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Telecom Convergence




Siddhant Jain
Mob:- 9595637843

Email:- siddhant_jain_ind@yahoo.co.in

http://in.linkedin.com/in/jainsiddhant




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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

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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




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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


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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




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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.





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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

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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.




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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



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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:

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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

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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.




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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.

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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.


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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


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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

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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

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-      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
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
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
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
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
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
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
    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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
•    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
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
 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
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
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
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
Telecom Convergence
Telecom Convergence
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Telecom Convergence

  • 1. Telecom Convergence Siddhant Jain Mob:- 9595637843 Email:- siddhant_jain_ind@yahoo.co.in http://in.linkedin.com/in/jainsiddhant 1
  • 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