IP Communication enhancing Service Innovation & Multichannel Business: Poste Italiane Case

IP Communication enhancing Service Innovation & Multichannel Business: Poste Italiane Case Vincenzo Musella Networks Development Chief Information Office- Poste Italiane

Poste Italiane Group 2006 Figures Total Employees (Average) 151,470 Areas 9 Subsidiaries 140 Post Offices 13,893 Financial Results M Euro Total Revenues 17,055.6 Of which: Postal Services 5,339 Financial Services 4,382 Insurance Services 5,993 Other Services 216 Other Revenues 1,123 Net Income 675.7 2 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane Group Italy Strategies and Objectives (1) The new market strategies that Poste Italiane Group has been pursuing for the last 2-3 years, aim to re-launch the Group and redefine its position on the market. This strategic plan addresses several key objectives, including: increase services integration (including voice and data convergence) exploit the various interfaces with customers (post offices, call centers, Internet and sales networks) introduce new services for retail customers, corporations and public administration bodies develop systems for handling payments. 4 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane Group Italy Strategies and Objectives (2) In this scenario, a high performance ICT infrastructure is essential to support reorganization and restructuring processes, aiming to: improve productivity and collaboration enhance the way they do business reduce costs (TCO). Hence, new projects and new investments in ICT. 5 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane Enhance the way they do business : Examples Handling Payment Posteman can use his PDA interconnected to the Applications to deal directly with the end customer at his premises Offer new service Receive payments Customer Loyalty Mobile Virtual Network Operator IPTV Debit telephone traffic to the Poste Italiane Bank accounts Debit postal services to the the telephone bill Sell mobile phones and accessories into the Postal Offices Plasma screen installed in each Postal Office to demostrate and advertise new services Virtual Guardian (Remote VideoSurveillance) 6 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane Voice Network Starting Scenario Page 7 PSTN 500 sites with OmniPCX 4400, size ranging from 50-300 extensions 1800 sites with Alcatel 4200, size ranging from 12-30 extensions 500 sites 50-300 extensions OmniPCX 4400 4200 1800 sites 12-30 extensions Alcatel 4200 11,000 sites 2-3 direct lines to PSTN 11,000 Sites with no system, direct connection to PSTN, 2-3 lines All sites are independent: no Voice VPN (private numbering plan) no private networking no centralized management no VoIP 7 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane Main Requirements Develop a common covergent infrastructure for Data, Voice, Video open for future developments Integration with existing legacy (e.g. messaging) Managed and Hosted turn key services (MCS) Provide all employees with same services and empower the interfaces with customers (post offices, CC, internet and sales networks) Deploy a complete VoIP business services portfolio : private numbering plan, IPPBX services Deploy a set of value-added ICT services to enance employees productivity: Unified voice/data messaging Presence, Instant Messaging, Collaboration Videoconference 8 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Technical solution details Hosted and managed services based on Alcatel-Lucent equipment and Telecom Italia and Fastweb as Service provider VoIP traffic Internal calls transported on-net Removed direct connection to PSTN Outgoing/Incoming calls to PSTN go through the IP network Sites equipped with PBXs has been upgraded to IP-PBX and connected to the IP-VPN Remote sites equipped with IP Media GW, connected to the IP-VPN and handled by the ALU Communicator Server hosted at SP/Poste Italiane National Service Control Centers Smallest sites equipped with SIP phones, connected to the IP-VPN and handled by the ALU Virtual PBX Local and Geographical redundancy Overall Voice VPN federating IP-PBXs users and V-PBX users Provisioning of centralized Managed Employees Interaction Applications and their integration with existing ones Single management/maintenance 9 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane Awarding Lot 1 won by IP VPN Network IP-PBX, Omni Vista, IP Touch, SIP terminals Application layer: CMM (VPN-IP Centrex) Media Server (Announchement) My Teamwork (Collaboration) VMS (Voice Mail) Fax Server Legacy Application Integration: Lot 2 won by IP VPN Network IP-PBX (Communicator Server + IP MediaGW), Omni Vista, IP Touch Application layer: My Teamwork Legacy Application Integration: Video Polycom, Directory,.. Border Elements Microsoft LCS, Video Polycom, Directory,.. Softswitch, Border Elements 10 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane VoIP Network Final Scenario (Lot1) PSTN Traffic to and from PSTN 313 sites 50-300 extensions IP-PBX IP-VPN Telecom Italia NGN 1800 sites 12-30 extensions VPBX 11,000 sites 2-3 IP Phones VPBX internal on-net traffic 51 sites with Communication Server (OXE-CS) 262 sites with Media Gateways Communication Servers Redudancy and Passive Communication Server introduction to provide full Survivability 12.800 sites equipped with SIP phones, connected to the IP-VPN and handled by the V-PBX (IP-Centrex) Voice VPN federating IP-PBXs users and V-PBX users Internal calls to be transported on-net (IP-VPN, Voice VPN) No more direct connection to PSTN (emergency only). 11 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Poste Italiane VoIP Network Architecture Overview MMIC Video MCU MS Configurator IAM Identity Access Management Active Directory AS Audio/Data MCU Web CC VPN CMM VPBX VMS FAX Server BE Softswitch IP PBX PCS BE BE PUBLIC NW IP Media GW 12 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Conclusion Alcatel-Lucent Solution Separate data and voice networks, all sites are independent: no private numbering plan no private networking no centralized management no VoIP 500 sites with Alcatel-Lucent OmniPCX 4400, size ranging from 50-300 extensions 1800 sites with Alcatel-Lucent 4200, size ranging from 12-30 extensions 11 000 sites with no system, direct connection to PSTN, 2-3 lines Stand-alone legacy applications Combine premises-based solutions with network-based solutions All sites interconnected through a convergent IP network: IP-PBX networking and centralized management Voice VPN federating IP-PBX and V- PBX users Alcatel-Lucent Corporate Mobility Manager for VPN and V-PBX Alcatel-Lucent OmniPCX Interworking with existing Service Provider s Softswitch Collaboration services integrated with Poste Italiane legacy Applications: MS Exchange, MS LCS, Polycom MCU Alcatel-Lucent MyTeamWork Alcatel Lucent Multimedia Server Alcatel Lucent Voice Mail Server Alcatel-Lucent Professional Services 13 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520

Conclusion Poste Italiane IP Network Transformation - Main results Direct Telecommunication costs reduced thanks to: Integrated Voice/Data Network ON-NET Calls for free Reduction of PRI connections Fixed > Mobile traffic optimization (next step) Operational costs reduced thanks to: Reduction of Total Cost of Ownership Operations managed by the Service Providers, keeping ICT Governance inside Poste Italiane Only two NOCs to manage the entire network and guarantee continuity of service Fixed Assets reduction thanks to OPEX model Improve Efficiency Direct access to All application through unique and simple interface Mass implementation of Collaborative tools (Voice, Data and Video) Enlarge employee profile and scope of work (Postman example) Virtualization of the Customer Care agents Improve Business Value Short time to market to implement and deliver New Services to Poste Italiane s Customers, thanks to a Best Class infrastructure full integrated with Applications layer Possibility to use the IP infrastructure to sell new telecommunication services (MVNO) 14 IT Banking - November 2007 All Rights Reserved Alcatel-Lucent 2007, 21520