Service Broker Network Elements: Bridging the "Converging Network"

by Ronald Gruia, Principal Analyst and Senior Consultant

3/23/2009

Current State of the Network Transformation

Growing competition from "over-the-top" non-traditional telecom providers, deregulation, rapidly changing technologies and saturation in some markets are making it increasingly difficult for operators to build market share and shore up their ARPU (Average Revenue per User). Service Providers are faced with a situation of diminishing untapped markets and therefore must focus even more to maintain ARPU and customers while continuing to acquire new subscribers from the competition. Accomplishing these goals requires the rapid introduction of new compelling service offerings with the ability to leverage existing revenue producing voice applications into new service bundles across converging network domains. However, the current application interworking and deployment models continue to prove costly, problematic and inefficient. This Market Insight explores these difficulties and an innovative solution available to maximize the benefits of existing infrastructure and minimize the inherent risks associated with launching new applications by extending the reach of any applications to all subscribers on all networks.

Current Situation

Service providers for the most part have embraced horizontal "IMS-like" architected networks that enable the quick and cost effective introduction of innovative applications. However, time and time again operators find they must also invest in infrastructure and applications that may not prepare them for that vision. Today's investment dollars are spent on new applications riding new networks with the promise of increased ARPU and market opportunity but these investments come loaded with risks and does not address the potential of existing revenue producing applications and services residing on existing networks.

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Monetizing the New Network

Given the current market environment, service providers must find a way to deliver new applications to the largest addressable market possible. By definition, each major operator carries with them a strategic advantage, a vast, existing subscriber base. Today's application deployment models limit the opportunity to fully leverage this asset due to ongoing use of stand alone application silos, proprietary solutions and continued network convergence. Service Providers must find a way to overcome these challenges and increase the revenue opportunity of existing services and minimize the risks associated with the introduction of new applications within NGN/IMS. This can be accomplished by embracing a solution today that will increase the reach of existing voice services and open up Next Gen and IMS applications to a wider audience of existing subscribers on existing networks, As network convergence continues to grow, providing application reach for both existing revenue generating services and innovative NGN/IMS services empowers operators to grow the associated existing and new service revenue from both TDM and NGN/IMS offerings while limiting additional investment in legacy infrastructure.

Innovation at Work: Service Broker Network Element

While the NGN/IMS blueprint has provided a good foundation on which new feature rich applications can be built, the revenue generating, table-stakes applications of the legacy network are often overlooked (for instance, one hardly hears the term "IMS voice mail, VPN, Pre-Paid"). Service Brokers have emerged on the market as a new network element providing efficient and cost-effective application connectivity. The Service Broker resides at the application layer and sits between the application layer and the network to provide interworking and manage connectivity to the evolving network. A Service Broker solution leverages these capabilities to allow Service Providers to preserve the investment in current revenue-producing applications by enabling inter-working with next-generation network build-outs. This enables service providers the ability to re-purpose applications as opposed to re-purchase costly applications and creating NGN/IMS application islands.

Service Broker Network Element: Bridges the "Converging Network"

Legacy Applications to New Networks

Extends the reach of existing revenue producing applications to new networks and enables new NGN applications to reach large subscriber base on existing networks
Efficient use of existing CAPEX investment via extended application reach
Reduces the dependency, time and costs associated with proprietary vendor solutions to re-write or re-connect as networks converge and evolve.

New Applications to Legacy Networks

Enables new "combinational services" that blend innovative NGN with traditional IN services
Reduces operational costs by allowing the efficient management of one IMS ready, future proof network element.
Accelerates the transition to the NGN by maintaining a consistent user experience across multiple network domains

A Final Assessment

Service Brokers represent an innovative approach to extend application reach and achieve higher ARPU from both existing and new applications. Traditional stove piped and proprietary solutions are less desirable in comparison to the Service Broker's ability to route, broker, and deliver the requisite functionality to link application servers and legacy applications while simultaneously providing all the necessary application connectivity.

The ability to leverage existing revenue generating assets while concurrently introducing new innovative services enables operators to extend the useful life of revenue generating voice applications and increase the success of new application investments on NGN/IMS.

As carriers evolve towards the NGN, technologies such as the Service Broker fulfill an important role by providing backward compatibility and application reach for revenue generation services. These innovative capabilities equip service providers with the means to maximize the potential within their existing applications and networks, insulate their legacy investments and prepare to embrace the future.

About the Author

As the Principal Analyst and Senior Consultant for Frost & Sullivan's ICT Practice, Ronald Gruia is responsible for both consulting projects and subscription services, reporting on topics such as IMS (IP Multimedia Subsystems), 4G technologies, FMC, VoIP, Enhanced Services Platforms, IPTV, IP Centrex, Broadband Access, Triple Play Services, SIP, IP phones, IP PBX, Wireless LANs, Enterprise Communications Systems, Unified Communications, Speech Technologies, Contact Centers, and Web Conferencing.

Ronald also writes articles for various publications (such as IMS Magazine, VoIP Magazine, Telecommunications Magazine and Telemanagement), has appeared on Report on Business Television (Canada) and 3GSM TV (Spain), and is often quoted in publications including Business Week, Forbes, Wired, Network World, IT Business, IT World, The Globe And Mail, National Post and CIO Magazine.

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