Strategic Transformation of ChinaTelecom and Its BSS/OSS Requirements. China Telecom

Strategic Transformation of ChinaTelecom and Its BSS/OSS Requirements Kong Lingping Chief Engineer Network Operations & Maintenance Department China Telecom Lp.kong@chinatelecom.com.cn

Content Business transformation in China Telecom New challenges for BSS/OSS BSS/OSS upgrading roadmap Summaries

Telecommunications Landscape Triple-play LLU VOIP Broadband voice ISPs BIT sale access voice broadband resale Competitive operator Competition Evolution mobile Break-up Monopolization Other operators Heterogeneity Substitution Wi Max Full Competition Wi Fi Broadban d mobile strive for industry topend

Progressive Strategic Transformation Consumer Contents and Applications (Games, VOD, family informatization) Enterprise Applications and Solutions (IP VPN System Integration, IT Outsourcing) Wireline Broadband Network Fixed Telephone Communication Services (Voice, Data, Media.) Fixed Wireless Network Mobile Network Mobile Handsets Extension of value chain PC TV Home Appliances PDA Convergence of multi-networks, multi-terminals & multi-businesses

Philosophy of Transformation Support foundation Organization and HR Product

Key Actions of Transformation(1) Product 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

Expanding Integrated Information Services Everyday life and infotainment Information Communication & Technology Information Release Communication Assistant Sector-specific Application Information Application Industry Directory Search Enquiry & Forward Services Communication Application Services Support Enhance customers stickiness to consolidate traditional business Generate new revenue sources Pave the way for providing seamless information and communication services in future

Key Actions of Transformation(2) Network and technology transformation : Intelligent upgrading of wireline network with a softswitch solution that provides a single platform to deliver the IPbased 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(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 among all business operations

New Challenges for BSS Customer retention Revenue enhancement Operation efficiency improvement Unified customer contact Requirements For BSS Unified Billing process Revenue assurance Complete customer consumption behavior analyze

New Challenges for OSS Customer retention Revenue augmentation Operation efficiency improvement Integrated and fast fulfillment Requirements For OSS SLA-based assurance Low cost and high quality of of maintenance Work-flow control and support for new technology

BSS/OSS Progressive Requirements BSS/OSS requirements Business transformation Accelerate BSS construction Comprehensive/In tegrate/accurate network inventory Implement common data platform 3G service delivering support Improve customer experience Provide diversified and customized services Allocate resource based on customer s need Unified subscriber information Provide integrated experience for customer Enrich VAS over fixed-line Support multiservice fulfillment and flexible charging process Optimize resource allocation, improve efficiency of resource usage Utilize historical customer data to promote VAS applications and prediction FMC support Reinforce broadband access and internet applications Converge with legacy network, provide bundling services Multi-resource integrate effectively Support internet connection service FMC support Formulate ICT service Support common service, outsource Managed service support Analyze value of ICT service Explore mobile service Service combination and bundling Expand Inventory system to include new resource Market policy decision making support

Introduction of CTG-MBOSS CTG-MBOSS is IT framework of China Telecom. Corporate Informationalisation Strategic Aims Information Sharing Effective Supporting Value Creating Function and Technique Framework MSS BSS OSS Methodology Methodology philosophy Manageme nt and Operations Structure IT Control Framework IT Organization Business Processes EDA Information Data Infrustructure Applications IT construction and maintenance CTG-MBOSS Specifications

Roadmap of CTG-MBOSS Chance detecting Service convergence Unified front-end database Comprehensive inventory database Single account, single bill Service convergence Fast response Active service Dynamic applications of resource IT value improve: Total solution Consultancy Outsourcing Methodology Methodology Service supporting Information Sharing Effective Supporting Value Creating 2006 2007 2008 2009 2010

BSS/OSS Core Projects Planned BSS/OSS supporting demand Focus on customer experience Accelerate BSS construction Comprehens ive/integrate/ accurate network inventory Implement common data platform 3G service delivering support Deploy ICT service core project planned BSS CRM system Billing system OSS SQM system for key account customers Service fulfillment system Service assurance system Automatic fulfillment system Integrated network inventory system Enterprise data architecture (EDA) 3G OMC; 3G NMC; Supporting 3G services in current BSS/OSS Managed Services supporting system

Case of CRM Marketing Integrated customer service Sale Marketing campaign Management Buniness opportunity managent Sale activity Partnership Partnership Service support Market program Sale document Team Sale campaign Partnership relationship Partnership Settlement Customer Management Product Customer interface Order accepted and tracked Customer SLA/ Front end changing Query and service requiring Problem and fault accepted and tracked Customer information Product lifecycle Customer assessment Product configuration and catalog This is a typical case implemented in Zhe jiang province. It shows the way of evolution : it will need three phases to realize whole functions. Common Support Workflow Policy Knowledge base authentication System monitor Log Configuration Abnormity Report framework Legend Phase I Function Phase II Function Phase III Function

Case of EDA

Case of SQM for Key Account Customer SQM system for key account customer terminal terminal customer applications. Management systems on customer 客户内网网管 side Management Systems on CT side 综合告警系统 Management systems on customer side 客户内网网管 Customer applications S t r e a m i n g M e d i a W e b W e b N e w s B a s e d N e w s E - E - m a i l - m a i l m a i l N e w s o V o I P I P Customer intranet CPE Local network backbone Local network CPE Customer intranet N e w s S t r e a m i n g M e d i a W e b B a s e d N e w s E - - m a i l m a i l N e w s V o I P Step 1 Step 1 Step 2 Step 2 Step 3 Step 3 Step 1:include CPE devices Step 2:include intranet of enterprise customer Step 3:include applications of enterprise customer

Summaries 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.