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Articles & publications
26.04.2010
On phasing in single billing systems at Svyazinvest’s cellular operatorComNews, Anna Afanasieva
Svyazinvest holding intends to phase in Oracle ERP system and use Peterservice billing for its assets which are to be pooled in ZAO Mobitel. As ComNews learned, the tenders for installation of the ERP system was won by integrators – Nvision and IT Consulting, which are to complete a draft of the project by the first quarter of 2011. All in all, it will take about a year and a half to switch to single billing. In addition, during the next 18 months the holding plans to perform a complete upgrade of its GSM and CDMA equipment.
According to advisor to the director general of Svyazinvest Alexei Nichiporenko, the introduction of single billing systems and ERP is one of the first steps towards merging the holding’s cellular business. All 18 of Svyazinvest’s cellular operators are to be merged into a single legal entity under Mobitel, which will be the consolidation hub in a process that is slated for completion in 2012. Therefore, it will be necessary for us to unify the entire business and make it more manageable”, Mr. Nichiporenko pointed out in an interview with ComNews.
“Three integrators participated in the tenders for implementation of the ERP system: IBS Borlas, Bering Point and IT Consulting (the latter two teamed up). Introduction of the ERP system will begin with Nizhny Novgorod Cellular Communication (NCC, a subsidiary of VolgaTelecom): the pilot project will begin in NCC, and in the event of its successful completion within two quarters it will be phased in at other cellular companies as well. We expect the system to be fully up and running by the end of the first quarter of 2011, Alexei Nichiporenko pointed out. Aside from IT and NVision Group, other contenders in the project include consulting company Vernikov & Partners, which will be concerned with describing and unifying business processes.
Alongside the process at NCC, the introduction of a single billing system will get underway at the holding’s other cellular operators. At present, two systems are being used at Svyazinvest: CBOSS and Peterservice. A merged billing system will be created on the basis of a Peterservice solution, and its introduction is scheduled for completion by the third quarter of 2011. “Single billing will make it possible to unify everything which is connected with the formation of tariff plans and customer service”, Alexei Nichiporenko points out.
Alexei Nichiporenko made no secret of the cost of the project, but pointed out that the introduction of an ERP system would be much more cost-effective for the company than market cost: “All RTOs use Oracle and Svyazinvest has a large number of unused licenses since 2006, which makes the project much more affordable. We have agreed with Oracle that those licenses will be transferred from the balance sheet of Svyazinvest to the balance sheet of the holding company for cellular assets”.
Representatives of NVision Group and IT Consulting confirmed the participation, but declined to comment.
Alongside this process, Svyazinvest plans to upgrade its network equipment for its subsidiary cellular operators. “Tenders have been announced, all of Russia has been split up into three parts and a single supplier will be selected for each of them. In each region we plan to conduct two tenders – GSM and CDMA-450 (right now we have 14 CDMA-450 licenses), Mr. Nichiporenko pointed out. The results of the tenders will be announced in May, and the replacement process for equipment is expected to be wrapped up within a year and a half.
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