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The Coming Carrier Network

al-lucent

One comment

  1. James Middleton 17/04/2009 @ 5:11 pm

    Fisseha Mekuria Says:
    June 10th, 2008 at 11:59 am

    The following two questions are for the debate:

    1- How does the “Coming Carrier Network development” affect the development of innovative mobile Services in developing countries?

    2- Can developing countries benefit from the new outsourcing business models?

    Best wishes,
    Fisseha

    Andreas Herzog
    VP Network Operations
    This is my response:
    It is true and obvious that outsourcing solutions need to generate different value propositions for emerging markets than for developed markets. Nevertheless outsourcing solutions are very flexible in respect of values and therefore are also very relevant for emerging markets. I just use a few examples we currently see: Strong growth of a give operator like in India, control and streamlining of several different operators being acquired by an operator group like in ME/Africa, etc.

    So yes to your second question, lots of benefits from outsourcing solutions also for emerging countries.

    Concerning your first question, I would say, outsourcing solutions again help the operator to concentrate on their real core business like f.e. development of innovative mobile services and get a strong partner to implement those.

    Best regards

    Andreas

    Brendan Dunphy Says:
    June 10th, 2008 at 12:25 pm

    Does Alcatel Lucent bring pre-existing partner relationships (third-party brands, content, licenses, applications etc)as a part of the offering – an eco-system that can be used to accelerate an operator’s move to the next level rather than simply a better way to manage what they do today?

    Andreas Herzog
    VP Network Operations
    This is my reply:
    First of all Network Operations Outsourcing still has an extremely high degree of customization, which rules out pre-existing partners as a mandatory part of our solutions, but we have partnerships mainly in following domains:
    (1) areas, which are not our core-business and competence like f.e. ERP systems or building facilities management
    (2) areas, where we may not be able to generate the required synergies, like f.e. civil works, cable laying or
    (3) tools used to perform our managed services.

    Best regards

    Andreas

    David Roofer Says:
    June 10th, 2008 at 12:39 pm

    Hi. How can a service provider guarantee that
    there will be no conflicts of interest should they manage the services of two or more carriers from the same market? And, is this something that
    happens often?

    Andreas Herzog
    VP Network Operations
    Yes, it happens quite often, is even the objective of outsourcing, that several customers in the same market are served by one managed services provider, to achieve maximum savings.

    The way to handle potential conflict of interests is via a clearly defined contract governance structure, which clearly defines the responsibility split and the targeted services and related key performance indicators between the operator and the managed services provider.

    Best regards

    Andreas


    Habibah Says
    :
    June 10th, 2008 at 12:40 pm

    1. How do you described the successful of business of outsourcing.

    Andreas Herzog
    VP Network Operations
    A successful outsourcing project delivers price, quality and performance as expected by the customer and agreed with the supplier, generates opportunities and motivation for the related work-force and strengthens the managed services provider in its local and global managed services position, so a real WIN-WIN-WIN situation.

    Best regards

    Andreas

    Sridhar Says:
    June 10th, 2008 at 12:51 pm

    Can you tell us if network planning / capacity decisions are continuing to be made by operator client or by the outsourcing SI?

    Andreas Herzog

    VP Network Operations
    This is my reply:
    We see more and more the trend towards end to end processes outsourcing, which includes a major part of planning, but a core planning team doing the long term network evolution and design is usually kept by the SPs.

    Best regards

    Andreas

    Sridhar Says:
    June 10th, 2008 at 12:52 pm

    The full outsourcing business model that is now being discussed, is interesting. Will it then convert every such operator into an MVNO?

    Andreas Herzog
    VP Network Operations

    A very good question, actually yes, but let’s get the terminology right: The term MVNO has been invented, because deregulation on the mobile market attracted new operators, who decided not to run their own network infrastructure. So if you want to call a former MNO, who decides to focus on serving customers and therefore gets rid of a big burden, his network assets, virtual, then you are right. I would rather use the terms Retail and Wholesale. So this operator becomes a Retail Operator.

    Best regards

    Andreas


    Patrick Says:

    June 10th, 2008 at 1:03 pm

    Two questions :

    1. How much can the benefit be for operators in a very small market like Hong Kong? Would it be difficult for outsourcing partners to build up scale of operation in a small market?

    2. I am sure outsourcing has its many advantages. How about some the the potential pitfalls? We have seen examples of companies reverting back to their own operation, especially in IT outsourcing. Can you comment on this?

    Andreas Herzog
    VP Network Operations
    1) The size of the market is not really the criteria to generate value for the operator. We have done this in several small countries like Austria, Switzerland etc. A more important criteria is the scope of work. In case of being too limited there is not a lot of room to find improvements, synergies etc.

    2) I run a seperate workshop of 6-8 hours with customers to address the question of pitfalls, but let me address the key criteria for a successful outsourcing – and if not done properly – pitfalls: Comprehensive governance model, flexible but simple pricing model, clear measurable key performance indicators.

    Best regards

    Andreas

    marione Says:
    June 10th, 2008 at 1:03 pm

    Granted that vendors will play a more pivotal or crucial role to the operation of service providers, how would SLAs be affected by this new business model?

    Andreas Herzog
    VP Network Operations
    Not sure I got your question right, but assume you talk about a potential conflict of interest between being an equipment vendor and a managed services provider to the same operator: An important criteria for a successful network operations outsourcing agreement is that the whole solution is vendor and technology agnostic. Meaning that the service level agreement is structured around processes, interfaces and performance criteria independant of the technology and vendor. Obviously there are impacts in the detail like different performance indicators for 2G and 3G. But there should be no impact, if the given technology is by coincidence produced by the same vendor, who provides the managed services or not. This by the way differentiates an experienced, professional managed services provider from an unexperienced one.

    Best regards

    Andreas


    Humberto Says:

    June 10th, 2008 at 1:09 pm

    Do you envisage a future when the likes of Ericsson, AL and NSN manage the lions share of all carrier services?

    In this case, how can carriers differentiate themselves?

    Andreas Herzog
    VP Network Operations

    Well, for several operators this is not future, but reality. And interestingly these are the ones, who are in the leading positions in respect of customer acquisition and services now. Because they have recognized that operating a network is not at all a differentiating factor anymore. Which end-customer cares, who operates the network ? End customers want to have a good quality (better guaranteed by an outsourcing agreement with clear SLAs and KPIs) and creative service and pricing bundles (which the carrier’s management now can focus on, as the network is run by somebody else).

    Best regards

    Andreas

    Mohsen Malaki Says:
    June 10th, 2008 at 1:21 pm

    Is there any quantifiable financial results from any case studies that ALU can share with us regarding the financial impact of managed services and outsourcing in general (for any type of outsourcing) on a telco that has adopted this approach? whether in developed or emerging markets. Thanks.

    Andreas Herzog
    VP Network Operations

    There are several studies on the market, and I am sure Informa is able to provide some of them. We obviously cannot share the financial benefits we provide to our customers as they are obviously confidential and under strong NDAs.

    Best regards

    Andreas


    Eddie Says:

    November 19th, 2008 at 11:34 am

    Andreas Herzog
    VP Network Operations

    By checking the components, which make up a Full Outsourcing, where none of them is new, just the combination:
    (1) Check the references in outsourcing (without involvement of assets) to see the performance in the services part
    (2) Check the financing consortium on their track record to successfully finance telecom networks

    Best regards

    Andreas

    For Managed Services, if you are the first to do Full Outsourcing, then how to satisfy your points on “Solid References” and “Past Delivery” in selecting the service provider?

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