Time To Ditch The Switch For Prepaid Service Providers, The Economics of IP Migration Are Increasing - PowerPoint PPT Presentation

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Time To Ditch The Switch For Prepaid Service Providers, The Economics of IP Migration Are Increasing

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Understand Where You're Going Get 'IP Savvy' ... 1: Become IP Savvy ... PSP defend against charges of non-compliance with published rates, while ... – PowerPoint PPT presentation

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Title: Time To Ditch The Switch For Prepaid Service Providers, The Economics of IP Migration Are Increasing


1
Time To Ditch The Switch? For Prepaid Service
Providers, The Economics of IP MigrationAre
Increasingly Compelling
  • June 25, 2008

2
Erik K. LinaskGroup Managing EditorTechnology
Marketing Corporation
3
Agenda
  • Market Forces Driving IP Migration
  • Brian Partridge, Director of Enabling
    Technologies, The Yankee Group
  • Alternative Deployment Strategies Potential
    Advantages and Drawbacks
  • Ken Osowski, VP of Product Management and
    Marketing, Pactolus Communications Software
  • IP Platform Choices Criteria and Considerations
    for Successful Migration Future-Proof Prepaid
    Services
  • Tom Regan, Manager of Sales Engineering, Pactolus

4
Brian PartridgeDirector, Enabling Technologies
Yankee Groupbpartridge_at_yankeegroup.com
5
IP vs. TDM Issues Impacting Migration Decisions
  • Capex
  • Opex
  • Netex
  • Customization/Future-Proofing
  • New business opportunities
  • Time to change, or else??

6
Capex IP vs. TDM
  • TDM
  • Prices dropping to attempt parity with IP, but
  • Adjunct gateways keep Capex high
  • Inherent cost complexity of converting IP
    traffic to TDM
  • Adding capacity and expanding services is costly
    lumpy
  • Chassis, cards, shelf space, database, T1s,
    power, mgt.
  • IP
  • Simpler, more economical initial build out
  • Self-configurable apps., server-based,
    disaggregate applications from switch, less
    overhead rack space, power, etc.
  • Growth-friendly scale-ups expansions with
    little/no addl. capex
  • Easy to add post-paid, wholesaling, other growing
    services
  • New quad servers yield future-ready capacity
  • No additional power, rack space, data bases, etc.
  • IP is mature

7
Opex IP vs. TDM
  • TDM
  • Lengthy build out service configurations slow
    time to market, months vs. weeks/days with IP
  • Complex, disruptive scale-ups, service expansions
    and partitioning
  • Either large additional line purchase or complex
    T1 capacity redistribution
  • Voice path hairpins through net, potential single
    point of problem and quality issues
  • IP
  • Increased velocity of set up initializations
    via. software GUI
  • Cloud computing simpler infrastructure
    drawing capacity as needed
  • Scale-up service partitioning are simple
  • Done intelligently at software level through GUI,
    access lines and resources usually
    auto-configured
  • COTS hardware

8
Netex IP vs. TDM
  • VoIP Minutes Declining Minutes Costs
  • Lower infrastructure costs
  • Reach global VoIP route footprint is quickly
    growing
  • Quality newer, better fiber yielding
    comparable/superior call quality, esp. in
    emerging high growth regions.
  • Direct SIP Peering cheaper better minutes,
    accelerating the sun-setting of TDM wholesale
    minutes

9
Customization IP vs. TDM
  • TDM
  • Platforms rigid, monolithic - difficult to adapt
    customize services
  • IP
  • Inherently flexible
  • Platform, application and hardware (COTS) all
    separate
  • Development environments simplify service
    feature customization, partitioning, innovation
    and business growth
  • Open source/open access resources plentiful,
    highly usable
  • Enables ongoing adaptation and expansion
  • Migration ROI likely enormous and rapid

10
Summary Shifting Platform Economics
TDMModel
  • Rigid, vendor-implemented
  • Far less future-ready differentiation
    capabilities
  • Complex build outs, scale-ups, partitioning, etc
  • Wholesaler migration to IP driving better SIP
    peering minutes costs, service quality
  • Switches, gateways, SBCs, DB, etc.

Total
Customization
Netex
Opex
Capex
11
Summary Shifting Platform Economics
TDMModel
IP Model
vs.
Total
Result SPs can sustain better margins on same
service investment - or.
Customization
DIY or lower cost
Customization
Netex
Netex
Opex
Opex
Capex
Capex
12
Summary Shifting Platform Economics
TDMModel
IP Model
vs.
Total
Accelerate Growth By Investing In New Services
Customization
Customization
Netex
Netex
Opex
Opex
Capex
Capex
13
Ken OsowskiVP of Product Management
MarketingPactolus Communications
Softwarekeno_at_pactolus.com
14
IP Migration Enables Individual PSP Business
Models
  • Virtually infinite flexibility for subscriber
    service differentiations, such as
  • Enabling premium value in single services
  • Competitive ability to add subscriber features ad
    hoc
  • Simplifies compliance and adaptation to
    regulatory mandates
  • Multiple paths to economical, easily
    implementable migration.

15
Possible TDM Prepaid Platform SolutionIP Upgrade
Scenario 1


Softswitch,Media Gateway
Session BorderController
16
Possible TDM Prepaid Platform SolutionIP Upgrade
Scenario 2
Session Border Controller


17
SIP Trunking Reduces NETEX, Adds Flexibility
Local broadband access network
RapidFLEX SBC Server
Private IP Network
RapidFLEX Service Delivery Platform
VoIP devices
SIPware Calling Card Broadband Telephony
SIP / RTP
Session Border Controller
Local PSTN access to services
Cisco Voice Gateway
18
SIP Trunking for PSTN Call Originations
Service Provider
SIP Carrier
Session Border Controller
RapidFLEX Service Delivery Platform
Softswitch Media Gateway
SIP Proxy
NSP
PSTN 800 Access Numbers
19
SIP Trunking Optimizes PSTN Call Terminations
SIP Carriers
Service Provider
Softswitch Media Gateway
SIP Proxy
Route selection made by Service Provider
NSP1
Session Border Controller
NSP2
PSTN Phones
RapidFLEX Service Delivery Platform
NSP3
20
Example Carrier Multi-Service Network Overview
Local broadband access network
RapidFLEX SBC Server
Private IP Network
RapidFLEX Service Delivery Platform
VoIP devices
SIPware Calling Card Broadband Telephony
SIP / RTP
Session Border Controller
Local PSTN access to services
Cisco Voice Gateway
Call Scenario In-bound TDM call to VoBB
subscriber
21
Example Carrier Multi-Service Network Overview
Local broadband access network
RapidFLEX SBC Server
Private IP Network
RapidFLEX Service Delivery Platform
VoIP devices
SIPware Calling Card Broadband Telephony
SIP / RTP
Session Border Controller
Local PSTN access to services
Cisco Voice Gateway
Call Scenario VoBB subscriber call to U.S. PSTN
number
22
Example Carrier Multi-Service Network Overview
Local broadband access network
RapidFLEX SBC Server
Private IP Network
RapidFLEX Service Delivery Platform
VoIP devices
SIPware Calling Card Broadband Telephony
SIP / RTP
Session Border Controller
Local PSTN access to services
Cisco Voice Gateway
Call Scenario Calling card call to U.S. PSTN
number
23
The Current Pactolus Commercial Offering
Admin Tools
Service Provider Hosted SIPware Services
  • Reservation-less and Event Audio Conferencing
  • Prepaid and Post paid LD Services
  • Residential and Business Voice over Broadband
    (VoBB)
  • Voice Messaging

SIPware Application Configuration Environment
RapidFLEX Service Delivery Platform
SIP or MGCP
SIP
RapidFLEX System Management Console
RapidFLEX IP Media Server
RapidFLEX Session Border Control Server
RTP
24
www.SIPdev.org
  • Downloads page with full VoIP/IMS developer
    toolkit
  • Service creation environment
  • Service deployment platform
  • Software-based media server with IVR/Conferencing
    support
  • Open source reference applications and tutorials
  • Comprehensive documentation
  • Over 200 documents available now FAQs, how-to
    articles, etc
  • Proven interoperability with wide range of 3rd
    party products
  • Best-in-class media servers, SIP gateways, speech
    engines
  • Vendor partner links hosting partners,
    integrators, interoperable products
  • On-line forum for developer community

25
Pactolus SIPdev.org Offering
Open Sourced RapidSTART Applications For
Service Providers Enterprises
Admin Tools
RapidFLEX Service Delivery Platform
SIP or MGCP
SIP
RapidFLEX System Management Console
RapidFLEX IP Media Server
RapidFLEX Session Border Control Server
RTP
26
Service Creation Open Architecture Touch
PointsEqualsEfficient Customization
27
RapidFLEX Service Creation in actionStep 1 add
event handlers for your application
28
RapidFLEX Service Creation in actionStep 2
drag-and-drop building blocks
29
RapidFLEX Service Creation in actionStep 3
configure building blocks
30
RapidFLEX Service Creation in actionStep 4 use
JavaScript editor to set application variables,
as needed
31
RapidFLEX Service Creation in actionStep 5
provision application into the network
32
Tom ReganManager, Sales EngineeringPactolustreg
an_at_pactolus.com
33
IP Platforms Criteria for Sustained PSP Success
  • 4 Rules For Successfully Migrating to IP
  • Understand Where Youre Going Get IP Savvy
  • Move Forward Without Going Backwards A Checklist
    of Legacy Capabilities To Take With You
  • Get More Control, Not Less A Checklist of IP
    Platform Must Haves for the Flexibility to
    Control Your Business
  • Think Future-Ready, Future-Ready, Future-Ready

34
1 Become IP Savvy
  • Calculate the potential Capex, Opex, Netex and
    probable transition cycle/ROI for your business
  • Route expansions potential projected services,
  • Costs of migration vs. stasis, including
    scale-ups expansions
  • Innovation potential of open source/open access
    resources
  • Experienced vendor can aid transition help
    avoid gotchas
  • Just as IP and TDM architectures differ, so does
    execution of key functions in the network, for
    ex
  • Consolidation of routing information in platform
    differs
  • For ex., LCR in IP transport (SS or SBC) vs. call
    processing platform solid P-SDPs inform the
    routing system

35
2 Move Forwards, Not Backwards
  • Table stakes
  • Basic, Essential Features Your IP Platform Must
    Have
  • Ability to vary rate plan based on billed call
    sequence
  • 2-stage calling with ANI recognition, call back
    1-stage calling (no IVR)
  • Real-time PIN generation distributor activation
    (GUI and/or API)
  • Balance checks, issuance of debits credits via
    API
  • SQL-only debits credits tethers PSPs to the
    vendors shifting data model
  • API gives PSPs easy-to-use database and lets
    vendor continually optimize system

36
3 Getting More Control, Not Less
  • The goal IP migration can should give you
  • More freedom to define your business model and
    control services margins
  • New flexibility to shape services, attract
    customers build loyalty
  • Better expansion abilities including
    wholesaler-retailer
  • The criteria in addition to controlling
    announced delivered call durations, billed
    amounts and subscriber service features (such as
    re-provisioning), IP prepaid platforms need to
    offer key revenue control features and
    future-ready capabilities

37
3 Getting More Control, Not Less
  • IP Platform -- Innovation-enabling features
  • Easy, ongoing service customization
    extensibility via
  • The application flexibility to define
    configure subscriber experience
  • APIs enable extension of existing service logic
    for ex. web services APIs are prevalent
    understood by programmers, vs. access of
    databases by SQL
  • The development environment app. service
    creation environment lets SPs radically extend,
    differentiate create new services without
    advanced programming skills protocol expertise
  • Collapsing costs
  • - For ex. sharing resources such as access s
    among multiple service products for economical
    growth, service diversity network simplicity.
  • - Easy, dynamic reassignment of resources by
    sw. configuration.

38
3 Getting More Control, Not Less
  • IP Platform -- Innovation-enabling features
  • Powerful real-time ratings engine for managing
    margins market opportunity
  • Flexible Rates such as time of day, day of week,
    etc.
  • Usage policies billing sequence rates
  • ANI-based charges for exceptional, expensive
    origination points
  • Other origination destination charges
    self-defining adjustments such as for 800 s,
    payphones, foreign destination calls, etc.
  • Access -based rates promo new services while
    sustaining current ones
  • Customizable service logic, easily inserted
    without vendor involvement and service
    interruptions.

39
4 Future-Ready Services
  • Easy PSP-implemented service customizations, call
    logic creation insertion are increasingly
    essential for 2 reasons
  • Economic
  • Markets maturing - to maximize revenues, the PSP
    needs to fine-tune various charges and policies.
  • Regulatory scrutiny is increasing
  • PSPs need the ability to proactively, dynamically
    avoid potential regulatory interventions
  • The IP Platform must help the PSP defend against
    charges of non-compliance with published rates,
    while maintaining profitability.

40
Follow-up questions?
  • Contact John Adams at jadams_at_pactolus.com
  • Thanks for participating in the Webinar
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