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This document is for informational purposes only, and Tekelec reserves the right to change any aspect of the products, features

or functionality described in this document without notice. Please contact Tekelec for additional information and updates.

Tekelec Introduction

This document is for informational purposes only, and Tekelec reserves the right to change any aspect of the products, features

or functionality described in this document without notice. Please contact Tekelec for additional information and updates.

Pioneers of the New Diameter Network

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Tekelec Diameter market leadership

Major Policy + SDM Wins55 Policy customers/43 Tier 1s

46 SDM customers/27 HSS/SPR

300 Million SDM Subs

Expanding Global, Multi-PropertyPolicy Deployments

19 DSR Customer Wins and Counting US/Canada/Europe/Asia/CALA

Tekelecs Policy Server is at or near the top of the competitive landscape

Tekelec is the front runner in the Diameter signaling control market.

The leader in DSC today is Tekelec with roughly 80% market share

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Another signaling storm is coming

A signaling storm is coming - signaling traffic

growing 30-50% faster than data traffic

There is good signaling (Diameter) and bad

signaling (RAN)

LTE networks with less than 5 Million Subs

experiencing Diameter signaling outages

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Hungry Birds Signaling Storm Impact

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Angry Customers, Costly Lessons

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Telecom Slovenia Signaling Overload with 10K Subs

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Smartphone Signaling in 3G and LTE

3G Smartphone behavior: Differs between OS and devices

- PDP Context Activation: app triggered / on GPRS attach

- PDP Context Deactivation: screen lock / power off / app triggered

- PDP Context Re-activation: often immediate

Signaling Storm impact: RNC often the bottleneck (=> core network

protection)

LTE: Increase in number of sessions per device

Default and Dedicated Bearers activation requests

Signaling Storm impact: MME, HSS, IMS, PCC (all thereof?)

Network capacity challenges and outages

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Shift to usage-based services driving signaling storm andsophisticated Diameter and Policy requirements

Casual Usage/LoyaltyPersonalized Service Tiers

Over-the-Top Usage Plans

Shared Data Plans

Machine-to-Machine

Mobile Video/VoIP

Subscriber usage controls

Wi-Fi @

Cafe

3G in the Car

LTE, 3G, Wi-Fi @

Airport

Wi-Fi and

Ethernet

@ Work

Multi-access/Roaming Usage

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A typical scenario: 10X Diameter signaling growth

0

5,000

10,000

15,000

20,000

25,000

Year 1 Year 2 Year 3

Policy-RelatedDia

meter

Transa

ctionsPerS

econd

Video Chat

Premium Gaming PackPremium Video w/ Online Charging

Sponsored Data Access

Facebook Add-on Pack

Congestion Management

Fair UsePay As You Go/Casual Use

Session Authorization

Source: Heavy Reading, 2011.

Operator Scenario: Ten Fold TPS Growth over 3 years

10 Million subscribers

Year 1: 30% are mobile data users; 2 policy use cases, 9% active in busy hour

Year 2: 40% are mobile data users, 5 policy use cases, 16% active in busy hour

Year 3: 60% mobile data users, 8 policy use cases, 30% active in busy hour

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A New Diameter Network is Required

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Secure

Interconnection for

M2M services

GrowRevenues

EliminateSignaling

Storms

The value of Diameter Routing

Load

Balancing

Proxies for: Over-the-Top/Cloud/M2M Services, LTE/3G Roaming,

Policy, Charging, Home Subscriber Server

Congestion andTraffic management

Scale Diameter

Transactions

Interworking andInteroperability

Network Visibility

Steer Roamers

to PreferredPartners

ReduceRevenue

Leakage

Secure

interconnectionfor Cloud

services

Secure

Interconnection

for OTT Apps

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Machine to

Machine

Services

GrowRevenue

OptimizeCost

Cloud

Services

Over-the-

Top Apps

Mobile

Video Social

Networks

Fair Use &Congestion

Management

ServiceTiers

Bandwidth

on Demand

ParentalControls

Bill Shock

The value of Policy Management

Policy control, Policy analytics, converged policy

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Machine to

machine

services

GrowRevenue

OptimizeCost

Personal

Cloud

Services

Over-the-

Top apps

Personal

mobile

Ads

Consolidate

databases

Personal

Service

Tiers

Identityand

location

Services

The value of Subscriber Data Management

User Data Repository, Subscriber Profile Repository, Diameter Data

Repository, Home Subscriber Server

Scale Subscriber

Databases

Manage

structured/

unstructured

data

Manage

dynamic and

static data

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Architecting the New Diameter Network

The decisions you make now will determine your

mobile data success