Outdated back-end systems no longer offer the flexibility to help operators create the dynamic digital services their customers want, nor do they lead to cost-efficiency from an operational perspective. Recognising this, many service providers across the globe are undertaking challenging back-end fulfillment transformation projects for their networks, with the aim of reducing operational expenses and providing customers with next-generation digital services.
For telcos, these network transformations are complex enough, but add on complimented mergers, acquisitions, regulations and organisational restructuring, and the project can seem downright implausible.
However, one Comptel customer was able to achieve the seemingly impossible and re-engineer its network for better flexibility.
New Business Model Requires Back-End Transformation
After the leading Luxembourg postal and telecommunication service provider, POST Luxembourg, divided its existing telecommunication operations into two separate companies due to regulatory obligations, the organisation’s new business model required a back-end transformation.
POST Telecom would market telecommunication services to residential and corporate customers and POST Technologies would provide wholesale services to POST Telecom and to Other Licensed Operators (OLOs). The company needed to split the IT operations and processes that supported both divisions, while still meeting a regulatory requirement that all orders shared the same processes, regardless of which customer placed the order.
Although POST Technologies would not need to directly interface with residential and corporate customers, the company recognized that it still needed to transform its fulfilment architecture so that wholesale customers could deliver modern and innovative services to their various end users.
Regulations put an added layer of pressure on POST Technologies, as the company was given a tight implementation schedule – the first phase needed to be up and running within nine months.
Equipped for The Future
Stemming from a negative experience with a previous waterfall-based transformation that was based on fixed, pre-defined project design and timelines, POST Technologies decided to follow agile work principles for this particularly daunting project.
“Agile methods were already used by POST for development projects,” said Luca Nadalini, Head of OSS-ISS-Fulfillment for POST Technologies. “But this was the first time we applied them to a large transformation project.”
Comptel, which already applies agile methods in product development, was able and willing to work with POST Technologies using lean delivery.
After a three-year long planning and evaluation phase, using TM Forum’s Frameworx as references for terminology and best practices, POST Technologies selected Comptel’s FlowOne Fulfillment suite as the company’s unified fulfillment solution for all services, enabling automated, accurate and controlled workflows. The suite also offered POST Technologies flexible service portfolio development, enabling the company to meet changing market needs and improve competitiveness.
Best of all, POST Technologies gained the flexibility to adapt its fulfillment processes to new requirements in the future, without having to engage in another expensive transformation project.
Working with Comptel, POST Technologies was able to meet its business objectives in a very challenging timeline. POST has now completed the first phase of its transformation project, which has already led to an increase in operational efficiency, higher revenue and margin, and improved customer experience.
The theme for last week’s IBM Business Connect event in Helsinki was “Seize the Moment.” Acknowledging the rapidly shifting business environment and ever-increasing consumer demands, event speakers encouraged attendees to get off the sidelines, rapidly build their skills and proactively seek out new ideas to transform their businesses for a new post-digital era.
A number of business leaders, technology experts and futurists presented inspiring talks on their vision for the future of digitalisation, but three keynotes stood out most prominently. The first involved a view of the futuristic technologies businesses will require to push themselves forward, the second stressed the importance of pushing boundaries, and the third encouraged businesses to accept what they don’t know and focus on improving the post-digital buying experience, mirroring what Comptel has said on the topic of Operation Nexterday. Here’s our recap.
A Peek at IBM’s Post-Digital Cognitive Era
IBM has positioned itself as a frontrunner in the “cognitive era,” characterized by a new capability that the tech giant believes companies will need as they move further, and even beyond, the digital era. In his keynote, IBM’s Juha Teljo, who leads European sales for IBM’s business intelligence and predictive analytics technologies, described why cognitive abilities will be the next significant technology for forward-thinking companies.
Cognition, Teljo explains, will allow businesses to understand, reason and learn much in the same way that humans do. Rather than rely on static data for business decision-making, IBM believes the next generation of business intelligence will offer predictive, machine-learned insights through cognitive technology.
This echoes Comptel’s thoughts around operators’ need for intelligent fast data, which drives real-time, automated and contextual marketing, in-the-moment analysis and instant revenue opportunities. Given the speed at which consumers make decisions and demand results, cognition and machine-learning capabilities will be crucial tools moving forward.
Toroidion’s Pasi Pennanen on Pushing Boundaries
It takes imagination to create big ideas, but to accomplish them takes “the next level of courage,” as Pasi Pennanen’s Toroidion project shows.
One might say that Pennanen has plenty of both, and in his keynote he shared his truly fascinating story of how he applied imagination and courage to make his dream of an electric vehicle reality. Pennanen is the creator of the Toroidion 1MW concept car, an eye-popping 100 percent electric sports car with 1,341 horsepower – making it one of the most powerful cars of any type in world.
Pennanen explained how he dreamed of becoming an industrial designer for cars since he was a child – a perhaps atypical ambition for a Finnish youth, but nonetheless one he pursues to this day with the dogged belief that anything is possible. He originally designed the Toroidion to compete in the famous Le Mans 24-hour road race, but now says he envisions his cars eventually being mass produced for everyday consumers.
To achieve that goal, he and his company will need to overcome a great number of challenges and obstacles, but Pennanen is driven to push boundaries in product development and design. It’s a model any business – but especially operators faced with a rapidly evolving telco landscape – should follow.
Futurist Dietmar Dahmen on Accepting the Unknown, Loving the Unknown and Embracing the Unknown
Right now, most operators acknowledge that they are surrounded by a significant number of opportunities coming from all sides. Whether they want to re-engineer their infrastructure for better flexibility and agility through network functions virtualisation, enhance their analytics capabilities through machine-learning technology or design imaginative service plans at warp speed that pique consumers’ interest, there are no shortage of options to revolutionise one’s business.
The challenge is, many operators don’t know which opportunities are right for them or how to proceed. There’s plenty of uncertainty surrounding these decisions, but in his keynote at the event, futurist Dietmar Dahmen expressed why it is important for businesses to accept and even embrace the unknown. As he explained, change is what makes us strong, and though it may feel comfortable to stay within the status quo, businesses must understand that to be a superhero in their industry, they must feel good about breaking rules, thinking exponentially and acting on their potential.
“Without Data Your Business Will Die”
In the digital and cloud era we’re online and connected pretty much 24/7. Dieter Dahmen’s statement ‘We are our phone’ is spot-on to describe our behaviour. Life is truly a chain of digital moments, but businesses are not able to respond to the opportunity that customers’ passive and active digital footprints allow. More than ever, it’s critical to leverage personalization and contextuality to deliver the right content to customers in the right moment. Unfortunately most organizations fall short, as “only 1 percent of companies can use data to invidualise across the channels,” according to Dahmen.
The consumer buying process is the most transformative experience industries need to deal with in the future. Pace is at the heart of it: our new generation of customers are impatient, want options and don’t like to wait. Dietmar Dahmen described it by saying “speed displaces cost as the main driver for purchasing decisions,” which makes moving at the speed of the internet a “life and death matter” for operators. But it’s very clear that at telco speeds, operators will struggle to satisfy clientele.
That’s a message Comptel shares: to break out of the collective industry blind spot and leverage new avenues of growth and revenue, operators must overcome their fear of the unknown and embrace out-of-the-box thinking. It’s the only way forward in Nexterday.
Register to join hundreds of progressive thinkers, industry experts and innovative operators at Comptel’s inaugural Nexterday North, 9-10 November. By purchasing a 2×2 Front Pass, you get full access to both Nexterday North and the startup conference Slush.
Google made headlines in the spring when it announced it was dipping its toes into the wireless waters with Project Fi, which will rely primarily on free Wi-Fi hotspots nationwide, supported by the Sprint and T-Mobile 4G cellular networks, to establish a continuous network. Project Fi is now back in the news due to reports of high initial demand. Google wrote in an email to hopeful subscribers that it will take until mid-summer for all of those who requested invites to receive full service access, adding that initial feedback has been “very positive.”
The service has earned hype for both its innovative use of technology – with Project Fi, your phone will automatically detect and switch to the best quality connection for your location, whether that’s 4G or Wi-Fi – as well its disruptive service terms. Project Fi is available without a contract, offers unlimited text and talk for $20 per month, plus $10 per GB of data, and includes a credit function that refunds subscribers the cost of any unused data at the end of the month. It’s interesting to note that much of the excitement of this announcement is around data and not voice services, which may underscore the idea that we’ve moved well past voice being the leading draw of cellular services.
There are a few reasons consumers are hopeful that Project Fi will turn the wireless industry on its head – the biggest one, of course, being Google’s reputation as an influential digital disruptor. Additionally, the announcement could not have been better timed, as many consumers are frustrated with the restrictive service offerings they receive from their current wireless operators and are eager for a more flexible and affordable alternative to knock the big players from their pedestals.
At the same time, evidence suggests that Google isn’t interested in a market takeover. The tech giant is known to experiment in the field of connectivity – see its Project Loon initiative and Titan acquisition, which rely on high-altitude balloons and lightweight solar-powered drones, respectfully, to expand LTE availability worldwide.
Additionally, in comments at this year’s Mobile World Congress, product head Sundar Pichai clarified that Google intends to help carriers push the boundaries of wireless, but not necessarily stand alone as a competitive operator at scale.
“Our goal is to drive a set of innovations we think should arrive, but do it a smaller scale, like Nexus devices, so people will see what we’re doing,” Pichai said.
So what can we realistically expect from Project Fi? The initiative represents a starting point in Google’s wireless experimentation. It would seem that the primary goal is to experiment with Wi-Fi-first networks. Could we soon see enough dispersion of Wi-Fi hotspots to make it possible for Google to run an entirely Wi-Fi powered phone service, free from reliance on cell network support and entirely independent to traditional mobile operators? The U.S. is certainly a great testing ground in that respect, as many other countries lack the Wi-Fi density needed to support Google’s experimentation.
Is it possible, too, that Project Fi might help Google prepare for the coming 5G revolution. Many in telecommunications believe that, in order to deliver dramatically more speed and capacity, 5G must be heterogeneous wireless networks built on unlicensed spectrums. Could Project Fi be Google’s attempt to learn what such a network might look like?
Though not completely unique – other operators offer Wi-Fi-first service supported by cellular networks – Google’s signal switching technology and data refunds differentiate the service enough to stand out. At the same time, the project’s early limitations – it’s exclusivity to the Nexus phone and the U.S. – suggests it won’t fully disrupt the mobile industry quite yet.
Instead, Project Fi offers a small platform for Google to experiment, adapt and learn from the technology and consumer behaviours. From there, the company will be able to evaluate whether early results are positive enough to proceed with some sort of larger-scale offering, or if it should leave mobile service to the mobile operators. Either way, Google’s innovative spirit and out-of-the-box approach offers a model for digital and communications services providers to adopt, and the initial excitement around Project Fi underscores Generation Cloud’s hunger for a real mobile revolution.
Download our book, Operation Nexterday, to learn the strategies and solutions that help mobile operators innovate their service offerings and intrigue Generation Cloud consumers.
By Stephen Lacey, Director of Business Architecture, Comptel
The European Telecommunications Standards Institute (ETSI) has been overseeing standardisation in the telecommunications industry for more than two decades, and in our work, Comptel has been closely following ETSI’s principles for nearly that long.
Our involvement with the organisation first started from our roots in data processing and mediation; so you could say that we’ve adhered to ETSI standards since the beginning of GSM.
Over the years, part of our business has increasingly aligned itself to fulfilment and orchestration of complex enterprise, residential and subscriber services (rather than solely provisioning and activation), and as ETSI itself became more involved in orchestration, we began to consider whether it made sense to join ETSI fully. We are pleased to share that in the latter half of 2014, we officially became a formal member organisation.
The Influence of NFV
The tipping point was in 2012, when ETSI launched a workgroup for Network Function Virtualisation (NFV). This Industry Specification Group (ISG) was developed at the behest of seven communications service providers (CSPs), who desired standardisation around this nascent technology. Interest in NFV has since increased significantly especially in 2014 and will continue to grow this year, as more operators consider how it can help them move away from expensive, proprietary network hardware toward more flexible solutions.
Additionally, the other elements of our product portfolio, including mediation and policy control, are considered as network functions and will be deployed within the NFV environment in the future.
Ultimately, we feel that Comptel’s proposition—having a complete, automated software stack that requires very little intervention—was unique to ETSI’s workgroup, and that we could help provide a more complete picture into NFV deployment, scale and capacity management challenges, as well as offer effective insights to support standardisation in this emerging area.
Workgroups in Focus
Today, we are one of more than 200 CSPs, network equipment providers (NEPs) and technology companies within the NFV ISG, working to conceptualise and contribute to the standards that will guide this technology’s application in the years ahead. Formal meetings are held quarterly – the next one is scheduled for February in Prague. Individual work streams have monthly meetings to hammer out these standards – the next one for the interface and architecture workgroup is being held mid-January in Shanghai.
The NFV ISG has only just completed the first phase of standardisation, where the high-level architecture and design of this technology infrastructure is being developed. We are now entering the second phase of standardisation, where member organisations are divided into work groups to focus on specific items, such as examining the management and orchestration of an NFV system via an Operations Support System (OSS) interface.
How Operators Win
One major benefit of ETSI’s workgroups is that they bring together organisations from all sides of the industry to guide a collaborative and forward-looking conversation about an emerging area of telecommunications. Since Comptel will be intimately involved in those conversations now and in the future, we will be able to bring a higher level of expertise to conversations with our customers. We are excited about being directly involved in NFV’s development as a new foundational platform for network infrastructure.
NFV will define our future. More operators want the flexibility to run network operations software on commodity hardware, so that they can keep pace with the cloud-based competitors now edging their way into the market. To truly position yourself as a fully formed CSP, you need a partner who knows where this software-defined market is headed.
Visit our SDN/NFV Resource Library to learn more about how cloud and virtualisation technology helps operators unlock cost savings, enable flexible networks, and compete on a higher playing field.
We recently shared a story about Williams in Uganda and his success working through Kiva.org. Building upon that, Comptel is eager to share another story about the difference Kiva is making on communities across the globe.
Thirty year old entrepreneur Rosario lives in eastern Peru, right along the banks of the Ucayali River, a major tributary of the Amazon River. She employs two other people at her small business in Pucallpa, which buys and sells mobile phones. Rosario loves her work, particularly because she enjoys helping customers find a mobile phone and any accessories that meet their specific requirements.
Having successfully managed her business for eight years, Rosario recently found herself needing some financial assistance in order to keep up with increasing demand. Realising what an honorable, hard worker she is, Kiva decided to loan Rosario 2,000 Peruvian Nuevos Soles (USD $775) to help keep her business afloat. Thankful for Kiva’s support, Rosario is confident that her business will continue to grow and is now optimistically looking to the future.
We invite you to take part in Comptel’s team and help us alleviate some of the financial burdens carried by such hard-working individuals who often do not have access to typical banking services.
Let me briefly introduce myself. I am Mauro Carobene. I have been appointed CMO in Comptel a few days ago. I have been in the BSS/OSS business since 1996, when I started my career in Italtel. Since then, for one reason or another, I haven’t been able to leave the OSS/BSS arena. I have been in R&D, technical support, consultancy, sales and sales management roles.
I was asked me why I am still in this niche of the telecom market and not looking to do something else. I have asked myself the same question many times. If I look back to 1996 and consider what was understood as OSS back then, we have taken huge steps forward. Back in the day, most of the actions were completed manually on a type of VT100 terminal using MML commands. Today the situation has improved a lot on the one hand, but on the other the system complexity is growing exponentially. It is true that we have pretty user interfaces and nice tools to control the network, but it is equally true that the complexity of services and the time to launch and activate these services are growing exponentially.
To launch a new tariff plan five years ago required at least six months of planning. While still working in a different company, I remember working – already in March – in preparation for the Christmas campaign for one of our big customers… and I also remember how we failed the delivery already in November and how that customer was not able to run the campaign as planned. Nowadays, the marketing department of each operator (or Communication Service Provider since the difference between the two is getting bigger and bigger) can execute plans within a few hours. “Operators XYZ launched a flat fee campaign yesterday, we need to do it immediately as well!” and the CIO/CTO needs to execute immediately.
If someone asked me if operators have reached the right level of automation in running their operations, my answer is no. If we consider all the progress made in all the other fields of technology, I think that OSS/BSS is lagging behind.
What is missing?
1: “Plug and play” integration capabilities. When I buy an USB, I can plug it in to my computer and it works. I don’t need to care about the brand or the technology. I simply buy it, plug it in and I’m ready to watch movies, get auxiliary light or use a cup that keeps my coffee hot while I’m writing an email. This is USB. Does the USB “Plug and play” concept exist in today ‘s OSS/BSS? The answer is a definite no. Operators are still spending a fortune to integrate different components and applications. There are naturally good reasons for the current state of business, but the fact remains that we are still behind.
2: Time to market for new services. Ideally, every service should be 100% modular and completely separate from technology. The capability to build customised services should be available for everybody directly from a Web UI. If I buy a car, I don’t have to waste time thinking about the asphalt or the type of road in general when I drive. The level of expectation should be the same for telecommunications. We shouldn’t need to care about 3G, LTE or whatever technology. OSS/BSS should enable operators to completely separate the service layer from network layer, enabling them to build an overall service where each single service component can be hand-picked from a catalogue.
3: “Real decision automation”. Every CSP collects a huge amount of data and is capable of using different tools to correlate and post-process this data. The real issue is this: “Can these tools make decisions and make these decisions happen – and not just analyse?” If I drive a car and I have an ABS system, when I hit the brakes and the wheels start to swerve, the ABS takes immediate action. It doesn’t generate a report that says “you hit your brakes too hard and now you have crashed the car!” Just image what the driver of the said car would do with such report…Transforming analysis into action will be the key success factor in enabling automatic decisions.
This is why I am still in this business. I dream of the day when the operator CEOs will able to decide which component to choose without thinking about the possible hidden costs of the integration, will be able to launch a new tariff plan or a new service simply by asking for the PowerPoint presentation from their marketing department and last but not least, will be able to automate all the phases of the process without ‘having to hit a wall’ and then simply receive a report that states the obvious. This is what we want to achieve in Comptel and this is the mandate that will keep me in the OSS/BSS business for a time to come.
In June’s poll we surveyed the trendiest buzzwords circulating within the telecoms sector. “Analytics/Big Data” edged out with 43% of the vote, followed by “Customer experience management” with 38%. Rounding out the top three was “Innovation” with nearly 10% of the vote.
This month, we take a closer look at the poll’s trendiest buzzword to better understand what Big Data/Analytics means to you. Tell us what excites you most about applying Big Data/Analytics to the telecoms sector. We welcome you to post in the “Comments” section below as always.
Today, we announced Comptel’s financials for the second quarter of 2012 and for the first half of the year as a whole. This is a personal milestone for me, as it marks my second year fully immersed as CEO — and as you’ll see from our mid-year highlights, I’m confident in the direction the company is moving.
This past quarter, our order backlog rose to a record high, as we won a significant EUR 5.4 million project to consolidate the mediation systems of a leading operator in Western Europe.
The upfront investments in the customer interface have yielded results in our largest regions, Europe and Asia, and we won seven new customers globally. Although our net sales have not yet met expected levels, they stayed on par with last year’s numbers, EUR 20.3 million (EUR 20.0 million). And we are optimistic our investments will grow our 2012 net sales approximately 10 per cent from the previous year. Integration of the advanced analytics expertise acquired in February 2012 has proceeded exceptionally well, resulting in winning our first deal for Comptel Social Links software.
We continued to bring new products to the market as key strategic initiatives. The major launch of Next Generation Comptel Fulfillment 8 software this quarter was received remarkably favourably by the OSS/BSS industry. We also unveiled our Contextual Intelligence for Telco (CIQ4T) concept this quarter, providing communications service providers a framework for bringing customer experience to the next level. This innovative approach truly differentiates Comptel in the market.
Our business mix of licence and services sales was impaired by the personnel, project delivery and marketing costs, causing lower operative results than expected. To remedy this, we initiated first productivity action by streamlining R&D in Norway and further cost saving initiatives will bring us approximately EUR 10 million on annual level. During the second half of 2012, we will realise EUR 3-4 million savings. These initiatives will secure our competitiveness, sustain the execution of our strategy, and deliver an estimated 0 – 5 per cent operating profit of net sales, excluding one-off items.
Beyond the figures, we also concentrated the first half of the year on executing our new strategy. We opened new offices in Istanbul and Cairo and announced several major customer wins around the world. These included, Telefónica Central America’s mediation consolidation that enabled the efficient management of more than half a billion daily transactions, Thai mobile operator Real Move’s deployment of Comptel’s Fulfilment solution to gain customers from the 3G market, Kcell Kazakhstan’s replacement of its provisioning and activation system with Comptel’s Fulfilment suite to support its 3G rollout, and Kuwaiti’s Watanya Telecom improvement of its customers’ first use experience with Comptel’s Dynamic SIM solution.
Overall, the first half of 2012 has been largely focused on executing our strategy, investing in bringing new products to market, winning new customers and developing our Services Business. As we move into this next quarter, we’ll continue onwards building on our stated strategy and remain confident the productivity programme will secure our competitiveness. And I’m honoured to convey, on behalf of Comptel, that we are looking forward to continuing to deliver on our promises to the market in the second half of 2012.
Today, we’re excited to announce the launch of our new office in Cairo, Egypt. This new venture reflects our continued commitment to get closer to our communications service provider (CSP) customers in the region.
While Comptel is already well-established in the Middle East and has played a significant role in developing its telecom industry, the Egypt office will also enable us to fulfil our larger vision of expanding our reach within the region, especially strengthening our presence within Egypt’s burgeoning telecom market. We also have plans to add to our network of partners, including local system integration companies, that specialise in the telecom industry within the Middle East.
In addition, we consider this expansion to be an opportunity for us to highlight just how Comptel’s Customer Engagement solutions enable CSPs to respond quickly to network events and transform them automatically into relevant and timely actions that improve subscriber satisfaction. We’re looking forward to further enabling regional CSPs to better engage with their customers, so they can benefit from increased loyalty and drive new revenue opportunities.
The new office will be located at Smart Village in Cairo and headed by Ahmed Hamza, head of cluster, Egypt & Saudi Arabia. Complementing Comptel’s Middle East & Africa headquarters in Dubai, United Arab Emirates, it will include both sales and service teams deployed to ensure rapid and effective customer and business service support.
For the telecom industry, spring is always such an interesting time due to the variety of events taking place. Most of us divide the season into the periods of ‘before and after Mobile World Congress’ and ‘by Management World’. Comptel’s no exception to this—we are participating in a number of events in the first half of 2012, as we continue to build our presence closer to customers, fulfilling the promise of growth to shareholders.
To obtain new customers and to make existing ones even happier, we continuously look for opportunities to operate in their local markets. So, this week, we are attending Eurasia Com in Istanbul, Turkey. Our CEO, Juhani Hintikka, along with other Comptelians, will be on hand at the conference and the networking event on the 20th of March, which we have sponsored in celebration of the opening of a new office in the country.
Personally, I regret that I cannot attend the event. Istanbul is a wonderful city with a mixture of Asian, European and Middle Eastern cultures. I lived in Istanbul when the famous WAP-era was about to start and there was talk about bringing Internet to everyone’s pockets. In those days, we had a hint of what was to come in mobile, but both technology and understanding of end-user needs needed a few rounds of evolution before the mobile Internet could truly take off. The business models between the network providers and service and applications providers have also developed drastically.
Another milestone I can recall from my experience in Turkey’s telecom landscape happened about five years ago, when the industry started to talk about customer experience. I had the privilege, with a former colleague, to benchmark where one of the Turkish service providers were in terms of customer experience, compared to one of the leading Western European service providers. Since then, the situation of Turkey’s telecommunications has changed quite a bit. In fact, according to the CIA World Fact Book, it is a “comprehensive telecommunications network undergoing rapid modernization and expansion especially in mobile-cellular services.”
Turkey indeed is an important market for Comptel, and we aim to continue building a strong presence there. I wish a great event to all of the Eurasia Com participants and hope you’ll attend the networking event introducing us and our “Making Data Beautiful” messaging to the country.