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“How to Make a lot more Money from your Network”. TLEN 5510. Future of Inter-Networking Robert Duncan Transaction Network Services rduncan@tnsi.com +1 (303) 810-2634 (m). Topics. Interconnection of Networks Why? How? Future : All-IP Network Interconnection (IPX)

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tlen 5510

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

TLEN 5510

Future of Inter-Networking

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

topics
Topics
  • Interconnection of Networks
    • Why?
    • How?
  • Future: All-IP Network Interconnection (IPX)
  • Roaming among Networks
    • Why?
    • How?
intro
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
recurring pattern
Recurring Pattern

Hub

Connections:

n*(n-1)

n

telephone
Telephone

Toll

Local

Local

Local

Local

eXchange

eXchange

eXchange

eXchange

eXchange

WHY Interconnect networks? More subscriber connections, traffic, revenue

network interconnection
Network Interconnection

eXchange

Network

Network

Network

Network

WHY use an eXchange? Fewer network connections, Lower cost

new network interconnection
New Network Interconnection

New

eXchange

Network

Network

Network

Network

> 1000 Mobile networks!

WHY use an eXchange? Fewer network connections, Lower cost

connecting networks creates value

Metcalfe’s Law

Connecting Networks Creates Value

+

=

  • Value (Network A) + Value (Network B) = ???
  • Example:
    • Value (Network A) = 1,000,000 subscribers’ traffic
    • Value (Network B) = 1,000,000 subscribers’ traffic
why inter networking
Why Inter-Networking?

Maximize Revenue (Metcalfe’s Law)… at Minimum Cost

current inter network connections
Current Inter-Network Connections

FixedNetwork

FixedNetwork

TelephoneeXchange

MobileNetwork

MobileNetwork

IPNetwork

IPNetwork

Any Disadvantages?

disadvantages of public telephone connections
Disadvantages of Public Telephone Connections

FixedNetwork

FixedNetwork

TelephoneeXchange

MobileNetwork

MobileNetwork

↑ Cost

↑ Complexity

↓ QoS

↓ Features

IPNetwork

IPNetwork

native inter network connections
Native Inter-Network Connections

FixedNetwork

FixedNetwork

TelephoneeXchange

MobileNetwork

MobileNetwork

IPNetwork

IPNetwork

IPeXchange

today mobile connects via public telephone pstn

STP

Today: Mobile Connects via Public Telephone (PSTN)

PSTN(LEC + LD)

Signaling

Voice

MSC

MSC

GRX

BG

BG

Data

SGSN

SGSN

Op A

Op B

Circuit Voice

Circuit Voice

Circuit Voice

tomorrow mobile connects via ip

STP

Tomorrow: Mobile connects via IP

PSTN(LEC + LD)

Existing technologyNot All-IP

MSC

MSC

MSC

Server

MSC

Server

IPX

Signaling

BG

BG

Data

SGSN

SGSN

SIP

Proxy

Voice

ENUM

MGW

MGW

Op A

Op B

Circuit Voice

Packet Voice

Circuit Voice

future lte connects via ip

STP

Future: LTE connects via IP

PSTN(LEC + LD)

LTE/All-IP

MSC

MSC

CSCF

CSCF

IPX

Signaling

BG

BG

Data

SGSN

SGSN

SIP

Proxy

Voice

ENUM

MGW

MGW

Op A

Op B

Packet Voice

Packet Voice

Packet Voice

ipx provides voice data connectivity
IPX Provides Voice & Data Connectivity

A Common Connection Point for Voice & Data

ISPs

MNOs

TNS IPX

Packet Data

Packet Voice

GSM, GPRS/UMTS Operators

Circuit Voice

ASPs

SPs

CDMA Operators

FNOs

benefits of native ip connections
Benefits of Native (IP) Connections

International LD: $0.0500/MOU

Current LEC interconnect: $0.0025/MOU

Current VoIP interconnect: $0.0005/MOU

100X less revenue/minute

↓ Cost <10% of Current

↓ Complexity Flat

↑ QoS Fewer vocoders

↑ Features Unobstructed operation

observing this trend in use
Observing this Trend in Use
  • International LD (greatest margins) use of IP
    • 2006: 2% to 4% of all VoIP traffic goes through a peering service
    • 2010: Over 50% International Voice via IP
  • 2010: Mobile-Mobile use of IP eXchange (IPX)
all operators can use ip exchange ipx

IPX

All Operators Can Use IP eXchange (IPX)

MNOs

ISPs

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

SPs

ASPs

FNOs

aicent ipx viewpoint
Aicent IPX Viewpoint
  • Market Needs
    • MNOs needs to support a wide range of multimedia-based application with high quality.
    • FNOs are developing Next-Generation Networks
    • ISPs & ASPs are offering more content/application services
    • All entities want to interconnect each other in a controlled, efficient, profitable and cost-effective manner.
  • IP Interworking
    • IP 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.
ipx interconnect principles

IPX TRUSTED ENVIRONMENT

Private IPXDomain

ISP

ISP

FNO

FNO

IPX 1

IPX 2

MNO

MNO

IPX 3

INTERNET

Fixed

Mobile

IPX Interconnect Principles
  • 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
layers of ipx functionality
Layers of IPX Functionality

Clearing

Inter-Carrier Billing

Billing

Routing and Addressing

ENUM

Service Aware for event-based and stream-based traffic

VoIP

Signaling

Traffic Detection for routing, charging, and multi-lateral destination policing

MediaConversion

Fixed & MobileTermination

Network

slide29

Quality

Openness

For more information, please visit

www.gsmworld.com/technology/ipi

or email us at ipi@gsm.org

Thank you

Cascading

Payments

Efficiency

roaming
Roaming

Mobile

eXchange

Network

Network

Network

Network

why roam
Why Roam?
  • ↑ Coverage
  • ↑ Revenue
    • Roam out of your Network (Retail revenue)
    • Roam in to your Network (Wholesale revenue)
  • Who benefits?
    • Subscriber
    • Your network (“Home” network)
    • Roaming partner network (“Serving” network)
data access
Data Access

Service

Home Network

Internet

RadioControl

DataGateway

Home AAA

Subscriber Database

User Data (Mobile IP)

AAA signaling (RADIUS)

Data Access Steps:

Mobile: Select system

Mobile& System: Attach and establish session

Serve: Authenticate Mobile

Serve: Authorize Mobile

System: Connect

System: Accounting

data access when roaming
Data Access when Roaming

Service

Home Network

Serving

Network

RoamingeXchange

Internet

RadioControl

DataGateway

DataGateway

RadioControl

Proxy AAA

Serving AAASubscriber Database

Home AAA

Subscriber Database

Rating & Billing

User Data (Mobile IP)

AAA signaling (RADIUS)

Data Access while Roaming:

Mobile: Select system

Mobile & System: Attach and establish session

Serve: Authenticate Mobile

Serve: Authorize Mobile

System: Connect

System: Accounting

data access when roaming on wi fi
Data Access when Roaming on Wi-Fi

Service

Home Network

Serving Wi-Fi Network

RoamingeXchange

Internet

Internet

RadioControl

DataGateway

DataGateway

Proxy AAA

Serving AAASubscriber Database

Home AAA

Subscriber Database

Rating & Billing

User Data (Mobile IP)

AAA signaling (RADIUS)

Data Access while Roaming:

Mobile: Select system

Mobile & System: Attach and establish session

Serve: Authenticate Mobile

Serve: Authorize Mobile

System: Connect

System: Accounting

reducing the cost of data wi fi roaming as an extension of cdma roaming

November 3, 2010

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

Marcio AvillezVP, Network Offerings

Robert DuncanDirector, Product Management

agenda
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
problem traffic cost growing faster than revenue

Forecast: 25X traffic increase

Forecast: 2X revenue increase

Problem: Traffic (Cost) Growing Faster than Revenue

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

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

exponential cost if not controlled will exceed revenue
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
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

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

2008

2009

2010

wi fi roaming solution looks like data roaming via crx
Wi-Fi Roaming Solution (looks like Data Roaming via CRX)

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

Visited Operator

HomeOperator

CRX

Wi-FiConnection Manager

Rating /

Clearing

Visited Wi-Fi Operator

Reporting/Customer Service

Signaling Gateway

HLR Proxy/ AAA Proxy

3g wi fi offload primary use cases
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
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)
device form factor trends
Device Form Factor Trends
  • Smartphones consume 65% of bandwidth
    • Android, iPhone, Symbian and RIM comprise ~90%

Forecast: Global Smartphone and Modem Monthly Data Consumption

Forecast: Smartphone Sales by OS

Source: Gartner (August 2010)

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

thank you
Thank you!

--------------------------------------------

Q & A

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