Obstacles During the Merger of Two Cellular Operators

By" Arnoldus Leo Karra

 

Data constraints in the context of operator mergers cover a wide range of aspects, from technical to operational and business:

1. Differences between Technology and Infrastructure

• Radio Access Technology: XL Axiata primarily uses GSM/UMTS/LTE FDD (Frequency Division Duplex) technology with multiple frequency bands (e.g., 900 MHz, 1800 MHz, 2100 MHz, 2.1 GHz, and 2.3 GHz). Smartfren, on the other hand, was known for its CDMA base in the past and later switched to LTE TDD (Time Division Duplex) at 2300 MHz, as well as LTE FDD at 850 MHz. These technological differences require significant efforts to ensure interoperability.
• Frequency Bands (Spectrum): Each operator has a different frequency spectrum allocation. This spectrum integration must be efficiently reorganized to maximize capacity and coverage. Some Smartfren frequencies may need to be returned to the government or transferred to XL, or vice versa, as regulated.
• Equipment Vendors: XL and Smartfren likely use different network equipment vendors (e.g., Huawei, Ericsson, Nokia, ZTE). Integrating equipment from different vendors requires compatible interfaces and software , which can be complex.
• Network Topology: The network architecture and topology (e.g., BTS locations, backhaul paths , core network configuration ) of the two operators will inevitably differ. Unifying them will require significant redesign.

2. Network Duplication and Redundancy

• Site Redundancy: In many locations, two operators may have base stations adjacent to or even in the same location. This creates inefficient duplication of assets. Deciding which base stations to retain and which to decommission is a major decision.
• Overlap Coverage: There are many areas where the coverage of the two carriers overlaps. While this can be beneficial for redundancy, it can also cause interference if not optimized.
• Core Network Duplication: Both operators have their own core networks (MME, S-GW, P-GW, HSS, etc.). Integrating or consolidating these core networks is very complex, involving the migration of customer data and services.

3. Customer Data Interoperability and Migration

• Customer Data Migration: Customer data (profiles, service plans, usage history, phone numbers) must be consolidated into a single, unified system. This is highly error-prone and can lead to service disruptions.
• Billing and CRM Systems: The billing and customer relationship management (CRM) systems of both carriers must be integrated or one adopted as standard. This is a major undertaking that impacts day-to-day operations and the customer experience.
• National Roaming: Before full integration, it may be necessary to implement national roaming between the two networks to ensure customers can continue using services wherever they are. This adds management complexity.

4. Quality of Service (QoS) and Customer Experience (QoE)

• Service Quality Inconsistencies: Customers may experience changes in service quality during the integration process, such as varying speeds, call drops , or high latency, which can lead to churn .
• Customer Expectation Management: Communicating the integration process and its impact to customers is a major challenge to manage expectations and minimize disappointment.

5. Regulation and Spectrum

• Frequency License: The telecommunications regulator (Kominfo) must approve the frequency spectrum merger and may impose additional requirements, such as the return of part of the spectrum or certain restrictions.
• Monopoly/Competitive Impact: The merger of two large players could impact the competitive landscape in the industry, and regulators will monitor this closely.

6. Organizational and Cultural Integration

• Human Resources and Company Culture: Two companies with different cultures, processes, and teams must merge. This is also a challenge that cannot be underestimated.

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How to Optimize Data and Network Integration

Optimization in the context of a merger should be done in a phased and planned manner, with a focus on minimizing service disruption.

1. Network Planning & Redesign

• In-depth Network Audit: Conduct a comprehensive audit of both networks (XL and Smartfren) to understand their respective assets, capacity, coverage , and performance.
• Integrated Network Design: Design an efficient target network topology, identifying BTS locations to be retained (if duplicated), upgraded , or decommissioned .
• Spectrum Consolidation: Plan the reallocation and combined use of frequency spectrum to maximize throughput and capacity through broader Carrier Aggregation (CA) .
• Common Technology Selection: Determine which radio access technologies (e.g., LTE, 5G) and equipment vendors will be the future standard, or how interoperability between vendors will be governed.

2. Radio Access Network (RAN) Optimization

• Site Rationalization: Identification and decommission of duplicate or less efficient BTS, ensuring coverage and capacity are maintained in the area with BTS being maintained or upgraded .
• Network Modernization: Upgrade maintained BTS with the latest technology (e.g., 5G-ready, higher MIMO) and update eNodeB software .
• RF Optimization:
• Tune Antenna Tilt & Azimuth: Re-optimize the antenna direction and tilt on all combined BTS to ensure smooth coverage and minimize inter-cell interference .
• Power Control Optimization: Adjust transmit power for spectrum efficiency and interference mitigation.
• Interference Management: Implement advanced solutions to identify and mitigate interference, both internal and external to the network.
• Feature Optimization: Enable and optimize features such as Carrier Aggregation (CA) , MIMO , VoLTE (Voice over LTE) , and Small Cells/DAS across the aggregated network. This is crucial for improving throughput .

3. Transport and Core Network Optimization

• Backhaul Consolidation: Integrate and optimize backhaul paths from both operators, increase the capacity of bottleneck links , and design better redundancy .
• Core Network Integration:
• Migrate customer data gradually to a single, unified core network system . This must be done with great care to avoid downtime .
• Consolidation of MME, S-GW, P-GW , and other databases for operational efficiency and performance improvement.
• Ensure core network capacity is sufficient to accommodate the entire combined customer load.

4. Customer Data Management and Business Systems

• Planned Data Migration: Create a detailed customer data migration strategy, including backups , data validation, and a rollback plan in case of issues.
• Billing & CRM System Consolidation: Integrate or select a single billing and CRM system to be used by the new entity, ensuring historical customer data remains accessible.
• Brand & Product Strategy: Despite the network merger, XLSmart will likely retain multiple brands (XL, Axis, Smartfren) with distinct target markets. This requires a clear product strategy and data offering for each brand.

5. Continuous Testing and Validation

• Pilot Project: Conduct a pilot project in a small area before full-scale implementation to test integration and optimization strategies.
• Drive Test & Benchmarking: Conduct extensive drive tests and benchmarking before, during, and after the integration process to monitor KPIs (Key Performance Indicators) such as throughput , latency, call drop rate , and packet loss .
• Real-time KPI Monitoring and Analysis: Use NMS (Network Management System) and performance tools to monitor network health in real-time and promptly address anomalies.

6. Communication and Change Management

• Internal Communication: Involve all teams (technical, operational, marketing, customer service) in the integration process and ensure effective communication.
• External Communications: Provide clear and transparent information to customers about the integration process, its potential impacts, and long-term benefits.
• Customer Support: Have a customer support team ready to answer questions and address complaints during the transition.

The merger of XL and Smartfren is a major project that will take time, but with proper planning and optimization execution, the new entity XLSmart can realize significant synergies and provide better services to customers.

Is packet loss prone to occur in this case?

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Yes, packet loss is highly susceptible to occurring during the merger of two major operators like XL and Smartfren. This is one of the biggest challenges that the engineering and operations teams must anticipate and manage.

Why is it so susceptible to packet loss?

There are several main reasons why packet loss is very likely to occur during the integration phase:

1. Infrastructure Migration and Consolidation:
• Network Topology Changes: Moving traffic from one eNodeB to another , or from one core network to a different core network , inevitably involves reconfiguring routing , IP addresses , and interconnections . Any small error here can result in packets not reaching their destination.
• Equipment Upgrades and Maintenance: During hardware upgrades (e.g., adding cards , upgrading device software, or replacing devices), there may be brief periods of downtime or instability that can trigger packet loss .
• Different Vendor Integration: Equipment from different vendors (e.g., Huawei and Ericsson) may not operate or interface perfectly. This requires fine-tuning, which can lead to initial packet loss .
2. RF (Radio Frequency) Optimization and Readjustment:
• New Interference: After combining sites and spectrum, the interference pattern in the air will change drastically. Sites that previously did not interfere with each other may now cause interference due to suboptimal power or tilt . Interference is the number one cause of packet loss in the radio layer.
• Overlapping Coverage: A large area of overlap between two merged networks, if not managed properly, can lead to pilot pollution or ping-pong handover , which often results in packet loss .
• Spectrum Merging: The process of merging and reorganizing frequency bands (e.g., Smartfren at 850 MHz and 2300 MHz with XL in various bands ) requires careful RF re-planning . Mistakes in the allocation or use of the combined frequencies can lead to interference and packet loss .
3. Network Load and Traffic :
• Traffic Spikes on Specific Nodes: When traffic from one network is redirected to another, the newly loaded gateway nodes or eNodeBs can become overloaded if their capacity has not been upgraded or properly managed, causing buffer overflows and packet dropping .
• Complex Capacity Management: Estimating and managing the capacity needed during this transition period is complex. Incorrect estimates can lead to congestion , which can lead to packet loss .
4. Customer Data Migration:
• Data Migration Errors: The process of moving customer data from one database to another on the core network can experience errors . If the data is inconsistent, customer service can be disrupted and packet loss can occur (e.g., inability to authenticate or access data).
• Billing and CRM System Integration: Issues in the integration of these back-end systems can indirectly impact data service provisioning, which in turn can lead to packet loss at the user level.
5. User Devices (EU) and Compatibility:
• Some older devices may experience compatibility issues when adapting to a new, fully integrated network, especially if there are fundamental changes to the technology or frequencies used. This can lead to unstable connections and packet loss .

The Importance of Continuous Monitoring and Optimization

Because the potential for packet loss is so high, the engineering team will focus on real-time monitoring of KPIs (especially packet loss rate , throughput , and retransmission rate ) and perform aggressive optimization during and after the integration process. The use of drive tests , tracing tools , and NMS data analysis will be crucial to identifying and mitigating packet loss issues as quickly as possible.

In short, a merger between two carriers is a major network operation. While the goal is long-term efficiency and service improvements, the potential side effects of packet loss and temporary service quality degradation are very real risks and must be carefully managed.

 

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