Telkom Sa Soc Ltd. · JSE:TKG
Telkom Sa Soc — Telkom — Investor Day (April 2007)
63 slides from Telkom Sa Soc's investor day presentation, Apr 5, 2007
Slide 1: Telkom SA Limited Analyst Day Presentation
Telkom SA Limited Analyst Day Presentation March 8, 2007 The NGN Explained
Slide 2: Cautionary statement on forward looking statements
Cautionary statement on forward looking statements All of the statements included in this presentation, as well as oral statements that may be made by us or by officers, directors or employees acting on behalf of us, that are not statements of historical facts constitute or are based on forward-look
Slide 3: Agenda
Agenda Traditional and New Wave Revenue Steven Hayward Managing Executive: Retail Marketing 11:30 - 12:30 Support Systems for the Future Motlatsi Nzeku Chief Information Officer 10:00 - 11:00 Next Generation Networks Pierre Marais Managing Executive: Network Infrastructure Provisioning 08:30 - 09:30
Slide 4: Next Generation Networks
Next Generation Networks Pierre Marais Managing Executive: Network Infrastructure Provisioning
Slide 5: The Telkom NGN architecture
Customer WDM NG-SDH & SDH ATM Service Enablers Media & Applications OSS & NGOSS IP Network Transport Core Enterprise Market IT Market Mass Market Wireline Telco Wholesale Market Wireless NGSDH & Metro WDM Transport core Backhaul Metro Ethernet ATM Performance Core High Speed, Reliable Intelligent Ed
Slide 6: Core of NGN - Carrier
Core of NGN - Carrier IP / MPLS and Metro Ethernet/ MPLS networks Resilient , fast and optimized transmission architecture built on NG-SDH . Quality of Service enabled and engineered to support performance SLAs IPNet is secured via SBC’s, Secure Peering Edges, Carrier of Carriers and associated secu
Slide 7: Sophistication required in the access using an IMAX
Sophistication required in the access using an IMAX The PSTN is connected to the NGN core via media gateways An NGN service segment adds intelligence : session control, call handling elements include Softswitch, SSC, Service platforms, etc. Products supported by NGOSS architecture employing COTS, BP
Slide 8: NGN Strategy - Delivers Real Advantages
Limits future Opex Protects against impact of disruptive technologies Allows converged service offerings NGN Strategy - Delivers Real Advantages Rationalisation of multiple legacy technologies to NGN platforms Through increased speed to market flexibility afforded by common platform i.e. Telco’s now
Slide 9: IP makes convergence happen
Single sign-on Access Agnostic Simplified Converged Applications … ENDPOINTS SESSION APPLICATION ERP over Data Voice (PSTN) … Content & Broadcast Unified data & customer view IP makes convergence happen SUPPORT SYSTEMS NETWORK Voice (Mobile) All IP full service architecture Technologies facilitating
Slide 10: Speed of migration depends on business drivers and market demands
Speed of migration depends on business drivers and market demands Evolution Revolution Turn off the PSTN by a final date e.g. BT, Telecom Italia Customers gradually migrate from the PSTN to the NGN e.g. Telkom Alternate strategies
Slide 11: Cost saving opportunities
Cost saving opportunities Collapsed network creates opportunities across the value chain Planning Engineering Procuring Installation Maintenance Support Extra capacity on legacy to be used as spares Retirement of targeted legacy infrastructure
Slide 12: NGN roadmap milestones
Metro Ethernet Deployment Initiated DSL rollout accelerated VoIP portfolio developed Soft Switch First Office Application (FOA) Strategic Access components finalized VoIP FAB solution development commenced WiMAX First Office Application (FOA) NGN Plan Review OSS Integration partner selected Next gen
Slide 13: Access wireline - major initiatives
Access wireline - major initiatives Radically upscale availability of ADSL Introduce ADSL2/2+, high speed access Introduce NGN Leased Lines to market (supported by SHDSL) Increase Fibre to the Node (FTTN) and Curb (FTTC) roll-out Deploy IMAX’s Residential market Corporate market General benefits
Slide 14: Preparing the Access Network for high bandwidth requirements
NG-SDH ME on 40Km possible PON The future: fibre optic to achieve rates in excess of a Gbit/s Preparing the Access Network for high bandwidth requirements Minimum speed of “up to 10 Mbit/s” for copper wireline – where economical Fibre optic to be provided closer to customer to increase speed of exis
Slide 15: Transport Initiatives - Quality, Speed and Intelligence
Replace Fibre to increase quality Will facilitate higher speeds in the core Add G/MPLS intelligence to the Fibre network for routing optimization and back-up route creation Will increase resiliency (SLAs) until 3rd back-up path created Oversubscribed bandwidth used as cost effective best effort serv
Slide 16: Telkom Local and National Network
Telkom Local and National Network Port Elizabeth Capetown Bloemfontein Durban Pretoria Johannesburg Nelspruit Polokwane Rustenburg Upington Mtunzini Melkbos Strand Kimberly Bethlehem Meyerton Vereeninging SAT-2 SAT-3 SAFE Mtunzini 10 Gbit/s capable NG-SDH deployed from 2006 – 2009 (160Tbit/s total c
Slide 17: The Proposed Network Solution
Regional Network Regional Network Regional Network Regional Network The Proposed Network Solution Primary Telkom Regional Exchange FIFA Stadium IBC Telkom Carrier Room at FIFA Venue Indirectly Related Infrastructure Directly Related Infrastructure National Network Regional Network Regional Network
Slide 18: IP Network – Quality of Service
IP Network – Quality of Service IPNet - QoS and MPLS enabled since 2003 Cisco based with CPN Status 2nd worldwide operator to achieve Cisco Multi-Service VPN QoS certification Edge nodes increasing to 25 (16) to expand footprint and enhance regional redundancy To migrate to ‘carrier supporting carri
Slide 19: Creating a Consolidated IP Network Infrastructure
Creating a Consolidated IP Network Infrastructure IPNet functionality enhanced session border controllers and secure peering edges TIENet and TMNet started migration in 2006 and will complete in 2009 Currently a converged VPN known as T.Net has been created to facilitate this Telkom will develop a C
Slide 20: IP Network International
IP Network International Telkom’s International IPNet Comprises an International network of LIR (2) and DIRs (6) International bandwidth currently exceeds 2 GBit/s
Slide 21: NGN Services Segment (SS)
NGN Services Segment (SS) - Services independent of network Existing IPNet services segment to evolve to NGN services segment Will connect directly to Metro Ethernet Facilitate services such as VoBB, Triple Play, WiMaX access to Internet etc. Integration allows for a single point of session control
Slide 22: Predicted “NGN-ised” services by 2011
Predicted “NGN-ised” services by 2011 Based on planned Capex programme New Service Growth Migration of Legacy Services (Data and partial Voice )
Slide 23: NGN Challenges
NGN Challenges Vast array of NG technologies to choose from Migration of customers from legacy technologies and recovery of obsolete equipment Product evolution from circuit switched products to packet based products Security threat of IP Next Generation Operational Support Systems Quantity and qual
Slide 24: Conclusion
Conclusion Strategy Evolutionary approach Provide bandwidth capacity Provide for growth through new services and applications Replacement of legacy technologies Selective modernization Targeted retirement 2010/11 Goals Attain an ICT-capable NG Network Generate incremental revenue growth by convergin
Slide 25: Support Systems for the Future
Support Systems for the Future Motlatsi Nzeku Chief Information Officer
Slide 26: The Services dependence on OSS/BSS
Transport Networks BSS Access Networks (Wireless and Wireline) OSS Service Enabling Networks (IP Network/Softswitch/PSTN/OSP) Successful network evolution achieved through focus on the entire ‘dependency pyramid’ Infrastructure and ancillary systems i.e. energy, cooling, space, copper, fibre and spe
Slide 27: Why NG-BSS / OSS?
Revenue Protection Revenue Generation and Growth Managing Costs Why NG-BSS / OSS? Telkom Drivers By facilitating a better customer experience, self-service capability and converged services By enabling new revenue generating services to be launched more quickly By providing the capabilities to manag
Slide 28: Current OSS / BSS Programme
Customer Centricity and efficiency Optimisation of Asset Utilisation Current OSS / BSS Programme Customer Relationship Management Unified view of the customer Order Management Unified fulfilment capability Fault Management Fault resolution, quality management and control Network and Service performa
Slide 29: Fulfillment, Assurance and Billing (FAB)
FAB Fulfillment, Assurance and Billing (FAB) Interface to customers / consumers CSB, Call Centre, Online, etc. CRM Clarify 12 PC MC NI Order Execution CBS & Unibase Billing Flex, Infranet, SAP Service Assignment SAM / Cramer Network Core & Access Test Mgmt Taskmate Order Entry OMS Trouble Handling C
Slide 30: Create a future-proof environment
Create a future-proof environment Strategic framework - New OSS & BSS solutions Evolutionary development and deployment Ongoing need for automation, business process improvement and customer support Will integrate with current solutions The transition plan Modular subsystems releases (typically bi-a
Slide 31: NGOSS Current status
NGOSS Current status NGOSS Phase 1 – in execution Software products selection Time lines Architecture blueprint Statement of work for Phase 2 Approach to implementation NGOSS Phase 2 – to be activated Integration and implementation of NG OSS/BSS over a number of years Executed by international and w
Slide 32: Example of NGOSS high-level overview
Self Help CRM Clarify 12 OMS AMDOCS 6 Clear Support Clarify 12 Billing AMDOCS 6 Flexibill ESB/WebSphere Quallaby Provisio Cramer Smallworld MetaSolv Axiom NetCracker TTI Service Service Charging AMDOCS 6 MicroMuse Service Delivery Platform DW Reports Provisioning Controller Amdocs 6 MicroMuse ESB/We
Slide 33: Key Challenges
Key Challenges Integration effort and complexities between existing and new NG OSS/BSS solutions Alignment of current business demands with the NGOSS programme Global availability of skilled IT resources Regulatory challenges
Slide 34: Conclusion
Conclusion Migration to NGN is imperative NGN enabled service already delivering substantial results (e.g. broadband and VPNs) Significant NGN services in development, many to be introduced during the 2008 financial year Selective investment and migration to an NGN business is the key to future succ
Slide 35: Traditional and New Wave Revenue
Traditional and New Wave Revenue Steven Hayward Managing Executive: Retail Marketing
Slide 36: Overview
Overview Business drivers towards a new generation business Convergence at work Customer Demand in the South African Market Telkom evolving to a full-service ICT solutions provider Broadband and VPN successes prove the future of NGN Services
Slide 37: Compelling value propositions to all customer segments across ICT value chain
Compelling value propositions to all customer segments across ICT value chain Business drivers Customer requirements changing rapidly Adoption of broadband Packet based products and services Self-service Convergence Industry Voice-data Fixed-mobile Intensifying competitive landscape Combat erosion o
Slide 38: Driving Convergence
IP-PBX IP-PBX Telco expands out IT/Broadcasters/ISP’s/VAN’s etc expands in Voice Data Video IT Systems IT Systems Voice Data Video Source: Ovum Driving Convergence
Slide 39: Convergence: The world continues to change
FROM TO Convergence: The world continues to change At home In business On the move In leisure For our customers’ customers Empowering our customers and their customers for their benefit to connect with whomever and whatever they want, whenever, however and wherever they want. Seamless control and ac
Slide 40: “New Wave” architecture – a global trend
Content & Applications Control & Service Capabilities Connectivity / IP Packet Transport Standards/ Technologies Available with IP, IMS, SIP, 3Gr6 “New Wave” architecture – a global trend Spaghetti vertical silo integration Lasagne horizontal service layer Standardised billing infrastructure Reduce
Slide 41: How will service providers evolve?
Infrastructure Rationalization Services Bundling Customer Centricity Services Expansion Applications Integration 2002 2006 2008 2004 Cost Containment Customer Centricity Services Expansion How will service providers evolve? (Mapping to international trends) Source: The Yankee Group, 2003 Business fo
Slide 42: RSA revenue forecast
RSA revenue forecast Total internet access revenues Source: BMI-T, 2005 Total data market revenues 2005 & 2010 RSA revenues from MDNS and retail leased lines
Slide 43: RSA VoIP / VoBB Services Revenue Forecast
Business Residential RSA VoIP / VoBB Services Revenue Forecast 2005 2007 2008 2009 2010 2006 Source: BMI-T, 2006 BMI-T forecast indicate the RSA VoIP market expects strong growth, albeit from a small base
Slide 44: South African Entertainment and Media Spend
South African Entertainment and Media Spend (2001 – 2010) 13% 9% Source: PWC Global Media Outlook, 2006 CAGR%
Slide 45: Growth - selected international IPTV launches
Growth - selected international IPTV launches yr0 yr1 yr2 yr3 yr4 yr5 Homechoice Freebox MaLigne Now Broadband Fastweb Note: Homechoice launched 2000, Fastweb launched 2001, other services launched 2003 Source: Spectrum analysis, Screen Digest
Slide 46: South African Hype Curve of Service Offerings
South African Hype Curve of Service Offerings Less than 2 years 2 to 5 years 5 to 10 years More than 10 years Here today Plateau of productivity Slope of enlightenment Trough of disillusionment Peak of inflated expectations Technology trigger Speech Recognition for Telephony Enterprise / VPN VoIP Vi
Slide 47: Significant Data Service Migration - Telkom
2006 2010/2011 2007/2008 Significant Data Service Migration - Telkom Diginet ATM Ethernet DSL FR WiMAX Time
Slide 48: Significant Voice Service Migration - Telkom
Time 2006 2010/2011 2007/2008 Significant Voice Service Migration - Telkom PSTN VoIP Portability & nomadicity Next generation voice
Slide 49: Telkom is developing various portfolios of new products
Telkom is developing various portfolios of new products and next generation versions of existing products NGN enabled service transformation and new innovation Impacts to customers New IP based applications and services being developed Improved customer experience: Self-service Flexible billing and
Slide 50: Key NGN enabled products and services
Key NGN enabled products and services Broadband access Targeted at various customer segments and applications Telkom T-Zones WAN and LAN Services IP VPN (VPN Supreme) Enterprise wireless LAN Voice over IP (VoIP) Voice over Internet (TI Communicator) Voice over BB Hosted Enterprise IPT (hosted IP PBX
Slide 51: Key NGN enabled products and services (cont)
Key NGN enabled products and services (cont) Content and Video Music on Demand Gaming Video on Demand IPTV Collaboration Mobile Email Web Conferencing
Slide 52: Key NGN enabled products and services (cont)
Each product developed according to market demand, competitive drivers and internal financial criteria Key NGN enabled products and services (cont) International Wholesale NGSDH offering STM 4 (622 Mbit/s) – STM 64 (10 Gbit/s) International Private Leased Services Temporary international Broadcast s
Slide 53: Telkom is delivering an exciting future
Telkom is delivering an exciting future NGN Enabled Products & Services Enhanced Voice and Messaging Services Triple Play Video Telephony True Unified Communications Personalised Services Presence Find Me, Follow me Fixed Mobile Convergence Billing Convergence Postpaid / Prepaid profiles on one acco
Slide 54: Growth engines: calling plans
Telkom will exploit the need for fixed lines with bundles of voice minutes through calling plans such as Telkom Closer and SupremeCall Growth engines: calling plans Telkom Closer 200,000 customers end October 2006 Enhanced with per second billing on Mobile 1 November 2006 Bundles with DSL to improve
Slide 55: Business Voice – Strategy Overview
Business Voice – Strategy Overview Solutions Customised PSB options Generic PSB solutions SupremeCall CellSaver Calling Plans Segments Global Government Corporate Large Business Medium and small enterprises Win back and retain Loyalty Retain Strategy
Slide 56: Enterprise Voice Strategy – Defend and Grow
Enterprise Voice Strategy – Defend and Grow Strategic Objectives Lead with volume and term value based pricing plans and bundles Differentiate and deliver unique value propositions to each sub- segment portfolio Extensive R & D focus on NGN products Integrate Legacy & NGN products to provide a “hybr
Slide 57: 2011 broadband vision
Up to 4Meg Legacy TDM network Stand alone access, voice and internet value propositions Limited content Complex installation Up to 10Meg 3 rd Generation IP network Integrated communication and entertainment Interactive IPTV and HDTV “Better than” content strategy Simplicity of use – plug and play br
Slide 58: Broadband Retail strategic objectives
To remain the leading Broadband provider in South Africa Broadband Retail strategic objectives Differentiate on quality and speed Develop innovative pricing and bundling options to reduce barrier to entry and increase value proposition rather than reducing market level price Bundling of broadband ac
Slide 59: Broadband portal
Broadband portal
Slide 60: WiMAX - Fixed Broadband Wireless Access
WiMAX - Fixed Broadband Wireless Access Complimentary to the DSL footprint in peri-urban and rural areas (DSL “Up to 512 kbps” look-alike) High speed Internet access Backhaul from T-Zone Hot Spots Access to VPN services Access for special events Best effort Leased Line replacement Campus environment
Slide 61: VPN Supreme – Unit Growth
VPN Supreme – Unit Growth 355% unit growth over the past 18 months Expected growth to continue in 2007 / 2008 Fully managed solution Availability SLA Performance SLA Managed Services Portal (MSP) – Live online reporting Monthly performance reports Only IP-VPN product in South Africa to be QoS Certif
Slide 62: Defend the old – Grow the new
Defend the old – Grow the new Conclusion NGN is the enabler to grow new wave products and enter new markets BT Case Study (11 October 2006) New wave turnover 38.1% Generates 32% of turnover New wave is 2.6 x decline in traditional revenues Vigorously defend the traditional revenues with value based
Slide 63: Investor Relations contact
Nicola White Investor Relations telkomir@telkom.co.za Tel. +27 12 311 5720