2. Telecom Convergence Report
Contents
1. Definition & Scope of Telecom Convergence .............................................................................. 4
1. A) Definition .............................................................................................................................. 4
2. Myths regarding cross domain convergence: ................................................................................. 6
3. Scope ............................................................................................................................................ 8
4. Different types of convergence ...................................................................................................... 9
4. A) Cross Industry Convergence: ................................................................................................. 9
4. A.1) Telecom and Health Industry .......................................................................................... 9
4. A.2) Telecom and Automobile Industry ................................................................................ 10
4. A.3) Telecom and Banking Industry ...................................................................................... 11
4. B) Cross Domain Convergence: ................................................................................................ 12
4. B.1) Changes from convergence ........................................................................................... 14
4. B.2) Leading player strategies............................................................................................... 15
4. B.4) Role of Broadband ........................................................................................................ 16
4. B.5) Role of Operators .......................................................................................................... 18
4. B.6) Convergence of Networks and Technology .................................................................... 18
4. B.7) Key Challenges .............................................................................................................. 20
4. C) Post-paid prepaid ................................................................................................................ 20
4. C.1) INTRODUCTION............................................................................................................. 20
4. C.2) CONVERGENCE BILLING: FIVE FUNCTIONAL LAYERS ...................................................... 22
4. C.3) PRE/POST SOLUTIONS & ARCHITECTURES ..................................................................... 23
4. C.4) MODULES OF CONVERGENT BILLING ............................................................................. 26
4. C.5) OFFERINGS.................................................................................................................... 30
4. D) FMC..................................................................................................................................... 33
4. D.1) NEED FOR FMC: ............................................................................................................ 35
4. D.2) FMC ECOSYSTEM .......................................................................................................... 36
4. D.3) FMC SOLUTIONS ........................................................................................................... 38
4. D.4) FEATURES REQUIRED FOR FMC SERVICES ..................................................................... 42
4. D.5) FMC CHALLENGES ......................................................................................................... 43
4. D.6) FMC SWOT ANALYSIS .................................................................................................... 44
4. D.7) Offerings under FMC:.................................................................................................... 45
5.) Different facets of convergence: ................................................................................................. 47
2
3. 5. A) CONTENT CONVERGENCE .................................................................................................... 47
5. B) Service Convergence............................................................................................................ 49
5. C) Network Convergence ......................................................................................................... 54
5. D) Device Convergence ........................................................................................................... 57
6.) Demand of Convergence ............................................................................................................ 60
7.) Billing Vendors analysis .............................................................................................................. 66
7. A) Strategic future of Billing ..................................................................................................... 67
7. A.1) Amdocs......................................................................................................................... 68
7. A.2) Ericsson ........................................................................................................................ 71
7. A.3) Comverse...................................................................................................................... 73
7. A.4) Alcatel Lucent ............................................................................................................... 75
7. A.5) Oracle ........................................................................................................................... 76
7. A.6) Intec: ............................................................................................................................ 77
7. A.7) Convergys: .................................................................................................................... 79
7. A.8) Huawei: ........................................................................................................................ 80
7. A.9) ZTE ............................................................................................................................... 82
7. A.10) Nokia Siemens Network .............................................................................................. 84
7. A.11) Parameters for vendor selection ................................................................................. 85
8.) Unique Identification .................................................................................................................. 86
8. A) UID: Ease of implementation ............................................................................................... 86
A Unique Identity Bill ............................................................................................................... 86
Convergence............................................................................................................................ 87
Sharing of Information ............................................................................................................. 87
8. B) Benefits to operator ............................................................................................................ 88
8. C) Benefits to Customer ........................................................................................................... 90
9.) REGULATORY ISSUES OF CONVERGENCE .................................................................................... 95
9. A) INTRODUCTION ................................................................................................................... 95
9. B) LICENSING REGIME .............................................................................................................. 96
9. C) INTERCONNECTION IN CONVERGENCE................................................................................. 98
References .................................................................................................................................... 106
List of Figures ................................................................................................................................ 108
ABBREVIATIONS ............................................................................................................................ 110
3
4. 1. Definition & Scope of Telecom Convergence:
1. A) Definition
For so many years, convergence has been far more concepts than real actions in the industry
environment but now scenarios are changing and ―the any factor‖ is coming into existence.
―The Any factor‖
Anytime, anywhere, any service on single device.
Everyone in marketing domain talks about 4 P‘s of marketing but now with convergence this 4 P
concept has also entered in telecom environment.
1. Pipe (Network)
2. Pod (Device)
3. Panel (User Interface)
4. Program (Content)
Figure 1 :4 P's in Telecom
4
5. Simply convergence is merging of different future visions at a single point.
Broadly convergence can be classified into 2 types
1. Vertical convergence: It refers to integration between different levels of same industry like
advertising, infotainment and web provided by single content provider. Similarly cellular
services, fixed mobile services, DTH etc. services by same provider.
2. Horizontal convergence: It refers to integration of different industries like delivery of content,
device and different services by a single provider.
Figure 2: Horizontal and Vertical Convergence
5
6. 2. Myths regarding cross domain convergence:
The opportunities in the new world of convergence are enormous. But so are the risks. When it comes
to choosing convergence strategy operators must be able to separate fact from fiction, myth from
reality.
Myth 1: Convergence is about controlling costs and driving efficiencies.
This is true but it is by no means the whole story Convergence is also about giving subscribers the
personalized services they want. Today‘s customers are more mobile, more demanding and more cost-
conscious than ever. They want instant delivery of services, dynamic and flexible real-time offers,
personalized packages and control over spending – and they want it now. Converged billing is the
way to give these customers everything they want, with the freedom to flip between services and
payment options in real time. Offering this level of convenience and personalization can provide a
distinct competitive advantage. And it requires a unified customer view that centralizes all ordering,
billing and customer information – eliminating duplication, synchronization and other data issues
associated with conventional billing systems.
Myth 2: Standalone prepaid only or post-paid only vendors possess the expertise to achieve full
convergence.
Today‘s standalone prepaid and post-paid vendors may appear to offer the functionality required in a
converged solution but, in reality, they are inherently incapable of creating this environment on their
own. While these vendors can offer specific point solutions – either prepaid or post-paid – they may
not possess the production experience to handle all aspects of convergence. For example,
transforming a post-paid system into a converged system may require the post-paid vendor to
undertake a costly and risky project. They will need to build prepaid capabilities with complex, real-
time, high availability functionality, that they may not have the know-how to really understand.
Another common stopgap measure is for prepaid vendors to partner with other suppliers to provide
back-end financial management for true end-to-end functionality. These multi-vendor partnerships
can result in a patchwork of systems that creates more problems than they solve.
6
7. Myth 3: Implementing a convergent solution can mean years of potential disruption to the
operator’s business.
In truth, operators have the freedom to migrate to convergence as slowly or as quickly as they like
with minimal disruption to existing business. While some operators are ready to immediately move all
of their existing customers to a converged solution, many prefer a phased approach. Some choose to
phase by customer segment, others by service type. Still others introduce new converged capabilities
– such as personalized rating or a common self-service portal across all service types – without
disrupting existing billing processes. A phased approach is feasible when the operator has chosen a
convergence partner with a modular, pre-integrated platform and with proven deployment expertise.
Using a modular platform that has robust functionality already ‗built in‘ enables an operator to
execute a transformation in a timeframe appropriate for its business. This can help distribute capital
costs over time, reduce risks and ensure that the operator‘s initial goals can be validated before
moving on to more complex or comprehensive convergence adoption.
Myth 4: Purchasing complete convergence today is overbuying. The operator is better off
making a short-term decision today and dealing with longt erm problems later.
One purchase decision can solve both problems. This strategy of planning for growth requires a
modular product-based environment that can solve business needs today while offering a growth path
to meet tomorrow‘s demands. With a short-term approach, the operator may implement tactical
solutions using a collection of suppliers and systems to fill an immediate need. When it‘s time to grow
the operator is faced with a painful reality – its infrastructure is inherently unable to cope with growth
and has, in fact, driven the operator into a technology dead-end. Short-term gain is overwhelmed by
long-term pain.
Myth 5: Achieving low Total Cost of Ownership (TCO) must be easy, since everyone says they
can provide it.
In the new world of convergence lowering TCO is about increasing the operator‘s self sufficiency by
reducing its dependence on suppliers and leveraging the operator‘s own resources. Unless the
convergence solution can support operator self-sufficiency, reducing TCO can be extremely difficult.
Self-sufficiency is achieved through a productized software platform that offers a unified view of the
customer supported by a single database containing all billing, ordering and customer information.
The operator must be able to rapidly configure new services, offers and promotions without requiring
7
8. expensive custom integrations. This approach also gives the operator firm control over its own future
with inherent long-term application manageability. Being able to leverage a clear R&D product road
map creates affordable upgrade opportunities for the operator. A low TCO solution must be driven by
a ‗configure, don‘t code‘ mantra and enables operators to get new offers into the market in one to two
days, not one to two months.
The bottom line
Convergence requires a new way of deploying and optimizing the billing and customer care
environment, one that demands proven expertise across service types and across both the prepaid and
post-paid worlds. Taking convergence a step further – integration of value-added services with the
billing platform offers additional efficiencies. While most operators will eventually have to migrate to
convergence to stay competitive, not all billing suppliers are equally suited to the task of helping an
operator transform. Choosing the right convergence platform must be a decision rooted in reality, not
myth and it should be about current choices and trade-offs, risks and rewards.
3. Scope
To understand telecom convergence in better manner it can be further categorized as
1. Industry convergence (Cross industry and domain convergence): Cross industry refers to
communication of telecom and non telecom industry like automobile, BFSI (Banking and
financial services institutions). Cross domain refers to telecom, IT and media convergence.
2. Network Convergence: It refers to convergence at core and access part of network. It is
basically merging of cellular, fixed mobile, broadband and other telecom related services at
single network.
3. Service Convergence: Different voice and non voice service by a single provider. Like quad
play and triple play.
4. Pre-paid and Post-paid convergence: Common handling of subscribers by having single
billing (mediation and real time) solution for both categories.
5. Subscriber convergence: All subscriber information at single place for single AAA
(Authentication, authorization, Accounting)
6. Device convergence: To land up all the services on a single device.
8
9. 4. Different types of convergence
4. A) Cross Industry Convergence:
It simply refers to entering of telecom into various industries like banking, insurance, automobile etc.
Some of possible explanations are given below:
4. A.1) Telecom and Health Industry
With the coming of m-health there is seen a convergence in health and Telecom Industry.
Need:
1. In countries like India m-health proves to be one of the major opportunities that can be used
to provide secondary and tertiary medical expertise to the majority of people in rural areas
who do not have access to good health care facilities but do own mobile phones.
2. Mobile devices can be helpful across the health care spectrum-transmitting vital information
quickly during an acute public health crisis or being used for on-going needs such as
education and training
3. In addition to improved patient outcomes, workflow and administrative efficiencies from the
use of mobile devices can produce cost savings for the user or user organization.
Offerings:
1. UAE-based telecoms provider Etisalat unveiled a new mobile health service at GITEX
2010 in Dubai this week. The service will use mobile technology to provide users with
personalised and relevant health information via their mobile devices.
Users are also able to seek active medical advice from consultants on issues such as exercise
and sport, obesity and diet, and a range of illnesses including diabetes via SMS. This is all
delivered via Etisalat‘s ‗Value SMS‘ platform
2. Orange smart numbers provides patients and healthcare workers instant access to the person
available to answer their call, improving patient care and increasing internal efficiency.
3. Australian telecoms giant Telstra has signed a Memorandum of Understanding with the Royal
Australian College of General Practitioners (RACGP) to deliver a suite of national e-health
solutions and services.
4. Ericsson worked in partnership with Apollo Hospitals, Hand in Hand (a local NGO), Edurite,
One97, CNN and the Cartoon Network to deliver a range of services including telemedicine,
e-education, egovernance, voice and video call services and live television and entertainment.
Ericsson's HSPA solution is a part of Ericsson's full-service broadband offering.
Challenges
1. Acceptance of mHealth by the end user and the health care provider particularly in a
developing country is itself a challenge.
2. Regulatory issues, logistics, and the use of appropriate, need-based, customized solutions are
some of the other concerns.
3. General design challenges faced by all telemedicine systems include billing and usability
9
10. 4. Operating protocols need to be designed to coordinate, prioritize, integrate, and compress the
diverse media streams.
Vodafone standing:
Vodafone already working with UN foundation to promote mhealth
Recommendations:
Vodafone India has not taken any initiative on this regard while the govt. of India is also
interested in promoting m-health. With coming of 3-G the spectral inefficiencies remain
resolved. Thus an initiative can be taken to promote not just m-health through mobile but also
through other required equipment with the help of govt. and take the first mover‘s advantage.
4. A.2) Telecom and Automobile Industry
The automotive industry‘s demands for connectivity integration require products and services tailored
for unique automotive production demands, supply chain logistics, global operations and high quality
industrial integration.
Trends:
GPS systems have been seen to be integrated in the upcoming models in the industry already and
other integrated services are on cards.
Offerings:
1. Telenor Connexion has been working closely with car and truck manufacturers since 1999 to
realize the potential of connected vehicles. Line-fit solutions for OEM customers like
Daimler, Volvo, Scania and aftermarket solutions within fleet management, stolen vehicle
tracking and pay-as-you-drive solutions all have different characteristics, technical needs and
business.
2. WirelessCar is an automotive telematics service provider (TSP) providing manufacturers of
cars and commercial vehicles with customized telematics services to end-customers
anywhere in the world. Current reference customers are BMW, Volvo Cars, Volvo Trucks
and Volvo Construction Equipment.
3. T-mobile, AT&T, Claro and Telenor Connexion have offerings globally in automotive
telematics. Telenor Connexion specialises in mobile communication for M2M and telematics.
Apart from that China Unicom, China mobile and China Telecom are also in the field.
4. Telenity, a US-based company that provides converged services over mobile networks, offers
LBS in India through the country‘s top mobile operator Airtel and the state-run telecom giant
BSNL.
5. Airtel, which has 120 million subscribers, now offers a location-based service called Buddy
Finder on each handset.
6. BSNL has introduced eTrack, a fleet tracking system, which uses a vehicle-mounted,
microprocessor-controlled device to send periodic SMS/GPRS messages from the vehicle to a
network command center.
7. Tata Teleservices, which offers mobile phone services on a CDMA platform, has launched an
LBS service that supports Points of Interest and Navigation applications for enterprises as
well as consumers.
Vodafone standing:
10
11. Vodafone offers Vehicle tracking systems to its enterprise customers in India.
Recommendations:
Use of LBS for non enterprise customers needs to be fully explored.
4. A.3) Telecom and Banking Industry
Need:
1. M-commerce would enable microfinance institutions (MFIs) to offer more competitive loan
rates to their users, as there is a reduced cost of dealing in cash
2. The interactivity to perform transactions on the spot saves the customer a lot of time and ease
to perform transactions
3. Banking–mobile communications product is a way for wireless telecoms to move beyond
commodity voice services and differentiate their products to improve customer retention in a
business with a notoriously high churn rate.
Offerings:
1. I mode in Japan by NTT docomo
2. Idea Cellular Signs Up As Banking Correspondent For Axis Bank - Idea and Axis bank will
run a pilot project to enable mobile remittance between Mumbai‘s Dharavi – one of the
largest slums in the world – and Allahabad in Uttar Pradesh. Customers will be able to
transfer money
3. Union Bank of India is planning to launch ―Union Bank Money‖, a mobile payments service,
in partnership with Nokia and (Nokia funded) Obopay. The service allows customers to store
money, transfer money and make payments: it is, by the looks of it, a wallet service.
Nokia plans to preinstall the application in Nokia mobile devices. The rollout is expected to
be complete in 12-18 months
4. Obopay has launched bill payments services for government owned telecom operator BSNL,
in the West Zone, including in Gujarat, Maharashtra, Madhya Pradesh, Chhatisgarh.
5. Nokia has also partnered with Yes Bank to launch similar service for mobile payments
6. Competitor Paymate has partnered with Essar‘s retail chain MobileStore to offer mobile
payment services across its 1,300 stores in over 200 cities
7. Movilpago, a joint-venture subsidiary of Telefonica Moviles, the cellular unit of Spanish
telecom Telefonica SA, and Spain‘s largest bank, Banco Bilbao Vizcaya Argentaria SA
(BBVA), will provide a wireless payment system over Telefonica‘s cellular network.
8. Mannesmann, the German subsidiary of the U.K.‘s Vodafone Group PLC, has a joint venture
with Deutsche Bank. Telecom Italia has one with Banco di Roma
Trends:
1. MChek has clocked more than a million users with Airtel since its commercial launch in
June 2008
2. M-Pesa by Safaricom in Kenya was first introduced in March 2007. By mid-quarter of 2010,
the application had over ‗2.3 million registered users with over 18 Billion (about $230
million) Kenyan Shilling (Ksh) moved through the system, via person-to-person transfers.‘
The service has now been transitioned to be operationally run by IBM Global Services on
behalf of Vodafone; the initial three markets (Kenya, Tanzania and Afghanistan) are hosted
MTN and Western Union have formed an alliance that is bound to ignite the biggest
11
12. international mobile remittance services or mobile money transfer, if you like, on the
continent by Rackspace.
3. With new forecasts from ABI Research indicating that in 2015 about 244 million people
worldwide will carry out financial transactions using their mobile phones
Challenges
1. Regulation, not keeping up pace with technology.
2. No clear-cut approach to addressing the challenge and there is still no defined predictability
as to what level of changes could occur with adoption of MobileMoney in a big mobile
market
3. Telecoms need certain capabilities in order to provide wireless finance services. Those they
do not already possess, they can acquire relatively cheaply by allying themselves with banks.
4. Security issues concerning wireless transfer of money using third party applications.
5. Privacy of customer and account information to be securely transferred.
Vodafone standing
1. Voafone in M pesa in Kenya, Afghanistan, Kenya, Tanzania
2. Mannesmann, the German subsidiary of the U.K.‘s Vodafone Group PLC
Recommendations:
1. Regulators must encourage such alliances to sustain the relevance of the different segment
players otherwise nothing stops a mega Telco from becoming a mega-multi services provider
offering all services in one converged pipe
2. No-KYC Prepaid Instruments should not be encouraged by the operators.
3. Transparency to the customer and all the other parties involved.
4. Interoperability: by making all mobile payment offerings inter-operable it would allow pre-
paid instrument issuers to connect networks and reduce the cost of establishing a business-
correspondent/retail network.
4. B) Cross Domain Convergence:
Industry convergence, defined as a ‗blurring‘ of boundaries between industries, induced by
converging value propositions, technologies and markets, appears to be a pervasive phenomenon
leading to the emergence of inter-industry segments. The industries under consideration are the
telecom, media and broadcasting sectors. Does convergence mean the closer co-operation between
industries or does it simply imply the substitution of products/services? Dealing with altered industry
structures through mutual innovation, traditional frameworks have to be Re-evaluated and will be
modified or extended in order to give direction for an adequate strategy.
12
13. Figure 3: Cross-Domain Convergence
In this particular context, industries can be defined as group of firms with similar resource bases. And
hence, it becomes possible to define an industry from both the demand side (Products/Services) and
the supply side (Resources/Technologies).
The convergence of these products/services may lead to a scenario in which firms with ‗traditionally‘
different businesses will compete against each other as the end user of the service is same. That is to
say that the user will perceive these firms, which were previously not in direct competition with each
other as being in the same ‗playfield‘.
Figure 4: Supply & Demand of Convergence
Needless to say, this is undoubtedly an age of industry convergence.
The biggest difference between the current era of convergence and the past two decades is that the
drivers of reform come from divergent directions. A new industry will emerge that combines
communications, information, entertainment, media, even finance, retail and logistics. The telecom
industry will be but one part of it, but might no longer be a driving force with marked changes largely
steered by other industries that blend into the new industry mix.
13
14. Those in the telecom field must fully understand industry reforms, and go beyond the industry to
consider issues from the perspective of industry convergence. Otherwise, it will be difficult to see
future trends and confusion will reign. Major players like Apple and Google show us that in the new
industry convergence game, operators need to play with their inherent advantages, rebuilding a
commanding position and profit points into services.
Also, the operators need to learn from past mistakes. The strategies to get access to content in the
nineties led some operators to some difficult financial situations.
Figure 5: Content Integration
4. B.1) Changes from convergence
Industry transformations appear to be complex with many elements entangled, but no matter in which
industry or era, the bottom line is that development must meet and cater to end users. The right
direction for most new industries should:
Be greater affordability. Low cost, accessibility, and easy use of products or services are crucial.
Products and services should enhance and improve the lives of the users both at work and play.
Services should generate a more enjoyable, fuller user experience and follow the trends in
entertainment, fashion and social interaction.
From the angle of the value chain, a convergent industry must encompass three elements: application,
network, and terminal.
14
15. Application: The future primary application model most likely will be Software as a Service (SaaS).
Compared with traditional business models, SaaS provides lower costs, better services, ease of use
and completely conforms to the general development direction of the industry. All applications
become a simple icon that users just click on to use. Many concepts such as Communication as a
Service (CaaS) will emerge and all applications will be virtually services.
Network: Future networks must be deployed as"optical fiber + wireless". But the location to place
optical fiber, the coverage of wireless services, and the choice of technology and networking model
depend not only on equipment costs, but also on auxiliary equipment, installation, maintenance,
energy consumption and equipment room leases. Apart from this, there may be more crucial factors,
such as licenses, governance, and private ownership of land. There is great difference in these factors
between countries and cities. As a result, applicable technical solutions vary greatly.
Terminal: In essence, terminals are the extension of networks, and the presenter of applications.
Should terminals be intelligent or fool-proof? Fool-proof terminals (especially user interfaces) are
in the mainstream, because the industry strives to serve the masses and users usually do not want to
deal with complex high-tech devices. Key technologies at the terminal side are input/output, network
connection capacity and power supply. Other capabilities should be implemented at the network side
to reduce cost and provide greater convenience for users. For convenience, terminal networks are
connected wirelessly.
4. B.2) Leading player strategies
Apple's trump card
After the iPod turned out to be an overwhelming success, Apple continued its involvement in the
information service industry. More importantly, through its App Store, Apple enables numerous
independent software vendors to develop various applications using iPhone software and hardware, to
better match iPhone users' personalization requirements. These applications are only sold through the
iPhone and App Store and this channel has become one of the primary 3G service flows for
operators. Apple can share revenue with operators thanks to the iPhone's popularity and the impetus it
gives to 3G services. Certainly, Apple's main control point is the superb user experience created by its
software and hardware, which stems directly from Apple's highly capable innovation.
Google's super platform
Google's situation is just the reverse when compared with Apple's. It boasts a very powerful search
engine platform, but offers no support for terminals. For this reason, Google has developed Android, a
15
16. terminal operating system, and offers free source codes with it. This move has turned out to be quite
powerful. After Google provided the source codes, terminal vendors from around the world and even
some personal studios were able to design terminals on the platform. At the same time, software
companies and even personal software developers internationally can develop various applications.
The synergy can beat any company that develops applications independently. Despite the openness,
Google does not let it roam freely, but keeps it on a short leash. Its control point lies in strong search
applications and the powerful supporting ―cloud computing" networks.
4. B.3) New operation direction
STRONG ALLIANCES ARE IMPERATIVE
Objectively speaking, among participants in the transformation, emerging online media, such as Face
book, were not born with a silver spoon in their mouths, and they revolutionized the
industry. Traditional media like News Corp. have competitive pressure as well as an opportunity for
expansion. As long as the industry grows in size, upstream vendors like Intel have a stable yield. The
telecom industry however will go along with the revolution and see the traditional voice
communication market gradually diminish or even vanish. The telecom industry only plays a
supporting role in this revolution. Some people argue that as a vested interest group, the telecom
industry is even acting in resistance to the revolutionaries.
Fortunately, most astute telecom operators have realized that revolutions once they begin are often
irreversible trends. By conformity and adaptation, operators can evolve and gain or regain the leading
position. The first order of business is consolidation. Against the backdrop of globalization, local
operators are not in a position to compete with the industry titans. Eventually, they will either turn
into mere conduits or be acquired. Telecom giants must keep expanding through mergers, and control
more users, thereby gaining the foundation to compete with the service titans and even become new
service integrators.
4. B.4) Role of Broadband
In the converged scenario, broadband is expected to be the key driver for business growth. The
service delivery is expected through different media namely wireless, fixed and cable and as such the
complexity of the service environment will be very complex and tricky as compared to the present
scenario in that involves fiber and cable.
Network complexity is also expected to be very high in such a scenario but the next generation
technologies as well as network infrastructure will be able to cope up with the new challenges.
Network management refers to the activities, methods, procedures, and tools that pertain to
the operation, administration, maintenance, and provisioning of networked systems. A common way
16
17. of characterizing network management functions is FCAPS—Fault, Configuration, Accounting,
Performance and Security
Figure 6: Network Management
It‘s safe to say that broadband wiil be the key factor for devices, products, services and their
convergence. Some of the key elements in the converged set-up such as IPTv , Video-on-demand and
Mobile TV in a 3G environment will all be delivered on broadband connection thereby making it a
key indicator of competitiveness.
Figure 7: Screen Convergence
Also, thanks to broadband, there is bound to be a boom or explosion in the services arena apart from
the three mentioned above. These will be in the following key segments:
- E-Banking
- E-Commerce
- E-Government
17
18. - E-Leisure
- E-Education
- E-Health
4. B.5) Role of Operators
The operators should be willing to accept the fact that traditional telephone services such as voice and
messaging cannot be treated as utilities on their part and they should not also out rightly jump into
content creation either. The operators have to keep in mind the following key risks involved in this
context:
- Dumb Pipes: With regards to a mobile network operator (MNO, or operator), the term dumb
pipe refers to an operator‘s network being used simply to transfer bytes between the
customer‘s device and the Internet. The use of the term ―dumb‖ refers to the inability of the
operator to restrict services and applications to its own portal and primarily just provide
simple bandwidth and network speed. The dumb pipe is one of the commonly understood
operational models for a MNO. E.g. Apple‘s iPhone. The iPhone enables its users to directly
surf the Internet with its mobile Safari browser and connects to Apple‘s ITunes store for
purchasing ringtones and music instead of the operator‘s own portal. Operators such
as AT&T Mobility cannot offer their traditional services (such as downloads
of wallpapers, ringtones, games, applications, etc.) as Apple controls the total iPhone user
experience. Operators must be content to provide only the network connectivity and
bandwidth which the iPhone has tripled in some cities. In addition to losing valuable revenue
opportunities with the customer, operators are rumored to pay Apple a percentage of the
customer‘s monthly bill as well. While the iPhone is a good example of the dumb pipe, not
everyone believes it will ultimately be bad for operators.
- Control of content: Controlling the content available to the consumers is a key role for the
operators. The explosion of content-sharing services available to the consumers has
threatened the content business. The generators of content are looking for new innovative
measures to sustain growth of their businesses.
4. B.6) Convergence of Networks and Technology
Convergence can be compared on the basis of level of advancement in the technology and services
availability at a particular time. The evolution of media, IT and telecom industries from previous
technologies to an all-IP scenario is what is driving the growth of convergence. Following is the
maturing of technologies:
18
19. TELCO ISDN BISDN ATM NGN IMS
IT Computer Internet Broadband
Network
MEDIA CaTV IPTV
SDP INTEGRATION:
As SDPs evolve, they will often require integration of telecom and IT capabilities and the creation of
services beyond technology and network boundaries. SDPs available today are optimized for the
delivery of a service in a given technological or network domain (examples of such SDPs include
web, IMS, IPTV, Mobile TV, etc.). They will typically provide a service control environment, a
service creation environment, a service orchestration and execution environment, and abstractions for
media control, presence/location, integration, and other low-level communications capabilities.
Figure 8: SDP Framework Integration
19
20. An SDP aggregates different network capabilities and services as well as different sources of content
and allows application developers to access them in a uniform and standardized way.
In the past the SDP concept has been primarily focused on the IT infrastructure required to deliver and
manage the service environment, with the underlying network simply providing the interface and
delivery machinery. However, in the new evolving SDP world these boundaries between IT and
network environments are merging, thus generating the need for a new end-to-end architectural view
spanning the complete service delivery environment. In particular the following new challenges need
to be addressed:
4. B.7) Key Challenges
- Regulatory aspects
- Internet privacy
- Content business model
4. C) Post-paid prepaid
4. C.1) INTRODUCTION
Prepaid and postpaid systems came from different domains and were aimed at solving the problems of
different market segments. Prepaid systems, predominantly network elements, provided zero balance
leakage and high performance, but were inflexible in defining new services and tariffs. On the other
hand, postpaid systems, the heart of the BSS, provided a high degree of flexibility to handle complex
service plans and innovative business rules, but lacked real-time capabilities.
As long as prepaid and postpaid systems addressed different market segments and different market
needs, there was no real incentive for converging these domains, despite the higher operational
expenses incurred in managing two separate systems. However, market trends and customer needs are
changing, and it is no longer possible to clearly segment prepaid and postpaid customers.
There are three main reasons for considering the consolidation of prepaid and postpaid environments:
New revenue opportunities
Increased retention and customer satisfaction
Reduced direct and operational costs
NEW REVENUE OPPORTUNITIES
Increasing revenues is the best measure of success, and selling more to existing customers is an easy
way to do so. Converging prepaid and postpaid customers into a single platform does this and more. It
20
21. allows providers to offer all customers a complete set of services, turning the payment method
(prepaid or postpaid) into a mere financing issue. With this approach:
Prepaid customers can be offered services and options that were once available only to postpaid
customers.
Postpaid customers can benefit from real-time control of their services and from unique
offerings. A converged charging system allows them to control their spending, receive balance
notifications and real-time promotions, and derive instant gratification from actions they
perform.
Hybrid customers (with both prepaid and postpaid services) constitute a new business segment.
A converged system enables them to combine prepaid and postpaid subscriptions, split charging
for prepaid and postpaid accounts based on any characteristic, and benefit from blended
services, volume discounts, and more.
Innovative services, business rules and upsale/cross-sale offerings enable service providers to
escape the declining "price per minute", or even worse, flat rate schemes.
INCREASED RETENTION AND REAL-TIME CUSTOMER INTERACTION
As competition intensifies and customer retention becomes a key issue, delivering yet another service
or competing on price is no longer a viable long-term solution. Now, Providers must focus on the
customer experience as subscribers interact with a multitude of services.
A truly converged solution allows services to be offered in a blended manner (as opposed to as a set
of discrete services), providing subscribers with a sense of a single, multifaceted experience.
Moreover, they can interact in real-time. They expect that when they press a button, complete a
download, or reach a bonus quota, the provider will respond immediately with the appropriate action
(for example, increasing the loyalty points balance or granting free SMSs). With a converged solution,
providers can achieve this by offering a solid mix of real-time services they can interact with and
respond to in real time.
REDUCED OPERATIONAL COSTS
The consolidation of prepaid and postpaid environments can have significant cost-saving benefits.
Ultimately, prepaid and postpaid customers will have a single set of service offerings, single service
logic, and a single set of tariffs, discounts and promotions. By converging prepaid and postpaid
systems over a single customer base, a single set of processes, interfaces, and operational procedures,
providers should expect a reduction in OPEX and in TCO.
21
22. 4. C.2) CONVERGENCE BILLING: FIVE FUNCTIONAL LAYERS
A convergent charging and billing solution consists of five functional layers based on common
technology:
The customer care layer provides a 360-degree view of all subscribers and services,
including self-care.
The billing layer provides a single bill and statement for all communication services —
fixed, mobile, broadband, and TV —to increase convenience for subscribers.
The charging layer provides real-time rating, bonuses, and promotions as well as
notifications to subscribers in real time. This stimulates usage and increases customer
intimacy and loyalty.
The mediation layer reduces revenue leakage by providing online bidirectional transport of
charging information between network and service elements for real-time charging.
The session control layer enforces credit and spending control by providing network and
service elements that can notify users and stop services when real time charging indicates that
credit has been depleted.
Each layer requires unique convergent capabilities and should work interdependently. In addition, the
convergent charging and billing solution must have
The ability to configure new price plans, services, and products quickly;
Highly configurable business rules to ensure that requirements are met with minimum need
for customization; and
High availability and scalability, pre-verified and lab tested (this is not something an operator
can afford to integrate in the field).
A major challenge in delivering a converged solution is in using a single instance of all key billing
and CRM system components.
A single high-performance real-time rater handling usage transactions for prepaid and
postpaid customers and at the same time required to address non-usage events;
A single customer database;
A single product catalog merging the pre-paid product catalog for applying usage rating and
usage discounts, with the CRM and Billing catalog holding all non-usage services, applying
recurring and one time charges and Billing discounts.
A unified CRM delivering the full suite of services and offerings to all customers.
22
23. 4. C.3) PRE/POST SOLUTIONS & ARCHITECTURES
There are three main solutions for achieving prepaid/postpaid convergence:
End-to-end converged pre/post solution
IN-based pre/post solution
Unified CRM solution.
The three solutions differ in the level of convergence they provide, the systems they use, their
integration and implementation requirements, and on where critical data is stored and
managed. The following sections review the three solutions, and outline their benefits and
drawbacks.
END-TO-END CONVERGED PRE/POST SOLUTION
An end-to-end converged pre/post solution provides high integration and operational efficiencies
using a four-layer approach:
A service control layer consisting of a standard component of an IN, the SCP, which is used
to control the service usage and to communicate with the switching device on the one hand,
and with the charging function on the other. The SCP queries the charging and business
control layer for session quota allocation and sets a timer for triggering subsequent queries. In
an end-to-end pre/post converged architecture, all service requests (prepaid and postpaid) go
through the SCP, as opposed to the traditional separation between batch CDRs and real-time
events.
A charging and business control layer that serves as a real-time function within the
converged system architecture where information related to a usage event is collected,
formatted, transferred and evaluated so that it is possible to determine the charging or
business implication on one or more parties. This function enables customer
interaction and affects the service rendered in real-time. In this solution, the charging
and business control layer encapsulates a single rating, charging, and business control
with online and offline interfaces. IMS compliant, it implements the Policy and
Charging Control (PCC) function.
A billing layer that provides industry-generic system processes including invoicing,
account receivable, voucher management and discounting. Using a business rule
designer, it should allow competitive services and business rules to be introduced
23
24. quickly and intuitively. The billing layer should offer real flexibility in payment
methods and allow balance transfers from any customer to any customer (for
example, from post-paid to pre-paid), voucher replenishments by any customer to any
balance, and many more.
A CRM layer that covers a broad spectrum of customer relationship management and
business processes including sales, marketing, service management, and self service.
The CRM layer manages the entire customer base of pre-paid, post-paid and hybrid
customers from a single customer repository and using a single product catalogue.
The product catalogue must contain all service offerings and tariffs for all customer
segments, regardless of their payment methods.
Figure 9: CONVERGED PRE/POST END-TO-END SOLUTION
This solution addresses the stringent requirements of a converged solution and ensures some distinct
benefits:
New revenue opportunities - All customers have access to all services, enabling them to
consume the full suite of provider offerings.
Single-product catalog – Providers can apply highly innovative business offers and
promotions to both prepaid and postpaid services, for example, hybrid services and real-time
discounting.
Real-time balance management – Enables real-time credit control and enforcement of
spending limits for all customers.
Single-charging and rating layer – Usage rating, billing charges, usage and billing
discounts, and any other business rule are all implemented in a single charging layer.
24
25. Operational efficiency - CRM, billing and charging are provided a single, end-to-end,
extremely flexible solution with no overlapping modules.
IN-BASED PRE/POST SOLUTION
The IN-based pre/post solution integrates between an IN charging layer and a CRM and billing layer
for handling the full range of customers. In this solution, the IN charging engine is used as a single
rater of both prepaid and postpaid transactions.
Figure 10: IN-Based Converged PRE/POST Solution
This approach shares most of the advantages and benefits of the end-to-end converged pre/post
solution, while allowing customers to preserve their IN systems investment. Notwithstanding, there
are some issues that must be taken into consideration when implementing this approach:
Minimizing duplication between customer accounts that are held in the billing and CRM
layer and in the IN layer. The latter must hold only charging-related information and real-
time balances.
Synchronizing service offerings contained in the CRM and in the IN layers. The main
product catalog resides in the CRM, while related information required for charging is
synchronized with the charging layer. This solution is typical for providers that already have
an existing IN-based network and are looking to complement it with postpaid capabilities. A
pre integration between the IN vendor and the billing vendor ensures the best results.
UNIFIED CRM SOLUTION
The unified CRM solution offers a single CRM layer on top of existing, separated, prepaid and
postpaid billing systems, coupled with a central product catalog that holds all service offerings and
tariffs for the entire customer base.
25
26. This approach offers only part of the full pre/post advantages; however, has the benefit of low cost
and relatively quick implementation. Like the IN-based solution, it enables service providers to
maintain their existing investments in prepaid and postpaid systems.
Figure 11: Unified CRM solution
4. C.4) MODULES OF CONVERGENT BILLING
Figure 12: Modules of Convergent Billing
The modules which broadly represent convergent billing are as follows:
Network Elements
26
27. Network elements include all elements through which data flows as well as formation of CDR
happens. These include xGSN, PDSN, MSC, VoIP servers, WAp gateways, Game server to name a
few.
Figure 13: Network Elements
Mediation
As new services come into the fray, handling increased number of data formats is the main
concern for the service providers. Even after collection processes, these traffic and network
information from different input CDRs still need to be merged in order to construct
meaningful billing information to be displayed on a consolidated bill.
FUNCTION OF A GOOD MEDIATION PLATFORM
In an evolving environment where network convergence continues to dominate, the mediation layer
needs to perform the following key selected functions:
Network Data Collection
The mediation engine needs to be able to collect event data from disparate network elements
dynamically in real or near real time. In addition, it should also support file-based or record-based
collection of data information from different network protocol.
27
28. Figure 14: Network Data Collection
Network Data Processing
Event data generated from network elements typically have various formats according to network
element vendors. The mediation layer should be able to convert these heterogeneous event data into a
standardized format for downstream distribution. In addition, user interface should allow service
providers to customize field formats, field mapping, action rules, validation rules according to the
requirements of the business.
Data Distribution
Data Distribution involves transmission of reformatted usage data to downstream systems like data
warehouses, etc in real time or near real time via suitable network protocols. A convergent mediator
should allow user to register and manage downstream application interface information, such as IP
address, system name etc by specifying such information in user interface.
Figure 15: Data Distribution
28
29. Data Aggregation
In an all IP environment, multiple interim event records are typically generated during a single
session. In such scenario, data aggregation is necessary to combine multiple interim records to form a
single CDR record for charging purposes.
Data Correlation
For billing purposes, a service provider has to select and group records generated from the same
session from multiple network elements. Once the records are distinguished and collected, the
information is correlated to form a single billable record. Ability to perform such complex
correlations of events is a must in a convergent mediator.
Duplication Checking
It is imperative that mediation solution must be able to avoid data omission and remove duplicate data
to insure accurate billing. Duplicated records should be stored in separate databases for future
investigation purposes.
Rating
The solution should converge all provisioning, transaction, charging, rating and billing for
supported services (voice, data, SMS, mCommerce) under a single system in the most
comprehensive fashion and most importantly, in real-time.
Figure 16: Rating Module
29
30. Types of Ratings include:
1. Voice Rating
Voice Rating enables you to deliver, rate, and verify prepaid/postpaid voice services with
confidence
2. SMS/MMS Rating
SMS/MMS Rating controls and rates enhanced messaging services for prepaid and postpaid
users, including premium SMS/MMS delivery, tele-voting, gaming and content downloads.
3. Data Rating
Data Rating offers you a competitive advantage with real time rating of new emerging data
services based on events, volume, quality of service, time of day, source, and destination.
4. C.5) OFFERINGS
1. Vodafone Czech Republic: Full Convergence for Enterprise Offers
PROFILE
Vodafone Czech Republic (CZ) has grown since entering the market in 2005 by acquiring Oskar
Mobil, which was then the fastest-growing operator in the country. Increasing their customer base by
over 9% in 2007 (more than 245,000 subscribers), Vodafone CZ now has attracted more than 2.751
million subscribers as of June 2008 and continues to thrive, despite the fact the country‘s mobile
subscriber penetration rate is over 120%.
THE CHALLENGE
Breaking into the corporate segment as the first operator in a highly competitive European market to
offer a full range of fixed-mobile convergent telecommunication services, focusing on simplicity,
flexibility and cost savings.
THE SOLUTION
Vodafone adopted FORIS NG, a fully-convergent Charging and Billing solution from SITRONICS
Telecom Solutions, pre-integrated with CRM from Microsoft® and TIBCO® middleware.
30
31. BENEFITS
Vodafone was able to attract hundreds of new corporate customers of different sizes with their fixed-
mobile convergent offer, OneNet. FORIS NG automates Ordering, supports complex customer
hierarchies and provides a unified Product Catalogue for shortening time-to-market for introducing or
modifying offers.
2. AMAZONIA AND TELEMIG CELULAR : Network Interface Solutions – Intec Rating &
Charging
PROFILE
Amazônia Celular S.A. provides wireless services in five states in the north and north east of Brazil,
covering some 41 per cent of the national territory and with a 27 per cent market share.
REQUIREMENTS
Amazônia/Telemig offer a wide array of content based services, with approximately 160 service
offerings and more than 5,000 content items/channels. Since most of the customer base is prepaid, it
was imperative to find an active mediation platform that could bill for these services in real-time for
both pre and post paid customers.
SOLUTION
Amazônia/Telemig selected Intec Rating & Charging because of its flexible functionality that allows
them to bill in real-time for all of their content-based services for both pre and post-paid customers.
Intec Rating & Charging‘s customisable pricing and flexible business rules were also of particular
interest given Amazônia/Telemig‘s broad portfolio of services.
BENEFITS
Evandro Canabrava, chief information officer at Amazônia/Telemig: ―We needed an active mediation
and real-time rating system that could also leverage flexibility in rating rules and service plans to both
prepaid and postpaid customers.We selected Intec Rating & Charging to enable us to bill for our
content based services in real-time, allowing us to offer more services, and therefore increase
customer satisfaction and revenue.‖
3. TELECOM NEW ZEALAND: Retail Solutions – Intec Convergent Billing (Singl.eView)
PROFILE
Telecom New Zealand (TNZ) is one of the leading telecommunications network providers in Asia
Pacific with over 3.5 million customers using its fixed line, mobile, and Internet services. Following
the deregulation of the country‘s telecommunications market in 1989, TNZ found its market share
under competition from new entrants.
31
32. REQUIREMENTS
With TNZ needing to retain and grow its market share, the organisation realised it had to
overcome the challenge of an older network and the legacy of an ageing billing system. This lead
TNZ to shift its business focus to new technologies and business and operating support systems as
part of an investment strategy.
SOLUTION
TNZ developed a long-term roadmap, which included a commitment to roll out a ‗next
generation‘ IP network to residential customers. With the new IP network able to offer customers
a greater range of value added services, TNZ needed to upgrade its billing system to a single
convergent solution to maximise the investment in the network and expand its offerings.
Following a formal competitive bid process, TNZ selected Intec Convergent Billing to provide
competitive advantage.
BENEFITS
Mark Ratcliffe, chief information officer at Telecom New Zealand: ―The selection of Intec
Convergent Billing formed part of TNZ‘s strategic shift toward operating as a full service
provider and the ability to offer customers one bill for post-paid and pre-paid services.‖
4. MTS Russia
Profile
With over 90 million customers across Russia and the CIS, Mobile Telesystems (MTS) is the leading
telecommunications service provider in the region, billing over 64 million customers in Russia, its key
market. Since 2000, MTS has been publically traded on the New York Stock Exchange and was
recently recognized as one of the Top 100 Most Powerful Brands in the world by BRANDZ™, with
revenues increasing 29% in 2007 to reach $8.2 Billion.
Challenges
Prior to 2003, MTS Russia used dozens of diverse billing systems and IN platforms from
different vendors, stretching across nine macro-regions and 8000 km of Russian land. Faced
with rapid subscriber growth, MTS‘ previous systems lacked the necessary scalability to
handle more customers. This raised expenses and caused marketing activities to suffer due to
the complicated synchronization of a variety of systems.
Similarly, the lack of support for real-time online charging for next generation services
resulted in missed revenue opportunities.
32
33. Solution
In response, MTS initiated a major OSS/ BSS transformation in July 2003, starting with a plan to
replace all billing systems with FORIS OSS, a Prepaid/Postpaid convergent Charging and Billing
solution and later consolidating various IN platforms with MEDIO IN/SCP from SITRONICS
Telecom Solutions.
FORIS OSS and MEDIO IN/SCP provided the following benefits:
Convergent charging for retail & corporate subscribers reduces tariff complexity and
configuration time
Robust and scalable billing handles even the largest customer bases and traffic loads
Unified Rating Engine supports advanced rating schemes and handles both online & offline
rating and discounting
SCP enables popular VAS and provides open, standard interfaces for seamless integration of
3rd-party systems
Self Care empowers customers to take charge of their own service setup, supporting
online changes even to corporate hierarchies, with bonuses to reward ―sticky‖
customers
4. D) FMC
INTRODUCTION:
FMC can be simply identified as ―One Phone, One Number, One Bill‖
Fixed Mobile Convergence (FMC) in simple terms & broader sense can be defined as the
convergence of Fixed (wireline) and Mobile (wireless) networks, services and terminals. FMC will
enable the subscriber to access a wide variety of communication, information and/or entertainment
services, with consistent quality of service regardless of the device used, the underlying network over
which those applications run or the user's location.
The aim of Fixed Mobile Convergence (FMC) is to provide fixed and mobile services with a single
phone or personal device, which could switch between networks ad hoc.
Fixed Mobile Convergence (FMC) allows network and service operators to make more efficient use
of existing access technologies (GSM, DSL, Wi-Fi), as well as taking an advantage of the roll-out of
new access technologies such as 3G, WIMAX etc, by launching new voice & multimedia services and
realizing cost reductions by implementing common service machinery for different access networks.
33
34. Fixed and Mobile Convergence is concerned with the provision of network service capabilities, which
are independent of access technique. This does not necessarily imply the physical convergence of
networks. It is concerned with the development of converged network capabilities and supporting
standards. This set of standards may be used to offer a set of consistent services via fixed or mobile
access to fixed or mobile, public or private networks.
An important feature of fixed mobile convergence is the separation of the subscriptions and services
from individual access points and terminals and to allow users to access a consistent set of services
from any fixed or mobile terminal via any compatible access point. An important extension of this
principle is related to internetwork roaming; users should be able to roam between different networks
and to be able to use the same consistent set of services through those visited networks.
LAYERS OF CONVERGENCE IN FMC
The following three layers of convergence will be required to be carried out to achieve objectives of
FMC:-
a. Network convergence – The same network (physical infrastructure) is used for both fixed
and mobile services. Network convergence can be further divided between the access
network and the core network.
b. Service convergence –The same service can be accessed from different types of terminals
& networks.
c. Terminal convergence – Single terminal can be used to access different services offered
by different networks (different technology).
FIXED MOBILE CONVERGENCE
Figure 17: Fixed Mobile Convergence
34
35. FMC is a service in which the most appropriate network can be used according to the situation
without users being aware of when the terminal switches between fixed and mobile modes. FMC
also enables automatic network selection for incoming and outgoing calls, roaming and handover
between different networks, and an integrated billing service. The users‘ needs for FMC are based on
recognize the new value and benefits of converging fixed and mobile networks is needed.
FMC is expected to provide a ubiquitous service that can be used at any time and any place. In the
enterprise market, FMC is expected to create new business opportunities by making business
operations more efficient, presenting business model innovations, and reducing costs.
4. D.1) NEED FOR FMC:
1. Productivity
Productivity can be increased by implementing FMC. With on-the-spot access to the organization‘s
fixed systems, mobile professionals can make more informed decisions. Having a single phone
number that customers and colleagues can use to reach the employees of the organization, no matter
where they are. This means that they are never out of touch. Workers can collaborate more quickly by
accessing familiar desktop phone features like call transfer and extension dialling right from the
mobile device.
2. Security
Wireless solution security helps to address the need to transmit voice and data in a highly secure
manner through encryption, authentication, authorization, access control and firewall protection down
to the wireless device level. As wireless solutions continue to build momentum and the subsequent
number of wireless devices grows, the demand to manage and secure these solutions increases. FMC
is designed to extend the security and control of fixed voice network to mobile devices. With highly
secure access, organization can minimize the likelihood that it could be the target of toll fraud,
conference call snooping and other unauthorized access. Validation of a user‘s voice network
credentials over an encrypted data channel between the mobile device and the organization‘s servers
is leading edge technology and provides a highly secure solution.
3. Planning for future innovation
Most organizations have made significant investments in voice technologies, but voice
communication is always changing and improving. Plotting a course to take advantage of innovation
can help the organization maintain control while increasing employee freedom. FMC solutions allow
leveraging existing infrastructure by integrating mobile devices with fixed PBX-based desk phone
35
36. functionality. FMC solutions that support multiple and mixed network technologies (IP/TDM) allow
to extend the life of existing telecom capital investments while leaving the door open to new ones.
4. Competitive advantage
Enabling mobile workforce to use their mobile device as a highly secure mobile desk phone allows
them to answer customer inquiries faster, to beat competition and to help organization grow in a
global economy. FMC allows organization to maintain ownership and control of its telephone
numbers, making them a managed asset that customers
and vendors are familiar with.
5. Cost
FMC opens the door to a variety of cost-control opportunities. In some cases, calls placed from
mobile phones to long-distance and international endpoints can be costly. The ability to extend class-
of-service control to mobile devices allows to permit and restrict access to services like international
and long-distance calling or pay-per-use (i.e., information) services. With FMC, cost can be further
reduced by implementing policies that route mobile calls through your PBX and across the lowest-
cost negotiated rate fixed-line networks. Directing mobile calls through PBX also allows auditing
mobile usage through advanced reporting features which help to reduce time and cost associated with
business use billing. These reports can help better understand current usage patterns, allowing
planning strategically for future mobile workforce expansion.
4. D.2) FMC ECOSYSTEM
The main elements of FMC ecosystem include service providers, equipment and software vendors,
and customers.
End user equipment, including customer premises equipment (CPE) like cable modems, mobile
devices, and fixed phones.
The main segment in the FMC ecosystem on the ―service-receiving end‖ includes residential,
enterprise, and institutional (such as government, research, health-care, and military) subscribers.
These markets have different needs but are driven by similar objectives: cost savings on both service
and equipment sides, convenience or productivity enhancements, and coverage or reception and
potentially service quality improvement.
36
37. FMC ECOSYSTEM
SERVICE CONSUMERS VENDORS
PROVIDERS
FIXED RESIDENTIAL INFRASTRUCTURE
OPERATORS
ENTERPRISE APPLICATIONS &
MOBILE CONTENT
OPERATORS
INSTITUTIONAL END-USER
EQUIPMENT
MVNOs
VOIP CPE
IXC
TRADITIONAL
HANDSETS
CELLULAR ILEC
ACCESSOR
CONTENT IES
MOBILE
BROADBAND
BROADBAND
Figure 18: FMC Ecosystem
SOLUTIONS FOR FMC
Cordless Telephony Profile (CTP) and Unlicensed Mobile Access (UMA) standards are interim FMC
solutions that enable operators to offer FMC services to only a limited
extent, whereas IP Multimedia Subsystems (IMS) standard by 3 rd Generation
Partnership Protocol (3GPP) is considered as a solution for complete FMC. CTP and UMA are,
therefore, generally referred to as 'pre-IMS solutions, as shown in Figure.
37
38. 4. D.3) FMC SOLUTIONS
CTP Cordless
Telephony Profile
UMA Unlicensed
Mobile Access
IMS IP Multimedia
Subsystem
Figure 19: FMC Solutions
a. Cordless Telephony Profile (CTP) is a profile defined within the Bluetooth specification, by
the Bluetooth Special Interest Group, which allows a Bluetooth-enabled mobile phone to be used as a
cordless telephone when it is within a range of a Bluetooth CTP access point. CTP is thus a way of
adding limited mobility – cordlessness - to the fixed network. CTP acts as an application on the
device - which is sometimes a mobile phone and sometimes a hands-free headset. Mobile and fixed
access are only loosely converged in CTP. The mobile device retains its GSM number, whereas the
CTP access point uses the number associated with the fixed line to which it is attached.
b. Unlicensed Mobile Access (UMA) provides access to GSM and GPRS mobile services over
unlicensed spectrum technologies, including Bluetooth and WLAN 802.11 (and may later cover other
unlicensed technologies, such as WiMax or even Ultra Wideband (UWB)). By deploying UMA
technology, service providers can enable subscribers to roam and handover between cellular networks
and public and private unlicensed wireless networks using dual-mode mobile handsets. The UMA
solution has now become a 3GPP standard named Global Area Network (GAN).
Figure 20: UMA mode of FMC
38
39. In the UMA based solution, the inter-networking of calls from cellular to Unlicensed Mobile Network
(e.g. WiFi, Bluetooth) will occur via UMA Network Controllers (UNC) that enable call hand offs on
dual mode handheld devices, as shown in Figure.
UMA SERVICES OFFERED IN EUROPE
OPERATOR YEAR OF LAUNCH NAME OF SERVICE COUNTRY
BT 2005 BT Fusion UK
Orange 2006 Unik UK, France, Spain,
Netherlands, Poland
Telecom Italia 2006 Unico Italy
Telia Sonera 2006 Home Free Finland, Sweden
UMA provides GSM services over WLAN radio with built-in roaming and handover between WLAN
and GSM. While UMA may be appealing to GSM operators, there are a few drawbacks with this
approach:
It applies only to GSM operators.
It doesn‘t provide any new end-user services, only connectivity to legacy
services.
It doesn‘t leverage SIP-compliant terminals, which are likely to be implemented on all
WLAN-compatible terminals in the long term.
c. VoIP extension
Several service providers offer downloadable clients for dual-mode handsets that extend the end
user‘s subscription to the handset. Once out of WLAN coverage, though, the end user is back to
normal cellular service. The advantages are a very low cost to the end user, an easy-toinstall overlay
solution and the ability to add multimedia services. A large and problematic drawback is that there is
no opportunity to provide roaming to cellular service — so you have a converged device but not a
converged service as part of an enhanced service portfolio. It is thus a step toward convergence but
not true convergence.
d. IP Multimedia Subsystem (IMS) is a standard that defines a generic architecture based on SIP
which allows multiple real-time applications to run across a single network. Although it was initially
designed by the 3rd Generation Partnership Project (3GPP) for mobile networks, newer releases of
IMS are designed to be access- agnostic so that it can be used by any type of access method, be it a
39
40. fixed line, GSM, CDMA2000, WCDMA, Wireline broadband access, WiFi or WiMax. IMS based
FMC solution is shown in Figure 4.
Figure 21: IMS based FMC
Voice Call Continuity, currently under development in 3GPP R7, extends an IMS network to cellular
coverage and addresses handover. It provides seamless voice call continuity between the cellular
domain and any IP-connectivity access networks that support VoIP. It‘s the most comprehensive of
converged service approaches in that it can work between any cellular technology (GSM, UMTS, and
CDMA) and any VoIP-capable wireless access. IMS-VCC provides for the use of a single phone
number (or SIP identity) as well as handover between WLAN and cellular. It also provides key
advantages:
A single solution to target multiple markets and segments
Enhanced IMS multimedia services, such as greater personalization and
control
Seamless handover of voice calls between a circuit-switched domain and IMS
Seamless integration with other VoIP networks
Access to service from any IP device
40
41. Figure 22: IMS network of FMC
e. Femtocells
A femtocell is a modern, smaller scale, reincarnation of a nano- and picocell technology first
introduced in the previous decade. Specifically, nanocells and picocells were initially brought to
market in the late 1990s by companies like Nokia, Motorola, and Ericsson. Unfortunately these
products were not well received. Among the reasons at the time were limited backhaul bandwidth,
high equipment cost, and poorly chosen deployment strategy—a typical combination of factors for a
technology ahead of its time.
Femtocell solutions nowadays are used to convert traffic to and from standard cellular handsets in
close proximity (typically up to 100 meters) and carry it over IP, reducing to a bare minimum the air
portion of the cellular traffic and relieving operators from the necessity to deploy expensive wide area
cellular sites.
Essentially a femtocell is a miniaturized base station with the following characteristics:
■ Radiated power in the single-digit mill watt range
■ Capacity between four and ten simultaneous active calls
■ Backhaul based on IP over broadband links
■ Range around a hundred meters
Femtocells are typically designed to be installed in residential home zones or small offices. They are
designed to provide the same service as any other base station to subscribers using standard cellular
handsets.
41
42. Figure 23: Femtocell based FMC
4. D.4) FEATURES REQUIRED FOR FMC SERVICES
The following are the major functions necessary to realize an FMC service:
1) Mobility management
To provide an anytime/anywhere FMC service, it is necessary to continuously track the
user‘s whereabouts and deliver incoming data based on this location information. While the
existing mobile communication system manages the user mobility within an access network,
FMC needs to control various access networks such as WLANs and 3G cellular phone
networks and select the most appropriate route.
2) Seamless handover
A function that enables users to seamlessly shift within and across access networks is
required. For example, FMC services must be handed over from a 3G cellular-phone
network to an ADSL/optical fibre network.
3) Features to support various access networks
A feature that allows any type of access net work to be selected according to its availability
and a feature for converting the access network dependent communication protocols to the
access network independent communication protocol of the core network (i.e., SIP) are
needed.
4) Lifeline and emergency response services
Functions for complying with lifeline requirements, for example, support for emergency
responses and ensuring system reliability are needed.
5) SIP basic control
A session control function, for example, for basic call origination/termination and routing, is
required to continue the existing call services. The SIP protocol, which is widely used in IP
networking, is the best choice for the session control protocol.
6) SIP supplementary service control
42
43. A supplementary service scenario and net work resources (talkie files, CODECs, etc.) for
achieving supplementary services are required so a wide variety of services can be provided.
7) Interconnection function
Interconnection with other carriers is essential for expanding the use of FMC services. To
achieve it, functions such as a protocol conversion function and account adjustment function
are required.
8) QoS Control
To provide a wide variety of services over the IP network, a function for ensuring the quality
of communications according to the service characteristics is required. A QoS control
function is especially important to ensure a sound quality equal to that of existing phone
services, regardless of IP traffic levels.
9) Security
10) A high level of security and the protection of privacy are necessities for the communication
services of carriers. In particular, to avoid interception, there should be a focus on features
for authorization and confidentiality.
4. D.5) FMC CHALLENGES
• Number plans and number portability
• Fixed and mobile numbers come from separate blocks and they have prefixes that
contain information for interconnection charging
• Currently there is separate fixed number portability and mobile number portability
available but not fixed/mobile number portability
• Directory services
• Fixed operators provide directory service to their customers. This catalogue contains
information on all fixed line customers
• Currently mobile operators do not offer this kind of service and mobile numbers are
considered as personal data
• Handset availability
• Always a problem in the early stages of any telecommunications technology
• Role of regulators
• Regulators should only set up the environment so that the market forces can guide
direction, extent and pace of FMC
43
44. • Since the definitions of information, data and entertainment has changed the rules
related to network and service providers should change accordingly
FMC impact on Service Providers and Consumers
Enabling voice communications over the same fixed networks that handle data transmissions, and
converging it with mobile cellular systems to deliver a seamless user experience, is by now
recognized as a key strategic advantage by most service providers. Such service providers however
require putting in place complex infrastructure solutions , creating and managing new handset and
CPE programs, and often building new partnerships and alliances for infrastructure sharing, joint
development, billing, and roaming. For those fortunate mega-carriers owning both fixed and mobile
telecommunication assets, there is the additional challenge to find the way to internally partner on
new services without harming the business of the other division. Finally, the need to put in place a
workable deployment and GTM strategy goes without saying.
The approaches to solving these challenges – and the nature of the challenges themselves, for that
matter- vary widely between service provider categories, market segments, and even geographical
areas and the competitive and regulatory landscape in which they operate. While the operators‘
ultimate long –term goals are essentially similar, both the short-term motivation and the barriers to
FMC deployment could not be more diverse.
4. D.6) FMC SWOT ANALYSIS
Mobile Operator Fixed Operator
Impact MVNO Traditional Mobile VOIP PSTN
Cellular Broadband
Strengths
Cost X X
Coverage X X X X X
Capacity X X
Convenience X X X X X
Opportunities
Quadruple play X X X X X
Access to new X X X X X
segments
New services and X X X X X
44
45. applications
New business X X X X X
models and
markets
Churn reduction X X X X X
Weaknesses
Components X X X X X
complexity
Difficult partnering X X X
Cannibalization X X X
Technology X X X X X
immaturity
Threats
Price erosion X X
Diminishing needs X X X X X
Subscriber inertia X X X X X
Weak initial X X X
business case
Regulation X X X X X
Operator inertia X X X X X
Figure 24: FMC SWOT analysis
4. D.7) Offerings under FMC:
Reliance Communication‘s OneOffice Duo - India‘s first fixed mobile convergence solution,
offering a nationwide VPN across Reliance Landline, Fixed Wireless and Reliance Mobile
services.
Huawei: Leading the company's FMC initiatives is the new HG553 VoIP home gateway,
currently available through Vodafone.
The device combines a standard ADSL2+ Wi-Fi-enabled four port router with a pair of
phone sockets for VoIP calling and a dockable USB mobile broadband dongle, giving the user
a backup option of 3G data should the fixed-line service fail. Being removable means that the
owner can take the mobile broadband service with them when necessary.
45
46. Vodafone: Vodafone Germany was the first mobile operator in Europe to pioneer the 'home
zone + DSL' formula, and the resulting service ('Vodafone Zuhause DSL') is a key component
of the German operator's 'At Home' strategy, an integral 'Mobile Plus' prerogative. In essence,
this service encourages end users to cancel their fixed and broadband contract with their
current provider in favor of a bundle of all-mobile home zone and Vodafone's DSL, as
provisioned through Arcor. Perhaps the most promising variant of this service is the
'Vodafone DSL Family' offer. This service has three components. First is the 'Zuhause' option
for the mobile handset, which allows unlimited calling to fixed-line numbers when the caller
is within the designated home zone. Second is a SIM-based 'fixed' telephone for family use,
complete with a 'fixed' geographical number. Third is the 'DSL Pur' broadband element,
without the standard monthly charge for fixed-line rental.
Orange: ‗Unik‘ - UMA-based FMC Service. The services (to be branded ‗Unik‘ in France and
‗Unique‘ in the UK and Netherlands) offer consumers a single device service, with a single
voice mail, address book and sales and support channel. The service is composed of an
Orange broadband subscription, an Orange LiveBox, and Orange mobile subscription and a
choice of three applicable, UMA-ready handsets (Nokia 6136, Samsung P200 and Motorola
A910), to be priced at the EUR 100 ballpark.
BT: BT launched its all-in-one Wi-Fi, Bluetooth and mobile device in 2005 under the brand
name BT Fusion
Fusion aimed to be all services to all men: with one device, fusion customers can make
mobile calls and fixed line calls, routed through a BT-provided and branded router and over a
broadband connection.
T-Com: T-One...T-One combines the benefits of fixed and mobile communications and unites
them in one terminal. Having to decide between fixed and mobile communications is now
history: With two different product options, T-Com enables using the novelty with a classic
telephone line or as a DSL-based offer. In other words, it is completely irrelevant whether the
customer goes for the classic fixed-network option or the DSL-based solution; the benefits of
the convergence solution can be used either way: One line, one telephone, one voice mail
box, one bill
Telecom Italia: Product name ―TIM Unica‖
46
47. 5.) Different facets of convergence:
5. A) CONTENT CONVERGENCE
Content convergence is about being able to do more with your content; reusing content from multiple
sources, automating reuse in new ways, allowing users to choose only the content they want. After all,
content is an asset that costs money to produce and maintain, so the more use organizations can get
from their assets, the more value those assets have.
Figure 25: Platform, technology and content integration
Three digital platforms, six categories of content
Indian Telecom market has been the center of growth for the Global telecom industry in the last
decade and has witnessed major investments from the likes of top Industry players like Vodafone,
47
48. Uninor, and DoCoMo apart from several global PE/VC firms. With the success of smart phones and
continued improvements in high speed broadband services operators are trying to open new revenue
channels by providing media-rich services to their existing customers. Services like music downloads
and video-on demand are already very popular in the market. Telecom players have also successfully
entered the digital content distribution market through DTH route. The first revenue model is the
oldest in use and is now used extensively by telecom players. Telcos like Airtel and Reliance have
started their own DTH services and are playing the role of content distributors.
Figure 26: The value chain of digital content
Big TV
*Anil Ambani's direct-to-home company, Reliance BIG TV is in discussions with foreign studios like
Viacom, BBC, CNN and Fox studios to source high definition niche non-film content.
Airtel
* Has launched launch of the Airtel Digital Media Business. The creation of its Digital Media
Exchange offers the industry, a secure digital distribution capability across multiple media platforms
48
49. International Telecom companies moving into content production
France Telecom- Its subsidiary Orange created studio 37 in order to access audiovisual content
further upstream than a simple Video- OnDemand broadcaster. Studio 37 is entering co -production of
feature-length works; we will invest in 10-15 projects per year
Telecom Italia- Acquired Telecom Italia Media (or TI Media) to move into context space. It fouces
on television production and broadcasting, Advertizing and other multimedia activities
Italia- Launched first fill fledged mobile television channel LA3 devoted to broadcast live
sports,news and entertainment. In just over two years from launch , over 10% of 3 Italia's subscriber
base signed up for service and part of success can be attributed
5. B) Service Convergence
Figure 27: Service Convergence
Service convergence lets people connect simply to a wider number of services using a smaller number
of devices. The primary goal of service convergence is the concurrent delivery of all media types:-
voice, data, and video--all to an easy-to-use graphical interface.
With service convergence, the user experience will be the same independent of the device type used.
Mobile, fixed, and IP phones will behave similarly. For example, a convergent service layer means:
49