TLEN 5510

Future of Inter-Networking

Robert Duncan Transaction Network Servicesrduncan@tnsi.com+1 (303) 810-2634 (m)

“How to Make a lot more Money from your Network”

Topics

Interconnection of NetworksWhy?How?

Future: All-IP Network Interconnection (IPX) Roaming among Networks

Why?How?

Intro

20 years in Mobile networks 30 years in Telecom (see “Bellhead”) Author (“Wireless Intelligent Networks”) Standards contributor, Chair Experience in Network Planning,

Engineering, Operations AT&T, Qwest/U S WEST Wireless TDMA, CDMA, GSM, WiMax, Wi-Fi, LTE

INTER-NETWORK CONNECTIONS

Why?

How?

Recurring Pattern

n*(n-1)Connections: n

Hub

Telephone

WHY Interconnect networks? More subscriber connections, traffic, revenue

eXchangeLocal eXchangeLocaleXchangeLocal eXchangeLocal

eXchangeToll

Network Interconnection

Network Network Network

eXchange

Network

WHY use an eXchange? Fewer network connections, Lower cost

New Network Interconnection

> 1000 Mobile networks!

Network Network Network

eXchange

NetworkNew

WHY use an eXchange? Fewer network connections, Lower cost

Connecting Networks Creates Value

Value (Network A) + Value (Network B) = ??? Example:

Value (Network A) = 1,000,000 subscribers’ trafficValue (Network B) = 1,000,000 subscribers’ traffic

Metcalfe’s Law

1 2… S1,000,000

1        

2        

…        

         1,000,000        

1 2… S1,000,000

1        

2        

…        

         1,000,000        

1 2… S1,000,000 … S2,000,000

1                

2                

…                

         1,000,000                

1                

2                

…                

         2,000,000                

+ =

Why Inter-Networking?

Maximize Revenue (Metcalfe’s Law)

… at Minimum Cost

INTER-NETWORK FUTURE

From Circuit to Packet

Convergence Ahead

Cellular Calls Connect via _____?

MobileNetwork

Current Inter-Network Connections

TelephoneeXchange

IPNetwork

FixedNetwork

MobileNetwork

IPNetwork

FixedNetwork

Any Disadvantages?

MobileNetwork

Disadvantages of Public Telephone Connections

TelephoneeXchange

IPNetwork

FixedNetwork

MobileNetwork

IPNetwork

FixedNetwork

↑ Cost↑ Complexity↓ QoS↓ Features

MobileNetwork

Native Inter-Network Connections

TelephoneeXchange

IPNetwork

FixedNetwork

MobileNetwork

IPNetwork

FixedNetwork

IPeXchange

Today: Mobile Connects via Public Telephone (PSTN)

16

GRXBG BG

PSTN(LEC + LD)

STP

MSC MSCSign

alin

gVo

ice

SGSNSGSN SGSNSGSN

Op A Op B

Data

Circuit Voice Circuit VoiceCircuit Voice

Tomorrow: Mobile connects via IP

17

IPXMSC Server

MSC Server

MGWMGW

MSC Server

MSC Server

MGWMGW

BG BGSIP

Proxy

SIPProxy

Packet Voice Circuit VoiceCircuit Voice

PSTN(LEC + LD)

STP

Existing technologyNot All-IP

Data

Signaling

SGSNSGSN SGSNSGSN

Op A Op B

MSC MSC

VoiceENUM

Future: LTE connects via IP

18

Op A

IPX

Op B

CSCFCSCF

MGWMGW

CSCFCSCF

MGWMGW

BG BGSIP

Proxy

SIPProxy

PSTN(LEC + LD)

STP

LTE/All-IP

SGSNSGSN SGSNSGSN

MSC MSC

Data

Voice

Signaling

ENUM

Packet Voice Packet VoicePacket Voice

Choosing the Least Cost Route for Voice Connections

19

IPX Provides Voice & Data Connectivity

FNOs

ASPsSPs

MNOsISPs

GSM, GPRS/UMTS

Operators

CDMA Operators

A Common Connection Point for Voice & Data

TNS IPX

Circuit V

oice

Packet Voice

Packet Data

Benefits of Native (IP) Connections

↓ Cost <10% of Current ↓ Complexity Flat ↑ QoS Fewer vocoders ↑ Features Unobstructed operation

International LD: $0.0500/MOU

Current LEC interconnect: $0.0025/MOU

Current VoIP interconnect: $0.0005/MOU

100X less revenue/minute

Observing this Trend in Use

International LD (greatest margins) use of IP2006: 2% to 4% of all VoIP traffic

goes through a peering service2010: Over 50% International Voice via IP

2010: Mobile-Mobile use of IP eXchange (IPX)

INTER-NETWORK FUTURE

An IP eXchange (IPX)

© GSM Association 2009

All Operators Can Use IP eXchange (IPX)

FNOsASPsSPs

MNOs ISPs

IPX

Applicability– Mobile Network Operators (MNOs)– Fixed Network Operators (FNOs)– Internet Service Providers (ISPs)– Application Service Providers (ASPs)

Bridging the Mobile World TM

Aicent Inc. Proprietary and Confidential 26

Aicent IPX Viewpoint

Market NeedsMNOs needs to support a wide range of multimedia-based application with high quality.FNOs are developing Next-Generation NetworksISPs & ASPs are offering more content/application servicesAll entities want to interconnect each other in a controlled, efficient, profitable and cost-effective manner.

IP InterworkingIP is the common protocol of above networks and service. IP Packet eXchange (IPX) is a standardized solution for interconnecting various service providers over a global IP network with high QoS.

Confidential 27

IPX Interconnect Principles

Mobile

ISPFNO

MNO

IPX TRUSTED ENVIRONMENT

Private IPX

Domain

IPX 1 IPX 2

IPX 3

Fixed

ISPFNO

MNO

INTERNET

Openness– Open to everyone

– Ubiquitous access (fixed, mobile, ISP or ASP)

– choice (in addition to open Internet)

Quality– guaranteed QoS (E2E SLA, Reliability, Capacity)

– quality relationship with your IPX Provider

– security (accountability, spam reduction)

Cascading payments– cascading of revenues from End to End

– Payment by whoever perceives the value

– transparent value-based service pricing

Efficiency– ubiquitous Service via single Gateway

– multilateral commercial agreements

– flexibility & scalability

© GSM Association 2009

Peering Ensures Competition, Choice of IPX Provider

FNOs

SPs

IPX IPX

IPX IPX

MNOs

ISPs

ASPs

Layers of IPX Functionality

29

Clearing

Network

Signaling

ENUM

Billing

MediaConversion

Traffic Detection for routing, charging, and

multi-lateral destination policing

Service Aware for event-based and

stream-based traffic

Routing and Addressing

Fixed & MobileTermination

VoIP

Inter-Carrier Billing

Openness

Quality

CascadingPayments

Efficiency

For more information, please visit

www.gsmworld.com/technology/ipi

or email us at ipi@gsm.org

Thank you

BREAK

NETWORK ROAMING

Why?How?

Roaming

Network Network

eXchange

NetworkMobile Network

Why Roam?

↑ Coverage ↑ Revenue

Roam out of your Network (Retail revenue)Roam in to your Network (Wholesale revenue)

Who benefits?SubscriberYour network (“Home” network)Roaming partner network (“Serving” network)

Data Access

Data Access Steps:

1) Mobile: Select system

2) Mobile& System: Attach and establish session

3) Serve: Authenticate Mobile

4) Serve: Authorize Mobile

5) System: Connect

6) System: Accounting

Home AAASubscriber Database

Home Network

User Data (Mobile IP)

AAA signaling (RADIUS)

DataGateway

RadioControl

Service

Internet

Data Access when Roaming

Data Access while Roaming:

1) Mobile: Select system

2) Mobile & System: Attach and establish session

3) Serve: Authenticate Mobile

4) Serve: Authorize Mobile

5) System: Connect

6) System: Accounting

RoamingeXchange

Home AAASubscriber Database

Home Network

Serving AAASubscriber Database

ServingNetwork

RadioControl

Proxy AAA

Rating & Billing

User Data (Mobile IP)

AAA signaling (RADIUS)

DataGateway

DataGateway

RadioControl

Service

Internet

Data Access when Roaming on Wi-Fi

Data Access while Roaming:

1) Mobile: Select system

2) Mobile & System: Attach and establish session

3) Serve: Authenticate Mobile

4) Serve: Authorize Mobile

5) System: Connect

6) System: Accounting

RoamingeXchange

Home AAASubscriber Database

Home Network

Serving AAASubscriber Database

Serving Wi-Fi Network

Proxy AAA

Rating & Billing

User Data (Mobile IP)

AAA signaling (RADIUS)

DataGateway

DataGateway

RadioControl

Service

Internet

Internet

NETWORK ROAMING

As a network offload solution

Reducing the Cost of Data: Wi-Fi Roaming as an Extension of CDMA Roaming

November 3, 2010

Marcio AvillezVP, Network Offerings

Robert DuncanDirector, Product Management

Agenda

• Problem: Exponential Cost (Data use) [“How to Cope with Future Demand for Data Services,” CDG IRT, Tokyo, April 2009]

• Solution: Reuse Established CDMA Data Roaming• Benefits

– Reduced OPEX (Cost of Roaming)– Reduced CAPEX (Increased Capacity, Coverage)– Reduced Churn

• Implementation

A Tsunami of Connected (Mobile Internet) Devices

44Proprietary & Confidential

Problem: Traffic (Cost) Growing Faster than Revenue

45

Sources: Cisco, from Operators’ network data and Analysts;“Mobile data revenue will double by 2012,” Dan Locke, Analyst Insight, Pyramid, 4/2008]

Forec

ast:

25X tr

affic

incr

ease

Forecast: 2X revenue increase

“How to Cope with Future Demand for Data Services,” Robert Duncan, TNS, Tokyo CDG IRT, April 2009]

Exponential Cost - if not Controlled - will Exceed Revenue

“Service providers deploying a multi-access offload strategy can expect savings in the range of 20 to 25 per cent per annum”

Leading Operators Adopt Data Offload to Wi-Fi

• AT&T + Wayport Investment + Builds• Korea Carriers + 3 Operators build Wi-Fi • Vodafone + BT OpenZone • O2 UK + The Cloud (UK)• T-Mobile + T-Mobile• Verizon + Boingo

2008 2009 2010

Current deployments validate Wi-Fi as beneficial across multiple carrier and user

scenarios

Wi-Fi Roaming Solution (looks like Data Roaming via CRX)

Visited Wi-Fi Operator

HomeOperator

CRX

Visited Operator

Reporting/Customer

Service

HLR Proxy/ AAA Proxy

Rating /Clearing

Signaling Gateway

Reuses CRX functionality (looks like Data roaming) to reduce impact on Operator

Wi-FiConnection

Manager

3G Wi-Fi Offload – Primary Use Cases

International Use cases– Cost Avoidance: Leverage Wi-Fi to lower roaming costs for

international users– Revenue/Coverage Expansion: Leverage Wi-Fi to expand adoption

and coverage of international roaming services

Domestic Use Cases• Capex Avoidance/Management: offload as a capex management tactic or

a hedge against unpredictable or exponential data growth– Owned Networks or Commercial Networks

• Roaming Cost Avoidance: regional domestic players who pay to roam on national carrier networks

Potential Concerns– Cannibalizes roaming revenue– Operator sets Retail Price & therefore revenue

Benefits of Data Offload via Wi-Fi Roaming

OPEX Cost Savings • Wi-Fi per MB rates lower than equivalent roaming costs

CAPEX Savings• Increased Capacity with offload in high-usage venues:

Airport, Hotel, Conference center, City, Cafe, etc.• Indoor Coverage

Reduced Churn (avoid sticker shock)No network impact

• Reuses existing Data Roaming solution (CRX)

0

250

500

750

1,000

1,250

TBs/Month

2009 2010 2011 2012 2013

Smartphones

Modems

Device Form Factor Trends

• Smartphones consume 65% of bandwidth– Android, iPhone, Symbian and RIM comprise ~90%

0

20

40

60

80

100%

2010

252M

2011

384M

2014

Android

Symbian

RIM

Other OS

iOS

816M

10% 12% 15%OtherOS%

Source: Gartner (August 2010)

Forecast: Smartphone Sales by OS

Source Data: Morgan Stanley, 2009; Cisco VNI, 2010, iPass estimates

Forecast: Global Smartphone and Modem Monthly Data Consumption

SUMMARY

Interconnection of NetworksWhy: _______How: _______

Future: All-IP Network Interconnection using ______

Roaming among NetworksWhy: _______How: _______

“How to Make a lot more Money from your Network”

Making it Better!

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