Enabling the network-embedded cloud

The first three generations of fixed and mobile networks were analog, digital and best-effort broadband. Each produced new challenges and opportunities for network operators. At present, the telecom industry is entering an era in which everything that can benefit from being connected will be linked to the network. The benefit of this has been established in high-value and critical applications but now technology is enabling cost-effective connectivity for much smaller, cheaper devices. Mobile broadband is now freeing internet users from the tether of a fixed location, and operators have the opportunity to exploit their deep knowledge of individual users, their devices and their location. Network video has also taken over from peer-to-peer as the dominant traffic type, and it will continue to grow into an integral part of the consumer television experience. Delivering mass-market, quality video places tougher requirements on network design. An increasing proportion of user services from third-party service providers are being delivered through operators' networks, in most cases only requiring the network operators to provide best-effort connectivity. This will not necessarily be the case in the future.

Assuring quality service delivery is increasingly important within any chosen market position. Operators should differentiate their underlying network performance - in terms of availability, throughput, low delay and security - to deliver the targeted quality of experience (QoE) of each new service. This provides increased value and deepens customer loyalty, opening up business opportunities in specific industry sectors and with internet-based service providers and content owners. Further opportunities are expected from clients in industry sectors that handle massive numbers of connected devices. Network operators have unique and valuable assets in their customer relationships, both financial (through billing) and in real-time knowledge of user activities. In addition, mobile network operators also benefit from connections to individual user devices and knowledge of their locations, rather than only to fixed homes or businesses. All of these can be used to build operator value as part of wider value chains. The network should be designed to optimize the Total Value of Ownership (TVO), based on the financial return from network investments over a period, by providing capabilities to both drive increasing revenues and reduce costs.

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 QoE. By being scalable, smart and built for superior performance, fourth-generation networks can help an operator achieve its business objectives and maximize TVO.

Scalable

Networks must scale over time in several dimensions: changing traffic volumes, the connection of many more devices, highly active application behavior and increased bit-rate coverage (defined as high bit-rate delivery to individual users in coverage areas). Although there are challenges associated with such growth factors, they represent a significant opportunity for innovation, repositioning and profit. The basic requirement is to deliver information where and when it is needed. Scaling for this includes building geographical coverage for mobile and fixed network access and providing sufficient capacity to satisfy changing usage patterns in each location.

The wide range of today's services, from telemetry to video, makes this more challenging than delivery of more predictable voice and simple messaging services.

Smart

Networks should make the best use of both mobile and fixed access and select the most appropriate paths through the network, for either high-touch processing or low-latency "express" delivery. The network control systems should also provide dynamic, real-time control of network resources to ensure maximum efficiency. An operator can win a trusted role in content-delivery value chains through in-band monitoring and manipulation of traffic, together with charging and billing systems that exploit the user-perceived value of high-performance delivery and of specific items of quality content. These smart capabilities are based on network "awareness" of mobile and fixed users, user subscriptions, user preferences, terminals, location, access characteristics, service and content characteristics and network load.

Superior performance

The network design must focus on perceived end-user service quality. Some 25 percent of customer churn can be attributed to poor network performance. Other aspects of a quality service include easy service purchase, simple service access and good customer support.

Users primarily perceive excellent quality of experience and premium value through performance that is noticeably better than other services, in terms of availability, integrity (for example, latency and bit loss) and security. Performance can be differentiated for tiered user pricing models and to add value through guaranteed delivery of specific over-the-top (OTT) services or content. Good service performance can increase customer willingness to pay a premium and reduce support costs and customer churn. Network operational support staff also benefit from high-performance support systems that streamline network provisioning, service fulfillment and service assurance.

The most important design principles include taking a holistic perspective to avoid suboptimization, including sufficient enabling functions and ensuring that these can then be activated by operational support and policy-control systems. So, although network designers face a changing and challenging environment, the network is truly a strategic asset that can continue to grow future value for the operator.