"Laying the Foundation for the Second Transformation Wave" presented at Informa's "IMS 2.0 World Forum" in Barcelona, April 2009.

1. Laying the Foundation for the
Second Transformation Wave
Marc Jadoul
Barcelona, 28 April 2009

2. “It’s a great invention, Mr. Bell, … but the
keyboard is a bit tedious for Twittering.”
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3. Today’s Hot Topics for Service Providers
Access to new revenue streams and
Applications
enhanced customer experience
& Content
Improved time-to-market
of new services and features
Applications
Reduced cost of service creation,
Enablement
integration and migration
Broadband rollout and
infrastructure monetization
Network
Transformation and optimization
of networks and IT systems
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4. Strategy Options Menu
Network First or Services First
All-IP Architecture or IP Overlay
Softswitch or IMS
Feature Continuity or Service Innovation
PSTN Emulation or PSTN Simulation
Cost Optimization or Revenue Growth
Consumption-based Indirect revenue model
or
Carrier-driven or Subscriber-driven migration
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5. About the First and the Second Transformation Wave
The First wave The Second wave
• Network first • Services first
• Infrastructure modernization • Portfolio differentiation
• Broadband rollout • RoI on Broadband
• Cost savings: maintenance, • Revenue growth: VoIP,
footprint, real estate, power, Multimedia, IM, video,
OPEX, … triple play, FMC, …
• Service continuity • Next generation services
• Carrier-driven migration • Subscriber-driven migration
Nine out of ten telcos expect telephony to become part of
a broader communications offering that also includes IM,
video communications, and other non-voice services.
Heavy Reading, April 2008
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6. Voice Network Transformation Scenarios
IMS IMS
TDM Class 4 Class 5
Switch Softswitch Softswitch Voice Multimedia
O
Over-
v
lay
e A
r L
T
l L
D a
y I
M
P
Second Wave
First Wave
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7. Obstacles Experienced during the First Wave
Unrealistic requirements and internal resistance
• 100% of products to be migrated
• Unwillingness to kill networks/services
• “No spend on legacy!”
• “Not my customer first!”
Monolithic approach to PSTN migration
• All services/features or nothing
• All customer segments or nothing
Complexity and costs exceeding expectations
• Multi-vendor integration, interop test & end-to-end validation
• Inter-working with legacy and IT (including the processes!)
Massive adoption of competitive services
• VoBB, Triple Play bundles, mobile-only, Skype, …
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8. “Mr. Watson, come here!!!”
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9. Drivers for the Second Wave
Rationalizing and speeding-up PSTN replacement
• Coupling PSTN migration with Access transformation
• Optimizing VoIP rollout, migration scenarios & costs
• Portfolio & features rationalization (e.g. ISDN BRA)
Competing with Cable, Triple Play and OTT services
• Dealing with churn, (fixed) line loss, ARPU loss, …
• Reducing time-to-market for new services
Return-on-Investment on Broadband and IP
• Getting Broadband revenues beyond access
• Stimulating (mobile) data traffic
• Enabling new applications on FTTx, GPON and LTE
Providing value for money to end-users
• Creating and delivering Web 2.0 and Telco 2.0 services
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10. The Second Wave has Already Started
Legacy phase-out
2nd Wave
Subscribers
1st Wave
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
TDM voice Softswitch-based VoIP IMS-based VoIP & MM Services
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11. “How long is she going to stay?”
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12. ‘Tipping Points’ for Accelerating Transformation
Maintenance cost increase
• EOL/EOS or maintenance contract extensions
• ‘Bricks & Mortar’
New investments required in legacy
• Legacy core extension
• Legacy OSS investments
Organizational changes and HR
• Converging lines of business requiring network changes
• (Upcoming) shortage of legacy-knowledgeable personnel
Market pull/push for new services
• Competitive voice (bundles) offering
• Rising end-user demand for next-generation services
Service provider specific
• No simple common threshold applicable to al carriers or markets
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13. www.alcatel-lucent.com
marc.jadoul@alcatel-lucent.com
www.linkedin.com/in/mjadoul
Special thanks to (carrecartoons@skynet.be)
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