Ericsson Review

Editorial

Written by: Tomislav Migotti

Thanks to cellular telephony systems, mobile communication has become a part of everyday life. People can stay in touch as they move about; they can request and obtain services anywhere and at any time.

The Mobile Internet introduces an IP paradigm and new ways of building networks, which implies that new products and solutions as well as a whole new set of skills and services (Internet-based services) must be made available to our customers. Ericsson’s global experience, gained from more than 100 years of building complex telecommunications systems, gives us a unique position in the marketplace.

The products, user services, and solutions described in this issue of Ericsson Review relate to the improvement of existing technology, as well as to new products, solutions, user services, and customer services that are needed for the successful introduction of the Mobile Internet. Notwithstanding these advances, I want to point out a number of challenges that Ericsson’s Global Services business unit must yet address in order to successfully support the introduction of new products, network solutions, and user services:

1. Guaranteeing rapid, large-scale roll-out of third-generation systems has been a challenge that was successfully defined and partially solved in 2000, through strategic partnering with companies such as ABB, Flextronics, NCC, Skanska, and Spectrasite. These partnership agreements have already given Ericsson a competitive advantage in the eyes of our customers, market analysts, and investors.

2. System-integration-related competence. Solutions that are based on third-generation systems and their applications will require new ways of working and of verification. Short lead times, product life-cycles, multiple network technologies, new user services, and new standards will characterize this change. The key to success lies in being first to market with the right products and skills. Essential elements for continued success include understanding the technology, products, and customer needs, a local and global presence, as well as the rapid transfer/distribution of competence. The development of tools for verification and trouble shooting (especially for IPv4 and IPv6, including routing protocols) at the network element level as well as at a broader network level will also facilitate competitive differentiation in the market.

3. Network solution design. During the early phases of technology roll-out, great emphasis must be put on the design of network solutions. Using a business case scenario, this should include the choice of architecture, migration paths, applications, and core networks. We must provide the trend-setting “standard” solution, a feat that can solely be achieved through close interaction with a few key operators. The necessary competence is related to knowledge about building carrier-class IP networks that are scalable, robust, available, and expandable. Another important aspect is network security: the challenge is to balance security with other characteristics (for example, throughput that is based on a well-defined quality-of-service policy). The complexity of network solutions for the Mobile Internet will demand greater interaction between theoretical study and solution verification. One example of successful interaction is the Global Services HotLab facility at Telefonplan in Stockholm.

4. Performance-management strategy. A performance-management strategy that can deliver the proactive and timely management of end-to-end service performance (content to terminal) from both a customer and service perspective is another challenge. End-to-end service and quality of service will become two major factors that differentiate service providers in the Mobile Internet marketplace, where services will need to be implemented across networks and across multiple enterprises. A critical phase for successful service management is service design, which covers the implementation of network elements, service logic, and service-level-agreement (SLA) management tools to monitor service provisioning. The service management capability is to become a major differentiator for service/network equipment. For example, as an alternative to using charging detail records (CDR) as a source of traffic information, the implementation of traffic performance counters in GPRS service node (GSN) equipment might save millions of dollars in the service management implementation project.

5. Competence and flexibility (rapid, on-going learning, staff retention, and appropriate recruitment of necessary expertise) will be critical to success. Likewise, success will depend on how well the services organization can follow product and solution roll-out. Neither will be successful without the other nor without close cooperation with customers.

Obviously, I take it for granted that each new product or solution that is developed and introduced to the market will be accompanied by a basic set of customer services that covers network design (radio and core), installation and implementation, basic hardware service, customer support, and training. These offerings are part of every product release for fixed, mobile, and application-related delivery.

[First published in Ericsson Review no. 03, 2001]