1. © BWCS Operating Model for Digital PMR 3rd TETRA Middle East Conference Graham Wilde BWCS 6 September 2005 graham.wilde@bwcs.com

2. © BWCS Who are BWCS? BWCS is a management consultancy specialising in telecommunications We work with vendors, network operators and users organisations We have worked on assignments covering digital PMR, 2.5G and 3G cellular, and fixed line networks In Europe, Middle East and Asia-Pacific Publishers of “Building a Cost Effective Trunk Dispatch Mobile Radio Network”

3. © BWCS Why talk about an operating model?

4. © BWCS Priority given to thinking about: Acceleration Top Speed Alloy Wheels Leather seats Sat-Nav MP3 Player

5. © BWCS And less about: Acceleration Top Speed Alloys Leather seats Sat-Nav MP3 Player Insurance cost Service interval Service cost Depreciation Warranty Anti-theft devices

6. © BWCS In digital PMR, the equivalents are: Geographic coverage Handheld vs vehicle coverage Network technology Network topology Network features Terminal devices Which vendor? Roll-out phasing Who will operate the network? How can the network be operated cost- effectively? How should users pay to use the network? How do we ensure that the network stays aligned with user requirements in the future? There is no single solution to suit everyone

7. © BWCS Who cares who runs the network? Today’s digital networks are more sophisticated than ever Which means they are more complex to operate And more costly too Often, many agencies will share the same network The consequences of strategic or tactical errors in network operation are greater It is more important than ever to consider who will run the network, and how.

8. © BWCS What does a network operator do? Network operations tasks Network engineering Maintenance Billing and customer care User Training Vendor management Provision of management information Management of relationship with government Implementation of security policy Disaster planning Public relations Sales and marketing of network services

9. © BWCS Options for Network Operation Option NameWho owns the network assets? Who operates the network? User Control A government ministry or agency A major user (e.g. Police) Direct Control A government ministry or agency Government owned company Outsourced operations A government ministry or agency A private company Total outsourcing A private company Increasingly different from earlier models

10. © BWCS Examples from Europe CountryNetwork NameOperator is: Belgium ASTRIDPrivate company Czech Republic PEGASGovernment Finland VIRVEGovernment owned company France ACROPOL & RUBISGovernment Netherlands C2000Private company Slovakia SITNOGovernment Spain SIRDEEPrivate company Sweden RakelPrivate company UK AirwavePrivate company

11. © BWCS Key Factors to Consider Ability to manage risk/Allocation of risk Risks from malicious attack, espionage, weather, technology, project management, commercial Contract complexity What is your track record of managing complex contracts? Labour flexibility How will you find and retain the best people? Cost effectiveness What is your track record of running efficient operations? Financial transparency How will you see where the money comes from and goes to? Core tasks What are the core tasks of operation versus those which are non-core? Number of current and future user groups and user representation How will you ensure users get what they need (within reason)? Culture of service provision How will you ensure that good service is provided? Regulation What are you allowed to do?

12. © BWCS Pros and Cons of Private Operators ForAgainst Risk Often better at handling low level risk May not have resources to deal with major risk Contract Forces you to define goalsMay be hard to manage Labour Works outside civil service pay policy Finances May be easier to track if company is dedicated to PMR operation May be much harder to track if it isn’t. Core Tasks Often skilled at outsourcing non-core tasks But needs to be closely monitored User representation Can be made to be more accountable than government or single user Unless clear framework exists, could be as bad as government or single user Culture Usually better than government or single user Unless under undue financial pressure

13. © BWCS A final word about private operators When used, they tend to have a pre-existing track record in defence in that country, and are often headquartered in that country Belgium Telindus is a shareholder in ASTRID Netherlands KPN is a shareholder in TetraNed Spain Telefonica Espana is a shareholder in Telefonica Moviles Sweden Saab is a shareholder in Rakel UK Contract originally awarded to BT, which de-merged its mobile arm (now called mmO2)

14. © BWCS Which operating model is right for you? There is no ‘one size fits all’ solution But setting the operating framework for the network operator is crucial, no matter who they are Even government departments should have a clearly defined set of responsibilities, clear lines of reporting and accountability to users Big benefits to early and thorough planning

15. © BWCS Thank you!