Context

The telecommunications industry is undergoing a period of profound change, affecting both operators and equipment companies.

Operators must continually invest to absorb the explosion in data traffic and the difficulties to straighten a falling ARPU level, while the “Gafa” (Google, Apple, Facebook, Amazon) are getting richer and continue to rise. They now dominate the global digital market and are the largest bandwidth users in the world. Telecom service tends to be entirely paperless, and future solutions composed exclusively of data.
To ensure their sustainability, in addition to offering value-added services to boost the ARPU, telcos will have to reinvent their business and increase their efforts to stay connected to their users.

Many industry actors are rethinking their strategic market positioning.
Similarly, the organization and innovation strategies of actors are shifting.

Network Strategy

NFV technology (Network Function Virtualization) and SDN (Software Defined Networks) will change the network architecture of telcos. Combined with cloud computing, they will facilitate and accelerate the deployment of new services while significantly reducing costs.

The NFV initiative aims to virtualize services and functions being implemented with a dedicated proprietary hardware network element. The latter is replaced by a virtual machine containing the application software layer required for a proper operation. This virtual machine is then housed in a standardized and commoditized physical server in a datacenter or in the cloud. NFV (Network Virtualization Functions) brings increased flexibility and responsiveness to operations. It also brings simplification items for architectures and therefore lower maintenance costs.

The SDN is the approach chosen for the management of networks in which the IP transport layer and the IP routing control layer are separated. The control layer interfaces with different hardware vendors using an open protocol named “OpenFlow” by the ONF ((Open Networking Foundation). The SDN is the necessary complement to NFV and allows the use of software solutions to control an IP network whether corporate or operator.

However this transformation can only take place gradually as current and future technologies coexist in hybrid mode. Many questions arise. There is a great number of suppliers and solutions, and it is very difficult to make informed decisions in this area.

Innovation Policy

It is commonly accepted that the use of cloud, NFV and SDN will help not only to reduce network costs and reduce time to commissioning, but also to accelerate innovation in future services.

Several key aspects of these new technologies will facilitate innovation.
The virtualization of complex networks elements and providing API is one of them. The development of new services will no longer require the upgrade of networks or the long and costly introduction of new materials. This new “network platform” could be used by in-house software developers or external partners to run their applications directly on the operator’s networks, benefiting from better performance.

But what should the innovation policy be? Should we, as we do now, let start-ups emerge then capitalize, and be bought or integrated before moving on the next ones? Would it not make more sense to connect several of them and leave them free to innovate in an open environment to enjoy mutual benefits in the longer term?

Through its positioning, T&BS is linked with French and European innovation ecosystems and can assist you in your strategic thinking.

Organizational and IS Impact

For a telcos, migrating to virtual networks is almost a change of business. From designer-operator of equipment and telecommunications infrastructures, it tends to become a “software company”.

Core business are not the same and managing human resources change is enormous and critical to the success of the transformation. The Technical Department which used to ensure the design, deployment and operation of the network ends up having almost the same functions as the Information Systems Department. The scope is different but the functions are identical and optimizations are required. The information system is also strongly affected, including OSS and BSS. For example, the whole chain of services activation needs to be reviewed.

At T&BS, we have this dual expertise. Do not hesitate to contact us.

Process Optimization

The changes brought by the introduction of new NFV and SDN technologies also have an impact on business processes. The network operating processes need to be re-engineered and adapted to jobs related to IT operations.

Involved for many years in the modeling and optimization of business processes, T&BS experts have developed their own methodology based on representations of animated visual scenarios. These scenarios are then published and shared within the company to involve as many employees as possible. Employees are encouraged to share their views, in a more playful and free way, on the hypotheses suggested. Their feedback is used as a basis for improvement and gives rise to a new cycle of improvement.
An additional benefit of this approach is to facilitate the participation of external actors of the company, i.e. customers or suppliers. It is also a way for the company to initiate a process of open innovation.

T&BS consultants are regularly involved in such exercices and are able to provide advice and support to your projects. Do not hesitate to contact us.

Context

Context

The telecommunications industry is undergoing a period of profound change, affecting both operators and equipment companies.

Operators must continually invest to absorb the explosion in data traffic and the difficulties to straighten a falling ARPU level, while the “Gafa” (Google, Apple, Facebook, Amazon) are getting richer and continue to rise. They now dominate the global digital market and are the largest bandwidth users in the world. Telecom service tends to be entirely paperless, and future solutions composed exclusively of data.
To ensure their sustainability, in addition to offering value-added services to boost the ARPU, telcos will have to reinvent their business and increase their efforts to stay connected to their users.

Many industry actors are rethinking their strategic market positioning.
Similarly, the organization and innovation strategies of actors are shifting.

Network Strategy

Network Strategy

NFV technology (Network Function Virtualization) and SDN (Software Defined Networks) will change the network architecture of telcos. Combined with cloud computing, they will facilitate and accelerate the deployment of new services while significantly reducing costs.

The NFV initiative aims to virtualize services and functions being implemented with a dedicated proprietary hardware network element. The latter is replaced by a virtual machine containing the application software layer required for a proper operation. This virtual machine is then housed in a standardized and commoditized physical server in a datacenter or in the cloud. NFV (Network Virtualization Functions) brings increased flexibility and responsiveness to operations. It also brings simplification items for architectures and therefore lower maintenance costs.

The SDN is the approach chosen for the management of networks in which the IP transport layer and the IP routing control layer are separated. The control layer interfaces with different hardware vendors using an open protocol named “OpenFlow” by the ONF ((Open Networking Foundation). The SDN is the necessary complement to NFV and allows the use of software solutions to control an IP network whether corporate or operator.

However this transformation can only take place gradually as current and future technologies coexist in hybrid mode. Many questions arise. There is a great number of suppliers and solutions, and it is very difficult to make informed decisions in this area.

Innovation Policy

Innovation Policy

It is commonly accepted that the use of cloud, NFV and SDN will help not only to reduce network costs and reduce time to commissioning, but also to accelerate innovation in future services.

Several key aspects of these new technologies will facilitate innovation.
The virtualization of complex networks elements and providing API is one of them. The development of new services will no longer require the upgrade of networks or the long and costly introduction of new materials. This new “network platform” could be used by in-house software developers or external partners to run their applications directly on the operator’s networks, benefiting from better performance.

But what should the innovation policy be? Should we, as we do now, let start-ups emerge then capitalize, and be bought or integrated before moving on the next ones? Would it not make more sense to connect several of them and leave them free to innovate in an open environment to enjoy mutual benefits in the longer term?

Through its positioning, T&BS is linked with French and European innovation ecosystems and can assist you in your strategic thinking.

Organizational and IS Impact

Organizational and IS Impact

For a telcos, migrating to virtual networks is almost a change of business. From designer-operator of equipment and telecommunications infrastructures, it tends to become a “software company”.

Core business are not the same and managing human resources change is enormous and critical to the success of the transformation. The Technical Department which used to ensure the design, deployment and operation of the network ends up having almost the same functions as the Information Systems Department. The scope is different but the functions are identical and optimizations are required. The information system is also strongly affected, including OSS and BSS. For example, the whole chain of services activation needs to be reviewed.

At T&BS, we have this dual expertise. Do not hesitate to contact us.

Process Optimization

Process Optimization

The changes brought by the introduction of new NFV and SDN technologies also have an impact on business processes. The network operating processes need to be re-engineered and adapted to jobs related to IT operations.

Involved for many years in the modeling and optimization of business processes, T&BS experts have developed their own methodology based on representations of animated visual scenarios. These scenarios are then published and shared within the company to involve as many employees as possible. Employees are encouraged to share their views, in a more playful and free way, on the hypotheses suggested. Their feedback is used as a basis for improvement and gives rise to a new cycle of improvement.
An additional benefit of this approach is to facilitate the participation of external actors of the company, i.e. customers or suppliers. It is also a way for the company to initiate a process of open innovation.

T&BS consultants are regularly involved in such exercices and are able to provide advice and support to your projects. Do not hesitate to contact us.