SFR's Network transformation 

As the second largest mobile operator in France, SFR currently commands 64% market share of the 3G network and 36% of the 2G network, with network coverage encompassing the entire country. Vivendi, a European media conglomerate, holds a 56% stake in SFR, whereas Vodafone holds the remaining balance of 44%. Backed by these two industrial giants, SFR was able to acquire Tele2's fixed network in 2006, incorporating several million fixed network subscribers of Neuf Cegetel and Tele2. SFR's ambitious aim is to increase its market share by offering more innovative convergence services to its customers. 

SFR has launched two new convergence services: Live at Home (L@H), which largely targets family subscribers, and the SFR Box Office (SBO), which targets enterprise users. One attractive feature of the L@H service is that subscribers can bundle the mobile phones with the PCs. When broadband access is available, subscribers can enjoy preferential tariff and reduce their roaming fees by a significant margin. The SBO service's primary aim is to provide enterprise users with various Centrex services (like fixed, mobile, and fixed-mobile) and VPN services. These services are tailored to meet the requirements of enterprise users, and help them improve work efficiency. 

Value-added services, however, tend to vary with different networks. SFR has to maintain voice, data, and IPTV networks simultaneously with high O&M costs. The huge resource consumption reduces the profit margin created by large-scale expansion. Moreover, different networks, varied services and complex operations make SFR difficult to roll out new services and fail to respond quickly to an ever changing market environment. 

Relying on its existing mobile and broadband networks, SFR needs to converge its networks to optimize resources, reduce OPEX, and leverage its legacy network advantages. SFR also hopes to reorganize its L@H and SBO services to speed up service convergence and meet subscribers' increasing requirements on multimedia services. As a result, SFR can see its brand value and core competitiveness improve substantially, laying a good foundation for future development.

In order to make its goals become a reality, SFR needs to simplify the network architecture, while enabling fixed and mobile networks to use a convergent core network.

Five-phase of all-IP transforming

After SFR opened up bidding for its convergent network project, several major suppliers from the globe submitted their bids. In the midst of a highly competitive environment, SFR chose Huawei, not only for its IMS solution, but also for its abundant experience in the area of fixed-mobile convergence. In July 2008, SFR and Huawei signed a contract to this effect.

Aiming at transforming SFR's networks as soon as possible, network planning experts from SFR and Huawei jointly performed a detailed analysis on SFR's existing networks and services. They also took future market requirements into consideration. Based on SFR's requirements, the IMS solution will be implemented in five different phases over the course of two years. These five phases include:

Interworking on the IP plane: By deploying media controllers and media gateways, SFR interworks the fixed core network, mobile core network and value-added service platform. This provides a foundation for entire network convergence.

Initial convergence of personal services: By using IMS platform to provide IP voice services, L@H enables subscribers to bind their mobile numbers with PCs. SFR further aims to evolve the L@H service into a group communication platform based on the mobile Internet, realizing P2P services such as voice, video, and SMS.

Convergence of broadband access and IMS: Integrate the DSL-based IP voice service into the IMS platform, gradually replace traditional services such as emergency call and portable number provided by the PSTN. This would also include interworking with the existing SFR platforms related to self-service, charging, and service provision.

Convergence of enterprise services: Integrate SBO services on the IMS platform and migrate typical enterprise services such as Centrex and VPN into the IMS system.

Full convergence of fixed and mobile accesses: Full service operation will be realized after wireless broadband is applied in a wide range. By providing SIP handsets, SFR will be able to provide call, SMS, game, and other IMS services on the mobile packet network. Service quality can also be ensured through a QoS management mechanism.

These five phases will help SFR evolve its network and service platforms into a future-oriented fixed-mobile convergent architecture, which will in turn allow it to prepare for the coming fierce competition in full service operation. The native access independence of IMS ensures that fixed and mobile subscribers are able to share the same core network. IMS can not only provide mobile subscribers with value-added services similar to L@H, but can also provide voice and other value-added services. Since these services share the same core network, TCO can be greatly reduced.

By deploying the IMS network provided by Huawei, SFR was able to move all fixed voice subscribers distributed on a dozen Cirpack platforms to a unified core network.Furthermore, all voice broadband subscribers will be able to access the IMS network through SIP terminals and SBH (home gateways). By eliminating legacy switches and SIP servers with low capacity, SFR was able to greatly simplify its network architecture. As a result, the OPEX has been reduced by a substantial margin. What amazed SFR is that the number of full-time employees working in the core network department is one third of the previous. The IMS-based new core network will certainly help SFR to develop faster and better services to its subscribers in the near future. 

"Huawei's advanced IMS solutions will enable SFR to offer a whole suite of innovative services to our customers in the most cost efficient manner and enable convergence, and thus we'll be able to achieve our strategic business success," recently stated Frank Esser, CEO of SFR. 

With its successful deployment of convergent network, SFR has now found the right partner of Huawei, which will help it to fulfill narrowband-broadband, fixed-mobile and service convergence.

About SFR

With a 11.5 billion Euros turnover end of 2008, SFR is the second largest French telecommunications company and Europe' s largest alternative operator supported by stable shareholders (Vivendi 56% and Vodafone 44%).

By opting to take control of Neuf Cegetel, SFR is now a global operator, with its own mobile and fixed infrastructures, capable of meeting the needs of its entire customer base: the mass market of residentials, professionals, businesses and operators. The launch of the "neufbox" by SFR in early October 2008 is an example of the quality SFR service strengthening the group' s broadband offer.

At the end of the year 2008, SFR has 19.7 million mobile customers, including 5.9 million 3G/3G+ customers, 3.9 million high-speed Internet customers and 194,000 companies' sites connected. 

For more information about SFR, please visit http://www.sfr.com