San Francisco STC Fall Conference

1. San Francisco 30th Anniversary
Barcelona Supplies Market
MERCABARNA
TELECOMMUNICATIONS
NETWORK
Bringing 21st Century
IT Solutions to an 18th
Century Business
Agustín Argelich
Argelich Ingenieros S. L., Barcelona (Spain – Europe)
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2. San Francisco 30th Anniversary
Agenda
1. The Client and the Project
2. Technical Aspects
3. Financial Model
4. Ongoing Management
5. Conclusions
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3. San Francisco 30th Anniversary
Business Opportunity
Private campus networks, specially with direct and
indirect clients, are a good consultancy business
opportunity because:
 They offer long-term relationships.
 High investments
 Complex environments.
 Are not easy to design, manage and operate.
Main benefits for a consultant:
 Earn some money
 Develop all your skills and apply all your knowledge.
 It is a great professional challenge.
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4. San Francisco 30th Anniversary
Business Opportunity
Where to apply and get profit of Private campus
networks expertise?
Potential Campus Network Clients
 Airports
 Seaports
 Business parks and industrial areas
 University campuses
 Resorts and hotels (we also have a significant experience
in these areas)
 Luxury residential areas.
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5. Bringing 21st Century IT Solutions to an
San Francisco 30th Anniversary
18th Century Business
MERCABARNA TELECOM
NETWORK
Introduction
The Client and the
Project
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6. San Francisco 30th Anniversary
The Client
MERCABARNA Barcelona Supplies Market
• The Barcelona Food Unit, covering an area of 90 hectares (225 acres) in
the Free Trade Zone.
• It is home to the wholesale Fruit and Vegetable, Fish and Flower
markets and the Abattoir.
• 800 businesses from the foodstuff sector are located on the industrial
estate.
• Supplies over 10 million people directly.
• One of the most important international
distribution centers for fresh products.
• The market has been globalized,
Mercabarna is a variation of Wall Street. It
purchases and sells worldwide.
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7. San Francisco 30th Anniversary
The Project
 Design, implement and operate a state-
of-the-art private telecom network to
solve inside and outside facility telecom
needs
 Provide a competitive advantage to
businesses installed in MB from other
food units or industrial areas
 Powerful voice, data and video network
 Create a powerful telecom user group to
achieve better prices
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8. San Francisco 30th Anniversary
Too Many Clients
The Actual Client (who pays the consultant fees)
MERCABARNA Barcelona Supplies Market
Mercados de Abastecimientos de Barcelona S. A. (MBSA) is a public company
Shareholders: 51% Barcelona City Council
49% MERCASA: Spanish Company for Food Wholesale Markets
MBSA is a public company working as a private company.
MBSA is the Facility Manager and also the owner of the facility
The Indirect Clients (clients of MBSA)
800 companies grouped in sectorial associations (Fish, Meat, Flowers and
Fruits and Vegetables)
Each association negotiates with MBSA.
They rent points of sale in the Market and space to build their own stores and
offices.
The Actual Client and almost all Indirect Clients
are telecom network users.
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9. San Francisco 30th Anniversary
Project History
 4th Qtr 1992 Feasibility studies
 2nd Qtr 1993 Finish studies without approval. Spanish economic crisis after 92 events
 2nd Qtr 1995 Reboot
 1st Qtr 1996 Agreement between Facility Manager and Fruits and Vegetables Sector to begin.
 January 1997 Phase I Fruits and Vegetables network working as an internal network
 December 1997 1st agreement with a carrier to connect network to public networks. Global One (France Telecom)
 1st Qtr 1998 Phase II: Network of complementary activities zone seaside
 December 1998 Cellular user group. Agreement with Vodafone
 1st Qtr 1999 Phase III Network of Flower Market, Abattoir and Access gates.
 1st Qtr 2000 Phase IV Network of complementary activities zone mountain side
 2nd Qtr 2000 Network manager and new fixed telecom carrier: Al-PI (France Telecom)
 3rd Qtr 2002 Phase V: Network of Fish Market
2nd Qtr 2004 Ethernet Network migration from hubs to switches
14 years

 1st Qtr 2005 Wi-Fi
 2nd Qtr 2006 Videosurveillance using Video IP (160 cameras)
 3rd Qtr 2006 Migration from TDM to VoIP
 Step by step.
 Too slow from a consultant’s point of view. Patience gets you
there.
 The consultant can see the project and its potential and
benefits, but the client groups (direct and indirect) need too
much time to understand and to overcome their fear of failure.
 External aspects, not telecom, have too much influence on
decisions.
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10. San Francisco 30th Anniversary
Consultancy Services
• How did we get the client?
• In December 1992 MB asked for a second opinion for a network design done,
free of charge, by a telecom installer (system integrator).
• When the client received our study, he decided he needed an independent
consultant to lead the project.
• What consultancy services do we provide to MB?
• Feasibility studies
• Negotiate the agreements between the end user and the Facility Manager
• Design and re-design financial models
• Prepare technical specifications. Network design.
• Select systems integrators. Public tender process. Propose and negotiate
contracts.
• Project management of the implementation phase. Acceptance test.
• Select network manager. Public tender process. Propose and negotiate
contracts.
• Select carriers. Fixed and wireless (cellular).
• Ongoing network management supervision
• Propose new investments and projects. Discuss with carriers and network
manager.
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11. Bringing 21st Century IT Solutions to an
San Francisco 30th Anniversary
18th Century Business
MERCABARNA TELECOM
NETWORK
Technical Aspects
Campus Voice, Data
and Video Network
Solutions
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Network Architecture
Content Analytics Private Telephony Industrial REAL-TIME
REAL-TIME and OFF-LINE Signals
Alert Network Applications Power Supply,
Alert
Research Tools Analog Digital & IP Lights, Cold, HVAC Statistics
Network
Video IP Voice Data Control Management
CAPILAR NETWORK
Twisted Pair CAT Ve and CAT VII and Wi-Fi 802.11g
Ethernet 10/100/1000
BACKBONE or CAMPUS NETWORK
Single and Multimode Fiber
2x1 Gbit links between nodes
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Physical Network Topology
 Double star topology  Complementary activities zone (yellow):
 Market buildings (red): twisted • A node in each block
pair Cat Ve and Cat VII to each • Multimode fiber directly to each
point of sale company building
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14. San Francisco 30th Anniversary
Network IP Architecture
Only one network for voice, data, video and control
Ethernet WAN
Remote office
Hotspot
Biometrics Access Control
Video IP Audio
VoIP Output Trigger Alerts
Workstations Audio Input
LAN
Video Server Voice Server
Network Database
Management Mass Storage Applications
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15. San Francisco 30th Anniversary
Ethernet Network
FLOR
Z0
C2950-48
C3550-24-FX
EX MERCATRADE
24 x RJ-45
MERCAEUROFRIO C3550-24-FX
24 x RJ-45
FRIGOSCANDIA
C2950-24 Z1
3 X C2950-24 BANCS
C3508 C3550-24-FX
C3508 C-3550-24-FX
24 x RJ-45
C3550-24-FX
C3548
CC1
A GBIC3 del 6509
C2950-24
CD2
C2950-24
CD1
CD3
A GBIC1/GBIC2 del 6509
3750G-24TS-E C2950-24
24 x RJ-45 G0
A C2950-48 C2950-48 D
C3508 24 x RJ-45 24 24 x RJ-45
x RJ-45
(del PEIX) C2950-24
24 x RJ-45
CD4 3750G-12S-S 24 x RJ-45
3750G-12S-S 24 x RJ-45
C2950-48
3750G-24TS-E
B C2950-48
24 x RJ-45
24 x RJ-45 C2950-48 E
24 x RJ-45 24 x RJ-45
C2950-24
C2950-24 24 x RJ-45
24 x RJ-45 24 x RJ-45
PEIX
C2950-48 24 x RJ-45
C3548 C3548 C3548 C3548 C C2950-48 F
24 x RJ-45 C2950-24
C2950-24
G C2950-24
P0
C3508 P1 P2 P3
C2950-24 C2950-24
Video SX
Video LX
Punt Verd FRIMERCAT-2 LX LINK
SX LINK
GIGASTACK
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16. San Francisco 30th Anniversary
Voice Network
B0
FISH
160 ext. a/b
B2
8 E&M W2
1 PRI
ISDNI
FRANCE TELECOM
Ethernet (AL-PI)
IP PHONES
B2 GSM
MOBILE/WIRELESS
4 PRI
Head office
G
2Mbps
E
B3
B W2
B1 112 ext. a/b
16 ext. dig. So
W2 B2
128 ext. a/b 320 ext. a/b
F
C
Network Supervisor W2
128 ext. a/b B2 112 ext. a/b
W2
Voice Mail
Node G0
QSICS
Bus 50Mb Tenovis
160 ext. a/b
Node Z0 B2 - 2200 Analog & Digital
8 E&M W2
- 100 IP Extensions
Cultivar
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17. San Francisco 30th Anniversary
Wi-Fi
- Wireless Security
• All transmissions are encrypted using IPSEC, L2TP or PPTP.
• Each terminal uses a VPN tunnel.
• ACS radius assigns an IP address of a business VLAN.
- Wi-Fi Management
• Channel assignment
• Intrusion detection: unauthorized access points
• Complex implementation phase
Internet
Internet
VPN 3000 VPN 3000
PIX
Access Point
120 access points
Catalyst 6500 Catalyst 29XX
Catalyst 35XX
Usuarios Wireless
ACS / WLSE / DHCP
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18. San Francisco 30th Anniversary
IP Video
• Really easy to add or
Remote Control Anywhere move any camera; you
INTERNET only need a network.
• Video content analysis
Control Center
Motion Detection Camera
LAN
Outdoor Camera Indoor Camera
Video Cameras: 160 Video CODECS: MPEG-4 and MJPEG
On-line: 1 week Video Size: 1 CIF (352 X 288):
Record: 24x7 Frames: 15 fps
Permanent bandwidth per camera: 1.5 Mbits
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19. San Francisco 30th Anniversary
Services
Facility Manager
 Corporate LAN and Internet access
 Corporate PBX
 Video surveillance
 Industrial Control: light, electrical consumption control, cold
stores
 Access Control Applications
Facility Users
 Corporate VLAN
 VPN with external offices
 Virtual corporate PBX fixed and mobile abbreviated number plan
 Best prices for telecom services, calls, WAN, Internet
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20. San Francisco 30th Anniversary
Technological Partners
Cabling system
Ethernet Network switches and Wi-Fi
Equipment, Security: Firewalls and VPN
Servers
Voice
Video IP, cameras and record and analysis
platform
Network Manager and fixed telecom carrier
Wireless carrier
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21. San Francisco 30th Anniversary
Figures
Most significant figures:
Market figures:
 1,067,000 tones of products commercialized in Fruits Market
 90,000 tones of fish, seafood and frozen commercialized in Fish
Market
 19 millions of products commercialized in Flower Market
 33,000 tones of cattle slaughtered in abattoir
 More than 3,600,000 vehicles run inside the market every year
Telecommunications figures:
 1 Gbit Internet Connection
 100 Wi-Fi antennas
 450 business data connections at 100 and 1000 Mb
 350 VLANS
 2,200 fixed telephony extensions
 Pool of 1,100 cellular phones integrated into the fixed telephone network
 160 IP video cameras
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22. San Francisco 30th Anniversary
New Projects – Next Phase
 Try to get a virtuous circle of permanent
improvements.
 Continuously propose new applications,
solutions. Explain new technologies.
New Ideas
• Facility Security: control video cameras accessed
thru security agents’ PDA
• Voice migration from TDM to VoIP. Wireless VoIP
• Industrial control using IP:
 Power Consumption
 Light
 Industrial Cooling
 HVAC
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23. Bringing 21st Century IT Solutions to an
San Francisco 30th Anniversary
18th Century Business
MERCABARNA TELECOM
NETWORK
Financial Model
A Win-Win Solution
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First Financial Model
Users Pay Facility Manager
Disadvantages:
• Appears to users that Facility Manager provides telecom services.
• It is not the Facility Manager’s business.
Fix Telecom
System
Carrier
Integrator
Facility Cisco AMP Avaya Sony ...
Users Owner &
Manager
Consultant
Network Investments
Manager Services
Fees
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25. San Francisco 30th Anniversary
Current Financial Model
For Facility Manager the network is now a Financial Business
Fix Telecom Network System
Carrier Manager Integrator
Facility Cisco AMP Avaya Sony ...
Users Owner &
Manager
Consultant
Cellular
Investments
Telecom Services
Carrier Network rent income
Fees
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26. San Francisco 30th Anniversary
Current Financial Model (II)
 Facilities Manager (FM) capitalizes network and receives
rent from carriers to pay it off.
 For FM this is a financial business in itself, but the facility
also attracts more and more qualified clients indirectly.
 End users pay directly to the carriers and pay
complementary particular investments.
Model advantages:
• FM possesses financial authority and also controls the
network, including the quality of services.
• Carriers do not need to do an important investment in
last mile. Get a lot of clients in only one point, the
central node.
• Users have powerful, cheap and fully managed telecom
services.
• All players are focused on their business.
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27. San Francisco 30th Anniversary
Preferred Financial Model
An Independent Network Manager
Additional advantages:
• Permanently select best carriers
• Only one invoice and one contact point for end users
Fix Telecom System
Carrier Integrator
Facility Cisco AMP Avaya Sony ...
Network
Users Owner &
Manager
Manager
Consultant
Cellular
Telecom Investments
Carrier Services
Network rent income
Fees
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28. Bringing 21st Century IT Solutions to an
San Francisco 30th Anniversary
18th Century Business
MERCABARNA TELECOM
NETWORK
Ongoing Management
Model
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29. San Francisco 30th Anniversary
Management Model
Businesses run on networks, and networks
run with management
Three levels:
 Facility Manager Board of Directors: when telecom issues are being discussed,
the telecom consultant is invited. Take strategic decisions to achieve business
objectives.
 Work group or supervising committee: objective quality control and price of
services and propose new investments and applications. Analyze statistics.
 Users committee
Supervisor Committee
FM Technical Director
Network
Facility Manager Consultant
Manager
Network
Engineering staff
Management
members
Supervision
Maintenance Technical Head of Head of
Commercial
Director Director Operations Engineering
Engineering staff
3 staff members 2 staff members
members
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30. San Francisco 30th Anniversary
Management Model
Get ahead of user needs
Look for the best
interlocutor
Users Committee
Users Supervisor Committee
Representative of Representative of
Representative of Representative of Network
Fruits & Vegetables Flowers Market Facility Manager Consultant
abattoir users Fish Market users Management
Market users users
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31. San Francisco 30th Anniversary
Management Know-How
Consultant Strategy
• Meetings with too many people are dangerous. Unexpected things can
happen.
• Control large meetings. Consultant must prepare the agenda and the
minutes.
• The scope, objective and agreements as well as conclusions must be
closed before formal meetings are held and discussed separately with
the different players. Real work must be done before and discretely.
• The consultant’s power is his integrity and knowledge. The consultant is
who has more information, unfortunately not all the information.
Facility Manager Strategy
• Why a supervising committee. To solve problems in advance before
users detect them.
• FMs have too many communication problems with users (human
relationship) who also have telecom problems, so Network Manager
under Consultant supervision has to solve all technical incidents and
service requests.
• Users had to talk only with the Network Manager without involving FM.
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32. Bringing 21st Century IT Solutions to an
San Francisco 30th Anniversary
18th Century Business
MERCABARNA TELECOM
NETWORK
Conclusions
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33. San Francisco 30th Anniversary How to maintain and increase customer
loyalty over fourteen years (I)
Only Some Ideas - Not All Possible Ways
 Be Always Patient, with people and with money. Do not focus only
on short-time business. Avoid working for free.
 If you make a mistake, say “I am sorry; I will do better next time.
We are making our best effort.”
 Be imaginative about fees. Play with fixed and variable
components. Choose the right moment to submit the invoices.
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34. San Francisco 30th Anniversary How to maintain and increase customer
loyalty over fourteen years? (II)
• Identify major risks and manage them:
 Changes in key client contact people. Necessary to resell
yourself.
 Carriers’ arrogance. They want to control all aspects. They
will try again and again to persuade clients that they do not
need an independent consultant. Do not sleep.
• Clever clients understand why they need an independent
consultancy. Look for clever clients.
• Select “partners”. Specialized companies are the best. Do not put
your business in the hands of too big companies, such as a
carrier.
• “Slalom skier strategy”: get ahead of problems, you have to
turn before you arrive at a slalom pole. There are always
warnings announcing a problem.
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35. San Francisco 30th Anniversary
Marketing is Networking
 Mr. Maymo, MB CEO, says: “Telecom networks allow small
companies to better compete with large organizations”.
The MB network has also a social component
 All businesses need telecom networks, also traditional
ones.
 A telecom network is the nervous system of all
organizations and facilities. Without networks they cannot
coordinate well.
 Networks will be present everywhere.
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36. San Francisco 30th Anniversary
Marketing is Networking
 STC members should share project
expertise.
 A project alive during fourteen years is a
good reference, STC members can use it.
 Increase relationships between USA and
Europe
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37. San Francisco 30th Anniversary
Questions?
Please speak slowly. My English is not perfect.
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38. San Francisco 30th Anniversary
Thanks. . .
 For your attention and sorry for my limited English
proficiency.
 To Henry Baird for his help and suggestions.
 To the Conference Organizing Committee for selecting this
Mercabarna Telecom Network Business Case.
 To my team in Barcelona: Ignasi, Ana, Juan, Anabel, Dani
and Sandra.
 To my wife for her special patience and permanent
support. To my whole big family.
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39. Bringing 21st Century IT Solutions to an
San Francisco 30th Anniversary
18th Century Business
MERCABARNA TELECOM
NETWORK
Author Contact Data
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40. San Francisco 30th Anniversary
Author’s Resume
Agustín Argelich Casals
 Technical Telecom Engineer (12/1986)
www.salle.url.edu
 European Engineer (no. 12,868 ES)
www.feani.org
 STC MEMBER (06/2006)
 Owner. Director. Principal Consultant.
ARGELICH INGENIEROS S. L.
Independent Telecom Consultant and
Engineering Company since 10/1992
Previous professional experience
 Barcelona '92 Olympic Organizing Committee (04/1990 to
10/1992.). Technology Director IX Paralympic Games Barcelona
'92. Telecom Controller during Olympic Games.
 Ascó Nuclear Power Plant. (03/1988 to 03/1990). Telecom
Manager
 Spanish Air Force. USA and Spanish Common Air Base in
Saragossa (03/1987 to 02/1988). Lieutenant.
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41. San Francisco 30th Anniversary
Argelich Ingenieros
Contact Data:
Rambla de Catalunya 112
08008 Barcelona
Tel. + 34 93 415 12 35
Fax + 34 93 217 42 98
e-mail: argelich@argelich.com
www.argelich.com
Main clients:
roca.es laufen.com mercabarna.es manpower.es editorialcasals.com
sagelogiccontrol.com nyn.es rsmseguros.es
ub.es
panrico.com aena.es fibanc.com atll.es
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