TOP TEN PAIN POINTS OF

OPERATING NETWORKS
AVIAT NETWORKS
2 AVIAT NETWORKS
#1- OPEX IS LARGE AND KEEPS RISING
Operators, IT organizations and private businesses are
searching for new business models and cost structures
to remain competitive while surviving on-going budget
cuts. By using vendor or partner supplied managed ser-
vices, operators and private businesses can cut OPEX
costs. Operational functions can be outsourced at a
cheaper rate than what public and private operators can
support themselves.
Operators and private businesses are pressured to fnd
new, creative ways to cut costs., By outsourcing por-
tions of your operating budget - from full operations to
specifc functions or scopes of work - Operators can
reduce their OpEx budget .
21%
26%
5%
5%
10%
33%
39%
22%
31%
8%
OPEX Breakdown
Fixed Line Operators
Network operations
OPEX Breakdown
Mobile Operators
General and Admin
Marketing and Sales
Customer Care
Network operations
Source: Yankee Group, 2007 estimates. EEMEA denotes aggregate of Eastern Europe, Middle East and Africa. Source: Yankee Group, 2007 estimates. EEMEA denotes aggregate of Eastern Europe, Middle East and Africa.
General and Admin
Interconnections
and Roaming
Terminals and Materials
Marketing and Sales
Customer Care
On average mobile operators
are spending three times more
on OpEx than CapEx. These
same operators are spending
~26% of their OpEx budgets on
network operations.(fixed line
operators are spending 39%)
-Yankee
Outsourcing contracts can create stability and predict-
ability in your budgeting process. Costs fgures from
NOC operators are typically fxed by contract and are
predictable for multiple years, allowing you to control
and consistently meet your OpEx budget.
In a highly competitive market, Telecom Companies have
been forced to squeeze cost from their operations back
offces through process optimization, enhanced solu-
tions, and formalized procedures. Despite these efforts,
many telecom companies are still under pressure to drive
additional cost savings and are beginning to explore the
benefts of a managed services arrangement, realizing
that maintaining and supporting non-core functions, such
as Network Operation Centers (NOC), is no longer the best
use of their resources.
3 AVIAT NETWORKS
#2- MANAGING THE NETWORK IS TAKING
FOCUS AWAY FROM GROWING THE BUSINESS
Many businesses would rather concentrate on their core
competencies, such as developing customer relations and
new service opportunities, instead of operating a network
that supports their business
Informa notes in The Rise of the Hollow Operator
that, traditionally, operating the network was a
source of differentiation. Today, the network is longer
a differentiating factor. It is more cost effective
for operators to outsource the network in order to
concentrate on their core competencies.
Subscribers dont necessarily see the network as the
differentiator either. Subscribers are willing to pay for
the best overall service plan. If they are satisfed with
their plan, they dont care who operates the network.
Competition is coming at operators from all directions.
Operators cannot sit and fddle with networks. They
must focus on attracting customers and developing their
offering. Stefan Jelvin, Strategic Marketing Manager at
Ericsson Global Services, from The Rise of the Hollow
Operator.
#3- LOW CUSTOMER SATISFACTION
Customer satisfaction and retention is important to me.
How do I provide outstanding customer support while
offering the newest applications and services?
Outstanding customer service, trouble-free network
operations and delivery of promised services are
key competitive advantages for Operators and drive
customer satisfaction. This can be accomplished by
outsourcing your operations to network management
vendors via contracted SLAs. Customers will stay
satisfed with the latest applications & services at their
fngertips in combination with network uptime.
Alternatively, Public and Private Network Operators can
improve their network performance and end-to-end
network processing by integrating elements of their
network into one network management platform. This
in turn drives faster resolution to networking issues in
a pro-active manner and provides a platform to prevent
issues from impacting end users.
Per Informas report on Telecom Managed Services:
The Rise of the Hollow Operator, Some clients just
want you to take their mess for less. They dont want you
to transform it, just offshore it. They want to outsource
it, and they drive their providers to do it for less than they
can do it themselves.
The forecast for the worldwide
market for Managed Services
has a CAGR 20% reaching
$21.4B in 2013.

-Informa
4 AVIAT NETWORKS
#4- NETWORK IS NOT FUTURE PROOF
Your time to market to deliver new services is critical. Can
you differentiate yourself with value-added services? How
do you focus on winning new business while learning to
operate your new network?
Lower your barrier to new service markets while limiting
your upfront investment to implement, operate and
maintain your network through outsourcing or out-
tasking.
With the initial awarding of Broadband Stimulus funding
underway, many public and private network operators
will be pushed to meet the aggressive timelines
stipulated by the plan guidelines. Seek vendors and
partners who deliver end-to-end solutions that are
augmented with the right products and services to help
you reach your goals faster.
Some vendors and partners provide turnkey services,
ranging from application support to network design,
implementation and support. These types of turnkey
solutions provide you with the peace of mind you need
to focus on your key business objectives such as
keeping your customers happy with new services
powered by your technology transformation to
3G, 4G, WiMAX, LTE, etc.
#5- NETWORK UPGRADES DISRUPT
CUSTOMERS
Managing multiple vendors through network expansion
and convergence can be a large management problem
especially if vague lines of responsibilities exist.
Your NOC provider or partner becomes your single
point of contact for network convergence - they are
responsible for managing network protocol or interface
challenges across your network for all vendors. They
are your one throat to choke, which relieves you of
the burden to manage multiple vendor contracts and
the convergence of independently operating network
elements.
Via integrated service assurance solutions, Network
Operators manage network convergence and maintain
visibility of all network elements throughout a network
expansion. They manage your network convergence
while meeting your contracted SLAs so end users are
not impacted.
Network growth planning and implementation requires
costly investments in employee skill-set development
and training. A network management vendor can grow
your network quickly and effciently by applying frsthand
experience in scaling network operations.
5 AVIAT NETWORKS
#6- LACK WORLD CLASS OPERATIONS TOOLS,
PROCESSES AND PEOPLE
Do I have the right system tools and trained personnel
to manage my network? How much cost is involved in
keeping up with the latest upgrades and training?
An integrated Network Management System (INMS)
gives you instant visibility and end-to-end management
of your entire network infrastructure. INMSs also pro-
actively manage network operational issues through
fundamental tools such as Trouble Ticketing systems,
Performance Management, Workforce Management,
and other systems.
World-class NOC operators use comprehensive
Integrated Service Assurance Solutions which provide
their clients with a competitive edge in Customer
Service and network uptime. These Integrated Service
Assurance Solutions drive ETOM compliance which
ensures high performance in your network.
NOC operators will also have eTOM certifed specialists
and other certifed personnel, thus providing you with
access to world-class resources and processes. These
are key personnel to seek out when searching for a NOC
provider or Managed Service Provider (MSP).

Globally, $120 billion per
annum is spent on staffing
network operations alone.
-Yankee
#7- THE NETWORK DOES NOT RUN EFFICIENTLY
How do I know if my network is running effectively?
Are my customers impacted by how well or poorly the
network is operated? Am I on the right path to achieve my
networking business goals?
Access to reports that refect comprehensive network
statistics are a critical advantage for any operator,
business owner or private network provider. An
INMS solution provides real-time views of network
performance, and daily reports on network health down
time, and Mean Time To Repair (MTTR). The reports
enable an operator to manage a network both reactively
and proactively to minimize downtime, maximize
effciency, and plan for capacity change - all of which
prevent problems for end users.
Heads up: many organizations today implement INMS
solutions, but are not reaping the maximum beneft of
their investment because the solution was implemented
without fully assessing and re-engineering existing
processes. To maximize your cost savings, invest the
time and money into an end-to-end process assessment
exercise whereby the whole process is restructured for
enhanced effciency.
Examples of situations requiring process improvement in
organizations include: 1) operational processes are either
scattered, non-existent or have no relevance to the people
doing the work, 2) knowledge of changes to the network
rests in the minds of people rather than well documented
change records, which results in your work environment
being people dependent instead of process dependent,
3) concern about your organizations readiness to pass
TL9000 audits or certifcations.
6 AVIAT NETWORKS
#8- THE NETWORK IS NOT SECURE
How do I detect, counter and prevent hackers?
Are my customers protected? What are these disruptions
costing me?
With world-class surveillance tools integrated into their
NMS/INMS infrastructure, 3rd party NOC operators can
provide property surveillance and act on network and
physical intrusions in real time. These solutions can
include dispatching police and responsible 3rd parties to
take immediate action.
NOC Operators typically have access to the latest virus
protection updates and applications to ensure that
your network is protected from unauthorized access.
Without these tools in place, network owners are at risk
of providing a rapid response to attacks and intrusions,
which can slowdown or even shutdown your network.
#9- NO DISASTER/RECOVERY PLAN
Is my business safe from a disaster? Are my customers
protected, and how fast can my business recover?
Many Operators do not have a reliable back-up solution
or Disaster Recovery (DR) plan. Furthermore, most DR
plans are complex and drive the need for redundant
networking operations that are costly to implement.
However, if you do not implement a DR plan supported
by a reliable back-up solution, it can become a very
costly decision as you can potentially lose signifcant
market share and subscriber base.
Third-party NOC operator can deliver a solid DR Plan for
your network. Backing up your network infrastructure
is the smartest, single action you can take to guarantee
network uptime via network redundancy. Your NOC
operator can customize a DR plan so that your network
is protected and comes online faster in the event of a
natural disaster or critical networking event.
7 AVIAT NETWORKS
#10- NO REGULATORY AND COMPLIANCE
SUPPORT?
With growing industry and federal regulations, do I need
to comply with all of them? Do my customers need them?
How do I become compliant?
World-class NOC Operators are typically educated
and compliant to industry regulations and standards.
ETOM certifed professionals provide the highest levels
of expertise and professionalism available in todays
market to navigate you through the on-going growth of
regulations and how you need to modify your network to
be compliant.
NOC and Call Center Operators have experts on their
staffs that understand how regulations can affect
network operations to include CALEA, e911 regulations
and more.
By outsourcing your network operations to experts, you
remove yourself from the burden of having to obtain the
regulatory knowledge required to keep your network
and processes compliant.
The rate of growth by
segments of the managed
services market ranges from
seven percent to 13 percent
over the forecast period. In
contrast, growth of telecom
business services will grow
only three percent over the
same time frame.
-Insights Feb 2009
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