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					                               Xavier Voisin - Mission Report

                                Workshop on the Economics
                           of Next Generation Networks (NGN)
                         19th – 23rd June, 2006 - Kampala, Uganda

The workshop was organized by AFRALTI and the ITU Centre of Excellence (CoE) for the English-
speaking countries in Africa in order to build up a relevant capacity for the professionals in the region.
The workshop was held in Kampala on request of MTN Uganda and was specifically oriented towards
network evolution/migration and introduction of new services for established mobile operators moving
to full service provisioning.
The objectives of the workshop were 1) to provide an in-depth understanding of the upcoming
evolution of the existing networks towards the Next Generation Networks (NGN) and of the deep
economical changes associated with the technological innovations, 2) to create awareness on the new
attractive communication services associated with broadband accesses and packet infrastructure, 3) to
develop the capacity of building the relevant business strategies and making decisions on network
upgrade and migrations.
The main topics covered during the workshops were: the new paradigm lying under the words like
“NGN”, the fast growing business related to broadband accesses and associated value-added services,
the business modelling of new communication services, the new network architectures and the
associated standardisation effort, the evolution and migration of mobile network to converging NGN
architecture including the IP multimedia Subsystem (IMS), and the impact of technology and service
convergences both on solutions and regulatory issues.

26 people attended the seminar and were actively involved during the whole duration of the seminar.
Participants were coming from various departments of MTN, including Switching, Transmission,
Network Planning, fixed and mobile Operations, Data and IP Services, Strategy implementation, Sales
and Marketing.
The attendance was very much representative of the strong strategic orientation taken by MTN to
develop new services over convergent network solutions. In spite all participants were from MTN
only, the overall background and effective involvement of all the participants made the seminar very
interactive and fruitful. More specifically, the presentation by MTN engineers of the broadband
wireless access (pre-WiMAX) experience launched by MTN was a strong message and illustration of
MTN will to grow its access base and develop an advanced service offer all over Uganda. (See list of
participants in annex)

The workshop was held in MTN training Facilities in Kampala from Monday June 19th at 9.30 am to
Friday June 23rd at 1 pm. A dedicated overview session dedicated to MTN Management was organized
on Friday afternoon at MTN towers (MTN headquarters) in Kampala.
The workshop was opened by Mr Mike Nxele CoE Programme Co-ordinator for English speaking
countries of Africa in presence of Mrs Sheila Bwango of MTN.
Participants presented their domain of responsibilities and their expectations. After an introductory
presentation on the concept of Next Generation Networks by Xavier Voisin, Mike Nxele presented the
growth and global trends of VoIP and its implication for Africa.

                                                            ITU/BDT Workshop on the Economics of NGN
                                           Xavier Voisin - Mission report – MTN Kampala, June 19-23, 2006
The workshop included interactive sessions animated by Xavier Voisin and Mike Nxele, two work
group sessions and complementary experience sharing sessions. The major workshop interactive
sessions were as follows:
- Business development model for broadband accesses and associated services (Xavier Voisin)
In many countries the broadband revolution is driven by DSL penetration and NGN deployment. The
session included an in-depth presentation of Multimedia Service providers’ business model, including
introduction of high speed Internet and further value added revenue-making services over broadband
accesses. A detailed review of the effective business experience of DSL service providers worldwide
was presented, including pricing strategy and progressive development of voice, video and other
multimedia services. This was complemented by a review of early Broadband deployment experience
and pricing strategies with DSl accesses in several countries of Africa.
- New Communication Services, Value Chain, Business Modelling, Workgroup Session on
business development modelling (Xavier Voisin + Work Groups):
Detailed presentation of new services facilitated by an NGN architecture. Dedicated work-group study
case on PCs, requesting the participants to make a choice of 3 new services, define the penetration rate
and the revenue structure of the selected services over 5 years, in a given network development
configuration. The work group session was followed by the presentation of SERVPLUS, the business
modelling tool for NGN related new services and the demonstration and application of the modelling
tool to the work groups results. This brought a fruitful debriefing session, including a review of the
hypothesis and change proposals with real time analysis of the economical impact of each of the
changes (SERVPLUS business modelling tool running with projection of data and results on the
- NGN Technology and Standardization, (Xavier Voisin)
Presentation on NGN architecture and the IP Multimedia Subsystem; status of standardization as
currently specified and defined by ITU-T, ETSI and 3GPP.
- Network evolution/migration strategy for mobile networks moving to full service (Xavier
Presentations of migration strategies from PLMN packet switched and circuit switched network
subsystems to NGN. Presentation of Converged evolution encompassing 2G, GPRS and 3G mobile
solutions, while integrating further Broadband Wireline and Wireless access through the IP
Multimedia Subsystem.
- Global Trends in regulating VoIP (Mike Nxele)
Detailed presentations on the issues about regulating VoIP in different countries and the contradictions
occuring when VoIP, instead of being a lower quality voice service by-passing the telecom
infrastructure, refers to a value added telecommunication service, with controled quality on top of
broadband accesses. This was a very interactive and questioning session, certainly impacting the
vision of many of the participants.
- Convergence : impact on telecommunications development and regulation strategies (Xavier
Voisin + Work Groups)
While the domains of Internet, fixed and mobile telephony were regulated as separate domains up to
now, it appears that the convergences between devices, networks and services are becoming more and
more evident and necessary. The new potential of Broadband Wireless Access technologies, the recent
evolution of Service Providers strategies, the changing regulation policies and the converging
solutions developed by suppliers were presented and discussed.
This was followed by a work group session, in which the participants were invited to analyse a study
case and present their analysis and strategy proposal in a plenary session. Based on a given
competitive situation (relevant to African countries) each group had to propose and define:
    1. How regulatory conditions should evolve in order to facilitate the overall development of
        telecommunication facilities in the specific country case?
    2. What might be the strategic orientations to be taken by the different actors to ensure optimum
        and profitable development?

                                                           ITU/BDT Workshop on the Economics of NGN
                                          Xavier Voisin - Mission report – MTN Kampala, June 19-23, 2006
The presentations by the rapporteurs of the work groups were of excellent quality showing how much
the participants had the new network and business orientations already present in their mind and how
much the previous sessions had been successfully understood.
- Experience sharing presentations
- Presentation by Grace Aliakai on Interconnection issues in Uganda. The major issue faced by
mobile operators in countries like Uganda is the deep disequilibrium induced by an incoming traffic at
10 times the originated traffic. The overall economy of MTN mobile activity is entirely depending on
interconnection fees.
- Presentation by Benjamin and Simon from MTN on Broadband Wireless Access solutions and the
deployment of MTN IP/MPLS network.
Under a Rural Connectivity project partially funded by UCC, MTN is currently in test phase for pre-
WiMAX - IEEE. 802.6.d fixed application. The project include 22 sites with BWA microcells and 16
sites in CDMA technology over 22 districts (out of 32 in Uganda).
An IP/MPLS network is already being built by MTN Uganda. It will serve as overall backbone for
MTN, will provide IP-VPN services to enterprises and will allow the implementation of NGN
architecture and services delivery solutions.
Comments and Suggestions from the participants
Many participants were already concerned by the issues handled in the workshop for their day to day
work. Many participants expressed that the overall workshop content was very much in line with MTN
vision for the future and with the directions already taken by MTN.
Some people found that the content is too much for one week only and expressed the wish to have the
workshop spread to more people in the company, while specializing the training for Sales, Marketing
and Engineers in separate programs.
Several expressed their interest in SERVPLUS tool. (The tool, being maintained as an educational tool
only, cannot be used directly for business planning, but it can be adapted for specific project by
entering into the worksheets details. A copy was handed to a few people.)
An important concern is how much these new value added services and business models can fit with
the specific situation in countries like Uganda, Congo or Afghanistan type of countries with poor
electricity distribution and low revenues.
Satisfaction measurement (21 evaluation sheets):
    - This session has been very interesting............................       84.5 %
    - I will be able to apply everything in my work.................           74.7 %
    - Everything was new.....................................................  53.2 %
    - Everything was very concrete and practical....................           66.8 %
    - I understood everything................................................. 73.8 %
    - The documents and AV aids were very helpful................ 76.9 %
    - The instructors were very clear....................................... 80.9 %
Detailed results of the evaluation is available with written comments (Workshop evaluation Kampala
June 19-23, 2006.xls)

The participants were already involved in building converging solutions and evaluating broadband
wireless access solutions. The facilitators were very much impressed on how the content of the
workshop and the orientations it supports were meeting the strategies already initiated by MTN
Uganda and the orientations taken by Uganda Authorities.
Uganda is one of the first countries in Africa having understood that there is a strong potential of
positive competition between the former incumbent operators and the new dynamic mobile service
operators, both going to full service and implementing the NGN converging network solutions. The
discussions held with MTN management on the last day shown a common strategic vision in

                                                          ITU/BDT Workshop on the Economics of NGN
                                         Xavier Voisin - Mission report – MTN Kampala, June 19-23, 2006
deploying the new Broadband Wireless Access solutions with NGN service delivery architecture
rather than going for 3G licences.
As such Uganda and more specifically MTN development may be considered as a model for the
region. Success of above strategy is to be watched carefully as it may bring new development models
for Service Providers in developing countries. The facilitators were impressed by the positive
interaction between the representatives of various departments in MTN organization and expect that
the workshop contributed in enlarging and re-enforcing this shared understanding and vision among
the participants.

Attachments:   Programme - NGN Uganda 2006.doc
               LIST OF PARTICIPANTS-NGN Kampala 2006.doc
               Workshop evaluation Kampala June 19-23, 2006.xls

                                                         ITU/BDT Workshop on the Economics of NGN
                                        Xavier Voisin - Mission report – MTN Kampala, June 19-23, 2006

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