HW NGBSS

Smart Operation, Efficient Support   --- Huawei NGBSS Solution

HUAWEI TECHNOLOGIES CO., LTD.

ABOUT NGBSS

"Smart Operation, Efficient Support" Next Generation Business -- Support System

Huawei NGBSS is an end-to-end solution that adopts the ESB/EAI bus as the integration frame and integrates products and components such as the OCS, CBS, CRM, BI, IPCC, PRM, Provisioning, Mediation, AAA, and EVC. In the era of Telco 2.0, Huawei NGBSS can meet the requirements of carriers on saving costs, improving efficiency, and increasing revenues, thus helping carriers in smart operation and providing effective support to achieve continuous business successes.

1. The BSS solution ranks No. 1 in emerging markets (namely Asia Pacific, Middle East, and Africa). The convergent billing solution gains two thirds of the market share in the new markets. (Source: Gartner 2009)

2. Huawei NGBSS solution was certified by TMF SID in 2009, awarded the highest-level certificate and acknowledged in a maximum of SID domains. Moreover, Huawei is the first vender that is being certified in eTOM from all over the world. 3. Huawei provides BSS solution and services to 28 of top 50 carriers worldwide. By the end of December 2009, Huawei NGBSS has been serving 300 million subscribers of 32 carriers, the convergent billing solution has been serving 320 million subscribers of 64 carriers, the prepaid charging system has been serving more than 500 million subscribers of 166 carriers, and the IPCC has been applied by 40 carries with up to 150 thousand agents.

Next Generation Business Support System Efficient Complying with the NGOSS process and adopting SOA open architecture, the BSS solution is more efficient and helps carriers face challenges in business, with regard to customer, process, and value chain support. 1. Efficiency improvement — convergent billing, which double the billing efficiency by adopting Huawei patent memory database and intelligent scheduling technique of peak load shifting

2.

Real-time control — real-time billing, which improves user experience; real-time marketing and sales, which improves customer loyalty and ARPU; real-time monitor, which decreases the arrears risk to 0.5% or lower

3.

Revenue increase — supporting personalized product packing and flexible sales policies, supporting bilateral and multilateral commercial models, and helping carriers discover new revenue sources

4. Cost saving — ICT convergent and integrated access, which decreases the number of business halls and agents, thus cutting the operation fee for customer service by more than 80%; multimedia convergent technique, which generates electronic bills, receipts, and text, thus cutting the cost of paper materials by 85% Smart The idea of business intelligence is applied in various business processes and stages. Being customer-centric, the BSS is smarter in implementing the following key capabilities through the unified customer view, customer access, product management, and customer care: 1. Precision marketing — selecting suitable customers for products and helping customers select suitable products

2. 3.

Dynamic tuning — adjusting tariffs and allocating resources dynamically

User friendly — shielding complex implementation details so that the system is friendlier to end users, partners, and system users

4.

Lean management — end-to-end workflow, knowledge base sharing, and service quality, which ensure the achievement of operation KPIs

A Fantastic Discovery Telfort Gains a Competitive Advantage in the Netherlands with an Innovative Customer Care and Billing Solution

Marco Visser, former CEO of Telfort B.V. “The cooperation with Huawei offers us an efficient and future-proof IT environment with which Telfort will continue to be successful even under changing market conditions.”

Starting operations in the Dutch telecom industry in 1997, Telfort B.V, a subsidiary of KPN B.V, is a trusted brand in the Netherlands, with more than 14% market share and a reputation as a no-frills, low-cost mobile service provider. For its first ten years it maintained the loyalty of its subscribers by being a “fast-follower.” As consumers came to demand converged multi-play services, the company found a way to provide them. This strategy allowed Telfort to retain market share, but it also prevented the company from doing much long-term planning for the future efficiency of its IT architecture. As with any mobile operator, Telfort’s organization and IT system stack had grown organically over the years. The systems contained services run by 32 different vendors with over 200 proprietary interfaces. As a result of the nature of this IT landscape, less and less of its IT personnel fully understood it. System upgrade required great efforts to plan, implement, and test. The total cost of operation (TCO) was high, and the average time to market (TTM) for basic services or tariff plans had grown to several months. Complex changes could take more than one year.

Like the great Dutch navigators from the past, Telfort responded to these challenges by going in search of a solution that could reverse its fortunes. With its partner, Huawei Technologies, Telfort would make a great discovery: a “future-proof” Next Generation Business Support System (NGBSS) proposition that would integrate its complicated IT landscape, increase its business process efficiency, enable it to keep up with market-driven innovation, and give the company its competitive edge back. This would be a defining moment and it would create a new era for the company: Telfort 2.0.

The Need for a Convergent NGBSS Solution Telfort’s legacy architecture lacked convergence for its billing and customer relationship management (CRM) processes, which prevented sales and marketing from gaining a single, 360-degree view of customers. Moreover, because its services were handled by a wide array of vendors and lacked self-service options, the quality of the customer’s experience and overall customer satisfaction were in decline. Each point along the service channel—subscription, customer service, technical support, and online billing—looked and felt different. This also reduced Telfort’s ability to enhance the value of its brand. The company offered the same types of service plans as its competitors, including the choice of prepaid or postpaid subscription; personal and corporate plans; and fixed, mobile, and internet services. However, Telfort found it difficult to rapidly define products, provide a single product catalog, and offer real-time billing, bundled services, and convergent billing. This situation frustrated efforts to increase revenue and profitability.

Telfort’s ‘cobweb’ legacy systems resulted in long TTM and low operational efficiency. The company was seeking a partner who was able to provide next generation business support system (NGBSS) as well as managed service in the long term.

Establishing a Long Partnership with Huawei To reinvent itself as Telfort 2.0, the company would have to find one vendor that could integrate its billing, CRM, contact center and business intelligence (BI) under a single, open service-oriented architecture (SOA). From eight candidates, they picked Huawei, making Telfort the first European telecom

Huawei NGBSS, Smart Operation & Efficient Support

operator to utilize the Chinese company’s Customer Care and Billing Solution (CCBS) and correlative service. Telfort’s choice of Huawei was not only innovative, but also well founded. While Huawei was a newcomer to Europe, it had rich experience in BSS fields throughout more than 30 countries. Huawei NGBSS solutions had proven not only to be extremely scalable (100K to 400M subscribers), but also delivered cost-effective, high performance flexibility through modular architecture, a single customer view through its centralized database, and a single product catalog. Finally, looking at Huawei’s experience of operational efficiency and cost reduction with long-term managed services provision in the past, Telfort also decided to sign the company for a five-year service agreement. Nonetheless, the project was still highly ambitious. Huawei would have to replace most of Telfort’s post-paid, prepaid and internet system stack with a CCBS solution and sanitize or keep existing external interfaces while Telfort’s ongoing business operations were unaffected. The two companies joked internally that challenge was similar to replacing all the engines of a Boeing 747 while serving passengers drinks during a full-service flight.

A Customer-Centric Solution with High Customer Satisfaction and Low Cost To keep its market share, Telfort had to keep customers satisfied, and their primary strategy was to provide them with economical, user-friendly service plus an extraordinary customer experience. “We have the ambition to make phone calls and the use of internet clear and understandable,” said Marco Visser, former CEO of Telfort. “From this perspective, Telfort offers their customers the certainty of the correct choice and the best offer for an advantageous price.” With this ambition in mind, Huawei successfully designed Telfort’s system to offer the greatest convenience and affordability possible. Customers could now receive enhanced convergence options for prepaid and postpaid accounts; unified billing and invoicing; mobile and internet services; real-time bill enquiry, credit control, and charging. Customers could also access any service through self-service channel such as call center / IVR, E-care portal and E-shop portal within 24 hours. This automated, paperless and web-based operation reduced operational cost and improved

customer experience. With unified customer view and data model in the CRM system, consumer analysis and cross-selling were now possible. A single Telfort employee could conveniently promote any product, handle any problem and introduce any service with a 360-degree view of customers in the system. This way consistency across the organization was guaranteed, and customer satisfaction rose. It enabled Telfort to optimize marketing and sales efficiency and reduce cost, thereby adding to profitability.

Telfort 2.0: a Future-Proof Solution to Brighten the Future Telfort’s new CCBS is based on service oriented architecture (SOA), which is the basis for future evolution and transformation. In addition, TM Forum eTOM framework was referred to identify redundant and missing steps in the legacy business processes and SID framework was used as the basis for designing standardized interfaces associated with reusable components. Once completed, the total number of system interfaces was reduced from hundreds to dozens, and the number of

TTM shortened as ‘3-3-3’: from 3 weeks to 3 days; from 3 months to 3 weeks; from 3 years to 3 months.

system vendors reduced from dozens to fewer than ten. By optimizing business processes, simplifying service creation and deployment, and allowing customers to handle a much wider range of self-services, Telfort’s new CCBS has reduced the company’s TCO significantly. In addition, the simplified, open architecture has dramatically reduced TTM. Telfort describes the new change as “3-3-3”, meaning that small changes that once took three weeks now take three days, those that took three months now take three weeks, and those that once took three years now take just three months.

Highlights Customer Objective • Quick service launch • Reduce cost • Customer centricity

Huawei Solution • Converged BSS solution • Automated self-care • Managed service

Customer Benefits • Faster time-to-market • Simplified operation • Better customer experience

With the reduction in TCO and TTM, plus the enhanced services the company can offer its customers, Telfort 2.0 has given the company its competitive advantage back. The next step will be going live with prepaid system in summer 2010, and then Telfort 2.0 internet services. Moreover, Telfort and Huawei have worked closely together in optimizing the CCBS Campaign Management solution to deliver top of the line Customer Lifecycle Management (CLM), which will enhance customer care and management further still. “The telecom market is changing significantly,” said Mr. Visser. “The cooperation with Huawei offers us an efficient and future-proof IT environment with which Telfort will continue to be successful even under changing market conditions.” - END -

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