Bell Canada Drives New Revenues And Targets Cost

C U S TO M E R CA S E S T U DY
Bell Canada Drives New Revenues and Targets Cost
Reductions of CDN$1B–$1.5B by the End of 2006
Executive Summary
CUSTOMER NAME
Bell Canada
INDUSTRY
Service Provider
BUSINESS CHALLENGES
• Reduce costs by CDN$1B–1.5B
by the end of 2006 and improve
operational efficiency
• Deploy a scalable network that
offers reliability, security, and
abundant bandwidth
• Deliver the next-generation services
customers want
SOLUTIONS
• Transform existing networks into
a converged IP network and a new
IP-based business model
• Cisco IP/MPLS core network
infrastructure for integrated
data, voice, and video applications, and delivery of advanced,
next-generation services
• Change management from IBSG
and the whole Cisco team, including architectural planning for the
IP transition and rigorous testing
prior to deployment
BUSINESS RESULTS
• Converged network enables quick
delivery of advanced, next-generation services.
• Partnership enables Bell to create
and commercialize new services in
information, communications, and
technology (ICT).
Bell Canada and Cisco Systems® formed a partnership in early 2004 to accelerate the creation,
commercialization, and delivery of next-generation
IP services. At the end of its second year, the
initiative is well on its way to supporting Bell
Canada’s goals of cost reduction, internal business
transformation, and business agility to deliver
high-value services.
BUSINESS CHALLENGES
With 28 million customer connections, Bell Canada delivers integrated communications that include wire-line voice
and data services, high-speed and Internet wireless, IP
Broadband services, value-added solutions, and direct-tohome satellite and very-high-bit-rate digital subscriber line
(VDSL) television services. Bell serves residential, business,
and government customers across Canada.
Throughout its 125-year history, Bell Canada’s focus on
innovation and its ability to overcome challenges have
kept the company at the forefront of technology. That
pioneering spirit was never more evident than in late
2003 when Bell’s executive team recognized that they
needed to address dramatic cost reduction and operational improvement issues within the company. Acting
quickly, the executive team, under the leadership of
Michael Sabia, Bell Canada CEO, boldly committed
to taking CDN$1 billion–$1.5 billion of annual operating expense out of the business by the end of 2006.
Prepared by Cisco Systems, Inc.
Internet Business Solutions Group
Cisco Systems, Inc., IBSG
Copyright © 2006 Cisco Systems, Inc. All rights reserved.
C U S TO M E R CA S E S T U DY
With competitors beginning to offer more voice-over-IP services, the team also knew that they
needed a plan of action that would take them from their traditional infrastructure to an all-IP
network. A long-time customer of Cisco®, Bell Canada had already been working with Cisco on
a plan for network convergence to IP as an enabler of Bell’s overall transformation plan, called
Project Galileo.
“CISCO AND BELL HAVE THE SAME OBJECTIVE FOR CARRIER-GRADE IP INFRASTRUCTURE
AND SERVICES. GETTING TOGETHER WITH THIS COMMON AGENDA IGNITED THE ENTIRE
PROCESS, AND WE’VE MADE TERRIFIC PROGRESS OVER THE LAST COUPLE OF YEARS.”
Patrick Pichette, President of Operations, Bell Canada
SOLUTIONS
Two Industry Leaders Form Strategic Partnership
On January 19, 2004, Bell Canada and Cisco announced a three-year strategic partnership to
accelerate the creation, commercialization, and delivery of a comprehensive suite of IP services
that enable customers to reap the full benefits of an integrated data, voice, and video IP-based
network. The real success of the partnership has been achieved from a joint commitment to
disciplined execution of the transformation.
“THE CISCO RELATIONSHIP WORKS AT MANY LEVELS, AND THE EXECUTIVES AT CISCO
AND AT BELL CANADA HAVE A LOT OF COMMUNICATION, A LOT OF OPENNESS. WE ARE
SEEING THE CISCO LEADERS REALLY TAKE OWNERSHIP OF OUR ISSUES.”
Isabelle Courville, President, Enterprise Line of Business, Bell Canada
Converged Network, Advanced Services, Smooth Migration
Cisco IP/MPLS core network infrastructure serves as the foundation for Bell Canada’s primary
service delivery platform for IP-based applications. Cisco worked closely with Bell to develop
the network architecture and define the migration path for Bell Canada’s core, next-generation
network that allows traditional and new IP-based services to be supported on a single, converged
IP network.
In addition to world-class IP networking technology and expertise, the Cisco Internet Business
Solutions Group (IBSG) together with the Cisco infrastructure team and the Cisco Customer
Advocacy team drove IP next-generation network convergence and factory-based service operations at Bell. Cisco shared its expertise and provided guidance and support on change management, network architecture, and planning and execution of new software implementation.
When the migration is complete, Bell’s multiple layers of core and access networks will be consolidated, and substantially all of Bell’s traditional services will be converged to the IP platform.
Once that has happened, the networks that supported those services will be decommissioned.
Cisco worked with Bell to plan for a smooth transition with minimal customer disruption. Bell’s
new infrastructure, combined with its new IP-based business model, will provide the foundation
for delivery of next-generation services.
Cisco Systems, Inc., IBSG
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C U S TO M E R CA S E S T U DY
New Markets, New Services, New Business Model
Bell Canada is a leading example of what IBSG calls a Next-Generation Service Provider (NGSP).
One of the hallmarks of an NGSP is a customer and service orientation that bridges the
functional disciplines within the company to drive innovation and scalability. Bell’s leadership
is embodied in its “IP Garage,” the test environment that enables time-and-motion studies and
embraces new process models.
Under the partnership, Bell Canada and Cisco will not only expand Bell’s national footprint on
a Cisco IP/MPLS core network, but also align engineering, sales, and marketing resources to
help migrate existing and new customers to Bell’s IP network infrastructure. In doing so, Cisco
will help Bell drive revenues in the adjacent information, communications, and technology (ICT)
market, building upon Bell’s core business.
“IN THE LAST T WO YEARS, WE’VE SEEN QUITE AN INTERESTING CHANGE IN THE
MARKETPLACE WITH RESPECT TO IP RECEPTIVENESS. I MUST SAY THAT I AM QUITE
EXCITED ABOUT HOW FAST THIS TRANSITION IS GOING FOR US AND FOR OUR
CUSTOMERS.”
Isabelle Courville, President, Enterprise Line of Business, Bell Canada
BUSINESS RESULTS
Bell Canada is well on its way to achieving the reach-out vision with which Michael Sabia
challenged the company two years ago. Results include the following:
• Network convergence: Less than two years into the initiative, over 75 percent of Bell Canada
traffic is now carried over the IP/MPLS network. This is in line with its objective of having the
majority of migrating traffic on its core, IP-based network.
• Operational efficiency: Organizational and business process redesign has resulted in shortened
cycle times and higher throughput due to more effective teaming and greater flexibility. Bell
Canada is now fulfilling complex orders by the committed due date in more than 90 percent
of cases.
• Speed to market: The transformation has facilitated faster decision making and greater effectiveness of cross-functional teams, allowing Bell to develop new products more quickly and
get them to market faster.
• Market expansion: Bell has closed a significant number of new deals, including Manulife
Financial, BMO Financial Group, and Montreal’s Pierre E. Trudeau International Airport.
In the retail sector, Bell and Cisco have delivered store connectivity solutions that resulted in
more efficient customer business processes and reduced costs.
• Revenue growth: Revenues from value-added ICT services increased 40 percent from Q3 2004
to Q3 2005.
• Cost reduction: In its first two years, Bell’s overall transformation has already reduced
costs by CDN$353 million annually, on track with its target run-rate savings of CDN$500
million–$600 million for 2005 and CDN$1 billion–$1.5 billion by the end of 2006.
Cisco Systems, Inc., IBSG
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C U S TO M E R CA S E S T U DY
A dedicated cross-functional team from Cisco, including IBSG, has worked with Bell Canada to
help transform its organization, create new capabilities and revenue streams, and drive industryleading change. As the global leader among incumbent service providers, Bell Canada is blazing
a trail in its transformation to an IP-based business model.
“OUR NETWORKING REQUIREMENTS ARE BECOMING INCREASINGLY COMPLEX AND
MISSION CRITICAL. FROM OUR PERSPECTIVE, IT’S A VERY POSITIVE DEVELOPMENT TO SEE
COMMUNICATIONS LEADERS COMBINE FORCES AND ALIGN STRATEGIES TO PROVIDE
SIMPLIFIED COMMUNICATIONS SOLUTIONS.”
Dan Fransen, Vice President, Technology Services
Canadian Tire Corporation (Bell Canada customer)
NEXT STEPS
Having taken the decision in 2003 to move quickly to IP, far ahead of its peers in the global
industry, the Bell Canada team is focused on execution of the strategy and on the next waves of
innovation. IBSG and Bell Canada continue to collaborate on emerging market opportunities in
keeping with Bell’s ambitions and industry leadership.
“FIVE YEARS FROM NOW, PEOPLE WILL SAY, ‘THEY REALLY HAD IT RIGHT BACK THEN WHEN
THEY RESET THEIR ENGINE THE WAY THEY DID, AND NOW THEY’RE REAPING THE BENEFITS.’”
Patrick Pichette, President of Operations, Bell Canada
Cisco Systems, Inc., IBSG
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C U S TO M E R CA S E S T U DY
MORE INFORMATION
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For further information about IBSG, visit http://www.cisco.com/go/ibsg
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Cisco and any other company. This customer story is based on information provided by Bell Canada and describes how that particular organization benefits from the deployment of
Cisco products and/or IBSG expertise. Many factors may have contributed to the results and benefits described; Cisco does not guarantee comparable results elsewhere.
LD/LW10136 01/06
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