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Sustainable advantage and differentiation are the
source of value creation in all competitive
industries. If industry participants have only a few
small differentiation points, the typical outcome is a
stalemate. On the other hand, if the players manage to
create significant differentiation, they all can
thrive by delivering unique value to a variety of
customer segments. Recent developments have
demonstrated that the telecommunications service
provider market is subject to the same fundamentals as
any competitive industry. In fact, the intention
behind the broadband packet network build-outs of the
last few years was precisely that: introducing new
enhanced services and applications not possible in the
existing networks, and thereby transforming the basis
of competition in the industry towards differentiated
subscriber services. Rapid creation and rollout of
enhanced services, however, turned out to be much
harder than building bandwidth.
But the fundamentals remain, and accelerating the
creation of new services is now, more than ever, a
vital, competitive imperative for both incumbent and
emerging service providers. With sagging stock
valuations, incumbents are driven to generate new
sources of high-margin revenue to improve the growth
and profitability of their business from their
existing base of customers. In contrast, emerging
service providers want to create service
differentiation in order to entice customers to switch
and stay.
This article will first define the term "service
creation," which refers to the actual creation of new
applications, and compare and contrast it with "service
customization" and "subscriber service provisioning,"
which often have been confused with service creation.
It then will explore the key obstacles to rapid
service creation and deployment in service provider
networks, and discuss innovative emerging solutions
that are removing these hurdles.
WHAT IS SERVICE CREATION?
Service creation is the process of creating entirely
new communications services. Starting with concept
development/definition, this process includes
development of the service logic; development of
provisioning, management, and billing software;
testing of the new application prior to installation
into the live network; integration and deployment of
the new service into the existing network and OSS of
the service provider; and, finally, commercial rollout
(Table 1).
It is important to note that enhanced services can
be created and delivered either at the base network
layer, such as bandwidth-on-demand and security
services, or at the applications layer, such as
follow-me and unified messaging applications, or
content delivery, such as airline or commuter
information updates. Vendors of carrier equipment such
as optical switches may be able to create or deliver
services at the base network layer. Such capabilities
are entirely transparent and complementary to vendors
who focus on delivering services at the application
layer.
| Table
1: Process For Developing New Communications
Services |
|
Concept
Development
(Stage 1) |
Service
Development
(Stage 2) |
Integration
And Deployment
(Stage 3) |
Commercial
Rollout
(Stage 4) |
| Analyze
market and customer needs
Develop service specifications |
Create
service logic
Create provisioning, billing,
and management functions and software interfaces
Validate applications prior to
live network deployment |
Install
Application
Analyze call mix scenarios
Plan configuration and
capacity requirements |
Provision
Service
Help desk
Enable subscriber
customization
Monitor performance |
WHAT IS PROVISIONING AND CUSTOMIZATION?
Service creation is distinctly different from service
provisioning and customization, which are "downstream"
activities performed by the service provider or an end
user after a new service has been created and
deployed.
From a product perspective, the term Service
Creation Environment (SCE) refers to software
development tool kits, such as component libraries and
GUI-based visual composition environments for
application developers. These "middleware" tools allow
developers to rapidly code sophisticated applications
and software during all phases of the service-creation
process.
Subscriber self-provisioning and customization is
the ability for end users to provision their own
services through a browser interface that presents
them with the service provider's logo and
look-and-feel. This no-touch provisioning and
customization interface can lower the barriers to
adoption of existing network services and reduce
administrative expenses for the service provider.
A number of next-generation vendors have offered
such GUI (graphical user interface) and Web-based
subscriber self-provisioning capabilities. In
addition, some of these vendors offer software tool
kits -- often XML-based -- to help service providers
customize the look and feel of such GUIs for branding
purposes. Such GUI software and tools have been often
labeled "service creation" by vendors to indicate that
the end user can turn on ("create") services without
the involvement of a service provider's customer
representative.
While provisioning and customization software are
very useful capabilities, it is important to avoid
such semantic confusions. It is also important to
recognize that the fundamental challenge of the
service providers lies in rapid service creation and
rollout into existing networks and operations.
Self-provisioning and branding become important only
if you can develop new services to sell to your
customers in the first place.
FASTER SERVICE CREATION AND ROLLOUT
Existing scenarios thwart rather than facilitate the
rapid and cost-effective creation and deployment of
new services. But a new breed of service creation
environment for converged networks is emerging.
Current Obstacles
To date, accelerated service creation and deployment
has proved elusive. Part of the problem has been the
lack of flexible, comprehensive service-creation
environments and the absence of true programmability
via open APIs in existing service switches and the
emerging softswitch architectures.
The service-creation process today involves
significant code development, and it takes 2-3 years
and over $10 million in upfront fixed costs for
service providers to bring new services to market.
With such daunting hurdles to overcome, service
providers typically resort to extensive market studies
where the service definition alone can take 6-12
months.
These obstacles exist because available
service-creation tools only support highly proprietary
SS7/IN infrastructure, such as Service Control Points
(SCPs). Within these environments, it is at best
cumbersome for service providers to develop converged
applications, such as follow-me or unified messaging
applications that can engage end devices across packet
and PSTN networks, like a black phone, a 3G handset,
or a SIP user device.
It also is difficult for service providers to
develop applications without critical-path
dependencies on their vendor's support. For example,
if you use a visual composition environment to speed
code development, you often subsequently need some key
enhancements to your application program that were not
accessible through the visual tools. That creates a
dependency on the vendor to provide additional tool
libraries or expose the source code behind the visual
tools -- often at a cost. In addition, applications
are platform-dependent and mostly non-portable.
Emerging Solutions
The new breed of service creation environment enables
service providers to accelerate the development,
rollout, and integration of new subscriber services,
such as follow-me, unified messaging, and enhanced
call center applications across the heterogeneous
access networks of today's service providers. Emerging
SCEs are designed to create applications that can tap
services and data from multiple networks, including IP
and SS7/IN infrastructures. They include extensive
tools for all phases of software development,
including application creation, acceptance testing,
and the development of components for the
provisioning, management, and billing software for
rapid integration of newly created services.
Thanks to powerful industry-standard development
tools, APIs, and frameworks, most service providers
prefer these next-generation SCEs to be based on Java
standards such as JAIN/JCC, JMF, and JMX. Java offers
a modern, object-oriented, and open environment where
highly portable applications can be rapidly created by
a large community of in-house or third-party ISV
developers. It also integrates well and securely into
Web-based environments such as -- not surprisingly --
Web-based subscriber self-provisioning GUIs.
PROGRAMMABLE EQUALS FLEXIBLE
SCEs are helpful, of course, only to the extent that
newly created services can be deployed on platforms
that execute these services after they have been
developed. Without flexible and operationally simple
and scalable platforms, service deployment can drag on
for a long time. This is most evident as service
providers attempt to integrate new applications while
trying not to break or degrade any of the existing
applications -- also known as regression testing.
Existing service switches designed to be extremely
reliable are not flexible enough for frequent
deployments of new service applications and resources.
This inflexibility has not been corrected by
softswitch architectures proposed in recent years.
While softswitch architectures offer a viable
solution for the Class 4 tandem and Internet offload
applications, their exclusive reliance on protocol
interfaces limits the range of new subscriber
applications that can be rolled out. The
interoperability protocols provide open interfaces
between devices in the network but not between the
network and the applications. Again, a new breed of
open, programmable service switches is emerging to
deliver rapid service deployment across converged
networks.
Beyond industry-standard protocols, such
programmable solutions present open APIs at each layer
to offer full visibility of all resources to the
applications. This breakthrough architecture delivers
flexibility for rapid support of a wealth of new
services without disrupting existing services.
Furthermore, programmable service switches can be
integrated with existing Class 5 switches to deliver
enhanced services to PSTN-based customers as well as
customers on the packet network. As a result, they
bring a new level of flexible, rapid service
deployment capability not only to the packet broadband
networks but also the existing PSTN and cellular
networks.
Working in tandem, emerging SCEs and programmable
switching solutions deliver the next-generation of
converged service creation and carrier-grade enhanced
service deployment platforms to service providers.
They will act as catalysts in transforming the basis
of competition in the service-provider industry from a
tired, "me-too" battleground (served by vendors
replicating decade-old existing service capabilities)
to a dynamic landscape of differentiated enhanced
service applications.
Emre Önder is co-founder and vice president of
marketing for Pelago
Networks, which enables local service providers to
simplify and accelerate the delivery of enhanced
communications services to business customers over any
broadband access network. Beyond breakthrough
technology, Pelago's solutions offer compelling
economic advantage through capital and operational
cost savings, new service revenues, and reduced churn.
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