AUGUST 2003 NO.1
>> Implement in Depth the Spirit of 16th CPC National Congress to Create a New Situation for the Word of China Netcom Group in an All-Round Way

>> Value creation,business innovation and net generation netword

>> 3.5GHz Fixed Wireless Access System And Local Multipoint Distribute Service(LMDS)

>> Discussion on Telecom carrier's system integration service

>> Application of GAP Technology in the on-line Business Hallf Service of Telecom

>> Analysis of the DCN Management Network Specifications of Lucent is No.2 Network

>> A brief discussion about spectrum-spread communication and its application in local access network

>> Several key technological issues concerning the cleanout maintenance of telecommunication equipments

>> A discussion about analysis and treatment of optical path obstacles of SDH equipments of Siemens

>>  A brief discussion about management of fixed assets with information system

Discussion on Telecom carrier's system

integration service

1 Introduction

         As the social informazation is improving and network has become an import part in the society, important clients in different industry are looking for a diverse and customized integrated solution from telecom carrier to meet their communication needs, and share services of “one-station-can-get-all”. This situation makes carrier develop system integration service with its own resource to lead the head in the competition. On the other side, data communication service such as IP service has rapidly developed, which make 憁edium layer?become more and more important. To bring the largest potential of network into play, a specialization team of system integration is needed to supply technical support as well as traditional network management and maintenance employees are needed. As we know telecom operation is stepping into an era with competition on operation and service, and it is a due problem to solve how to supply different and customized service for different client and improve relationship with clients. And it is a key index indicating service for clients by telecom carrier to see whether it could develop system integration service.

2 System integration service could expand  value-added room of carrier

         System integration service of telecom carrier mainly covers the following two means: One is system integration of IT architecture inside telecom carrier. It is an integration of system related with ERP, BOSS, CRM and integration between systems, such as billing, integrated count, network management, resource management and dispatching, client resource data management, operation deal and supply, and client service. And this job used to be done by telecom carrier with the help of equipment suppliers and system integrator focus on telecom industry, and software developer. The other mean is system integration service aiming at client, which could offer one integrated point-to-point service for clients in different industry according to demand of operation and resource configuration. The service includes complete solution from operation counseling, configuration of software and hardware platform, development of application software, network connection to system maintenance. At present, there are many system integrators aiming at telecom carrier. With their help, telecom carrier could get some 憇oft?and 慼ard?equipment, but it is still hard to supply a satisfied service for clients in different industry, which needs telecom carrier to supply a feasible solution according to their self resource. To achieve these, lots of telecom carriers builds a special system integration company to supply solution for clients.

         According to development history of system integration in telecom industry, earlier system integration mainly includes network integration, network technical support and so on. After entering 90's, with the rapid development of data communication in the world, system integration not only supplied software and hardware technical service, but also began to supply specialization service for client such as customized design, consulting and application and maintenance. System integration has beyond primary stage with simple 憇ystem conformity? and begin developing value-added space for telecom carrier. And a specialization team in system integration also supplies an indispensable support for integer network plan and enforcement of telecom carrier. The more important thing is that system integration itself has gradually become a new service increasing-point of telecom industry. System integration service depending on self-network not only carries extra income for telecom carrier, but also enable telecom carrier supply better service and grasp client.

         In recent years, change has taken place in operation in the whole telecom network, data communication operation of IP has group up quickly, and it will gradually replaces voice communication to be the mainstream of telecom operation of the new generation. Because IP technology has been dominant in communication network, architecture and function of future core network will be very simple. Its major function is to supply large-capacity bandwidth. Although core has become more and more simple, requirement of communication service by people has been more and more diverse. Customized demand in information age requires telecom carrier supplying diverse service on an integrated platform. Telecom carrier should be able to expand value-added service market through conformity of network resource, as well as supply ordinary network access. Competition of future market is not only the competition of network access, but also the competition of service mode and service type. So telecom carrier should supply custom with kinds of individuation and applied service through integrated network element, which arises new requirement of system integration of telecom industry.

         Most traditional telecom system integrators are limited by 慼ardware drives software?development mode, and have no complete comprehension of network, and are hard to give an advanced advise for client抯 system construction. Although they know more about hardware products than telecom carrier, telecom carrier could timely grasp the change of client抯 demand through direct service clients in different industry, and offer a pertinence solution according to self network resource. The best advantage of system integrator with carrier background is that they could connect client's demand to the network very well. There are lots of successful cases about developing system integration service in foreign big telecom carrier, such as PCCW, Germany Telecom, British Telecom.

         From the view of client, data communication is a field with strong specialty. And they just want communication company to supply a integrated solution to network construction to meet their specific demands. In fact, more than ninety- percent data communication subscribers in developed country is developed system integrator with telecom carrier background.

         In addition, telecom carrier has built a large IT architecture after several years?investment, such as service system and support system and so on. But operation in different area and department in different service usually adopted products from different manufactories, and the standard, system and interface of IT systems are not united. And IT technology is also developing and upgrading everyday. All these will inevitably raise a complex problem on conformity of system between different operation departments, and between 憂ew?system and 憃ld?system. And these problems used to be solved by outer system integrators and equipment manufacturers. But they have limited comprehension on IT system and network operation of telecom carrier. If telecom carrier completely depend on those people, they will not make a timely decision on the market. And if carriers themselves development system integration service, they will not only keep this large inner market and save cost, but also strengthen control and development of the system and network to fully embody its functions.

         But this does not mean excluding cooperation with specialty system integrators or software developers during telecom carriers develop system integration service. With the help of this cooperation, a better-quality service will be supplied. But telecom carriers themselves should be able to take on most system integration service focused on clients, and this service will determinate whether carriers could supply diversity of telecom service, which will build the core competition of telecom carrier.

3 System integration service in Outside of the mainland telecom carrier

3.1 Hongkong PCCW

         As the major telecom carrier in Hongkong, PCCW has a strong capability of system integration as well as strength of telecom operation. In less than two years, PCCW has not only become one of Asian leading telecom carriers, but also grown up as the biggest system integrator in Asian.

         At the earlier stage of merge, PCCW began re-orientating the whole business of company. It classified all business into four parts, that is, core business, increasing business, jointly-company business and capital construction business. And core business is referred to fixed-network service of telecom, and increasing business includes Internet service, system integration, consulting service, software development, network infrastructure and external service and so on. The case of conformity of system integration by PCCW fully proves it is successful for them to take the advantage of both telecom area and IT area to expand a larger market. At present system integration has taken more than twenty-five percent sale share of group and become the fastest-development business in PCCW.

3.2 NTT DATA

         NTT DATA is one of five big communication companies of NTT group. After several years NTT DATA today has become the biggest information system integrator and network system service supplier in Japan, and its sale income take the second place among global same-type company. While it mainly supplied information system and computer network service in the earlier days.

         Management philosophy of NTT DATA is enterprise value chain to create and expand IT market. This value chain is consisted with three parts: IT partners, service supplier, system integrator. The goal of NTT DATA is to be the leader in these three fields, and strength cooperation to create a successful commercial mode. At present NTT DATA has a complete products (service) series. It could not only construct network for client, supply system integration service on each layer, but also complete system plan, stratagem plan, system maintenance and management, system design and installation for clients. It is not only network service supplier, application service supplier, but also E-commercial service supplier, computer service supplier, Internet service supplier and security service supplier.

3.3 Germany Telecom T-System

         T-System is one of four sub-companies of Germany Telecom. The company is orientated on supplying system integration solution for big client. As European second largest system solution supplier, T-System supplies integrated IT and telecom solution for global clients as well as for Germany large clients. At present, there are 43 500 employees in more than twenty countries. The company is able to supply global IT and telecom service, and develop new integration solution and creative E-commercial system for clients. Able to supply global 憃ne-station-buy-all?and end-to-end telecom and information technology service make T-System leading in market for a long time.

3.4 British Telecom Ignite

         BT re-arranged as six sub-companies in April 2000. And Ignite sub-company mainly deals with IP service with center of data communication, which includes data transmission, network host trusteeship and application, system integration and external service, E-solution of client, application of software packet and so on. It is mainly orientated in enterprise client and wholesale market. Ignite is due to supply a complete communication product series for enterprises and wholesale clients in big cities around the world. And it is also the first communication company who promise to supply a complete IP vale chain (from core network to Internet connection to E-commerce consulting and solution) via a suit of content trusteeship, application service supply, system integration and external contract.

3.5 French Telecom Euralba

         December 6 2001, French Telecom announced new-set a information consulting company named Euralba on the base of original R&D department to supply consulting for client's information system architecture. Euralba helps clients to design information system, supply solution to function, and supply consulting on system project, application development and integration, including CRM, advertise marketing. Major clients of Euralba is big enterprise in bank, insurance, and large-scale retail, and it also includes medium and small-scale enterprises, who want to use information system to enhance contact with partners, clients and suppliers, or apply themselves to develop E-commerce. Euralba also works for construction of information system of sub-company of French Telecom group such as Orange, Wanadoo, and supply related technology support for information system department of French Telecom.

3.6 AT&T GNS and AT&T Solutions

         AT&T global network services (AT&T GNS) and AT&T Solutions could supply several kinds of network connectivity services and customized solution to network for clients, which includes construction, management and support of network infrastructure. This solution will make headquarter of enterprise manage branch organizations in local place better, and ensure information transmit among each branch organization in time to share the resource and keep the contract with clients. In addition, it will also supply solution of network management system, advanced IP and world-in-point client network system external contract for client in each industry.

         System integrator discussed above which derived from telecom operation enterprise has a same feature, that is, it could not only take use of network resource of its parent company, and support the development of data communication service of whole parent company, but also expand its self-developed space to directly or indirectly bring large income for its parent company via value-added services. In the age when IP technology becomes the mainstream, carrier could re-range and take a high-level use of resource of communication network with the help of kinds of software and hardware technologies. And those integrators leeching on to large telecom carrier are playing an important role in developing value-added service based on telecom network for carrier.

4 Advantage and disadvantage for telecom carrier to develop system integration services

         There are lots of advantages for traditional carrier to develop system integration services, such as well reputation and acceptance, redundant network resource, and clients resource and strong appeal for each kind of partner.

         Market environments also offer a good chance for telecom carrier to develop system integration service.

         (1) Increasing demand of 憃ne solution?to communication by client offer a large space for telecom carriers to develop system integration services;
         (2) Compare with traditional system integrators, telecom carriers could understand demand of client better, and they could also utilize network resource and operation experience to enter fields serving clients;
         (3) Rapid development of data and other value-added service will increase demand of system integration services;
         (4) To supply deeper-level service for client needs advanced IT means, while application of IT means needs more support of system integration.

         But there also exists disadvantages for traditional telecom carrier to develop system integration service, which is listed as the following:

         (1) Absent of deep comprehension of business flow of clients in key industry, and unfamiliar with operation mode, industry feature and business flow of different industries;
         (2) Lack of skill and experience of IT project management. System integration service needs advanced management mode of IT project, and traditional carriers are short of experience and talents at that fields at present;
         (3) Not good at other system integration service outside of network system integration. There exists shortcoming or blind point in Internet service, solution to industry clients, computer service, application service, E-commerce service and industry strategy service. And it is unfamiliar with new system integration such as consulting, training and so on.

         In recent years, as the market competition become more and more sever, telecom carrier in China has pay more and more focus on system integration services and begun to enter this field with different mode to server big client and expand value room. At present, when telecom carrier in our country develops system integration service will face both opportunity and challenge. Client抯 demand is huge, and value-added service has rapidly developed. But it is late to develop this business, so the experience is deficient. It will face problem of inner conformity of IT architecture and business, and it also takes a chance to cooperate with experienced telecom carrier and system integrator at home and aboard. Given all these, telecom carrier in China should work with domestic and foreign industry system integrator, manufacturer, software developer and telecom carrier with experience of system integration and large clients in kinds of industries.

5 Orientation of system integration services

         According to system integration service developed by foreign telecom carrier, there are different operation emphases during different growing stage. It includes system integrators who supplies a complete service for large clients, such as T-SYSTEM, PCCW, and it also includes those system integrators who supply solution to data service for clients, such as BT Ignite, NTT DATA. PCCW accumulate specialty knowledge in different industry market by carrying important project with leading enterprises in each industry. T-SYSTEM mainly supplied service for large (group) clients of Germany Telecom at earlier stage, and then supplied integrated solution of IT and telecom for global clients later. NTT DATA supplied information system and computer network service for clients at its earlier days, and now it mainly supplies system integration services based on data service for subscribers. French Telecom Euralba is helping clients design information system at present, to supply solution to function. BT Ignite supplies system integration service of broad band IP service centered on data communication. All these show that foreign telecom carriers choose key clients and industries according to market demand in different stage and resource when they develop system integration services.

         Domestic telecom carriers should also grasp important things, and enforce step by step, and transits to system integrator who able to supply complete system integration service according to demand of market in different stage and self capability. That is discussed as the following.

         In first stage, system integration service could be orientated on network service suppliers outside, that is supply transmission solution related with basic network architecture for clients. And it pushes conformity of inner IT architecture insides, and supplies system integration orientated inside to accumulate experience of being a Internet suppliers and computer service suppliers.

         In the second stage, they will also act as application service supplier, industry strategy service supplier and solution supplier. They could gradually take part in integration of communication and service application of big client in key industry such as finance, government and so on via alliance or joint venture and cooperation. System integration in this stage is mainly oriented on supplying several-layer and full-scope service for big clients. Carrier utilize experience in operation of telecom service and management network to supply a integrated solution from construction of communication platform, development of application system to external contract service for government, finance and enterprise to supply support for new service and customized service. At the same time, they could also utilize experience of inner IT system integration to develop relative business.

         In the third stage, telecom carrier will become as a comprehensive integrator with full-scale system integration capability. They will not only work for large clients of carriers themselves, but also supply a complete system integration service for global market. System integration services in this stage should cover system integration, value-added business and IT services.

         The important point of system integration is integration and software development. And the key of competition is laying at technology, related experience, and quality of talent and relationship with clients. To achieve a long-term development, it needs cooperate with well enterprises and peer, to fully utilize resource of cooperators. It also needs absorbing international advanced experiences, to find a manage mode of system integration business with centralization, specialization and complying with actual information of telecom carrier.

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Biography:

  Liu Yong-bin is a master in economics. He once worked at the production management section of PLA General Logistics Department, Huaxia Publishing House, Beijing Telecom Company. He is now working at the enterprise development department of China Netcom Group Co.