The convergence of the telecoms, media and internet sectors is driving a new generation of communications service and access devices as well as creating a new breed of competitors for traditional telecommunications carriers. IMS enabled services and networks are one way to create highly flexible service platforms and allow subscribers to access a greater range of media. However, migrating from circuit switched technology to next generation packet-based IMS networks can be a difficult task. Service providers are concerned about disrupting existing services and revenue streams, as well as support for future network equipment and business and operational support systems (BSS/OSS).

1. What is IMS?

IMS is a standardised Next Generation Networking (NGN) architecture that is likely to transform the way service providers control, manage and charge for services in their networks. IMS uses open, standard IP protocols to offer ubiquitous access to a range of communications services. The aim is make service integration easier and to extend services to customers irrespective of location, access, and device.

2. What is the opportunity associated with IMS?>

Service providers need to rationalise and simplify their network and systems architecture and to streamline new service introduction. Legacy OSS/BSS infrastructure may not easily provide the flexibility to create and support complex services and charging options. At the same time service providers need to differentiate their services against a dynamic competitive landscape. The lines between traditional industry segments are blurring. New market entrants are moving into the communications space, and traditional telecom companies are launching television and media businesses. Services are evolving beyond those purely derived from the communications network itself as retail and media companies compete to sell mobile and broadband services. Consequently service providers must achieve better margins from value added triple-play and quadruple-play service provision. This means integrating fixed and mobile services and moving towards integrated network technology to provide blended voice, data and video services options. IMS allows service providers to expand basic voice services to include web content, music, games and personal greetings, etc. and to generate more revenue (e.g. when customers share media during a call they are more likely to conduct longer calls and transfer more data).

The customer’s appetite for new services is growing rapidly. Changes in attitudes and behaviours, as well as new competitors and ubiquitous services, are affording customers the opportunity to demand much greater choice and responsiveness. Customers are using a growing range of devices (TV, PC, Blackberry, MP3 player, etc.) to access a wealth of communication services. They demand more customised applications, faster response, and increasing service innovation. In an all IP-world, differentiation will come from creating a compelling mix of services, flexible charging options and consistently high quality multi-channel customer care. Service providers must accelerate the introduction of new services, expand the value chain with partners and manage shorter product lifecycles in order to manage customer expectations and sustain their competitive position. In the past new service development could take weeks, months or even years to deploy. It meant investment in new infrastructure and resulted in duplication of OSS/BSS systems and fragmented fulfilment processes. Today, greater collaboration between IT and network operations is required to deliver convergent infrastructures that can support next generation services and offer the necessary scalability and resilience.

3. How can service providers exploit the IMS opportunity?

To date, many service providers have focused on the short-term issues of how to implement IMS cost effectively while utilising as much of their existing network infrastructure as possible. This approach does not capitalise on a number of important innovations and strategic opportunities that IMS will bring about:

• Network rationalisation and cost management alone are insufficient drivers to adopt IMS. But when competitive threats from new media and providers are added, this does create a more compelling case.
• The battle for the consumer will increasingly be fought over content, services and brand equity, not over access, network capacity or price
• Service portfolios will need to include new multimedia services, P2P services like video sharing and innovative bundling options
• Business models must rapidly evolve without compromising service capabilities at the expense of the network
• As IMS commercial models mature, service providers will need to consider optimum ways to deploy fixed/mobile convergence (FMC) as part of the new service revenue potential.
• The adoption of IP based communications and value added service strategies will open up new wholesale business opportunities
• In an all-IP world, differentiation will come from creating a compelling mix of services, flexible charging options and consistently high, quality, multi-channel customer care – not from proprietary technology

4. What is an appropriate IMS Charging solution?

Effective support for IMS will require a redefined role for BSS/OSS and enhanced capabilities in order to capitalise on the business opportunities it provides. Vendors will be expected to demonstrate:

1. IP track record – An extensive IP track record from post-event to real time mediation/rating, value based charging of advanced services, such as IP data, content, messaging, games, m- and e-commerce. Demonstrating the ability to reduce risk exposure versus self-proclaimed ‘silver bullet’ systems. This includes being able to handle and integrate the demands of high volume data processing with the performance needs of real-time bi-directional management of service requests in a single architecture
2. Compliance with 3GPP specifications and best practice in the creation of charging functions for next generation IMS enabled services
3. Adaptable support for underlying network infrastructures –– to bridge the gap between packet based and circuit-switched networks.
4. A migration path to IMS in stages - allowing service providers to approach IMS from an adjunct service perspective, ensuring low risk service launch and gradual adoption of services, thus avoiding a high risk, ‘big bang’ approach
5. Investment protection through integration with existing OSS/BSS infrastructure and support for proprietary event formats
6. The ability to reduce time to market for service creation by making the transition to a more effective means of delivering high-value data services. This means supporting unique capabilities in relation to product pricing, product bundling, cross-product discounting and subscriber account options (Pre Pay, Post Pay, or Hybrid accounts). In addition enabling products to be easily tested and improved at minimal cost and risk

Author: Simon Dadswell, Advanced Solutions Marketing Manager, Intec