approach that ensures their brand remains central to the DOB proposition that is presented to the merchant and enterprise. They will want a partner that sees DOB as one of a multitude of assets that can be used to increase consumer value. 3rd October 2011.0 / Amazon approach to merchant engagement ﹣ after all most merchants are not technologists and they need to ‘focus on their day jobs’. merchants and enterprises require a low cost implementation route to DOB and one that can form part of an overall m-commerce strategy .7 n 16 Asia-Pacific III 2012 . DOB will build an ecosystem of downstream and upstream customers that can now be further monetised. This will highlight the value that DOB can bring to their businesses as a trusted payment method. and a transaction that is financially secure. whilst at the same time enabling the operator to fulfil Figure 2: Two-Sided Business Model A word on Personal Data: The World Economic Forum (WEF) in their January 2011 publication. They also want a partner that can share the risk and reward through an innovative business model. After all.org/issues/rethinking-personal-data An introduction to Permission Based Mobile Marketing. billing as a Strategy merchant engagement. simplicity. Yes. Executed successfully. and security’ ﹣ not a branded mediator such as an aggregator as currently exists within the Premium SMS market. Inc) http://www. the merchant’s brand owns the consumer. not a branded third party that owns the merchant relationship.a business model that can compete with other payment options and ensures margins are maintained or increased. and decided to implement a strategy to monetise network and personal data assets. It is also recommended that the MNO collaborate. The MNO may have their own DOB delivery capability. whilst enhancing the customer experience. Using the Right Time. and that a ‘quick win’ could be achieved by monetising the MNO’s billing assets and introducing Direct Operator Billing (DOB) for upstream industry verticals. Once engaged with the MNO. the MNO will be in a position to work with those verticals to identify propositions that bring sustainable new revenue streams to both sides of the ecosystem. the MNO needs to develop a ‘merchant engagement strategy’ that does not start with direct MNO- Figure 4: The Five Areas to Unlock Consumer Data. Within their DOB launch plan. A leading operator in Indonesia who needs to collaborate with a global insurance provider is one such case.
they need to rebuild subscriber trust on how they use Personal Data. they need to find a partner ﹣ quick. If not cannot do that. Before an MNO can build upon their success from DOB and extend their strategy to further monetisation of their assets. MNOs hold large volumes of consumer personal data relating to call records. Economy and Privacy”.Billing as a Service. that if exploited via a well thought out and executed strategy can deliver a significant competitive advantage that the OTT players do not have. billing as a Strategy The MNO is facing significant challenges from the young. MNOs need to reflect hard on their ability to execute a strategy of monetising network assets. Forrester 3 believes that “Marketers need to focus on five areas to unlock consumer data ﹣ Privacy. As the MNO builds upon their DOB successes. Security. they will need to consider the challenging area of permissions. The future for charging and billing is in the exposure of appropriate billing MNO assets to trusted merchants and industry verticals. they have a number of very significant assets. location. The Mobile Marketing Association ( MMA) defines permissions-based mobile marketing as: “The practice of gaining consent from consumers in advance of a continuing marketing dialogue that is taking place on mobile devices and in return for some kind of value exchange”2 . and in using DOB as the catalyst for further monetisation of other network and personal data assets. making best use of the technology and more importantly bridging over to the culture that the OTT players have. disruptive business models from OTT players such as Facebook. Portability. as outlined in figure 4. Apple and Google. as well as personal data related to search habits and social media usage. spend and key relationships derived from calling patterns. leverages the ecosystem they have built that is monetising their network and personal data assets. l their corporate social responsibility role. However. The MMA also goes on to say that MNOs have the opportunity to gain on two broad counts through permission-based mobile marketing: They can increase customer satisfaction and also open up new revenue streams by partnering with content creators and advertisers. To do that they will need to develop and implement Permissions Technology that is trusted and transparent for the user. Asia-Pacific III 2012 n 17 . Transparency. nimble.
personalised engagement and value added services. reaching 10. Introduction Living in a connected world has had an enormous impact on the telecom industry. Vallent and Objective Systems Integrators. VP for APAC and MEA. David is now responsible for Orga Systems’ regional growth strategy. including Kenan.it’s the way most operators run their businesses. legacy charging and billing models can no longer support the myriad of increasing complexities required by operators and subscribers. David has a keen understanding of the regional markets and enjoys strong relationships with operators. like utilities. leading analysts predict an eighteen-fold increase in broadband traffic between 2011 and 2016. offering telco operators monetised services and scalable.It is banking on the evolution of charging and billing. and many telco operators don’t have the infrastructure to deal with it. The big challenge for these industries. Next generation real-time charging and billing Legacy payment models are being replaced by real-time charging and billing solutions. These next generation charging and billing technologies would not be viable without M2M . That has led to huge bandwidth and traffic handling issues for incumbent telcos and it’s driving down profit margins while creating service issues for some of their subscribers. In fact. Having spent the past 20-years living and working in Singapore. He has held senior positions at IBM. and the rise of machine to machine (M2M) communication to take hold. So where does this snapshot leave the telecom industry? . The best billing solutions for them are those that were developed for the Telecom industry. both in the US and Internationally. The new real-time billing machine is perfect for that. In the mobile space alone. Cisco reports predict M2M connections 18 n Asia-Pacific III 2012 . billing as a Strategy The rise of machines by David Burks. It is not just outmoded technologies fuelling demand for better services from telcos . That’s a massive traffic and data management pain point. Metasolv. Orga Systems The evolution of charging and billing in Telecom has enabled operators to move to realtime convergent technology and support machine to machine (M2M) communications. which traditionally have not sought new features before. However. customer-centric facilities designed to incentivise subscribers through flexible tiered payments. especially those specialising in BSS and OSS domains. ‘Connected Living’ impacts on other industries.the invaluable connective solution for telco operators which has exploded on the scene in our connected world. David Burks’ 25-year career includes broad experience within the software and services industries.8 exabytes per month by 2016. automotive and transportation. as well as several ISV’s.Billing as a Service. As VP APAC and MEA. ISV’s and system integrators. is to find further M2M services and entice customers through attractive offers. Lucent and British Telecom. Extrapolate that beyond mobile broadband and the figures are even more formidable. who are also implementing M2M solutions. Despite being given a cursory lick of next generation paint every year or so. David Burks is Orga Systems vice president (VP) for APAC. They are still running all-you-can-eat flatrate tariffs to appease consumer demand for anytime-anyplace services. These services need to be monetised and add value while personalising the customer engagement.
it’s only going to get bigger. providers can regulate energy use for their consumers by helping them make decisions that store energy during peak times for use in off-peak times . look after huge volumes of data and traffic. different industries have started to integrate real-time M2M charging and billing solutions. utilities.Billing as a Service. That’s why utilities. which are tried and tested telco technologies. offering a payment pipeline to make M2M a viable economic reality. distribute and provision large numbers of devices and are accustomed to partnering with other companies. real-time quality of service and the security of both the networks as well as devices attached to it. utility companies also need to know how best to manage services.at a stroke. The big challenge then for these industries is how to adopt and manage M2M: How to provide the best use of added value through extra services. While these industries are different. They own and manage advanced mobile networks. helping to jumpstart consumer demand for mobile payment models that are now rolling out and being tailored for these very different industries. connected world M2M solutions have effectively turned these disparate industries to Communication Service Providers (CSPs) with an entirely new remit bolted on to their existing business models something most of those industries have to learn from scratch. the business needs are the same as the telcos’. and finally. automotive and transportation telematics have collided with M2M. how to handle customer data better though real-time convergent charging and billing. That’s why so many are turning to mobile operators to help them install M2M solutions. securely and costeffectively.8 million in 2011 to almost 217. Telcos have had a head start in the connected world. Like any business with a vested interest in M2M. the number of devices connected to short range or wide area wireless networks worldwide will almost triple over the next ten years. These telco specific technologies also offer better scalability to deal with the vast amount of connected devices. automotive and transportation. from 9 billion in 2011 to 24 billion in 2020.it has an impact on an eclectic array of industries including utilities. creating a cross-industry convergence that’s looking to real-time charging and billing to manage their diverse range of stakeholders. However. creating a more cost-effective model for energy consumption. Why? ‘Connected Living’ doesn’t exist in a hermetically sealed telco vacuum . M2M growth will be driven by demand for smart metering to help energy providers meet regulatory requirements by reducing carbon emissions. it’s mobile operators that are uniquely placed to bring about connected life. mobile payments for goods are expected to total over $750 billion worldwide by 2015 and will soon take over credit card sales. According to Smith Point Analytics. That makes M2M one of the biggest wireless growth sectors. it’s only logical that the growth of mobile payment models will expand in tandem . how to incentivise offerings like personalised mobile marketing for connected solutions. offering these industries better services. Using real-time M2M smart energy management systems. Analysts claim that 90% of new cars in 2020 will have some form of in-vehicle connectivity. Therefore. They are using real-time charging and billing with management of information and customer data to create better revenue streams through personalised services.and so it is. Those payment systems include everything from near-field communications (NFC) and QR (Quick Response) codes to mobile point of sale and the humble SMS. Now the worlds of telcos. The trajectory of M2M has left most future gazers polishing their crystal balls in bafflement. have scalable customer relationship management (CRM) and billing systems. These systems break down customer usage information on a granular level.5 million in 2015. They need to design solutions that capitalise on M2M to give their customers services they wouldn’t otherwise have. In the utilities sector. they need IT-based networking solutions designed to help them overcome these challenges. Real-time charging and billing from mobile operators becomes essential for utilities to handle smart meters and M2M deployment. They can deal with tiered tariffs and have a built in flexibility. In such a competitive environment. adding real-time charging and billing models that use M2M are vital to keep investors and shareholders happy while keeping customers loyal. That’s because it’s being used in a disparate array of industries as a solution that no analysts had predicted. One of the biggest M2M uses will be revenue generation through areas like tracking logistics. maximise revenue. these industries need to offer monetised services through maximised revenue streams. Some well-known luxury cars Asia-Pacific III 2012 n 19 . billing as a Strategy will increase from 81. most of these industries simply didn’t have any value added services because their businesses didn’t need any. providing vital information for companies to manage users and services. We all know a smart mobile connected device is the communications platform du jour with most of us hooked up to smartphones and tablets for work and play. transportation and automotive industries have never had to engage their stakeholders by developing relationships with their end-users. That’s because they offer an end-to-end package with network scalability. dynamic tariff management and close customer interaction. automotive organisations are turning to operators to map M2M solutions to their workflows. adding US$600 billion to the connected life economy. Mobile operators also have what it takes to deliver those services efficiently. these collective industries traditionally don’t know how to maximise the impact for their business strategies and their customer needs. The success of Apple and Google’s apps markets was a compelling catalyst. automotive and transportation telematics companies are turning to mobile operators providers to deploy the same M2M charging and billing infrastructure that they have been using as proven and road-tested technologies. Automotive The automotive industry has seen the rise of M2M though connected smart cars using intelligent transportation systems (ITS). They provide real-time data processing. interoperability. Aside from a bill through a door at the end of every month for utilities companies. While it’s big now. M2M challenge As early adopters of M2M solutions. According to Machina Research. However. Out of all telco stakeholders. Again. utilities. A convergence of factors has made the rise of M2M possible. and keep customers loyal. Telcos answering the call This is where the telco industry steps in. on the fly. Utilities If utility industries want to make the most of their M2M services. Historically. with so many mobile connected devices to service.
they help the new M2M industries build better services because they get a better understanding of their customers . they will be managed by real-time billing and charging telco technology.the most valuable asset any business can have. scalable and flexible way to handle M2M communications. They provide monetised and value added services that aren’t possible on other platforms. the automotive industry and transportation telematics take the technology in the future. have already been trialling these M2M services and other big brands are signing up to roll the technology out. Not only have the solutions been used for real-time tracking and automated monitoring of fleets and value added services like road charging. Transportation telematics Similarly. Major global players in logistics. Whatever applications M2M has in different industries. the automotive industry can now provide a host of M2M solutions. from in-car service innovations with media rich applications and mobility products like smart car rental schemes to on-board infotainment services. manage and monetise services. going from 90 million global connections in 2010 to 1. Sat Navs and car manufacturers. billing as a Strategy manufacturers have already signed up to include real-time billing and customer management information. We can’t wait to see how M2M is deployed by other industries looking for connected world solutions. l 20 n Asia-Pacific III 2012 . Thanks to the evolution of real-time charging and billing. which will include statistics about your car for driver self-care. Conclusion The evolution of charging and billing has created some exciting new M2M applications and industries in our connected world. We can’t wait to see where utility companies. Using these converged telco platform is the most cost-efficient.Billing as a Service. Their customers include anyone from highway authorities and travel information services to government departments. We’re seeing technology from telco providers deployed in diverse areas that have been hard for analysts to predict. providing telco technology to charge. More importantly. It is set to explode leading analysts claimed that transportation telematics will have the biggest growth rate for M2M applications.4 billion by the end of 2020. That’s bigger than any of the other nascent M2M industries and will set the benchmark for fully integrated telco provider solutions. the transportation industry has been relying on telco providers to offer M2M telematics services. M2M has also been used in GPS systems to track or charge vehicles by using real-time monitoring.
sean dessureault. Who should Attend? CIO. IST advisors. Philppe Cavrot. eramet (France) Deputy Chief Information Officer david Asher. there are key concern areas that need to be addressed. Mining Technology Managers.www. System Leads. Wesizwe Platinum (south Africa) Group Information Technology Manager Advisory PAnel Mining Partner: Platinum Sponsor: Principal Partner: Silver Sponsor: Lead Media Partner: Intuitive Mining Solutions . deBeers (Canada) Head of Information Technology dean stetson. Centre for strategic Cyberspace security science (CsCss) (uk) Senior Vice President-Information Security dr. university of Arizona (usA) Director of the Mine Intelligence Research Group and President of Mining Information Systems and Operations Management (MISOM) Consulting Services Inc eugenio kollmann. Mining companies are progressively becoming aware of the benefits offered by IT & Communication and are strategically working towards integrating advanced technology systems and solutions to manage day-to-day operational complexities and optimize corporate efficiency. Database Administrator. Software Engineers. Fresnillo Plc (Mexico) Chief Information Officer evgeny Charkins. Solution Providers. united Kingdom overvieW Due to globalization and constant changing market dynamics. leading to increased need for sustainable integrated information management systems. London. Mobile Equipment Analysts. ITS Managers. Discuss benefits of investing in IT Systems and evaluate ROI Showcase future mining technologies to enhance overall corporate performance Discover advance communication technologies to improve mine site connectivity Present real time case studies by industry leaders and experts. Anglo American (united kingdom) Workplace & Collaboration Systems Manager Baldomero gutierrez. GIS Managers. Heads of IT. Explore way outs for “Secured IT” Highlight value added benefits of ERP across verticals. eastern Platinum (south Africa) Group IT Manager oscar Cueva. hudbay Minerals (Canada) Information Technology Manager heather drews. Network Managers. Hilton London Kensington Hotel. Mine Operations Managers.com visit our website: global Mining it & Communication summit 2012 ~The Industry vision towards smart IT~ 20 – 21 November 2012. Cliffs natural resources (usA) Information Technology Manager kobus Pienaar. System Analysts. Technology Services James ross. Process Managers. gold Fields (south Africa) Vice President & Group Head of Information Technology gustavo Brancante. Project Development Managers. Program Managers. Database Managers. iAMgold (Canada) Information Technology Manager Jason kozar. GIS Managers. hochschild Mining (Peru) Chief Information Officer Pertti lamberg. Business development Managers. IT Architects. IS Superintendents. great Panther silver limited (Canada) Vice President. Ambatovy (Madagascar) Information Technology Manager Mike Popham. Alcoa (Brazil) Manager Innovation Technology Jorge garcia. GIS Analysts. newmont Mining Corporation (Peru) Service Delivery Manager Janade sewnarain. Consultants. Networking Administrators. IT Business partners. Although mining companies are investing more in Information technology and development. IT Infrastructure specialist. Operations Managers. COO. teck resources (Canada) Chief Information Officer Perry harris. Group IT Managers. Networking Engineers. mining companies are facing financial challenges and pressures. severstal (russia) Chief Information Officer strini Mudaly.fleminggulf. Centre for strategic Cyberspace security science (CsCss) (uk) Chief Operation Officer Patrick Mcilwee. kal ruberg. Software Developers. Senior IT Managers. rio tinto (usA) Information Technology Systems Lead stephen Buchard. Global IT Heads. Project Leaders. luleå university of technology (sweden) Professor in Geometallurgy speaker from MicroMine speaker from ventyx speaker from ge industrial Communications distinguished sPeAkers the Global Mining it & Communication summit will: Address key issues evolving in current IT Space. IT Managers.
Louis has worked in the telecoms industry for over 20 years. policy and customer management as well as billing and it allows the organisation to gradually converge their mindset too. Voice-Data and Pre/Post pay. billing as a Strategy Total Convergence by Louis Hall. there are still many Communications Services Providers (CSPs) in the Asia-Pacific region. Convergent Billing. Cerillion Technologies BSS has already gone through convergence -Fixed-Mobile. These challenges can be overcome by a converged architecture that provides for a separation of transport from the applications and can support new services and new revenues. there has been paymentmethod convergence . Louis Hall is the CEO of Cerillion Technologies. This practical framework. as offerings can be developed in one central place. has undergone several major evolutions over the past 20 years. The logic was: less systems equals less cost. minds and wallets of the end customers. Most recently. But. It encompasses marketing. there was an enormous obstacle to be cleared first . In the past. but carriers are still hamstrung by inadequate systems. Louis led the Management Buyout of Cerillion from Logica in 1999 and has led the successful development of the business over the last 13 years.being able to bill for all these types of service on one system. Whilst CSPs prevaricate over the ownership of the charging infrastructure and their relative business priorities. and less systems equals faster time-to-market. is dubbed ‘Total Convergence Architecture’.also known as convergent charging or pre-paid-post-paid convergence. as we know it.namely the cost and risk 22 n Asia-Pacific III 2012 . Then came voice-datacontent convergence . but due to a combination of poorly built business cases and lack of a coherent infrastructure or methodology for implementing such solutions. who are hamstrung by limitations in their Business Support Systems (BSS) infrastructure. which is derived from the TMF Application Framework. This is due to lack coherent modular infrastructure. and the rest of the world. Despite much of the hype surrounding these flavours of convergence. First. and this is a really big ‘but’.Billing as a Service. we had fixedmobile convergence . OverThe-Top (OTT) service providers are happily eating away at their revenues and stealing the hearts.the ability to bill for both fixed and mobile services on a single platform. Prior to this. many of the business cases for convergent BSS were based solely on the perceived benefits of removing duplicated functions in separate systems. CEO. business cases that relied purely on cost shaving and failure to converge the organisation culture and processes. It allows operators to implement it in different ways at different times. he led Logica’s in-house customer care and billing product group. which are not able to support these three dimensions. primarily in the BSS/OSS space. So what is going wrong? With most vendors claiming to have introduced these convergent features many years ago. why are there so few successful deployments around the world? We firmly believe that take-up of convergent billing has been slow not specifically due to technical constraints.
Only when this mindset is achieved will the true value of convergence be delivered. CSPs may not need to implement the complete model to achieve their desired level of convergence. The current economic climate and intense competitive pressures mean that total convergence simply has to move from being a target system environment for the future. bringing the opportunity for CSPs in Asia-Pacific to rationalise systems. service and revenues. Whatever options are taken. l Figure 1 . it’s not just about having a single charging engine for all services. However. Critically. help CSPs identify what they want to achieve from convergence and provide a structure to enable them to accomplish these goals. they are the means by which a CSP can re-invent its business model to monetise new services and create a more compelling customer experience. with the emergence of the TCA framework. billing as a Strategy of moving everything onto one super-size system. This is where the business case usually fell down. If we look specifically at convergent charging technology. It must become a way of working and a culture by which CSPs conduct their whole businesses. Critically. or at the same time. The TM Forum Application Framework (TAM) provides a functional model within which BSS and OSS applications can be aligned. and always has been. Of course. Without a solid business case that also delivers revenue growth or customer retention. This is leading to a layered BSS/ OSS model with common functions shared by multiple services. perhaps taking advantage of emerging cloud-based solutions. the concepts can appear straightforward but delivering a successful implementation requires clear understanding of strategic objectives. how to transform their BSS architecture from where they are today to the convergent world they so desperately need? As with all issues in the BSS/OSS space. the 3GPP standards have evolved tremendously and formed a very solid foundation upon which to build the appropriate technical capabilities. grow revenues and offer a convergent experience to their customers. Some new 4G licensees will have the luxury of building a completely new systems architecture. moving customer care and self-care onto a unified platform enables a common level of service to be delivered to all customers. From this we can derive the practical ‘building blocks’ required to deliver a fully convergent solution. so there will always be exceptions which must be catered for without resorting to the addition of new system stacks to support a particular customer or service segment. At Cerillion. Each layer in this architectural framework has a set of functions which need to be tackled.building organisational convergence is essential for the successful deployment of the technical solution.Billing as a Service. these technical capabilities are not the end of the story. it also takes into account that CSPs may not implement convergence in the same way. prospects for the successful transformation to a convergent BSS / OSS architecture have become much brighter. very few CSPs have been prepared to make such an investment. irrespective of how they choose to pay. CSPs can today be optimistic that these challenges can be overcome thanks to the evolution of network architecture and a clear separation of transport from the applications and services. convergence also poses business as well as technical challenges . at the customer management level. ability to react quickly in order to address problems as they arise. The TCA framework can help deliver the maximum value from a CSP’s existing investments whilst addressing the complete lifecycle of customers. products. and ‘pre-paid’ from a personal wallet during out-of-office hours. we call this the Total Convergence Architecture (TCA). and in doing so. charged to a business account during office hours. to a business imperative for the here and now. using a common set of terminology and functional mapping. The critical question for established CSPs is. and experience of complex businesstransformation projects. In the simplest case. while service level convergence allows CSPs to offer hybrid services that sometimes behave according to post-paid rules and sometimes operate in pre-paid mode. However. a voice service could be defined as ‘post-paid’. CSPs also need to recognise that convergence is not just a one-off project that can be completed and then forgotten about. The framework recognises that every business situation is different and aims to provide an architecture within which a variety of approaches can be followed at different levels of the model. For example.Total Convergence Architecture Asia-Pacific III 2012 n 23 .
Harnessing these behaviour patterns to create tailored marketing propositions is a powerful way in which mobile operators can dramatically improve their customer loyalty and engagement and strengthen their relationship with subscribers through customer knowledge enrichment. Today Customer Base Management solutions exist that can effectively fulfil this function and such technology is already installed in many emerging market countries by both Tier One and recently launched operators. Mr Troesch served as Regional Vice President. BellSouth Long Distance. he also serves as the Senior Vice President. let us start by defining what we mean by a Customer Base Management (CBM) Solution. targeted offers by Yann Chevalier. based on their behaviour and creates tailored campaigns to meet the individual’s specific needs in real-time. Inc. CEO. a CBM is an end-to-end solution that provides marketing teams with comprehensive information to analyse and segment users. this type of technology has been proven to increase ARPU by 5-9 per cent per annum. Global Sales.. Inc. while high market volatility and price wars are undeniable factors in emerging markets.Customer is king The ‘Power of One’: Increasing customer loyalty with real-time. The aim of these solutions is to deliver highly targeted campaigns to reduce churn. Indeed.. Mr Troesch previously held various positions at Edge2Net. ensure ROI (Return On Investment) and reduce churn. operators are under considerable pressure to find new and innovative ways to engage with customers. reviving inactive accounts. preventing ‘at risk’ customers churning and up-selling renewals. enabling them to make timely offers to encourage top ups and gain greater loyalty from subscribers switching between multiple SIMs. and U. In these highly competitive emerging markets. operators need to find new ways to increase the value of their customer base by offering highly personalised and targeted offers. It must operate in real-time for timely activation of incentives and offers. It is especially effective for stimulating usage. While the Asia-Pacific region is composed of both mobile market extremes. Defining a customer base management solution Firstly. in real- time. Americas for Belgacom ICS. S. The purpose of this article is to examine the merits of the latest Customer Base Management Solutions and share examples of how operators have deployed them to best effect. launch campaigns and evaluate results without seeking help from the IT department. The mobile market is an increasingly competitive environment and the rise of new entrants such as OTT (Over The Top) players is changing the rules of the game by bypassing the operators and striking up direct relationships with subscribers.S. Frequently confused with Customer Relationship Management (CRM). based on subscribers’ actual behaviour. Vice President. operators in APAC still have a lower adoption rate of such solution compared to other regional markets. engender loyalty and improve customer experience. Product & Business Development. The technology has proven particularly effective in targeting the pre-paid user community. engender loyalty and improve customer experience. CBM must empower the marketing team to analyse data. CBM must cope with high volume of event-based information to glean insightful information from ‘Big Data’. Consequently. network and product development in fixed and mobile telecommunications.A. where operators hold scant information. create meaningful segments. Mr Troesch brings Arbinet more than 14 years of management experience in sales. Surprisingly. Brian Troesch is the Senior VP of Sales and Marketing. two common trends are driving the regional telco industry: the push for cost optimization and tailored customer service. Intersec Customer Base Management (CBM) is the system that helps marketing departments to produce highly targeted campaigns to reduce churn. Long Distance. and Business Development at Arbinet Corporation. Previously. Inc. Marketing & Product Development. Asia-Pacific III 2012 n 25 . Inc. Brian Troesch is a graduate of the University of Texas at San Antonio. High smartphone penetration rates and 3G service consumption are today an established trend in mature mobile markets. Mr Troesch held the position of Sr. Pacific Gateway Exchange. Before joining Arbinet.
Mobile penetration is approaching. inactive account revival. This lack of visibility has itself created difficulties in knowing the optimal timing to offer incentives such as a handset renewal or a service migration. there is the choice between developing such a solution in-house versus a customisable offthe-shelf alternative. Such users alternate between operators to use the same operator as their friend or family member to reduce call charges. The ability to create individually tailored services based on a customer’s known preferences and behaviour at the optimal time. while margins are under attack like never before. Firstly. including all Call Data Records (CDRs). The CBM is also integrated into the organization’s billing. Outsourcing the task to a company. create meaningful segments. Real-time reporting is vital to increasing an operator’s reactivity and identifying new consumption patterns rapidly. limiting considerably their effectiveness in implementing an effective customer loyalty programme. increasing marketing professionals’ autonomy and saving precious resources. launch campaigns and evaluate results without relying on the IT department. Another key requirement is the ease of use. In a world obsessed with ‘Big Data’. contextual data to ensure optimal timing and targeting. Developing such a sophisticated system from scratch would take years and entail a major investment of both time and money. we should not forget the consumer’s perspective. securing ‘At Risk’ customers. These are important factors for operators and are the reason why it is generally advisable to work with a specialist provider of these solutions as it not only reduces the Time To Market (TTM) but the technology is now widely recognised and has been specifically developed to address the telco industry demands. To counter this tendency the operator offered incentives based on the number of calls received to encourage them to keep their SIM in the phone longer. Operators around the globe. The results of such loyalty strategy have been shown to successfully increase annual Average Revenue Per User (ARPU) by 5-9 per cent per year and decrease churn by between ten and 20 per cent annually. it would be wise to evaluate the range of customisable solutions available which can be integrated and fully deployed within a 3-4 month timeframe. Another point worth remembering is to ensure that your chosen solution is able to deal with fixed. This offers operators an early warning that someone may be considering changing to another operator. enabling reaching ROI within three to nine months. Making an impact in emerging markets In today’s world. One of the main challenges operators face in these markets is the lack of accurate and reliable subscriber consumption data. Customer Base Management solutions sit in the network core collecting meta data about all network events concerning the type and pattern of usage of both voice and data traffic and building up a valuable profile of the individual.who for example are using Ring Tones . Intelligent Network. even exceeding 100 per cent. when you opt for the latter . has long since moved from customer acquisition to focus on increasing customer usage and loyalty and reducing churn. CBM’s have been used very effectively in the pre-paid environment where aggressive price wars have served simply to cut operator margins and the Holy Grail has long since moved from price-cutting to delivering extra value. Equally there are a range of offers that have been proven to be effective in achieving these goals such as: Incoming call bonuses. In-House vs off-the-shelf Whilst the wisdom of deploying Customer Base Management Solutions can offer excellent rewards for operators. Secondly.Customer is king Traditional CRM solutions are not capable of processing the high volume of event-based information that an operator generates through the day-to-day activities of its consumer base. all of which help to arrive at the age-old marketing mantra of ‘providing the right products. However. before going down this route. both in the emerging territories and the mature markets. Mature markets pose their own set of challenges and the recent trend for ‘All-You-Can-Eat’ bundles has resulted in the operators losing touch with how consumers are using their services. the mobile device is no longer seen as a luxury item but is widely viewed as a commodity. In this climate. An intuitive and easy-to-use solution will optimize internal processes. Operators need to ensure that their chosen solution is able to process effectively high volumes of data in order to facilitate real-time offers and ensure it has the ability to quickly analyse trends in usage or competitors’ activity and instantly respond with a tailored campaign. whose core business is developing such solutions.might be incentivised to try Ring Back Tones in return for a particular offer. l 26 n Asia-Pacific III 2012 . These include: usage stimulation. but instead focuses on providing in-depth analysis of smaller volumes of data. Opt-ins to gain bonuses and service subscription incentives where subscribers . A Loyalty Management system would prove particularly effective for operators who want to increase usage of their service in a market typified by users with two or more SIM cards. thus prompting a more enticing incentive. the emphasis for all operators. A key prerequisite of CBMs is the ability to empower the marketing team to analyse data. In today’s market OTT competitors like Google and Apple are battling with incumbents and new operators for the hearts and minds of the mobile consumer. habits and lifestyles. There are a number of applications where CBM’s have proven to be particularly effective. Nonetheless. via the channel they are most engaged with. Being able to identify the normal pattern of topups for users and sending a timely reminder just before their credit expires can be useful for consumers. mobile and CDMA traffic using multiple channels and multiple screens. Top-ups themselves are another service where timing is critical. the relevance of behaviourbased solutions is not only limited to emerging countries or pre-paid environments. are now truly realizing the ‘Power of One’ and opting to deliver tailored propositions to delight and engage their customer base. offering migrations or up-selling and handset renewals. To this end.what criteria should you consider in choosing between the various solutions available on the market? Let’s deal with the choice of custombuilt or off-the-shelf. who possesses extensive experience and knowledge in this specialist market area seems much less risky. their preferences. nowhere is the thirst for insightful customer information more sought after than in the Telco sector and operators equipped with a CBM solution avoid facing risky decision-making based on assumptions or unrelated data. to the right people at the right time’. ahead of competitors. personalised offers to individuals or groups of subscribers. it’s worth considering carefully the different approaches to obtaining such a system. Winning the hearts and minds of customers So returning once again to the original premise for this article in examining how understanding and dissecting actual usage patterns and behaviour can allow operators to create highly segmented. Data Warehousing and CRM systems offering three key advantages: customer knowledge. will have an equally favourably impact on the customer experience. even in emerging countries.
network condition or device type . such as M2M (Machine to Machine) and Enterprise Cloud Computing. and new business models. Narus is a Silicon Valley based start-up specializing in carrier-class security software for the world’s largest IP networks. Comverse Asia Pacific LTE alone will not resolve all the current networks challenges. new challenges have surfaced in monetization. customer-centric manner. Weiming brings to Comverse over 20 years of distinguished career in the IT and telecom industry. New Connected Opportunities Call for the Tight Linkage of Network and IT Elements to Uncover Advanced Charging. counting on LTE network technologies to remedy network capacity and performance concerns in light of skyrocketing data consumption. consumers’ expectations for on-demand access to a bevy of data intensive services. A customer-centric solution to marketing. website. He was instrumental in establishing the Amdocs’ brand in Asia Pacific and won several sales awards in recognition of his strong leadership and his understanding of the APAC market. In fact these challenges. bundling M2M and Enterprise Cloud Computing services with personal communications services or bundling multi-device in data services packages. specifically monetization. LTE investments will not remedy the other challenges. Before joining Oracle. Weiming was the vice president and general manager of Oracle’s Communications Global Business Unit in Asia Pacific and Japan.Customer is king The Subscriber: The Overlooked Variable in the Policy Management and Enforcement Equation by Dr Weiming Li. This can be used for generating creative offers. CSPs should apply lessons learned from flat-rate pricing/offering schemes for 3G bandwidth access . Weiming was the vice president and general manager of eBusiness Solutions of Nortel Networks.150 commercial LTE network in 64 countries by end of 2012 . Weiming was the founder and CEO of Info Power (Aust) Pty Ltd. Vice President & General Manager. including over-the-top (OTT) services. application. and a single service creation point. all have compounded the effects on the CSP (Communication Service Provider) network capacity and performance.g. and holds a Master’s degree and PhD from the University of New South Wales in Australia. However. APAC Division of Amdocs.which led to skyrocketing data usage and flat/declining data revenues and paved the way for OTT players to reap the profits. CSPs will need to be able to combine subscriber profile information and network knowledge while sharing this information across the organization to capture the value of the connectivity being provided in the most efficient.taking into account quality of service and the customer’s profile and history further bolstered by an ability to monitor usage and take real-time actions on thresholds and quotas. Weiming worked for Narus as its vice president and general manager in Asia Pacific. a consulting company delivering IT business solutions to small and medium enterprises (SME) in Australia. content. Weiming was the vice president of sales. to extract value from network investments in the connected world. Weiming is a graduate from the East China Normal University with a Bachelor of Science degree. OTT and retailer partners. Dr Weiming Li is currently the Vice President and General Manager. network resource management and monetization when defining and enforcing traffic and pricing schemes. e. It offers advanced policy. Hence. marketing. For the previous seven years. Billing & Customer Management As the telecommunications landscape continued to evolve over the past few years smart devices. Advanced systems can also facilitate revenue sharing with OTT. Earlier. This will ensure that pricing for services will not only reflect network-focused dimensions like speed but also be reflective of perceived subscriber value in terms of an enhanced Asia-Pacific III 2012 n 27 . Weiming single handedly built its APAC team and contributed more than 50% of company’s new sales during his tenure there. will only be amplified by LTE networks (note video is being called ‘the defining service’ of LTE) and even more so with Voice-over LTE based networks where subscribers can access multiple services simultaneously . Prior to Comverse. Given the recent update of the GSA (Global mobile Suppliers Association) to their Long Term Evolution (LTE) growth forecast . especially in sales of complex software systems and consulting services to leading communications service providers in the region. CSPs can transform customer data into actionable marketing-oriented information based on analytics of both real-time and historic information. BSS should not be an afterthought. At the same time. This ‘Subscriber-and-Network-Aware’ approach is based on unified information. CSPs could even offer targeted marketing to 3rd party advertisers. with seamless service continuity across devices and networks. and customer management. Subscriber-and-Network-Aware Charging Policy & The essence of such an approach is tying together all aspects of the customer relationship. Prior to that. A subscriber-and-network-aware approach manages and enforces traffic and charging policies based on any combination of service. competition. where he achieved steady growth under very tough economic conditions in the early 2000s. multi-channel and real-time-anywhere capabilities. Asia Pacific at Comverse Technology Inc.it is evident that CSPs are focusing on the network aspects. a leading software vendor for billing and customer management solutions. unified functionality.for instance video calling and perform on-demand content downloads. policy and charging is needed.
and billing) • Single Service Creation Point: A single service creation and provisioning point for all services (specifically data) and their underlying policies. even for postpaid subscribers. Actionable marketing information can drive segmentation even across the bundled offerings described above. usage patterns.through the enforcement of traffic and charging policies that are subscriber and networkaware to ensure that dimensions such as type of device and application. The ability to leverage subscriber/ account information when managing and enforcing traffic and charging policies will also be essential for M2M and Enterprise Cloud Computing services where meeting guaranteed levels of service are contractual. Equating Success The new equation for advanced charging and billing needs to include the subscriber: subscriber factor + network factor = policy action (policy management x policy enforcement). over CSPs networks but CSPs are NOT profiting from these services. CPSs can configure and enforce the appropriate device-specific policies as part of the shared bundled data plan. a modular BSS system is needed.hence these types of revenue share partnerships between CSPs and OTT players would become a win-win for both sides. time of day. CSPs must not forget about the customer experience as this will be key to differentiation and long-term success as noted in the following new revenue models. By leveraging a subscriber-and-networkaware approach. Such a system provides CSPs with the following essential business benefits required to succeed in the world of new connected possibilities: • Advanced Policy-Enabled Monetization for Any Service or Business Model . Communications & OTT Content/M2M / Cloud services bundles As an extension to the above. for instance bundling voice. and service offering and bundling. To bridge this gap.). enforcement (including DPI Deep Packet Inspection) and comprehensive BSS functionality spanning critical business functions (CRM. l 28 n Asia-Pacific III 2012 . plans and bundles • Automated & Consistent Multi-Channel Customer Management and Marketing through the sharing of complete real-time customer information and activity. QoS and priority level and value per bit are being considered as part of offers. messaging and data which would allow unlimited video streaming from OTT partner’s service catalog. CSPs can secure additional data revenues via capturing more ‘wallet share’ under one plan. across Telco-specific CRM and customer care channels (including social media) • Real-time Everywhere . As in the example above. Now let’s examine further how a subscriberand-network-aware BSS solution can empower new revenue-stimulating models. These can include assigning priority. Of course. This will only be achievable with a BSS system that unifies critical business functions from CRM to policy around a single data model and a single service agnostic product catalog will allow CSPs to uncover a gold mine of opportunities by exposing the full potential of their two most valuable assets: customer data and their networks. to charging and billing . customer management (including self-service). This will allow CSPs to uncover a gold mine of opportunities. the required single and complete view of customer/account information will not be attainable. Bundling M2M and Enterprise Cloud Computing services with personal communications services can also be profitable. CSPs can automate campaigns and real-time promotions across any channel (including social media) as these can be triggered by any number of subscriber or network related event for instance usage. Such plans involve revenue share with OTT players while at the same time promote offering segmentation which translates into increased ‘subscriber stickiness’. current and consistent customer and product information available at every interaction • Unified Functionality: Combined policy management. New Revenue Models New revenue models in the connected world. From a customer’s perspective. Yet again. OTT and retailer partners. Bringing such an approach to the realm of reality will require CSPs to take stock of their current supporting infrastructure. When planning a move towards a comprehensive end-to-end solution. CSPs could bundle OTT content services with personal communications services. by exposing the full potential of their two most valuable assets: customer data and their networks. limit postpaid credit risk and promote personalization. BSS data is an important business intelligence data source. While offering M2M services and communications services as a bundle to the Residential market can enable the `Connected Home’. CSPs should partner with OTT players by securing revenue share agreements whereby CSPs would offer guaranteed quality of service levels to support an enhanced user experience across OTT partners’ services. Take Stock of Supporting Infrastructure BSS (Business Support System including CRM . it is important to note that these revenue models can all be enhanced with personalized marketing capabilities. With higher bandwidth LTE networks. look for solutions that provide: • A Unified Information Base: Complete. Offering Enterprise Cloud services and communication services as a bundle to the SMB segment with a guaranteed level of service end-to-end including the `last-mile’ connectivity is a key differentiator for CSPs against OTT providers. as LTE promises to advance subscribers’ ability to seamlessly transition their service experience across devices. As a result. call for bundling and partnership strategies to ensure success. financial status. If the current ecosystem is a patch-work of disparate ‘siloed’ systems.Customer Relationship Management) directly enables and impacts: end-customer experience (including end-customer aspects of policy management). monetization capabilities. CSPs can also leverage multi-device data bundles for personal communications and M2M service bundles. etc. For instance a certain customer continually accessing an OTT partner’s services can receive an upsell campaign to upgrade to a communications and content bundle that offers unlimited access to that OTT partner’s services with guaranteed quality of service level. and so on.even into Traditional Post-paid Environments . Partnering with OTT players The current dilemma with OTT players is that they offer services. real-time rating and charging. it becomes feasible to offer quality of service levels that optimize bandwidth for OTT services . laptops.Customer is king experience. site being accessed. With a subscriberand-network-aware unified BSS system. CSPs can leverage this not only to enhance their own marketing practices but also to offer targeted marketing to advertisers. Multi-Device data bundles As an extension to the above.around a single data model and single service-agnostic and marketing-focused product catalog. ordering. CSPs can transform customer data into actionable marketing-oriented information based on analytics of both real-time and historic information. which are typically data intensive.through the extension of real-time rating and charging to meet regulatory bill shock requirements. such bundles would enhance convenience as they can manage multiple devices from a single data plan in addition to enabling a level of cost control as all services pull from a common data balance. By introducing such bundled data plans. setting specific data allocation and differential charging for each device. CSPs will be wise to offer bundled data plans that address the connectivity requirements of individual personal communication devices (handsets. especially in light of LTE. It also directly impacts the CSP experience and efficiency. Personalization Returning to customer experience. which unifies critical business functions from Policy (management & enforcement) to Telcospecific CRM. as well as the real-time marketing and promotions capabilities of an operator. tablets.
in order to provide high-quality services to an increased number of consumers. with each country counts on average three mobile network operators and often several MVNOs (Mobile Virtual Network Operators). Operator’s challenges The intensity of competition in the telecom industry is extreme. Malaysia. seeking different business models and ways of monetizing network services. Fuelled by the booming demand for mobile broadband services. Astellia While the pressure of mobile data services is set to grow. The rapid uptake of mobile broadband due to the ‘always connected’ way of life of mobile subscribers poses new challenges for operators. mobile operators can use probe-based monitoring solutions which can detect. The recently released “Mobile Content and Applications Forecasts report” from Informa Telecoms predicts that in 2016. This should lead to innovative pricing models generating maximized revenues and increased customer loyalty. mobile network operators have to be flexible when it comes to data plans by adapting these plans to groups of subscribers with the same usage patterns and similar expectations. Fontainebleau. he has been a member of Executive career panel for Corporate Entrepreneurship elective for MBA program at INSEAD.5 times as much video. on average. eight times Asia-Pacific III 2012 n 29 . President Global Sales and Customer Operations.Customer is king Using customer analytics to create new data plans and pricing models by Rajesh Sharma. correlate. it is fundamental to have a better understanding of services. Lucent Technologies. especially because data usage is rising much faster than the revenues it is generating. Cambodia and the Philippines . Thailand. Therefore. Indonesia. He has more than 15 years of successful international sales and business development experience in the Telecommunications industry with companies like Telstra. This rivalry leads to pricing pressure and consequently falling ARPUs. they must ensure the quality of their customers experience by fine-tuning the network according to network monitoring intelligence via DPI. He manages the development and implementation of Astellia’s commercial strategy. mobile phone users will. an MBA from the Asian Institute of Management and has completed Executive Programs from Wharton Business School and London Business School. Rajesh Sharma has been directly responsible for the worldwide revenue generation efforts as well as the day-to-day operations of the company’s sales business unit including sales. As competition intensifies. customer care and marketing departments.Singapore. Nortel and the Tata Group.according to the latest results from GfK Asia. Since joining Astellia in May 2011. customer operations. Therefore. consume 6. Smartphone sales grew by 78% across the seven key markets in the region . it is essential that competing companies come up with a new and innovative product range and pricing structure which allows them to develop a close and long-term relationship with their customers. To enhance their understanding of customer behaviour and react quickly when problems occur. Citrix. report and troubleshoot issues in real-time. customer behaviour and bandwidth usage through mobile network monitoring. Vietnam. analyse. Mr Rajesh Sharma holds a Master’s degree in Engineering from IIT Kanpur. Mr Rajesh Sharma is President of Global Sales and Customer Operations in Astellia. operators are still in the dark. Since 2006. They need to perform multi-dimensional usage analysis to identify which data volumes are consumed by what customer segment on which devices.
• truly unlimited data plans (without data throttling or capping) versus capped data plans. Smart focuses on data allowance while Globe sells on speed and unlimited usage. operators need to understand quickly the types of sessions that are being used in order to propose targeted upsell and cross-sell campaigns. as detected at one South Asian operator. Operators should try to find out what their place is in this new apps ecosystem and whether joining forces (rather than fighting them) can help them avoid revenue cannibalisation by becoming a dumb pipe and rather generate incremental earnings. network performance monitoring is an important tool in providing this traffic visibility in order to maintain QoS and monetize network investments. network optimization and QoE (Quality of Experience) improvements are becoming key differentiators and strategic tools. In the meantime applications offered by OTT (Over The Top) players and content providers have exploded. becomes crucial. basic data access and messaging services. Operator’s means: Network monitoring & customer analytics Understanding what services are being used. For many years now. at a major Indian operator we noticed that over ten thousand unique customers were having wrongly configured SMSC numbers initiating over a 0. that the Big two (AT&T and Verizon) are focussing on tiered data plans whilst Sprint. Mobile network operators are faced with the complex challenge of delivering the best possible quality of experience (QoE) to their subscribers in order to reduce churn while managing the traffic surge. the quality of network they are accessing. Therefore. Effectively managing this pressure. Deciphering usage patterns is also an important input for optimizing network performance in order to improve the quality experienced by the subscriber. or the time taken to download a web page being unacceptably long or. They need. operators must improve their ability to offer a segmented customer experience with new data plans and pricing models. operators have sought to develop new services and revenue streams. 1. Another example may be that subscribers are willing to pay a premium to watch an HD movie (on 4G network) instead of watching a standard quality movie (on 3G network).5m activation rejections due to IP Pool congestion. In many cases. This information enables mobile network operators to improve customer experience and thereby generate additional revenue on high value data services. report and troubleshoot issues which are linked to network and handset performance in order to deliver the best user experience. A global end-to-end view of the network is therefore crucial. and identify low-performing equipment in the core network. mobile operators need probebased monitoring solutions which can detect. and many mobile network operators in the APAC region are already preparing their networks for next generation 4G service deployment. For example. to identify the most popular handset models generating the most traffic and tailor their data plans and service offerings accordingly. analyse. it is caused by faulty or wrongly configured handsets. fine tune radio access that is responsible for bottlenecks in 80% of cases. Operators are still in the dark as to what exactly is the best business model. In the USA. By helping mobile network operators understand better behaviour patterns and their impact on the network. we see. when and where they are being used and how this impacts network bandwidth consumption is critical to ensure that mobile networks provide reliable services to an ever more demanding customer base. Probebased. • based on fair usage of applications versus shared data plans that allow customers to pay for a single pool of data and share it across multiple smartphones. For instance.Customer is king as much music and nearly ten times as much games as in 2011. Facebook and Skype. avoid churn and increase ARPU. tablets and laptops. mobile services are a fundamental part of daily living and customers are expecting a multitude of high quality services from mobile operators anytime. These new players are making huge profits by using operator’s infrastructure without compensating them for this. correlate. This high capital expenditure is difficult in a time where voice revenue continues to flatten and data revenue struggles to make up the shortfall. They have to come up with transparent and fair data plans taking into account the quality of service (QoS) delivered to their subscribers. customers attach different levels of value to different types of data sessions. but revenues are still mainly generated by core services like voice. which can vary according to the type of device they are using. causing quality degradation. network equipment inefficiencies or even spreading viruses across the network. Telecom service providers continue upgrading their networks. while monetizing the network. operators can create new usage-based data plans. Because operators offer essentially the same types of services and network facilities. Subscribers experiencing poor service quality often think that it is due to the mobile network. Different strategies are adopted by various operators. In short. This knowledge is also very useful when verifying the relevancy of pricing policies. The teams investigate problem root causes. operators are approaching pricing from different angles: • pre-paid versus post-paid. how much urgency there is for them to do something. Intelligent Deep Packet Classification helps in classifying data traffic and in identifying the various applications used for every session such as YouTube. MetroPCS and T-Mobile are offering unlimited data to get their piece of the pie. nearly half of Singaporeans and one-third of Australians are already watching video on their smartphones. However. Therefore. Network optimisation teams can also detect service quality degradations that their customers are experiencing. Examples include intrusive latency encountered by gamers playing online.25m SMS requests/week. Consumers are buying on the basis of the overall value that the operator gives them. the time of day and also. For instance. you’re likely to attach high value to that. anywhere. For example. Network monitoring can pinpoint devices preventing subscribers to access data services. Operator’s answer In order to meet these various challenges. where they are. Therefore. if you’re desperately trying to download a document onto your phone while in a meeting. in the Philippines. The implementation is requiring large scale infrastructure investments. for instance. on any device at a fair price. A marketing department needs to perform multidimensional data service usage analysis to identify which data volume consumption and applications any particular customer segment is using. l 30 n Asia-Pacific III 2012 . for instance.
What’s out there? Currently. places further demand for increased bandwidth.S. Wellfleet. The true potential of wireless broadband is being recognised throughout the telecoms market. This is likely to increase even further with countries such as France and the US also reporting strong numbers and accelerated growth in the same report period. Roy Wittert is Vice President of Sales and Marketing for APAC in Cambium Networks.global broadband adoption is shifting to the fixed wireless domain. raising demand for broadband coverage. enhancing under-served areas but can also to expand wireless capacity for enterprises in congested areas and for backhaul of mobile traffic. cheaper Wi-Fi is already in use for offloading congested mobile traffic. increasing reliability and reducing signal loss. for enterprise premises and for hotspots fixed access. FWA can provide coverage across large service areas. Those players that make the right strategic moves today will be well positioned to become future market leaders. Roy also completed a Certificate in Marketing and Industrial Marketing and an Executive Development Program from the same University. such as Facebook and Skype. managed services and video conferencing. LTE Android Smartphone customers use more data on over-the-top (OTT) applications. Furthermore. in Johannesburg South Africa. particularly as there seems to be strong agreement that LTE is a ‘must’ in order to deliver high-speed data and meet the increasing demand on bandwidth capacity. Bay Networks in South Africa and Nortel and Motorola Solutions in Australia. Roy spent the past two years at Motorola Solutions as the ANZ sales lead for Wireless Network Solutions. before joining Cambium Networks in Oct 2011. VP of Sales and Marketing for APAC. he worked for Nortel Network for five years and then in Sales Management roles with 3D Networks. Unlike Wi-Fi. demand for high-speed and ‘always-on’ Internet access has never been greater. the need for increased capacity and speeds has subsequently never been greater. mobile broadband and the promise of LTE is a hot topic in the wireless industry. After immigrating to Australia in 1998. with China alone adding over three times as many IPTV subscribers in the first quarter of 2012 than any other country.Access technology affecting Billing Seizing Revenue Opportunities with Fixed Wireless by Roy Wittert. Fixed Wireless Access (FWA). U. with the majority of Internet users using mobile technologies to access online content and information . Moreover. It can be installed with speed and ease with FWA points ‘perched’ on existing mobile towers. now has 65. the fact that IPTV. particularly as fixed wireless deployments begin to gain significant momentum. developing the reseller. than their non-LTE 32 n Asia-Pacific III 2012 . with its point-to-point and point-to-multipoint capability is a complementary technology that typically relies on outdoor equipment. channel development and management. both in the business world and consumer sector. With mobile devices permeating consumers’ lives and the workplace. This is particularly useful for extending reach without having to lay cables. As mobile devices and demand to access online content from mobile proliferate. a video conferencing service provider. which is the most demanding application for high-speed broadband. He holds a degree in Electrical Engineering and a Post Graduate Diploma in Industrial Engineering from the University of the Witwatersrand. it’s also been reported by broadband analyst firm Point Topic that the Asian market is advancing the fastest.5 million subscribers and is expected to catapult over the next five years. Roy has 20+ years’ experience in the IT and Communications industry including distribution. Melbourne Australia. Meeting the bandwidth demand The growth in mobile devices has driven the use of mobile broadband and applications. the next few years will be critical as interest in fixed wireless broadband continues to grow to meet the escalating demand. judging from reports that show that global broadband access looks set to increase from US$274 billion in 2010 to US$416 billion in 2012 (which is an increase of 52 per cent in revenue terms) . so does the need for increased bandwidth. Volante and Vantage Systems. With vast new opportunities awaiting mobile broadband providers. Roy’s previous vendor experience encompasses SynOptics. With the introduction of intelligent mobile technology. Cambium Networks Asian IPTV is advancing faster than the rest of the world. Interestingly. such as Netflix and Hulu. such as Smartphones and tabletbased devices. distributor and wireless service provider channels. While LTE starting to roll. carrier sales.
will be at the forefront of the industry tomorrow. Mobile broadband is a major revenue source for mobile (wireless) service providers and we will continue to see the demand for these service growth from year to year. In order to succeed. Seizing the opportunity The challenge for the industry has been to develop solutions that are spectrally efficient and provide high bandwidth. FWA is a costeffective solution that has the capability to meet bandwidth demands. while being cost-effective and easy to implement. Similarly. Mobile providers are often deploying infrastructures in areas that lack fibre optic cable. cost-effective wireless distribution and access to information. keep competition at bay and feed bandwidth-hungry mobile devices. and some enterprise Internet services across the world via fixed wireless solutions. video and data-rich media. FWA can provide coverage across large service areas and long distances which can be installed with speed and ease. The FWA solutions offer the same high performance and spectral efficiency offer by LTE. These carrier grade last mile solutions provide wireless access connectivity to build fibre. and xDSL and cable cannot reach all businesses and homes. They can also deploy wireless hotspots for consumer business and use the fixed wireless infrastructure for backhaul. Looking at the market as a whole. Wireless service providers have already been providing mostly residential. enterprise and government fixed services in remote areas. mobile broadband providers need to take a collaborative approach going forward . xDSL. (Smart). Since fibre is expensive to deploy. or expand business and corporate networks. The PMP networks offer a broad range of wireless connectivity solutions that help enhance productivity. This service provider. or cable television lines. streaming video and VoIP applications. restaurants. has been deploying various solutions throughout the region for the past seven years.Access technology affecting Billing peers. developed by Motorola and now part of the Cambium Networks portfolio. Otherwise they run the risk of being left behind and will undoubtedly have to fight for customers. which providers can maximize. mobile broadband providers should strongly consider the option of deploying Fixed Wireless Access (FWA) systems for a number of reasons.they need to utilise both mobile broadband (LTE) and fixed wireless solutions. WiFi. In addition to offering both residential. giving credence to the notion that subscribers with a faster connection and lower latency will consume more data. wanted to create new revenue opportunities by rapidly expanding their network to offer data connectivity to locations where such services did not yet exist. rapidly deployable. is now also being widely deployed as Wi-Fi hotspots. there is added pressure on mobile broadband providers to act now rather than later. according to a new research report. For instance. With fierce competition in the global marketplace and the insatiable appetite for next-generation services. a mobile data solutions vendor. FWA is also less complex and cheaper than LTE. we are also seeing the popularity rising for fixed broadband services over xDSL and fibre and Wi-Fi hotspots. which involved connecting 25 cities in less than a year. Deploying FWA points on the same mobile broadband towers utilises them for a less expensive spectrum (or maybe even free `class licensed’ range) and provides an entirely new opportunity for the mobile broadband provider to generate revenue for fixed access services. fibre or cable. public places and as an offload for oversubscribed 3G networks. supporting voice. and in many instances is still viewed as the standard home operating environment. increasing reliability while reducing the possibility of signal loss. where LTE would be considered as a fixed wireless solution. However. With the right solutions. improve security and reduce operating costs. Those service providers who lead the way in the market today and act now. Netflix and YouTube . Hulu. The Philippines’ leading wireless service provider. FWA should be used as a complementary solution to xDSL. New revenue opportunities will arise by combining these services. The advantages of fixed wireless include the ability to connect with users in remote areas without the need for laying new cables and the capacity for broad bandwidth that is unimpeded by fibre or cable capacities. Inc. Final thoughts To meet market demand for next-generation services. The technology for wireless broadband access networks supports high- speed Internet access. Smart successfully achieved the world’s largest unlicensed wireless broadband deployment. Smart quickly broke open new revenue streams and increased its scalability for the future. they can charge a premium but use the same (and existing) mobile broadband infrastructures to deliver FWA systems. the fact that FWA systems are scalable and can be deployed quickly with incremental capital investment. offers further ROI benefits. conducted by Informa Telecoms and Media and Mobidia. Digicel in Papa New Guinea is complimenting its mobile services with an expanding FWA service offering. With ‘zero footprint’ installation. By using FWA systems as a complementary solution. which initially provided mobility inside homes and offices. who has 49 million subscribers on its GSM network. the overall data consumption from these apps was consistently higher among LTE subscribers than non-LTE customers. The Point-to-Point (PTP) and Point-to-Multipoint (PMP) networks will provide reliable. Mobile service providers can now utilise the same transmission towers that are used for both 2/3G and emerging 4G LTE services. found that most customers using the applications . video surveillance. Despite all the recent attention given to LTE and Wi-Fi Offload. In addition. Smart Communications. providers will reap the financial rewards by taking advantage of the untapped revenue opportunities that arise. Fixed Wireless does not typically need the same density of towers as the mobile networks as the service typically relies on outdoor CPE. The continued escalation of global broadband adoption and the need for increased speed and capacity opens up the possibility for fixed wireless to become the dominant technology in the industry. was a major contributor. With wireless PMP solutions. providers can also offer enhanced enterprise services in metro areas to complement their mobile offerings. cable and DSL network extensions to reach underserved areas. providing high performance Internet and VPN services to enterprises and government entities in central and remote areas alike. more mobile broadband providers need to realise that it is possible to improve customer loyalty and grow their customer base while deploying profitable fixed wireless solutions. The study. to provide broadband access in parks. rapid deployment and low TCO (Total Cost of Ownership).did so using WiFi connections. of which Canopy. SCADA (Supervisory Control and Data Acquisition).Dropbox. l Asia-Pacific III 2012 n 33 . This also enables providers to consider bundling such services with their mobile broadband service offerings.
including outdoors WiFi.Access technology affecting Billing Managing the new mobile data network The challenge of deploying mobile broadband systems for profit by Erwann Thomassain. He joined Amdocs in 2006 as Director of Marketing with the objective to establish and run marketing activities for Europe and LATAM. he held a number of senior sales & marketing positions at Telecommunication operators (Interoute Telecommunications and The Cloud Networks). Erwann Thomassain is Head of Regional Marketing APAC in Amdocs. most of the capacity increase will come from a radical rethink of the network structure. In many cases. which will combine different layers of cells. Nintendo. The British Library. Grupo Carso. O2. While the introduction of LTE and the allocation of new spectrum licences are important. these will evolve into heterogeneous networks. They will support a variety of air interfaces and spectrum bands. Network Equipment Vendor (Lucent Technologies) and Independent Software Vendors (Kenan Systems Corporation. supporting a variety of air interfaces and spectrum bands. primarily to chart out their optimal locations and reduce interference. In particular. Mobile data traffic. this will involve the use of millions of small cells to increase capacity and coverage to relieve the strain on the macro network. and the amount required to carry rising levels of mobile data worldwide. will increase at least 20 times in volume between 2012 and 2017. For the next 13 years. with major accounts such as British Telecom. Mc Donald’s. A Rethink survey shows that 80% of the surveyed carriers expect to have ten times more cells within five years. According to a recent survey of mobile carriers worldwide. In future. millions of small cells will be installed. However. these new approaches will also introduce a wide range of challenges in planning. despite their many advantages. Additional tools will be required to benefit from the small cell roll-outs. Erwann now manages the marketing strategy and operations for the Asia Pacific region at Amdocs. conducted by Rethink Technology Research for Amdocs. and to map capacity to returns on investment. Since then. He is a French national who has been living for the past 15 years in foreign countries and now resides in Singapore. Amdocs To close the gap between demand and availability of spectrum. managing and optimizing the Asia-Pacific III 2012 n 35 . Telefonica. which will include small cells and microcells as well as macrocells. There is a growing gap between the amount of spectrum and network capacity available today. BAA and Crowne Plaza hotels. Head of Regional Marketing for Asia Pacific. dominated by video growth. Erwann started his career as freelance consultant for a London-based Management Consultancy specialized in commercial due diligence for Mergers & Acquisitions operations. those remedies will deliver less than a third of the required additional capacity. he took on the responsibility to establish regional marketing functions throughout emerging markets. He was engaged in marketing in B2C and B2B industries.upgrading the air interface and adding new base stations and spectrum will be wholly inadequate to meet these challenges. Vodafone. Erwann has a degree in Tourism Management from Rennes University (France). Openet Telecom and Amdocs) in EMEA and Asia. over 80% of operators globally believe that small cells will be the first or second most important factor in meeting their capacity objectives between 2012 and 2017. a BA in Business Administration from Westminster University in England and an Executive Diploma in Strategy and Innovation at the Massachusetts Institute of Technology (MIT Sloan School of Management). Traditional methods of increasing network capacity . creating huge traffic and signalling burdens for the wireless networks. ‘Cellcos’ will have to rely on sophisticated planning approaches to maximize efficiency and automation.
36 n Asia-Pacific III 2012 . While hardware and spectrum updates remain important. and 20% to 50% macrocells. often as part of a HetNet. in the carrier survey. By contrast. Maximizing the benefits of the new networks With almost two-thirds of carriers expecting to see at least a tenfold increase in cell site numbers by 2017. no carrier expects to have a data network with microcells making up 50% or more of the total sites. however. Another important cell site issue is the integration of Wi-Fi into the base station. All this will require a rethink of how the network is planned and managed. eight from Europe. multi-technology network which can be managed in real time will be necessary to boost capacity while keeping costs down. Further out. standards-based methods will address only part of the issue and additional tools will be required to gain optimal benefit from the small cell roll-outs. but that figure will have been overtaken by systems with at least 50% small cells. Almost half of those carriers surveyed regard small cell logistics as the main challenge although this varies regionally across the globe. the five factors which were most commonly cited as the most crucial planning challenge all relate to cell sites. the largest markets in terms of carrier numbers. they will face unprecedented challenges in terms of planning.3G or Wi-Fi to start with. in order to retain customers. cognitive radio technologies may add to the cell’s flexibility and responsiveness. interference and power control. There are still. Across Asia Pacific. all taking the different available air interfaces into account for optimal performance. there will be rising availability of. Increasingly. the Middle East and Africa and seven from North America. a far wider range of techniques is necessary. new management capabilities will be introduced including enhanced scheduling. Network planning to ensure greatest coverage and efficiency was complex but one-off. small cell roll-outs with 80% of carriers surveyed expecting to have ten times more cells than in 2012. Key planning and performance challenges Operators have identified a range of planning challenges which will affect the performance and business returns of the new network. often in a different band. but in a way that delivers optimal cost/performance and supports key business objectives. operators are also deploying carrier Wi-Fi. since RANs were not dynamic. and by 2017 the most common topology will be a network with between 30% and 50% small cells. there is big variation in carrier strategies related to small cells roll-out. most of these smarts are achieved in software. 20% to 30% microcells. With that being said. offers capacity hot zones. By 2017. while 29% will have it incorporated in up to one-fifth of base stations. multimode small cells. carriers know that. It will need to support a wide range of new charging plans and applications. Asia Pacific will be the biggest driver of large-scale. SON and intelligent mobility management. Despite rising levels of automation. in Asia Pacific small cells are more reliant on LTE. performance measurement and management. they will need to invest in innovative tools and intelligence. A flexible. However. by 2017. Wi-Fi will also be integrated in many units as a standard feature. The latter will be the case at one in five ‘cellcos’. and to introduce new revenue streams like machine-to-machine. to use multimode products efficiently. location and time of day • Varying levels of quality of service according to application or subscription type. efficiency and quality of service. except one (integration with the core network). The results of the survey also shows that Asia Pacific will be the largest LTE market by 2017 but will be slower to adopt LTE-A. indoors or outdoors. They must ensure they do not just deliver additional capacity in an untargeted fashion. private devices but are now starting to be introduced into the carriers’ public networks. While some of these will be addressed to some extent by extensions to the standards. and a separate layer of small cells. This intelligence will be necessary to manage networks which are increasingly complex in terms of: • Range of air interfaces and spectrum bands supported within one system • Number and variety of cell sites • Number and variety of backhaul connections • Wide range of types of data traffic being handled • Constantly varying levels of activity according to application. In its simplest form. especially in LTE-Advanced. However. either as separate access points or integrated into cellular base stations. In the mobile broadband era. but for now. Traditionally. The traditional microcell is somewhat squeezed out of this picture over time. The rise of the small cell Small cells started as indoor. and how to harness a whole range of tools and services. 22 from Europe. which can reduce cost and allow for integration and migration between 3G and 4G without swapping out the cells. The capabilities to plan and manage small cell networks will be enhanced as the standards evolve. The first to be deployed are typically single-mode . operators need a new profit model for data. many operators who are cautious about widespread small cell roll-outs. mainly small cells. About 40% think they will have Wi-Fi integrated between 20% and 50% of cells by 2017. Back end tools to analyze and prioritize different types of traffic or subscriber were in their infancy.Access technology affecting Billing network. are focussed on cell issues. The challenges can be broadly grouped into the following categories: • finding sites in the right position and planning their location relative to each other sites and other networks • backhaul • reporting effectively to support intelligent data delivery • integration with the macro and core networks without interference. to get the full business and performance benefits. a multimode cell just combines multiple radios and offers standard interfaces to the carrier network. eight from the Caribbean and Latin America. Furthermore. only 12% expect to have no Wi-Fi integrated into their cellular networks. and adding new spectrum and/or macrocell sites. 15% will still have networks which are at least 50% composed of macrocells. Asia Pacific and Europe. carriers would add capacity and speed to their networks by upgrading the air interface. there will be a far greater emphasis on intelligence throughout the network to maximize capacity. but the standards will provide only a subset of the tools operators will require. By 2017. Many carriers will opt for a heterogeneous network. The survey covered 21 carriers from Asia Pacific. From 2013. and trust in. As traditional voice and messaging revenue streams decline. As well as moving rapidly towards networks which have a large component of small 3G/4G cells. in which a macro layer provides wide umbrella coverage. As the graph in Figure1 shows.
The articles essentially examine the influence that ICT products and services have on the way people live and do business. com/connectworld. Cost efficiencies Another key factor is that operators need to increase their RAN and backhaul capacity massively . Close behind came backhaul for small cell sites.facebook. The new topology of the RANs will be a catalyst for new techniques. such as RNC data feeds. to deliver the greatest possible capacity where it is needed. ICT News and more at www. according to the survey. As a result of all these concerns. in terms of impact on the business targets Securing sites in the best locations was rated as the most urgent challenge by 24% of respondents.Access technology affecting Billing hikes which they enjoyed when deploying previous network upgrades. The world’s top ICT decision makers express their opinions in Connect-World. while distances of under 50 meters add little capacity but plenty of interference. Asia-Pacific III 2012 n 37 . while OPEX constraints will be even tighter.but with CAPEX and OPEX budgets that are under intense pressure. and up to 20% in the RAN. l Figure 1: Carrier ratings of the top planning challenges associated with small cells. with a small cell radius of about 30 meters. OPEX targets are even more rigorous. cited by 12% as their most pressing challenge. to directly access all past and present Connect-World articles. ICT Industry press releases. and to map capacity to returns on investment. com/#!/ConnectWorldICT) and Facebook http://www. is now available on Facebook and Twitter.com. for FREE.5%) and the logistics of identifying and acquiring the sites (17%). Connect-World is now available to follow on Twitter (http://twitter. That can support 100% capacity gain for the macrocell. especially with the huge numbers envisaged. Some 18% believe this is achievable in the RAN and 24% in backhaul. the cost of acquiring small cell sites (19. it is still possible. A recent study by Orange indicates that in operator’s tests. They use clear. These factors will make it essential to the business case that the new networks can be managed flexibly and efficiently. Instead. with many carriers investing in new topologies precisely to save on running costs.connect-world. followed by core integration (21%). All these considerations will create major planning challenges and several interrelated developments need to happen to instil full confidence about massive small cell roll-outs. The typical operator will have only a 5-10% increase in its backhaul CAPEX budget. and with a high level of automation . and for a shift in how networks are planned and measured. Indeed. English to discuss how ICT helps shape regional and global development. 45% of operators expect to invest in new tools and services which are specifically optimized for small cell networks over the next four years. the optimal distance from the macrocell is about 200 meters. with resulting interference risks.hence the intense interest in tools to reduce the manual overhead of running networks and to allocate capacity more efficiently. only 6% expect to spend more than 20% a year extra on RAN OPEX. the reports highlight the most important ICT trends and issues influencing socio-economic growth. Conclusion Carriers’ budgets are under intense pressure and few will have the same kind of CAPEX Connect-World now on Facebook & Twitter Connect-World.ict Also. as well as improved quality of experience. Lower unit costs for cell sites and backhaul will only address part of the challenge. with a focus on methods that deliver high degrees of local accuracy. The situation may be further complicated when several operators have cells in the same neighbourhood. The most commonly cited are: • Planning and dimensioning tools specifically geared to small cells • Mature self-organizing and selfoptimizing network (SON) tools • Standards for SON • Affordable small cell backhaul options • Legal framework for leasing small cell sites. eLetters. Other issues include the small cell’s proximity to its neighbours and to cells run by other operators and mapping the cell’s position as accurately as possible to peak areas of data usage. a substantial number of operators are looking for an actual reduction in OPEX bills by using more modern technologies. While 30% of carriers aim to keep their site OPEX stable and 18% to reduce it. non-technical.by more than 50 times according to almost one-quarter of cellcos . operators will have to rely on sophisticated and flexible planning approaches to maximize efficiency and automation. With separate editions for each of the world’s regions. The single most decisive issue in ensuring that a small cell network delivers optimal benefits is the location of the cell sites. the world’s foremost discussion forum for leaders in the ICT industry.
From collaboration to connectivity.nabshow. and how the Mobile Experience is energizing the transformation of Media & Entertainment. fueling the ﬂight from appointment-based viewing. It’s a Marketplace Energized…addressing broadband challenges related to the distribution of online video and streaming media. including solutions to harness big data and capitalize on the cloud. continue your evolution at NAB Show® with technologies to Meet Expectations for OTT delivery of dynamic content that thrives in Multiple Environments. Register today! Us eC od eP A1 0 in North Hall: CONFERENCES April 6 –11. 2013 / EXHIBITS April 8 –11 Las Vegas Convention Center / Las Vegas. Second screens and Social TV are enhancing television with interactive content and applications. Nevada USA www.com .It’s all about ME. Give yourself something to smile about. Broadcasters and new services alike are making more programming available.
This brings us to charging and billing. According to analyst firm Canalys. realtime and prepaid charging for content and cable. During his tenure he grew the Americas to be half of CSG’s revenue base and was responsible for numerous strategic initiatives and new customer acquisitions. Nowhere is this more true than in emerging markets. While transforming analogue TV to digital to free up spectrum. Apple and other content providers are competing for consumers’ cash. Consumption growth and device variation have significant implications for both Communications Service Providers (CSPs) and cable operators alike. He was appointed VP and Managing Director APAC in March 2011. All this needs multi-device. Ian’s experience spans regional operational management. the Chinese smart phone market grew 199 per cent year-on-year and 32 per cent compared to the previous quarter. in emerging markets consumers are even more likely to view TV on other devices. with the largest of these in our region . At the same time. corporate strategy. Additionally. but dramatic changes are afoot in the way in which it is consumed. the US accounted for 16 per cent of the 158 million smart phones shipped during the period. cable and mobile operators are facing challenges from over-the-top players. He has a BA in Banking and Finance. By comparison. even the most casual telecom and cable industry observer is acutely aware of the evolution of the delivery and consumption of content. and a powerful billing system that can follow the marketing departments’ whims. was appointed VP Caribbean and Latin America in January 2008 and VP Americas in October 2008. CSG International Huge opportunities are opened in both India and China. while using the networks that the operators have invested in and built.leading the way. As a recent survey shows.China and India . CSPs will need to ensure that their charging and billing does evolve to meet the new challenges and opportunities. Similarly. the over-thetop (OTT) players pose a major threat. China accounted for 27 per cent of global smart phone shipments in the second quarter of 2012. enabling pre-pay for some services and post-pay for others can win customers with their flexibility. Globally. cable companies see their core revenues coming under threat as they lose market share to OTT content providers and fixed line operators aggressively marketing IPTV services bundled with their voice and data services. Asia-Pacific III 2012 n 39 . multi-technology packages that are designed to encourage loyalty. competing on their traditional playground. Hybrid accounts. due to recent regulation that encourages cable and telecommunications convergence. along with TV Anywhere. Not only is every market experiencing growth in content consumption. Cable Operators see revenues leaking to OTT while Fixed Line Telcos market IPTV aggressively. Vice President & Managing Director (Asia Pacific). an MBA in international finance and is a UK Chartered Accountant. shared data plans etc. He joined CSG International in February 2006 as CFO. For CSPs. these operators also gain the opportunity to offer communications in multi-play deals. These days. with 42 million devices reaching the market. there are major regulatory changes that have even more major impact. by enabling bundling. In the cases of both China and India. having held senior management roles at various companies including BSkyB and Ernst & Young. finance and marketing.and quad-play services becoming a reality.Access technology affecting Billing Telecommunications and Cable Convergence: Opportunity Knocks for India and China by Ian Watterson. To respond to the huge opportunities and significant threats. Ian Watterson is the Vice President & Managing Director (Asia Pacific) CSG International. Americas. Google. Ian has over 15 years’ experience in technology and telecommunications management. with triple.
The good news is that operators in emerging countries such as China and India have an opportunity to learn from. to view television content. Film and Television ( SARFT ) is paving the way for cable TV operators to enter the telecoms market.or self-care display . Networks are being updated and a wide range of mobile devices being introduced to cater to different market segments. triple and quad-play bundles and OTT content delivery models. Moves like Comcast’s enhance consumer loyalty and encourage them to adopt an ever-increasing range of services. Such initiatives must be backed by technology. as part of a package designed to encourage loyalty amongst consumers that are regarded as least likely to be loyal. It will be fascinating in the near future to see which service providers grasp these opportunities. CSPs and cable companies in both China and India are knocking on the door of a huge opportunity. but they will need to rise to the challenge and transform the way in which they offer new services and support customers. technical and commercial trials of triple-play services will take place over the next two years across 12 Chinese cities. Effectively packaging and charging for bundles is not easy. as a recent Accenture survey discovered: 60% of surveyed CSPs cited billing for bundled services as a major concern. Consider Comcast. For CSPs. indeed. Pre-paid and pay-per-view offerings. It is extremely important to make it easier to select from that broad range of services. as is the ease of understanding the bill . In the telecommunications sector. for example. new services and new convergent offerings. transform their business models. subscription and interactive television .and not just from existing cable companies. with ‘TV Anywhere’ becoming a stock phrase. and acquiring content delivery platforms and electronic programme guide databases. Policy management will also play a key role in charging and billing. it will be equally fascinating to see how flexible charging can be used to fully grasp these opportunities. charging and billing will play a crucial role in the monetization of the new services.and the whims of the marketing department. Therefore. with charging and billing again at the forefront. the cable industry is seeing dramatic growth as a result of rapid changes in consumers’ digital consumption behaviour.to a hungry audience. In China. and then ‘leapfrog. They will require upgrading existing cable and wireless networks. Enabling these offerings is not easy. With charging and billing evolving to meet the demands of new business models. l 40 n Asia-Pacific III 2012 . Real-time charging will become increasingly important in the cable space as it is already in the telecommunications sector. such as smart phones and tablets. Both China and India have been opened to the opportunities offered by the convergence of cable and telecommunications by legislation of their respective governments. set-top box subsidies. So. bill shock and roaming regulations have cut margins. Charging algorithms need to be flexible enough to adapt to new business models . and regulatory uncertainty in countries like India has stalled investment. the percentage of users accessing the internet via a mobile handset increased to 69. For charging and billing. Importantly. developing and manufacturing universal set-top boxes. To move from today’s analogue video services to a digital television offering with voice and data services. high speed data and content offerings to accommodate a wide variance in customer usage patterns and preferences. enabling parental control over both content and spend. are growing much closer than would previously have been thought possible. the State Administration of Radio.by the consumer. are at an interesting phase. all is not doom and gloom. It is vital that charging and billing can support diverse subscription models. favourable demographics such as a rapidly expanding .Access technology affecting Billing CSPs and cable companies also have something in common on the regulatory front. in both India and China.middle class in emerging markets have led to impressive growth. regardless of source or format. the emerging market giants. operators who can manage their charging and billing as well as content delivery networks and digital locker technology have an opportunity to provide content . The two sectors. the ability to charge for any event. is of course critical.’ those in more developed countries. despite the government’s tight control of broadcasting policy that will most likely see mobile TV services adopted fairly late in the game. In India. Comcast must deliver content on the devices its customers are demanding.in a wide variety of formats on a wide variety of devices .3 per cent this year (BMI. India’s next generation cable operators will need to create a whole host of new tiered bandwidth. with the Chinese government’s blessing. In the cable world. are likely to be used to entice the wealthier consumers who nevertheless are concerned about budgetary control. Bundling is vital. enabling prepay for some services and post-pay for others. However. thanks to regulatory changes which enable cable operators to deliver telecommunications services. In China. Now. cable operators have been unable to deliver telecommunications services alongside their core video offerings. are likely to become common. In China. In order to keep viewers. In India. CSPs and cable operators will need to move quickly to take advantage of the opportunity. For example. 3G continues to be the main focus for mobile operators particularly in urban markets. for example: it is the largest cable TV provider in the USA who has recently embraced the model of delivering video to its customers onto their iPads. In support of this transformation. Hybrid accounts. A Global TV Replacement Study released recently by NPD DisplaySearch found that consumers in emerging markets were even more likely to use other devices. India and China. China Telecommunications Report Q3 2012). Digitizing the cable platform allows the release of spectrum for hundreds of channels. enables multi-play services and stimulates services such as pay-per-view. moving from analogue to digital cable by 2014. operational and business support systems (O/BSS) will need to ‘step up to the plate’ to support the new business models. the Ministry of Information and Broadcasting is enforcing the move from analogue to digital cable across the entire country by 2014. thanks mainly to legislation. new services and new consumers.and increasingly affluent .
Dubai. 14-18 October Drawing on ITU Telecom’s unique cross-sector reach. network and seek real-life solutions to real-world challenges . COLLABORATE AND CREATE CHANGE. UAE. world2012.20 12 SEE YOU IN DUBAI ITU TELECOM WORLD 2012 YOUR OPPORTUNITY TO CONNECT. share knowledge.int . World 2012 is where the international ICT community meets to debate.itu.creating change for the betterment of global citizens everywhere.
Operators who opted for 4G technology early with WiMAX. the further the distance. can support explosive data consumption which would crash a 3G network in no time.lightreading. He is a pioneering member of Global TD-LTE Initiative (“GTI”) and a WiMAX Forum Board Member. if the seven billion people go online at the same time.senzafiliconsulting. Under his dynamic leadership. charges differ according to the duration of your call. the region’s largest Internet service provider during his tenure. Broadband’ for his efforts is pushing the boundaries of 4G broadband penetration. despite the many free services. Michael was the CEO of TMNet. Change is in the air. Applications like Whatsapp. That is how conventional telcos profit from the voice business. Prior to joining P1. ahead of the region. Only a fraction of the time is used for talking on the phone. plus during peak or non-peak hours. Skype.com/Blog/tabid/64/articleType/ArticleView/articleId/69/TDD-innovation-in-the-RAN. CEO. no one will have a clue on how to go about it. P1 has grown from zero to RM1. The Peak Magazine dubbed him the Wizard of Wireless and Mobile World calls him ‘Malaysia’s Mr.3 billion (US$371 million) in market capitalisation. In fact we all changed our behaviour . 000 subscribers and over 50% population coverage in less than four years. with over 20 years of ICT industry experience. For international calls. Unlike Voice networks that can be dimensioned reliably. remember how we used to get charged when calling our relatives next door or to other states? For a domestic call. He passionately believes in enriching lives through the power of high-quality. I am a typical example of this change . so no one knows the effect of migrating to 4G. became the first operator worldwide to have Data ARPU (average revenue per user) higher than its Voice ARPU in 20101. the ability of Data network to withstand huge volumes is anybody’s guess. Still. However. He is an Electrical Engineer by training with a Master’s degree in Business Administration. Today. the world’s largest 802. Google Talk and many more.now charging is quite different. About 90% of my mobile phone usage is on reading and typing. offer us cheap or even free instant messaging and voice calls. Michael leads one of the world’s leading 4G telecommunications companies .7 billion losses in SMS revenue in 2010 and US$13. Technology advancement brings us amazing benefits such as free online communication tools. Packet One Networks (Malaysia) Sdn Bhd Conventional telco charging used to be by Time and Distance . I noted the phenomenon that we spend more time reading than talking on our phone. with TD-LTE rolling out in Japan and in China. traditional telcos will know how exactly to dimension the network. Research firm Ovum indicates that consumers’ increasing use of IP-based social messaging services on their smartphones cost telecom operator US$8. outside Korea. with Michael at helm. Now they are progressing to upgrade WiMAX to TD-LTE.more reading/typing than speaking. the more expensive it is. Michael was also previously Senior Vice President of Branding and Market Development for Celcom.Time and Distance. US research house. apart from distance.16e 2. How does a conventional telco make money? It is based on two fundamental aspects . it’s a disruption! by Michael Lai.asp?doc_id=218787& 42 n Asia-Pacific III 2012 . In Japan. Senzafili Consulting pointed out that Softbank. 1 2 After the launch of 3G in 2005. the third largest mobile operator in Japan by number of subscribers.Access technology affecting Billing 4G technology is not an evolution. which is gearing up for 4G. and Marketing Director for Oracle Malaysia. Conventional telcos are well aware http://www.9 billion in 2011.com/document. Michael Lai is the CEO of Packet One Networks (Malaysia) Sdn Bhd (“P1”). Data ARPU has now exceeded Voice ARPU.heavy instant messaging and data user. If the seven billion people on Planet Earth start calling each other concurrently using the mobile phone.aspx http://www. high-performance 4G broadband connectivity. TMNet was transformed into a billion-dollar enterprise with over 1 million subscribers within only 18 months. with the challenge to develop the startup right from ground zero.3GHz 4G WiMAX network. P1 is now the global Malaysian Brand. Viber. These free applications are threatening telecom operators’ bread and butter.P1. with close to 400.
virtually limitless. This telco’s 4G WiMAX network is designed to provide high-speed and high-capacity broadband from the start. Therefore. One classic example is the new iPad which supports LTE in the US. It is now just a matter of time for the whole ecosystem to ramp up and that is happening very soon. which still uses circuitbased technology. the momentum for TD-LTE devices proliferation is quickly taking shape. However. “You ain’t seen nothing yet”.unlike 4G network architecture. LTE will bring true super high-speed 4G broadband.Softbank has already commercially launched its TD-LTE network in Japan. if the 7 billion people on this planet start calling each other concurrently. l Asia-Pacific III 2012 n 43 . MIFIs and even smart robots. Operators in America such as AT&T and Verizon are now facing a challenge of the surge of data that will potentially crash their LTE network2. On the devices front. This is a fact . no one will know how exactly to dimension the network. As I always say.Access technology affecting Billing of the necessary changes that must take place. if the 7 billion people go online at the same time. rolling out WiMAX gives the Company lead time in All-IP data management. On average. They range from USB dongles. This local telco’s existing business model is being tested and modified since its inception to cope with the explosive data consumption by customers. the Company has successfully demonstrated the ability to transition a WiMAX network to a TD- LTE network in just 30 minutes via a mere software upgrade. TD-LTE will be the springboard for the local telco company to tap into true mobile broadband. decision makers are sceptic between when and which strategy to reinvent the business model. using WiMAX. “Broadband is not a privilege. GTI (Global TD-LTE Initiative) has over thirty devices developed and tested. the telco’s parent company is developing TD-LTE devices. This would crash a 3G network at any point in time because it is not designed to withstand such massive loads of data transmission . However. In a media showcase in April 2011. a new. In other words.Michael Lai. Regulators are playing a crucial role where the policies will have a direct effect on the operators’ business model. tablets. it’s a right for all” . Take an example of a local green-field operator who started up directly from an all-IP (Internet Protocol) technology. are we ready for the future? As Ronald Reagan once said. traditional telcos will know how to handle the network. This is simply because the users may access to multitudes of applications and content sources from the Internet on multi-devices. mobile routers. is 3G to 4G an evolution? More likely it’s a Disruption! So. level playing field for everyone. Its business case differs from the 3G incumbent’s. Reliance in India just firmed up its technology partner and many more deployments are expected in the pipeline. every one of its users consumes 17GB of data per month. as well as the Machine to Machine communications market. The technology is ready to show off its capability and operators must be ready to take up the challenge. China Mobile having trial in six major cities in China. Globally.
44 n Asia-Pacific III 2012 .
invention and award-winning products. YourNextBigIdea.000 skilled ICT workers and boast the highest percentage of post-secondary graduates in the G7. enabling innovations to move quickly from idea to your supply chain. Businesses work in collaboration with educational institutions and government. Writers or Auditors Technicians or Database Administrators 7% Managers Paid for by the Government of Ontario.BIG IDEA IS YOUR NEXT HERE’S WHY ONTARIO. Make Ontario your next big idea. We have a diversified talent pool of more than 300.ca/SourceICT 23 % 36 % Business or Systems Analysts are Engineers or Programmers across all industries in Ontario 22% 13% Designers. . Source your solutions from where innovation is happening. CANADA Ontario has an impressive history of innovation. From wireless communications to digital gaming to mobile app development – Ontario’s information and communications companies are deﬁning what leading edge means.
bt. Impress your customers.com/globaltelecom .Welcome to the world of IP interconnection! Reduce your costs. Talk to us today and we will help you succeed in your markets! www. Innovate faster. With the Global IP Exchange from BT you can enjoy the benefits of seamless interworking for IP voice and data across networks worldwide.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.