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Realizing the operator's service network:Ericsson's systems integrationTorbjorn Svanberg, Sebastian Lind and Chamath KodituwakkuThe service network represents two major propositions for operators: onthe one hand, it exists as a highly complex environment, defined by multivendorproducts and software, applications and services, and many differentcommunication standards and protocols. This suggests thatimmense expertise is needed to make sense of it. On the other hand, theservice network offers operators extremely rich opportunities to earn newrevenues. But to realize the true potential of the service network andmove toward third-generation-ready networks, the operator must fullyunderstand the technical complexity and business issues involved.The authors explain how systems integration provides operators withthe means of evolving and realizing their service networksIn today's highly competitive telecommunicationsenvironments, operators need todevelop and launch new, easily accessibleservices that will help them in their bid toattract subscribers, retain existing ones,make a profit, and gain market share. Reachingthese objectives is dependent on severalfactors that affect the service network. First,thete is a need for truly open environmentsthat do not restrict operators in what theycan use or offer. There is also a need for ahigh degree of flexibility in managing services,the third-party partners, and thecharging arrangements between them.Finally, to allow for future growth, the servicenetwork must be scalable.By implementing a service network withcommon functions for vertical applications,the operator can enable rapid developmentand a subsequent launch of services that providenew streams of revenue. However, theimplementation requires in-depth technicalknowledge, skill and business expertise plusthe ability to manage numerous interrelationshipsbetween third parties, such as serviceproviders, content providers, electronicretailers (e-tailers), advertisers, equipmentsuppliers and software vendors. Theseparties must also agree on revenue sharing,content, and the provisioning of services andapplications (Figure 1).What is more, end-users—individualsubscribers and enterprise customers—must be quizzed to reveal what they expectin terms of services, what they want to see,how much they are willing to pay, and soon. This important aspect can be addressedthrough continuous consumer research andconsultancy.Ericsson's step-by-step approach to systemsintegration is a highly efficient methodthat provides a profound understanding ofthe business issues and technical matters tobe considered.Figure 1Different stakeholder needs are met in theservice network.26Ericsson Review No. 1, 2003