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TLEN 5510

Future of Inter
-
Networking

Robert Duncan

Transaction Network Services

rduncan@tnsi.com

+1 (303) 810
-
2634 (m)

“How to Make
a lot more
Money

from your Network”

Topics


Interconnection

of Networks


Why?


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

eXchange

Local

eXchange

Local

eXchange

Local

eXchange

Local

eXchange

Toll

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

Network

New

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’ traffic


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



Metcalfe’s Law

1

2



S
1,000,000

1









2




















1,000,000









1

2



S
1,000,000

1









2




















1,000,000









1

2



S
1,000,000



S
2,000,000

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 _____?

Mobile

Network

Current Inter
-
Network Connections

Telephone

eXchange

IP

Network

Fixed

Network

Mobile

Network

IP

Network

Fixed

Network

Any

Disadvantages?

Mobile

Network

Disadvantages of Public Telephone Connections

Telephone

eXchange

IP

Network

Fixed

Network

Mobile

Network

IP

Network

Fixed

Network

↑ Cost

↑ Complexity

↓ QoS

↓ Features

Mobile

Network

Native Inter
-
Network Connections

Telephone

eXchange

IP

Network

Fixed

Network

Mobile

Network

IP

Network

Fixed

Network

IP

eXchange

Today:
Mobile Connects via Public Telephone (PSTN)

16

GRX

BG

BG

PSTN

(LEC + LD)

STP

MSC

MSC

SGSN

SGSN

Op A

Op B

Data

Circuit Voice

Circuit
Voice

Circuit
Voice

Tomorrow:
Mobile connects via IP

17

IPX

MSC

Server

MGW

MSC

Server

MGW

BG

BG

SIP

Proxy

Packet
Voice

Circuit
Voice

Circuit
Voice

PSTN

(LEC + LD)

STP

Existing technology

Not All
-
IP

Data

SGSN

SGSN

Op A

Op B

MSC

MSC

ENUM

Future: LTE connects via IP

18

Op A

IPX

Op B

CSCF

MGW

CSCF

MGW

BG

BG

SIP

Proxy

PSTN

(LEC + LD)

STP

LTE/All
-
IP

SGSN

SGSN

MSC

MSC

Data

ENUM

Packet
Voice

Packet Voice

Packet Voice

Choosing the Least Cost Route for Voice Connections

19

IPX Provides Voice & Data Connectivity

FNOs

ASPs

SPs

MNOs

ISPs

GSM,
GPRS/UMTS
Operators

CDMA
Operators

A Common Connection Point for Voice
& Data

TNS
IPX

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 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)


INTER
-
NETWORK FUTURE

An IP eXchange (IPX)


© GSM Association 2009

All Operators Can Use IP eXchange (IPX)

FNOs

ASPs

SPs

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 Needs

MNO
s needs to support a wide range of multimedia
-
based application with high
quality.

FNO
s are developing Next
-
Generation Networks

ISP
s &
ASP
s 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.

Confidential

27

IPX
Interconnect
Principles

Mobile

ISP

FNO

MNO

IPX TRUSTED ENVIRONMENT

Private IPX

Domain

IPX 1

IPX 2

IPX 3

Fixed

ISP

FNO

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

Media

Conversion

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

Service Aware

for
event
-
based and
stream
-
based traffic

Routing and
Addressing

Fixed & Mobile

Termination

VoIP

Inter
-
Carrier
Billing

Openness

Quality

Cascading

Payments

Efficiency

For more information, please visit


www.gsmworld.com/technology/ipi

or email us at ipi@gsm.org

Thank you

NETWORK ROAMING

Why?

How?

Roaming

Network

Network

eXchange

Network

Mobile

Network

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 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 AAA

Subscriber

Database

Home
Network

User Data (Mobile IP)

AAA signaling (RADIUS)

Data

Gateway

Radio

Control













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


Roaming

eXchange

Home AAA

Subscriber

Database

Home
Network

Serving AAA

Subscriber

Database

Serving

Network

Radio

Control

Proxy
AAA

Rating &
Billing

User Data (Mobile IP)

AAA signaling (RADIUS)

Data

Gateway

Data

Gateway

Radio

Control



























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


Roaming

eXchange

Home AAA

Subscriber

Database

Home
Network

Serving AAA

Subscriber

Database

Serving

Wi
-
Fi Network

Proxy
AAA

Rating &
Billing

User Data (Mobile IP)

AAA signaling (RADIUS)

Data

Gateway

Data

Gateway

Radio

Control



























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 Avillez

VP, Network
Offerings

Robert Duncan

Director, 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

43

Proprietary & Confidential

Problem: Traffic (Cost) Growing Faster than Revenue

44

Sources: Cisco, from Operators’ network data and Analysts;

“Mobile data revenue will double by 2012,” Dan Locke, Analyst Insight, Pyramid, 4/2008]

“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 Roami ng Sol uti on (looks l i ke Data Roami ng vi a CRX)

Vi s i t ed Wi
-
Fi Oper at or

Home

Oper at or

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
-
Fi

Connection
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)

Device Form Factor Trends


Smartphones consume 65% of bandwidth


Android, iPhone, Symbian and RIM comprise ~90%

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

Thank you!


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Q
&

A

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