5/21/2006

Strategic Transformation Strategic Transformation of of ChinaTelecomChinaTelecom and Its BSS/OSS and Its BSS/OSS Requirements Requirements

•Kong LingpingChief EngineerNetwork Operations & Maintenance DepartmentChina TelecomLp.kong@chinatelecom.com.cn

5/21/2006

• Business transformation in China Telecom

• New challenges for BSS/OSS

• BSS/OSS upgrading roadmap

• Summaries

ContentContent

5/21/2006

Competition Evolution

access broadband

Competitive operator

LLU BIT sale

resale

Wi Fi

Broadband mobile

Triple-play

ISPs

WiMax

mobile

voice

Break-up Monopolization

Heterogeneity Substitution

Full Competition

strive for industry top-

end

VOIP Broadband voice

Other operators

Telecommunications LandscapeTelecommunications Landscape

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Progressive Strategic TransformationProgressive Strategic Transformation

Wireline Broadband

Network

Fixed Wireless Network

Mobile Network

Consumer Contents and Applications

（Games, VOD, family informatization）

Enterprise Applications and Solutions

（IP VPN、System Integration, IT Outsourcing）

Communication Services (Voice, Data, Media….)

Fixed Telephone

PC

TV Home Appliances

PDA

Mobile Handsets

Extension of value chain

Convergence of multi-networks, multi-terminals & multi-businesses

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Philosophy of TransformationPhilosophy of Transformation

•Organization and HR

Support foundation

Product

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Key Actions of Transformation(1)Key Actions of Transformation(1)

•• Product and Service TransformationProduct and Service Transformation ::– Fully leverage existing resources to consolidate

traditional fixed line business– Increase contribution of non-voice business,

Strengthen development of Internet access & VAS– Expand integrated information service, Enrich

video communication business– Explore “Triple-play” and “Fixed-Mobile

Convergence”

5/21/2006

Everyday life and infotainment Information Communication & TechnologyInformation Communication & Technology

Communication Assistant

Industry DirectorySearch

Enquiry &Forward Services

Information Release

Information Application

Communication Application

Services Support

Sector-specificApplication

Enhance customers’ “stickiness” to consolidate traditional businessGenerate new revenue sourcesPave the way for providing seamless information and communication services in future

Expanding Integrated Information ServicesExpanding Integrated Information Services

5/21/2006

• Network and technology transformation :– Intelligent upgrading of wireline network with a softswitch

solution that provides a single platform to deliver the IP-based multimedia services as well as all the necessary telephony services from the circuit-switched world

– Introduce ASON on backbone and MSTP/RPR in access level– Extend FTTB; apply ADSL2+ and VDSL2 on last-mile– Initiate aggressive NGN migration

Key Actions of Transformation(2)Key Actions of Transformation(2)

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Key Actions of Transformation(3)Key Actions of Transformation(3)

• Organization and HR transformation :– Reinforce corporate governance and internal controls– Reallocate manpower among front-line, back-end and

administrative area to 6:3:1 proportion– Recruit employees with mature new skills such as marketing,

mobile, ICT, internet etc. and also strengthen on job training for personal knowledge upgrading

– Seek a change from function-oriented to process-oriented organization

– Implement precision management among all business operations

5/21/2006

• Business transformation in China Telecom

• New challenges for BSS/OSS

• BSS/OSS upgrading roadmap

• Summaries

ContentContent

5/21/2006

New Challenges for BSSNew Challenges for BSSCustomer retention

Revenue enhancement

Operation efficiency

improvement

RequirementsFor BSS

RequirementsFor BSS

Unified customer contactUnified customer contact

Unified Billing processUnified Billing process

Revenue assuranceRevenue assurance

Complete customer consumption behavior analyze Complete customer consumption behavior analyze

5/21/2006

New Challenges for OSSNew Challenges for OSS

RequirementsFor OSS

RequirementsFor OSS

Integrated and fast fulfillment Integrated and fast fulfillment

SLA-based assuranceSLA-based assurance

Low cost and high quality of maintenanceLow cost and high quality of maintenance

Work-flow control and support for new technology Work-flow control and support for new technology

Customer retention

Revenue augmentation

Operation efficiency

improvement

5/21/2006

Market policy decision making support

Expand Inventory system to include new resource

Service combination and bundling

Explore mobile service

Analyze value of ICT service

Managed service support

Support common service , outsource

Formulate ICT service

FMC supportSupport internet connection service

Multi-resource integrate effectively

Converge with legacy network, provide bundling services

Reinforce broadband access and internet applications

FMC support

Utilize historical customer data to promote VAS applications and prediction

Optimize resource allocation, improve efficiency of resource usage

Support multi-service fulfillment and flexible charging process

Enrich VAS over fixed-line

•Provide integrated experience for customer

Unified subscriber information

Allocate resource based on customer’s need

•Provide diversified and customized services

Improve customer experience

3G service delivering support

Implement common data platform

Comprehensive/Integrate/accurate network inventory management

Accelerate BSS construction

BSS/OSS requirements

Business transformation

BSS/OSS Progressive Requirements BSS/OSS Progressive Requirements

5/21/2006

• Business transformation in China Telecom

• New challenges for BSS/OSS

• BSS/OSS upgrading roadmap

• Summaries

ContentContent

5/21/2006

Introduction of CTGIntroduction of CTG--MBOSSMBOSS

CTG-MBOSS is IT framework of China Telecom.

philosophy

Corporate Informationalisation Strategic Aims

Function and Technique Framework

MSS BSS OSS

EDA

Infrustructure

IT Control Framework

IT Organization

IT construction and maintenance

Management and

Operations Structure

Business Processes

Information Data

Applications

Information Sharing Effective Supporting Value Creating

CTG-MBOSS Specifications

MethodologyMethodology

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Roadmap of CTGRoadmap of CTG--MBOSSMBOSS

•Unified front-enddatabase

•Comprehensiveinventory database

•Single account,single bill

•Service convergence

•Fast response•Active service•Dynamicapplications of resource

IT value improve:•Total solution•Consultancy•Outsourcing

Service supporting

Service convergence

Chance detecting

2006 2007 2008 20102009

Information Sharing

Effective Supporting

Value Creating

MethodologyMethodology

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•Integrated network inventory management system

•Service fulfillment system

•Service assurance system •Automatic fulfillment system

•SQM system for key account customers

OSS

•Managed Services supporting system

• 3G OMC；• 3G NMC；•Supporting 3G servicesin current BSS/OSS

•Enterprise data

architecture (EDA)

•Billing system•CRM systemBSS

Deploy ICT service

3G service delivering support

Implement common data platform

Comprehensive/Integrate/accurate network inventory management

Accelerate BSS construction

Focus on customer experience

BSS/OSS supporting

demand

core project planned

BSS/OSS Core Projects PlannedBSS/OSS Core Projects Planned

5/21/2006

Case of CRMCase of CRM

•This is a typical case implemented in Zhe jiangprovince.

•It shows the way of evolution : it will need three phases to realize whole functions.

Marketing

Marketing campaignManagement

Market program management

Sale document management

Buniness opportunity managent Team management

Sale activity management

Sale campaign management

Customer interface management

Order accepted and tracked Front end changing

Customer SLA/management

Query and service requiring

Problem and fault accepted and tracked

Customer information management

Customer assessment management

Product lifecycle management

Product configuration and catalog management

Partnership relationship management

Partnership Service support

Partnership Settlement management

Workflow management Policy management Knowledge base authentication

System monitor Log management Configuration

management

Abnormity management Report framework

Sale

Partnership

Integrated customer service

Customer Management

Productmanagement

Common Support

Phase I Function Phase II Function Phase III FunctionLegend

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Case of EDACase of EDA

5/21/2006

Step 3：include applications of enterprise customer

Step 1：include CPE devices

Step 2：include intranet of enterprise customer

Case of SQM for Key Account CustomerCase of SQM for Key Account Customer

综合告警系统 客户内网网管客户内网网管

Step 1

Step 2

Step 3

•CPE

•Local network •Local network •Customer intranet•Customer intranet

•CPE

•Local network •Local network •Customer intranet•Customer intranet

•backbone

•Step 1

•Step 3

•Step 2

•backbone

•Step 1

•Step 3

•Step 2

•Management Systems on CT side

•SQM system for key account customer

•Management systems on customer side

•CPE

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5/21/2006

• Business transformation in China Telecom

• New challenges for BSS/OSS

• BSS/OSS upgrading roadmap

• Summaries

ContentContent

5/21/2006

• Business transformation is a long-term task for CT.• IT support systems are critical to the success of

business transformation.• Implementation of BSS/OSS is the assurance of

transformation.• CT is looking forward to sharing experience with other

operators and finding solutions from market products.

SummariesSummaries

5/21/2006