Copyright© 2006 Telcordia Technologies, Inc. Are You Delivering Quality Service? APNOMS 2006 Busan, Korea September 27-29, 2006 Dr. Ed Pinnes Telcordia Fellow & Executive Director Service Assurance Architecture Telcordia Technologies Now, real transformation is within your reach

Ed Pinnes – APNOMS 2006 Quality Service - 2 Copyright© 2006 Telcordia Technologies, Inc. Agenda The Opportunity of Convergence The Role of Service Quality Management (SQM) Measuring and Managing Quality for IP-Based Services The Time is Right Are You Delivering Quality Service?

Ed Pinnes – APNOMS 2006 Quality Service - 3 Copyright© 2006 Telcordia Technologies, Inc. Wireless Convergence is Creating Intense Competition… and Opportunities Peer to PeerPeer to Peer Suites AOL, Microsoft, Google Vonage Traditional VOIP Wireline Cable New Media

Ed Pinnes – APNOMS 2006 Quality Service - 4 Copyright© 2006 Telcordia Technologies, Inc. Service Quality Management Creates Value New services involve complex interactions – Multiple network and application domains – Service Guarantees – internal and external – Service centric management New Sources of Revenue – New services are key for success – Service quality = high service uptake – IP based services will drive ARPU Churn – the single largest cost? – High cost of customer acquisition – Competition on all fronts – Quality of Service almost always cited as a major factor

Ed Pinnes – APNOMS 2006 Quality Service - 5 Copyright© 2006 Telcordia Technologies, Inc. The Three-Dimensional View From Network Mgmt to Service Quality Mgmt Transform Your Service Assurance to a three dimensional view: Network, Service, and Customer Service View Customer View Network View SQM It was previously assumed that if a service provider had good control over the network, services were automatically good… Best effort was considered sufficient… Times have changed. Olga Yashkova, Frost and Sullivan, Aug 2006

Ed Pinnes – APNOMS 2006 Quality Service - 6 Copyright© 2006 Telcordia Technologies, Inc. Service Quality Management in eTOM OPERATIONS C U S T O M E R STRATEGY, INFRASTRUCTURE & PRODUCT Strategy & Commit Infrastructure Lifecycle Management Product Lifecycle Managemen t Marketing & Offer Management Supply Chain Development & Management Resource Development & Management Service Development & Management Operations Support & Readiness FulfillmentAssuranceBilling Supplier/Partner Relationship Management Resource Management & Operations Service Management & Operations Customer Relationship Management ENTERPRISE MANAGEMENT Financial & Asset Management Disaster Recovery, Security & Fraud Management Human Resources Management Research & Development & Technology Acquisition Enterprise Quality Mgmt, Process & IT Planning & Architecture Stakeholder & External Relations Management Brand Management, Market Research & Advertising Strategic & Enterprise Planning SQMSQM

Ed Pinnes – APNOMS 2006 Quality Service - 7 Copyright© 2006 Telcordia Technologies, Inc. What Is VoIP Quality? How can you measure Call Quality? Subjective Testing, e.g. live listeners determine Mean Opinion Score (MOS) Sample-Based Objective Testing, e.g. perceptual-based techniques such as ITU-T P.862 (PESQ) Non-Intrusive Monitoring, e.g. statistical- based techniques such as ITU-T P.563 What Can Impact VoIP Quality? IP Network Problems: jitter, packet loss, delay Configuration and Signaling Problems: routing configuration, bandwidth allocation, capacity engineering Telephony Interface Problems: echo, signal level What is Call Quality? Listening Quality Conversational Quality Service Quality

Ed Pinnes – APNOMS 2006 Quality Service - 8 Copyright© 2006 Telcordia Technologies, Inc. What Is IPTV Quality? Picture Quality Transport Level (MPEG-2 ) Perceived Picture Quality (End to End VQM) Frozen & Skipped Video Frames Zap Time (Channel Change Delay) Control Command Response Time (Play, FFWD etc) Massive STB Start up Audio-to-Video Sync Delay Authentication Errors IP/MPLS Network N-PE NxGigE VOD VLAN (Per Subscriber 2) 802.1Q/P Broadcast TV 1 VLAN RG STB Video Headend VHE) GigE Network Si VOD Server Farm Video Hub Office (VHO) NxGigE ADSL2+ VLAN Path Service Path VPLSATM PVC VOD + B-cast Customer Broadcast Customer Original Image Blurring Tiling Edge Noise

Ed Pinnes – APNOMS 2006 Quality Service - 9 Copyright© 2006 Telcordia Technologies, Inc. Reality of Service Quality Multiple variables affect end-to-end quality – Network performance – Server and application performance – Device performance Impacts – OpEx and CapEx – Customer satisfaction – Market share, revenue & profitability Service Quality = + +

Ed Pinnes – APNOMS 2006 Quality Service - 10 Copyright© 2006 Telcordia Technologies, Inc. Measure Service Quality Probes Service Node RG/ STB Triple Play Services Probe or Embedded Core IP Network Content Server Broadcast Feed Metro Node Content Assurance Content Cable Fiber xDSL Metadata Service Quality Management OSS Courtesy Dr. Mike Hollier Voice Monitor Video Monitor

Ed Pinnes – APNOMS 2006 Quality Service - 11 Copyright© 2006 Telcordia Technologies, Inc. Service Quality Process What do I measure? What does it mean? Data Sources Components and sub- components are sources of data Examples: Softswitch Trunking Gateway Signaling Gateway VoIP sniffer Probe Ethernet demarc Management system KPIs Key Performance Indicators are collectable measurements Examples: Packet ingress / egress counts Packets received / lost CPU utilization Server reachability Buffer occupancy Post-dial delay Ineffective attempts KQIs Key Quality Indicators are service-centric; derived from KPIs via a Service Model Examples: Packet loss ratio Average MOS Call completion rate % Ineffective attempts Average Gateway availability

Ed Pinnes – APNOMS 2006 Quality Service - 12 Copyright© 2006 Telcordia Technologies, Inc. Service Quality Management OSS Transformation Layer Analysis Engine (Service Models) Status Views of Service Quality Service Reporting & Impact Analysis Multiple Access Clients Telcordia ® Service Director Sd SERVICE DIRECTOR Other OSS Probes and elements and measure what is going on Collect and transform data from diverse sources Powerful analysis relates measurements to customer experience Real-time status, immediate alerts, and longer term reports for management

Ed Pinnes – APNOMS 2006 Quality Service - 13 Copyright© 2006 Telcordia Technologies, Inc. Proactive Customer Notification Customer Service Service Operations/Quality Group Network Operations Center Alarm storm! Access network problems in Boston! Degradation of incoming VoIP service at call centers! VoIP service is degraded, internet is fine. Corporate Customer Complaint! Yes, I see you might be experiencing a service problem. It is with incoming calls to your CSRs and will be resolved within 15 minutes.

Ed Pinnes – APNOMS 2006 Quality Service - 14 Copyright© 2006 Telcordia Technologies, Inc. Extend SQM Strategy Out to the Devices What if you could… Understand if device configuration issues impact service usage? Push latest OS versions to handsets over the air? Sample groups of subscribers to better understand their usage habits? Evaluate high ARPU services (e.g. SMS) for your top selling handsets? Compare your five best selling handsets to see which services are most used? Obtain near-real-time performance information regarding new service launches?

Ed Pinnes – APNOMS 2006 Quality Service - 15 Copyright© 2006 Telcordia Technologies, Inc. SQM – The Time Is Right The need is here – Competitive environment requires proactive management of Quality of Experience The affordability is here – Probes and other key sources of measurements are powerful and affordable The processing power is here – The ability to crunch diverse available data, and refine it into focused service-centric and customer-centric management information, is available in OSS today

Ed Pinnes – APNOMS 2006 Quality Service - 16 Copyright© 2006 Telcordia Technologies, Inc. Understand the end customers Quality of Experience Measure and manage the quality you provide to your end users Know the overall health of your network Proactively solve impending problems Find and fix problem spots Relate measurable quantities to service- centric criteria via service models Gain an edge in the competitive marketplace What Can SQM Do For Your Business?

Copyright© 2006 Telcordia Technologies, Inc. Thank You!