1. asset
assurance
Optimizing Capex while Improving Service Efficiency
ROC® ASSET ASSURANCE
Discovery & re-engagement of stranded & unutilized assets
Network Intelligence across asset lifecycle
Manage & optimize capital expense

2. Introduction
Telecom operators across the globe have a major issue controlling their network capital expenditure (capex) since they are
investing huge sums of capital on new network infrastructure for advanced telecom services like LTE / 4G, IPX, etc in order to
meet the demand of subscribers and service the explosive growth in data and content traffic.
According to a survey, telecoms operators indicated that they could be wasting up to 20% or USD 65*
Billion/year in network
capex. At the crux of the problem is the unfortunate reality that operators don’t have an accurate picture of what assets and
inventory they already own, let alone how these assets are being used. About 5-15%*
of assets deployed in the network is
unknown or “stranded” and provides no revenue to operators. Financial stakeholders across the telecom industry are facing
major challenges with respect to audit compliance and cleaning the budget books for procurement of new assets. On the
other hand, the CTO and the operations team are concerned about the assets and their efficient usage across the network.
Faced with decreasing EBIDTA and ever increasing pressure on margins, operators can no longer afford to keep on spending
like they always have on capital assets and network projects with no questions asked. But operators are not managing their
assets adeptly, and these challenges are something that senior management needs to address with some urgency in order to
control their capital expenditure more effectively.
BusinessProblems-WhyTelcosarenotabletooptimizetheirCapex?
So, why operators are not able to manage their network investments? A recent survey done by a leading industry analyst
shared some key insights into network asset management practices in the operators today. One of the main reasons is the
Capex planning which is driven by technology and not business objectives. Budget for network asset purchase is
pre-allocated without any intelligence or lessons from historical data. The network capital used for strategic investments and
enterprise programs is getting most of the attention and on the contrary capex for replacement, maintenance and tactical
projects is getting too little.
Another reason of capital mismanagement is inadequate visibility into assets results into lack of understanding asset
dispositions (warehouse, spare, deployed, in-transit, lost, etc.), poor data integrity in source systems and failure to leverage
intelligence directly from the network. Real need is often clouded by limited visibility of assets in the field and poor capacity
planning. Gaps in accountability are another reason where the accountability for an asset’s contribution to the bottom line
usually erodes after purchase.
Limited purchase controls and gates play critical roles as much of the network spend is on “auto-pilot” and is merely an
attempt to stay ahead of the growth in traffic. A repeatable, sustainable and highly effective program to reduce Capex also
requires asset governance which is not implemented in most of the telecom companies today. What the operators lack,
however, is a connected, continuous lifecycle process control that is based on the following features:
Views into stranded and unutilized assets for re-deployment
Views into network capacity that show node resource consumption and resulting performance impacts (Capacity in
most operators today is based on traffic statistics alone)
Analytics that account for network rate of change and other factors, allowing accurate predictions into necessary
warehouse/sparing stocking levels
Analytics to harvest and retire assets quickly and efficiently, to preserve the most value for resale
A“connected”lifecycle view that allows assets to been seen at every stage (logistics has a limited lifecycle view of what
assets it is aware of, without gating or end-of-life management
*OVUM Report 2014

3. Fig 3: ROC Asset Assurance – Bridging the Alignment Gap
Forecast
Plan Budget
Purchase Receive Deploy Operate
Redeploy
Retire
ERP Optimization and Focus Technical OSS Focus
Bridging the Businessasset
assurance
Lackofassettraceability
resultinginsub-optimal
planningandoperations
Challenge in audit and
regulatory compliance
PotentialCAPEXloss&lack
ofrevenuerealization
Fig 2: Potential Business Impacts
CFOs and senior finance stakeholders are typically confronted with continuously shrinking margins which have a subsequent
impact on budgets. Today’s capex management lacks a joint venture between the finance and network teams, working
together on capital planning and budgeting processes. Finance departments typically rely on ERP and any other supply
chain/logistics/asset management applications to obtain
metrics about the flow and location of assets. However,
these applications give only incomplete views of assets.
With this view, the network is required to provide
definitive information about the assets that are incorrectly
updated manually.
A critical challenge in asset lifecycle management is that
different sources of information - such as ERP, financial
reporting systems, inventories, billing and the network -
often tell incomplete or conflicting stories. This frequently
erodes confidence in the systems from an operational and
financial standpoint.
ROCAssetAssurance-TheCapexOptimizationSolution
In most operators today, attempts are being made to manage the above mentioned challenges. Network analytics applied at
each stage of the asset lifecycle can result in significant capital savings annually for the operator. The capex problem requires
complete, holistic views into current assets as well as the consumption and placement of those assets. This problem also
requires comprehensive analytics that are not only descriptive (show current states, trending etc.), but also predictive, to
accurately predict asset exhaustion, procurement triggering, necessary asset warehouse levels, impacts of failure and growth
rates on sparing levels, and retirement strategies.
Asset Assurance is a collection of network-centric processes that significantly improve CAPEX, Free Cash Flow and EBITDA by
providing financial and operational metrics to measure, predict and optimize the Return on Assets in the Network. Subex’s
ROC Asset Assurance is a pioneering solution to manage telecommunications network assets across all dimensions of the
asset life cycle and reduce network capex substantially.
Fig1: Finance and Network Operations have different views of assets
Forecast
Plan Budget
Purchase Receive Deploy Operate
Redeploy
Retire
ERP Optimization and Focus Technical OSS Focus
Finance Visibility
Reliance on ERP (Supply chain and GL focus)
Network Operations Visiblity
Reliance on Technical OSS (Delivery and Service Assurance focus)
Alignment
Gap

4. Traditional solutions in the asset management space exist in silos intended to support specific stakeholder groups. But ROC
Asset Assurance leverages network intelligence throughout the asset lifecycle to provide both Finance and Operations with
the analytics they need to promote more efficient use of capital. Network intelligence provides critical information to
complete the asset picture, helping to answer questions as:
How much time elapsed from purchase of an asset until it was installed in the network?
How much time elapsed from installation of the asset until it first carried revenue traffic (i.e. became productive)
Which assets are deployed in the network but unknown to ERP?
Which assets that appear utilized in Inventory are actually unutilized as reported by the network?
Are spares efficiently distributed based on locations of deployed assets and counts as reported
by the network?
OverviewofAssetLifecycle
A complete solution of Asset Assurance would encompass the continual monitoring and management of lifecycles associated
with the assets. Each section of the above asset lifecycle is instrumented with the following features for daily use by the
operator: process triggers, insightful dashboards with cube analysis, KPIs and alerting to important conditions, prioritized case
work items associated with network (asset re-positioning recommendations and supporting analysis, service re-grooming
recommendations and supporting analysis, purchasing recommendations, supporting analysis and validated triggers) and
visualized asset lifecycle statuses with associated reporting.
ROCAssetAssuranceBusinessBenefits
In summary, an effective asset assurance program will provide operators complete confidence that their network will grow to
meet market demands while also guaranteeing optimal value for every dollar of capital budget spent. Benefits across the
lifecycle can be summarized as:
Early Asset Lifecycle
Alignment between Network and Finance
Complete recapture of available assets
Total optimization of assets and capacity
Elimination of over-purchasing
Sophisticated modeling for sparing management
Fig 4: Asset Lifecycle
Major Obstacle:
Asset Identification
Indent for
Item
Material Received
in Warehouse
PO Creation Moved out of
Warehouse
Repair
Deployed in
Network
Stranded and
Underutilized
Re-grooming
Re-deploy
Retire
To
Warehouse
To
Warehouse

5. Mid Asset Lifecycle
Time-to-value tracking on all revenue-potential assets
Automated modeling and monitoring of capacity threats
Service impact predictions
Retirement Lifecycle
Re-homing/ re-cycling predictions based on rate of change modeling
Maximization of free cash by accelerating re-sale processes
Eliminate power expense losses by tracking device removals
Asset Assurance has the potential to facilitate CFOs & CTOs of operators by helping them translate insights into actions,
bridging the gap between the two offices. Business values that ROC Asset Assurance provides to the prime target audience are:
Subex’sExpertiseinAssetAssuranceSpace
Subex has expertise in asset lifecycle analytics and network intelligence and has successfully illustrated the value of ROC Asset
Assurance to help maximize the return on invested capital for its customers and help build competitive advantage.
For instance, a particular CSP stated an immediate need and ordered over 50 Million USD in network equipment for a growth
project. Usually such procurement requests arrive with no visibility into available asset/capacity analysis, and therefore there
are no means to gauge effective use of prior purchases. The stated equipments were received, but it was only after 6 months
it was realized that the equipment was still found sitting in a warehouse, after questions on the whereabouts of the equipment
were raised by the Board of Directors.
A Tier 1 North American Operator employing Subex found 100 Million USD in stranded assets (unknown to inventory) in the
network, this number is still growing. Yet another customer found large number of assets, worth a huge amount, in the
network that was carrying no services. Resource capacity was at critical levels in certain network nodes, where, surprisingly,
capacity traffic analysis was not revealing a problem. Recently, a Service Provider planned decommissions/retirement of
certain network equipment, with a target of resale at 25% of original purchase price. Due to delays and disorganization in
those processes, the equipment (when finally made available, months later) only sold for 10% of original cost which resulted
in millions of revenue opportunity lost.
Significant capital savings
Continual monitoring and management of
assets lifecycle
To-date tracking of capital spend vs. budget
Tracking of predicted budget based on network
analytics
For a CFO
Provide a holistic view of the network planning
and growth
Exposure to better business and operational
support systems
Help them understand how to manage all
enterprise assets so they can adapt quickly to
demand
Actionable intelligence in near real-time for all
the network assets in the inventory, on fields etc
For a CTO

6. Subex’s ROC Asset Assurance represents several firsts in the industry:
The first solution dedicated to complete, end-to-end management and optimization of network Capex
The first solution to employ complex process management and predictive analytics to network optimization and
growth, across the entire lifecycle (not just project-specific planning)
The first solution to look at current network performance and optimization as a gating factor for additional growth in
expenditures
The first solution to provide comprehensive tools to Network Planning, Field Services, and Finance that support Capex
need while also ensuring network optimization
The first solution to utilize powerful network discovery intelligence as a tool to drive Capex planning (reliance on
inventory has been proven to be highly inaccurate)
Operators have matured in Capex diligence processes as network growth and costs has significantly outpaced network
revenues. Thus, ROC Asset Assurance stands alone in the world today as an agnostic tool to give Network stakeholders
tremendous power to drive decision, while giving Finance stakeholders robust analytics to drive Capex planning.

7. Lack good understanding of past
investment impact on revenues
40%
CapEx Planning driven by technology,
not business objectives
64%
New Projects do not benefit from lessons
learnt
32%
Finance and network asset are misaligned
27%
Operators
Surveyed
29
VP
71%
Managers
24%
CEO
5%
1 in 3 operators do not measure
returns on capex investment
Adding new capacity is top
investment priority
Better visibility into Disposition of Assets
& Ongoing/On demand FAR data integrity
Accurate asset depreciation and
write-off, free cash flow generation
Smooth audit and regulatory compliance
for active discoverable
Optimal utilization of CAPEX
and OPEX spent on Network assets
asset
assurance
Subex’s pioneering solution helps reduce CAPEX burden for operators
Capex
Burden
Investment
increase in Capex
$354*Billion
Drop in EBITDA
57%*
*as per Industry average PwC Study 2014
Benefits
CAPEX savings
$27
Million
2011
$34
Million
2012
$43
Million
2013
$104
*
Million
2014
Increasing ROI
Reduce cost
overruns
Improve large time
taken per order
Ensure better
synchronization
Challenges
*asonDec2014NAOperatorTier1
700%
ROI* more than
Case Study at Tier 1 North American Operator
ERP/FAR misaligned
with inventory
65%
Inadequate asset
tracking source
45%
Asset information is
inadequate
27%
Don’t have visibility in
asset deployment
77%
TM Forum Network Asset
Management Survey 2014

8. AboutSubex
www.subex.com
Subex Limited is a leading global provider of Business and Operations Support Systems (B/OSS) that empowers
communications service providers (CSPs) to achieve competitive advantage through Business and Capex Optimisation -
thereby enabling them to improve their operational efficiency to deliver enhanced service experiences to subscribers.
The company pioneered the concept of a Revenue Operations Center (ROC®) – a centralized approach that sustains profitable
growth and financial health through coordinated operational control. Subex's product portfolio powers the ROC and its
best-in-class solutions such as revenue assurance, fraud management, asset assurance, capacity management, data integrity
management, credit risk management, cost management, route optimization and partner settlement. Subex also offers a
scalable Managed Services program with 30 + customers.
Subex has been awarded the Global Market Share Leader in Financial Assurance 2012 by Frost & Sullivan and has been the
winner of Pipeline Innovation Award 2013 in Business Intelligence & Analytics; Capacity Magazine Best Product/ Service 2013.
Subex has continued to innovate with customers and have been jointly awarded the Global Telecoms Business Innovation
Award 2014 along with Telstra Global; in 2012 with Idea Cellular for Managed Services and in 2011 with Swisscom for Fraud
Management.
Subex's customers include 29 of top 50 operators* and 33 of the world’s 50 biggest#
telecommunications service providers
worldwide. The company has more than 300 installations across 70 countries.
*
Total Telecom Top 500 Telecom Brands, 2013
#
Forbes’Global 2000 list, 2014
SubexLimited.2014.Allrightsreserved.Althougheveryendeavourhasbeenmadetoensurethattheinformationcontainedwithinthisdocumentisuptodateandaccurate,SubexLimitedcannotbeheldresponsibleforanyinaccuracyorerrorintheinformationcontainedwithinthisdocument.10022015.
Regional offices: Dubai | Ipswich
Subex (Asia Pacific) Pte. Limited
175A, Bencoolen Street,
#08-03 Burlington Square,
Singapore 189650
Phone: +65 6338 1218
Fax: +65 6338 1216
Subex (UK) Ltd
1st Floor, Rama
17 St Ann’s Road,
Harrow, Middlesex,
HA1 1JU
Phone: +44 0207 8265300
Fax: +44 0207 8265352
Subex Inc.
12101 Airport Way,
Suite 390 Broomfield,
Colorado 80021
USA
Phone: +1 303 301 6200
Fax: +1 303 301 6201
Subex Limited
RMZ Ecoworld,
Devarabisanahalli,
Outer Ring Road,
Bangalore - 560037
India
Phone: +91 80 6659 8700
Fax: +91 80 6696 3333
Awarded Best Global
Product/Services
Awarded in the Big
Data & Analytics category
Global Telecoms Business
Innovation Award, 2014
Received Global Market
Share Leaderin Financial
Assurance Award 2012
* for RA & FM
info@subex.com