European operator reduces TCO - Nokia Siemens Networks

“As well as reducing the total cost of
ownership (TCO), it also presents us
with new upselling opportunities. After
the initial installation, subscribers can
order new services straight from our
web portal, which is a great lowcost
mechanism for opening up new
revenue streams.”
European Communications Service
Provider
A cost-efficient
transition to triple-play
Generating new revenue through VoIP and IPTV services
while minimizing the cost of service delivery
Evolving from a traditional telco
to a cutting-edge broadband
multimedia provider is a huge
business challenge for even the
best-run organization. Heading
the list of strategic priorities:
how to manage the cost of
change.
With the help of a Nokia
Siemens Networks customer
premises equipment (CPE)
management solution, a
European Communication
Service Provider (CSP)
is successfully rolling out
VoIP, Internet access and
IPTV services to millions of
customers while minimizing
the expenditure incurred by
provisioning, software upgrades,
customer support and other key
operational functions.
The CPE/network integration
challenge
Already well established as a national
broadband provider, the CSP’s
existing Internet service model relied
on the relatively simple integration
of its own exchange equipment and
customer-owned DSL modems.
But in order to introduce new
services such as managed VoIP and
IPTV, the CPE-network integration
had to be achieved on the more
complex application level. This in turn
meant replacing customer-owned
modems with CSP-owned units,
and efficiently managing a large and
rapidly growing base of customer
premises equipment.
Reducing cost and complexity
The financial implications were
significant. Deploying 600,000 new
devices could have cost the CSP
over €14 million. Sending technicians
to carry out manual firmware updates
on the customers’ premises could
have cost nearer €20 million. And
from the customer’s point of view,
there was a very real danger that the
increased complexity of the offering
would inhibit service take-up.
A simpler, more cost-effective
solution was clearly required.

Cost-efficient provisioning and
management
Using a highly scalable CPE
management solution from Nokia
Siemens Networks, the CSP was
able to deliver almost 8,500 firmware
upgrades per hour. Working for a few
hours every night, all 600,000 CPE
devices were upgraded remotely
within just two weeks.
This CPE management solution is
part of Nokia Siemens Networks
complete service fulfillment solution
portfolio to enable CSP’s to improve
their back-office productivity,
cost-efficiency and end-customer
experience through well-planned,
optimized and fully integrated
service fulfillment automation.
Working closely with the CSPs
service delivery and operations
teams, Nokia Siemens Networks
Solutioneers provided full integration
of their OSS and helpdesk
systems with the centralized
CPE management solution and
with customer equipment from
two different manufacturers. The
resulting solution supports the
entire broadband service lifecycle
from order management and auto
provisioning to ongoing support and
online service management. A “zerotouch”
methodology means that
each CPE device is provisioned with
firmware upgrades, wireless, firewall
and SIP configurations automatically.
Delivering value through a better
experience
The advantages are clear for both
CSP and customer. Service quality
is assured by end-to-end control
and monitoring, ensuring more
satisfied customers and lower rates
of customer churn. Subscriber
information can be provided
and managed more effectively,
saving the CSP time and money
on customer care issues. And
device management is improved
— for example, customers can
self-configure certain operating
parameters directly via the CSP’s
website.
As well as handling millions of
customer database queries every
day, the system also enables the
CSP’s online helpdesk to support
around 40,000 customer requests
a day. By minimizing customer
support overheads and providing
for customer self-provisioning, the
solution achieves considerable
savings in operating expenditure and
delivers a rapid return on investment.
In the first year alone, the Nokia
Siemens Networks approach
delivered total cost savings of
14 million compared with the
projected outcomes of a more
expensive competitor solution.
Since then, the reduced customer
support overheads have resulted in
operational savings of 9 million
a year.
A firm foundation for growth
According to an executive close
to the project, it’s the combination
of cost-efficiency and plug-andplay
usability which has made the
greatest contribution to some highly
ambitious growth and profitability
targets. “As well as reducing the
total cost of ownership (TCO), it
also presents us with new upselling
opportunities by enabling our
back-end systems to authorize new
services quickly and easily. After the
initial installation, subscribers can
order new services straight from our
web portal, which is a great low-cost
mechanism for opening up
new revenue streams.”
These clear business benefits are
delivering tangible business results,
with VoIP market share increasing
from single figures to over a third
within only one year. Now with over
a million VoIP subscribers, the
CSP’s IPTV service is also up and
running, and is ramping up for
similar growth objectives.
Business challenge
• Reduce OPEX while introducing new services
• Integrate CPE devices with network management systems
• Plug-and-play provisioning to encourage new service take-up
Our solution
• Cost-effective, standards-based solution
• Multi-vendor support
• More than 99.5% system availability
• Highly scalable multi-server solution
Business benefits
• Cost savings through remote management and
reduced call ratio
• Faster return on investment
• Simple provisioning/improved customer experience
• New revenue opportunities
• More cost-efficient transition from telco to multimedia
service provider
Copyright © 2008 Nokia Siemens Networks. All rights reserved.
Nokia Siemens Networks and the wave logo are registered trademarks of Nokia Siemens Networks.
Other company and product names mentioned herein may be trademarks or trade names of their respective owners.
Products and solutions herein are subject to change without notice.
Nokia Siemens Networks Corporation, Karaportti 3, FI-02610 ESPOO, Finland
Eur
16 000 000
14 000 000
14 000 000
10 000 000
8 000 000
6 000 000
4 000 000
2 000 000
0
Value for operator
Year 1 Year 2 Year 3
Total cost savings achieved over first three years. Year 1 includes solution
implementation savings versus a competitor proposal
www.nokiasiemensnetworks.com