Telecom Sector Modelling 
from a Functional  
Perspective 
Master of Science Thesis 
 
Faculty of Electrical Engineering, Mathematics and Computer Science 
Network Architectures and Services (NAS) Group 
Trans‐sector Innovation 
 
 

 
 
 
 
 
Carolyn Simmonds Zúñiga 
1380613  
 
 
 
 
 
Committee members: 
Supervisor:  Prof. Dr. Ir. N.H.G Baken (TU Delft‐NAS/KPN) 
Mentor:  Ing.  Edgar van Boven (TU Delft‐NAS/KPN) 
Member:  Dr. Ir. Ramin Hekmat (TU Delft‐WMC, CapGemini) 
Member:  Dr. Ir. Robert Kooij (TU Delft‐NAS/TNO) 
Member:  Ing.  John Hoffmans (KPN) 
 
 
 
July 2009 
Final version

Telecom sector modelling from a functional perspective i

 

Copyright ©2009 by C. Simmonds, E.F.M. van Boven, N.H.G. Baken

All rights reserved. No part of the material protected by this copyright may be reproduced or utilised in any form or by any means, electronic
or mechanical, including photocopying, recording or by any information storage and retrieval system, without the permission from the author
and Delft University of Technology.

Front cover: Illustration by G. Aguirrezabal. Concept by C.Simmonds.

 “Señor, me has mirado a los ojos
Sonriendo has dicho mi nombre
En la arena he dejado mi barca
Junto a Ti buscare otro mar.
Tú sabes bien lo que tengo
En mi barca no hay oro ni espadas
Tan solo redes y mi trabajo…”

To the memory of
Aura Zúñiga,
Julia Ortega,
and
Marilyn Castro
 Contents

LIST OF TABLES ..................................................................................................................................................6

LIST OF FIGURES ................................................................................................................................................7
PREFACE .............................................................................................................................................................9
ACKNOWLEDGMENTS .......................................................................................................................................9
SUMMARY .........................................................................................................................................................10

1 INTRODUCTION ............................................................................................................. 12

1.1 PROBLEM STATEMENT ......................................................................................................................13

1.2 RESEARCH GOAL ..............................................................................................................................14
1.3 RESEARCH QUESTIONS .....................................................................................................................15
1.3.1 Main Question ................................................................................................................................15
1.3.2 Sub-questions ..................................................................................................................................15
1.4 RESEARCH METHODOLOGY .............................................................................................................17
1.5 CONCLUSIONS FROM THIS CHAPTER ...............................................................................................18

2 DOMAIN OF RESEARCH ............................................................................................... 19

2.1 SECTORS DEFINITION........................................................................................................................20

2.1.1 Sectors’ network ...............................................................................................................................23
2.2 TELECOM SECTOR ............................................................................................................................25
2.2.1 Telecom Sector definition..................................................................................................................25
2.2.2 Telecom Sector historic overview.......................................................................................................27
2.2.3 Telecom sector actors .........................................................................................................................31
2.3 CHALLENGES FOR THE TELECOM SECTOR .....................................................................................33
2.4 CONCLUSIONS FROM THIS CHAPTER ...............................................................................................35

3 THEORETICAL BACKGROUND .................................................................................. 36

3.1 SYSTEMS AND NETWORKS ................................................................................................................37

3.1.1 Complexity ......................................................................................................................................38
3.2 FUNCTIONS ........................................................................................................................................41
3.2.1 Relation between functions and language..........................................................................................42
3.2.2 Classification of functions .................................................................................................................43
3.2.3 Functions of telecommunications networks.........................................................................................45
3.3 HOLONS .............................................................................................................................................46
3.4 APPLICABILITY OF GRAPH THEORY .................................................................................................48
3.5 CONCLUSIONS FROM THIS CHAPTER ...............................................................................................51

4 TELECOM RELATED MODELS & STANDARDS ...................................................... 53

Telecom sector modelling from a functional perspective 4

 4.1 CRITERIA FOR MODELS SELECTION................................................................................................. 54
4.2 OVERVIEW OF EACH MODEL ............................................................................................................ 55
4.2.1 Open Systems Interconnection Model (OSI) ...................................................................................... 55
4.2.2 Telecommunications Management Network (TMN)......................................................................... 58
4.2.3 Fault, Configuration, Accounting, Performance & Security management (FCAPS) ........................... 60
4.2.4 Design & Methodology for Organisations (DEMO) ......................................................................... 61
4.2.5 New Generation Operations Software and Systems (NGOSS)........................................................... 64
4.2.6 Enhanced Telecommunications Operations Map (eTOM) ................................................................. 66
4.2.7 Other models considered ................................................................................................................... 70
4.2.8 Identification of Telecom specific functions......................................................................................... 74
4.3 CONCLUSIONS FROM THIS CHAPTER ............................................................................................... 76

5 NEW MODEL FROM A SECTOR NETWORK PERSPECTIVE..................................77

5.1 STOF MODEL ................................................................................................................................... 78

5.2 PORTFOLIO MODEL .......................................................................................................................... 80
5.3 HOLON MODEL ................................................................................................................................ 83
5.4 FUNCTIONS MAPPING ....................................................................................................................... 85
5.4.1 Relations between sentence main constituents and STOF/CTOM ..................................................... 85
5.4.2 Variables selection to apply the Holon model to the Telecom sector....................................................... 86
5.4.3 Mapping to STOF/CTOM ............................................................................................................. 87
5.4.4 Mapping to meta-functions.............................................................................................................. 88
5.4.5 Functions mapping to Holon Model ................................................................................................. 89
5.4.6 Most popular functions..................................................................................................................... 89
5.4.7 Isomorphic translation to other sectors and aggregation levels ............................................................. 90
5.4.8 Layered nodes in graph theory studies................................................................................................ 92
5.5 CONCLUSIONS FROM THIS CHAPTER ............................................................................................... 93

6 MODEL VALIDATION....................................................................................................94

6.1 EXAMPLE: EXPECTED FUNCTIONS TO PROVIDE QOS ENABLED NGN SERVICES ........................ 95
6.2 FUNCTION ALLOCATION ADVISE ..................................................................................................... 97
6.3 CONCLUSIONS FROM THIS CHAPTER ............................................................................................... 98

7 CONCLUSIONS AND RECOMMENDATIONS ...........................................................99

8 APPENDICES .................................................................................................................. 104

8.1 APPENDIX A: TELECOM SECTOR LIST OF FUNCTIONS AND MAPPING .................................... 105
8.2 APPENDIX B: ONTOLOGICAL DEFINITION OF SECTOR ............................................................ 106
8.3 APPENDIX C: TELECOMMUNICATIONS IN ISIC REV.4 ............................................................ 108
8.4 APPENDIX D: MODELS ASSESSED .............................................................................................. 111
8.5 APPENDIX E: ACRONYMS ........................................................................................................... 133

Telecom sector modelling from a functional perspective 5

List of tables
Table 1: Research questions answers.................................................................................................... 16
Table 2: Evolution of Telecommunications......................................................................................... 28
Table 3: Graph theory applicability to study functions........................................................................ 48
Table 4: OSI datasheet......................................................................................................................... 55
Table 5: Functions of OSI layers.......................................................................................................... 57
Table 6: TMN datasheet...................................................................................................................... 59
Table 7: Functions of TMN layers....................................................................................................... 59
Table 8: FCAPS datasheet................................................................................................................... 61
Table 9: Functions of FCAPS functional groups................................................................................. 61
Table 10: DEMO datasheet................................................................................................................. 62
Table 11: Functions of DEMO layers ................................................................................................. 63
Table 12: NGOSS datasheet................................................................................................................ 64
Table 13: Functions of NGOSS layers (views) .................................................................................... 66
Table 14: eTOM datasheet .................................................................................................................. 67
Table 15: Functions of eTOM layers (process hierarchy).................................................................... 69
Table 16: Telecom sector specific functions......................................................................................... 75
Table 17: Prime relations between sentence constituents, business domains, portfolios and actors.... 85
Table 18: Mapping of functions to Holon and STOF/CTOM .......................................................... 89
Table 19: Mapping of functions to Holon and Meta-functions .......................................................... 89
Table 18: Basic functions to provide QoS in an NGN ........................................................................ 96
Table 19: Holon layers prime and secondary focus ............................................................................ 100

Telecom sector modelling from a functional perspective 6

List of figures
Figure 1: Problem statement................................................................................................................ 13
Figure 2: Telecom sector as a connecting hub in the sectors’ network ................................................ 14
Figure 3: Research methodology.......................................................................................................... 17
Figure 4: Simplified overview of ISIC Rev.4 ....................................................................................... 23
Figure 5: Sectors’ network graph (example based on ISIC Rev.4) ...................................................... 24
Figure 6: Value added built on a telecom specific fundament ............................................................. 26
Figure 7: Examples of VAS in the Telecom sector surrounding its core business............................... 26
Figure 8: Example of technical platforms implementations in a Telecom incumbent ........................ 30
Figure 9: Convergence enabling factors ............................................................................................... 31
Figure 10: NGN core and access functions.......................................................................................... 31
Figure 11: Basic supply chain model.................................................................................................... 32
Figure 12: General Systems Theory based on Bunge’s ontology ......................................................... 37
Figure 13: Functions allocation flexibility (static mapping)................................................................. 39
Figure 13: Functions allocation flexibility (dynamic mapping) ........................................................... 39
Figure 14: Basic layering principle ....................................................................................................... 40
Figure 15: Function implementation independence concept............................................................... 41
Figure 16: Sentence main constituents ................................................................................................ 42
Figure 17: Functions classification represented in a Cartesian plane................................................... 44
Figure 18: Hierarchic aggregation levels in economy and society ...................................................... 47
Figure 19: Telecom/IT models & standards time-line and their evolutionary relations. .................... 53
Figure 20: OSI model .......................................................................................................................... 55
Figure 21: TMN Logical Layered Architecture .................................................................................. 58
Figure 22: FCAPS functional groups .................................................................................................. 60
Figure 23: DEMO Methodology ........................................................................................................ 62
Figure 24: NGOSS Framework........................................................................................................... 64
Figure 25: NGOSS layered view.......................................................................................................... 65
Figure 26: eTOM Process Map (Level 1 view) ................................................................................... 66
Figure 27: Process hierarchy: Processes and resources......................................................................... 67
Figure 29: Schematic representation of STOF model ......................................................................... 78
Figure 30: Portfolio/CTOM Model.................................................................................................... 80
Figure 28: Example of services provided by Commercial, Technical and Operational portfolio ........ 82
Figure 30: The Holon Model .............................................................................................................. 84
Figure 29: Effect of using Technical and Operational portfolio together ........................................... 86
Figure 31: Functions mapping to STOF/CTOM & Holon Model ................................................... 87
Figure 32: Functions mapping to Meta-functions & Holon model.................................................... 88
Figure 33: Graph visualisation exercise showing “the most popular functions” .................................. 90

Telecom sector modelling from a functional perspective 7

Figure 34: Functions classification (Telecom sector example) ............................................................. 91
Figure 35: Graphs from nodes to holons and multi-tiered connections ............................................... 92
Figure 39: How functions intermediate between end-user requirements and implementations ......... 94
Figure 40: Information systems design from enterprise ontology...................................................... 115
Figure 41: Information systems supporting different aspects in the organisation ............................. 116
Figure 42: Relation between entities, stakeholders and functionalities.............................................. 118
Figure 43: NGOSS Architecture ....................................................................................................... 119
Figure 44: Conceptual work leading to implementation of contracts in NGOSS............................. 119
Figure 45: Relationship between processes, function and data .......................................................... 120
Figure 46: eTOM Level 0 view. Conceptual structure ..................................................................... 122
Figure 36: eTOM layer 0 view and relation with external environment............................................ 125
Figure 48: Functions clustering in TMN........................................................................................... 126
Figure 49: TMN functions allocation and relationships .................................................................... 127

Telecom sector modelling from a functional perspective 8

Preface

This thesis presents the methodology, theoretical background, concepts, and results of the research
conducted in the Trans-sector Innovation team, part of the Network Architectures & Services (NAS)
group of the Electrical Engineering, Mathematics and Computer Science Faculty, Delft University of
Technology.
This work may be of significance to anyone interested in study how the Telecom sector works,
or having affiliation for understanding the relations in different complex networks, especially with an
overall perspective including not only theoretical but also pragmatic aspects, looking for innovation
opportunities, and strategic way of thinking that involves all the components of our society and
economy.

Acknowledgments

My M.Sc. study, and this project in particular, would not have been possible without the support and
help of a group of people, which I would like to thank:
First, I would like to thank NUFFIC for sponsoring my studies in The Netherlands.
With respect to this M.Sc. thesis: thanks to my daily advisor Ing. Edgar van Boven for his
patience, guidance and academic support; his knowledge and instructions helped me to overcome the
challenges in the process of my research. My special appreciation and respect would go to Prof. Nico
Baken. It is to my great honour to have his personal supervision. His comprehensive visions gave me
many illuminations on my work. I also would like to thank Ing. John Hoffmans for his insightful
comments and suggestions during this work. Thanks as well to ir. Antonio PintoSoares Madureira for
his comments and feedback while I was preparing the proposal of this thesis work.
I would like to thank my family, friends and classmates of the 19th floor of the EWI faculty.
Thanks to my parents and brother, their kind words of encouragement and prayers cannot be taken
lightly. Thanks to all those friends, that even from the distance where always close to my heart and
thoughts. Thanks to my Delft’s friends (Karla, David C, Gaby, Paula, Adeola, David A, Steven N).
Without them, I would not have been able to overcome the challenging phases I encountered during
the course of my M.Sc studies. Special thanks to the family Martinez-Romoleroux, who adopted me,
fed me and helped me to relax every mid-day during the final (hard) stage of my thesis work.

Delft, the Netherlands, July 2009

Telecom sector modelling from a functional perspective 9

Summary

Today’s Telecom sectors’ implementations seem to be sub optimal and might even end up out of
control because of the multiple implementation of technological and process functionalities, and
dominant financial focus that complicates removing legacy networks. Even though, there is support
for fulfilling customer needs, the inefficient use of resources can negatively affect the business activities
and profits.
The Telecom sectors’ current evolutionary stage requires a thorough evaluation of all its
current implementations in order to restructure and consolidate them. In order to maintain the vital
telecom contribution to our society and economy, cost optimisations and the ability to keep on
innovating in an increasing complex setting, need to be safeguarded. We know that, apart from
financial difficulties, there are important handicaps in this sector itself: it has an ill-defined set of
functions that has been addressed by different standardisation bodies. This has led to the main
research question, namely:

How to identify a best of breed model which both reflects the current (2009) and the near future (2012)
Telecom sector functionality in order to come up with an advise about optimising its internal functional
structure taking into account the relevant requirements concerning interoperability with other sectors?

The major objective of this study was to identify both the internal and external functions
performed by the Telecom sector and thus reveal how they provide value to the other nodes in the
sectors’ network. The Telecom sector (as defined in this document) is the research domain and
subject of modelling in this thesis. Accordingly, the functional approach deliberately chosen for this
project provides an implementation independent basis of knowledge that could be transferrable from
the Telecom sector to other sectors or to different aggregation levels in the economy and society.
The functions were extracted from well known and commonly used telecom related models. As a
result, from the data mining and analysis applied to those telecom related models, this thesis provides
a long list of 331 functions performed by the Telecom sector. In addition, these functions were
mapped onto other non-telecom sector specific models that have a sectors’ network applicability in
order to confirm the neutrality of the functional perspective. A minority of those functions proved to
be Telecom sector specific.
In this thesis, we present a proposition to classify functions, taking into account two dimensions:
Composition (atomic, composed), and domain of applicability (generic, specific). It is known that the
generic-specific dimension has been considered before; however, in this thesis we have included a new
dimension atomic-composed. These both dimensions are not exclusively, can be applied at the same
time, and are context dependant.

Telecom sector modelling from a functional perspective 10

 0BIntroduction

One of the models studied in this study, providing a sectors’ network view is the Holon model.
This model as well makes use of the fact that natural language can be used to represent the economic
and social context. It has three main propositions:
1. Holons could be considered as nodes in a network
2. A holon is composed of four layers: est, vivit, sensit, intelligit
3. Each holon can interact with other holons in their same aggregation level (left & right), not
only with the holons in other levels of the hierarchy/holarchy (up & down)

Interaction with other holons in the same aggregation level is a proposition presented in this
thesis. The original concept of holon (proposed by Arthur Koestler) implies that holons form a
hierarchical structure (called holarchy), keeping relations with other holons in upper and lower levels
of the hierarchy it is part of.
This thesis includes as well, an application of graph theory to get insights about the set of data
obtained. In this direction, we identified the most common functions in between all the models
assessed by doing an exercise of a graph representation. Furthermore, after studying functions and the
Holon concept, we propose some new questions for the complex networks and graph theory
community:
1. Going from nodes to holons
2. Consider holons being four-tiered structures.
3. Holons looking up and down to other aggregation levels, but also looking left & right within its own
aggregation level. From two-tiered graphs to four tiered graphs, the est layer being the
foundation of three overlays: vivit, sensit, intelligit. Currently, the flows that traverse the
envisaged sensit and intelligit layer are performed by human beings. In the Telecom sector the
est and vivit layer are mainly performed by systems.
4. To open a holon and look inside them, how their internal behaviour is reflected to other nodes
in the network/hierarchy. Opening a holon shows another four tiered network.

The research methodology described in this thesis proved to be suitable to obtain a functional
model. The answer to this “how” question was given via the following steps:
1. Selecting sector specific standards and models based on the proposed criteria
2. Extracting functions from those models and long-listing them (functional portfolio)
3. Mapping functions to generic (non-telecom sector specific) model (testing)

We have obtained a list of functions that was mapped to three selected generic models (STOF,
CTOM, Holon) and to the meta-functions (that are common to all sectors). This led to the
conclusion that it is possible to derive a novel functional model from the existing models, if we have a
focus on a specific target (in our case: to serve the sectors network). The best of breed model we have
chosen is based on the Holon concept explained above.

Telecom sector modelling from a functional perspective 11

 0BIntroduction

1 Introduction

This thesis proposes an inventory of the functions that together constitute the Telecom sector, and a
model from a functional perspective for organising the activities performed by the Telecom sector,
serving the sectors’ network. The inventory of activities (referred to in this document as functions) was
extracted from the study and data mining of different telecommunications related models and
literature review. Afterwards, the identified functions were mapped to other non-telecom specific
models to explore the possibility of translating them to other sectors of our economy and society. This
study intends to give insights that can help optimising the status quo of the Telecom sector, taking
into account that it is part of a sectors’ network, which it is serving by means of a huge amount of
connections on every hierarchical level.
As a result, from a theoretical perspective is provided: an analysis and comparison of various
existing models currently used to classify, explain, and understand the Telecom sector architecture,
processes and functions (OSI, NGOSS, eTOM, TMN, FCAPS, DEMO, TINA, ITU-G.800).
These models were assessed as well, in order to identify each models specific “pros and cons”. A novel
best of breed functional model is provided from a sectors’ network perspective.
From a practical perspective is provided:
a) A top-down description of the current and expected future Telecom functions based on the
best of breed functional model.
b) An advice about how the current situation could be optimised e.g. by identifying duplicated
functions that can be removed both in the Telecommunications Infrastructure (TI) and the involved
Information Technology (IT).

Document Structure
The organisation of this document is as follows: The first chapter presents the problem
statement, goal, research questions, and methodology to addresses this research. In the second chapter,
we define the boundaries of the research domain (Telecom sector) and the challenges it currently is
facing. The third chapter includes the theoretical background to study and to understand the telecom
specific models from a functional perspective, followed by the fourth chapter were these models are
assessed within this perspective. The fifth and sixth chapter are dedicated to explain the mapping of
functions to non-telecom specific models. Finally, chapter seven gives the conclusions and
recommendations derived from this research. The appendices provide a long list of Telecom related
functions and the mappings done, details of assessed models, ontological definition of sector and
relevant ISIC activities.

Telecom sector modelling from a functional perspective 12

 0BIntroduction

1.1 Problem statement

Today’s Telecom sectors’ implementations seem to be sub-optimal and might even end up out of
control because of the multiple implementation of technological and process functionalities, and
dominant financial focus that complicates removing legacy networks. Even though, there is support
for fulfilling customer needs, the inefficient use of resources can negatively affect the business activities
and profits. The Telecom sectors’ current evolutionary stage requires a thorough evaluation of all its
current implementations in order to restructure and consolidate them. In order to maintain the vital
telecom contribution to our society and economy cost, optimisations in cost and the ability to keep on
innovating in an increasing complex setting, need to be safeguarded. We know that, apart from
financial difficulties, there are important handicaps in this sector itself, e.g. it has an ill-defined set of
functions that has been addressed by different standardisation bodies.
How to match the identified current implementation of Telecom sector functionalities with
the desired (optimised) portfolio of functions is a matter that needs a bridging work between
model/standards and practical/real implementations. Additionally, the convergence between IT,
telecom and broadcasting in Next Generation Networks (NGNs) leads to the question about how to
identify the boundaries or integration points between TI and IT platforms. In order to optimise the
current implementations it is necessary to assess the boundaries between TI and IT by proposing
modifications or an integrated process structure that avoids inefficient functions duplicity.

Figure 1: Problem statement

Telecom sector modelling from a functional perspective 13

 0BIntroduction

1.2 Research Goal

From a theoretical perspective, the existence of many telecom related models indicates the lack of a
unified model for the Telecom sector. Is it possible to provide one model that fits all? Probably, this
is not the case. Given the complexity of today’s telecommunications environment, it is necessary to
establish a theoretical approach that can give a supporting framework for describing the functions
performed within the Telecom sector in an ontological way.
This research aims to identify both the internal and external functions performed by the
Telecom sector and thus reveal how they provide value to the other nodes in the sectors’ network (see
Figure 2 below).
The functional perspective, deliberately chosen for this research, offers some clear advantages: Firstly,
functions can be studied apart from their specific implementations. Secondly, many telecom related
models and standards are built over a structure that facilitates the identification of functions. Among
many definition methods, unique functions can characterise the core activities of a sector.

Figure 2: Telecom sector as a connecting hub in the sectors’ network

Telecom sector modelling from a functional perspective 14

 0BIntroduction

1.3 Research questions

1.3.1 Main Question

This thesis consists of literature review, telecom related models data mining and functional analysis.
This work focuses on proposing an answer to the following research question:

How to identify a best of breed model which both reflects the current (2009) and the near future (2012)
Telecom sector functionality in order to come up with an advise about optimising its internal functional
structure taking into account the relevant requirements concerning interoperability with other sectors?

1.3.2 Sub-questions

Answering the main question requires answering the following derived sub-questions:

Related to theoretical perspective

a. What is a functional model? What is a function? How can functions be described

(ontologically)? How do verbs relate to functions?
b. Which models exist that functionally characterize and describe the Telecom sector
and its assets/activities? How do the models relate to each other? What are the ‘pros’
and ‘cons’ of each model?
c. Which layers exist in each model from a functional perspective? Which is the
functionality of each layer?
d. Which functions/functionality currently exists in the Telecom sector? Which
functions are only relevant internally and which are relevant externally providing value
to other nodes in the sector network? Which new Telecom sector functions can be
expected?
e. Can we derive a novel functional model from the existing models?
f. Can graph theory be useful to model the connections enabled by the Telecom sector
in the sector network? How is the applicability of graph theory modified when
adding functionalities to the sector network nodes?
g. Which functions specifically relate to transactions

Telecom sector modelling from a functional perspective 15

 0BIntroduction

Related to practical perspective

h. How is the Telecom sector defined? What are the hard and soft values that the
Telecom sector contributes to economic prosperity and well-being? What is the
unique value add of this sector?
i. Which are the functions, described by using verbs (or nouns resembling frozen verbs),
specifically offered by the operational portfolio (activities that relate to the managerial,
commercial and technical portfolio) thus contributing to functionality of the Telecom
sector as a whole 1
j. Which functionality is offered by the Telecom sector to the sector network taking
KPN as an example?
k. Can we use the existing models or use a new model in order to characterise KPN’s
current and future functionality?
l. Can the existing models and/or a new model help us to understand how to optimise
the current KPN implementation of the identified functions towards a future
functionality of KPN?
m. Which optimisations can be realised from a functional point of view concerning the
current Telecom implementations?

The following table shows the section of this thesis that addresses the answer of each
research question:

Research question Answer in section:

a 3.2
b 4
c 4.2
d 4.2.8, 5.4.5, 6.1, 8.1
e 5, 6.3
f 3.4, 3.5, 5.4.6
g 5.4.4, 8.1
h 2
i 5.2, 5.4.1, 8.1
j 5.2
k 6
l 4, 6
m 6

Table 1: Research questions answers

1
The commercial, technical, operational, and managerial portfolio (actors) each offer value thus contributing to the functionality of the
Telecom sector as a whole. Functions and verbs are strongly related. The operational portfolio can be elegantly described using verbs,
because they refer to activities (process). Both activities clusters related to going concern and innovation can be described in terms of
a function, using verbs. From this perspective, every actor active in each of the four portfolios can be considered to have its own specific
operational portfolio. Indeed, in every portfolio, we will find verbs, functions and processes, but they are dominantly outnumbered in the
operational portfolio.

Telecom sector modelling from a functional perspective 16

 0BIntroduction

1.4 Research methodology

Firstly, literature review provided definitions and answers to the questions related to the theoretical
contribution. Therefore, the analysis of this information aims to provide a new or improved model for
a top-down classification of functionalities within the Telecom sector.
From the theoretical perspective, we aim to bring forward a unified model derived from the
comparison of existing models/standards used in the Telecom Sector from a sectors’ network
perspective. Interviews with experts active in this sector provided information to do a conceptual
validation of the modelling work. Initially, a set six telecom related models were studied in order to
extract the functions. Afterwards, interviews with experts from the Telecom sector allowed us to do a
check for completeness were some missing functions were detected. The missing functions were
found in other models that were added to the initial set, to finally have a set of 8 models for the
functions extraction. A diagram summarising the steps followed to obtain the best of breed model and
the list of functions is depicted in Figure 3.
ITU-T
FCAPS G.800
OSI
TINA
TMN
DEMO
eTOM
NGOSS

Pros Layering &

Functions
& Functions
mapping
Cons list

Missing Yes
Analysis from functional perspective Functions?

Best of breed Telecom sector No

List of
model derivation functions

Figure 3: Research methodology

The modelling was achieved by means of establishing a common understanding of internal

processes, using a standardised sector language for describing and mapping telecom functional
platforms, activities, products, and labour. The list of functions obtained through this process does
not claim to be complete. We encourage anyone to bring up functions that we might have missed in
this research. Furthermore, in time it is inevitable that new functions will arise.

Telecom sector modelling from a functional perspective 17

 0BIntroduction

1.5 Conclusions from this chapter

Concerning models, one-size fits-all does not exist. All models serve for specific aims, professional
communities, views, and disciplines. The challenge is to understand all views and perspectives while
looking at reality. Specifically, this thesis focuses on the activities related to electrical tele-
communications, referred to in this document as functions. The purpose of this research is to obtain a
functional model, in order to set up the Telecom sector in optimal conditions for efficiently supporting
all the connections required by the sectors’ network.
In the same way we construct a building, we want to select the best building blocks (functions)
for the Telecom sector. That is why this project is looking at functions within this connecting hub in
the sector’s network. We can find several hundreds of functions in the telecom related models
provided by different standardisation bodies (see Figure 3). The identification of these functions will
allow us to build and define trans-sector services offered not only by the Telecom sector to the sector’s
network, but also by the Telecom sector in association with other sectors.

Telecom sector modelling from a functional perspective 18

 1BDomain of research

2 Domain of research

This thesis is focused on “Telecom sector modelling from a functional perspective”. Many definitions
of the telecommunications and the Telecom sector exist. The word tele-communications combines the
Greek word tele, meaning ‘distant’ or ‘far ’, and the Latin word communicationem, meaning to impart,
to share – literally: to make common. However, this composed term suggests the possibility of
communicating over distance, the definition of telecommunications also implies communicating over
time. We include “bridging time” here for the reason that transmission of information/data over
distance often implies storage of information/data as well, because communication sessions are not
always real-time.

Telecom sector modelling from a functional perspective 19

 1BDomain of research

2.1 Sectors definition

The evolution of economy and society brought us hundreds of different self-sustaining clusters
consisting of specialised individuals performing specific (homogeneous) activities [1],[2]. This skills’
specialisation is often referred to the term functional decomposition. Sectors are functional entities of
any society and economy performing specific activities to serve other entities in that society or
economy. As humanity evolved, sectors have become internationally organised [1], but still there is no
global consensus in the classification of activities that are part of each sector.
The statistics division of the United Nations (UN) developed a classification methodology to
standardise data collection, analysis, and comparing of economical activities between different regions.
The International Standard of Industrial Classification of All Economic Activities (ISIC) code, groups
together organisations if they produce the same type of goods or service or if they use similar processes
(i.e. the same raw materials, process of production, skills or technology). Although many governments
adopted the ISIC system, still there are some countries (for instance the United States, Japan, Mexico,
Canada, Australia, New Zealand), which keep on using their different domestic classifications systems.
An example is the North American Industry Classification System (NAICS), which is used by United
States, Canada and Mexico.
The original ISIC code was adopted in 1948. The current version of ISIC Rev.4 dates from
August 2008 [3]. The ISIC code is periodically reviewed on the basis that:
1. New types of economic activity become important
2. Harmonisation with other classification systems

ISIC defines the following hierarchy to classify economic activities:

• X – Section,
o xx – Division
ƒ xxx- Group
♦ xxxx – Classes
Where X is a character between A and T, and x is an integer number.
First of all: many sections names resemble or correspond clearly to common accepted sectors
names, but sections are not the same as sectors. The selection of the appropriate activities to be
aggregated into a sector is up to the user of the classification system. In appendix 8.3 gives the list of
sections in ISIC system. Interesting is the part that addresses telecom, while ISIC hints at
Information & Communication (I&C) in section J, at the same time opens the door for alternative
aggregations; for instance, it mentions an alternative aggregate of activities that define what others
communities call the Information & Communication Technology (ICT) sector.

Telecom sector modelling from a functional perspective 20

 1BDomain of research

Divisions in ISIC Section J: Information and communication

o 58 - Publishing activities
o 59 - Motion picture, video and television programme production, sound recording
and music publishing activities
o 60 - Programming and broadcasting activities
o 61 – Telecommunications
o 62 - Computer programming, consultancy and related activities
o 63 - Information service activities

Alternative aggregation examples

ICT Sector mentioned in ISIC Rev.4

This aggregate clusters activities originating from four different sections. Note that e.g. information
creation is left out, thus, more or less suggesting that only IT + CT composes ICT.
ICT Sector
ICT manufacturing industries
2610 Manufacture of electronic components and boards
2620 Manufacture of computers and peripheral equipment
2630 Manufacture of communication equipment
2640 Manufacture of consumer electronics
2680 Manufacture of magnetic and optical media
ICT trade industries
4651 Wholesale of computers, computer peripheral equipment, and software
4652 Wholesale of electronic and telecommunications equipment and parts

ICT services industries

5820 Software publishing
61 Telecommunications
6110 Wired telecommunications activities
6120 Wireless telecommunications activities
6130 Satellite telecommunications activities
6190 Other telecommunications activities
62 Computer programming, consultancy and related activities
6201 Computer programming activities
6202 Computer consultancy and computer facilities management activities
6209 Other information technology and computer service activities

Telecom sector modelling from a functional perspective 21

 1BDomain of research

631 Data processing, hosting, and related activities; web portals

6311 Data processing, hosting, and related activities
6312 Web portals
951 Repair of computers and communication equipment
9511 Repair of computers and peripheral equipment
9512 Repair of communication equipment

OECD ICT Sector definition based on ISIC Rev.4

Another example of an alternative aggregation based on ISIC is the compromised definition of the
ICT sector agreed on by the nations belonging to the Organisation for Economic Co-operation and
Development (OECD). After “lengthy discussions”, content generation was excluded from this
2
definition .
ICT manufacturing industries
2610 Manufacture of electronic components and boards
2620 Manufacture of computers and peripheral equipment
2630 Manufacture of communication equipment
2640 Manufacture of consumer electronics
2680 Manufacture of magnetic and optical media

ICT service industries

4651 Wholesale of computers, computer peripheral equipment and software
4652 Wholesale of electronic and telecommunications equipment and parts
5820 Software publishing
61 Telecommunications
62 Computer programming, consultancy and related activities
631 Data processing, hosting, and related activities; Web portals
951 Repair of computers and communication equipment

Section J of ISIC defines telecommunications as a division within the I&C section, and in the
alternative aggregation examples, telecommunications is considered to be part of the ICT Sector.

2
The OECD provides an alternative agreed ICT sector definition including: deliberations leading to its agreement, the original (1998),
revised (2002) and current (2007) definitions of this sector. [4] OECD, "OECD definitions of the information economy sectors (Annex
1B)," in Guide to Measuring the Information Society vol. JT00193469, OECD, Ed. Paris, France, 2007.

Telecom sector modelling from a functional perspective 22

 1BDomain of research

2.1.1 Sectors’ network

Considering on the one hand, that enterprises can be characterised by their processes and activities [5],
and on the other hand, that sectors are an upper aggregation level of many enterprises, then we can
cluster activities based on an appropriate and globalise agreed classification system in order to define
sectors. Regarding less the classification system used, we can state that society and economy are
divided into different sectors. Clear examples of sectors names are: education, construction, healthcare
and transport [6]. As society evolved, some sector’s activities became less important while new ones
emerged or their functionality was achieved in a different way [1]. Each sector provides unique
functions serving the sectors’ network. Additionally, each sector performs certain generic and sector
specific functions (generic and specific functions will be explained in section 3.2.2). The collection of
homogenous activities, services, infrastructures and actors, related by transformation relations,
characterise sectors and its functions [1], [7].
Taking as a premise that networks are omnipresent [2, 6], we can recognise that our economy,
society and interactions between their components are networks. In the same way as telecom networks,
the sector’s network can be represented as a graph where the sectors are the nodes and the information,
goods, and services traverse the links in between them. Like any other network, it has nodes and links,
additionally their dynamics and flows have a particular behaviour that needs to be understood. The
components of such a network are sectors, and each sector is taking care of a number of specific
activities within our economy and society.

Environmental
care

Telecom Trade Construction Water Energy Manufacturing

Horeca Transport Mining Agri
Information & Communication Households
Other
Finance Real Estate Amusement Services
Prof activities Admin Government Edu Healthcare

Figure 4: Simplified overview of ISIC Rev.4 3

3
Source: Ing. E. F. M. van Boven

Telecom sector modelling from a functional perspective 23

 1BDomain of research

Figure 5 depicts an example of a sectors’ network graph derived from Dutch implementation
of ISIC. The nodes in the central ellipse represent the sections, and the nodes directly attached to
them are the divisions. Figure 4 and Figure 5 clearly show that in ISIC Rev.4, Telecom is defined as a
division within Information and Communication (I&C) section.

Figure 5: Sectors’ network graph (example based on ISIC Rev.4 4)

4
Source: E.F.M. van Boven

Telecom sector modelling from a functional perspective 24

 1BDomain of research

2.2 Telecom Sector

Given the fact that there is no global consensus about the definition of a sector and the activities
that belong to each one of them, this section covers the work done, which aimed for finding an
appropriate definition of the Telecom sector from various angles including its unique functions. We
reviewed many definitions in order to set up the boundaries and scope of this master thesis project.

2.2.1 Telecom Sector definition

On the one hand, international communities have struggled to define an ICT sector (as it was
explained in section 2.1); on the other hand, we have seen from many sources and classifications
systems that Telecom is often mentioned as a sector as well, e.g. the alternative aggregation ISIC A38
[8]. A striking conclusion is that from all known sector names inventoried so far, “ICT is the only that
ends with a ‘T’ that represents technology. The sector names that are commonly accepted (some even
unanimously), never comprise the word technology. Example: Construction sector but not Construction
Technology sector, Healthcare sector but not Healthcare Technology sector. Apparently, something special
happened when modern digital computing/network equipment needs to be labelled in an economic context.
The classification community in this case tends to neglect that even sophisticated digital computing/network
equipment is not more than a tool, an adverbial adjunct” 5 .
Looking back in time, the telecom infrastructures have become a preferred connection, namely
a hub, in the sector network [2], connecting all the sectors’ nodes and the people that work within.
Moreover, people in their private role enjoy the use of telecom services in their own environments and
communities. The dynamically evolving functionality of the Telecom activities can generate new
economical and social value in other sectors because of its central role. For that reason, it is necessary
to have a complete description of what is or could be obtained from Telecom activities grouped as a
sector: it means to expose its functions and services offered to the sector’s network.
For the purpose of this thesis, we consider the Telecom sector to be an alternative aggregation
too, containing all the activities corresponding to division 61, and additionally including the broadcast
function mentioned in division 60 in ISIC Rev.4:

60 - Programming and broadcasting activities

ƒ 601 - Radio broadcasting

ƒ 602 - Television programming and broadcasting activities

5
Quote from E.F.M. van Boven interview.

Telecom sector modelling from a functional perspective 25

 1BDomain of research

61 – Telecommunications

ƒ 611 - Wired telecommunications activities

ƒ 612 - Wireless telecommunications activities
ƒ 613 - Satellite telecommunications activities
ƒ 619 - Other telecommunications activities

From a functional perspective, the Telecom sector could be defined as the sector serving both
economy and society 6, that offers its Value Added Services (VAS) relying on its unique capability of
transferring data by means of electro-magnetic (EM) waves.

VAS 5
VAS 2
VAS 6
VAS 3

Non-telecom specific VAS 1

functions VAS 4

Telecom specific
& unique Data transfer by means of EM waves
functions

Figure 6: Value added built on a telecom specific fundament 7

Legal intercept Via:

Infrastructure KPN.com
Roll out Security Primafoon
……..
Construction Transactions
Data
Transfer

Directory Telephony, Internet access,

Information
TV, Connectivity Information
Services Creation
“1888”
Transformation

Maintainance
Information
Workspots Storage
Protocol conversion
Cybercenters Unified Messaging
“Backup online”
Repair Voice mail Gateway services
“Interactive TV”

Figure 7: Examples of VAS in the Telecom sector surrounding its core business 8

6
Even though ISIC only refers its activities classification system to economy, ontology references define functional sectors as sub-systems of
human society (see appendix 8.2).
7
Dr. Ir. R. Hekmat suggested the concept of this illustration.
8
Source: Ing. E.F.M. van Boven

Telecom sector modelling from a functional perspective 26

 1BDomain of research

When could we use the word data or information?

This is a context-based choice. The word data has been selected for the definition proposed in this
thesis (see Figure 6 and Figure 7), but from the end-user’s perspective, this data has a meaning and
can be enjoyed as information. A body of information produced by a sender and intended, in its
totality, to reach a particular receiver or receivers is called a communication [9]. E.g., The Telco
transfers data via a T-Network between end users, enabling them to exchange information. This
example means that for a telecom company it is not relevant the meaning of the signals it is
transferring, they are responsible for delivery them in the right conditions, but the meaning is
important for the end users.
In the current global communication context the function of the telecommunications
networks is not only to support reliable transmission of sound waves, but also all kind of multimedia
objects in order to allow non-verbal communicative acts to keep the richness of human interaction
while they transact.

2.2.2 Telecom Sector historic overview

Table 2 shows the main milestones in the evolution of telecommunications. In every step new
functions appeared, in consequence, telecommunications emulation of face-to-face communications
shows more sophistication.
In ancient times, tele-communications were performed by means of physical transport of
written information or by means of visual/sound signals (e.g. fire and drums). At the end of the 18th
century, visual telegraph systems, known as semaphores, were used for conveying information over
some miles of distance. During the second half of the 19th century, advances in electrical
telecommunications contributed to develop the telegraph [10]. Telegraphic networks were used to
improve collection and to distribution of information across different places. For instance, in Europe,
news agencies (e.g. Reuters) used them to distribute news. At the end in the 19th century, was even
possible to send a message across the Atlantic Ocean and from London to India.
In current days, people (in their different roles) and machines can use worldwide networks to
exchange any kind and huge amounts of information at any place. Scientific and technological
advances that are enumerated in Table 2, shows the evolution of Tele-communications along last
centuries, supporting the ever-increasing complexity of communications needs. As time passes, the
basic goal of telecommunications remains the same: to achieve communication over distance.
During the end of 20th century and early 21st century, networks’ users experienced:
• Increasing network bandwidth
• Increased access to various networks, especially the Internet
• Mobility

Telecom sector modelling from a functional perspective 27

 1BDomain of research

Century Year Description

Smoke Signals and fire
Ancient

Drum sounds
times

1792 Semaphore (Visual Telegraph) by Claude Chappe

1837 Telegraph patented in UK and in United States
1849 First treaty to link the telegraph systems of 2 states (Prusia-Austria)
1850 First submarine telegraphy cable (France-England)
1858 First telegraphic message across the Atlantic Ocean
1860 Telegraphic cable connection between London and India
Theory of Electromagnetic radiation by Maxwell
1865
19th

First International Telegraph convention in Paris

1874 Duplexing of telegraphic message over a cable (Time Division Multiplexing)
1875 Bell's first telephone
First telegraphic news dispatch to the Boston Globe
1877
Public use of the telephone
1893 First public demonstration of wireless telegraphy
1896 Invention of wireless telegraphy. First type of radio communication
1900 First wireless transmission of a human voice
1927 Public transatlantic telephone service using radio transmissions
1956 First submarine telephone cable
1957 Launch of Sputnik satellite
First satellite communication between USA, UK and France
The Improved Mobile Telephone System (IMTS), precursor of today’s mobile telephony systems is
1960
developed.
AT&T introduced a 2 400-bps modem.
The American Standard Code for Information Exchange (ASCII) developed for encoding alpha-
1963
numeric and control characters into 7-bit binary strings.
The Defense Advanced Research Projects Agency (DARPA) the United States started developing
1968
of the ARPANET, a forerunner to the modern Internet.
1960s Late in the decade, modems appear with speeds up to 9 600 bps.
1974 Initial version of TCP (Transmission Control Protocol) specified.
1975 Ethernet created by Robe rt Metcalfe
1976 Introduction of X.25, landmark achievement in packet-switched technology.
20th

1978 IP (Internet Protocol) established.

1981 Signalling System No. 7 (SS7) paved the way for efficient operation of international networks.
X-series Recommendations on data networks, open systems communications and security jointly-
1984
developed with ISO.
1989 Introduction of SDH key standard for digital information over optical fibre.
Local Area Networks (LANs) emerge as an effective way to transfer data between a group of local
1980s computers.
Telcos around the world start to replace analog with digital multiplexing.
Bell Labs demonstrates 5 Gbit/s transmission of optical solutions over 15 000 km, and 10 Gbit/s
1992 over 11 000 km. One-millionth host connected to the internet.
GSM standard agreed by European standards bodies and firms.
1993 The first DSL standard consented.
1996 Adoption of UIFN (Universal International Free-phone Numbers)
Universal Mobile Telecommunication System (UMTS) third generation mobile standard agreed by
1999
Europe, Japan & US, making high-speed Internet on mobile phones possible.
1990s V.90 56-Kbp/s modems speed-up Internet connections
2004 NGN Focus Group formed to smooth transition from PSTN to packet-based networks.
21st

2006 VDSL 2 further extends the use of legacy copper access networks

Table 2: Evolution of Telecommunications

Telecom sector modelling from a functional perspective 28

 1BDomain of research

IT integration
Along with the complex telecommunications infrastructure supporting the transfer of user’s data,
monitoring and management systems (hardware and software) were developed in order to manage the
complexity of the network while safe warding reliability and availability. Operations Support
Software/Systems (OSS) appeared in the 1980s, those systems must cope with the universe of
telecommunications protocols, numerous hardware platforms, and network configurations [11]. In
the beginning of nineties, OSS standardisation addressed both network systems and network
management. The representative OSS standards are Telecommunications Management Network
(TMN) from TMN and Simple Network Management Protocol (SNMP) from IBM.
Roughly, after 20 years of development, the “Next Generation Network (NGN)” is coming
ever closer to the capabilities and properties that were envisaged in the nineties. The acronym NGN is
often used to easily capture a high-speed multi-service packet data network capable of supporting the
traditional functions of:
• voice networks,
• data networks/internets,
• and even mobility,
by providing quality-assured transmission, switching, and services over IP/MPLS and ATM cores.
OSSs shifted away from network-oriented to service-oriented [11]. The development of sophisticated
software (including OSS) to manage the TI reveals the integration of IT to the Telecom sector.

From stove-pipes to horizontal integration

Formerly, dedicated networks were rolled out for delivering specific telecommunications
services (e.g. telephony via PSTN, data services via data networks, and television via cable networks).
Afterwards, digital technology has enabled telecom networks to support all kinds of traffic and has
reached a new stage with NGNs. Currently, they are considered to be Ethernet networks able to carry
IP based traffic, where different types of services are carried over the same infrastructure.
We can see a shift from an infrastructure and network services approach towards a value added
services approach [12]. In the nineties, one of the most important themes was to move away from the
demarcation between the traditional specialised services (telex, telephone, data, etc.) to Broadband
Integrated Services Digital Network (B-ISDN) [10]. B-ISDN was considered to be the pointer to the
future, the advent of which would have a profound effect in telecommunications. However, B-ISDN
standardisation, mainly based on ATM, was stopped, but it was a step towards services and platforms
integration.
The migration to NGN’s implies coexistence with legacy infrastructure dating from the
seventies, eighties and nineties [7], and on the other hand, modifications to fulfil new customer needs,
forcing telecom providers to think in terms of functionalities, Quality of Service (QoS) parameters and
Service Level Agreements (SLA’s) [13]. Figure 8 provides a contemporary example of a

Telecom sector modelling from a functional perspective 29

 1BDomain of research

telecommunication infrastructure; a network of networks which still evolves from stove-piped

platforms to horizontal layering 9.
Technological changes and development of new services and the increasing competition have
influenced the core business of telecom operators since the 2000 crisis leading to a transformation in
the telecom market. Innovative services, multiple-play offers, are some of the benefits that are being
enjoyed by the customers at lower cost [14]. Additionally, telecom networks must integrate different
technologies and different generations of equipment due to the equipment life cycles that have been
reduced because of market demands and technological innovation. The market is changing as
operators are diversifying their service portfolio from voice only to provide a wide range of integrated
services. In this landscape broadband is becoming the preferred technology to support diversity of
service delivering on fixed and wireless networks. Current multiple-play offerings show the trend
towards converged services. In this progressive path, the next step is to migrate from stove-piped
networks to a modular layered architecture that supports converged portfolios and the development of
new innovative applications at comparable QoS level.

VoIP IMS IP TV Internet

GSM
IP
PSTN
DVB T/H
UMTS
Leased Lines

ATM Ethernet

SDH ADSL/VDSL

WDM

Housing & Energy & Climate & Maintainance

Figure 8: Example of technical platforms implementations in a Telecom incumbent 10

Next Step: NGN migration

Next Generation Network (NGN) is a broadband multi-service network, which can provide integrated
and personalised services (data, voice, video, etc) to the wired or wireless intelligent user agents [15].

9
In telecom’s jargon, this ongoing network evolution is often referred to by expressions like: “from stove-pipes to hamburgers, from
spaghetti to lasagne”.
10
Source: KPN 2008 (E.F.M. van Boven)

Telecom sector modelling from a functional perspective 30

 1BDomain of research

Figure 9 shows the main factors contributing to the convergence of networks, services, and
devices, according to Yang’s framework model for NGN management in [15].

• Digitalization of content Convergence of:

• IP protocol Enable • Networks
• Adoption of Broadband • Services
• Devices

Figure 9: Convergence enabling factors

NGNs provide the platforms that facilitate various kinds of convergence. According to the
OECD policy guidance on convergence and NGN networks, NGNs need two levels of functional
networks: core and access. The intelligence and processing power of a network reside at the outer edges
(access) while the inner network itself remains as simple as possible (core). NGN core networks
provide the application and switching layer for many services, while the access networks (NGA) will
facilitate the delivery of “innovative” services [16].
The convergence of a range of previously distinct applications and services, such as telephony,
video, and data communications, on a single network, yields significant changes in the way networks
are built and the way services delivered. The main functions of each NGN’s layer can be distributed as
it appears in Figure 10. The top layer supports multiple services, using the same network
infrastructure.
Mobile Fixed Data/ TV Multi-play
Voice Voice Internet

Application

NGN Core Service

Functions
Control

Transport
NGN Access
Functions Delivery

Figure 10: NGN core and access functions

NGNs still have to be deployed and stabilised to really support all the traffic and quality
currently served by legacy infrastructure. But it seems that managing and maintaining such a complex
networks will be very costly, e.g. management systems can be overloaded (thousands of alarms, traps,
and network events) when the number of network elements increases and relations between elements
become more complex [15].

2.2.3 Telecom sector actors

The main actors participating directly or indirectly in the Telecom sector are:

Telecom sector modelling from a functional perspective 31

 1BDomain of research

• Service Providers: Considered as companies offering any type of Internet, communications

and/or entertainment service. Service rollouts, integration tasks.
• Network Operators: The owner of network infrastructure who sell both wholesale and retail
network capacity.
o Mobile Wireless Operators
o Cable/Multi-Service operators
• Network Equipment suppliers: Manufacture and sell telecom equipment. (Note that according
to ISIC, Manufacturing is another sector than Telecom)
• Software suppliers: Developers and distributors of software
• Systems integrators: Work to automate business by integrating consulting and multivendor
systems within services providers and network operators.
• Content Providers: Anyone along the value chain that develops and/or delivers
entertainment/content-based services to end-users
• Over the top: Google, e-bay, Amazon, Skype

The interactions between these actors in order to support telecommunications services are described in
the basic supply chain model:

Figure 11: Basic supply chain model 11

Given the definition of the Telecom sector elaborated in this thesis, we can see that currently
the main actors inside this sector are Services Providers and Network Operators, which support the
operation of the telecommunications infrastructure. Other actors as equipment suppliers and content
providers can be included in the supply chain, but not inside the Telecom sector as it is defined in this
thesis.

11
[17] H. Bastiaansen, P. Hermans, "Managing Agility through Service Orientation in an Open Telecommunication Value Chain,"
IEEE Communications Magazine, pp. 86-93, October 2006.

Telecom sector modelling from a functional perspective 32

 1BDomain of research

2.3 Challenges for the Telecom sector

Managing complexity is an issue to deal with in any kind of context where we identify a network or
system whose volume of nodes and links increases as it evolves [18]. For instance, it can be observed
that in 20 years time the Telecom sector has evolved into a highly competitive landscape, gathering
many telecom operators and service providers, which mainly offer connectivity, voice, TV, and
Internet access services to their customers. Dealing with complexity has become one of the main
problems to be addressed in telecommunications systems and networks during last decades [18].
Nowadays, ICT have impacted our entire community, society and economy [2]. Advances in
ICT have influenced the business models and portfolios regarding telecom network operators [19],
service providers, network equipment suppliers and other actors in the Telecom sector.
Factors such as globalisation and technology innovation represent radical challenges to
telecom operators. Globalisation promotes the domestic competition. Global telecommunication
market gives opportunities to some operators because of the economies of scale in telecommunication
network. It also brings radical domestic competition since new entrants enter to the market.
Customers are increasingly free to choose different service components from different vendors and
assemble their own solution. Industry deregulation, globalisation, and IP make the
telecommunication industry full of intensified competition. Companies with large installed base (as
the case of KPN), are facing the competition of new companies. These new companies can offer
(emulate) the same services but with a lower cost because new technologies bring cost advantages.
The telecommunication market involves a shift from a stable market to an increasingly user-
driven market place. In general, actors in the Telecom sector are facing new challenges to cope with
different aspects: Lower network operations costs; introduce NGN equipment faster and with reduced
integration tax; introduce new communications services more rapidly, more competition and fit their
functionalities in response to markets needs and increase customer satisfaction [20]. The success of a
telecom operator will entirely depend on the operator’s ability to create services and applications that
are adopted by the users.
Possible key business challenges
• Improving customer service and experience
• Rolling out new services
• Offering service bundles (triple, quad play)
• Reducing operational expenditures
• New non-traditional competitors
• Satisfy hunger users (asking for higher QoS and low prices)
• Achieve innovation at low cost (optimisation)
• Payback time because of infrastructure investments

Telecom sector modelling from a functional perspective 33

 1BDomain of research

• Continuing explosion in mobile services

• Support increasing bandwidth demand
• Improve time to market
• Functional decomposition
• Mobile/Wireless/Fixed convergence
• Innovation and new services

Telecom sector modelling from a functional perspective 34

 1BDomain of research

2.4 Conclusions from this chapter

The research domain of this thesis is the Telecom sector. There exist many different definitions of the
Telecom sector. The United Nations International Standard Industrial Classification (ISIC) provides
prevalent definitions of all economic (and social) activities, and alternative aggregation examples.
ISIC clearly identifies Telecom as a division inside the Information & Communication (I&C) section.
In this context, Telecom is just one of the activity clusters within the I&C section.
Sectors can be defined as clusters of economic activities that produce the same type of goods or
services or use similar processes. The approach of this thesis assumes that enterprises are characterised
by their functionalities, rather than by their products or technologies. As sectors can be considered a
higher aggregation level of enterprises, it is possible to assume that they can be characterised also by
their functionalities.
In social systems information links play an important integrating role [1]. The Telecom sector
supports those information links; in consequence, we can say that the Telecom sector is a connecting
hub in the sectors’ network (integrating role).
Any communicative act has four main elements: creator, message, medium and receiver [21].
From the evolution of electrical telecommunications, we can see that those four elements are always
present, even if the communication is performed face-by-face, or making use of any
telecommunication method. In a simple communicative act, the medium and the message
representation have been adapted in order to match the natural evolution of communicative needs
between the creator and the receiver and the increasing demand. At the same time, we can state that
advances in ICT should lead to perform telecommunications between any kinds of entities as if the
distance and time do not exist.
Models intending to guide Telecom sector’s actors (facing the challenges already described) must
take into account real world constraints and opportunities to bridge the path between the changing
customer needs and their operational resources [20].

Telecom sector modelling from a functional perspective 35

 2BTheoretical background

3 Theoretical background

In order to study the Telecom sector model from a functional perspective, it is relevant to establish a
common understanding about systems, networks, complexity, layering, and functions. This chapter
provides theoretical support to understand the concepts related to functional models, how language
relates to functions, and insights to investigate the relationship between graph theory and layered-
structured nodes.

Telecom sector modelling from a functional perspective 36

 2BTheoretical background

3.1 Systems and Networks

General systems theory, systemics, and ontology study the properties common to all systems
irrespective of their particular constitution. It provides a basis for the common understanding of some
area of interest by means of an hierarchical organisation of all relevant entities and their relations [21].
This approach can be useful to address common objectives and overcoming problems in different fields
[1], pointing out that:
• Some concepts and structural principles seem to hold for all systems.
• Some modelling strategies seem to work everywhere.

The philosophical framework provided by Bunge in [1] supports the previous statements. The
diagram in Figure 12 shows that study of networks is part of the General Systems Theory. This
provides us with an ontological approach, which can be applicable to any kind of network, also
contributing to discover similarities between systems and to deal with their complexity. In
consequence, we can catalogue networks as systems.

• Automata
General • Linear Unified by philosophical
framework
Systems • Control
• Network
Theory
• General Lagranian

Systemics ≠ Systems analysis

Theoretical Motivation Practical Motivation

To discover similarities The need to cope with the huge and
among systems many-sided systems characteristics
of industrial societies:
• Communication networks
• Factories
• Hospitals
• Armies

Figure 12: General Systems Theory based on Bunge’s ontology

A system is characterised by three main elements: composition, environment, and structure. If “x” is a
system, its components can or cannot be a system in itself. If they are, then they are called sub-systems.
A functional system is one kind of sub-system, which can be defined as sets of coupled processes
occurring in a system “x”.

Telecom sector modelling from a functional perspective 37

 2BTheoretical background

Definition: Let π(x) be the set of processes occurring in x.

The subset πo(x) С π(x) is a functional system of x if every process in πo(x) is lawfully related to at
least one other process in πo(x).

The functions of a system define what the system does. There are no systems without
functions (processes). Every function is related to a system that does the functioning, but the user
defines the function. This means that functions are the neutral independent point that translates user
requirements onto different implementations of a system.

3.1.1 Complexity

As stated in section 2.3, the major problem in the telecom sector over the last decades has become how
3

to deal with complexity [18]. As the variety of components of a system increases, systems become
more complex. The following reasons explain (partially) the increasing of complexity in nowadays
telecommunication networks:
• The need of more standard interfaces (open networks)
• Faster technical development that reduces equipment life cycle
• Integration of equipment from different generations

Functional modelling to deal with complexity

When trying to manage complexity in a system, it is useful to establish different levels of abstraction to
model it. The number of abstraction levels is determined by the degree of flexibility required.
Different modelling methods are used on each level of abstraction [18].
Flexibility is related to the allocation of functionalities in the network components (entities). For
example, in the case of applying functional modelling to telecommunications networks, we must take
into account the following considerations (these considerations could be applied to any other kind of
network):
1. If functions are mapped directly to the network elements, the degree of flexibility is lower.
2. When functionalities are separated and assigned to a physical network entity, the network
architecture becomes more complex while the physical entities become less complex.
3. If functionality is dynamically allocated to particular system elements, then we obtain more
flexibility.

Telecom sector modelling from a functional perspective 38

 2BTheoretical background

Functional Entity Physical Entity Interface

Protocols

Not flexible
Static

Figure 13: Functions allocation flexibility (static mapping)

Functional Entity (Object) Physical Entity Functions

Flexible
Dynamic

Figure 13: Functions allocation flexibility (dynamic mapping)

On the other hand, connections can be permanent or temporary, static or dynamic. When
talking about dynamic connections they are called flows (of energy, matter, fields, data, etc). For
instance, if a physical flow happens to carry information, the connection is called informational and
the entire system is an information system.
If the mapping of functional entities to physical ones is dynamic, then the relations between
physical entities can be defined by functions (see Figure 13 above). This means that functions can
relate any physical entities, because functions are independent of their specific implementation. In this
new network approach is necessary to find out where functions are ‘hanging out’, so a new “trader
function” can perform this new task [18].
When more flexibility is needed then other levels of abstraction, besides the technical one (e.g.
organisation point of view), can help to understand the wider context where the customer concerns are
included [18]. This suggests that in the case of modelling the Telecom sector in the context of a
sectors’ network, it is necessary to include more abstraction levels and views (not only those related to
technical infrastructure), in order to make the model more flexible and capable of dealing with the
complexity of the real world.

Telecom sector modelling from a functional perspective 39

 2BTheoretical background

Layering
Layering is a technique that permits modelling of systems as a logically composed succession of
ordered layers, where a system in some layer supports the system in the next higher layer. Conversely,
the system in some layer uses the system in the next lower layer [22] [21]. Each layer adds value to
services provided by the set of lower layers.
The layered nesting of systems is a very useful notion when describing systems functionalities.
Even though, this concept has been used as basis for systemic studies before 1980 [22], it was
specifically brought to the Telecom sector by its applicability in the OSI model. Layering provides re-
use of functionalities [19], which makes this concept an appropriate base for structuring models of
functional systems. Additionally, layering helps to represent the value-adding characteristic of complex
systems.

Lower layers offer A Upper layers add

services to the upper functionality to the
layers underlying layers
B

Lower layers supply C Upper layers demand

value value
Figure 14: Basic layering principle

Among several methods, some of them have characteristics supporting functional modelling:

Structuring methods
Structuring can be applied to a model for a particular level of abstraction, to deal with complexity at
that level. It is indispensable to keep complexity under control. Functions are useful for defining
structuring methods [18].
• Stratification: It allows establishing of a hierarchy. Some examples of models, that classify
telecom functions into hierarchic layers, are OSI (model used as framework for the functions
necessary for communication), and TMN (architectural concept expressed in functional
division).
• Segregation: Distinct functions are placed in separate functional modules or networks. If
functions are complex and distributed then the segregation is made between different
networks. Functional segregation is the basic principle in newer network designs. Examples of
segregated models are ITU-G.80x, TINA.

Integration Methods
If functional division is defined by means of structuring, then integration must be applied to ensure
coherence between different systems parts avoiding anomalies in systems behaviour [18].
• Horizontal integration: Coordination between different areas (in the same layer) and the
models used there
• Vertical integration: Coordination between layers (hierarchical systems)

Telecom sector modelling from a functional perspective 40

 2BTheoretical background

3.2 Functions

Actions and the corresponding connections are defined for entities. Only “things” or entities can
perform actions.
What an entity does? Its function...

A function is the task assigned to an entity [23]. If a system is composed by several entities,
then the function of each entity contributes to the system’s main function. The specific functions of a
system “are those that the system, but no ‘thing’ of any other kind, is capable of doing” [1].
Functions have no intrinsic relation with the construction, because they are described in terms
of the user [21]. Not always the function of a system is the same as the purpose a stakeholder has in
using it [21], e.g. Stakeholder purpose in using the function of system X is Y. The operation of the
construction (implemented system) brings about the desired functional behaviour of the system. This
concept is represented in the scheme of Figure 15.

FUNCTION Mental GAP: Operation of the

IMPLEMENTATION
implementation in order to bring
about the function (desired
functional behaviour)

FUNCTION
Layer i + 1
IMPLEMENTATION

FUNCTION
Layer i Services in the layer “i” are
IMPLEMENTATION defined by layer “i + 1”

FUNCTION
Layer i - 1
IMPLEMENTATION

Figure 15: Function implementation independence concept

The function of a specific layer supports the implementation of the layer above. The function
of the upper layer supports the construction of the concrete context in with the system operates.
Taking into account the functional perspective, we can recognize that each layer offers services, which
are determined by the actors of the layer above. So those services are described (from a functional
perspective) by the operation of that upper layer.

Telecom sector modelling from a functional perspective 41

 2BTheoretical background

3.2.1 Relation between functions and language

Actions in the physical world, strongly relate to verbs in human language. The execution of actions
establishes interactions between entities. Language evolves at the same pace as society because it is
part of social processes between human beings [24]. In consequence, the relations between the
elements involved in the economic and social context can be characterised by language.

The Telco transfers data via a T-network between end users

The Telco transfers

Finite
Subject
Verb
Verbs

end users Indirect

Object
Direct
Adverbial Object
Adjunct
between data
Nouns

via a T-network

Figure 16: Sentence main constituents

One of the expressions of natural language is the sentence, which is defined as a grammatical
and lexical unit consisting of one or more words, representing distinct and differentiated concepts, and
combined to form a meaningful statement, question, request, command, etc 12. The main syntactic
constituents of a sentence are subject, verb, adverbial adjunct, direct object, and indirect object (see
Figure 16 above). Functions describe “what does an entity do?”, and if we want to answer such a
question then we commonly use a verb. In the example of Figure 16, we can identify the five main
constituent of the sentence: The Telco transfers data via a T-network between end-users. The verb in
that sentence is ‘transfer’, what defines the (main) function a Telco does.
This relation between functions, language and social & economic playfield is relevant when
developing a unified sector ontology (intra-sector) in order to e.g. empower the integration process by
means of [25]:
• Using semantic information.
• Developing and describing their services (exposing each sector’s functionality)
• Using natural language
• A formalised language (e.g. TMF SID)

12
That is: sentences represent and describe transactions.

Telecom sector modelling from a functional perspective 42

 2BTheoretical background

By doing this, dynamic discovery and integration of services will be easier, which enforces
automated trans-sector process development.
The long list of functions (verbs) in appendix 8.1 is an overview of commonalities, layers, relations
& mappings, which exposes the relevant terminology used in the Telecom sector and at the same time
pointing to trans-sector integration.

3.2.2 Classification of functions

Functions can be classified in terms of their applicability to more than one context or in terms of how
they are formed.
On the one hand, it can provide us the tools to analyse isomorphic functional relations with
other nodes in the same network, on the other hand, it provides us information about their
composition, and how we can combine them in order to obtain new functions or innovative ways to
derive them.
Vertical/internal transactions within the nodes:
a. Manipulating value
b. Adding value
c. Transforming value
Horizontal transactions (between nodes):
a. Transferring value

The value exchange, in terms of the vertical and horizontal transactions enumerated above, is
closely related to the meta-functions, which are common to all sectors. These meta-functions are
proposed in [12]:
• To transact, bridging supply and demand
• To transform, changing resources, “half-fabricates” into goods/value to be traded and
maintained
• To transfer, bridging distance and time

Domain of applicability

In [1], Bunge discriminates functions of a sector into generic and specific. Following the same concept,
in the context of a sector’s network, we propose the following function’s classification criteria:

1. Generic-Functions: Any sector can perform these functions. E.g. managing, controlling,
assuring, installing, transmitting, maintaining, and selling.

Telecom sector modelling from a functional perspective 43

 2BTheoretical background

2. Sector Specific: Functions performed uniquely by a sector in the network where it is

considered a node. Taking the Telecom sector as an example, some specific functions are:
broadcasting, establishing data-link connections, transferring data.

Composition

Depending on the aggregation level considered, functions could be classified into atomic and composed.
Labelling a function as atomic or composed is strongly context based; it means that a function labelled
an atomic in the sector aggregation level would be considered composed in a lower level. E.g. In the
sector aggregation level, conducting is considered an atomic function. Now, if we talk at molecular
level, then conducting can be considered a composed function.

1. Composed: These are functions obtained by performing a sequence or cluster of other

functions. E.g. administrating, provisioning.
2. Atomic: These functions cannot be obtained by the combination of other functions. E.g.
conducting (at sector’s aggregation level)

Generic Functions

(Multi-Sector)
META-
FUNCTIONS

Atomic Functions Composed Functions

Specific Functions

(Mono-Sector)

Figure 17: Functions classification represented in a Cartesian plane 13

Each one of those criteria offers a hierarchical way to organize functions but they are not
exclusive, so each function can be catalogued using both of them (domain of applicability and
composition). The representation of it in a Cartesian plane could be as it is depicted in Figure 17
(above).

13
This classification proposal represented by two perpendicular axes is product of the join effort of E.F.M. van Boven, A. Krishnakumar and
C. Simmonds.

Telecom sector modelling from a functional perspective 44

 2BTheoretical background

The applicability of this functions classification is related to the domain considered and the
level of depth we want to achieve in our analysis. For example, a function classified as atomic in the
domain of the sectors’ network, could be classified as composed in a lower aggregation context. In
section 5.4.5, we will give an example of this classification, considering functions identified in the
3

Telecom sector.

3.2.3 Functions of telecommunications networks

Before starting looking for functions in the Telecom sector, it is important to establish first which are
the functions of the underlying infrastructure (i.e. telecommunications networks) supporting the main
function of this sector.
Telecommunication networks are concerned with the conveyance of information/data between
senders and receivers when the senders and receivers are separated geographically. The purpose of a
telecommunications network is to transfer information/data from an input port to an output port.
Since the user is transferring information, we may assume that the user is sending information/data
from one information subsystem to (an) other information subsystem. Ideally, to the user of the
service, the input port to the network should appear to behave as if it were the input of the user's
subsystem at the far end of the network [9]. The end-users can perceive the transferred data as
information, as it was explained in section 2.2.1.
The various functions that constitute a telecommunications network can be classified into two
main functional groups.
1. Transport functional group, which transfers any telecommunications information/data
from one point to another point, and this forms the transport plane. A transport network
can also transfer various kinds of network control information such as signalling, and
operations and maintenance information for the control functional group.
2. Control functional group that realizes supplementary services and operations &
maintenance functions.

The basic telecommunications network mechanisms consist of the following functionalities [19]:
• Design and dimensioning of network topology
• Addressing architecture
• Traffic Management
• Routing
• Signalling for informing about resource reservation
• Scheduling and forwarding for providing QoS

Telecom sector modelling from a functional perspective 45

 2BTheoretical background

3.3 Holons

The word holon is a combination of the Greek word holos, meaning whole, and the suffix on meaning
particle or part. A holon is an identifiable part of a system that has a unique identity, yet is made up of
sub-ordinate parts and in turn is part of a larger whole. The term holon was proposed in 1967 by
Arthur Koestler in [23]; since then, several adaptations of the holon concept have been proposed in
several fields (for instance in manufacturing) [26].
In order to explain a kind of entities that are both whole and part, he proposed the word holon
based on two observations. The first observation comes from Herbert Simon, a Nobel Prize winner,
and is based on his “parable of the two watchmakers”. From this parable, Simon concludes that
complex systems will evolve from simple systems much more rapidly if there are stable intermediate
forms than if there are not; the resulting complex systems in the former case will be hierarchic.
Koestler did not mention a holon model.
The second observation, made by Koestler while analysing hierarchies and stable intermediate
forms in living organisms and social organisation, is that although it is easy to identify sub-wholes or
'wholes' and 'parts', in an absolute sense they do not exist anywhere. The members of a hierarchy, like
the roman god Janus, all have two faces looking in opposite directions: the face turned to the
subordinate levels is that of a self-contained whole; the face turned upward towards the apex, that of a
dependant part. One is the face of the master, the other the face of the servant [23].
This “Janus effect” is a fundamental characteristic of sub-wholes in all types of hierarchies.
Nevertheless, there is not an adequate word in our vocabulary to refer to these “Janus-faced” entities.
It seems preferable to invent a new term to designate these nodes on the hierarchic tree, which behave
partly as wholes or wholly as parts, according to the angle they are looked. This made Koestler to
propose the word holon, in order to describe the hybrid nature of sub-wholes/parts in real-life systems;
holons simultaneously are self-contained wholes to their subordinated parts, and dependent parts when
they are seen from the inverse direction.
Koestler points out that the sub-wholes/holons are autonomous self-reliant units, which have
a degree of independence and handle contingencies without asking higher authorities for instructions.
Simultaneously, holons are subject to control from (multiple) higher authorities. The first property
ensures that holons are stable forms, which survive disturbances. The latter property signifies that they
are intermediate forms, which provide the proper functionality for the bigger whole.
A holon has two main features, autonomy, and cooperation. Koestler defines a holarchy as a
hierarchy of self-regulating holons that function as autonomous wholes in supra-ordination to their
parts, as dependent parts in sub-ordination to controls on higher levels, and in co-ordination with
their local environment.
Some examples of holons are [23]:

Telecom sector modelling from a functional perspective 46

 2BTheoretical background

• In language: A phoneme, words, phrases

• In living organisms: Cells, tissues, organs
• In society: Families, clans, tribes
• In networks: nodes, hubs, networks

Figure 18 shows how our economy and society can be represented by a networks consisting of
holons, which are allocated in different aggregations levels. What we find is a holarchy of
intermediary structures on a series of levels in an ascending order of complexity. This led us to state
the following proposition: Nodes on each aggregation level are holons in Koestler’s sense.

european
economy

low
GN = (V,E)

national
economy high

amount G N-1 = (V,E)

&
uniformity
complexity
sector &
diversity
GN-2 = (V,E)

company

low
high GN-3 = (V,E)
individual

Figure 18: Hierarchic aggregation levels in economy and society 14

14
[2] N. H. G. Baken, van Belleghem, N., van Boven, E., de Korte, A., "Unravelling 21st Century Riddles - Universal Network
Visions from a Human Perspective," The Journal of the Communication Network, 2007.

Telecom sector modelling from a functional perspective 47

 2BTheoretical background

3.4 Applicability of graph theory

When studying complex networks, there are methods developed in a field of mathematics referred to
as graph theory. Graphs are used to model pair wise relations (links) between the nodes of a network
[27]. The graph representation of a network shows the composition, structure, and environment of a
system with neglect of its dynamics [1].
Networks are omnipresent [2]. Complex networks exist on many scales and in many fields of
science. In Figure 18, we can see an example from an economic perspective, that networks are present
at each aggregation level. This representation as well invites us to apply graph theory in order to study
network properties at each horizontal aggregation level, though there are hierarchic relations with
upper/lower structures that might be interesting to investigate as well. Another interesting topic of
study could be to identify how internal functions of a node (for example transforming of value) effect
functional external relations (for example transacting and transferring). Can we identify internal
transformation links patterns in order to obtain any desirable change in the external transfer or transact
relations?

Using graphs to establish insights about functions

To obtain more insights about functions clustering we could make use of graphs and graph theory.
However, we need to identify which kind of graph we should use. The answer depends on what
information do we need to analyse; in Table 3 we enumerate some possible graph representations that
might help to study functions.

Assuming nodes as Assuming links as Purpose

Sequence in a process (directed Identification of functional clusters.
graph) e.g. Processes, layers, sectors.
Functions

Information flow
Functions Supply chain roles and interactions
definition.
Entities Value exchanged

Information flow
Value exchanged Definition of systems requirements.

Information flow Definition of responsibilities in a

Functions inside entities
supply chain.
Sequence in a process
Optimise functions allocation.

Table 3: Graph theory applicability to study functions

Telecom sector modelling from a functional perspective 48

 2BTheoretical background

If the nodes of a graph are entities with some assigned functions, then the links between those
nodes can be based on associations among their functions in order to perform processes that are more
complex. In this case, studying the network properties of such a graph, could give information about
the following aspects:

• Identify the resources taking part of a connection

• Identify functional clusters (composed functions, processes, sectors)
• Relation between functional links
• Functional loops
• Functions relevance

As an exemplification exercise, we generated a graph (using Cytoscape 15 software) to identify “the

most popular functions” within the assessed telecom models. For more details about this exercise, see
section 5.4.4.

Data classification

In order to establish relations between functions it can be useful to apply clustering techniques, to
identify patterns and associations of functions to accomplish a process. Cluster analysis or clustering is
the classification of a set of data into subsets (called clusters) so that data in the same cluster share
some similarity. Clustering is a common technique for statistical data analysis used in many fields,
including machine learning, data mining, pattern recognition, image analysis and bioinformatics.

Data clustering algorithms can be hierarchical; these algorithms find successive clusters using
previously established clusters. Hierarchical cluster analysis (or hierarchical clustering) is a general
approach to cluster analysis, in which the object is to group together records that are "close" to one
another. These algorithms can be either agglomerative ("bottom-up") or divisive ("top-down").
Agglomerative algorithms begin with each element as a separate cluster and merge them into
successively larger clusters. Divisive algorithms begin with the whole set and proceed to divide it into
successively smaller clusters. Partitional algorithms typically determine all clusters at once, but can
also be used as divisive algorithms in the hierarchical clustering. Hierarchical clustering creates a
hierarchy of clusters, which may be graphically represented in a tree structure called dendrogram 16. The
root of the tree consists of a single cluster containing all observations, and the leaves correspond to

15
It is an open source software for network analysis and visualization purposes.
16
From Greek dendron "tree", -gramma "drawing". It is a tree diagram frequently used to illustrate the arrangement of the clusters produced
by hierarchical clustering.

Telecom sector modelling from a functional perspective 49

 2BTheoretical background

individual observations. Algorithms for hierarchical clustering are generally either agglomerative, in
which one starts at the leaves and successively merges clusters together; or divisive, in which one starts
at the root and recursively splits the clusters.

Telecom sector modelling from a functional perspective 50

 2BTheoretical background

3.5 Conclusions from this chapter

As both telecommunications networks and the sector’s network are considered complex
systems, the development, design, and operation of those complex networks cannot be simply left to
“spontaneous evolution”, it needs to be controlled. The natural evolution of the brain in the four
layers mentioned by Piet Vroon in [28] was an adaptation process. We can see how functional
decomposition is a natural tool to cope with complexity, to deal with new contextual conditions.
However if this process is not controlled then the evolution process could lead us to undesired
situations. If we take some control of the functional decomposition as a way to manage complexity of
the challenges faced by Telecom sector then it should provide us with the tools to identify options,
actions, etc towards the accomplishments of our scope.
The framework proposed by Bunge’s provide us the grounding theory to address the study of
complex systems (e.g. sector network) from the perspective of their components and relations. The
functional approach, is proposed from an ontological perspective, to establish an answer for the
question: what does a system do?
Functional analysis, layering, and modularisation give us a method to tackle complexity and deal
with it. The advantages of the functional approach can be summarised as follows:
• Breaks up complex problem into smaller manageable pieces
• Abstraction of implementation details
• Separation of implementation and function
• Upper layers can share lower layer functionality

More to the point, it is important to identify the (unique and generic) functions provided by each
sector, because these functions must be integrated into trans-sector processes, (these processes both
facilitate “going concern” and trans-sector innovation). Any innovation strategy should include a
functions identification approach. This also enables reuse of functionalities and resources. The
identification of functions helps us to expose each sector’s functionality. Understanding this functional
framework can be a helpful fundament to facilitate trans-sector innovation.
Furthermore using graph theory seems interesting and promising. In relation to it, we found some
potentially new interesting questions for the community studying complex networks and graph theory:
1. Apply graph theory to get insights about functions, their characters and their relations.
Firstly, we identified some possibilities where and how to apply graph theory in our study.
Secondly, we have chosen to perform a practical exercise where the functions derived from
the selected telecom models (OSI, eTOM, etcetera) are represented by nodes. The
selected telecom models 17 were represented as hub-nodes. The graph (see section 5.4.4)

17
Models were considered as hub-nodes

Telecom sector modelling from a functional perspective 51

 2BTheoretical background

that resulted from this exercise depicts all functions (nodes) and centralises the functional
nodes that appear in two or more models (thus being nodes that have a higher degree).
During our research, we called these “most popular functions”. These functions all proved
to have a multi-sector character.
2. Studying holons and hierarchical structures gave us the idea to look inside a node of a
network. Each holon is considered to be a four-tiered node. On the one hand, if we open
those nodes, we can identify other smaller layered networks. On the other hand, closing a
node will allow us to move up in the network hierarchy (to other aggregation levels). See
figure 18 and chapter 5 as well.
3. Koestler defined the “Janus-effect” of a holon, which demonstrates a holon (node) looking
up and looking down at the next higher and lower aggregation level of a hierarchy. When
applying layered graphs we propose a holon (node) that looks up at its superior holons
(nodes), looks left and right at its peers and looks down at its sub-ordinate holons (nodes).
Chapter 5 elaborates on this idea.

Telecom sector modelling from a functional perspective 52

 3BTelecom related models & standards

4 Telecom related models & standards

A definition of model is given in [21] : “ Any subject using a system A that is neither directly nor
indirectly interacting with a system B, to obtain information about the system B, is using A as model for
B”.
The models analysed in this research were selected from the current status quo of widespread
standards used in the Telecom sector. To provide a complete set of functions performed by the
Telecom sector it was necessary to take into account different models because each one addresses
specific views. The selection was based on four criteria that will be explained in section 4.1. The
models considered to be evaluated against these criteria are shown in Figure 19, and the arrows
between them represent an evolutionary relation in time.

NGOSS
TINA SID
DEMO
DoD

TAM
TMN TOM eTOM
TCP/IP

ITU ITU ITU

TCP OSI FCAPS ITIL
G.805 G.809 G.800

1974 1979 1984 1989 1994 1999 2004 2009

Modelsselected
Models selected

Modelsadded
Models assessed afterwards
af terwards

Modelschecked
Models not selected
against the criteria

Figure 19: Telecom/IT models & standards time-line and their evolutionary relations.

Telecom sector modelling from a functional perspective 53

 3BTelecom related models & standards

4.1 Criteria for models selection

The main criteria established for selecting the set of models to be researched are:
1. Does the model include a functional view (taking into account the information in section
3.1.1)
2. Is the model independent from implementations?
3. Does the model contribute to completeness of the set of models? Are they complementary?
4. Uniqueness of their views, context, aims, and target group

The third and fourth criteria allowed establishing a set of models to look into different aspects
in Telecom sector, in order to avoid working in a biased way. The models & standards finally selected
meet the requirements of the specified criteria. Additionally, if more than one model addressed
similar points of view, only one of them was selected. For example, ITIL is a well known model
applied in IT organisations, however its functions and approach can be easily mapped to eTOM, for
that reason, only eTOM was used for the functions identification. In the same way, though SID and
TAM are very helpful, we chose NGOSS because it includes the general overview of both models.

Telecom sector modelling from a functional perspective 54

 3BTelecom related models & standards

4.2 Overview of each model

This section briefly describes the researched models, their pros & cons and functions identified within
each one. See as well the datasheet tables that describe each model.

4.2.1 Open Systems Interconnection Model (OSI)

This Reference Model provides a conceptual framework of standards for communication through a
telecom network across different equipments and applications by different fabricants. OSI is
concerned with the exchange of information between open systems (and not the internal functioning of
each individual real open system). The recommendation does not provide details about definitions or
interconnection protocols.

7
6
5
4
3
2
1

Figure 20: OSI model 18

Document Standard 1 ITU-T X.200

Document Standard 2 ISO/IEC -7498-1 (pp.59)
Abbreviation OSI
Open Systems Interconnection (OSI) – Model and notation, service definition.
Document Title 1 REFERENCE MODEL OF OPEN SYSTEMS INTERCONNECTION FOR CCITT
APPLICATIONS
Information Technology-Open Systems Interconnection-Basic Reference Model:
Document Title 2
The Basic Model.
ISO (International Organization for Standardization), International
Organization/Author
Telecommunication Union/ITU Telcommunication Sector
Date 1st version 1984
Date current version 1994
Target group Data communications systems/standards designers and engineers

Table 4: OSI datasheet

18
http://lh5.ggpht.com/joseph.k2lee/SAy-pA9s33I/AAAAAAAABEw/ChUWYYbo_Yo/osi_model_thumb%5B1%5D.jpg

Telecom sector modelling from a functional perspective 55

 3BTelecom related models & standards

It is composed of seven layers (see Figure 20) that are subdivided in three functional groups:
• User functions (5, 6, 7)
• Transport (4)
• Network functions (1, 2, 3)

OSI uses a layered structure, so that different functions are separated from each other. Similar
functions are in the same layer to allow a redesign with minimal effect to adjacent layers.
OSI uses the concept real systems as a set of one or more computers, associated software,
peripherals, terminals, human operators, physical processes, information transfer means, etc., that
forms an autonomous whole capable of performing information processing and/or information transfer.
OSI is concerned not only with the transfer of information between systems, but also with their
capability to interwork in order to perform a common (distributed) task. In other words, OSI is
concerned with the interconnection aspects of cooperation between systems, which is implied by the
expression “systems interconnection”.

Pros
• OSI is implementation independent, because the conformance with the Reference Model 19
does not imply any particular implementation or technology [29].
• Centralisation and decentralisation of management functions is allowed, encouraging the
compatible implementation of communication.
• Each layer is reasonably self-contained so that the tasks assigned to each layer can be
implemented independently. This enables the solutions offered by one layer to be updated
without adversely affecting the other layers.
• OSI model still remains today as a reference model, by which other implementations are
compared to and simplifies teaching and learning of networking.

Cons
• Entities of the same each layer (in different systems) can communicate between them, only by
using the services of the layer below each one.
• In OSI is not described/defined an adaptation function in between the layers.
• The concept of QoS is not considered in OSI, since its main goal was to allow multi-vendor
computers to interact and communicate (transmit pure data traffic).
• The stack design is highly rigid and strict, and each layer worries only about the layer directly
above it or the one directly below it. This results in a non-existent collaboration between the
different layers.

19
The OSI reference model does not specify services and protocols for OSI. It is neither an implementation specification for systems, nor a
basis for evaluating the conformance of implementations.

Telecom sector modelling from a functional perspective 56

 3BTelecom related models & standards

Functions identified on each layer

Layer Functions Verbs Services Provided

The application services differ from services provided by

other layers in neither being provided to an
upper layer nor being associated with a service-access-
point.
In addition to information transfer, such services may
include, but are not limited to the following:
Note – Some of the services listed below are provided by
OSI management.
The application layer contains all functions which imply communication a) identification of intended communications partners
between open-systems and are not already performed by the lower layers. Communicating, (e.g., by name, by address, by definite description, by
These include functions performed by programs as well as functions Initializing, Allocating, generic description);
performed by human beings.An application-entity can be structured deallocating, terminating, b) determination of the current availability of the intended
internally into groups of functions. Use of one grouping of functions may controlling, communication partners;
7 Application depend on use of some other functions, and the active functions may vary checkpointing, c) establishment of the authority to communicate;
during the lifetime of an association. Systems-management functions recovering, loading, d) agreement on privacy mechanisms;
and application-management functions are located in the application layer. monitoring, reporting, e) authentication of intended communication partners;
Invocation of instances of entities in the lower layers. Association restarting, recofiguring, f) determination of cost allocation methodology;
between the two application-entities of the open systems wanting to Invoking, Associating g) determination of the adequacy of resources;
comunicate h) determination of the acceptable quality of service
(e.g., response time, tolerable error rate, cost vis-a-vis
the previous considerations);
i) synchronization of cooperating applications;
j) selection of the dialogue discipline including the
initiation and release procedures;
k) agreement on the responsibility for error recovery;
l) agreement on procedures for control of data integrity; a
m) identification of constraints on data syntax (character s

The presentation layer peforms the following functions to help accomplish a) transformation of syntax; and
the presentation-services: b) selection of syntax.
a) session establishment request; Tranformation of syntax is concerned with code and
b) data transfer; Requesting, transfering, character set conversions, with the modification of the
6 Presentation c) negotiation and renegotiation of syntax; negotiating, transforming, layout of the data and the adaptation of actions on the
d) transformation of syntax including data transformation, formatting and formatting data structures. Selection of syntax provides the means
special purpose transformations of initially
(e.g., compression); and selecting a syntax and subsequently modifying the
e) session termination request. selection.
The following services provided by the session layer are
described below:
Most of the functions required are readily implied by the services provided.
a) session-connection establishment;
a) session-connection to transport-connection mapping;
connecting, mapping, b) session-connection release;
b) session-connection flow control;
transporting, controlling, c) normal data exchange;
5 Session c) expedited data transfer;
transfering, recovering, d) quarantine service;
d) session-connection recovery;
releasing, managing e) expedited data exchange;
e) session-connection release; and
f) interaction management;
f) session layer management.
g) session-connection synchronization; and
h) exception reporting.
a) mapping transport-address onto network-address;
b) multiplexing (end-to-end) transport-connections onto network-
mapping, multiplex,
connections;
connecting, de-
c) establishment and release of transport-connections;
connecting, monitoring,
d) end-to-end sequence control on individual connections;
detecting, recovering,
e) end-to-end error detection and any necessary monitoring of the quality a) transport-connection establishment;
segmenting, blocking,
4 Transport of service; b) data transfer; and
concatenate, controlling,
f) end-to-end error recovery; c) transport-connection release.
supervising, transfering,
g) end-to-end segmenting, blocking and concatenation;
delivering, addressing,
h) end-to-end flow control on individual connections;
multiplexing, splitting,
i) supervisory functions; and
transferring, notificating
j) expedited transport-service-data-unit transfer. Others: Addressing,
multiplexing and splitting, transfer of data, notification of reason of release

Network layer functions provide for the wide variety of configurations

supporting network-connections ranging from network-connections
supported by point-to-point configurations, to network-connections
supported by complex combinations of subnetworks with different
characteristics. a) network-addresses;
Note – In order to cope with this wide variety of cases, network functions b) network-connections;
should be structured into sublayers. The subdivision of the network layer c) network-connection-endpoint-identifiers;
into sublayers need only be done when this is useful. In particular, d) network-service-data-unit transfer;
sublayering need not be used when the access protocol of the e) quality of service parameters;
routing, relaying,
subnetwork supports the complete functionality of the OSI network f) error notification;
conecting, multiplexing,
service. g) sequencing;
segmenting, blocking,
The following are functions performed by the network layer: h) flow control;
3 Network detecting, recoverying,
a) routing and relaying; i) expedited network-service-data-unit transfer;
sequencing, controlling,
b) network-connections; j) reset;
transfering, reseting,
c) network-connection multiplexing; k) release; and
selecting, managing,
d) segmenting and blocking; l) receipt of confirmation.
e) error detection; Some are Optional. This means that:
f) error recovery; a) the user has to request the service; and
g) sequencing; b) the network-service provider may honour the request
h) flow control; or indicate that the service is not available.
i) expedited data transfer;
j) reset;
k) service selection; and
l) network layer management.

a) data-link-connection establishment and release;

b) data-link-service-data-unit mapping;
c) data-link-connection splitting; connecting, mapping, a) data-link-connection;
d) delimiting and synchronization; splitting, b) data-link-service-data-units;
e) sequence control; fragmentingdelimiting, c) data-link-connection-endpoint-identifiers;
2 Data Link f) error detection; synchronizing, d) sequencing;
g) error recovery; controlling, detecting, e) error notification;
h) flow control; recovering, identifying, f) flow control; and
i) identification and parameter exchange; exchanging, managing g) quality of service parameters.
j) control of data-circuit interconnection; and
k) data link layer management.
a) physical-connections;
b) physical-service-data-units;
a) physical-connection activation and deactivation; c) physical-connection-endpoints;
connecting, transmitting,
1 Physical b) physical-service-data-unit transmission; and d) data-circuit identification;
managing.
c) physical layer management. e) sequencing;
f) fault condition notification; and
g) quality of service parameters.

Table 5: Functions of OSI layers

Telecom sector modelling from a functional perspective 57

 3BTelecom related models & standards

Layers 7 through 4 deal with end-to-end communications between data source and destinations.
Layers 3 to 1 deal with communications between network devices. The functions and protocols,
which support the forwarding of data, are then provided in the lower layers. The value adding by
layers 1-6, together with the physical media for OSI provide a systematic enhancement of
communication services. The functions and protocols, which support the forwarding of data, are then
provided in the lower layers. The top layer is assumed to offer all possible end-uses of the services that
are provided by the lower layers. The following table shows the functions, verbs and services identified
in each layer of the OSI model.

4.2.2 Telecommunications Management Network (TMN)

Recommendation M.3400 provides both generic and specialised TMN management function sets to
support some of the most important TMN management services. TMN enables communication
between Operations Support Systems (OSS) and Network Elements (NEs).

Figure 21: TMN Logical Layered Architecture

Recommendation M.3010 introduces several management architectures at different levels of

abstraction [30]:
• A functional architecture, which describes a number of management functions.
• A physical architecture, which defines how these management functions, it may be
implemented into physical equipment.
• An information architecture, which describes concepts that have been adopted from OSI
management.
• A Logical Layered Architecture (LLA), which includes one of the best ideas of TMN: a model
that shows how management can be structured according to different responsibilities. The
LLA is shown in Figure 21, representing a hierarchy of management responsibilities. Because

Telecom sector modelling from a functional perspective 58

 3BTelecom related models & standards

of its completeness, structuring technique and flexibility in the functions allocation, this was
the view of TMN selected for this thesis.

The information overview of this model is presented in the following table:

Document Standard M. 3400

Document Title Telecommunications management network-TMN Management Functions
Organization/Author ITU-T
Acronym TMN
Date 1st version 1985
Date current version 2000
Target group Management system designers and users

Table 6: TMN datasheet

Functions identified in TMN

TMN supplies a model of logical layers that define or suggest the management level for specific
functionality. The same type of functions can be implemented at many levels, from the highest level,
which manages corporate or enterprise goals, to a lower level, which is defined by a network or
network resource. Functionally and conceptually, a management network is not part of the
telecommunications network that it supports.
Each TMN layer performs some/all functions of FCAPS (explained in see section 4.2.3). In 3

Table 7 are consigned the functions and verbs identified in this model; additionally the relation
between FCAPS functional groups and TMN layers is included in this table.

Layer Function Verbs

authenticating, analising, buffering,
Business accounting, collecting, delivering,
4 Analyzes trends and quality issues. APS
Management optimizing, planning, administrating,
handling, protecting, pricing.

authenticating, designing,defining,
charging, recognizing, isolating,
reporting, recording, buffering,
Handling of services in the network: definition,
3 Service Management accounting, collecting, delivering,
administration and charging of services. FCAPS
installing, setting, configuring,
optimizing, planning, administrating,
handling, protecting, pricing.
authenticating, designing,
distributing, controling, monitoring,
Distribution of network resources: configuration, recognizing, isolating, reporting,
2 Network Management
control and supervision of the network. FCPS recording, installing, setting,
configuring, optimizing, planning,
administrating, handling, protecting.

authenticating, designing,
Handling of individual network elements. This maintaining, monitoring, recognizing,
includes alarm management, handling of isolating, reporting, recording,
1 Element Management
information, backup, logging, and maintenance of installing, setting, configuring,
hardware. FCPS optimizing, planning, administrating,
handling, protecting.

Table 7: Functions of TMN layers

Telecom sector modelling from a functional perspective 59

 3BTelecom related models & standards

Pros
• The TMN enables telecommunication service providers to achieve interconnectivity and
communication across operating systems and telecommunications networks, via standard
interfaces.
• The TMN LLA including business, service, and network layers help to organize the core
business processes, as it facilitates management functions defined in TMN to the processes
[31].
• TMN includes the notion of service management, which also takes into account QoS definition
[30].

Cons
• Separating physically the management network from the telecommunications network
provides good fault management capabilities but increases costs because more equipments and
resources are needed.

4.2.3 Fault, Configuration, Accounting, Performance & Security management

(FCAPS)

FCAPS is a network management functional model. This term was introduced for the first time as
part of recommendation X.700 on OSI management. Afterwards, ITU-T refined the FCAPS
concept as an extension of TMN in recommendation M.3400 [32]. This model partitions the
network management into five functional areas: network device and application fault management,
network device and application configuration management, network utilisation and accounting
management, network performance management, and security management. Portions of each of the
FCAPS functionality can be performed at different layers of the TMN architecture.

Figure 22: FCAPS functional groups

Telecom sector modelling from a functional perspective 60

 3BTelecom related models & standards

Since FCAPS was defined in the same document as TMN, its datasheet (Table 8) has almost the
same information of TMN datasheet (Table 6).

Document Standard M. 3400

Document Title Telecommunications management network-TMN Management Functions
Organization/Author ISO/ITU-T
Acronym FCAPS
Date 1st version 1985
Date current version 2000
Target group Management system designers and users

Table 8: FCAPS datasheet

Functions identified in FCAPS

Management functions can be clustered into five functional groups (FCAPS). The functions
identified on each group are enumerated in the following table:

Layer Function Verbs

detecting, recognizing, isolating, correcting, testing,
1 Fault Management Fault recognition, isolation, reporting and recording.
reporting, recording
Installation of network equipment, setting of states and parameters,
3 Configuration Management installing, setting, configuring
configuration of network capacity.
Collection, buffering and delivery of payment and accounting collecting, determinating, measuring, buffering,
2 Accounting Management
information. delivering, accounting, pricing, rating, costing
Collection, buffering and delivery of operating statistics for network collecting, gathering, buffering, delivering,
4 Performance Management
optimization and capacity planning. accounting, optimizing, assessing, planning.
Administration of authorization functions; handling of simultaneous
use of an OSS, protection against intrusion from un-authorized
5 Security Management users. Security of management administrating, handling, protecting
is required for all Management Functional Areas and for all TMN
transactions.

Table 9: Functions of FCAPS functional groups

Pros
FCAPS describes the basic functionalities that any telecommunication management system must
support. It can be taken as starting point to understand them.

Cons
FCAPS alone is not enough to describe all management tasks required by networks with increasing
complexity.

4.2.4 Design & Methodology for Organisations (DEMO)

DEMO is a methodology that provides the grounding theory for producing an ontological model of
an organisation based on a description of its current operations. This methodology indicates the way
of modelling, way of working and way of managing organisations. DEMO considers an organisation

Telecom sector modelling from a functional perspective 61

 3BTelecom related models & standards

to consist of a coherent layered integration of three aspect-organisations: the Business organisation (B-
organisation), the Information organisation (I-organisation) and the Document (D-organisation).
These constitute a hierarchy, in which the I-organisation supports the B-organisation and the D-
organisation supports the I-organisation. The integration of this system is established through the
human beings [21].

Business

Information

Document

Figure 23: DEMO Methodology

DEMO is not a standard (as other models studied during this research), but its concept and
methodology provides a strong theoretical background to understand organisations and the
functionalities of their OSS tools. The datasheet of this model is presented in the following table:

Document Standard Not applicable

Document Title Enterprise Ontology: Theory and Methodology
Organization/Author Prof. Dr. Ir. Jan L.G. Dietz (EWI TU DELFT)
Abbreviation DEMO
Date 1st version 1999
Date current version 2006
Target group Business process (re)design and Information technology systems (re)engineering

Table 10: DEMO datasheet

DEMO states that the B-organisation represents the essence of the organisation, since it is
completely independent from the way in which this essence is realised an implemented. A full
understanding of the B-organisation is the correct starting point in the (re) engineering of an
organisation, which ultimately includes the software used to support the business processes.
This methodology abstracts the essence of the construction and operation of complete systems
(enterprises) by developing an ontological model. The ontological model is used as the starting point
for proposing, analysing, and implementing such changes. The ontological model establishes the
boundaries and conditions for (re)designing and (re)engineering initiatives. Reengineering a business
process is something that is done for every ontological process step. Redesigning a business process,
however, means removing or adding complete transactions. These at least guarantee that the new
process is formally correct.

Telecom sector modelling from a functional perspective 62

 3BTelecom related models & standards

Functions identified on each layer

Each layer of DEMO is associated to human communication abilities. Operation of actors is based on
three human abilities: performa, informa, and forma. Performing a coordination act implies the
execution of three kinds of communicative acts, which are directly related with these abilities 20. The
operational definition of enterprise ontology according to this approach consists of actor roles
performing coordination and production acts.
Even though in the DEMO scope and layers are not included a physical layer, it is taken for
granted. The concern of (tele)communication technology is below the forma level, by assuring the
right physical exchange needed of the substrates in which the utterances of the transmitter are encoded
and which can be transported to the receiver in order to it perceive the encoded information from the
structures of the substrate.

Organization Theorem
Coordination Production
Organization Ability Acts Verbs Acts Verbs
Concerns the bringing about of new things, original things,
directly or indirectly by communication. That means Ontological actions: Deciding,
PERFORMA Exposing, evoking, Establishment of original new
Business engaging into commitments, decisions, judgments, etc. It is judging, bringing about new things,
(Through the form) engaging (commitment) things.
essential for doing business of any kind. Social making decisions
understanding
Content aspects of communication and information. Abtracts Infological actions: Reproducing,
INFORMA (What is from the form aspects. Sharing of thoughts between people, Expressing, educing, Ability to interpret data to deducing, reasoning, computing,
Information
in the form) the remembering and recalling of knowledge and reasoning. sharing (thoughts) create information. deriving, reproducing remembered
Intellectual understanding knowledge.
Form aspects of communication and information.
Datalogical actions: Storing,
Pronoucing and perceiving of sentences, syntactical analysis Uttering, pronouncing, Ability to deal with recorded
Document FORMA (Form) transmitting, copying, destroying,
of those sentences. Significational understanding . perceiving information items
retrieving.
The physical substrate in which information is encoded. Coding schemes, transmission, Transfering (transmitting, transporting), encoding, receiving
Physical exchange storage and retrieval of data.

Table 11: Functions of DEMO layers

Pros
• An advantage of this model is the good differentiation between the functional perspective and
the implementation perspective to explain the relationships between the layers of the model.
• Additionally, the pure approach to the transactional aspect of the communicative act between
humans can provide a formal framework to approximate the interactions/transactions between
other kinds of entities.

Cons
• Even it is applicable to any kind of organisation and design of IT systems, DEMO model is
the only model that is not directly related to the Telecom sector.

20
In DEMO this statement is called the Organisation Theorem.

Telecom sector modelling from a functional perspective 63

 3BTelecom related models & standards

4.2.5 New Generation Operations Software and Systems (NGOSS)

The NGOSS is a set of standards used as solutions framework for transforming business and
operations in telecom industry and telecom service providers. This model considers four views (phases)
in OSS development. They must be executed in a logical order, thus each one can provide its value to
the subsequent view.
• Business requirements
• System design & modelling
• Solution implementation
• Service operation

Figure 24: NGOSS Framework 21

Document Standard TMF053, GB927

Document Title The NGOSS Technology Neutral Architecture, The NGOSS Lifecycle and Methodology
Organization/Author TMF
Acronym NGOSS: New Generation Operation Support Systems
Date 1st version
Date current version V.4 January 2004, V.1.3 November 2004
Information and communication service providers, network operators, systems integrators,
Target group independent software vendor, network equipment provider: process engineers, operations staff,
software developers and system integrators

Table 12: NGOSS datasheet

The core frameworks are of the NGOSS framework that can be applied to organisations are:
• Business Process Framework (eTOM)
• Information Framework (SID)

21
[20] "The NGOSS Lifecycle and Methodology " in GB927, Release 4.5, v.1.3 .1, T. Forum, Ed.: TMF, November 2004, p. 51.

Telecom sector modelling from a functional perspective 64

 3BTelecom related models & standards

• Application Framework (TAM)

• Integration Framework (TNA)
NGOSS Lifecycle methodology ([20]) provides the directions to integrate those frameworks in
the deployment of NGOSS compliant systems.
The Life cycle processes are:
• Analysing business requirements
• Identifying systems requirements
• Modelling a solution
• Implementing a solution
• Deployment of an application

Functions identified in NGOSS

The functionality of an NGOSS system is specified by a set of Use Cases. A Use Case is the
specification of a sequence of actions that a system (or other actor) can perform interacting with other
actors of the system. Use cases are used for capturing functional requirements in software design but
their applicability is much wider. A Use Case scenario illustrates how a user is intending to use a
system (this is a functional perspective taking into account in [1] and [21] essentially capturing the
system behaviour from the user’s point of view).

Figure 25: NGOSS layered view 22

22
[33] "NGOSS Contracts," in GB942, Release 1.0, v1.2, T. Forum, Ed.: TMF, 2008, p. 78.

Telecom sector modelling from a functional perspective 65

 3BTelecom related models & standards

Lifecycle view Functions Verbs

Define processes and information entities required for
Business Analyzing, identifying
supporting business needs and goals.
Modeling of processes and information in a technology
Systems Modeling
neutral manner.
How to build software, hardware, firmware to support
Implementation implementation of the system. Mapping of technology Validating, mapping, re-designing
neutral model to a selected target architecture.
Operating and monitoring the system to check if its
Deployment performance fits the specifications stated in previous Running, monitoring, operating, assuring
views.

Table 13: Functions of NGOSS layers (views)

Pros
• It is technology neutral
• Distributed
• Service Oriented
• Supports component based implementations (modularity)

4.2.6 Enhanced Telecommunications Operations Map (eTOM)

eTOM provides a high-level overview of telecommunications service provider business processes. The
relation between these processes, the identification of interfaces, and the use of service, resource,
customer, supplier/partner and other information by multiple processes.

Figure 26: eTOM Process Map (Level 1 view)

Telecom sector modelling from a functional perspective 66

 3BTelecom related models & standards

Telecom Operations Map (TOM) is a network management model originally from the
TeleManagement Forum that aimed to replace the TMN model. The enhanced TOM (eTOM) is
the current version of this model. eTOM describes the full scope of business processes required by a
service provider and defines key elements and how they interact. eTOM has been adopted as ITU-T
International Recommendation, known in 2004 as M.3050 [34].

Document Standard 1 GB921 v. 7.3 (pp.73)

Document Standard 2 M.3050
Acronym eTOM: Enhanced Telecom operations Map
Document Title 1 Business Process Framework (e-TOM)
Document Title 2 Enhanced Telecom Operations Map (eTOM) –The business process framework
Organization/Author 2 TMF
Organization/Author 2 ITU-T
Date 1st version 2002
Date current version V.4 January 2004, V,1 November 2004
For the information and communications services industry. Telecom Service providers (planners,
managers, strategists who need the business view of the enterprise). For suppliers it provides the
Target group boundaries of software and product needs.

Table 14: eTOM datasheet

Functions identified in eTOM

Processes are sequences of activities or grouping of functions [31].The process hierarchy is organised
in a layered view. Each layer contains different types of processes; however all business functions in
eTOM are not defined with the same level of granularity [33], some of those functions can go just as
deep as it is necessary. The eTOM functional process groupings are the highest level decomposition of
the enterprise [31].

Vertical end-to-end
Horizontal
(functional)

Process elements
-eTOM entities

Process elements
-Clear business goal
-Independent of contracts
-Can be reused (SOA)

Atomic
-Systems

Internal functions
of systems

Figure 27: Process hierarchy: Processes and resources 23

23
[33] Ibid.

Telecom sector modelling from a functional perspective 67

 3BTelecom related models & standards

The business functions and differentiation are captured at high levels layers of eTOM for
eTOM to have value; it means that the standard processes are defined in layers 1-2-3. Above level
three the criteria for grouping processes is to allocate them into business areas. Comparing with
DEMO this is consistent because then ontological processes can be identified and assigned to high
levels roles (actors).
Tasks are grouped in NGOSS contracts but they are independent from them. ETOM can be
used to determine the tasks that should be included in a contract supporting a specific business process.

Major process areas in eTOM are:

• Strategy, Infrastructure & Product
• Operations
• Enterprise Management

Vertical (Customer-Resource Element) End-to-End processes: Support Customers, Manage the

business.
• Strategy & Commit
• Infrastructure Lifetime cycle Management
• Product Lifecycle Management
• Ops support & Readiness
• Fulfilment
• Assurance
• Billing

The process view was useful to identify functions in the eTOM model, since it was difficult to
recognise the layers and process hierarchies from the level 1 view in Figure 26. The following table
shows which kind of processes can be found on each level of this hierarchy, even though, the detailed
activities belonging to levels 4 and 5 were not studied in this research because they were too specific
and related to systems functions.

Telecom sector modelling from a functional perspective 68

 3BTelecom related models & standards

Category Hierarchical Levels Functions sets Verbs

0 Bussiness activities Strategy, Infrastructure & product, Operations, Enterprise Management Visualizing, managing

Bussines Horizontal: Market, product & customer, Service, Resource, Supplier. marketing, supplying,
1 Process groupings Vertical: Strategy & Commit, Infra Lifecycle mgmt, Product Lifecycle managing, fullfilling, ensuring,
mgmt, Operations Support & Readiness, Fullfilment, Assurance, Billing . billing
RM&O: RM&O Support & Readiness, Resource Provisioning, Resource
provisioning, troubleshooting,
2 Core processes Trouble Mgmt, Resource Performance Mgmt, Resource Data Collection
monitoring, collecting
& Processing
Process
RM&O Resource Provisioning: Allocate & Deliver Resource, allocating, delivering,
3 Bussiness process flows Configure & Activate Resource, Test Resource, Collect, update & report configuring, activating, testing,
resource configuration data. collecting, reporting
Allocate & Deliver Resource function sets: Provisioning policing,
Access circuit design, Leased circuit design, Facility design, Manage
pending network changes, NE(s) configuration, NE(s) datbase mgmt, policing, designing, managing,
4 Operational process flows NE(s)resource selection and assignment, NE(s) path design, Manage configuring, selecting,
Operations
pending changes in NE(s), Access route determination, Leased circuit assigning, determining.
route determination, Network resource selection and assignment,
Interexchange circuit design.
5 Detailed processes Specified in GB921D: Process decomposition (276p)

Table 15: Functions of eTOM layers (process hierarchy)

The functional groups of eTOM are:

Strategy, Infrastructure and product

• Marketing and offering management
• Service development and management
• Resource development and management (Applications, computing, network)
• Supply chain development and management
Operations
• Customer relationship management
• Service management and operations
• Resource management and operations (Applications, computing, network)
• Supplier/partner relationship management

Enterprise Management 24
• Strategic and enterprise planning
• Enterprise risk management
• Enterprise effectiveness management
• Knowledge and research management
• Financial and asset management
• Stakeholder and external relations management
• Human resources management

24
The general functions included in enterprise management grouping are used throughout the enterprise, so they are necessary for the
support of other functions but are not related directly with the main internal value transformation flow (business specific).

Telecom sector modelling from a functional perspective 69

 3BTelecom related models & standards

This structuring by horizontal functional process groupings is useful to those who are responsible
for creating the capability that enables, supports or automates the processes [31]. Horizontal
functional processes support the end-to-end vertical processes accomplishment. This can be
interpreted as that the transforming meta-function of the Service Provider can be subdivided in different
vertical flows, but based on the horizontal functional grouping hierarchy. This hierarchical (pyramid)
taxonomy helps to implement the functionality offered by each process, as it offers different levels of
decomposition allowing the identification of atomic activities to be performed by employees or IT
support systems.
The eTOM horizontal grouping of functions reflects the way Telecom Operator adds value by
means of the transforming meta-function. The layered organisation of those groups should be
understood as the order or sequence in which this transformation must occur to efficiently deliver
services and product to the customer.
The transacting meta-function is reflected in eTOM as interactions of the Service Provider
with external entities as for example: Supplier/partners and Customers (see appendix 8.4, page 127).

Pros
• The eTOM framework provides the blueprint for this analysis and a technology-neutral basis
for internal process reengineering needs, partnerships, alliances, and general working
agreements with other providers [35].
• For suppliers, eTOM provides a guide for partitioning software and other products, so that
their boundaries and functionality meet the customers’ needs.
• The eTOM framework makes available a standard structure, terminology, and classification
scheme for describing business processes and their constituent building blocks. It also helps to
identify opportunities for the re-use of existing processes and systems [35].

Cons
• eTOM does not recognize business domains, which made difficult to identify the IT tools
supporting each domain.

4.2.7 Other models considered

Models added after the check for completeness

After the first version of the list of functions, the check for completeness and interviews with experts
from the Telecom sector revealed that some functions were missing. Knowing which functions we
were looking for, we added two models to the initial set considered, in order to verify the existence of
the missing functions within them. These models are ITU-T G.800 and TINA.

Telecom sector modelling from a functional perspective 70

 3BTelecom related models & standards

ITU-T G.80x
It consists of three recommendations/documents:
• ITU-T G.800: Unified functional architecture of transport networks
• ITU-T G.805: Circuit Switched network through Multi-layer network
• ITU-T G.809: Packet Switched network through Multi-layer network

This recommendation defines functional elements as the abstract representation of the physical
network elements, e.g. Device and interface.
Some commonly used terms in these recommendations are:
• Connection point: They are points receiving and transmitting data.
• Layer: All possible connection points of the same type. A Data Transport function can be
created between connection points of the same layer.

In a graph, we can find the following elements:

• Nodes: Connection Point
• Links: Link connection
• Tandem connection: Consecutive link connections
• Network connection: End-to-End connection on a certain layer
• Sub-networks: Parts of the network at a single layer
• Matrix: Undividable sub-network connection

The basic functions in these recommendations are:

Adaptation Function: It performs format transformation through different layers. An example of an
adaptation function can be the application of priority policies for processing different kinds of traffic
over the same network: real-time (rt) and non real-time (nrt).
Termination Function: It executes the transport processing.
From a functional point of view, if in the server layer, there is a network connection and the
endpoints have the same termination and adaptation functions, then it can be said that there is a link
connection at the client layer above.

Telecommunications Information Networking Architecture (TINA)

It is a model that integrates all the control and management functions into unified, logical software
architecture by logically separating the high-level applications and the physical infrastructure from the
need of directly communicate with each other. This isolates the more stable Control and
Management aspects from the very dynamic technology and commercial service needs.
The purpose of these principles is to insure interoperability, portability, and reusability of software
components and independence from specific technologies, and to share the burden of creating and

Telecom sector modelling from a functional perspective 71

 3BTelecom related models & standards

managing a complex system among different business stakeholders, such as consumers, service
providers, and connectivity providers.
TINA has three layers:
• Service
• Resources
• Distributed Processing Environment (DPE)

TINA defines a set of reference points, derived from the TINA Business Model. TINA
captures the complexity of a system using a number of models:

• The Business Model describes the different parties involved in service provisioning and their
relationship to each other. A small number of roles are defined, which reflect the major
business separations of a complex telecommunications and information market: consumer,
retailer, broker, third party service provider, content provider, and connectivity provider.
• The Reference Points comprises a set of interfaces describing the interactions taking place
between these roles.
• The Information Model describes information-bearing entities, their relations to each other,
and the constraints and rules governing their behaviour.
• The Computational Model describes computational objects and their relations.

The network architecture defines a generic technology-independent model for setting up

connections and managing telecommunications networks. It inherits concepts used in ITU-T and
other standards bodies. It extends these concepts to integrate network control and management
software for different network technologies.

Other models
The following models were part of the evaluation done during the preliminary stage of this work,
while preparing the M.Sc. research proposal:

Department of Defence Model (DoD)

TCP and IP (Transmission Control Protocol/Internet Protocol) were developed by a Department of
Defence (DoD) research project to connect a number different networks designed by different vendors
into a network of networks (the "Internet"). It was initially successful because it delivered a few basic
services that everyone needed (file transfer, electronic mail, remote logon) across a very large number
of client and server systems. Several computers in a small department can use TCP/IP (along with
other protocols) on a single LAN. The IP component provides routing from the department to the
enterprise network, then to regional networks, and finally to the global Internet. On the battlefield a
communications network, sustain damage, so the DoD designed TCP/IP to be robust and
automatically recover from any node or phone line failure. This design allows the construction of very

Telecom sector modelling from a functional perspective 72

 3BTelecom related models & standards

large networks with less central management. However, because of the automatic recovery, network
problems can go undiagnosed and uncorrected for long periods.
As with all other communications protocol, TCP/IP is composed of layers [36]:
IP: is responsible for moving packet of data from node to node. IP forwards each packet based on
a four-byte destination address (the IP number). The Internet authorities assign ranges of numbers to
different organisations. The organisations assign groups of their numbers to departments. IP operates
on gateway machines that move data from department to organisation to region and then around the
world.
TCP: is responsible for verifying the correct delivery of data from client to server. Data can be lost
in the intermediate network. TCP adds support to detect errors or lost data and to trigger
retransmission until the destination receives the data in complete and right order.
Sockets: It is composed by subroutines packages, which provide access to TCP/IP on most
systems.

Shared Information Data model (SID)

It defines a comprehensive standardised information definitions acting as the common language for all
data to be used in NGOSS-based applications. SID intends to provide a common Information
framework and a model that can be used as a framework for information harmonisation in
telecommunications. It is done by means of providing a vocabulary, grammar, and syntax to be used
by services to provide or receive information. Each provider is responsible for translating its
information into the SID syntax and each receiver is responsible for translating from SID to its own
private syntax. When this is done, each service is completely independent of every other one and can
be replaced or upgraded without influencing any of the other systems in the enterprise.

Telecom applications Map (TAM)

It is also know as Applications Framework. It provides the global telecom software industry with a
frame of reference to understand the relationship of the multitude of operational and business systems
typically found within a service provider or network operator. It has the similar layered and vertical
structure of other NGOSS models: eTOM, SID.
An “application” is defined as a set of one or more software artefacts comprising well-defined
functions, data, business flows, rules, and interfaces. The applications framework provides definitions
of the functionality that can be expected from any OSS or BSS application. In doing that, it enables:

• Procurement documents to be written with reference to the framework, thereby providing

clear unambiguous statements of the functionality required of any given application
• Functional overlaps of existing applications to be identified, thereby facilitating
rationalisation
• Functional gaps to be identified

Telecom sector modelling from a functional perspective 73

 3BTelecom related models & standards

IT Infrastructure Library (ITIL):

The United Kingdom’s Central Computer and Telecommunications Agency (CCTA) created ITIL,
and it is a registered trademark of the UK Government's Office of Government Commerce (usually
known as the OGC). This framework is composed of a series of documents that are used to guide the
implementation of a lifecycle for IT Service Management and it defines how Service Management is
applied within an organisation.
ITIL is organised into a series of five volumes: Service Strategy, Service Design, Service
Transition, Service Operation, and Continual Service Improvement. ITIL defines the organisational
structure and skill requirements of an information technology organisation and a set of standard
operational management procedures and practices to allow the organisation to manage an IT operation
and associated infrastructure. The operational procedures and practices are supplier independent and
apply to all aspects within the IT Infrastructure.
The 'library' itself continues to evolve, with version three, known as ITIL v3, being the current
release. This comprises five distinct volumes: ITIL Service Strategy; ITIL Service Design; ITIL
Service Transition; ITIL Service Operation; and ITIL Continual Service Improvement.
The contents of two most commonly used sets within the previous release; Service Support and
Service Delivery are broadly still present. These were as follows: Incident Management; Problem
Management; Configuration Management; Change Management; Release Management; Service
Desk; Service Level Management; IT Financial Management; Capacity Management; Availability
Management; IT Service Continuity Management; IT Security Management.

4.2.8 Identification of Telecom specific functions

We have discovered that the absolute majority of all functions identified are not Telecom sector
specific, and they can be applied in other contexts (sectors) as well. Almost all the Telecom sector
related models selected have a layered architecture that helps to perform the functions identification
and analysis. Only the FCAPS model is not a layered model. The list in Table 16 can be
characterised as the unique “DNA” part of the Telecom sector, and some other parts of this “DNA”
can be found in other sectors as well.
The 11 specific functions found in the Telecom sector are enumerated in the following table:

Telecom sector modelling from a functional perspective 74

 3BTelecom related models & standards

Function
Broadcasting
Controlling data circuit
interconnection
Controlling the flow of data
Establishing data-link connections
Managing data-link layer
Releasing data-link connections
Roaming
Splitting data-link connection
Streaming data
Transferring data
Transferring expedited data

Table 16: Telecom sector specific functions

Telecom sector modelling from a functional perspective 75

 3BTelecom related models & standards

4.3 Conclusions from this chapter

The set of models selected for the data mining are: OSI, NGOSS, DEMO, eTOM, TMN, FCAPS.
Additionally, other models as ITU-T G.800 and TINA were used as references to look for some
functions that did not appear during the data mining. These functions were known from previous
work in this field (results of those previous works were provided by E. van Boven and J. Hoffmans).
These models serve for different purposes within the Telecom sector, e.g. vendors design the
systems based on their intended functionality (provided in TMN) and service provider’s requirements
are expressed in the e-TOM processes. Processes models show the way service provider must establish
sequences of functions [37].
From these models we can see that even many actions has been automated, people are still
needed to perform some functions, but also to establish a logical link between different functions.
All models proved to have a layered structure, except for FCAPS. Layering demonstrates to
be helpful when trying to understand the composition of services and their components. The layered
structure of most of the models is helpful when trying to discover the services offered by each layer. In
this context, we could define a service as the outcome of any function or grouping of functions, in order
to create extra-value by combining goods and labour.

Telecom sector modelling from a functional perspective 76

 4BNew model from a sector network perspective

5 New model from a sector network perspective

Once the data mining and functions identification was finished, we obtained a long list of function
(see appendix 8.1), which can be mapped onto new models and non-sector dependant views.
In the case of the Telecom sector, there are many models, which address different aspects of
this industry. Some of them give guidance about the organisational structure of a Telecom company;
others are only dealing with technical specifications, or give information about support systems design,
regulatory issues, transport networks, etc. The existence of this diverse set of descriptions only for one
node in the sectors’ network challenges the comprehensive study of this sector, while dealing with the
complexity of the network.
For that reason, we have mapped the telecom sector functions to non-telecom specific models
that have a wider scope of applicability, and can provide us opportunities to identify isomorphisms and
optimisation needs. These models are:
1. STOF
2. Portfolio/CTOM
3. Holon

Telecom sector modelling from a functional perspective 77

 4BNew model from a sector network perspective

5.1 STOF Model

The STOF model has been designed at the Delft University of Technology in TPM faculty (Dr. H.
Bouwman), through an iterative process in which case studies and literature on business model
research played a key role. This process led to the term STOF that incorporates the most important
domains in the model. These signify Service, Technology, Organisation, and Finance [38].

Service domain
The service aspect defines the critical success factors needed to provide a service that has added value to
the customer.
Technology domain
It defines the technological requirements the service offering needs. This part encompasses the
technology architecture, infrastructures, platforms, devices, data, and applications.
Organisation domain
Here is where the collaboration with other organisations is integrated into the model. Apart from the
other organisations, which will need to play a role, the organisation domain also includes the resources
and capabilities the organisation itself must provide.
Finance domain
It defines the financial arrangements such as the investment decision and revenue models behind the
service concept. In other words, the financial aspect covers the costs and revenues of the service
concepts.

Figure 29: Schematic representation of STOF model 25

25
[39] H. Bouwman, Vos, H.d., Haaker, T., Mobile service Innovation and Business Models vol. 1. Berlin:
Springer, 2008.

Telecom sector modelling from a functional perspective 78

 4BNew model from a sector network perspective

The STOF method supports business models design for innovative services that combine
technologies and concepts from the area of telecommunications, information technology and
consumer electronics.

Telecom sector modelling from a functional perspective 79

 4BNew model from a sector network perspective

5.2 Portfolio model

The Portfolio model has been developed at KPN during the nineties (by Prof. N.H.G. Baken et all).
This model, now being commonly used within KPN, discriminates a Commercial portfolio (revenue
focussed), a Technical portfolio (investment focussed), an Operational portfolio (process focussed) and
a Managerial portfolio (governance focussed). In this thesis, the Portfolio model is referred to as well
as “CTOM model”. As all four portfolios have a bilateral relation, together they can be depicted as a
tetraeder that can represent an organisation, a sector etcetera. Both the STOF model and the
Portfolio model can be applied in a broader sense, (not just exclusively focussing on the telecom sector)
[40]
Managerial 
Portfolio

Technical 
Portfolio

Commercial 
Portfolio

Operational 
Portfolio

Figure 30: Portfolio/CTOM Model

Commercial portfolio
The activities associated to the commercial portfolio relate to product-market combinations offered as
services to the end users. Through the combinations of services and markets a company generates its
revenue. What the end-user consumes is often called products existing of goods, labour and/or
services. Typical examples of commercial activities are marketing, service innovation etc. Sales
activities concerning existing commercial portfolio relate to the operational portfolio.

Technical portfolio
The Technical portfolio relates to infrastructure, hardware, software, equipment, tools etc. These
means together enable and support any kind of service. When being invested, these means appear on
the balance sheet as activa (activated assets) and are expected to serve for more than one year.
Investments are referred to as well with the term Capital Expenditure (CAPEX). Typical activities

Telecom sector modelling from a functional perspective 80

 4BNew model from a sector network perspective

associated to the Technical portfolio deal with architecture, engineering, and design of infrastructures
etc.
Operational portfolio
The activities associated to the Operational portfolio reflect the “going concern” processes of an
organisation. They relate to Operational Expenditure (OPEX) being the yearly recurring cost. Typical
operational activities are maintenance, network management, equipment installation, capacity
planning, and provisioning, etc.

Managerial portfolio
The activities associated to the Managerial portfolio mainly concern control and governance.
Though financially steering and controlling an organisation is a prime activity, the managerial
portfolio includes as well:
• Regulatory & Legal Affairs, Intellectual properties
• Human Resource Management
• Corporate Strategy (long, medium & short term)
• Making choices / business cases
• Wholesale & Retail Pricing
• Program & Project management
• Research & Development
• Information & knowledge management
• Vendor management (procurement)
• Corporate Communication, sponsoring
• Corporate reporting

Figure 28 below shows an example of the services provided by each portfolio of a telecom
operator. We can see that the services defined within the commercial portfolio are offered to external
customers, while the services offered by the technical portfolio are kept internal to the organisation.
The operational portfolio combined with the technical portfolio allows for the integration of the end-
user services offered by the commercial portfolio.

Telecom sector modelling from a functional perspective 81

 4BNew model from a sector network perspective

Contractant

Retail Market
Wholesale Market Operational portfolio
Business Consumer

Commercial portfolio Billing Processes

Network Administration
Supporting IT systems
TF, TV, @ People & Organisation
Connectivity
PSTN, GSM,
active UMTS, IP

Ethernet, ATM, SDH

MPLS

WDM, xDSL, UTRAN

Lambda, Frequenties

Fibre, copper
passive Ether

Duct, Tubes, co-locations, cyber center, hosting Buildings

Technical portfolio

Figure 28: Example of services provided by Commercial, Technical and Operational portfolio 26

26
Source: Ing. E.F.M van Boven

Telecom sector modelling from a functional perspective 82

 4BNew model from a sector network perspective

5.3 Holon Model

The Holon Model 27 is applicable to identify any entity at any aggregation level in our economy and
society. This model can be directly related to grammatical syntax of sentences in language.
We have identified three main propositions of this model while carrying out this project 28:
1. Nodes in a network could be considered as holons (and vice versa)
2. A holon is composed of 4 layers: est, vivit, sensit, intelligit
3. Each holon can interact with other holons in their same aggregation level (left & right), not
only with the holons in other levels of the hierarchy/holarchy (up & down)

As a result, the model can serve as a strategic tool for clear identification and characterisation
of the functionalities associated to each sector aspect (domains, portfolios, layers). This model
facilitates to translate user’s requirements into services; in the same way, services can be mapped to the
variety of functions performed by the Telecom sector. Knowing the functions currently supported, it
is possible to identify multiplications. At the same time, we can identify clusters of functions to
produce the results (services) that meet user’s requirements. Additionally, it provides a knowledge
database of functions supported, allowing the concentration of efforts in the improvement of functions
weakly supported or not supported yet.
Thus, the functional perspective helps to optimise current telecom implementations by identifying
multiplication of functions.

Layers
The natural evolution of the brain in the four layers mentioned by P. Vroon [28], was an adaptation
process 29. The evolution proceeded in the following order: est-vivit-sensit-intelligit. We can see how
functional decomposition is a “natural tool” to cope with complexity in order to deal with new
contextual conditions. In the same way, it can be seen how the Telecom sector has evolved into a
complex network. Separation of concerns and partitioning of the reality (whole) into holons, provide
us the tools for controlling the evolution of artificial complex systems. Those holons are stable entities
that collaborate with higher or lower aggregation levels of holons.

27
This model has been proposed by Prof. Dr. ir. N.H.G. Baken.
28
Propositions 1 and 2 were specified by Prof. Dr. ir. N. H. G. Baken. Proposition 3 is a contribution from E. van Boven and N. van
Belleghem.
29
According to Evolutionary Psychology, “the human brain consists of a large collection of functionally specialised computational devices
that evolved to solve the adaptive problems regularly encountered by our hunter-gatherer ancestors” (from the Web site of the Centre for
Evolutionary Psychology at U.C.S.B.).

Telecom sector modelling from a functional perspective 83

 4BNew model from a sector network perspective

If we consider each sentence’s main constituent as a holon too, we can represent holons (and
their relations) in society and economy by means of language. Consequently, the layering of the holon
model is defined as follows:
1. Intelligit: Relates to offering and providing solutions
2. Sensit: Relates to processes
3. Vivit: Relates to active infrastructure
4. Est: Relates to passive infrastructure

The following figure describes these layers in more detail:

Main constituents of a
sentence:
INTELLIGIT A: Aggregation Level
N: Network Number
X= {S, V, O, A, I} h: Sector
SENSIT
S: Subject
V: Verb VIVIT
X hA,l, N,n ,i ( x, t ) l: Layer
n: Type of entity
i: Identity
O: Direct Object x: Position vector
A: Adverbial Adjunct EST t: Time
I: Indirect Object

Figure 30: The Holon Model

It is obvious that the external interactions between nodes modelled as holons mainly occur via
the top and bottom layers. On the intelligit layer, these interactions must match supply-demand rules
(transacting) while on the est layer, they are concerned with a physical connection (transferring).

Telecom sector modelling from a functional perspective 84

 4BNew model from a sector network perspective

5.4 Functions mapping

Firstly, in this section are explained the relations established and the variables selected in order to do
the mapping of the functions extracted from the Telecom sector related models onto the generic
models. Secondly, the results of those mappings are presented and analysed. Afterwards, the value of
the mapping exercise was extended to the meta-functions. Finally, it is explained the importance of
this mapping to identify isomorphisms within the sector network and the impact of this approach in
the study of complex networks.

5.4.1 Relations between sentence main constituents and STOF/CTOM

Table 17 (below) shows the relation of the sentence’s main constituents to the four business domains
(defined in the STOF model) and the four portfolios (defined in the Portfolio-CTOM model). E.g.,
an adverbial adjunct in language relates to the technology domain and the technical portfolio
respectively. An adverbial adjunct describes the infrastructure/tools used to carry out the processes
(verbs) in order to bring about the product for the end-users. Nouns and verbs can describe the
financial domain /managerial portfolio, for that reason, Table 17 does not show any prime relation
between sentences constituents and this domain/portfolio.
At the same tame, based on the definitions of STOF and CTOM models, Table 17 shows the
strong relation between the four domains defined in the STOF and the four portfolios considered in
CTOM. This means that Service domain relates to Commercial portfolio, Technology domain to
Technical portfolio, Organisation domain to Operational portfolio, and Finance domain relates to
Managerial portfolio.

Primary
actor

S e nte nce Business model research Portfolio model Characterisation

La ngua ge
constitue nts
Subjec t
Service domain Commercial portfolio Product-Market-Combinations
Nouns
Direct object T echnology domain T echnical portfolio Infrastructure, Tools
Adverbial adjunct
Organization domain Operational portfolio Processes, Going concern
Indirect object
V erbs Finite verb Finance domain M anagerial portfolio Control, Steer, Innovate

Secondary
actor

Table 17: Prime relations between sentence constituents, business domains, portfolios and actors

Processes are clusters of functions with a logical sequence. The effect of using processes (verbs)
along with tools or infrastructure components (adverbial adjuncts) is the realisation of the product

Telecom sector modelling from a functional perspective 85

 4BNew model from a sector network perspective

(direct object) obtaining a certain added value (see Figure 29 below). In order to consolidate the value
of the product it is necessary to establish conditions and rules between actors’ roles (e.g. SLA’s). The
rules and conditions must be expressed with the right terms and constructions. The long list of
functions in 8.1 provides all the verbs that describe/characterise activities and processes in the Telecom
sector.
Commercial
Value
Direct object

Turnover

Operational

Verbs

Technical OPEX

Adverbial adjunct

CAPEX

Figure 29: Effect of using Technical and Operational portfolio together

5.4.2 Variables selection to apply the Holon model to the Telecom sector

The concept of the Holon model was applied to modelling the Telecom sector from a functional
perspective. In order to do that, the variables in Figure 30 were set as follows:

• X= V, which means that we are looking at verbs

• A= 10 y , the aggregation level is the sectors’ network
• N= {1 …}, it can be any number because we are not looking at any specific network
• h= Telecom, because this is the domain research of this thesis
• l= 1, 2, 3, 4, we were looking for verbs in all the four layers
• n= {1, 2, 3}, the value of this variable is derived from an example to classify the verbs from a
sector network perspective. The three meta-functions (transact, transform, transfer) are to be
generic in the sector network, in order to relate any verb to one of them [12].

Telecom sector modelling from a functional perspective 86

 4BNew model from a sector network perspective

The Telecom sector is a holon in the sector’s network. Each holon is an entity that can be
described by language. In section 3.2.1, explains that functions strongly relate to verbs, and verbs relate
3

to activities, so we identified verbs related to the Telecom sector at each of the four layers. We
decided to define each layer of the holon model in terms of activities. Therefore, we mapped the
identified functions by applying this definition (see section 5.3) to activities and their respective values
(see bottom of previous page):

1. Intelligit: Activities performed by persons to provide solutions. E.g. at sector level: Strategy
planning, innovating, managing, deciding
2. Sensit: Activities performed by persons or systems to provide the services using the activated
resources. E.g. billing, dimensioning, authenticating, overbooking, maintaining
3. Vivit: Activities performed by systems or persons to operate/activate the physical resources.
E.g. timing, multiplexing, powering, addressing, storing
4. Est: Activities performed by passive systems (physical resources). E.g. conducting

5.4.3 Mapping to STOF/CTOM

Mapping to STOF/CTOM & Holon Model

128

140
128
120
# of Functions

100 21

80 9
9
60
40 39 Finance/Managerial
9
20 Operational/Organisation
1
0 10
2
Technical
lio

Intelligit
r tfo

Sensit
/P o

Service/Commercial
Vivit
a in

Hol Est
Do m

on Mod
e l

Figure 31: Functions mapping to STOF/CTOM & Holon Model

The results of mapping verbs to the domains and portfolios described by the STOF methodology and
the Portfolio/CTOM model were consequent with their definitions and the relation between them
(see Table 17). As it was explained in section 5.2, verbs are mainly related to the organisation domain

Telecom sector modelling from a functional perspective 87

 4BNew model from a sector network perspective

and the operational portfolio. In Figure 31, it can be observed that for the telecom sector most of the
functions were found in that domain/portfolio. The lowest amount of functions was found in the
service domain/commercial portfolio.

5.4.4 Mapping to meta-functions

Figure 32 reveals that most of the functions performed by the Telecom sector are concentrated on the
transforming meta-function, which means that currently, the processes of this sector are focused in the
internal transformation of resources into goods/services by adding value to its unique function
(transferring of data by means of EM waves). However, the transferring meta-function has more
related functions allocated in the vivit layer, which means that this meta-function is mainly supported
by the activated infrastructure than by processes.

Mapping to Meta-functions & Holon Model

92
100 62

80 69
22
# of Functions

4
60
15
40 42 1
Transfer
20 12
s
t ion

0 1
11 Transform
func

Intelligit
Sensit
a-

Transact
Met

Vivit

Ho Est
l on
Mo
del

Figure 32: Functions mapping to Meta-functions & Holon model

By identifying the generic functions in the sectors’ network and the specific functions of each
sector, it should be possible to discover transactions patterns between actors in those sectors.
Clustering analysis of the functions relations could help to identify those transaction patterns. This
could lead to defining the actor roles needed to accomplish the cycle of a transaction. It could be
interesting to model a trader function, which helps to find out where the functions are “hanging out”
and to orchestrate them in order to link and satisfy supply-demand relations.

Telecom sector modelling from a functional perspective 88

 4BNew model from a sector network perspective

5.4.5 Functions mapping to Holon Model

The results in Figure 31, Figure 32, Table 18, Table 19 provide evidence that a strong relation exists
between verbs/functions and the sensit layer of the Holon model. Even though, there is a significant
amount of functions concentrated in the vivit layer (142 functions), comparable to the 156 functions
mapped onto the sensit layer. Furthermore, in the organisational domain/operational portfolio there is
the same number of functions in both layers (128 functions). In the technical domain/portfolio the
vivit layer outnumbers the functions in the sensit layer, which could mean that currently in the
Telecom sector, the efforts are more concentrated in keeping the infrastructure “alive” or operative.
Nevertheless, the trend observed in the functions allocation is that inside the Telecom sector,
there is a transition in the concentration of functions from vivit to sensit, which could mean that
nowadays in this sector the devices and machines are changing in order to support tasks that are more
difficult.

Holon Layer Service/Commercial Technical Operational/Organisation Finance/Managerial Grand Total

Intelligit 1 9 21 31
Sensit 10 9 128 9 156
Vivit 39 103 142
Est 2 2
Grand Total 11 50 240 30 331

Table 18: Mapping of functions to Holon and STOF/CTOM

Holon Layer Transact Transform Transfer Grand Total

Intelligit 12 15 4 31
Sensit 42 92 22 156
Vivit 11 69 62 142
Est 1 1 2
Grand Total 65 177 89 331

Table 19: Mapping of functions to Holon and Meta-functions

5.4.6 Most popular functions

This exercise was executed using the application Cytoscape, which is open source software for network
analysis and visualisation purposes 30.
Figure 33 the green nodes represent functions (verbs), the yellow nodes represent the
models/standards taken into account for the extraction of functions. The links represent the
association between any (identified) function and the models studied. If a function is mentioned in

30
This graph does not include all the 331 functions listed in appendix 8.1 due to it was done during an interim stage of this research, before
concluding the functions identification.

Telecom sector modelling from a functional perspective 89

 4BNew model from a sector network perspective

any layer of a model, then a link is depicted in the graph. The nodes with degree greater than one (it
means, that a node appears in more than one model) are positioned on the central circle, being labelled
as “the most popular functions”.

TINA
Most popular functions ITU G.800

1 Activating
2 Administrating
3 Analising
4 Assuring
4 Buffering
5 Collecting
6 Configuring
7 Controlling
8 Copying
9 Defining
10 Delivering
11 Detecting e-TOM
NGOSS
12 Distributing
13 Handling
OSI
14 Identifiying DEMO
15 Installing
16 Isolating
17 Maintaining
18 Managing
19 Mapping
20 Monitoring
21 Operating
FCAPS
22 Planning TMN
23 Protecting
24 Provisioning
25 Recognising
26 Recording
27 Recovering
28 Reporting
29 Setting
30 Storing
31 Supporting
32 Transfering
33 Transmitting

Figure 33: Graph visualisation exercise showing “the most popular functions”

5.4.7 Isomorphic translation to other sectors and aggregation levels

The Telecom sector’s main function is transferring data over distance and time by means of EM waves,
among other functions performed by this sector. Moreover, these functions can be classified into
atomic & composed and/or generic & specific by using the criteria proposed in section 3.2.2. Taking 3

Telecom sector modelling from a functional perspective 90

 4BNew model from a sector network perspective

the Telecom sector as an example, some of the functions identified and inventoried in the long list of
appendix 8.1, were classified according those criteria (see Figure 34).
3

Generic Functions

(Multi-Sector)
Transact,
Housing Transform
Transfer

Atomic Functions Composed Functions

Conducting Broadcast
EM wave

Specific Functions

(Telecom Sector)

Figure 34: Functions classification (Telecom sector example)

The meta-functions are a special subset of generic & composed functions; all sectors perform
them in order to provide their value and to interact with the other nodes. Of course the intersection of
generic and composed functions have more elements that the three meta-functions.
QoS enabled services over an NGN example should show a trans-sector approach, in order to
make it applicable to other sectors. Nevertheless, we can do the same for other sectors, by having
studied the Telecom sector now we can do it in this domain and then transfer it to other nodes in the
sector’s network.
We can look at it as if we have a “Functions Kitchen” for every sector. Currently, due to
increased complexity those “Functions Kitchens” need to be cleaned up. Once we have done this, we
can build the “Trans-sector Kitchen”. In the scope of this work, we are focused on the “Telecom
sector functions kitchen”. For example, if we want to “cook” a new dish called QoS enabled services over
a NG Network, we need to clean up first the “Telecom kitchen”, and then if we want to transfer this
new “receipt” to other sectors, we need to clean up their “functions kitchens” as well. The interesting
point here is to show that we do not need to do the complete work again for every sector, in order to
solve (to cook the same dish) the same QoS issue in other sectors (other kitchens).

Telecom sector modelling from a functional perspective 91

 4BNew model from a sector network perspective

5.4.8 Layered nodes in graph theory studies

From the conclusions in chapter 3, we propose to look at nodes in a network as four-tiered holons,
where different functions can be mapped on each layer. These four layers are the ones defined in
section 5.3, namely: est, vivit, sensit, intelligit.
Holons are part of a hierarchy (holarchy [23]) as well as of a network with links to their
neighbours at the same aggregation level, taking care of its up & down relations but we propose that
those holons also should take care of the relations with their neighbours (left & right). This approach
could lead us to changes of network topology representation as it is depicted in the following figure:

Telecom 
Sector
Sectors’ network
Nodes & links between nodes

Telecom 
Node
Sector

Sectors’ network
Managerial
Holons & links between  Holon
their est layer

Technical
Holon

Commercial
Telecom  Holon Operational
Holon Sector Holon

Organisational level

Sectors’ network
Holons & links between 
any layer

Figure 35: Graphs from nodes to holons and multi-tiered connections

Telecom sector modelling from a functional perspective 92

 4BNew model from a sector network perspective

5.5 Conclusions from this chapter

In order to test our idea that a functional portfolio is: a) Implementation independent and, b) it can be
useful on sector network level, we needed to select generic (non-telecom specific) models, namely
STOF, Portfolio/CTOM and Holon models. As we have discovered from data mining that only a
small minority of the functions assessed were telecom specific (see section 4.2.8), we were able to show
the possibilities of reuse of functions in many sectors by mapping them onto the generic models.
Functions strongly relate to activities. Likewise, activities strongly relate to verbs. Human
language consists of nouns and verbs. Even more, human language is a universal bridge in between
many models that try to reflect reality.
Taking into account that holons are composed by holons, each one looking up & down to
other aggregation’s level (according to the Janus effect explained in section 3.3), from a network of
3

networks perspective, we consider is recommendable also to look at left & right (see Figure 18 and
Figure 35). At the highest functional abstraction level we identified three meta-functions (transact,
transform, transfer) that always appear in every sector.
Even though this work is about the Telecom sector, its results can be extrapolated to other
sectors within the sectors’ network. Looking at Figure 33, the most popular functions are all generic
(not specific), so it provides us a functions set to start an isomorphic translation exercise. In general,
the issue to be addressed with a trans-sector point of view is to reach Quality of Life and this implies
Quality of Service.

Telecom sector modelling from a functional perspective 93

 5BModel validation

6 Model validation

The value of having extracted a list of functions is to provide a modular structure that makes it easy to
map the functions into different domains and portfolios. At the same time, it provides the catalogue
of functions, which can be used to support services orchestration. The functions identification should
lead to support the future development of the top layer (intelligit) because it needs to be filled with
new offerings to other nodes in the sectors network. This is the key for operators to survive in the new
telecom landscape, bringing about new services and efficiently providing current ones.
The list of functions can be denominated as “the functional portfolio” of a Telecom organisation.
End-user requirements (and services) can be mapped to functions, while at the same time functions
can be mapped to technical platforms and any specific implementation of a telecom network. In
consequence, the functional portfolio constitutes an intermediating tool, which can be used to map
services onto technical platforms. The importance of this approach is that functions are stable
intermediate elements that can be related to constantly changing entities (services and technical
platforms). The following figure shows how the list of functions performs a bridging role between
services and implementations.

Mapping needs to Mapping functions to

functions implementations

Function
Activating connection
Broadcasting
Controlling data circuit
interconnection
Controlling the flow of data
Establishing data-link connections
Establishing transport connections

Real world Managing data-link layer

Releasing data-link connections

communications
Roaming
Splitting data-link connection
Streaming data
Specific telecom
needs
Transferring data
Transferring expedited data implementations
Functional portfolio

Figure 39: How functions intermediate between end-user requirements and implementations

Since functional models are independent from the implementation and construction of
systems, the functional portfolio could be used along with any technical specification, without
regarding its technology.
To exemplify the value and usefulness of this work, we applied it to this case: identify the
future functional specifications of a QoS enabled NGN (see next section).

Telecom sector modelling from a functional perspective 94

 5BModel validation

6.1 Example: Expected functions to provide QoS enabled NGN services

When trans-sector innovation takes off the Telecom sector can benefit as bandwidth consumption will
increase accordingly. The technical infrastructure must be equipped with functions enabling packaged
solutions for the end-user.
In the operational and technical portfolios of any telecommunication organisation is important to
have the following functionalities [18]:
• End-to-End (E2E) quality control
• Adaptation: Flexibility to adapt customer needs
• Network management
• Reliability engineering

The Quality of Service concept comprises the following main components:

• Ingress control
• Differentiation of traffic flows through the network
• Several connections modes: Packet (buffers), circuit (fixed delay)
• Definition of constraint parameters

QoS requirements for NGNs should specify:

• Cost effectiveness
• Robustness
• E2E Guarantee
• Security
• Mobility
• Multi-domain functionality

These together can differentiate telecom services providers from others and make them more
preferred by customers. It also could have an effect on the ratio price/quality expected.
Taking into account the requirements for providing QoS and the requirement for NGN explained
in sections 2.3, and the information from previous paragraphs, we have come up with the following
table, where are shown some of the basic functions to provide QoS in a NGN (taken from the list of
functions in appendix 8.1). The capital characters represent the prime relation (mapping) to each
model. E.g. Billing has a prime relation with transact, sensit, vivit, and organisation
domain/operational portfolio; it has a secondary relation with service domain/commercial portfolio.

Telecom sector modelling from a functional perspective 95

 5BModel validation

Holon
Function Domain/Portfolio Meta-function
layer
Addressing To/To Transform/transfer V
Admission Controlling
Assuring O Transact S
Authenticating O Transact S
Authorising tO/tO Transact/transfer S
Billing sO/cO Transact SV
Connection controlling O Transfer sV
Orchestrated dimensioning stOf/ctOm Transform S
Orchestrated provisioning Ot/Ot Transform/Transfer V
Policing Of/Om Transact Sv
Switching T Transfer V
Synchronising T Transfer V
Timing stOF/ctOm TTT V

Table 18: Basic functions to provide QoS in an NGN

All the functions enumerated in Table 18 were found in the list of appendix 8.1, except for
admission controlling. Functions like dimensioning and provisioning must be modified, in order to be
realised in an orchestrated manner as it is required to provide QoS in an NGN. In section 2.2.2, we
observed that tele-communications overcome successfully the time and distance constraints. New
functions should be focused on overcoming the third constraint (richness), without affecting current
functionalities. The expected new functions of the Telecom sector must enable virtual reality and
virtual mobility [12] while keeping an acceptable QoS.
From this example, we could conclude that enabling QoS in a network is not only a matter of
the technology domain and the technical portfolio. The required functions relate as well to
organisation, service financial domains; and operational, managerial, commercial portfolios. In an
interview with a telecom expert from KPN (P. Veenstra), he explained that an important current issue
within KPN is how to migrate services from legacy to NGN with low impact on the QoS and taking
into account the life cycle of the diverse service platforms.

Telecom sector modelling from a functional perspective 96

 5BModel validation

6.2 Function allocation advise

In general, the technical infrastructure of incumbent operators shows that the architecture is
characterised by a huge amount of different platforms from different vendors. Although, the transport
platform of the future is Ethernet, many legacy platforms run next to each other since it proved to be
quite hard to migrate users and technologies entirely from legacy platforms to a new one. The trend in
the telecom network architecture, as SDF and IMS recommend, is to allocate reusable functions in the
core.
Functional analysis of services and technical platforms should help us to forecast new
functions to add in the whole portfolio. For this case, we can predict the following new functions to
be allocated in the telecom network infrastructure (currently we can find them in the CPEs 31):
• Unified access to all services
• Managing contacts: Today it is done in the user devices: PDA, mobile, etc)
• Managing reach-ability status: Available, busy, and away
• Managing contact mode: For instance, from mail to phone

Other new expected functions are:

• Trading functions (looking for where are functions hanging)
• Orchestrating services
• Updating position and status

The optimisation in the technical architecture can reduce costs in housing and energy expenditures,
which have direct impact on the organisation profits. This technically based separation between
network facilities and services might help functional organisational demarcation of the processes
executed by telecom actors.

31
Customer Premise Equipment

Telecom sector modelling from a functional perspective 97

 5BModel validation

6.3 Conclusions from this chapter

The main question to be answered by this research is how to identify a best of breed model that
reflects Telecom sector functionality in the context of a sector’s network. The research methodology
described in Figure 3, proved to be suitable to obtain a functional model. The answer to this “how”
question was given via the following steps:
4. Selecting sector specific standards and models based on the proposed criteria
5. Extracting functions from those models and long-listing them (functional portfolio)
6. Mapping functions to generic (non-telecom sector specific) model (testing)

We have obtained a list of functions that was mapped to three selected generic models (STOF,
CTOM, Holon) and to the meta-functions (that are common to all sectors). This led to the
conclusion that it is possible to derive a novel functional model from the existing models, if we have a
focus on a specific target (in our case: to serve the sectors network).

The best of breed model we have chosen is based on the Holon concept:
1. Nodes in a network could be considered as holons (and vice versa)
2. Holons are four-tiered entities
3. Each holon can interact with other holons on peer aggregation level (“left & right”), not
only with the holons in other levels of the hierarchy/holarchy (“up & down”)

In the end, the functional perspective is accomplished by means of filling in the layers of this
Holon model with the functions listed in appendix 8.1.
The value of this holon based model is that it provides a tool to bridge current or future end-
user requirements towards any specific implementation.

Telecom sector modelling from a functional perspective 98

 6BConclusions and recommendations

7 Conclusions and recommendations

Functions strongly relate to activities. Moreover, activities strongly relate to verbs. Human language
consists of nouns and verbs. Therefore, verbs related to telecommunications where chosen to be
inventoried and studied in this thesis. Based on the axiom that functions can be studied apart from
their specific implementations, it is a logical step to study sectors’ networks from a functional
perspective, in order to obtain a common view applicable to all of the nodes in that network.
As there is no global consensus on the definition of sectors, including the Telecom sector, it
was necessary to investigate which activities relate to the Telecom sector and identify which functions
can be considered unique functions, in order to set up the boundaries of our research domain. From
this work, we derived a definition of the Telecom sector in chapter 2.
Most of the models assessed proved to have a layered structure that facilitates functions
identification and classification. We found proof that only a small minority of the functions extracted
from those models are Telecom specific. The functions identified were mapped to other models
which are non-telecom sector specific, they are: STOF Model that looks at Service, Technology,
Organisation, Financial domains; Portfolio/CTOM model that defines a Commercial, Technical,
Operational and Managerial portfolios, and the Holon model which defines four layers, namely est,
vivit, sensit, intelligit. From those mappings, we discovered that the operational
portfolio/organisational domain and the sensit+vivit layers in the Telecom sector holon seem to host
the majority of functions identified.
The mapping validation to the Holon model shows the need of more sophisticated composed
functions to fill in the higher layers (sensit, intelligit). Currently, people almost exclusively execute the
functions in these two upper layers. Over time machines are expected to perform functions that
typically reside in the sensit layer. These sophisticated functions will enable the specification of new
services that should be supported by the Telecom sector in order to cope with the complex relations
established in the sector’s network.
The long list of functions extracted from the studied models (see appendix 8.1) does not claim
to be complete, because in time new functions will arise. This list provides a description of the
functional portfolio. Human beings and artificial systems, both can perform these activities described
in the functional portfolio, so an interesting exercise could be to re-allocate functions that are currently
performed by human entities to artificial systems (telecommunications networks, management systems,
IT tools, software, etc), that can be more or less easily automated.
The functional approach presented here builds on the strengths of functional decomposition,
which can be traduced in the following features for the Telecom sector:
• Reuse of functions (optimisation)

Telecom sector modelling from a functional perspective 99

 6BConclusions and recommendations

• Facilitation of new services design, integration

• Time to the market reduction
• Service discovery improvement
• Modular components with specific functions (helping migration to NGN)
• Adaptability (in a constant changing environment)

Having discovered that from a sectors’ network perspective a layered node (which we propose to
call it a holon as well) seems to make sense, one of the next steps is to study complex networks with
three overlays above the physical layer (est layer). Currently, the research community of complex
networks has confined itself to studying only one or two layers. From this study, we conclude that a
physical layer can be brought to life when four-tiered holon nodes and networks are considered, doing
so it could reflect reality more closely.
From the analysis, we noticed that the Telecom sector holon layers that mainly interface with their
surrounding neighbours are intelligit and est. They should be concentrated in the relation of the holon
with its external context (network), and the intermediate layers should tend to deal with internal
processes that transform value, as is depicted in Table 19 below. Even though, in the real world and
any aggregation level, we can observe that the top layer (namely Intelligit) of any holon often over-
concentrates efforts on internal affairs. This behaviour can isolate the holon from other nodes in the
network. Probably this conclusion can be drawn too for other sectors than Telecom, but this was not
proven (outside the scope of this thesis).
Focus
Holon layer
External Internal
1 Intelligit Prime Secondary
2 Sensit Secondary Prime
3 Vivit Secondary Prime
4 Est Prime Secondary

Table 19: Holon layers prime and secondary focus

Recommendations

Obviously, it seems interesting to spend more research resources on the relation and possibilities that
current status quo of overlay networks and graph theory can provide to understand the sectors’
networks, which are composed by nodes with more than two layers.
In the end, what we want to do is to improve the performance of the sector’s network, and in
general, we want to understand how to improve the performance of a network. For this reason, it is
important to define first what a network is (as we can do it in the Telecom sector), then what a sector
is. To do it, some times it is necessary to reorganise things at deeper levels (e.g. at sector level). After
this, we can redefine the sectors’ network as it should be defined before, and then we can start talking
about performance of the network, trans-sector innovation, etc.

Telecom sector modelling from a functional perspective 100

 6BConclusions and recommendations

REFERENCES

[1] M. Bunge, Treatise on basic philosophy. Ontology II. A world of systems vol. 4. Dordrecht: Reidel,
1979.
[2] N. H. G. Baken, van Belleghem, N., van Boven, E., de Korte, A., "Unravelling 21st Century
Riddles - Universal Network Visions from a Human Perspective," The Journal of the
Communication Network, 2007.
[3] "International Standard of Industrial Classification of All Economic Activities (ISIC) Rev.4,"
in ISIC Rev.4. vol. Series M No. 4, D. o. E. a. S. A. o. t. U. Nations, Ed. New York: United
Nations, 2008, p. 307.
[4] OECD, "OECD definitions of the information economy sectors (Annex 1B)," in Guide to
Measuring the Information Society vol. JT00193469, OECD, Ed. Paris, France, 2007.
[5] A. Wasser, M. Lincoln, R. Karni, "Accelerated Enterprise Process Modeling Through a
Formalised Functional Typology," in Business Process Management, 3rd International Conference,
Nancy, France, September 5-8, 2005, pp. 446-451.
[6] "Dutch Research Delta,"
http://www.dutchresearchdelta.nl/DutchResearchDelta/Themes/Trans-
sectoral+Innovation/default.aspx.
[7] N. H. G. Baken, van Boven, E., Madureira, A., "Renaissance of the Incumbents. Network
Visions from a Human Perspective," in eChallenges 2007, The Hague, 2007.
[8] "International Standard Industrial Classification of All Economic Activities (ISIC) Rev. 4,"
United Nations.
[9] "Unified functional architecture of transport networks," in ITU-T G.800, ITU-T, Ed.: ITU,
September 2007, p. 48.
[10] "CCIT/ITU-T 50 Years of Excellence," ITU 2006.
[11] Q. Jiayin, Li Da, Xu., Huaying, Shu., Huaizu, Li, "Knowledge Management in OSS—an
Enterprise Information System for the Telecommunications Industry," in Systems Research and
Behavioral Science: Published online in Wiley InterScience (www.interscience.wiley.com),
2006, pp. 177-190.
[12] N. H. G. Baken, van Boven, E., Feunekes, B., Hoffmans, J., Mesgar Zadeh, S., "Trusted
transactions transforming your life," in FITCE London, 2008.
[13] M. H. Garschhammer, R.; Hegering, H.-G.; Kempter, B.; Radisic, I.; Rolle, H.; Schmidt, H.;
Langer, M.; Nerb, M., "Towards generic service management concepts a service model based
approach," 2001 IEEE/IFIP International Symposium on Integrated Network Management
Proceedings, pp. pp.719-732, 2001.
[14] "OECD Communications Outlook 2007," OECD, July 2007, p. 310.

Telecom sector modelling from a functional perspective 101

 6BConclusions and recommendations

[15] D. W. G. Z. J. Yang, "Cloud to cloud: a framework model for next generation network
management . ICT 2003," in 10th International Conference on Telecommunications. vol. 1:
IEEE Xplorer, 2003, pp. 240-245.
[16] OECD, "OECD Policy guidance on convergence and NGN networks," in OECD Ministerial
Meeting on the future of Internet Economy, Seoul, Korea, June 2008.
[17] H. Bastiaansen, P. Hermans, "Managing Agility through Service Orientation in an Open
Telecommunication Value Chain," IEEE Communications Magazine, pp. 86-93, October 2006.
[18] F. van Den Dool, "Telecommunication system architectures: Dealing with complexity,"
International Journal of Communication Systems, vol. 7, pp. 1-6, 1994.
[19] P. van Mieghem, Data Communications Networking. Amsterdam: Techne Press, 2006.
[20] "The NGOSS Lifecycle and Methodology " in GB927, Release 4.5, v.1.3 .1, T. Forum, Ed.:
TMF, November 2004, p. 51.
[21] J. L. G. Dietz, Enterprise Ontology: Theory and Methodology: Springer-Verlag New York, Inc,
May 2006.
[22] A.-L. Barabasi, Linked, The New Science of Networks. Cambridge: Basic Books, 2003.
[23] A. Koestler, The ghost in the machine. London: Hutchinson, 1967.
[24] U. G. D. Kimbrough Oller, "Evolution of communication systems," in A comparative approach,
2004.
[25] N. H. G. Baken, Bastiaansen, H.J.M., "Using Advanced Integration Concepts for Trans-
sector Innovation- View and Status," in FITCE Warsaw, Poland, 2007.
[26] "PMA-Holonic page (Holonic Manufacturing systems),"Leuven:
http://www.mech.kuleuven.be/goa/hms-int/history.html, Katholieke Universiteit Leuven.
[27] A. Jamakovic, "Characterisation of complex networks," in NAS. vol. Ph.D Delft, The
Netherlands: Delf University of Technology, 2008, p. 115.
[28] P. Vroon, Tranen van de krokodil: over de snelle evolutie van onze hersenen. Baarn: AMBO, 1989.
[29] "Open Systems Interconnection (OSI) – Model and notation, service definition. Reference
model of open systems interconnection for CCITT applications," in ITU-T X.200, ITU-T,
Ed.: ITU, 1988, p. 52.
[30] A. Pras, van Beijnum, B., Sprenkels, R., "Introduction to TMN," Enschede, The
Netherlands, 1999.
[31] "Enhanced Telecom Operations Map (eTOM) –The business process framework," in ITU-T
M.3050.1, ITU-T, Ed.: ITU, 2004, p. 54.
[32] "Telecommunications management network-TMN Management Functions," in ITU-T
M.3400, ITU-T, Ed.: ITU, February 2000, p. 110.
[33] "NGOSS Contracts," in GB942, Release 1.0, v1.2, T. Forum, Ed.: TMF, 2008, p. 78.
[34] "Network Dictionary. ," http://www.networkdictionary.com/telecom/tmn.php.
[35] M. B. Kelly, "The TeleManagement Forum’s Enhanced Telecom Operations Map (eTOM),"
Journal of Network and Systems Management, vol. 11, pp. 109-119, March 2003.

Telecom sector modelling from a functional perspective 102

 6BConclusions and recommendations

[36] "Yale University," http://www.yale.edu/pclt/COMM/TCPIP.HTM.

[37] "Business Process Framework (e-TOM)-Addendum T: eTOM to M.3400 Mapping
application note," in GB921T Release 4.5, v. 4.6.1, T. Forum, Ed.: TMF, 2004, p. 98.
[38] L. d. Jonge, "A business model for the smart home," in TPM. vol. Master Delft: TU Delft,
2009.
[39] H. Bouwman, Vos, H.d., Haaker, T., Mobile service Innovation and Business Models vol. 1.
Berlin: Springer, 2008.
[40] N. H. G. Baken, Options for options. Management of strategic Innovations in an Uncertain
Telecom World. The Hague, 2003.
[41] "DEMO," www.demo.nl.
[42] "The NGOSS Technology-Neutral Architecture " in TMF053, Release 4.0, v4.0, T. Forum,
Ed.: TMF, January 2004, p. 67.
[43] "Business Process Framework (e-TOM)-Addendum P: An eTOM Primer," in GB921P
Release 4.5, v. 4.6.1, T. Forum, Ed.: TMF, 2004, p. 35.
[44] "TMN Management Services and Telecommunications Managed Areas: Overview," in ITU-
T M.3200, ITU-T, Ed.: ITU, April 1997.

Telecom sector modelling from a functional perspective 103

 8 APPENDICES

Telecom sector modelling from a functional perspective 104

 7BAPPENDICES

8.1 APPENDIX A: Telecom sector list of functions and mapping

Models assessed: 8
Total number of functions: 331
Total number of verbs: 162
Number of repeated verbs: 51
Most popular functions: 33

Telecom sector modelling from a functional perspective 105

 7BAPPENDICES

8.2 APPENDIX B: Ontological definition of sector

Recognition and characterisation of the sectors and subsystems of a given society is on point of focus
in large systems analysis. In his treatise on basic philosophy [1], Bunge considers human society as a
system with the following properties:
• Some members do labour, thus transforming the environment
• Every member shares information, services or goods with some others members of the same
community
If we say that σ is the human society, the structure S (σ) of σ, is equal to the disjoint union of two sets
of relations:
• S: Social relation: information, goods, services, management
• T: Transformation Relations
The structure S among the members of a society must include man-transforming relations (e.g.
educating, organising, coercing) and they must be set up and maintained with the help of
communication.
The homogeneous set of subsystems of a given society is called F-system, where F is (are) the
function(s) characterising the member subsystems in contra distinction to others.

S (σ) = {σ є ∑ | σ’ С σ}: Collection of all social subsystems of σ

Let F be certain set of T-relations: F С T:

F (σ) = {σ’ є S (σ) | F C S (σ’) С S (σ)}: Collection of subsystems where F relation holds
Then,
a. F (σ) is called F-sector of σ. All the transformation relations contained in the subsystems
structure (σ’) define the F-sector.
b. G (σ) are called the generic functions of the subsystems of σ. These functions are common to
all the social subsystems in and they are part of the structure of each σ’.
c. FS (σ) are the specific functions of the F-sector of σ. These functions are in the structure of
each subsystem σ’ but not in G (σ).

The functions that are proper to all social subsystems are:

• Consuming or transforming energy
• Producing waste products
• Communicating with other subsystems of the community

Telecom sector modelling from a functional perspective 106

 7BAPPENDICES

There is some division of labour in every society. Every human society has a number of sectors. Some
sectors of every human society are systems.

Methodological theorem: Every society can be analysed into a number of sectors and sub-systems.

The set of all the F-sectors of all societies, regardless of their spatial and temporal relation is called
institution. Ex: All school sectors ÆEducation

Telecom sector modelling from a functional perspective 107

 7BAPPENDICES

8.3 APPENDIX C: Telecommunications in ISIC Rev.4

Sections

• A - Agriculture, forestry and fishing

• B - Mining and quarrying
• C- Manufacturing
• D - Electricity, gas, steam and air conditioning supply
• E - Water supply; sewerage, waste management and remediation activities
• F - Construction
• G - Wholesale and retail trade; repair of motor vehicles and motorcycles
• H - Transportation and storage
• I- Accommodation and food service activities
• J - Information and communication
• K - Financial and insurance activities
• L- Real estate activities
• M- Professional, scientific and technical activities
• N- Administrative and support service activities
• O - Public administration and defence; compulsory social security
• P- Education
• Q- Human health and social work activities
• R - Arts, entertainment and recreation
• S - Other service activities
• T- Activities of households as employers; undifferentiated goods- and services-producing
activities of households for own use
• U - Activities of extraterritorial organisations and bodies

Detail of Section J: Information and communication

This Section is divided into the following Divisions:

• 58 - Publishing activities
• 59 - Motion picture, video and television programme production, sound recording and music
publishing activities
• 60 - Programming and broadcasting activities
• 61 - Telecommunications
• 62- Computer programming, consultancy and related activities

Telecom sector modelling from a functional perspective 108

 7BAPPENDICES

• 63- Information service activities

This section includes the production and distribution of information and cultural products, the
provision of the means to transmit or distribute these products, as well as data or communications,
information technology activities and the processing of data and other information service activities.
The main components of this section are publishing activities (division 58), including software
publishing, motion picture and sound recording activities (division 59), radio and TV broadcasting
and programming activities (division 60), telecommunications activities (division 61) and information
technology activities (division 62) and other information service activities (division 63).
Publishing includes the acquisition of copyrights to content (information products) and
making this content available to the general public by engaging in (or arranging for) the reproduction
and distribution of this content in various forms. All the feasible forms of publishing (in print,
electronic, or audio form, on the internet, as multimedia products such as CD-ROM reference books
etc.) are included in this section.
Activities related to production and distribution of TV programming span divisions 59, 60
and 61, reflecting different stages in this process. Individual components, such as movies, television
series etc. are produced by activities in division 59, while the creation of a complete television channel
programme, from components produced in division 59 or other components (such as live news
programming) is included in division 60. Division 60 also includes the broadcasting of this
programme by the producer. The distribution of the complete television programme by third parties,
i.e. without any alteration of the content, is included in division 61. This distribution in division 61
can be done through broadcasting, satellite or cable systems.

Details of Division 61- Telecommunications

This Division is divided into the following Groups:

• 611- Wired telecommunications activities

• 612- Wireless telecommunications activities
• 613 - Satellite telecommunications activities
• 619 - Other telecommunications activities

This division includes the activities of providing telecommunications and related service activities, i.e.
transmitting voice, data, text, sound, and video. The transmission facilities that carry out these
activities may be based on a single technology or a combination of technologies. The commonality of
activities classified in this division is the transmission of content, without being involved in its creation.
The breakdown in this division is based on the type of infrastructure operated.
In the case of transmission of television signals, this may include the bundling of complete
programming channels (produced in division 60) in to programme packages for distribution.

Telecom sector modelling from a functional perspective 109

 7BAPPENDICES

• Class: 6130 - Satellite telecommunications activities

This class includes:

- operating, maintaining or providing access to facilities for the transmission of voice, data, text, sound
and video using a satellite telecommunications infrastructure
- delivery of visual, aural or textual programming received from cable networks, local television stations
or radio networks to consumers via direct-to-home satellite systems (The units classified here do not
generally originate programming material.)
This class also includes:
- Provision of Internet access by the operator of the satellite infrastructure
This class excludes:
- telecommunications resellers, see 6190

• Class: 6190 - Other telecommunications activities

This class includes:

- Provision of specialised telecommunications applications, such as satellite tracking, communications
telemetry, and radar station operations
- Operation of satellite terminal stations and associated facilities operationally connected with one or
more terrestrial communications systems and capable of transmitting telecommunications to or
receiving telecommunications from satellite systems
- Provision of Internet access over networks between the client and the ISP not owned or controlled
by the ISP, such as dial-up Internet access etc.
- Provision of telephone and Internet access in facilities open to the public
- Provision of telecommunications services over existing telecom connections:
· VOIP (Voice Over Internet Protocol) provision
- Telecommunications resellers (i.e. purchasing and reselling network capacity without providing
additional services)

This class excludes:

- provision of Internet access by operators of telecommunications infrastructure, see 6110, 6120, 6130

Telecom sector modelling from a functional perspective 110

 7BAPPENDICES

8.4 APPENDIX D: Models assessed

OSI
The basic structuring technique in the Reference Model of Open Systems Interconnection is layering.
According to this technique, each open system is viewed as logically composed of an ordered set of
subsystems, represented for convenience in a vertical sequence.

Relations:

Applications: The framework was designed for coordinating the development of existing and future
Recommendations for the interconnection of heterogeneous computer systems. Subsystems of the
same rank (N) collectively for the (N)-layer of the Reference Model of Open Systems Interconnection.
An (N)-subsystem consists of one or several (N)-entities. Entities exist in each layer. Entities in the
same layer are termed peer-entities. Note that the highest layer does not have an (N + 1)-layer above
it and the lowest layer does not have an (N – 1)-layer below it.

Security functions
OSI security functions are concerned only with those visible aspects of a communications path, which
permit end systems to achieve the secure transfer of information between them.

Basic Functions:
1. (N)-relay
An (N)-function by means of which an (N)-entity forwards data received from one correspondent
(N)-entity to another correspondent (N)-entity.
2. (N)-data-communication
An (N)-function which transfers (N)-protocol-data-units according to an (N)-protocol over one or
more (N – 1)-connections.
3. (N)-two-way-simultaneous-communication
(N)-data-communication in both directions at the same time.
4. (N)-two-way alternate communication
(N)-data communication in both directions, one direction at a time.
5. (N)-one-way communication
(N)-data communication in one pre-assigned direction.
6. (N)-directory
An (N)-function by which the global title of an (N)-entity is translated into the (N – 1)-address of an
(N – 1)-service-access-point to which the (N)-entity is attached.

Telecom sector modelling from a functional perspective 111

 7BAPPENDICES

7. (N)address mapping
An (N)-function which provides the mapping between the (N)-addresses and the (N – 1)-addresses
associated with an (N)-entity.
8. routing
A function within a layer which translates the title of an entity or the service-access-point-address to
which the entity is attached into a path by which the entity can be reached. A routing function
translates the (N)-address of an (N 1)-entity into a path or route by which the (N
1)-entity may be reached.
9. multiplexing
A function within the (N)-layer by which one (N – 1)-connection is used to support more than one
(N)-connection.
10. De-multiplexing
The function performed by an (N)-entity, which identifies (N)-protocol-data-units for more than one
(N)-connection within (N – 1)-service-data-units received on a single (N – 1)-connection. It is the
reverse function of the multiplexing function performed by the (N)-entity sending the (N – 1)-service-
data-units.
11. splitting
A function within the (N)-layer by which more than one (N – 1)-connection is used to support one
(N)-connection.
12. recombining
The function performed by an (N)-entity which identifies (N)-protocol-data-units for a single (N)-
connection in (N – 1)-service-data-units received on more than one (N – 1)-connection. It is the
reverse function of the splitting function performed by the (N)-entity sending the (N – 1)-service-
data-units.
13. flow control
A function, which controls the flow of data within a layer or between adjacent layers.
14. segmenting
A function performed by an (N)-entity to map one (N)-service-data-unit into multiple (N)-protocol-
data-units.
15. reassembling
A function performed by an (N)-entity to map multiple (N)-protocol-data-units into one (N)-service-
data-unit.
It is the reverse function of segmenting.
16. blocking
A function performed by an (N)-entity to map multiple (N)-service-data-units into one (N)-protocol-
data-unit.
17. de-blocking

Telecom sector modelling from a functional perspective 112

 7BAPPENDICES

A function performed by an (N)-entity to identify multiple (N)-service-data-units which are contained

in one (N)-protocol-data-unit. It is the reverse function of blocking.
18. concatenation
A function performed by an (N)-entity to map multiple (N)-protocol-data-units into one
(N – 1)-service-data-unit.
19. separation
A function performed by an (N)-entity to identify multiple (N)-protocol-data-units, which are
contained in one (N – 1)-service-data-unit. It is the reverse function of concatenation.
20. sequencing
A function performed by the (N)-layer to preserve the order of (N)-service-data-units that were
submitted to the (N)-layer.
21. acknowledgement
A function of the (N)-layer which allows a receiving (N)-entity to inform a sending (N)-entity of the
receipt of an (N)-protocol-data-unit.
22. reset
A function which sets the correspondent (N)-entities to a predefined state with a possible loss or
duplication of data.

The functions associated with multiplexing are:

a) identification of the (N)-connection for each (N)-protocol-data-unit transferred over the (N – 1)-
connection, in order to ensure that (N)-user-data from the various multiplexed (N)-connections are
not mixed. This identification is distinct from that of the (N)-connection-endpoint-identifiers and is
called an (N)-protocol-connection-identifier;
b) flow control on each (N)-connection in order to share the capacity of the (N – 1)-connection
c) scheduling the next (N)-connection to be serviced over the (N – 1)-connection when more than one
(N)-connection is prepared to send data.
The functions associated with splitting are:
a) scheduling the utilisation of multiple (N – 1)-connections used in splitting a single (N)-connection
b) re-sequencing of (N)-protocol-data-units associated with an (N)-connection since they may arrive
out of sequence even when each (N – 1)-connection guarantees sequence of delivery

Layers
Physical layer: Meanings to circuits or pins like Data, Control, Timing, and Ground (alternative
representations are needed with media such as fibre optics and air).
Data link layer: The primary function of protocols in the Data link layer is to divide data they receive
from the Network layer into distinct frames that can then be transmitted by the Physical layer relay
functions and hop-by-hop service enhancement protocols used to support the network service between
end open systems.

Telecom sector modelling from a functional perspective 113

 7BAPPENDICES

Network layer: One of the functions of the Network layer is, in fact, to provide capabilities needed to
communicate on an internetwork. Fragmentation of large packets of data into fragments which are
small enough to be transmitted by the underlying Data link layer.
Transport layer: Its protocols provide 5 main functions:
• Set up, maintain, and tear down a connection between two session entities
• Provide the reliable or unreliable delivery of data across this connection
• Segment data into smaller, more manageable sizes (segmentation)
• Multiplex connections, allowing multiple application processes to send and receive data
simultaneously on the same networking device
• Implement flow control and congestion control to ensure one component does not overflow
another with too much data.
Session layer: provides the means necessary for cooperating presentation entities to organize, to
synchronize their dialogue, and to manage their data exchange. To do this, the Session layer provides
services to establish a session connection between two presentation entities, to support orderly data
exchange interactions, and to release the connection in an orderly manner. The only function of the
Session layer for connectionless mode of operation is to provide a mapping of transport addresses to
session addresses.
Presentation layer: Its protocols must accomplish 3 main jobs:
• Data presentation: The main task of the Presentation layer is the representation of data
• Data compression is the reformatting of data
• Data encryption
Application layer: Its protocols contain the functionality to perform the following tasks (although other
tasks do exist):
• File services (the most common of the services provided by the Application layer)
• E-mail services
• Network printing services
• Database access services

Telecom sector modelling from a functional perspective 114

 7BAPPENDICES

DEMO
Demo is a methodology that indicates the way of modelling, way of working and way of managing
organisations. It uses and demonstrates that the underlying PSI-theory (Performance in Social
Interaction) is a viable basis for practically dealing with organisational changes of all kinds [41].

It states that ontology can be applied to enterprises and ICT systems based on that, in the past
computational and informational systems were constructed with focus on handling the content of
communication. Nowadays, the focus is on the intention of communication [41]. In DEMO context,
human actors are the only responsible for activities. Processes are defined as chains of activities.
Actors have mental pictures of concepts in their minds. Those conceptualisations are shared with
other actors by the act of communication. Coordination acts allows actors to establish coordination
between them. Those coordination acts occur with a particular pattern called transaction.
Actors use the implicit transaction pattern is used to communicate and comply with
commitments.

Business Applications
To Develop

Business Components
To Identify

ICT/Enterprise
specific Knowledge
Of
To Develop
Ontological
Models

Ontology
DEMO

Figure 40: Information systems design from enterprise ontology

The ontological model takes into account four principal aspects:

• Processes
• Action
• State
• Construction
• Identify transactions
• Classify each act/activity
• To focus on the Ontological production acts and on the coordination acts, for every
transaction identified.

Communication:
The theory of a communicative action of Habermas provides a transparent explanation of how
communication works. It mentions that linguistic items or any other observable (non-verbal) action
can perform any communicative act (e.g. smoke signals, nods and winks).

Telecom sector modelling from a functional perspective 115

 7BAPPENDICES

Organisation Theorem:
The organisation theorem states that the organisation of an enterprise is a heterogeneous system that
is constituted as the layered integration of three homogeneous systems: Business-Organisation, Intellect-
Organisation, and the Document-Organisation. The relationships between them are that the lower
layers support the upper one. The integration of this system is established through the human beings.
The following figure depicts how ICT systems can be utilised and classified in an organisation.
This classification is based on the three levels of the organisation theorem. Each ICT system’s
functionality is possible by running applications. The allocation of any application in a specific layer
means that it offers services to ICT applications above or to the corresponding layer in the
organisation. All ICT systems are basically an integration of hardware and software used by the
organisation at different levels.

Business organisation
Informa organisation
Data organisation
Buz software

Info software
Data software
Hardware

Figure 41: Information systems supporting different aspects in the organisation

From this model, we can obtain a classification to allocate telecom and IT systems within an
organisation in terms of which layer (business, information, documentation) are they serving. Then
we can derive the current/desired function of each one. The final model will be expressed just in term
of functions without detailing the specific implementations.

ICT applications supporting production acts:

D- applications: Their construction runs on the function of the hardware. By this class of software is
understood all generic (not enterprise specific software). E.g.: Text processors, as well as processors of
other kind of information, operating systems and database management systems. They can support
directly tasks of the D-organisation.
I-applications: They are on the top of the D-applications because they not run directly over the
hardware, but through the intermediate D-application layer. They are enterprise specific, although
they may have a generic character: accounting systems, human resource applications, and ERP
(enterprise Resource Planning) systems. They are information systems in the true sense, i.e., they
provide only information for monitoring an enterprise.

Telecom sector modelling from a functional perspective 116

 7BAPPENDICES

B-applications: They are on the top of the I-applications to make use of them. E.g., Decision, Support
Systems.

ICT applications supporting coordination must be rather general:

D-applications: Network systems or e-mail systems. The physical exchanges can be implemented by
means of hardware: digital (electronic or optical) devices. They can be implemented by digital
network services such as e-mail.
I-applications: Work Flow Systems.
B-applications: Process Management Systems

Telecom sector modelling from a functional perspective 117

 7BAPPENDICES

NGOSS
NGOSS Use cases show the agreement between stakeholders of a system. This agreement is expresses
as a sequence of actions that have direct correspondence to NGOSS processes (business view-eTOM,
but in each view we can identify processes). Then we can say that, Use cases can be helpful to identify
functionalities.
Stakeholders are entities (human and not human) related to the system performance.
Stakeholders are defined as a set of roles, which enables the functionality to be abstracted from the
entity performing the function.

Abstraction
Functionality

Enabling

S1 S2 S3

Entity Performs the function

Figure 42: Relation between entities, stakeholders and functionalities

In the Use Cases, the primary actor is differentiated from other stakeholders because it is who initiates
the interaction with the system in order to accomplish one or more goals [42].
Architectural requirements: DIOA: Distributed, Interface-Oriented Architecture that is also
present in some other information and communications architectures as for example: TINA-C,
CORBA, Java RMI, etc. The fundamental entity in DIOA is the interface. The interface is a neutral
entity because it does not depend on the specific technology.
A running system is made of many entities offering its functionality. This functionality is
represented by a set of interfaces. Clients make a link (bind) to those interfaces in order to exploit the
functionality of the system by invoking operations (actions relates to verbs) over those bindings.

The Technology Neutral Architecture - TNA

The NGOSS Architecture series of documents describe the major concepts and architectural details of
the NGOSS architecture in a technologically neutral manner. The documents do not prescribe a single
new technology – rather, they allow for a federation of different technologies, each of which offers
particular advantages at the business and system levels. In particular, the NGOSS Architecture enables
business concepts and principles to drive system design and architectures. This may be implemented

Telecom sector modelling from a functional perspective 118

 7BAPPENDICES

using currently available distributed systems information technologies. Critical to this process is the
sharing and reusing of common data and information.

Figure 43: NGOSS Architecture 32

Figure 44: Conceptual work leading to implementation of contracts in NGOSS 33

CRUD (Create, Retrieve, Update, Delete) for these objects are needed, but they will be addressed for
the Join team on subscription and subscriber management [37]

32
[33] "NGOSS Contracts," in GB942, Release 1.0, v1.2, T. Forum, Ed.: TMF, 2008, p. 78.
33
[33] Ibid.

Telecom sector modelling from a functional perspective 119

 7BAPPENDICES

Figure 45: Relationship between processes, function and data 34

NGOSS design goals

• Focusing of corporate data

• Physically and logically centralised data, providing more integrated views of customer and
operational data
• Loosely coupled distributed systems
• Move away from stand alone OSSs to more of a common infrastructure for management
process interaction
• Application components/re-use
• Functional re-use of business process components
• Code re-use of software components
• Increased use of object oriented design
• For components of OSS functionality as well as modelling managed devices
• Improved development time, costs, etc.
• Technology-neutral system framework with technology specific implementations
• Multi-vendor supply and integration
• General purpose (cost effective) systems access
• Operational staff low cost access to data/processes
• Customer system interoperability to service provider data/processes
• Separation of control of business process flow from business component operation
• Provides flexibility to rapidly produce new business solutions
• Allows more re-use of business components across multiple business scenarios

34
[37] "Business Process Framework (e-TOM)-Addendum T: eTOM to M.3400 Mapping application note," in GB921T Release 4.5, v.
4.6.1, T. Forum, Ed.: TMF, 2004, p. 98.

Telecom sector modelling from a functional perspective 120

 7BAPPENDICES

• Workflow automation
• Ability to automate present manual tasks
• Flexibility to change business process sequence
• Legacy/heritage systems
• Ability to integrate existing systems in OSS infrastructure
• Application of adaptation and wrapping techniques

Telecom sector modelling from a functional perspective 121

 7BAPPENDICES

e-TOM

The basic view of the e-TOM processes is depicted in the following figure:

Figure 46: eTOM Level 0 view. Conceptual structure 35

In the eTOM framework, four lifecycle stages are defined [34]:

• Fulfilment: operations for providing customers with their requested products and services in a
timely and correct manner. It translates the customer's business or personal need into a
solution, which can be delivered using the specific products in the enterprise's portfolio. This
process informs the customers of the status of their purchase order, ensures completion on
time, as well as ensuring a delighted customer.
• Assurance: includes all activities for the execution of proactive and reactive maintenance
activities to ensure that services provided to customers are continuously available and
performing to SLA or QoS performance levels. It performs continuous resource status and
performance monitoring to detect proactively possible failures. It collects performance data
and analyses them to identify potential problems and resolve them without impact to the
customer. This process manages the SLA’s and reports service performance to the customer.
It receives trouble reports from the customer, informs the customer of the trouble status, and
ensures restoration and repair, as well as ensuring a delighted customer.
• Billing: involves everything necessary for the collection of appropriate usage records,
production of timely and accurate bills, for providing pre-bill use information and billing to

35
[31] "Enhanced Telecom Operations Map (eTOM) –The business process framework," in ITU-T M.3050.1, ITU-T,
Ed.: ITU, 2004, p. 54.

Telecom sector modelling from a functional perspective 122

 7BAPPENDICES

customers, for processing their payments, and performing payment collections. In addition, it
handles customer inquiries about bills, provides billing inquiry status, and is responsible for
resolving billing problems to the customer's satisfaction in a timely manner. This process
grouping also supports pre-payment for services.
• Operations Support & Readiness: responsible for providing management, logistics and
administrative support to the above FAB process groupings, and for ensuring operational
readiness in the fulfilment, assurance and billing areas. This group of functions maybe none-
real-time and none-customer-facing in most cases.

Horizontal Level 1 process groupings, which represent a view of functionally related processes
within the business, such as those involved in managing contact with the customer or in managing the
supply chain. This structuring by horizontal functional process groupings is useful to those who are
responsible for creating the capability that enables supports or automates the processes. The
horizontal functional process groupings can therefore often represent the CIO's view of the eTOM
framework. The IT teams will look at groups of IT functions which tend to be implemented together,
e.g., the front-of-house applications in the Customer Relationship Management process grouping,
back-of-house applications in the Service Management & Operations process grouping which focus
on managing information about the services that are packaged for sale to customers or the network
management applications in the Resource Management & Operations process grouping which focus
on the technology which delivers the services [31].
The eTOM functional process groupings are the highest level decomposition of the enterprise.
These functional process groupings are not hierarchical with respect to each other and are not built
one above the other (i.e., one is not a decomposition of the one above), e.g., "Service Management &
Operations" is NOT a decomposition of "Customer Relationship Management".
When viewed in terms of the Horizontal Functional process groupings, the eTOM Business
Process Framework follows a strict hierarchy where every element is only associated with or parented
to a single element at the next higher hierarchical level. In taxonomy, any element must be unique, i.e.,
it must be listed only once. The Level 1 horizontal functional process groupings into which the
eTOM framework is decomposed (see Figure 26: eTOM Process Map (Level 1 view)).
Additionally, the eTOM framework is intended to help Service Providers manage their end-
to-end business processes. With this in mind, the eTOM shows how process elements have a strong
association with one (or several) end-to-end vertical business processes (e.g., Fulfilment, Assurance,
Billing, Product Lifecycle Management etc., which are introduced later in this clause). These Vertical
End-To-End process groupings are essentially overlays onto the hierarchical top-level horizontal
groupings, because in a hierarchical taxonomy an element cannot be associated with or parented to
more than one element at the next higher level.

Telecom sector modelling from a functional perspective 123

 7BAPPENDICES

By having the eTOM framework structured into multiple Levels, it enables users of the
framework to align their enterprise framework or their process implementations with the eTOM
framework at different levels, e.g., Align at Levels 1 and 2 or align at Levels 1, 2 and 3.
To summarize how levels are used in the eTOM framework:
• The whole-of-Enterprise view (i.e., all of the eTOM framework) is Level 0.
• Each Vertical (End-to-End) Process Grouping is Level 1.
• Each Horizontal (Functional) Process Grouping is also Level 1.

All the Process Elements, e.g., Order Handling (which appear in the End-to-End Process and the
Functional Process Groupings) are Level 2.
Level 2 Process Elements may be decomposed into Level 3 Process Elements.
Level 3 Process Elements may be decomposed into Level 4 Process Elements [31].
For the eTOM framework, all subsequent levels of process decomposition are Level 4, since
decomposition level does not necessarily mean the same level of detail from one process decomposition
to another. The number of levels of decomposition required has more to do with the complexity of the
process and the level at which process flow makes sense [43].
The eTOM framework clearly defines each process element. Each process element in the
framework is a category that allows actual activities in the enterprise to be unambiguously assigned to a
category. This modularised approach makes it easier for processes to be reused, updated or replaced
independently. The solutions based on this framework can then be built by using Commercial-off-
the-Shelf (COTS) product, since solution vendor will increasingly structure and describe their
offerings consistently with the eTOM framework.
Process elements can be included in more than one end-end process grouping, where it is
necessary to deliver consistency across several ended processes. Processes that appear in more than one
end-to-end process grouping may provide the same functionality in several groupings or may provide
somewhat different functionality, to support each specific process grouping. This is consistent with
Bunge-Dietz systemic point of view, which establishes that the function of a system is determined by
the user.
For example, Customer Interface Management (CIM) processes are used in Fulfilment,
Assurance and Billing (FAB), with the content of the interaction being different, but overall the
interface must have a consistent look and feel [43].
The process hierarchy is organised in a layered view. Each layer contains different types of
processes; however all Business functions in e-TOM are not defined with the same level of granularity.
Above level three the criteria for grouping processes is to allocate them into business areas[33].
Comparing with DEMO this is consistent because then ontological processes can be identified and
assigned to high levels roles (actors).
The business functions and differentiation must be captured at high levels layers of e-TOM for e-
TOM to have value; it means that the standard processes are defined in layers 1-2-3.

Telecom sector modelling from a functional perspective 124

 7BAPPENDICES

Tasks are grouped in contracts but the independent of them. E-TOM can be used to
determine the tasks that should be included in a contract supporting a specific Business process.

Figure 36: eTOM layer 0 view and relation with external environment 36

36
[31] Ibid.

Telecom sector modelling from a functional perspective 125

 7BAPPENDICES

TMN

TMN management functions

A TMN management function is a cooperative interaction between application processes in managing
and managed systems for the management of telecommunications resources, and is the smallest
functional part of a TMN management service as perceived by the TMN users [32].
Within the scope of TMN management context, TMN management services are defined by
the descriptions of roles, related resources and TMN functions. The TMN management functions
that belong together according to context are grouped into TMN management function sets (and the
sets into groups) for the purpose of management information modelling. TMN management function
sets may be reusable for TMN management services applied to different telecommunications managed
areas.
TMN management function sets are described from the TMN users' perspective and they are
independent from the individual protocols as well as management information modelling so that the
applicability to the diversified protocols in TMN interfaces will be maintained.
The management services are comprised of management functions.

Management Functional Area

Function set group

Function set

Function

Figure 48: Functions clustering in TMN

TMN building blocks:

• Operations Systems (OS)
• Mediation Devices (MD)
• Network Elements (NE)
• Work Stations (WS)
• Q Adaptors

Example: Function blocks in NEs and Q Adaptors act as agents when interacting with function blocks
in OSs and Mediation Devices.
Each TMN Management Function Set contains a list of the TMN Management Functions
that are supported by a function block.

Telecom sector modelling from a functional perspective 126

 7BAPPENDICES

TMN Building Block

Function Set

Function Block

Manager
Agent
Figure 49: TMN functions allocation and relationships

Each function block can be assigned to a logical layer (where it is possible). For example, a
function block that deals with requests for a service sent by a service customer to a service provider
would be assigned to the Service Management Layer (the block would be called an S-OSF, an
Operations System Function block of the Service Management Layer). Such an assignment would
imply that the TMN Management Functions, in the context of that TMN Management Function Set,
could be used within the Service Management Layer, or between that layer and any other layer (as
specified in the General Functional Model).
The TMN Management Services are the support for the management of a certain
Telecommunication Managed Area [44].
The list of Management Services, which have been identified, is presented below. The
Functions and/or Management Function Sets used to accomplish each of these Management Services
belong to some or to all Management Functional Areas presented in Recommendation M.3400.

List of Management Services

1) Customer Administration;
2) Network Provisioning Management;
3) Work Force Management;
4) Tariff, Charging and Accounting Administration;
5) Quality of Service and Network Performance Administration;
6) Traffic Measurement and Analysis Administration;
7) Traffic Management;
8) Routing and Digit Analysis Administration;
9) Maintenance Management;
10) Security Administration;
11) Logistics Management.
The above list is only meant as a guide and is not intended to be exhaustive. Further revisions of this
Recommendation may have additions [44].

Telecom sector modelling from a functional perspective 127

 7BAPPENDICES

Management Functional Areas (MFAs) [32]:

1. Performance Management.
Performance Management includes the following function set groups:
• Performance Quality Assurance.

Performance Quality Assurance includes the following functions sets:

• QOS performance goal setting function set.
• Network performance goal setting function set.
• Subscriber service quality criteria function set.
• QOS performance assessment function set.
• Network performance assessment function set.
• NE(s) performance assessment function set.
• Data integrity check function set.
• Performance Monitoring.
• Performance Control.
• Performance Analysis.

• Performance Monitoring.
• Performance Control.
• Performance Analysis.

2. Fault Management.
Fault Management includes the following function set groups:
• RAS Quality Assurance.
RAS Quality Assurance includes the following function sets:
• Network RAS goal setting function set.
• Service availability goal setting function set.
• RAS assessment function set.
TMN Management Functions
1) Report network outage – Agent reports network outage to manager.
2) Report service outage – Agent reports service outage to manager.
3) Request network outage summary report – Manager requests agent to
send network outage summary reports. Agent responds with the
requested information.
4) Request service outage summary report – Manager requests agent to
send service outage summary reports. Agent responds with the
requested information.
• Service outage reporting function set.

Telecom sector modelling from a functional perspective 128

 7BAPPENDICES

• Network outage reporting function set.

• NE(s) outage reporting function set.
• Alarm Surveillance.
• Fault Localisation.
• Fault Correction.
• Testing.
• Trouble Administration.
• Alarm Surveillance.
• Fault Localisation.
• Fault Correction.
• Testing.
• Trouble Administration.

3. Configuration Management
Configuration Management supports the following function set groups:
• Network Planning and Engineering.
• Installation.
• Service Planning and Negotiation.
• Status and Control.
• Provisioning.
Provisioning includes the following function sets:
• Provisioning policy function set.
• Material management policy function set.
• Access route determination function set.
• Directory address determination function set.
• Leased circuit route determination function set.
• Request for service function set.
1) Request creation of a telecommunications service – Manager requests
the creation of a telecommunications service by an agent.
2) Request deletion of a telecommunications service – Manager requests
the deletion of a telecommunications service by an agent.
3) Request modification of a telecommunications service – Manager
requests the modification of a telecommunications service by an agent.
4) Cancel a telecommunications service request – Manager requests the
cancellation of a previous telecommunications service request by an
agent.
• Service status administration function set.
• Network resource selection and assignment function set.

Telecom sector modelling from a functional perspective 129

 7BAPPENDICES

• Interexchange circuit design function set.

• Access circuit design function set.
• Leased circuit design function set.
• Facility design function set.
• Manage pending network changes function set.
• Network connection management function set.
• Circuit inventory notification function set.
• Circuit inventory query function set.
• NE(s) configuration function set.
1) Request configuration – Manager requests that the agent report the
current configuration of each entity.
2) Configuration report – For each entity, agent reports status, capacity
of the entity, optional parameters, type of entity (in sufficient detail
for manager identification) and the version and revision of the version.
3) Grow – Manager notifies agent of the presence of a newly installed
entity.
4) Prune – Manager notifies agent of the disconnection of an entity.
5) Restore – Manager notifies agent to begin monitoring the newly
installed entity.
6) Assign – Manager notifies agent that a previously unequipped entity
is now equipped.
7) Delete – Manager notifies agent that a previously equipped entity is
no longer equipped.
8) Set service state – Manager directs agent to place the specified entity
in one of the following states: in-service (available for use), out-of-
service (unavailable for use), standby (not faulty but not performing
normal function), reserved.
9) Request assignments – Manager requests that agent report the
identity of each assigned entity. The request may be for a specified
entity or for all equipped entities.
10) Assignment reports – Agent reports the identity of each assigned
channel for each equipped entity or for a specified entity.
11) Set parameters – Manager directs agent to set parameters
associated with a specified entity.
12) Set service thresholds – Manager directs agent to set performance
thresholds for the specified channel.
13) Add/drop – Manager directs agent to insert or remove a channel
from the complement of through-channels.

Telecom sector modelling from a functional perspective 130

 7BAPPENDICES

14) Cross-connect – Manager directs agent to interconnect two

specified channels operating at the same rate.
15) Disconnect – Manager directs agent to remove the interconnection
between two specified channels.
16) Start transmission test – Manager directs agent to begin a
transmission test on a given circuit.
17) Balance – Manager directs agent to perform a balance
test/adjustment.
18) Start transponder test – Manager directs agent to look for a
transponder signal on the given circuit.
19) Set report periods – The manager directs agent to set or change
report periods.
20) Request report periods – The manager requests agent to send the
current periods to the manager.
21) Restart request – Manager requests agent to restart an equipment,
service or the system. The restart may be soft or hard.
22) Restart report – Agent reports to manager that it has undertaken a
soft or hard restart as part of its recover procedures. Such procedures
may or may not have been initiated by the manager.

• NE(s) administration function set.

• NE(s) database management function set.
• Assignable inventory management function set.
• NE(s) resource selection and assignment function set.
• NE(s) path design function set.
• Loading program for service feature(s) function set.
• NE(s) inventory notification function set.
• NE(s) inventory query function set.
• Manage pending changes in NE(s) function set.
• Storage of parameters and cross-connects function set.
• Storage and execution of service features.
• Self-inventory function set.
4. Accounting Management.
• Usage Measurement.
• Tariffing/Pricing.
• Collections and Finance.
• Enterprise Control.
Enterprise Control includes the following function sets:

Telecom sector modelling from a functional perspective 131

 7BAPPENDICES

• Budgeting function set.

• Auditing function set.
• Cash management function set.
• Raising equity function set.
• Cost reduction function set.
• Profitability analysis function set.
• Financial reporting function set.
• Insurance analysis function set.
• Investments function set.
• Assets management function set.
• Tracking of liabilities function set.
5. Security Management.
Security Management includes the following function set groups:
• Prevention.
• Detection.
• Containment and recovery.
• Security administration.

Telecom sector modelling from a functional perspective 132

 7BAPPENDICES

8.5 APPENDIX E: Acronyms

ATM: Asynchronous Transfer Mode

CCTA: (UK’s) Central Computer and Telecommunications Agency
CPE: Customer Premise Equipment
CTOM: Commercial, Technical, Operational and Managerial
DEMO: Design & Methodology for Organisations
DoD: Department of Defence
DPE: Distributed Processing Environment
DSL: Digital Subscriber Line
DVB: Digital Video Broadcasting
EM: Electro-Magnetic
eTOM: Enhanced Telecommunications Operations Map
FCAPS: Fault, Configuration, Accounting, Performance & Security
GSM: Global System for Mobile communications
I&C: Information & Communication
ICT: Information & Communication Technology
IMS: IP Multimedia Subsystem
ISDN: Integrated Services Digital Network
ISIC: International Standard of Industrial Classification of All Economic Activities
IT: Information Technology
ITIL: Information Technology Infrastructure Library
ITU-T: International Telecommunications Union – Telecommunications
KPN: Koninklijke PTT 37 Nederland
LLA: Logical Layered Architecture
MPLS: Multi Protocol Label Switching
NAICS: North American Industry Classification System
NE: Network Elements
NGA: Next Generation Access networks
NGN: Next Generation Network
NGOSS: New Generation Operations Software and Systems
OECD: Organisation for Economic Co-operation and Development
OGC: (UK’s) Office of Government Commerce
OSI: Open Systems Interconnection Model

37
Posterijen, Telegrafie en Telefonie

Telecom sector modelling from a functional perspective 133

 7BAPPENDICES

OSS: Operations Support Software/System

PSTN: Public Switching Telephony Network
QoS: Quality of Service
SDF: Service Delivery Framework
SDH: Synchronous Digital Hierarchy
SID: Shared Information Data model
SLA: Service Level Agreement
SNMP: Simple Network Management Protocol
STOF: Service, Technology, Organisation, and Finance
TAM: Telecom Applications Map
TCP/IP: Transmission Control Protocol/Internet Protocol
TI: Telecommunications Infrastructure
TINA: Telecommunications Information Networking Architecture
TMF: TeleManagement Forum
TMN: Telecommunications Management Network
TMN: Telecommunications Management Network
TNA: Technology Neutral Architecture
TOM: Telecommunications Operations Map
UMTS: Universal Mobile Telecommunications System
UN: United Nations
VAS: Value Added Services
WDM: Wave Division Multiplexing

Telecom sector modelling from a functional perspective 134