A Pragmatic LDI Operational Model

1
A Pragmatic LDI Operational Model

• Roshan Shaikh
• Pace University, New York

2
Overview

• A Comprehensive Study of Critical Components of
  Telecom Market
• Telecom Deregulation Policy
• License Categories
• Market Competitors
• Technical Overview of LDI Network
• Develop and Design a Pragmatic LDI Operational
  Model
• Suggested Network Topology
• Basic Model
• Economic Pragmatic LDI Network Criteria - EPC
• LDI Business Profitability - Traffic Type
• LDI Business - Media Factors
• Way Forward
• Suggested Network Topology
• Network Topology Diagram
• Suggestions Recommendations

3
Telecom Deregulation Policy

• Accelerate Expansion Of Telecom Infrastructure
  Services
• Encourage Competition Private Investment
• Maintain An Effective And Well Defined Regulatory
  Regime As Per International Standards
• Unintended Consequences
• New GSM and WLL Operates Are Driving Away The
  Calling Card Industry
• High LDI License Costs (500,000 10 Mil.
  Performance Bond) Remains Challenging
• Unlicensed Terminating and Handing Over, and CLI
  Mapping, Still Continues

4
Telecom Regions of Pakistan

• Pakistan Market is divided in to 14 Telecom
  regions.
• Central Telecom Region (CTR).
• Faisalabad Telecom Region (FTR).
• Gujranwala Telecom Region (GTR).
• Hazara Telecom Region (HTR).
• Islamabad Telecom Region (ITR).
• Karachi Telecom Region (KTR).
• Lahore Telecom Region (LTR).
• Multan Telecom Region (MTR).
• Northern Telecom Region - 1 (NTR-1).
• Northern Telecom Region (NTR-2).
• Rawalpindi Telecom Region (RTR).
• South Telecom Region 1 (STR-1).
• Southern Telecom Region - 5 (STR-5).
• Western Telecom Region (WTR). 

5
LDI Operators of Pakistan
Telecom Regions of Pakistan
1 World Call Telecom Ltd. Central Telecom Region (CTR)
2 Redtone Telecommunications Faisalabad Telecom Region (FTR)
3 Link Direct International (Pvt) Ltd Gujranwala Telecom Region (GTR)
4 Callmate Telips Telecom (Pvt) Ltd Hazara Telecom Region (HTR)
5 TeleCard Ltd Islamabad Telecom Region (ITR)
6 DV Com Ltd. Karachi Telecom Region (KTR)
7 Wise Communication Systems (Pvt) Ltd. Lahore Telecom Region (LTR)
8 Dancom (Pvt) Ltd. Telecom Region (MTR)
9 Burraq Telecom Ltd Northern Telecom Region -1(NTR-1)
10 Warid Telecom (Pvt) Ltd Northern Telecom Region (NTR-2)
11 Telenor () Pvt. Ltd Telecom Region (RTR)
12 Circle Net Communications Pvt. Ltd South Telecom Region 1 (STR-1)
13 Multinet (Pvt) Ltd Southern Telecom Region -5 (STR-5)
14 4B Gentel International (Pvt) Ltd Western Telecom Region (WTR)
6
License Categories

• For Fixed Line Operators
• Local Loop
• Initiate And Terminate Calls Within The Same
  Telecom Regions
• Offer Access To Network For Class 5 Services
• Long Distance And International
• Carry/Switch Voice Traffic From One Region To
  Another

7
Competition

• Pakistan Telecommunication Company
• Limited (PTCL).
• National Telecommunication Corporation
• (NTC).
• Special Communications Organization
• (SCO).
• Cellular Mobile Telephony
• Mobilink, Warid, Telenor, Ufone, CMPAK
• Internet Services Providers.
• Other Private operators

8
Technical Overview of LDI Network

• Long-distance VoIP
• Trunk-level Transport Of Global Switched
  Telephone Traffic Over VoIP TDM Based
  Interconnects With Other Operators
• Switch Calls Traffic From One Telecom Region To
  Other As Specified By LDI License
• Provide Various Other Services Carrier
  Pre-selection (CPS), VPN, Prepaid Calling Cards,
  Etc.

9
Key Factors of LDI Business
S.No. Key Factors Comparative Weights
1 Technology 15
2 Technique 10
3 Vendor 10
4 Implementation Of Other Services Traffic Types 20
5 Media Provider 15
6 Interconnects 15
7 Billing Solution 15
10
Technology Options
Circuit Technology Packet Technology
Bandwidth guarantee Bandwidth is dynamically allocated on as-needed basis
Circuit capacity does not reduce because of other network traffic. May have concurrent transmissions over physical channel.
Circuit costs is independent of amount of data transmitted, resulting in wasted bandwidth More cost-effective, offer better performance
Larger Infrastructure requirement Smaller Infrastructure requirement
Less Secure More Secure
Old Technique Advanced Technique
11
Factors Influencing Technology Selection - Key
S. No. Key Parameters For The Selection Of Best Available Technique Status 1 Related Score Status 2 Related Score
1 Bandwidth Saving Yes 1 No 0
2 Smaller Infrastructure Footprint Yes 1 No 0
3 Highly Secure Yes 1 No 0
4 Advanced Technique Yes 1 No 0
5 Cost Effective Yes 1 No 0
6 Easy To Handle Yes 1 No 0
12
Key Factors - Vendor Selection
S. No. Key Parameters For The Selection Of Best Available Vendor Comparative Assigned Scores
1 Cost Effective 15
2 Strong Technical Support 25
3 Advanced Features 20
4 Reliability 20
5 Interoperability With Others 20
13
Key Factors - Media Provider Selection
S. No. Key Parameters for the selection of best available Media Provider Comparative assigned scores
1 Broad National Backbone 15
2 Availability of redundant paths 30
3 Cost 15
4 Excellent technical Support 20
5 Service Quality 20
14
Traffic Type

• 1-receive International Voice Traffic From
  Different International Carriers For Termination
  Inside The Country. This is the most preferred
  type
• 2-receive Domestic Traffic Of Different Local
  Loop Operators To Transmit Between Different
  Telecom Regions Within The Country
• 3- Transmission Of Originating Voice Traffic By
  Carrier Pre Select, Prepaid Calling Card, VPN,
  Call Centers Etc, Between Different Telecom
  Regions
• 4-receive International Voice Traffic From
  Different International Carriers Transmit It In
  Different Countries As A Transit Network
• Most major LL Operators have their own media so
  they dont need to share their origination
  traffic avoiding LDI network to switch in type 2
  3

15
Interconnects Role in LDI Network

• For The Transfer Of Traffic, LDI Operator Needs
  To Develop Interconnects
• In Order To Become The Optimum Choice For All The
  VOICE Carriers, Interconnects With All The Major
  National LL Operators And With All The Major
  Voice Carriers Become Necessary
• Media Plays Major Role In The Development Of
  Interconnects

16
Key Factors - Establishing Interconnects
S.No. LDI Business profitability with respect to media factor Status 1 Assigned Score Status 2 Assigned Score
1 Number of Points of presence (POPs) in the country Max 1 Min 0
2 Number of VOIP interconnects Max 1 Min 0
3 Number of interconnects with all the National major Local loop providers Yes 1 No 0
4 Redundant National Domestic Private Leased (DPLC) Circuits backbone. Yes 1 No 0
5 Redundant International private Leased Circuits Yes 1 No 0
6 Number of Digital Interface Units (DIU) at each location. Max 1 Min 0
7 Cost of DPLC, IPLC DIUs. Min 1 Max 0
17
Billing Solution - Key
S.No. Parameters For The Selection Of Billing Solution Provider Status 1 Assigned Score Status 2 Assigned Score
1 Reliability Excellent 1 Bad 0
2 Tested/Mature Yes 1 No 0
3 Technical Support Good 1 Bad 0
4 Advanced Features Yes 1 No 0
5 Cost Less 1 Costly 0
18
Basic Model

• 
  y
• BM ? f(X)n ... (1)
• 
  n1
• BM is the Basic Model,
• f(X)n is a function responsible for linear
  operations over x in n sequence of multiple
  unique instances that identify measurable factors
  responsible for
• cumulative profitability index and the network
  strength

19
Basic Model

• F(x)n f(X)n an ...... (2)
• an are the assigned points of each factor as
  shown in table 1 thru table 7
• F(x) is the product of assigned points with f(X)n
  and n is from 1 to 7.

20
Economic Pragmatic LDI Network Criteria - EPC

• 
  n7
• EPC max SF(x)n BM ....(3)
• n1

21
Analytical Approach in Selecting Ideal Parameters

• y y
  y y
• F(X)z max ?f (xa)n, ?f(xb)n, ?f(xc)n, ?f(xd)n
  ....(4)
• n1 n1
  n1 n1

• F(X)z represents the maximum cumulative total
  weight acquired for all major categories,
  including, Technology, Vendor, Media Provider,
  Interconnects, Billing Solution, selection
• xa, xb,. accessible options in the market,
  limited to top y options leading to f(xa, xb,
  ..)n secured score by a given category ton the
  basis of assumptions laid down in the tables, n
  being the key parameters for the selection of
  best available option.

22
LDI Business Profitability - Traffic type

• There are two possible scenarios of LDI Network
  on the basis of traffic type
• 1- Network in which Type 1 voice traffic is
  greater than Type 2, 3 4 traffic.
• 2- Network in which Type 1 voice traffic is
  smaller than Type 2, 3 4 traffic.
• i4
• f(x)n f(x1) / ?f(xi) ....(5)
• i2
• f(x)n is the LDI business profitability with
  respect to the prefer voice traffic type.
• f(x1) is the focus of LDI network operator for
  type 1 traffic.
• f(xi) is the focus of LDI network operator for
  type i traffic. i 2,3 ,4
• To represent the focus of any particular traffic
  type, Operator can use the statistical recorded
  per day average call figures for that particular
  type of calls traffic

23
LDI Business - Media Factors

• i6
• f(X)5 ß?f(Xi) / f (Xc) ....(6)
• i1
• f(X)5 is the LDI business profitability with
  respect to different implemented media
  provisioning scenarios.
• ß is a constant which represent other small media
  dependant profitability affected factors e.g.
  tariff etc for large profitability, ß value must
  be greater.
• f(Xi) represents assigned scores against ith
  media factor, on the basis of the Table-6
  assumption.
• f (Xc) represents LDI business profitability
  scores with respect to cost of DPLCs IPLCs
  DIUs.

24
Suggested Network Topology

• At Least One POP In Every Telecom Region.
• Soft Switch (NGN/All-IP) Used As Central
  Switching Element.
• Signaling Media Gateways Are Required At Each
  Pop.
• Access Gateway To Offer Class 5 (Future) Services

25
Network Topology Diagram NGN/All-IP
26
Conclusion

• Design of LDI Network Must Include All The Seven
  Key Factors Identified The Basic Model
• LDI Network Should Be Able To Use Innovative
  Techniques For The Traffic Origination Beyond The
  Standard Method Of Calling Card And Payphones,
  Such As, Virtual Private Network (VPN), Career
  Pre Select (Cps) Etc.
• LDI Network Should Have
• Media Access In Every Telecom Region
• Broad National Backbone
• Redundant Backup Links
• Tested And Reliable Billing Solution
• Quality Technical Support And Services At
  Reasonable Cost
• Interconnects With All The Major PSTN Operators,
  Local Loop Providers And Mobile Operators In All
  The Telecom Regions

27
Suggestion Recommendation

• Government Must Enhance The Role Of Regulatory
  Authorities, Reduce The Steep Decay Rate Of
  Mature Telecom Services (Payphones, Calling
  Cards)
• Call Tariff Monitoring Authorities Need To Adjust
  Min And Max Call Rates Threshold So That An
  Environment Which Encourage Small And New
  Operators Entries In The Business Is Developed
• Regulatory Operators Should Remove The Priority
  Fashion During Treatment Of Operators
• Small Operators Entrance In The Market, Require
  Incentives Until The Parallel Growth Of Multiple
  Segments Matures