OSS/BSS

MAINTAINING COMPETITIVE ADVANTAGE

OSS – A BUSINESS PERSPECTIVE

INTRODUCTION

OSS – A BUSINESS PERSPECTIVE

FINANCIAL

CUSTOMER

PRODUCTION

REVENUESTRATEGY

PRODUCTION STRATEGY

PROCESS

REVENUE STRATEGY:

2. ARPU OF EXISTING SUBS

3. NEW SUBCRIBER ADDED

PRODUCTION STRATEGY:

6. COST OF OPERATIONS

7. COST OF MAINTENANCE

COMMON REVENUE STRATEGYFACTORS AFFECTING REVENUE

STRATEGY:

3. ADDRESSABLE MARKET4. NETWORK COVERAGE5. DEMAND FOR VAS6. LIMITATIONS DUE TO

REGULATION7. STANDARDIZED EQUIPMENTS

EXISTING TARGET MARKET

SERVICE PROVIDER A

SERVICE PROVIDER B

SERVICE PROVIDER C

OPERATIONS A

OPERATIONS B

OPEARTIONS C

THE REVENUE STRATEGY IS DETERMINED BY THE EXTERNAL ENVIORNMENT AND HENCE POTRAYS A COMMON FIELD FOR ALL SERVICE PROVIDERS.

WHERE IS THE DIFFERENTIATION ?• CUSTOMER SUPPORT.• SCALABLE NETWORK.• QUALITY OF SERVICE.• LAUNCH OF VIABLE VAS.• ACCURATE AND CUSTOMIZED

BILLLING.• EFFICIENT TROUBLESHOOTING

AND PROBLEM MANAGEMENT.• REDUCED TIME LAG.• PROACTIVE NETWORK

MANAGEMENT.• COMPETITIVE PRICING.• REDUCING TCO OF THE NETWORK.• REDUCING COST OF OPERATIONS.

BUSINESS MANAGEMENT

SERVICE MANAGEMENT

NETWORK MANAGEMENT

ELEMENT MANAGEMENT

ELEMENTS

LEVELS OF DIFFRENTIATION.

W H E R E T O D I F F E R E N T I A T E ?

N E W S E R V I C E L A U N C HC O M P E T I T I V E P R I C I N G

S C O P E O F T H E N E T W O R K

B U S I N E S S L E V E LD I F F E R E N T I A T I O N

O R D E R P R O C E S S I N GS E R V I C E A C T I V A T I O N

S E R V I C E D E L I V E R YC U S T O M E R S U P P O R T

I N V E N T O R Y M G M TS E R V I C E P R O V I S I O N I N GT R O U B L E T I C K E T M G M T

S E R V I C E L E V E LD I F F E R E N T I A T I O N

N E T W O R K C O V E R A G ET R O U B L E S H O O T I N G

P R O B L E M M A N A G E M E N TN E T W O R K M A I N T A I N E N C E

N E T W O R K L E V E LD I F F E R E N T I A T I O N

L E V E L

EXAMPLE : DETERMINING QOS REQUIREMENTS

DELIVERING QOS FOR A NEW SERVICE

• DETERMINE LEVEL OF QOS REQUIRED FOR COMMERCIAL LAUNCH.

• PLAN FOR THE HARDWARE & SOFTWARE REQUIRED FOR ATTAINING THE DESIRED LEVEL OF QOS.

• MONITORING THE LEVEL OF QOS ACHIEVED AFTER SERVICE ACTIVATION.

• BALANCING THE ACHIEVED LEVEL OF QOS WITH THE COMMERCIALLY VIABLE LEVEL AS DESIRED BY THE CUSTOMER.

CUSTOMERREQUIREMENT

CUSTOMER’S PERCEPTION

QOSACHIEVED

QOSOFFEREDNEED GAP

EXECUTIONGAP

PERCEPTION GAP

VALUE GAP

QUALITY CYCLE

HERE IS WHERE THE DIFFERENTIATION EXISTS…

CUSTOMERREQUIREMENT

CUSTOMER’S PERCEPTION

QOSACHIEVED

QOSOFFEREDNEED GAP

EXECUTIONGAP

PERCEPTION GAP

VALUE GAP

BUSINESS LEVEL DIFFERENTIATION

ELEMENT LEVEL DIFFERENTIATION

&

SERVICE LEVEL DIFFERENTIATION &

NETWORK LEVEL DIFFERENTIATION

NETWORK LEVEL DIFFERENTIATION

QUALITYCYCLE

OSS HELP THE SERVICE PROVIDERS TO QUALITATIVELY AND QUANTITAIVELY UNDERSTAND & REDUCE THE GAPS AND HENCE ALLOW THEM TO PLAN AND DELIVER THEIR SERVICE VALUE PROPOSITIONS WITH MUCH MORE EFFICIENCY.

PLANNING TOWARDS DIFFERENTIATION

The planning for differentiation would have to start from the element management layer and extend up to the business logic layer.

Factors determining differentiation would be:

• The ability of the service provider to roll out new services on demand. • The ability of the service provider to reduce time lag between the service

ordering to service provisioning.• The ability of the service provider to provide quick and efficient fault

management , trouble ticket management.• The ability of the service provider to provide the customer accurate and

customized billing.• The ability of the service provider to maintain inventory check to avoid over

expenditure. • The ability of the service provider to monitor his network proactively, and

maintain desired levels of parameters governing the commercial success of the service.

A REVENUE MODEL

B U S I N E S SV I A B I L I T YA N A L Y S I S

S E R V I C ED I F F E R E N T I A T I O N

P A R A M E T E R S

N E T W O R KM A N A G E M E N T

( P R O A C T I V E )

E L E M E N TM A N A G E M E N T

D A T AM I N I N G

& T R E N DA N A L Y S I S

O P E R A T I O N S

PHYSICAL NETWORKS

MAXIMIZING SHAREHOLDER WEALTH

CUST. ACQUISITIONCUST. RETENTION

C

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OSS: THE NEXT STEP

AN OPERATIONS PERSPECTIVE

OSS – SPEAKING OF HISTORY• OPERATION SUPPORT SUBSYSTEM WAS

INITIALLY THOUGHT OF AS A MAINFRAME SYSTEM , WHICH WOULD BE USED TO SUPPORT THE DAILY OPERATIONS OF A SERVICE PROVIDER

• TODAY, OSS HAS BEEN GRADUATED FROM JUST A SUPPORT SYSTEM TO A LIFE LINE FOR THE SERVICE PROVIDERS TO DEVELOP COST EFFICIENT PROCESSES FOR SERVICE DESIGN AND DELIVERY THEREBY REDUCING SUBSCRIBER ACQUISITION COST AND SUBSCRIBER CHURN.

AHA ! THOUGHT IT WAS

OPEN SOURCE SYSTEM !

FUNCTIONAL DECOMPOSITION DIAGRAM

OPERATIONS

ORDER ACCEPTANCE

ACTIVATIONENGINEERING FAULT MANAGEMENT

REPORTS

ORDERSPECIFICS

INVENTORY

IMPLEMENTATION

DESIGNBILLING

PROVISIONING

ELEMENTMGMT

TROUBLE TICKETMANAGEMENT

AUDIT

TRAFFIC

MIS

FIG: SHOWS AN EXAMPLE OF A FUNCTIONAL DECOMPOSITION DIAGRAM FOR SERVICE LEVEL MANAGEMENT

INFORMATION & PROCESS INTEGRATION

WORK FLOWENGINE

ORDER PROCESSING

CUSTOMER SUPPORT

MARKETING & PROMOTIONS

DESIGN & INVENTORY

INVENTORY MANAGEMENT

BILLING

NETWORK MANAGEMENT

PROVISIONING

OSS products streamlines operations by maintaining a central database and a workflow engine which would be responsible for interacting with the process modules giving the service provider one point of view of its entire operations helping him to analyze his cost and profit centers.

Design Principles- Industry Standards

• Design -NGOSS compliant.

• System definitions & design based

on SID principles.

• Business Analysis & design based

on e-TOM definitions

Syste

ms

Syste

ms

Analys

is &

Analys

is &

Desig

n

Desig

nSh

ared

Info

rmat

ion

& Dat

a

Model

(SID

)

Business

Business

Process Analysis

Process Analysis

& Design

& Design

Business

Process Map

(eTOM)

OSS/BSSOSS/BSSSolutionSolution

NGOSSNGOSSCOMPLIANCECOMPLIANCE

THE PRODUCT ISSUES• SELECTION & SELF ACTIVATION • FLEXIBLE AND EASILY CUSTOMISABLE.• API’S FOR INTEGRATION WITH BILLING & CUSTOMER CARE

SYSTEMS.• HIDING PHYSICAL LEVEL & BUSINESS LEVEL COMPLEXITIES.• ENABLING SERVICE ASSURANCE & MAINTAINENCE.• PLATFORM & HARDWARE INDEPENDENT.• 3-TIER MODULAR CLIENT SERVER ARCHITECTURE.• ROI PERSPECTIVE.• DEFINED PARAMETERS REPORTED TO ASCERTAIN USAGE AND

BENEFITS. VALUE SHOULD BE DEFINES IN QUANTIFIABLE TERMS.

GROWING SYSTEM INTEGRATION CONCERNS

• DEMAND FOR PLUG AND PLAY INTEGRATION.

• USE OF JAVA API’S AS A PART OF OSS THROUGH JAVA INITIATIVE.

• OFF THE SHELF OR MODULAR APPROACH TO INTEGRATION.

• ABILITY TO SEAMLESSLY INTEGRATE WITH LEGACY SYSTEMS AND OTHER OSS MODULES FROM DIFFERENT VENDORS.

• EASE OF DATA MIGRATION & IMPROVED DATA VISIBILITY.

• OPEN SYSTEMS CONNECTIVITY.

• ABILITY TO INTEGRATE WITH CUSTOMIZED AND HETEROGENOUS SYSTEMS.

INTEGRATION APPROACH

ACTION SCHEDULER

BUSINESS RULEREPOSITORY

TECHNOLOGY PLATFORM FOR INTEGRATION( EAI, OSS/J,. NET )

PROCESS LEVELINTEGRATION

SEMANTIC LEVELINTEGRATION

DATA LEVELINTEGRATION

ACTION MODELLER

INTER MODULE JAVA API

PROCESS

MODELLER

WORK FLOW

ENGINE

AN INTEGRATION APPROACH

DATABASE (RDBMS)

BUSINESS RULES ACTION MODELLER SCHEDULER

TRANSACTION PROCESSER

BUSINESS PARAMETERSBUSINESS PARAMETERS

SERVICE PARAMETERS

CHANNEL PARTNERS WEB

LEGACY SYSTEMS

CONFIGURATOR&

ACTIVATION ENGINE

INTEGRATION FEATURES REQD.

APPLICATION

PREDEFINED PROCESS

PARAMETERSBILLINGSYSTEM

SUBSCRIBER MGMT

ORDERMGMT

N/WACTIVATION &

MGMT

SYS

ACTIVITY ASSIGNMENT, SCHEDULING & REPORTING SYSTEMSFOR FIELD TECHNICIANS

WORKFLOW

D

A

T

A

AN INTEGRATION EXAMPLE

INTERNET

WEBSERVER

APPNSERVER

DATA

DATA

ORDER MANAGEMENT

SYSTEM

ACCEPTOR

WORKFLOWENGINE /PROCESS

MODELLER

ACCEPTOR RESPONSE

BSNL

DOCUMENT FOR COMMISIONINGDOT LINE

ACCEPTOR

RESPONSE

IP ADDRESSASSIGNMENT

SYSTEMSERVICE

PROVISIONINGAND

ACTIVATIONSYSTEM

ACCEPTOR

RESPONSE

SLA ENGINE

N/WMGMT

&REPORTING

TOOL

INVENTORYMGMT SYSTEM

RESPONSE

DATA

SUMMARY OF OPERATIONAL CAPABILITIES

• PROVISION NEW SERVICES ON DEMAND• ADD AND MONITOR CAPACITY PROACTIVELY.• BILL INDEPENDENTLY FOR SERVICES &

CONTENT.• PREVENT REVENUE LEAKAGES & GENERATE

REVENUE CAPTURE AREAS• MAINTAIN QOA AND SLA CONFORMANCE• PROACTIVE AUDITS TO MEET NEW DEMANDS.• INTEGRAL PARTNER IN SERVICE INNOVATION,

CUSTOMER ACQUISITION & RETENTION.

OSS

BUILDING A BUSINESS CASE

BUILDING A BUSINESS CASE - I

BUSINESS OPPORTUNITY

A typical telecom service provider spends about Rs 150 on telecommunications and equipment costs for every Rs 5000/- it brings in from a dial-up customer. By contrast, it spends about Rs 4000/- for every Rs 5000/- it brings in from a Rs2500/month customer. Added to this is the cost of time delay approximately for commissioning leased line would typically range from 50 to 60days. With the cost of subscriber acquisition reaching to about Rs 6250/- and the industry already burdened with accumulated losses of over Rs 12,000 cr a service provider can ill afford to ignore the efficiency brought in by an intelligent OSS integration.

THE VALUE CHAIN

VENDOR

NETWORK INTEGRATOR

SERVICE PROVIDER

ENDUSER

OSS PRODUCT

VENDOR

SYSTEM INTEGRATOR

BILLING SOLUTION PROVIDER

ISV

I II

III

IV V

MARKET SEGMENTATION

D A T AV O I C E

( I P B A S E D )

I S PN S PM S P

N L DI L D

( T D M B A S E D )

B S PB A S I C S P

M S PM O B I L E S P

T A R G E TM A R K E T

S E G M E N T

THE OSS VENDORS AND INTEGRATORS NEED TO UNDERSTAND THE OPERATIONAL LEVEL OR THE SERVICE LEVEL DIFFERENCES BETWEEN THE SEGMENTED MARKETS TO POSITION THE PRODUCT MORE EFFECTIVELY , CATERING TO INDIVIDUAL TOUCH POINTS & PAIN AREAS FOR THE SERVICE PROVIDER.

TYPICAL SCENARIO FOR TARGET SEGMENT

SERVICEOFFERRINGS

NETWORK SERVICES

APPLICATION SERVICES

MANAGED SERVICES

WEBBASED

SERVICES

ITENABLED SERVICES

CORE BACKBONE

ISSUES IN OSS PRODUCT MARKETING

• DEVELOP NEED FOR OSS SOLUTION ITSELF.

• DEVELOP NEED FOR THE OSS PRODUCT.

• DEVELOP NEED WITHIN A COST SENSITIVE & TURBULENT ECONOMIC SCENARIO.

• QUANTIFY BENEFITS AND ROI PERSPECTIVES.

OHO!I SEE ITS NOT OPEN SOURCE

SOFTWARE

CHALLENGES

OSS VENDORS

ISSUES SURROUNDING

VENDORS

TIME TO MARKET V/S

TIME TO ROI

LEADING

ERP

VNDORS

SAP

LEADING

BSS

VNDORS

SEIBEL

NEED FOR PROVEN SOLUTION

LEGACY SYSTEM MIGRATION, LEGACY SYSTEM DATABASES &

TECHNOLOGY SCALABILITY SYSTEMS

COST OF OWNERSHIP ISSUES

TRANSACTION TIME

THROUGHPUT

&

RESPONSE TIME

SERVICE PROVIDERDESCISION FILTERS

SOLUTION SALES CYCLE

COST BENEFIT ANALYSIS

QUANTITATIVEROI

INDICATION

SOLUTION DESIGN

SOLUTIONDEPLOYMENT

RISKANALYSIS

CORE PRODUCT

AUGMENTED VALUE ADDED PRODUCT

INTEGRATED SOLUTION ADDRESSING PAIN AREAS

NEEDUNDERSTANDING

REAL NEEDGENERATION

REAL NEEDINCUBATION

NEED ANALYSIS• DOMAIN LEVEL UNDERSTANDING OF

THE INDUSTRY• OPERATIONAL & BUSINESS LEVEL

UNDERSTANDING OF THE SERVICE PROVIDER.

• DETERMINE THE MODE:

4. GROWTH MODE

5. RETENTION MODE

6. EVEN MODE

• DETERMINE THE CORE ASSET & THE MOST CRITICAL FACTOR AFFECTING ITS BUSINESS.

• DEVELOP BUSINESS VIABILITY FOR OSS PRODUCT AROUND THAT FACTOR & QUANTIFY IN REAL TERMS THE BUISNESS IMPACT.

NEEDUNDERSTANDING

REAL NEEDGENERATION

REAL NEEDINCUBATION

NEED ANALYSIS- ICLASSIFIED EXAMPLE : TYPICAL ISP SERVICE DELIVERY

CONSIDERATIONS

ISP

TECHNICAL

OPERATIONS

IP ADDRESSASSIGNMENT

ROUTER PORTSAVAILABLE

SERVICE PROVISIONING

ORDERACCEPTANCE & DELIVERY

BILLING

LINK CAPACITY

SERVICE ACTIVATION

TROUBLE TICKET

MANAGEMENT

ON NET &

OFF- NET INVENTORYSLA

CONFORMANCE

BUSINESS VIABLITY OF SERVICES

H/W OR SERVICEPARTNER

PERFORMANCE

BUSINESSPARTNER

PARTNERSHIP

NEED ANALYSIS II• CLASSIFY EVERY SINGLE OPERATIONAL

FACTOR CONTRIBUTING TO SERVICE FULLFILLMENT.

• IDENTIFY THE EASILY APPROACHABLE CRITICAL FACTORS WHICH ARE CONTRIBUTING TO SERVICE FULLFILLMENT.

EXAMPLE: IP NUMBER ASSIGNMENT, INVENTORY MANAGEMENT.

• RELATE AS TO HOW STANDARDIZING PROCESSES AND OPERATIONS WOULD IMPROVE REVENUE EARNINGS ON HIS CORE ASSET I.e THE NETWORK

• IDENTIFY & HIGHLIGHT THE PAIN AREAS IN THOSE OPERATIONS

EXPANDING HORIZONS BY INDIVIDUAL LEVELANALYSIS

AND CLASSIFYING PAIN AREAS

SERVICEACTIVATION

BILLING

TIME LAG IN ORDER

FULLFILLMENT

IP NO. ASSIGNMENT

INVENTORYMANAGEMENT

NEED INCUBATION• DEMO• SYSTEM INTEGRATOR PREFERRED

PRODUCT VENDOR• LEVERAGING PARTNER TIE UPS FOR

FUTURE UPGRADATIONS OF THE PRODUCT & INTEROPERABILITY ISSUES.

• PROMOTIONAL SEMINARS HIGHLIGHTING PAIN AREA SOLUTIONS.

AHA! YOU SEE I TOLD

YOU ITS NOT OPEN SOURCE

SOFTWARE.

COST BENEFIT ANALYSISCOST

• PRODUCT COST• INTEGRATION COST• DATA MIGRATION COST• SYSTEM DOWNTIME COST• MANHOURS UTILIZED

COST• MISC. COST

BENEFIT2. Quality of Service3. Type of Service4. Service Pricing Sensitivity5. Geographical Coverage6. Reduction in Time lag for Service

Activation & Provisioning7. Service Maintenance 8. Fault Management9. Customer Relationship10. Accurate and Customized billing11. New Service launches

 

THE MAJOR CHALLENGE IN PROMOTING THE BENEFITS IS QUANTIFYING THE EXPECTED BENEFITS SO AS TO JUSTIFY THE SERVICE PROVIDER’S INVESTMENT IN ITS BALANCE SHEET. THE COST CAN BE QUANTIFIED BUT BENEFITS ARE BASED ON FUTURISTIC EXPECTATIONS.

SAMPLE CASE ANALYSIS

SERVICEPROVIDERBACKBONE

CLIENT

PREMISE

LAST MILE

INTLNETWORK

PROVIDING INTERNET BANDWIDTH

• COMMISIONING & INSTALLATION OF LAST MILE

• DEMAND NOTE GENERATION AS PER ACTUALS FROM BASIC SERVICE PROVIDER

• CPE REQUIREMENT ANALYSIS AND PROCUREMENT

• CONFIGURING ROUTER PORTS FOR BANDWIDTH ALLOCATED.

• IP ADDRESS ASSIGNMENT.

• DOCUMENTING IMPLEMENTATION NOTE

• INVOICE GENERATION AS PER PURCHASE ORDER

• PAYMENT RECIEPT.

• SERVICE ACTIVATION

• NETWORK MONITORING

•FAULT MANAGEMENT

A PROPOSED APPROACH

DEMO PHASED MODULAR INTEGRATION

DEMO DURING A TIME WHICH WOULD BE SUITABLE FOR HIGHLIGHTING PAIN

AREA RESOLVES

CLIENT PREMISE TESTING WITHOUT

DOWNTIME

INTEGRATION SINGLE MODULE INTEGRATION

END USER TRAININGDEMO FOR SECOND LEVEL

IMPLEMENTATION

NEED

PAINAREA

ANALYSIS

1

BENEFIT ANALYSIS

S A L E S&

M A R K E T I N G

N E T W O R KD E P L O Y M E N T

S E R V I C EP L A N N I N G

C U S T O M E RS E R V I C E S

S A M P L EO P E R A T I O N A L

H E A D S

• IDENTIFY TARGET

• DATA MINING

• CUSTOMIZING SERVICE DELIVARABLES AS PER PROSPECT CUSTOMET

• IDENTIFYING SERVICE RENEWAL FROM EXISTING CLIENTS AND SERVICE UPGRADATION PARAMETERS

• EXECUTION OF COMMISIONING TASKS THROUGH WORKFLOW ENGINE RULE SET.

•FASTER END TO END CIRCUIT DESIGN

•ASSET TRACKING

• UTILIZATION TRACKING OF BANDWIDTH

•PLANNING NEW VALUE ADDS TO EXISTING SERVICE

•CONFORMATION TO SLA

• REDUCED TIME LAG BETWEEN ORDER ENTRY & SERVICE ACTIVATION

• EFFICIENT TROUBLE TICKET MANAGEMENT

BALANCING THE COST FRONTIER• JUSTIFYING INITIAL COST

EXPENDITURES• MEASURING AGAINST IN

HOUSE OR ISV SOLUTIONS.• DETERMINING USAGE LEVEL

TO ASCERTAIN SOFTWARE LICENSES.

• QUANTIFY BENEFITS TO JUSTIFY IT ON THE BALANCE SHEET.

• ENTER RELATIONSHIP AS A PARTNER RATHER THAN JUST AN ENABLER.

SAMPLE CASE DEVELOPMENT

THE CASE IS BASED UPON A TYPICAL MOBILE SERVICE PROVIDER OPERATING IN A 2G/2.5G SCENARIO

BUILDING A BUSINESS CASEFINANCIAL PERSPECTIVE:

‘INCREASE SERVICE REVENUE IN THE CURRENT YEAR BY X% ’

REQUIRED OBJECTIVES:6. INCREASE SUBSCRIBER VOLUME7. INCREASE EXISTING SUBSCRIBER RETURNS

REVENUE STRATEGY:• INCREASE ARPU BY A% BY INCREASING MINUTES OF USAGE (MOU) BY M

%.• INCREASE GROSS MARGIN PER TRANSACTION BY B%• INCREASE EVA BY C%

CASE BASED ON PARAMETERS FOR MOBILE WIRELESS SERVICE PROVIDER

ANALYZING THE REVENUE STRATEGY

‘INCREASE ARPU BY A% BY INCREASING MINUTES OF USAGE (MOU) BY M%.’

• Service Portfolio : Voice Based & Low level data based services• Capital Expenditure on Network requirements has already been invested &

infrastructure is already in place.• The market is guided by plummeting prices as competitive strategies is based

on Low Price and is driven by LOW COST business model.

Thus to obtain the desired objective the service provider would have to provide Value Added Services like Wireless Content, Location Based Services etc.

Thus to implement the Revenue Strategy: “INCREASING THE MOU BY EXPANDING SERVICE PORTFOLIO BASED ON

WIRELESS CONTENT.”

ANALYZING THE REVENUE STRATEGY

SERVICE PROVIDER

ENDUSER

CONTENT DEVELOPERS

CONTENT PUBLISHERS

CONTENT AGGREGATORS

INCREASE GROSS MARGIN PER TRANSACTION BY B%

CHANGING VALUE CHAIN

• PRICING MODELS ACROSS THE VALUE CHAIN IS NOT CONSTANT

• CONTENT BASED SERVICE TRANSACTION HAS A QUANTIFIABLE MARGINAL COST TO THE SERVICE PROVIDER.

• THUS COMPETITIVE STRATEGIES CANNOT BE BASED JUST ON LOW PRICE BUT WOULD BE BASED ON DIFFERENTIATED VALUE ADDS.

•IT IS THIS DIFFERNTIATION COUPLED WITH THE EFFICIENT OPERATIONS (DESIGN ASSIGN & MAINTAIN) WHICH WOULD HELP IN INCREASING THE GROSS MARGIN PER CONTENT BASED SERVICE TRANSACTION.

ANALYZING THE REVENUE STRATEGY INCREASE EVA BY C%

COST OF CAPITAL for mobile network services would be compared with

• RETURN ON CAPITAL: Earnings generated by the Capital

• RETURN OF CAPITAL: Depreciation

Other factors that would be acting as indicators are:

6. Pricing of Equity

• Capital Asset Pricing Model

• Cost of Equity Capital (Calculating BETA Factor)

9. Pricing Debt

• Cost of Debt

THE OSS/BSS INITIATIVE

• Perception of Value to be backed by Reality.

• Utilizing the importance of lower Subscriber Acquisition cost and demonstrating initiatives to achieve it.

• Demonstrating importance of OSS solutions in increasing the Return on Capital.

Data Points for understanding Subscriber Acquisition Cost

No. of Subscribers for year X before OSS ImplementationNo. of Subscribers for year X+1 after OSS Implementation

Sales General & Administrative Expenses in Year XSales General & Administrative Expenses in Year X+1

Capex in Year XCapex in Year X+1

Sales General & Administrative Expenses per customer in Year XSales General & Administrative Expenses per customer in Year X+1

Capex per customer in Year XCapex per customer in Year X + 1

QUANTIFYING BENEFIT PARAMETERS• ESTIMATING AMOUNT OF CAPITAL EXPENDITURE REDUCED THROUGH

BETTER UTILIZATION OF EXISTING CAPACITY.• ESTIMATING INCREASED SERVICE ORDER RENEWALS PER YEAR

THROUGH EFFICIENT CUSTOMER SERVICES, PROACTIVE FAULT MANAGEMENT & CONFORMANCE TO SLA GUIDELINES.

• ESTIMATING GROWTH IN REVENUE FROM THE PREVIOUS YEAR DUE TO IMPROVEMENTS IN QUALITY OF SERVICE DELIVARABLES

• ESTIMATING AMOUNT RECURRING EXPENDITURE REDUCTION THROUGH EFFICIENT PROCESS STREAMLINING AND REDUCTION OF LABOR COSTS.

• ESTIMATING CUSTOMER ACQUISITION NUMBER DUE TO REDUCTION IN SERVICE DELIVERY INTERVALS.

• ESTIMATING COST REDUCTION DUE TO REDUCTION IN BOTH LABOR AND CAPITAL RELATED SUPPLIES.

• ESTIMATING COST SAVED DUE TO ACCURATE MANAGEMENT OF CONTENT PROVIDER ALLIANCES AND BILLING

THE ENITRE FOCUS OF THIS QUATIZATION WOULD BE TO ESTABLISH

A POSITIVE ECONOMIC VALUE ADDED (EVA) FOR THE SERVICE PROVIDER

CONCLUSION

KNOW THE TRENDS• SHIFT TOWARDS TIME TO ROI THEORY FROM TIME TO

MARKET THEORY.• TELECOM INDUSTRY MOVING IN ABSOLUTE OR

QUANTITATIVE TERM WHERE AS OSS/BSS VENDORS PROMOTIONS ARE BASED ON FUTURISTIC & QUALITATIVE SERVICE BENEFITS & COST SAVINGS.

• TODAY SERVICE PROVIDERS ARE RATING CONVERGENT BILLING MODULES FOLLOWED BY INVENTORY MANAGEMENT MODULES WITH MORE PRIORITY.

• UNDERSTANDING ALREADY IMPLEMENTED HARDWARE FUNCTIONALITIES & EQUIPMENT VENDOR TRUST THROUGH TIE UPS AS TODAY EQUIPMENT VENDORS ARE THE BIGGEST PARTNERS OF THE SERVICE PROVIDER.

KNOW THE TRENDS• COMPETITION IN THE OPERATIONAL AREAS IS ARISING

FROM LEADING ERP VENDORS LIKE SAP AND IN THE DATABASE AND BSS ARENA THROUGH VENDORS LIKE SEIBEL, ORACLE.

• SERVICE MANAGEMENT & ASSURANCE REQUIREMENTS WOULD PROBABLY BE THE NEXT INFLECTION POINT FOR OSS VENDORS.

• SUCCESSFUL PARTNERSHIPS WITH INTEGRATORS , CONSULTANTS WOULD QUALIFY SERVICE PROVIDER TRUST IN THE PRODUCT.

• ISSUES RELATING TO TOTAL COST OF OWNERSHIP IS OF PRIME CONCERN.

MARKET FACTS & FIGURES

FOR THE ASIA PAC REGION :

Total OSS Market: US $ 8.8 bn for 2002 predicted to rise towards US $ 11.8 bn in 2007

Total Vendor Revenue : US $ 1.98 bn in 2002 predicted to rise towards US $ 5 bn in 2007

System Integrator Revenue: US $ 4.2 bn in 2002 predicted to rise towards US $ 4.8 bn in 2007

Thus Growth for OSS Product Vendors is phenomenal compared to System Integrators and both would be commanding about 48% each from the total pie.

Billing Modules accounted for US $ 3.5 bn in year 2002

Customer Care solutions accounted for US $ 1.42 bn in the same year and Service Fulfillment accounted for US $ 1.05 bn

UNDERSTAND THE BUDGET

FIXED BASE AMOUNT

PRODUCT COSTINTEGRATION

COSTDATA MIGRATION

COSTMISC COST

•INTEGRATOR REL

•LEGACY SYS INTEGRATION API

•PRODUCT SUPPORTING MODULAR INTEGRATION FEATURES

VENDORS WORKING WITH INDEPENDENT CONSULTANTS SO AS TO PROMOTE A

SOLUTION AND NOT A PRODUCT

PROFESSIONAL & CONSULTANCY SERVICES

ACTING ON A PARTNER PLATFORM

CASE TO CASE RATHER THAN SINGLE STATEMENT POLICY• EVERY MARKET SEGMENT HAS ITS OWN PAIN AREAS. ISP, BASIC

SERVICE PROVIDERS, MOBILE SERVICE PROVIDERS, PROVIDERS OPERATING IN THE ACCESS MARKET OR THE CARRIER MARKET HAVE INDEPENDENT AND LARGELY VARYING NEEDS.

• INTEGRATION ISSUES ARE ALSO VASTLY DIFFERENT FOR EACH OF THE SEGMENTS. GREENFIELD OPERATORS WOULD WANT MUCH MORE TECHNOLOGY INDEPENDENT SOLUTIONS COMPARED TO INCUMBENTS.

• TYPE OF DATA FLOWING THROUGH THE SYSTEMS WOULD ALSO BE CONTRASTINGLY DIFFERENT FOR EACH CATEGORY OF SERVICE PROVIDERS THUS VARYING IN PRIORITY, CATEGORY AND SENSITIVITY.

Thank You

INDRANIL ROYCHOWDHURY

indranilroyc@yahoo.com