Title: Time To Ditch The Switch For Prepaid Service Providers, The Economics of IP Migration Are Increasing
1Time To Ditch The Switch? For Prepaid Service
Providers, The Economics of IP MigrationAre
Increasingly Compelling
2Erik K. LinaskGroup Managing EditorTechnology
Marketing Corporation
3Agenda
- 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
4Brian PartridgeDirector, Enabling Technologies
Yankee Groupbpartridge_at_yankeegroup.com
5IP vs. TDM Issues Impacting Migration Decisions
- Capex
- Opex
- Netex
- Customization/Future-Proofing
- New business opportunities
- Time to change, or else??
6Capex 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
7Opex 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
8Netex 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
9Customization 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
10Summary 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
11Summary 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
12Summary Shifting Platform Economics
TDMModel
IP Model
vs.
Total
Accelerate Growth By Investing In New Services
Customization
Customization
Netex
Netex
Opex
Opex
Capex
Capex
13Ken OsowskiVP of Product Management
MarketingPactolus Communications
Softwarekeno_at_pactolus.com
14IP 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.
15Possible TDM Prepaid Platform SolutionIP Upgrade
Scenario 1
Softswitch,Media Gateway
Session BorderController
16Possible TDM Prepaid Platform SolutionIP Upgrade
Scenario 2
Session Border Controller
17SIP 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
18SIP 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
19SIP 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
20Example 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
21Example 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
22Example 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
23The 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
24www.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
25Pactolus 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
26Service Creation Open Architecture Touch
PointsEqualsEfficient Customization
27RapidFLEX Service Creation in actionStep 1 add
event handlers for your application
28RapidFLEX Service Creation in actionStep 2
drag-and-drop building blocks
29RapidFLEX Service Creation in actionStep 3
configure building blocks
30RapidFLEX Service Creation in actionStep 4 use
JavaScript editor to set application variables,
as needed
31RapidFLEX Service Creation in actionStep 5
provision application into the network
32Tom ReganManager, Sales EngineeringPactolustreg
an_at_pactolus.com
33IP 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
341 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
352 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
363 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
373 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.
383 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.
394 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.
40Follow-up questions?
- Contact John Adams at jadams_at_pactolus.com
- Thanks for participating in the Webinar