No sooner have we all finished celebrating the New Year, than we have another major event to look forward to. It is only a month until the 3GSM World Congress opens its doors to a glittering array of exhibition stands and vast crowds of visitors. The World Congress has become so pre-eminent that it sometimes seems that the year consists of either talking about the last event or preparing for the next. As ever, Cerillion will be in Barcelona, seeing customers and partners old and new. We would be delighted to meet you at our booth in Hall 2, Stand 2D65 where you can also pick up your invite to the Cerillion Tapas Bar!

In this issue our lead story looks at IPTV and Triple Play, which have been very much the telecom industry’s ‘big things’ in 2006. This is a potentially huge market opportunity which has attracted a number of new players. However, succeeding in this market will not be easy and the new players will need to implement the right business and network strategies if they are to win customers from the incumbent operators.

It is always pleasant to have your efforts recognized, so all of us at Cerillion were delighted when we were nominated as one of Britain’s fastest-growing private technology companies in the Sunday Times Microsoft Tech Track 100. This is a league table which ranks companies by sales growth over the period 2003-2005; Cerillion grew its sales over this time by 42 percent per year.

And we are building on this success and opening up new markets. With an established customer base in the Caribbean we are expanding into Latin America, one of the most exciting and fast growing telecoms markets in the world. Our new Business Development Manager Melvin Hodgson has many years of experience in the Caribbean and Latin American ( CALA ) region and in an interview with Evolve he outlines the challenges and opportunities that these markets offer. As part of our efforts in the region we recently delivered, in conjunction with Lucent, a highly successful interconnect billing workshop at the Caricam Mobile 2006 event in Puerto Rico.

In other global news, Cerillion has announced plans to open a new facility at Cybercity Magarpatta in Pune, India. The company is expected to start operations at the new site imminently so it’s time to dust off the gym kit, power up the smoothie maker and get fit for another successful year!

It’s The Quality of Mulitplay Services That Counts, Not The Quantity

As a triple-play subscriber for the past 4 years, courtesy of my Cable provider, it’s hard to get excited by all the industry hype surrounding bundles of TV, Broadband and Voice. Been there, done that, and worn out the t-shirt. As they say. In markets where there is no Cable infrastructure the attraction is clear, but where Cable exists, why would anyone choose a telephone company to supply their TV service?

In fact in countries like the UK , USA , Germany and Taiwan , where the digital Cable infrastructure is well developed, it is hard to see how a new entrant based on IPTV can really develop any significant market share at all. Sure, there will be 10 or 20% of the market, which may be attracted by some lower cost deals, but will that attract the right sort of customers? In many cases these will be the first customers to phone the call centre and complain if the service is not as it seems.

The established cable and satellite providers have already made their infrastructure investments and have the all-important content partnerships in place. In many cases they have learnt the hard way, negotiating rights to top sports events, or dealing with the Hollywood studios for the high-end premium content. They have also ironed out the many network issues when it comes to providing a high quality of service. For them, adding new features like the Personal Video Recorder (PVR) or a range of High Definition (HDTV) channels can be controlled through sequential rollouts and upgrades of valued customers.

For an IPTV new entrant to hit the market with new technology and a compelling range of premium content, it is absolutely critical that it will all work as planned on day 1. There is no margin for error as service disruption or teething troubles could kill the service before it has the chance to get off the ground. It should be borne in mind that the issues don’t just stop at service delivery.

At a first glance the impact on the Business Support Systems (BSS) may not appear to be that great, however with new challenges in areas such as order management, payment handling and bill presentation, overlooking the BSS factors could lead to serious implementation delays or in the worst case launch failure. The degree to which Operators are able to recognise, accept and embrace these challenges will ultimately dictate the degree of success or failure of their IPTV and multi-play strategies. In particular it is critical to address the real-time inter-operability required between the Network, OSS and BSS layers in order to meet their customers’ overriding need for a quality experience, including simplicity of use and value for money.

However it’s not all doom and gloom for these IPTV new entrants. The whole culture of TV usage is changing as the market becomes fragmented and consumers no longer sit down as families to watch one of a handful of terrestrial channels. The growth in internet usage, including video-sharing sites such as YouTube and a host of other look-alike sites are changing the way consumers want to view, store and search their preferred video content. The combination of Set Top Box (STB) and TV will become a focal point for accessing a wide range of interactive multi-play services.

In this environment, the Cable TV model where all channels are broadcast to the subscriber and the Set Top Box manages the access is becoming less and less viable. As the volume of content and channels increases, it becomes ever more challenging to use this bandwidth intensive delivery method. Whereas IPTV takes a different approach, delivering one program or request at a time, using multicasting with Internet Group Management Protocol (IGMP) for live television broadcasts and Real Time Streaming Protocol (RTSP) for Video-on-Demand (VoD). It seems that this model is far better suited to the evolving user behaviour we are seeing today, and perhaps the Cable and Satellite providers should be the ones worrying as their infrastructures start to creak under the need for more and more bandwidth, but with declining revenues from their broadcast advertising.

Innovation is not just the domain of the technologists and marketers. The success of multi-play offerings requires innovation and creativity across the whole delivery and service chain. Implementing a complex Network, OSS and BSS infrastructure that delivers a quality experience to the subscriber whilst providing the Operator with the capability to flexibly manage the commercial risks is no trivial task. With these challenges and the importance of getting it right first time, it remains to be seen which Operators will have the vision and innovative flair to succeed.

The UK may well have an established Cable TV market, but when an industry heavyweight such as BT enters the fray with its “Vision” IPTV product, they must have something to shout about. The previous IPTV new entrant, Homechoice, has suffered badly due to restricted coverage areas. However BT’s broadband footprint immediately opens a much larger market, and we will be watching with interest as the BT Vision service commences rollout after their announcement at the beginning of December. In the meantime, my contract with our Cable supplier has just expired, and the arrival of a competitor in the shape of BT means negotiating a new deal just became a whole lot easier.

Dominic Smith
Dominic.Smith@cerillion.com

An interview with Melvin Hodgson, CALA Business Development Manager, Cerillion Technologies

Q. Melvin, welcome to Cerillion. Tell me about your role and Cerillion’s plans for the CALA region?

A. Cerillion have achieved a significant market share in other parts of the world and as a native of the CALA region, I see a great synergy and significant opportunity to expand our footprint in these markets. My primary role as business development manager is to penetrate new countries and accounts, particularly focussing on our Convergent CRM & Billing and Interconnect offerings, as well as our managed service capabilities. We will be promoting our portfolio at major telecommunications conferences and exhibitions in the region, as well as driving market awareness through workshops focussing on key industry topics. For example, we recently led a very successful interconnect billing workshop at the Caricam Mobile 2006 event in Puerto Rico.
Click here for the Cerillion Event Report: Interconnect Billing Workshop at Caricam Mobile 2006

Q. Cerillion has already had some success in the Caribbean market, acquiring customers in Antigua , Guyana and Cayman over the last 2-3 years. How do you see this market evolving and how are Cerillion addressing these challenges?

A. Having an installed customer base provides a solid foundation for us to expand our presence in the Caribbean . The region is undergoing similar changes that we have seen in other markets, with de-regulation now a big topic in some countries providing a good opportunity for us to strategically position our interconnect product. De-regulation has also brought the arrival of a new wave of competitive operators in the region, also presenting us with significant growth potential. Our pre-integrated CRM & Billing solution and Interconnect Manager product are well matched with the market requirements and provide a fast time to market and very economical total cost of ownership. With these market characteristics we are confident of achieving further success in the region.

Q. Latin America is a new market for Cerillion. What are your plans for growing the Cerillion customer base in this region and what challenges does entering a new market bring?

A. Latin America is a very specialised market with fierce competition across the region including the large incumbent operators and a mix of new entrants and multi-country investors such as Telefonica and America Movil. The level of competition means intense focus on new services and time to market is critical for operator success. The key challenge for us is building the Cerillion brand in the region, to make operators aware of our portfolio and capabilities. Our experience in other markets provides us with the track record of success in fixed, mobile and convergent operators, and leveraging our local language skills and regional support centre in Florida , we are confident in our ability to deliver cost effective solutions in this market.

Q. With the growing use of low cost VoIP services threatening traditional revenue streams, how do you see the market evolving over the next 2-3 years? Is this market developing as quickly in CALA as elsewhere in the world?

A. VoIP is a challenge, and opportunity, in every market worldwide. In this regard, CALA is no different from any other market, however due to the lower ARPUs compared with Western Europe for example, there is much less margin on the traditional POTS lines to offset the VoIP threat. It is therefore essential for the carriers to position their own VoIP services to either pre-empt or counter the competitive propositions, providing low cost and reliable VoIP services for the price sensitive market segments. Investment in Next Generation Networks (NGN) will also provide operators with a more cost efficient infrastructure for delivering a wide range of services including VoIP.

Q. What does this mean for the carriers’ business support systems and how are Cerillion addressing these issues?

A. Many low cost or “free” VoIP services operate on a strictly no frills basis. If the service quality is poor, then there is little in the way of support infrastructure or service level agreements to rectify the problems. Similarly, the lower the cost, the lower the expectation of the users. Carriers really need to ensure that when investing in new network and service technology, they also address the billing and CRM challenges to provide a quality and valuable experience for their customers. The Cerillion product suite supports all types of telecom technologies and is already proven to support a wide range of IP-based services including VoIP and multi-play service bundling. From efficient order management and provisioning, to accurate billing and self-service account management, Cerillion provides all the tools needed to make the most of the IP opportunity.

Q. And finally, how does Cerillion’s managed service fit in to the overall picture?

A. Our managed service proposition is very well suited to the region, helping to address the issue of CapEx by moving to a predictable and manageable OpEx cost structure. Operators in CALA also face the challenge of recruiting skilled staff for some of the key technical roles. Our managed service is delivered by a team of technical experts and can be viewed as a long term strategy or an interim solution whilst key staff are recruited and trained.

Melvin can be contacted at:
T. +1 954 961 0676
E. Melvin.Hodgson@cerillion.com

Cerillion Event Report: Interconnect Billing Workshop at Caricam Mobile 2006

At the recent Caricam Mobile 2006 in Puerto Rico , Cerillion and Lucent joined forces to deliver a comprehensive interconnect billing workshop in partnership with CANTO—The Caribbean Association of National Telecom Operators. Attended by a mix of operators, regulators and consultants from across the Caribbean region, Cerillion and Lucent teamed up to share their knowledge and experience of interconnect billing and settlements from around the world, and help address the challenges in the Caribbean markets.

Chris Ankers, principal consultant at Cerillion, presented the importance of formal interconnect agreements and the implications of multiple agreements in terms of optimal routing and the threats from revenue leakage. Case studies from Cerillion customer implementations provided examples of revenue maximisation and cost reduction techniques, and highlighted the value in setting interconnect key performance indicators (KPIs).

Bob Hallahan, BSS professional services manager, Lucent Worldwide Services, provided further insights into the interconnect challenges faced in the Caribbean market, and joined Chris in discussing the merits of the clearing house model. Participants also debated the challenges of IP interconnection, content settlements and international VoIP.

A case study, presented by Selby Wilson, telecoms strategist, Caribbean Telecommunications Union ( CTU ), illustrated the importance of the regulatory approach to interconnect, and made recommendations for regulators in other markets to learn from the experiences in Trinidad and Tobago .

Commenting on the workshop, Joyce Roosblad, Manager Carrier Relations, Telesur Suriname , said “I was very impressed by the workshop. Especially the information about the interconnect agreements and the impact on operator’s cost; also the opportunities and threats from multiple agreements.”

“The de-regulation happening across the Caribbean market means that interconnect is becoming increasingly important,” added Regenie Fraser, Secretary General, CANTO. “Cerillion’s interconnect expertise and Lucent’s solutions consulting track record combined to provide an excellent workshop, and we look forward to conducting similar sessions with them in the future.”

To discuss further details of the workshop, or to find out how Cerillion can help solve your interconnect billing challenges, please contact us on: info@cerillion.com

Cerillion Technologies Breaks into List of Britain’s Fastest-Growing Unquoted Technology Companies

Formed in 1999, after a management buy-out, led by chief executive, Louis Hall, of Logica’s customer care and billing division, the London firm has grown organically ever since. It now has more than 35 installations and customers include leading industry players like BT, Cable & Wireless, O2 and Pipex. Cerillion is backed by private equity fund managers, Baird Capital Partners and Tempo Capital Partners LLP.

Hall says: “Our achievement in appearing in the Tech Track 100 demonstrates the success of our unique bundled component product strategy. Service providers are increasingly looking to acquire pre-integrated solutions with a low total cost of ownership from a single source and our approach eliminates the high cost and risk associated with integrating multiple products from multiple vendors.

“Equally, as the tag-line “everything over IP” becomes a reality, Cerillion is ideally positioned to guide its customers through the complex billing challenges presented by the migration to broadband, triple play and quadruple play service provisioning,” he adds.

Cerillion is one of just seven companies in this year’s Tech Track 100 identified as telecoms software developers and one of 69 businesses on the list to have recorded a profit in 2005.   Now in its sixth year, The Tech Track 100 is compiled by Fast Track, an Oxford-based research, publishing and networking events company. This year’s list was published with ‘The Sunday Times’ on 24 September 2006 . More information can be found on the Internet at www.fasttrack.co.uk

PC Management Upgrade Cerillion Billing Solution to Drive Growth

London, UK, 16 th October 2006 – Convergent Billing specialist, Cerillion Technologies, today announced that PC Management have signed a new contract to upgrade their existing billing solution to Cerillion 3. The upgrade will enable PC Management to provide improved service levels for their Immix Wireless GSM operation in Pennsylvania , and help drive growth in new markets.

Cerillion will implement upgraded versions of their CRM Plus and Revenue Manager products, providing PC Management with a new suite of tools to improve customer service and speed up time-to-market for new offerings.

“Moving to Cerillion 3 brings us many enhancements including new sales and product wizards, helping us launch innovative services and increasing CRM efficiency and accuracy,” commented Linda Martin, Executive Vice President of PC Management. “Increased performance in Rating and Billing will support our ambitious growth plans, and we are confident that this new release will help us to differentiate our service offerings in our very competitive regional markets.”

Louis Hall, CEO of Cerillion Technologies adds “We have been working with PC Management for 4 years and are delighted they have chosen the upgrade to Cerillion 3. This represents a major step forward in terms of support for next generation services and business models, and we are excited that PC Management will be our first client in the Americas to implement this version.”

Cerillion Technologies Expands Reach with Opening of New Global Solutions Centre in India

The announcement of Cerillion’s expansion comes hard on the heels of news that it has been named among Britain’s fastest-growing private technology companies in this year’s Sunday Times Microsoft Tech Track 100 league table.

Cerillion’s chief executive Louis Hall says: “The main objective of the new facility is to capitalise on the wealth of available local talent and create a diverse skill base, focused initially around product development expertise. We will commence operations building a strong development team, quickly followed by support, managed service and implementation teams. The new Pune office will play a key role enabling us to stay at the cutting edge of new technology, delivering cost-effective, high-quality solutions for customers worldwide.”

Amit McCann, Cerillion’s head of operations in Pune, comments: “We are very excited about setting up the new solutions centre. Pune has a booming software industry and is currently experiencing explosive growth. Building the Cerillion brand here will help ensure we recruit and retain the most innovative, ambitious and highly-skilled employees to deliver services that meet global standards to our international clients.”

Pune’s Magarpatta City , where Cerillion is based, is the first township in India to be awarded ISO 9001:2000 certification and contains a hi-tech commercial area with six million square feet of infrastructure for IT and IT-enabled industries. Cerillion India will grow to staff levels in excess of 200 by the end of its second year of operation.