1. Nokia Siemens Networks
Industry Themes
Business
Transformation

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Network operators and service providers face pressures from all
directions. They are pushed to increase the efficiencies of their
operations and technologies and raise shareholder value. They are
challenged to create new services. They must contend with new
disruptive business models and end-users who are increasingly
demanding more for less. They must also be able to expand their
networks and processes in ever more challenging market conditions
with ultra-low ARPUs. All signs that the communications industry has
to undergo a huge business transformation.
To help our customers define their commercial and technological
strategy choices, Nokia Siemens Networks brings a deep
understanding of global and local drivers and needs. Our strength
comes from combining our perspective on market developments and
technologies with end-user insights on specific market conditions and
dynamics.
The speed of economic, technological and social change is opening an
opportunity for operators and service providers to re-think the way they run
their businesses. Some of the most notable trends are:
• Players using the Internet business model entering the telecom
market
• Applications driving the infrastructure evolution leading to multi-
purpose networks; the convergence of telecom, media and IT
industries; rise of diverse business models where combinations of
fixed, mobile, cable, TV and content services are bundled together
• Many different roles for operators to adopt when building new
services and business models
• The increasing importance of communities and customer ownership
and rising end-user expectations
• Growth challenges in mature markets
• Growth challenges in new growth and ultra-low ARPU markets
The operators’ success in this context will depend on them designing
business models for their individual market situations.
We aim to help them capture the opportunity and achieve Total Value of
Ownership (TVO) by optimizing OPEX and CAPEX while maximizing
revenue. We will achieve this by helping to design and implement business
models for their individual market situations based on agile and efficient
organizations, processes and technology infrastructure.
1.1 Unlocking opportunity
Fuelled by the trends above and the growing importance of communities,
the Communications Ecosystem Framework created by Nokia Siemens
Networks clearly identifies several viable options for the operator's business
models. For example, here are some generic business cases and enablers
for exploiting opportunities in the future:

3. Copyright 2007 Nokia Siemens Networks.
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• Focus play: operators concentrate on their core transport business,
streamlining their OPEX and CAPEX to become the most efficient
network provider
• Extended play: Operators expand their own value web by
converging their networks and bundling their services. Operators can
also outsource relevant aspects of their technology to selected
technology partners, focusing their resources on service provision.
• Services providers, including virtual service providers, concentrate
on service development or aggregation for specific target groups or
communities
In this world, many operators are assessing their own competitive position
and if necessary acquiring new skills or finding partners with these skills.
They are considering different strategic positions like the generic cases
above, or – aligned with their core value and competencies – they are
shaping a unique approach. Insight, innovation, flexibility and delivery are
the key ingredients to transform their business.
• Insight: Operators are at the heart of media and communications
technology convergence. What’s more, convergence is creating
shifts in the way that end-users use communications technology.
Making profitable decisions in this environment requires deep insight
into industry dynamics and evolution, technology and end-user
behavior and communities.
• Innovation: Having great insight is the first step; turning these
ideas into practice requires a solid business case. That is especially
true when managing converging business models where a
combination of fixed, mobile, cable, TV and content services is
bundled together. Continual innovation of business models,
technologies and services is the engine of new revenue growth.
Even so, sustaining a culture of true innovation is a challenge in
today’s ever-changing business environment.
• Flexibility: The demands for flexibility are twofold: both to innovate
and capture new audiences quickly and to respond with agility to
market development and the technology evolution. To succeed here
requires end-to-end processes, people and technology that can
support day-to-day operations while remaining flexible enough to
proactively develop and renew services.
• Delivery: The emergence of competitors operating on Internet
business models brings this issue into sharp focus. Time to market
of new services is important but long-term profitability will always be
a function of operational efficiency. Therefore, reducing operating
costs, optimizing existing assets and aligning charging and care
systems with customer and enterprise processes have become high
priorities for operators to make sure that new eco-systems provide a
sustainable business model.
1.2 Maximizing opportunity

4. Copyright 2007 Nokia Siemens Networks.
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As the pace of innovation and the intensity of competition continue to
increase, all the players in the industry need to weigh the options and make
choices.
With our extensive global and local experience and our wealth of
technological, demographic, geographic and economic end-user insights,
we can help operators meet their unique challenges and capture business
opportunities in a transforming business environment.
We are uniquely positioned to guide operators profitably through the
complexities of what we call their individual ‘business and market
ecosystems’. Dozens of operators around the world have already invited us
to support the design and implementation of their business and technology
strategies.
Looking ahead, we have extensive insight into the market dynamics and
end-user needs that drive local and global markets.
For more information about the unique value that
Nokia Siemens Networks brings to operators:
• Uniting communities
• Business transformation
• New revenues
• Operational efficiency
• New growth markets
• IP-centric convergence
• Environment
• End-to-end expertise