This paper describes why it is important for network operators to adopt a new approach to network design, what the networks must achieve in terms of their key operational characteristics and how certain design principles can be applied to fulfill these objectives. Well-designed scalable, smart networks will grow Total Value of Ownership (TVO) by providing a good balance between controlling costs and handling unforeseen changes in business strategy.

The telecom industry is entering an era of smart networks in which everything that can benefit from being connected will be linked to the network. In this highly competitive market, operators can differentiate their positions through brand, services and target customers. The perception of value is moving away from the delivery of data – or bits – and towards services and content, challenging current business models and creating new opportunities for operators to participate in service value chains.

There are multiple valid market positions here for operators, and they can be defined by a number of factors – low cost and best-effort connectivity, high service availability, fixed/mobile convergence, content delivery and service innovation, among others. Whatever position an operator chooses becomes its key smart network design driver.

Well-designed smart networks will grow Total Value of Ownership (TVO) by providing a good balance between controlling costs and handling unforeseen changes in business strategy.

Designing a network for a chosen market position relies on exploiting three key network characteristics: scalability, to cope with growth in the number of connected devices, traffic volumes and control-plane load; smartness, to add value to the service traffic carried; and superior performance, to delight customers with rapid service introduction and excellent Quality of Experience (QoE).

The most important design principles include taking a holistic perspective to avoid sub-optimization, including sufficient enabling functions and ensuring that these can then be activated by operational support and policy-control systems. In practical terms, networks should be as simple as possible; be designed to maximize growth and TVO, as well as meeting an operator’s unique business objectives; include a reference architecture covering both functionality and topology; and make use of traffic-processing enablers and control systems.

Network designers face a changing and challenging environment, but this paper shows that the smart network is truly a strategic asset that can continue to grow future value for the operator.