1

Paradigm Shift of Telecommunications Services and Management

for NGN (Next Generation Networks)

May 17th,2007

Masayoshi Ejiri Fujitsu Ltd.

CQR 2007 WS

Agenda : Market Driven Paradigm1, Monopoly, Regulated Market ( 1890’s -1980’s)2, Competitive, Deregulated Market ( 1984~ ) 3, IP/eBusiness Market( 1995~ ) 4, Converged Market (2005~ )

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1, Monopoly, Regulated Market ( 1890’s -1980’s)

Services• POTS on PSTN • by mega carriers (ROC: Recognized Operating Company)• to Reactive customers

SP’s Targets• Establish nation wide ubiquitous telephone network by automa

ted SW network• On Demand subscription.

Operations and OSS• Individual NE supervise and Control, then Centralized Operatio

ns• Random ,Individual and Proprietary OSS Development• Human and paper based CC&B(Customer Care and Billing)

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MiddlewareMiddlewareMiddlewareMiddleware

Operating SystemOperating SystemOperating SystemOperating System

Service ManagementService ManagementService ManagementService Management

Network ManagementNetwork ManagementNetwork ManagementNetwork Management

NE/NWNE/NWNE/NWNE/NWHardwareHardware

Customer-Oriented Business

Bu

sin

ess

Bu

sin

ess

Tre

nd

Tre

nd

CustomersCustomersCustomersCustomersIT/Computer IT/Computer BusinessBusiness

ApplicationApplicationApplicationApplication Customer CareCustomer CareCustomer CareCustomer Care

Telecom BusinessTelecom Business

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2, Competitive, Deregulated Market ( 1984~)

Services:

• Telephone on PSTN and Mobile• by competition among conventional carriers and new comers• To reactive customers but Price Down Pressure ( Price Competitio

n )SP’s Target :• CAPEX/OPEX cost down for price down• Up Graded CC&B for customer retention• Competitive but Interoperable Operations among SPsOperations and OSS• Operations Concept : Mission and Positioning• Customer Oriented Top Down approach• Vertical process integration ( FAB)• Systematic and Standardized OSS development on TMN

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Target of Operations and OSS

NE/Network Supervision &ControlNE/Network Supervision &Control

Centralized NW / Service OperationsCentralized NW / Service Operations

Create Competitive ServicesCreate Competitive Services• High Price performance Service High Price performance Service by by Dynamic Service/Price for 100% Resource Usage (24/7/365)• Excellence of Customer CareExcellence of Customer Care by by Process Integration/ Automation and Self Operations

Cost Conscious Profit Conscious

・・ Not Built But BuyNot Built But Buy ・・ Commercial off the Shelf SoftwareCommercial off the Shelf Software ・・ Proof of InteroperabilityProof of Interoperability forfor Globally Acceptable Software Packages and OSSGlobally Acceptable Software Packages and OSS

Faster, Cheaper and Better OSS

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Mediation Device(MD)

Workstation(WS)

Operation System(OS)

Data Communication Network(DCN)

TMN

Q3

Qx

FX

Q3

Data Communication Network(DCN)

QxQx

Q-Adaptor(QA)

NetworkElement

(NE)

Q3

Network Level IntegrationAcross Managed Area

Network Level IntegrationAcross Managed Area

Element Level Integrationwithin Managed Area

TMN : Telecommunications Management Network

NetworkElement

(NE)

Q-Adaptor(QA)

CCITT/ITU-T Rec. 3010Principle of TMN”1988Modified by Prof. Matsushita

Service Level Integration withCustomers/Service Providers

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OSS Development Scenario

Ops to supervise andcontrol NEs

Ops to supervise andcontrol NEs

Centralized OpS fornetwork management

Centralized OpS fornetwork management

Customer orientedtotal OpS

Customer orientedtotal OpS

DCNDCN

DCNDCN

DCNDCN

NE OpS

Network OpS

Z company Customers

SP

NetworkOpS

NEOpS

A company

DCNDCN

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Operator ResourceResource

CustomerCustomer

OSS

Service Plane

Operations Service Communications

Service

Managing Plane

NetworkPlanner

ServicePlanner

Business Management Service

Operations

Concept of Telecommunications Management

EnterpriseManager

Operator Service

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TOM : Telecom Operations Map TOM : Telecom Operations Map A Service Management Business Process ModelA Service Management Business Process Model

(TMF : TeleManagement Forum 1995)(TMF : TeleManagement Forum 1995)http://www.tmforum.orghttp://www.tmforum.org

Customer Care Process

SalesOrder

HandlingProblemHandling

CustomerQoS

Management

Invoicing/Collections

Service Development and Operations Processes

ServicePlanning/

Development

ServiceConfiguration

ServiceProblem

Resolution

ServiceQuality

Management

Rating andDiscounting

Network and Systems Management Processes

NetworkPlanning/

Development

NetworkProvisioning

NetworkInventory

Management

NetworkMaintenance& Restoration

Network DataManagement

Customer Interface Management Process

Customer

Physical Network and Information Technology

InformationSystemsManagementProcesses

Element Management Technology Related

ServiceManagement

NetworkManagement

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Cross-industry view of end-to-end processes

Customer

Networking equipment

Fulfillment

AssuranceBilling

OtherService

Providersor

NetworkOperators

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3, IP/eBusiness Market ( 1995~ )Services :• Voice and Data on PSTN, Mobile and Internet• by cross industry cooperation and competition• to customers with free hand of service selectionSP’s Target :• Realize lower price services by billing package• Develop rich services by collaboration with other industries ( ex with

Application/Contents providers)• QoS enabled service operations • Industry wide Operations in ICT worldOperations and OSS :• share common business process ,architecture, information model ,int

erface etc. among IT and ICT SDOs eTOM/SID, ITIL, ITU-T Recommendation , TISPAN/3GPP • Visible Operations on established Service Architecture and SLA• Deploy/develop products based on standards or buy OSS on COTS/

PnP software.

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Teleocm Service Delivery Chain

End UsersEnd UsersEnd UsersEnd Users

VendorsVendorsVendorsVendors

LANLANLANCorporate SPs

VANVANVANVAN ＳＰ s

長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱLong Line SPs 国際ｷｬﾘｱ国際ｷｬﾘｱ国際ｷｬﾘｱInternational ＳＰ s

ｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱAccess Carriers

Local ＳＰ s

Virtual Service Virtual Service ProviderProvider

ISPsISPsWANWANWANTelecom Agents

ASPsASPs CSPsCSPs

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Lessons Learnt from Tour Industry Value Chain TouristTouristTouristTourist

VendorsVendorsVendorsVendors

LANLANLAN

VANVANVANTaxi

長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱRailways 国際ｷｬﾘｱ国際ｷｬﾘｱ国際ｷｬﾘｱHotel

ｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱRestaurant

WANWANWANSouvenir Shop

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ｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱTour Bus

ｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱAirplane

長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱAttraction

LANLANLANGuide Book

長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱTravel Agent 長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱ

VirtualTourProvider

Tour Guide

Tourist Bureau

MuseumPark

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IP/e Business Value ChainEnd UsersEnd UsersEnd UsersEnd Users

VendorsVendorsVendorsVendors

LANLANLANCorporate SPs

VANVANVANVAN ＳＰ s

長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱLong Line SPs 国際ｷｬﾘｱ国際ｷｬﾘｱ国際ｷｬﾘｱInternational ＳＰ s

ｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱAccess SPs

WANWANWANAgents

ASPsASPs CSPsCSPs

ｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱLocal Carriers

ｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱｱｸｾｽ•ｷｬﾘｱDark Fiber SPs

長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱISPs

LANLANLANPortal

長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱCDC(Contents Delivery Center) 長距離ｷｬﾘｱ長距離ｷｬﾘｱ長距離ｷｬﾘｱCMC

(Contents management Center)

VirtualIP ServiceProvider

Virtuale-ServiceProvider

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Operations

Fulfillment Assurance BillingOperationsSupport &Readiness

Customer Relationship Management

Service Management & Operations

Resource Management & Operations

Supplier/Partner Relationship Management

(Application, Computing and Network)

Enterprise Management

Strategic &EnterprisePlanning

Financial & AssetManagement

Enterprise QualityManagement, Process & ITPlanning & Architecture

Stakeholder & ExternalRelations Management

Brand Management,Market Research &Advertising

Human ResourcesManagement

Disaster Recovery,Security & FraudManagement

Research &Development,TechnologyAcquisition

Strategy, Infrastructure & Product

ProductLifecycleManagement

InfrastructureLifecycleManagement

Strategy &Commit

Marketing & Offer Management

Service Development & Management

Resource Development & Management

Supply Chain Development & Management

(Application, Computing and Network)

Customer

eTOM( enhanced Telecom Operations Map)eTOM( enhanced Telecom Operations Map)

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TMN to e-Business Management Solution

TMN

BM

NM

EM

NM

SM

EMEM

eMS

NM

BM

SM

RM

Negotiation

Policy

Visibility

•Network•Services•Human•Finance …...

TelecommunicationsManagementNetwork

e-BusinessManagementSolution

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Lessons Learnt from Logistic Industry

• Basic Service : ex. Collection of goods from location A and deliver to location B

- Transport services • Associated services : Convenience Store acts as a

mediator for collection. Deliveries be arranged in agreed time and traceable.

- Operations Services • Value added Services : Perishable goods ( fish, fruit) be

transported using a cold storage , delicate good be transported using hanging

- Contents Aware Delivery Services

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Resource Management

Logistics

End Users

Contents

eBusiness

Media Gateway Agent/Portal

Content Aware Management

eBusiness

Management.

Resources

Services Management

Contents ID Mgt.

Contents Integration Billing

•Visible Management Information•SLA Negotiated by Policy

eBusiness Services and Management Architecture

Content Delivery

IP Bearer

BankingAuction

Transactions

Content Services

Application Services

Advertising

SLA

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SLA and OLA in eBusiness Management

Customer( eBusiness)

Partners

TransportResource

•Content Delivery Services SLA•Transport Services SLA

•Operations ServicesSLA

Resource ProvisioningOLA

Operations SupportOLA

SLANegotiation

OLA Negotiation

Operations Resource

Content Delivery Resource

Transport Services OLAService Provider

Communications Resource Suppliers

Operations Resource Supporters

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SLA Features

• Services 1, Transport Services

2, Contents Delivery Services

3, Operations Services

• Features 1, Fundamental (Performance , Accuracy & Access)

2, RAS(Reliability , Availability & Survivability)

3, Security

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Classification of SLA Features

Performance & Accuracy

AccessCapability

RAS

Security

Feature Type Transport Services SLA Operations Services SLA

• Bandwidth, • Packet Loss, • Error Rate,• Delay - Throughput

•Accuracy and timeliness ofService delivery, Report generation,Etc….• Mean/Max time between call pickup• Compensation when SLA violated

• Mean Time Between Outage• Disaster/Fault Recovery mechanism

• Access Control Mechanism• Prevention of Network Attacks,• Eavesdropping, etc…

•Contact Method – Email, Phone, Fax,Etc…..•Contact Availability – opening times• Access Control Machanizm

• Hot line• Organisational structure to supportDisaster/Fault Recovery

• Privacy Protection mechanisms

•Connectivity•Call Loss Ratio•Call Setup Time

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Security Objects• Contents• Applications• Communications• Operations

Security Domains•Physical/Logical Facilities•Management Layers/processes•Service Providers•Users

Security Mechanisms• Security Technologies• Security Modules• Security Systems• Security Infrastructure

Three Dimensional Security Management Framework

Environment(Community-Culture

including regulatory issues )

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4, Converged Market (2005~ )Services :• Triple/Quadruple services consuming Interactive BB.• By Convergence Communications, Broadcast and Contents Create/

Delivery players and customer participation• To Proactive customers

SP’s Target :• Establish NGN ( Next Generation Network) and Managed Ubiquitous

BB and Location Services• Attractive Services by Collaborating with inter/intra industries and c

ustomers.• Ensure Revenue Assurance Scheme• Operations and Management :• Customer self/ responsible Operations and Management. • Customer represented Operations• Management Web 2.0 , SOA,NGN and Customer participation

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New Paradigm

1, Customer Participation and Broadband Demand BGM( Back Ground Music ) to CGM( Customer Generated Message)• Customer proactively generate( create /mash up/ track back )messages• Provider assist/coordinate message generation and distribution

2, PaaS: Product as a Service Visible, Intuitive and Operable Products by end users• Web2.0 : SaaS( Software as a Service) Software Service Product• NGN : AaaS( Access as a Service) Access Service Contract• SOA : Function, Application Service Component

3, Location services/management4, Revenue assurance against free charge mind Who should pay for Communications Mechanism Broadband, Traffic, Storag

e, Wire and wireless Access etc.) and Contents on Internet

NGN is expected to give solution for new paradigm

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New Paradigm ( １ )Customer Participation

BGMCGM

BGM ( Back Ground Music)• Contents provider generate and /or distribute messages • Customers reactively enjoy them.CGM* ( Customer Generated Message)• Customer proactively generate( create /mash

up )messages• Provider assist/coordinate message generation and

distribution• Customer proactively receive messages and track

back ,if prefer. * Consumer Generated Media

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New Paradigm (2) Broadband & Ubiquitous

• Customer is Contents Creator and Consumer

• Service Provider( including Contents Provider and Broadcaster) is Contents Mediator and Owner of archive

Ex.YouTube, Google Map, My space, SNS etc.

Huge volume of contents are easily generated and distributed/circulated by interactive and push /pull ways requiring same capacity ( bandwidth) up/down link.

Note: telephone users have been contents( speech) creators and need same capacity for up/down link.

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New Paradigm (3)PaaS:Products as a Service

Products( Services) should be visible, Intuitive and easily operable( Controllable) by end users

• Web2.0 : SaaS( Software as a Service) Software Service Product• NGN : AaaS( Access as a Service) Access Mechanism Service Contract• SOA ( Service Oriented Architecture) Function, Application Service Component

NGN should support “ Open, Collaborative and End user Participated” communications

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New Paradigm (4) Location Management Services

Location Sensor/Identifier• GPS • Base station

• Wireless LAN ex, “Place Engine”( Sony Computer Science) using MAC address

and RSSI Peta Map generated by consumers collaboration( CGM)

• RFID• Terminal ex, “ Osaifu Keitai”( NTT DoCoMo) refers to mobile phones equip

ped with contactless IC card, as well as its useful function/services enabled by the IC card. With this function, mobile phones can be utilized as electronic money, credit card, electronic ticket,

membership card, airline ticket, and more. 25 million subscriber in Japan

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Location Services and Management

Security vs Privacy--Human activities are informed/checked/ logged by location –• GPS Mobile phone location service to identify /notice his/her location and automat

ic notice of entry/exit of predefined areas. • Secure Pass by informing child ‘s parent mobile phone the event where a child pa

sses ticket gate by commune pass, • Human/Car move tracking services using GPS based location/speed/direction /tim

e/status information every few seconds. Check doubtful action and compliance , • Lost mobile phone security by checking the location matching of owner and termi

nal

Location Value Chain• Provide Local Utility information ( Shopping ,Restaurant ..) • NGN CSF(Convergence Services Framework), CC-FE( Convergence Coordination

Functional Entity) Coordinate location information with services.• Seek( Recruit) available persons in the best location on demand, real time deal.• “ Location Call” : Area limited special services with no charge

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New Paradigm (5)Revenue Assurance Scheme

Toward Free of Charge Mind • Who will pay for Communications Mechanism ( Broad ba

nd, Traffic, Storage, Wire and wireless Access, etc.) 　　• Who will pay for Contents on Internet ( Customer enjoy as consumer and also as contents pr

ovider -- create, mash up, copy,etc.and share contents on internet --)

• Customer will pay for Logical/Physical Access facilities to ensure their service contract ( mostly by Fix sum)

• Advertisement can not cover NGN and ICT investment.

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Advertisement in Japan

• In 2006 ( estimated) Total Expenditure 60 B$ Internet Ad. 4B$ ( 7%)

Note : Communications /Broadcasting Industry’s Market size ( Revenue) : 170B$

Communications :135B$ Broadcast : 35B$

Note : Based on MIC news Release 1$=110Yen

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NGN Functional Architecture

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ServiceEnabler

Interface

NGN2.0 Architecture

TransportPhotonic, SDH,Access, LAN,

Wireless...

Interface

ClientsWSs

ClientsWSsClientsWSs

ClientsWSsApplicationApplication

SWsSWsSWsSWsService

Node

Service Node

ServersServersServersServers

StorageStorage

OSSElements

OSSElementsOSSElements

OSSElementsOSSOSSSet Top

Boxes

Set TopBoxesSet TopBoxes

Set TopBoxes

INnodes

INnodesINnodes

INnodesContentsContentsClients

WSs

ClientsWSsClientsWSs

ClientsWSsContent

Delivery

ContentDelivery

OtherNetwork Terminals/

Set Top Box

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Conclusion

1.1. Top Down Approach ,Bottom Up Building Top Down Approach ,Bottom Up Building

Customer Customer Profit Model Profit Model Business Process Business Process

Service and OperationsService and Operations NetworkNetwork

2.2. Operations for Human/Business SupportOperations for Human/Business Support

on Service/Business Architecture beyond TMNon Service/Business Architecture beyond TMN

3. Customer Self Operation with Negotiated SLA3. Customer Self Operation with Negotiated SLA

for Customer Participated Services/Operationsfor Customer Participated Services/Operations

4. NGN Management for Converged Services4. NGN Management for Converged Services

5. New Revenue Assurance Scheme 5. New Revenue Assurance Scheme

for Vendor, Provider and Customer prosperityfor Vendor, Provider and Customer prosperity