Now, more than ever, you need your network to be operating at peak efficiency to meet the growing demands for network capacity and network intelligence. Whether you’re operating a mobile, fixed or converged network, you’re facing unprecedented demand for an improved quality of experience (QoE) from your customers. You’re also facing increased competition from new content and application players, many of whom are riding on your network for free. To protect your business, you need to address these pressures while containing costs and reducing your total cost of ownership.

Network optimization will ensure that you are operating as efficiently and cost-effectively as possible, while you prepare to transform to an all-IP next generation network. The next-generation High Leverage Network™ (HLN) architecture from Alcatel-Lucent enables you to deliver differentiated services that can satisfy the most demanding customers. The HLN supports new revenue streams that can help you maintain — and increase — the profitability of your business.

Users are embracing high demand web capabilities and increasingly sophisticated applications, both of which are generating huge increases in network traffic. Of course, users simply expect your network to keep up with these growing demands, but your revenue-per-bit is not keeping pace. That puts pressure on your bottom line. At the same time, the competition is shifting and a new ecosystem is evolving. You need to develop new business models that reflect his new reality.

An HLN is the foundation for the Alcatel-Lucent vision of Application Enablement. It is also a key enabler of cost transformation. With an HLN you can scale and manage network capacity to meet increased bandwidth demand while leveraging embedded intelligence in the network to generate new revenue.

Reduce costs: Cost transformation

The Alcatel-Lucent Optimization Solution helps you focus on your core business, and reduce maintenance and operating costs. The short-term savings realized can then be reinvested in new technologies to address longer term requirements.

The figure below illustrates the many functions that can be undertaken when optimizing the network to improve users’ QoE.

Sample ranges of network optimization cost savings are shown below, based on Alcatel-Lucent customer projects. Some savings can be realized in as little as three months.

Access planning — 10% to 25% Multi-segment — 37% to 67% Metro optical — 44% to 49% Tandem analysis — ~43%

Optical backbone — 18% to 63% Optical bandwidth recovery — 15% to 20% Switch consolidation — ~75% Capacity management/consolidation — 10% to 70%

With optimization, you can expect OPEX reductions of 5% to 10% per year, improved QoE, improved capacity management and bandwidth scaling. It is an important step in a longer range migration plan to reduce costs by 30% and offer revenue-rich services.

Alcatel-Lucent undertook an RF Optimization project to help an operator increase the capacity and performance of its network and improve customer satisfaction. The project resulted in cost savings of over $14 M over 5 years, with an ROI of 340%. The operator saw significant savings beginning in the first year.

Improve QoE: Manage capacity and bandwidth

You need to know which factors are affecting users’ QoE and how to reduce churn. You also want to minimize the cost of acquiring new subscribers. And you need to make sure that you can continue to grow your subscriber base without creating congestion. Clearly, you need to improve network utilization and squeeze more out of existing assets so you’re ready for whatever comes your way, whether that’s a whole range of new handsets or innovative applications.

A case study for traffic analysis assessed the impact of new apps on the network. It showed that 1000 gamers were overloading the core with 30% of the traffic.

Network optimization can be a market differentiator, since it impacts both network performance and users’ QoE. Improving both of these will increase customer satisfaction and loyalty. Optimization can be done a few steps at a time so changes can be managed cost-effectively. Any optimization you undertake now will contribute to your ultimate transformation to an all-IP HLN. You can make that bigger move when dictated by your needs and budget availability.

Optimization: Leverage the embedded intelligence of the network

Optimization can include upgrading radio technology, increasing radio access network capacity, policy control, backhaul capacity and more. With increased efficiency and controls, you can deliver advanced applications, attractive content and personalized services that leverage the intelligence in the network (using, for example, location and presence). This leads to increased revenue streams today and in the future.

A case study for capacity management achieved savings of 200,000 Euros per year, with increased call efficiency and call volume, and over 10% subscriber growth with new recurring revenue streams.

To remain competitive in today’s market, you should begin now to optimize your network and your users’ QoE. This will lay the groundwork for a transformation that encompasses supporting innovative models; application enablement for the agility to leverage new opportunities; and a High Leverage Network to ensure scalability and a profitable base for future evolution.

For optimal results, work with a trusted partner who has the necessary experience and understands your strategic plan. Your partner should be able to analyze your current situation and needs, and recommend and help manage the optimization of the network. Ultimately, your partner should also be able to help with the transformation to a next generation network, based on your unique business requirements and resources.