Presentation on theme: "Winning Business With North American Carriers and Suppliers"— Presentation transcript:
1 Winning Business With North American Carriers and Suppliers Michael ZammitManaging DirectorO:M:Prepared For:
2 Agenda Who is Telcordia? US Market Opportunities What does it take to WIN business in North America?Telcordia Solutions & Support
3 Telcordia: Network & Product Integrity (NPI) NPI Has Been Core Competency For Decades 50+ year history of Leadership in TelecommunicationsBellcoreFormerly1960s19842012Acquired Granite Software SystemsWe are part of Bell Labs within AT&TBreak-up of Bell System BELLCORE created to providing R&D support for the RBOCsAcquired by SAICNPI enables use of optical fiber to replace copper in the local loop.Enable FTTP rolloutsIntegration with EricssonRenamed Telcordia TechnologiesNPI Expansion into Global MarketsNPI Supports Global Optical DeploymentsBusinessProvidence Equity and Warburg Pincus acquire Telcordia 3/15/05Risk Assessments: Network Security & SafetyHandles all 800-number calls in the USEnables DSL rolloutCreating Telecom OSSDevelops call waiting, call forwarding, and caller IDNetwork Transformation SolutionsRisk Assessments and NEBS TestingKey Lab for Verizon GPONTested Bell System developed technologiesTechnologyIssue 1 of Key Optical GR’s GR-20, GR-326 GR-1209/1221Delivers managed IP solutionDevelop Carrier M&Ps to support FTTx DeploymentCertification of Passive Optical Components & Factory AuditsNew Optical GRs & Test Programs 10G/40G/Wireless BackhaulSafety testing a high priorityProviding network product and integrity services for over 50 years
4 Telcordia NPI Team Members Gain a competitive advantage by leveraging Telcordia expertise to help design, certify, integrate and deploy superior quality products and solutions.Staff ProficiencyOptical transmission & measurementsMechanical/Environmental/NEBS TestingMaterials Science, Chemical/Electrical ProtectionKnowledge of Global Industry Standards(TIA, ATIS, Verizon TPRs, IEC, ITU)US National Safety codes & Listing (NEC, NESC, NFPA, UL etc…)Areas of Expertise:Product design & manufacturingTesting methodology (Key Lab for Verizon, AT&T and other global carriers)Product Certification: Features, Functions, and Performance QualificationFailure analysis – product & field/deployment related failuresExpert Testimonial (Litigation Support)OSP network design & engineeringPhysical plant construction & maintenance (aerial, underground)Deployment methods & procedures – OSP/residential/MDU/EnterpriseWorker and Product Safety
5 Over 1,000 customers around the world Telcordia’s Global Customer BaseTelcordia’s diversified, global client base defines the future of the telecom industryTPSATWCEmbarqFairPointRelianceEmbratelGlobal ManufacturersOTEAircelOver 1,000 customers around the world5
6 A Few of Our Recent Customers Domestic CarriersVerizon, AT&T, Centurylink, Comcast, Time WarnerSupplier Customers:North AmericaAsia/Pacific3M, ADC, AFLDaewonSamsungBerkTekGo!FotonSterliteCommscopeHuaweiSUNSEACorningILJINYOFCCustom CableLS CableZTEEmersonEXFOFEIEuropeGeneral Cable Corp.Alcatel-LucentJDSUDexgreenOFS/FitelEricssonRCS Wire & CableOscilliquartzSuperior EssexPrysmain/DrakaSymmetricomRoyal DSM, N.V.TE Connectivity
7 Agenda Who is Telcordia? US Market Opportunities What does it take to WIN business in North America?Telcordia Solutions & Support
9 US Broadband Market Current US Statistics Broadband subscribers by CompanySource: GIGAOMPercent Share of Annual Subscriber GrowthCurrent US StatisticsNearly 90 million broadband subscribers30 million DSL subscribers50 million DOCSIS Cable modemsAging Telco infrastructure is stimulating investment in FTTHAdvanced Services & LTE/4G rollout require more fiber deploymentAccording to the FTTH Council US companies deploying FTTP
10 Trends in U.S. Broadband Efforts Top 10 service providers control 85% market shareLess than 10% of US Broadband subscribers are FTTxTelco providers loosing market share to the cable TV providersVZ/AT&T FY12 CAPEX outlook of US $45B12% of Global CAPEX and 65% of total US CAPEX spendingBut, Wireline CAPEX down about 10%At peak GPON deployment, VZ CAPEX was over $10B alone.Shift in CAPEX to wireless backhaul, cloud/data center build-out, targeted revenue generation (eg. MDU deployments)US Government – US $7.2B in broadband stimulus fundingSeveral hundred Tier 2 & 3 service providers, municipal systems, and middle mile providers (focus on digital divide)Network construction is just starting for many of these companiesSome restrictions on Buy-America for public systems
11 US Carriers Focus on Total Life Cycle Cost Ford Motor Co. - “Quality is Job 1”OSP network must last years!99.999% reliability for landline voice servicesSteep FCC penalties for network outagesUniversal service requirementsHighly competitive market, high customer churnCritical focus to reduce installation and maintenance costsUS Labor costs very high.Reduce complexity of products & deploymentLower skilled, lower cost techniciansImprove accuracy of installationReduce costly service calls – US $150/hr to roll a truckProduct price is NOT the only consideration
12 Agenda Who is Telcordia? US Market Opportunities What does it take to WIN business in North America?Telcordia Solutions & Support
13 China Has Brought Excellence to the US Telcordia is a leading global provider of telecommunications software and services. Our market leadership is demonstrated by our heritage, our offerings, and our people.We have helped to architect the network and operations infrastructure in the USA, dating back to the introduction of TIRKS® in 1968, as one of the very first resource management systemsToday, our software handles 80% of the fixed access lines, 100% of the toll-free traffic, and 90% of the wireless number portability market in the USAOur annual sales of approximately US$900 million is a signal of our market strength and ability to invest in our futureWith approximately 2,900 employees in 21 offices in 11 countries, we can scope and deliver on transformation programs around the globeTelcordia has signed more than a dozen customers since launching its Hosted Solution for MVNOs in 2005 (starting with Movida and including Disney Mobile, kajeet, Flying J, Total Call and other leading brands). Virgin Mobile USA – the industry’s first MVNO, uses our system as well but has licensed it directlyOur number portability deployments include: the USA, Canada, Greece, Lithuania, Saudi Arabia, Pakistan, Oman, and EgyptOur research patents demonstrate our heritage in delivering world class innovation in ADSL, ATM/SONET, AIN, optical networking/WDM, wireless (3/4G, Bluetooth®, cellular, mobility), and securityWe facilitate and author the generic requirements that provide for the integrity and interoperability of telecommunications equipment, systems, and servicesWe maintain software quality certification in ISO 9001 and TL 9000
14 Bringing Excellence to the US Market China also brings excellent optical products to the US!Telcordia is a leading global provider of telecommunications software and services. Our market leadership is demonstrated by our heritage, our offerings, and our people.We have helped to architect the network and operations infrastructure in the USA, dating back to the introduction of TIRKS® in 1968, as one of the very first resource management systemsToday, our software handles 80% of the fixed access lines, 100% of the toll-free traffic, and 90% of the wireless number portability market in the USAOur annual sales of approximately US$900 million is a signal of our market strength and ability to invest in our futureWith approximately 2,900 employees in 21 offices in 11 countries, we can scope and deliver on transformation programs around the globeTelcordia has signed more than a dozen customers since launching its Hosted Solution for MVNOs in 2005 (starting with Movida and including Disney Mobile, kajeet, Flying J, Total Call and other leading brands). Virgin Mobile USA – the industry’s first MVNO, uses our system as well but has licensed it directlyOur number portability deployments include: the USA, Canada, Greece, Lithuania, Saudi Arabia, Pakistan, Oman, and EgyptOur research patents demonstrate our heritage in delivering world class innovation in ADSL, ATM/SONET, AIN, optical networking/WDM, wireless (3/4G, Bluetooth®, cellular, mobility), and securityWe facilitate and author the generic requirements that provide for the integrity and interoperability of telecommunications equipment, systems, and servicesWe maintain software quality certification in ISO 9001 and TL 9000
15 Trends in U.S. Purchasing Pattern The high quality and low cost of products from non-U.S. manufacturers are very attractive to U.S. Carriers
16 Does the Trend Represent OPPORTUNITIE$$? The buying trend offers TREMENDOUS opportunity to international manufacturers BUT not all will be successful! Companies MUST understand the U.S. market and position products properly to be successful and gain U.S. market share.
17 Network and Product Integrity Market Forces That Must Be Met Carriers need:Innovative, cost effective solutions to meet competitive market forces and subscriber expectationsManufacturers need:Knowledge of Carrier RequirementsProduct differentiator to gain a competitive advantage in the marketDelivery ExcellenceEnterprise customers need:High performance and efficient networksSupport to implement new network capabilities
18 Challenges for International Manufacturers in the U.S. Market How do we know what the U.S. Requirements are for our products?How do we determine in the pre-production phase of the development cycle if products will meet these requirements?How do we demonstrate that our products meet U.S. performance & quality needs?How do we get the attention of U.S. Carriers?How do we respond effectively to U.S. Carrier RFPs?
19 Understanding Product Requirements Don’t assume that a product made for other markets will meet U.S. Requirements.Requirements for U.S. Carriers are well-defined and specific Largely based on Telcordia “Generic Requirements” but sometimes they may deviate in subtle ways.There are HUNDREDS of “Generic Requirements” documents and it is challenging to find the specific requirements for a given product or application!Correlation with a specific GR is not always so straight forwardProduct requirements may come from more than one GRProper interpretation of GR criteria is criticalBoth Suppliers & Carriers assist Telcordia in developing and have access to these “Generic Requirements”Lower you risks significantly by gaining detailed knowledge on the “Generic Requirements” used by YOUR customers!
20 Common GR Documents for Optical Fiber, Components & Products Cable & ConnectorsGR-20, Optical Fiber & Outside Plant Cables (*Update coming in 2012!)GR-409, Indoor Optical CablesGR-1209, Passive Optical Components (* Updated in 2010)GR-1221, Component Reliability Assurance (* Updated in 2010)GR-326, Single Fiber Optical Connectors (* Updated in 2010)GR-1081, Field Mountable Optical ConnectorsGR-1435, Multifiber Optical ConnectorsGR-3120, Hardened Single Fiber ConnectorsGR-3152, Hardened Multi-Fiber ConnectorsGR-2866, Optical Fiber FanoutsGR-3172, Active Optical Cables (New in 2012!)GR-3173, Composite Optical Cables for Wireless tower applications (New in 2012!)Splice Closures, Terminals, Fiber Distribution HubsActive ComponentsGR-418, Generic Reliability Assurance Requirements for Fiber Optic Transport SystemsGR-468-CORE, Generic Reliability Assurance Requirements for Optoelectronic Devices Used in Telecommunications EquipmentGR-1312, Optical Amplifiers and Proprietary DWDM SystemsSR-332, Reliability Prediction Procedure for Electronic EquipmentGR-771, Splice ClosuresGR-3123, Indoor FDHGR-3125, Outdoor FDHGR-3161, MDU TerminalsGR-950, FTTx ONU ClosuresGR-487, Electronic Equipment CabinetsGR-449, Fiber Distribution Frames (*Updated in 2012!)
21 There are MANY more GRs! Coaxial Cable Wire & Cable Products Connectors & SplicesPedestals and Equipment EnclosuresBuilding Entrance Terminals (BETs)Concrete Shelters, Vaults, HandholesNetwork Interface Devices (NIDs)Terminal BlocksCATV Broadband Distribution ComponentsNetwork Protection and GroundingRFI FiltersField Test Sets
22 Typical GR for a “Component” Unlike other Global Standards, each Telcordia GR contains very detailed functional requirements, test procedures, sample configuration,and performance criteria levels.Fundamental RequirementsDocumentation, Packaging & ShippingBasic design features, IntermateabilityProduct labels, markings & packagingService Life RequirementsInstallation and handling stressesNormal Stresses during the operational life of the productOptical, Mechanical & Environmental Performance CriteriaExtended Reliability RequirementsEvaluate performance of product design & materials over timeTemperature/Humidity Aging – how to accelerate testing?Chemical, UV, Water Exposure, Dust & Other ContaminantsReliability and Quality Assurance ProgramReliability Assurance Requirements PhilosophyOverview of Reliability AssuranceQualification CriteriaQuality and Reliability Criteria
23 Navigating through requirements Telcordia Roadmap to Generic Requirements (GR)Technologies: A Free Guide to the Collection of 150+ GR Technical DocumentsROADMAP-TO-AIN-1, Telcordia Roadmap to Advanced Intelligent Network (AIN) DocumentsROADMAP-TO-CLASS-1, Telcordia Roadmap to CLASS Feature DocumentsROADMAP-TO-CUSTOM-CALL-1, Telcordia Roadmap to Custom Calling Services DocumentsROADMAP-TO-FIBER-1, Telcordia Roadmap to Fiber and Optical Technologies DocumentsROADMAP-TO-LIDB-1, Telcordia Roadmap to Line Information Database (LIDB) DocumentsROADMAP-TO-NEBS-1, Telcordia Roadmap to NEBS DocumentsROADMAP-TO-NGN-1, Telcordia Roadmap to Next Generation Network (NGN) DocumentsROADMAP-TO-OP-SVCS-1, Telcordia Roadmap to Operator Services DocumentsROADMAP-TO-RELIABILITY-1, Telcordia Roadmap to Reliability Documentshttps://telecom-info.telcordia.com
24 North American Standards for Optical Fiber & Optical Fiber Cable North American Customers may have additional requirements:Additional Verizon TPRs (largely based on the Telcordia GRs):TPR.9424, Optical MDU Drop CablesTPR.9441, Bend Optimized Performance FiberTPR.9442, Optical Fiber MicroductsTPR.9459, In-living unit Optical CablesTPR.9460, Multimode Fiber RequirementsTPR.9462, Blown Optical Fiber CablesTPR.9445, Manufacturing Quality & Production Audit RequirementsCable TV & Tier 2 Carriers sometimes use the following:ANSI/ICEA S , OSP Optical Fiber Communication CablesRUS BULLETIN 1753F-601a, Optical Cables (Backbone, Feeder, and Distribution Cables)RUS BULLETIN 1753F-601b, Optical Cables (Subscriber Drop Cables)
25 Challenges for International Manufacturers in the U.S. Market How do we know what the U.S. Requirements are for our products?How do we determine in the pre-production phase of the development cycle if products will meet these requirements?How do we demonstrate that our products meet U.S. Requirements?How do we get the attention of U.S. Carriers?How do we respond effectively to U.S. Carrier RFPs?
26 Raise the Confidence of your Customer! US Carriers expect products to last years!Traditional suppliers are the ‘trusted advisors’Raise the confidence of your customers by demonstrating that you have the ability to compete on price, performance, and quality.Foreign supplier challenges:No brand recognitionNo track recordPerception may be low qualityKnowing the requirements is speaking the language
27 Certifications Quality Management System Testing Laboratory Pre-production or prototype testingProduct CertificationManufacturing Facility Audit
28 Key Offer: Laboratory Audit & Certification Telcordia will review, analyze, and certify supplier laboratory test capabilities.Objective: Determine if the supplier lab has the capability and proficiency to perform the complex test programs required to properly qualify passive optical components against Telcordia Generic Requirements and other product specifications such as IEC, ICEA, and RUS standards.Method: A Telcordia optical test expert will perform a detailed on-site review and assessment of your laboratory infrastructure, your operating procedures, and evaluate staff qualifications. Telcordia has many years of expertise writing GR specifications for optical components and we operate our own state of the art testing laboratory in the US. Telcordia will leverage this deep knowledge and expertise in optical component testing to help you become more efficient and proficient in performing these highly complex test programs.Improve the EFFICIENCY and PERFORMANCEof your LaboratoryImprove the accuracy and reliability of your test resultsImprove lab efficiencyEnhance R&D and product development capabilitiesReduce lab operating costLevel the playing field with your competitorsRaise customer confidenceTelcordia certification of a supplier laboratory will allow you to demonstrate to your customers that you have the required measurement equipment and capabilities, proper lab procedures, and a well trained staff.
29 Key Offer: Prototype Design Verification Telcordia has authored product specifications (Telcordia GRs) for over 30- years.We understand carrier needs and expectations and can anticipate whether a product will be well received by your customer.Do not loose site of the importance of proper packaging, labeling, and user instructionsCraft interaction, ease of assembly, operation, maintenance is also quite importantTelcordia has tested numerous PFOC products from every leading global manufacturer.Telcordia Red Flag Test ProgramRed Flag program includes abbreviated testing against critical GR performance criteriaAccelerate your product development scheduleLow cost, efficient, and effective way to assess pre-production conformanceIdentify any possible product design issues prior to the start of certification testingResolve key design issues before presenting your product to your customersApproximately day durationWe recognize likely failure modes resulting from material selection, poor design choices, assembly issues, and craft interaction – before you go to Production!
30 Key Offer: Product Certification Telcordia design review & certification will raise the confidence of your customer and give you a marketing advantage.US Carriers are very familiar with the lab testing capabilities of the major global manufacturers. But they are skeptical with unknown, smaller new entrantsTelcordia can help level the playing field by providing a comprehensive set of testing services that is highly respected by North American carriersTelcordia provides not just “testing”, but industry expertise in a wide-range of technologies to provide analysis of test strategies, test configurations, test criteria, test scope, test failures, etc.In some cases Telcordia is able to witness testing at the Supplier’s facility. This requires Telcordia review and approval of supplier capabilities prior to the start of testing.Suppliers can leverage this core competency of Telcordia and give their prospective carrier customers “confidence” in their products/solutionsTelcordia branded test reports are a valuable marketing tool which can be used to show the commitment you have to meeting your customers requirementsTelcordia is an accredited, Independent Test Laboratory (ITL)
31 QMS & Manufacturing Facility Audit Key Areas of QMS Review:Procedures / Test Plans / RequalificationVendor Qualifications / Approval / Vendor-Supplied DataRecordsResultsInternal Audits / Corrective ActionsTrainingCustomer Issues / Field ReturnsManufacturing Facility AuditDesign / initial qualification testingReceiving / receiving inspectionProduction process / process capability / process controlsIn-process inspection (visual/mechanical)In-process testing (electrical/functional)Storage and handling practices / environmental conditionsEquipment maintenance / calibrationNonconforming material process / field issuesFinal testingPackaging and shipping practices Raise the confidence of your customer by demonstrating the capacity to consistently provide high quality products.
32 Tested By Telcordia Laboratory Accreditations: ISO 9001:2008 The Tested by Telcordia logo identifies products that have undergone a thorough testing and analysis program conducted by Telcordia.Laboratory Accreditations:ISO 9001:2008TL 9000® standardsISO 17025Verizon Certified Independent Test Lab
33 Challenges for International Manufacturers in the U.S. Market How do we know what the U.S. Requirements are for our products?How do we determine in the pre-production phase of the development cycle if products will meet these requirements?How do we demonstrate that our products meet U.S. Requirements?How do we get the attention of U.S. Carriers?How do we respond effectively to U.S. Carrier RFPs?
34 Making First Contact What is your US presence? Branch officeStrategic PartnerDistributor or Product RepRarely is there a single decision makerMany carriers implement a cross-functional approach to product selection.Network Solutions/TechnologyNetwork Planning & EngineeringNetwork ConstructionProcurement/PurchasingMany US carriers purchase SOLUTIONS not components!
35 Key Offer – Engage Carriers Directly Develop and sell products to the U.S. Market and gain a sustained competitive advantage based on timeliness, price and quality of productsWhat else is needed?Deliver products that meet the standards, quality and deployment needs of the customerClearly and thoroughly characterize non-conformancesFocus on implementation and deployment costs
36 Address Customer Concerns: Don’t lose sight of what is important to procurement organizations:How will you warehouse sufficient inventory?Can you ensure timely, efficient, and easy distribution of product?Do you have proper packaging, product labeling, and a well written instruction manual?Customer support – do you have highly available technical and administrative personnel?Establish a US based entity, partner, or use a distributor?“Buy America” may be required for certain Stimulus Funds and some larger carriers
37 Challenges for International Manufacturers in the U.S. Market How do we know what the U.S. Requirements are for our products?How do we determine in the pre-production phase of the development cycle if products will meet these requirements?How do we demonstrate that our products meet U.S. Requirements?How do we get the attention of U.S. Carriers?How do we respond effectively to U.S. Carrier RFPs?
38 RFP Response Development and Support RFPs are the main tool used by U.S. Carriers to get product information and pricing - Are you getting carrier RFPs?The RFP response development process is the key to winning large carrier business dealsRFP content is usually very comprehensive (not just pricing)Product conformance with carrier performance quality criteriaProduct Availability, Shipping, TrainingWarranty & PenaltiesTechnical & Admin supportPricingRFP response must be equally comprehensive & timely
39 Develop an Effective Strategy Demonstrate that you know your customers needs.Know the specific deployment requirementsShow that you are reducing installation & maintenance costsPosition solutions not commodity componentsRaise confidence through independent certifications of your products and production process.Product certification will help to level the playing fieldCarriers expect year performanceEngage Carriers directlyLeverage strategic partnersPartner for solutionsShow a commitment and availability to be in the marketIn North America, the RFP is very important!Best chance to show all of the aboveIf awarded the business, the RFP response often becomes the basis for the contract.
40 Thank you! Michael Zammit Managing Director Optical Analysis & ServicesWencao LiFOC Business Developer - China
41 These are 5 ways to help your company enter the U.S. market EASIER, FASTER and MORE COST EFFECTIVELYGR Consulting/Training150+ GR DocumentsNational CodesVast KnowledgeSite to Order GRsTelcordia Product CertificationTest Report Used as Marketing ToolTest All Technologies (Optical, Access, Switching, OSP, Signaling)QMS & Factory AuditingDevelop & Manage OEM’sIdentification/ Provision of Applicable StandardsProduct Qual.QMS/Factory AuditingEngineering & PlanningPerform Carrier Readiness AssessmentSolution DevelopmentSystem integrationProduct Selection ProcessRFP supportPrototype Design VerificationRed Flag TestingCarrier Field TrialsEngage with Carriers DirectlyCarrier Network ConsultingIdentify Carrier Contacts/RFPsBrokered Meetings (TRIAD Program)