Understanding Connectivity Models 0210

SYNIVERSE TECHNOLOGIES WWW.SYNIVERSE.COM

White Paper

Understanding Connectivity Models for SMS InteroperabilityThis white paper:• Provides an overview of SMS interoperability, interworking and roaming.• Illustrates the elements an effective SMS interoperability solution should

support.• Describes current SMS interoperability connection options, including

peering, hubbing and a hybrid model, and the pros and cons of each.

Table of Contents

Executive Summary ...................................................................................3

SMS Interoperability Description..................................................................4

SMS Interoperability Connection Models ......................................................6

Peering Model (GSM Legacy Bilateral Model) .........................................6

Hubbing Model (GSM Open Connectivity Model).....................................7

Hybrid Model ......................................................................................8

Comparison of SMS Interoperability Models..................................................9

Conclusion...............................................................................................10

Syniverse NEXTSM SMS Open Connectivity Hub ...........................................11

SYNIVERSE TECHNOLOGIES 2 WWW.SYNIVERSE.COM

Executive Summary

Today’s mobile operators know that to provide seamless messaging services, they need simple ways to interconnect and interwork with one another. This ability can boost subscriber satisfaction and reduce churn by enabling subscribers to:

• Send SMS messages to family, friends and colleagues around the globe.

• Access messaging services in any market where they roam.

• Seamlessly use messaging services no matter what network, technology or device the message recipient is using.

Whileitisimportantforoperatorstokeepsubscriberssatisfied,italsoisvitalforthemtohave reliable connections with one another. The three connection models currently used today by mobile operators include:

1. Peering model – Operators have multiple bilateral agreements that support point-to-point connections among peering partner networks.

2. Hubbing model – Operators have a single connection to a centralized hub that supports point-to-multi-point connections to reach all operator partners.

3. Hybrid model – Operators have mixed clusters of point-to-point and point-to-multi-point connections, and are connected to a hub provider and other selected operators.

No matter which model an operator chooses to employ, the connection should support a number of requirements, including:

• Quality of service for connectivity, service availability and message latency

• Security

• Anti-SPAM

• Character length and message concentration

• SMS classes of service and character set conversion

• Confirmationandnotificationofmessagedeliveryand/or“readreceipt”

Moreover,intoday’sglobaleconomy,operatorsmustrealizethecostsavingsandefficienciesavailable to them for SMS. One way to accomplish this is via open connectivity (OC) SMS hubbing services. OC hubbing models provide economical and extensible solutions for all operatorsandcansupportunplannedtrafficpeaks,simplecustomercareandnetworkoperation processes.


SMS Interoperability Description

SMS interoperability enables operators (regardless of network technologies and geographic regions) to offer their subscribers the ability to easily send and receive SMS messages to friends, family and colleagues who are on a different operator’s network. SMS interoperability commonly refers to the SMS interworking service that provides the connection and routing of SMS messages between two operator networks.

One element of SMS interoperability is SMS interworking, an arrangement between operators that allows an operator’s subscribers to send and receive SMS messages to and from any other operator’s subscriber using the subscriber’s mobile number as the address (e.g., an AIS (GSM) subscriber originates an SMS that terminates on a Sprint (CDMA) subscribers handset).

Another service is SMS roaming, an arrangement by operators to allow their roaming subscribers to exchange SMS messages with other operator’s subscribers using a subscriber’s mobile number as the address. Both originating and terminating subscribers can send and receive SMS messages, whether one or both are on their home operator’s network or roaming on a partner network. (e.g., an AIS subscriber roaming on AT&T can send an SMS message to a Sprint subscriber roaming on the Telus network).

An effective SMS interoperability solution should support the following requirements:

1. Quality of service for connectivity, service availability and message latency: Provide effective connectivity and system capacity with a high level of reliability (geo-redundantsystem)tosupporttrafficgrowth(bothplannedandunplanned)toeachoperatorortotheoperator’sthirdpartyvendorofchoicethathostsSMStraffic.Needscalable connections to quickly handle increases in volume.

2. Security: Build in security to ensure third party intermediaries or other operators are unable to access subscriber information or messaging not required to support SMS interoperability. As security needs increase for services like banking, the SMS interoperability hub environment also should support security and fraud protection requirements.

3. Anti-SPAM: Build in an anti-SPAM program to deny the opportunity for spammers from other operators to affect subscribers and the home network. Take all precautionary meanstocontrolandeliminateSPAMforallSMStraffic.

4. Character length and message concentration: Work to reconcile the maximum message length of different operators and network technologies (for example, 150 characters for CDMA and 160 characters for GSM). All operators will need to be profiledinordertoserveotheroperatorswithsmallermessagelengths(e.g.,Koreanoperators support only 80-character SMS messages).

5. SMS classes of service and character set conversion: Support all text bases, international characters and binary content. Provide character set mapping from IA5 (GSM)toASCII(TDMA/CDMA).


6. Confirmationandnotificationofmessagedeliveryand/or“readreceipt”:Providesupporttohandlemessagedeliveryconfirmationstoanotheroperator’ssubscribers.This function may be a requirement by some international operators to satisfy their local regulators.

7. Trafficreport,messagedetailrecord(MDR)andbillingrelationship:ProvidemeaningfulMDRsandtrafficreportstosupportengineeringplanning,operation,careand billing settlement with other operators.

8. Mobile number portability: Access mobile number portability (MNP) for all outbound SMS messages to determine correct operator destinations.

9. Message delivery, queue period and re-try schedule: Negotiate with other operators to determine an acceptable timeframe for message delivery, including the re-try schedule,andthequeueorprioritystandards.Providethecapabilitytooffloadtrafficfrom an originating operator’s SMSC to defer costly system-capacity upgrades. The queue should be large enough to support network or system congestion.

10. Large-scale hubbing network: Provide more destinations to achieve full network effect foroperatortrafficexchange,andimprovecostsandefficiencies.

11. Support of next generation message service: Support for advanced (SIP-based) messaging and interoperability between 2, 2.5 and 3G network messaging services.


SMS Interoperability Connection ModelsThere are three basic connection models to support SMS interoperability: peering, hubbing and hybrid.

Peering Model (GSM Legacy Bilateral Model)

The peering model, as seen in Figure 1, employs multiple bilateral agreements that support point-to-point connections among peering partner networks. In this model, onboarding of new operators is the responsibility of the individual operator and can only be used in a homogeneous network environment (e.g., GSM). The model works well for a small number of operators offering simple text messaging service. However, the model is problematic for a large number of operators offering complex service and business arrangements.

Many GSM operators have used this model with the complex billing and settlement (AA.19) over GSM MAP (SS7) connections. The GSMA has been working with the industry to recommend migrating from the peering to the hubbing model through open connectivity (OC) SMS hubbing services. The model may not work over SS7 connections across network technologies because inter-system mobile application parts (MAPs) between ANSI-41 and GSMhavenotbeendevelopedandratified.Therealsomayberequirementstoimplementnew network entities to support this serving arrangement.

Alternatively, if operators want to connect their SMSC network using IP connections such as SMPP, they will need to provide the SMS interoperability hub network functions to support SMSinteroperabilitytrafficexchangeproperly.

FIGURE 1Peering Model (GSM Legacy Bilateral Model)


Technical implementation varies with each partner, no WNP solution, difficult to support interworking

across different network technologyEngineering

Bilateral negotiations with 400+ partners: No standard SLA Business

Still requires third party settlement service Settlement

Huge overhead to maintain many bilateral connection and transactions Operation

Hubbing Model (GSM Open Connectivity Model)

The hubbing model, shown in Figure 2, provides a single agreement and point to multi-point connectiontoenablefullSMSinteroperabilityregardlessofnetworktechnologiesorspecificoperatornetworkconfigurations.Anindividualoperatorisconnectedtoahubproviderusing a single connection, SLA and billing relationship (to the hub provider only) to reach all operator partners. The onboarding of new operators is the responsibility of the hub provider, includingtesting,profilingandothercapabilityadaptations.Thisservingarrangementworksfor a large number of operators with complex service and business relationships.

The GSMA has recommended using the requesting party pay (RPP) model with cascade billing, which has been employed by hub providers in the United States. The hubbing model can use either SMPP (IP) or SS7 connections, though it is recommended to use SMPP over IP because of the effectiveness and expandability of this protocol for SMS hub connections.

FIGURE 2 Hubbing Model (GSM Open Connectivity Model)


One-time hub setup to reach all partners, WNP solution, interworking with different network

technologyEngineering

Single contract with aggregated volume power: SLA Business

Settlement provided by hub Settlement

Professional management under SLA and 24x7 support Operation

Hybrid Model

Thehybridmodelisacomplexconfigurationwithmixedclustersofpoint-to-pointandpoint to multi-point connections. As shown in Figure 3, an individual operator is connected to a hub provider and other selected operators. Onboarding of new operators may be the responsibility of the hub provider or the operator, depending on the destination operators. This model can be used to enable SMS interworking across different network technologies. It also works for a large number of operators with complex service and business arrangements. The serving arrangement supports both simple billing and SLA relationships with operators behind a hub as well as complex bilateral relationships with direct connect operators. Operators that employ this model will need to operate a complex routing gateway and operation support (with the full capability and function as a hub provider).

FIGURE 3Hybrid Model


Technical implementation varies with each partner, no WNP solution, difficult to support interworking

across different network technologiesEngineering

Bilateral negotiations with fewer operators but may still be large number of partners:

No standard SLABusiness

Still requires third party settlement service Settlement

Huge overhead to maintain many different connections and transactions Operation

Comparison of SMS Interoperability ModelsTable 1 below summarizes the pros and cons associated with SMS interoperability serving models.

TABLE 1Comparison of SMS Interoperability Models


Pro Con

Peering Model

Low latency Complex MDR, billing and settlement

End-to-end delivery confirmation (possible in GSM only)

- Complex routing and connection management

- Implementation and testing (new partners)

- SPAM control

- High capital (SMSC for store and forward)

- MNP

- Multiple SLAs, subscriber care and operation support

- Character mapping (converting between IA5 and ASCII) and possibly other more complex character sets

Hub Model

Simple billing and settlement

Perceived high expense (outsourcing)

Simple routing management

Single SLAs and connection

Hybrid Model

Flexible routing and control Complex MDR, billing and settlement

- Complex routing and connection management

- SPAM control

- High capital (hub for store and forward)

- MNP

- Subscriber care and operation support

- Character mapping (converting between IA5 and ASCII) and possibly other complex character sets

ConclusionWith the growth and proliferation of operators, as well as voice and data services, the exchange of international data has become highly complex, onerous and resource intensive. The bilateral and hybrid agreement models are costly and can restrict operators from realizing their interoperability footprint goals and objectives for a number of reasons: (1) desired roaming partners already have multiple agreements in their service area; (2) the operator does not rank high enough on the selected partner’s priority list; (3) the prospective partnerisbusyimplementingothertechnologiesorservices(CAMEL/WIN,IMS,etc.).

Furthermore,therearesignificantcostsassociatedwiththecoordinationofglobalserviceandimplementation of each interoperability partner. In some cases, it may not be commercially viableforanoperatortohavecertaindestinationsavailableduetothefinancialandoperational outlay required to implement an agreement with a particular partner.

Syniverse recommends the OC hubbing model for operators looking for the most cost-efficient,simplewaytoimplementagreementsandinteroperatewithglobaloperators.Global interoperability is made easy with OC because operators only have to manage a single relationship and connection with their hub provider instead of with each partner. And with an ever-growinglistofoperatorsenteringthemobilespace,simplifiedinteroperabilityiskeyforoperators to realize subscriber satisfaction and revenue gains.



Syniverse NEXTSM SMS Open Connectivity Hub

TheSyniverseSMSOpenConnectivity(SMS-OC)Hubhelpsoperatorsefficientlyandreliablyexchange SMS messages with other operators, and therefore provide a large messaging reach for their subscribers. In addition to message exchange, this service can provide a majority of the services performed by an operator’s roaming services group, reducing operating costs. Some of these services are:

• Traditionaloperatorcertification(TADIGandIREGtesting)

• Termination fee and agreement establishment

• Clearing and settlement of messages exchanged between operators

Syniverse has a strong legacy in the messaging interoperability business, currently reaching more than 770 operators across the globe and processing over 1.3 billion SMS messages per day. Syniverse is unique in its ability to operate in all segments of the value chain, including managing the complex operator interfaces, relationships, distribution, billing, reporting, analytics, clearing and settlement. The Syniverse Advanced Messaging Hub also supports mobile instant messaging (MIM) interoperability and a bridging capability that connects various network domain (2G, 2.5G, 3G and 4G) messaging services.

Syniverse SMS-OC provides a single contract and connection to reach all of an operator’s partners. It is the most economical and extensible solution regardless of an operator’s size or network coverage. The managed service arrangement eliminates the costly need to over engineer the network and the complex task of managing roaming operator partners, which requires a cross-functional group to manage roaming, SMS interworking services, and complex billing and settlement relationships. Syniverse SMS-OC provides the most effective solutiontosupportunplannedtrafficpeaks,simplecustomercareandanetworkoperationprocess.

About Syniverse Technologies

Syniverse Technologies (NYSE:SVR) provides mobile technology for the global telecommunications industry, making it possible for disparate data, messaging and voice technologies to interoperate anywhere, any time. Serving more than 800 communications companies in over 160 countries, Syniverse offers market-leading solutions that simplify the complexities of roaming, messaging, network interoperability and business intelligence for mobile operators, MSOs, enterprise verticals and emerging mobile providers. For more information, visit www.syniverse.com.

© 2009 Syniverse Technologies, Inc. All rights reserved under U.S. and international copyright laws. Rev. 12-09

Understanding Connectivity Models 0210

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