Case study presentation of Comarch's projects with KPN and Telefonica. How can the operational efficiency be improved and how can Telco strategies be improved and synchronized from the business side?

1. How network operators improve their efficiency
and prepare for market consolidation
Based on case studies of KPN-Group and Telefonica
Bernd Kreiling
Director Business Development

2. Agenda
Operational Efficiency
1. Driven by process optimization/harmonization
2. Market driven via merger/acquisition
Telenet

3. Agenda
Operational Efficiency
1. Driven by process optimization/harmonization

4. Next Generation OSS
- OSS strategy resulting from business strategy
• Simple flat-rate/discount tariffs
• Multi-brand strategy
• strong partner (B2B2C/MVNO)
Business
Strategy
• Basic services with good quality
• Smart follower strategy
• Network/IT cooperation models
• Multi vendor/technology environment
Network
Strategy
• Market driven OSS products (COTS)
• Simple/lean network processes
• Managed service IT models
OSS
Strategy

5. Past Situation:
 Legacy, over 15 years incremental developed landscape of planning-, documentation- and
configuration tools based on individual software
 Dissatisfaction due to high complexity in processes and tools
• only few people with knowledge about config processes and tools (buy in)
• network quality issues due to shortcomings in config management processes and tools, too
many workarounds in place (e.g. overwriting of optimized parameters)
• time to adapt tools to new network feature or SW-releases
takes too long, too many interfaces, tools and supplier
• Wide range of tasks done by E-Plus to provide planning tools
(from research to database administration)
• Readiness for a change at all level
Next Generation OSS
- Motivation

6. Next Generation OSS
- strategic guidelines
1. Standardisation -> use of COTS products
-> participate from market driven developments
-> reduce number of interfaces, tools and supplier
2. Simplification -> increase efficiency by lean and simple network processes
-> standardize processes to supporting different sourcing models
-> improve network quality by reliable processes and data
3. Flexibility -> managed service model for OSS functionalities
-> OSS independent from equipment vendors
The project at E-Plus and Base was initiated by C-Level Management as
transformation project with three strategic guidelines:

7. Next Generation OSS
- objectives
1. Standardisation -> use of COTS products
-> participate from market driven developments
-> reduce number of interfaces, tools and supplier
2. Simplification -> increase efficiency by lean and simple network processes
-> standardize processes to supporting different sourcing models
-> improve network quality by reliable processes and data
3. Flexibility -> managed service model for OSS functionalities
-> OSS independent from equipment vendors
The three guidelines are aiming for three objectives:

8. Next Generation OSS
- transformations
1. Standardisation -> use of COTS products
-> participate from market driven developments
-> reduce number of interfaces, tools and supplier
2. Simplification -> increase efficiency by lean and simple network processes
-> standardize processes to supporting different sourcing models
-> improve network quality by reliable processes and data
3. Flexibility -> managed service model for OSS functionalities
-> OSS independent from equipment vendors
The three objectives need three transformations:

9. Technical Transformation

10. Next Generation OSS
- technical transformation (E-Plus OSS)
OSS landscape before
transformation:
• No standard
products used in
service fulfilment
domain
• network outsourcing
model, some OSS
tools outsourced to
network operations
partner

11. Next Generation OSS
- technical transformation (E-Plus OSS)
Transformation
project:
• NGNP project
covered full service
fulfilment domain
(planning, rollout,
integration)
• Second project for
performance
management tools
transformation

12. Next Generation OSS
- solution architecture service fulfilment
• Inventory as central data hub
• OSS process Management
• Configuration management
• Auto-Discovery & Reconciliation
• Integrated network planning and
documentation modules
• Embedded GIS
• Embedded document management system
• OSS mediation to network
• Interface API to integrate expert tools
Comarch integrated
service fulfilment solution

13. Next Generation Network Planning
- technical transformation – best practice
The right transformation plan is key for success!
• Avoid big bang approach
-> transformation in manageable phases
e.g. phases split according to network processes/user groups
• Comarch takes e2e responsibility for technical transformation
-> transfer of legacy systems
(development, maintenance, transfer of assets/IPRs)
• Take care of data migration and data cleansing in the beginning
-> prepare for cleansing in legacy systems
• Stick to standard functionality of new solution
-> power to change processes / way of work

14. Business Process Transformation

15. Next Generation OSS
- business transformation
Legacy Processes
(e.g.: parameter configuration process)
Simplified & Optimized Processes

16. Next Generation OSS
- business transformation
• OSS Process management: Process transparency via BPM
Legacy status tracking tool Comarch OSS process management

17. Next Generation OSS
- business transformation – best practice
Ability to change is key for success!
• C-Level Management commitment for process changes!
• Comarch as driver for process improvements and automation!
• Integration of accepted key users
• Integration of workers council
• Communication, communication, communication….
-> on all levels, from management board to roadshows in regions

18. Delivery Model Transformation

19. Next Generation OSS
- managed service transformation
Comarch end to end responsibility:
• Product/Platform
- set up of platform, data center, connectivity
etc.
• System Integration
- seamless and correct interfaces incl. OMC
IF
• Transition
- transformation of IT and processes,
data migration etc.
• Business Process
- propose optimizations
• Extensions
- solution design, technology driven and
business driven
• Service Operation
- ensure KPI fulfillment, support processes

20. Next Generation OSS
- managed service transformation
OSS managed service
BSS
Network Partner A
Network Partner B
Network Operator
Vendor A Vendor B Vendor C
• All functionalities delivered as managed service, running
in Comarch data center
• User IF (E-Plus & partner) via Citrix environment (500
user ) or WEB access (2000 user)
• Data reconciliation and configuration via northbound
OMC IF
• EU data protection and compliance laws fulfilled
(ISO 27001, COBIT 4.1, ISAE 34.02)
• SLAs and KPIs defined and managed
• Support processes provided by Comarch (incl. support
tools)
- user management (full life cycle)
- incident management (direct hotline)
- service request (config. tasks e.g.
new antenna in catalogue)
- demand process (technology driven, business driven)

21. Next Generation OSS
- managed service transformation – best practice
Co-operation in multi partner environment is key for success!
• Define ITIL and business KPIs
-> measure business value
-> payment model based on business value
• Ensure co-operation with other partner
-> office/IT supplier, network sourcing partner, equipment vendor
• Change of operator OSS-organisation required
-> establish ITIL processes/organisation

22. Results and Business Benefits

23. Next Generation OSS
- project results and business benefits
1. Standardisation -> from 9 to 12 month for adaptation of legacy environment to
- 1 month for new network release
- 3 month for new ‘established’ technology
- 6 month for new technology on market
2. Simplification -> from 110 to 65 different types of business processes
- automated process steps
- consistent network data for operations and planning
- transparent and documented business processes
- optimised interface to network sourcing partner
- reorganisation of tasks in network departments
3. Flexibility -> significant reduction of OSS costs
- 5 years TCO reduction
- optimized financial engineering
- reorganisation of OSS department

24. Next Generation OSS
- project results and business benefits
1. Standardisation -> from 9 to 12 month for adaptation of legacy environment to
- 1 month for new network release
- 3 month for new ‘established’ technology
- 6 month for new technology on market
2. Simplification -> from 110 to 65 different types of business processes
- automated process steps
- consistent network data for operations and planning
- transparent and documented business processes
- optimised interface to network sourcing partner
- reorganisation of tasks in network departments
3. Flexibility -> significant reduction of OSS costs
- 5 years TCO reduction
- optimized financial engineering
- reorganisation of OSS department

25. Agenda
Operational Efficiency
1. Driven by process optimization/harmonization
2. Market driven via merger/acquisition
Telenet

26. Legal and project set up

27.  Comarch acting as “Trusted Third Party”
signing NDAs with both operators
 Solution contracted by Telefonica as
“buying operator” in due diligence phase
(9 month before authority approval and
legal closer of the merger)
 Comarch managing access rights to data
and guaranteeing that only approved data
is visible for the dedicated entity
 Solution has been audited by law
company consulting Telefonica in merger
process to ensure that legal restrictions
(access rights etc.) are fulfilled
 Comarch co-operating with Network & IT
partners of Telefonica and E-Plus to
implement technical solution
Comarch tactical network planning solution
- legal setup
Telefonica Network
& IT Partner
E-Plus Network &
IT Partner
Telefonica
(“Buyer”)
Comarch
“trusted 3rd party”
NDA with
permission to
access
inventory
data
E-Plus
Optional: Law
Company
auditing solution
Due diligence
Restricted
communication

28. Project Objective:
Set up common network planning environment for
tactical network planning:
 Managed service environment: set up HW and
connectivity to Comarch data center
 Define common network data model (basekeys,
naming concept, logical model)
 Merging data from legacy OSS environment
into common inventory database
 Provide common network planning functionality
for all domains (radio, transport, core)
 Configure solution: in project agreed
workflows/planning processes, engineering
rules, target network configuration templates
etc.
 Synchronisation of planning data back to legacy
tools, managing all dependencies between
networks consolidation activities
Comarch tactical network planning solution
- project objective
Comarch
tactical network
planning
solution
Frequent load of
Network data
Engineers from Operator and
Network Partners connected
from distributed locations
Common data model
Common planning applications
Common engineering rules

29. Project set up:
 Joint project team working at „neutral“
location close to customer
 in total 6 people from both operators in
core team (with personalized NDAs) plus
4 analysts from Comarch mostly onsite
 Development/Configuration done in agile
development mode based on verifications
sessions of prototypes
 Close co-operation with engineering team
defining future network engineering
guidelines
Comarch tactical network planning solution
- project team & approach

30. Technical solution for tactical network planning

31.  Common inventory DB with consolidated data in
common data model for network planning and
network consolidation activities (central data hub),
frequent synchronization with legacy OSS
 Comarch managing data access based on legal
restrictions
 Environment delivered in managed service model
(running in Comarch data center)
 Comarch rule engine to pair and weight network
elements as pre-decision for “golden grid”
 Comarch network planning modules (radio,
transmission, GIS) for validation of “golden grid”
and detailed common network planning
 Comarch OSS process management (BPM) to
manage network planning and consolidation
activities between organisations
 Optional: Comarch configuration management
(CM) to integrate consolidation activities into
common network (end to end service fulfilment)
Comarch tactical network planning solution
- solution design

32. Example for Network Consolidation Process

33. 3 phases to network consolidation
Comarch tactical network planning solution
- network consolidation example process
Design of Target
Network
“golden grid”
Detailed network
planning
“activity plan”
Implementation of
consolidation activities
“realize the savings”
• Define target KPIs (e.g.
# of remaining sites)
• Kill site nomination
• Accuracy 80%
• Identify quick wins for
BC: sited to be
dismantled immediately
(termination of real
estate contracts)
• Capacity planning
(based on templates)
• Generate activity plan
• Accuracy 90%
• Evaluate dependencies
and define priorities for
optimized KPIs and BC
• Manage execution of
activities
• Manage changes of
target network design
• Verify KPIs and BC

34. Comarch tactical network planning solution
- pairing & rating engine
Golden Star
indicates Winner
from rating
Phase 1: Define target network
design:
• Pairing and rating network
elements/sites
Results from rating visualized in GIS view

35. Phase 1: Define target network
design:
 Pairing and rating network
elements/sites
 Define working areas for
verification
 Radio planning verification
Comarch tactical network planning solution
- network consolidation example process
Difference in radio propagation between networks

36. Phase 1: Define target
network design:
 Pairing and rating
network elements/sites
 Define working areas for
verification
 Radio planning
verification
 Transport planning
verification
Comarch tactical network planning solution
- network consolidation example process
Verify transport network (hubs, capacity etc.)
-> if kill decision not feasible: VETO

37. Phase 2: Detailed planning of
consolidation activities
 Definition of activation areas
Comarch tactical network planning solution
- network consolidation example process
Activation Area =
geographical area
where consolidation
activities and network
changes are managed
as one package (e.g.
activation of national
roaming)

38. Results and Business Benefits

39. Comarch tactical network planning solution
- project schedule: The key benefit!
Public
announcement
of merger
Approval of
authorities
Legal closer
of merger
1 month9 month
3 month
Starting planning
of target network
(“golden grid)
-> 50 concurrent
users
Target Network defined!
Starting implementation
(e.g. termination of site
contracts) and detailed
planning of network
consolidation activities
(vendor-swaps,
dismantelings etc.)
-> 250 concurrent users
Solution
accepted and
ready to use, first
user trainings
Comarch
Analyses &
scope
definition
Contract
and project
kick off
6 month
Environment
ready, first
prototype for
validation
Solution
verification
sessions
Legal milestones
Comarch solution implementation
Telefonica network engineering

40. Thank You.