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ALSO INSIDE: NETWORK INNOVATION > > Four key areas that you need to be aware of in 2013 DIAMETER SIGNALING > Why this emerging technology is the talk of the town OTT SERVICES > Which operator-led services are most likely to succeed? MWC PREVIEW Special report looking in-depth at the 2013 event in its new venue Issue no. 226 February/March 2013 www.mobileeurope.co.uk @mobileeurope EUROPE MOBILE EUROPE’S WIRELESS MAGAZINE P44 P32 P38 WOMAN OF POWER Juliet Shavit on the increasing collaboration between the communications and utilities industries SmartMark Communications Special Promotion

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Page 1: EUROPE’S WIRELESS MAGAZINE MOBILE

ALSO INSIDE:

NETWORKINNOVATION>> Four key areas that

you need to be awareof in 2013

DIAMETERSIGNALING>Why this emerging

technology is the talkof the town

OTT SERVICES>Which operator-led

services are mostlikely to succeed?

MWCPREVIEW

Special reportlooking in-depth at

the 2013 event in itsnew venue

Issue no. 226 � February/March 2013 � www.mobileeurope.co.uk � @mobileeurope

EUROPEMOBILE

E U R O P E ’ S W I R E L E S S M A G A Z I N E

P44

P32

P38

WOMAN OF POWERJuliet Shavit on the increasing collaborationbetween the communications and utilitiesindustries

SmartMark Communications Special Promotion

Page 2: EUROPE’S WIRELESS MAGAZINE MOBILE
Page 3: EUROPE’S WIRELESS MAGAZINE MOBILE

REGULARSEDITORIALChanges to both Mobile World Congress and MobileEurope for 2013

NEWSAll the latest news from the first two months of 2013,including WiGig, NFC, 4G spectrum, HD voice and

much more

MWC 2013 PREVIEWMOBILE WORLD CONGRESS 2013 PREVIEWOur preview features five key themes to look out for plusinterviews with the GSMA and Mobile World Capital

FEATURESMOBILE NETWORK INNOVATION: WHAT DOES 2013HAVE TO OFFER?David Chambers looks at four key areas of network

innovation and analyses what they mean for mobile operators

TIME TO GO OVER THE TOP?More and more mobile operators are experimenting withOTT communications services, but which are most likely

to succeed, wonders David Pringle

DIAMETER SIGNALING: WHY THE BUZZ HAS ONLY JUST BEGUNPeter Jarich looks at this emerging technology and

explains why we can expect to see and hear a lot more about it this year

go to www.mobileeurope.co.uk for the latest information on mobile Mobile Europe | 3

Contents

04

06

19

February / March 2013

pic from page11 32

44

38

Mobilenetworkinnovation

HD voice

Juliet Shavit on smart gridsOTT service success

Page 4: EUROPE’S WIRELESS MAGAZINE MOBILE

Mobile World Congress 2013

What can we expect from the old show in the new venue? That is the question

we attempt to answer in our annual Mobile World Congress Preview.

First up, the new venue. The GSMA’s Michael O’Hara explains why

delegates can expect an improved congress experience thanks

to more space and, crucially, better WiFi. Better networking is

also promised alongside “green spaces”.

Aside from the logistics, MWC has gone supersize on NFC and

a Connected City. The bet on NFC is a bold, some would say

foolhardy, move given the troubled birth that particular

technology has had. Nevertheless, with many more NFC-enabled

devices expected to launch and ship this year

the GSMA clearly believes it has a future – we will check on that.

The Connected City is more of a certainty, but what role telcos

will play in it is less sure. Again, we will be checking out what’s in

it for you and report back.

We have picked out five key themes that you can expect to hear

most about during MWC this year. From the threats of new

entrants to the opportunities provided by new devices, the

enterprise market, M2M and m-payment, we look at what you can

expect to learn this year.

Barcelona is no longer “just” the host city for MWC – it is now the Mobile

World Capital as well. We talk to Jesus Moreno Pinar, one of the men charged

with communicating what this actually means, about what impact this will have

on the European mobile space.

Whatever you do at Congress this year, we hope you have an enjoyable, fruitful

and safe time.

A new start for Mobile Europe

It’s the start of a new year and there is a new team forming at Mobile Europe.

Marc Smith, editor of Mobile Europe’s sister title European Communications, is

the new group editor of both titles. Mary-Ann Russon, meanwhile, joins us as

the new deputy editor.

You can find contact details for both in the panel to the right and both will

be at Mobile World Congress. We look forward to meeting you all and hearing

your views over the coming months.

But it’s not just a change of personnel. You will also begin to see some

editorial and design changes in our next issue and moving forwards. We will

communicate the nature of these changes in due course but, for now, we look

forward to serving our loyal readers and welcoming new ones in the coming

weeks and months.

Aside from your MWC preview, this issue also features some of the latest news

since the turn of the year. There will be less news going in the magazine

moving forward, so make sure are signed up to receive on e-newsletter by

visiting www.mobileeurope.co.uk and follow us on Twitter @mobileeurope to

keep abreast of all the latest happenings in the European mobile space.

Finally, we have three excellent features this issue: David Chambers looks at

what changes will affect mobile networks over the next 12 months; David

Pringle analyses which OTT communications services will prosper; and Peter

Jarich reveals why we will all be hearing a lot more about Diameter Signaling

moving forward. Happy reading!

4 | Mobile Europe

editorial

Group Editor: Marc [email protected] tel: +44 (0)20 7933 8990

Deputy Editor: Mary-Ann [email protected]

Direct tel: +44 (0)20 7933 8990

Design: Tania King

Account Director: Rosie [email protected] tel: +44 (0) 20 7933 8980

Publisher: Justyn [email protected] tel: +44 (0) 20 7933 8979

Publishing director: Chris Cooke

ISSN: 1350 7362

Free SubscriptionsMobile Europe is a controlled circulation bi-monthly magazine

available free to selected personnel at the publisher’s discretion.If you wish to apply for regular free copies please register online

at: www.mobileeurope.co.uk/subscribe

Paid SubscriptionsReaders who fall outside of the strict terms of control may

purchase an annual subscription.1 year UK subscription: £96

1 year International subscription: £120To purchase a subscription please call: +44 (0)1635 879361

Subscription QueriesSubscription enquiries should be sent to:

Free subscriptions: [email protected] subscriptions: [email protected]

Tel: +44 (0)1635 879 361

Printed ByPensord Magazines & Periodicals, Pontlanfraith, UK

Follow us on Twitter@mobileeurope

Join us on LinkedInhttp://linkd.in/K4M40F

EUROPEMOBILE

The views expressed in MobileEurope are not necessarily those of

the editor or the publisher. Mobile Europe is published by Saint

John Patrick Publishers Ltd, 6 Laurence Pountney Hill,

London EC4R 0BL.

ALSO INSIDE:

NETWORKINNOVATION

> Four key areas that

you need to be aware

of in 2013

DIAMETERSIGNALING>Why this emerging

technology is the talk

of the town

OTT SERVICES

>Which operator-led

services are most

likely to succeed?

MWCPREVIEW:

Special report

looking in-depth at

the 2013 event in its

new venue

issue no. 226 � February/March 2013 � www.mobileeurope.co.uk � @mobileeurope

EUROPEMOBILEE U R O P E ’ S W I R E L E S S M A G A Z I N E

P38

P32

P44

WOMAN OF POWERJuliet Shavit on the increasing

collaboration between the

communications and utilities

industries

SmartMark Communications Special Promotion

Page 5: EUROPE’S WIRELESS MAGAZINE MOBILE
Page 6: EUROPE’S WIRELESS MAGAZINE MOBILE

6 | Mobile Europe

News

With the signing of a memorandum of

understanding in January, the final barriers for

a merger between the Wireless Gigabit

(WiGig) Alliance and the WiFi Alliance have

come down.

Under the banner of the WiFi Alliance, the

plan is to develop a 60GHz wireless

interoperability programme by end 2013.

This marriage will further compatibility and

interoperability between devices and

accelerate adoption of higher speed

standards.

The goal is to transfer technology

development activity and WiGig assets to the

WiFi Alliance by this summer while the first

interoperability certification for WiGig

products is due later this year.

The merger is the result of two years’

collaboration in which the WiGig Alliance

developed technology specifications,

including the Mac-Phy and Protocol

Adaptation Layers (PALS), while the WiFi

Alliance worked on interoperability

certification for 60GHz products.

Combining the joint expertise of the two

organisations is expected to accelerate the

availability of fast, high-performance,

seamless 60GHz solutions resulting in a

seamless, faster and more efficient experience

for users.

WiGig technology supports short-range,

multi-gigabit connectivity for applications

ranging from high definition display

extensions to peripheral connectivity and I/O

cable replacement.

Communications between enabled

handheld devices, consumer electronic

equipment and PCs uses readily available

unlicenced 60GHz spectrum.

The overall aim is to increase efficiency by

harmonizing connectivity and application

layer solutions and integrate WiGig

technologies into the entire range of WiFi

products.

“This is an exciting technology, and has

been an important highlight of our

certification roadmap for some time, so we

are delighted to take this step,” said Wi-Fi

Alliance president and CEO Edgar Figueroa.

ABI Research expects annual shipments of

devices including both WiFi and WiGig

technologies to reach 1.8 billion by 2016.

“It’s clear that 60GHz technology is an

important part of the future of wireless

connectivity and a significant complement to

traditional Wi-Fi networking,” explained Peter

Cooney, practice director for semiconductors,

ABI Research.

“With so many devices expected to

incorporate both traditional Wi-Fi and WiGig,

it just makes sense for activities to consolidate

under the Wi-Fi Alliance organization.”

WiGig / WiFi Alliance merger l GeoMarketing deal l

Alcatel-Lucent and value-addedsoftware provider Intersec have signeda global partnership agreement tocreate location-based advertisingsolutions for operators and retailers.

The “GeoMarketing service” willenable mobile operators to connectbrands and retailers to consumers viatheir mobiles based on their permission,preferences and location to drive in-store traffic.

The service combines two solutions.Intersec’s IGLOO tool collects and

aggregates anonymised network data inreal-time to provide efficient “in area”and “proximity” detection of all opt-insubscribers at a defined moment of theday.

A-L’s Optism Mobile Marketingproduct will be embedded with IGLOOto gather and analyse this location datato provide customers with relevantoffers to drive in-store traffic.

The two firms said the solution willenable operators to deliver servicesincluding walk-in rewards, location-based targeted coupons and deals.

“We will be able to provide one ofthe most efficient location-basedadvertising solutions available forbrands looking to communicate withtheir consumers via mobile devices,”commented Intersec CEO YannChevalier.

Alcatel-Lucent andIntersec announcelocation-basedadvertising tie-up

WIGIG TECHNOLOGY GETSBOOST AS BODIES MERGE

Page 7: EUROPE’S WIRELESS MAGAZINE MOBILE

First, the Sweden-based vendor has won a

contract to test and verify the performance of all

devices within the US-based operator’s Global

SIM Program.

Launched in 2012 the Global SIM Program is

designed to support AT&T’s corporate strategy

of expanding international business and take

connected devices to what it describes as the

“next level”.

Second, AT&T announced it is using Ericsson’s

innovative IMS-based web development

platform which allows any connected device to

be accessed from an existing mobile number.

AT&T’s Global SIM Program offers a single

SIM solution designed to simplify market entry

for device manufacturers worldwide.

As the number and complexity of connected

devices accelerates operators are insisting on

standards based device verification and carrier

certification to guarantee all equipment does

what it says on the box and works first time.

The goal of the new test and verification

contract is to ensure each connected unit

complies and is compatible with regulatory and

international carrier requirements prior to

installation.

It is designed to give operators the confidence

that newly integrated equipment and

applications will behave as advertised thereby

minimising device returns, reducing customer

service calls and the number of often surprising

network alarms.

New devices and applications are expected to

perform to specifications first time and be

properly supported by networks at installation.

Explaining the benefits, Timothy Manahan,

head of consulting at Ericsson said: “Our end

goal is to help operators improve the customer

experience by providing best quality and time to

market for new devices and applications while

reducing operational complexity.”

He expects manufacturers: “…will enjoy lower

service and return costs through more rigorous

and upfront testing.”

Ericsson will leverage its global expertise to

verify and test AT&T’s global SIM devices in its

international labs.

It will work with the operator to help make

devices and networks more compatible with

each other.

Commenting on the agreement, Glenn Lurie,

president of Emerging Devices, Resale and

Partnership at AT&T said: “Ericsson’s global

market leadership makes it a true one-stop-shop

for device and application verification. The result

is additional enhancement for our customers

wherever in the world they may travel.”

The two companies subscribe to a common

vision of a networked and connected global

society and expect their collaboration to make

new launches seamless and efficient.

Furthering that shared vision, AT&T

announced at its Developer Summit that

Ericsson’s new IMS Innovation Platform, which is

now in Alpha testing, is powering the operator’s

Call Management API.

This new IMS-based web real time

development platform allows any connected

devices to become always-open communications

units, which can be reached by existing mobile

numbers.

Consumers and business users can therefore

increase the value both of their mobile services

and devices.

Developers can be more creative, either

reinventing services or creating new ones since

applications are no longer bound by the

technology platforms upon which they are built.

“Developers will take the concept of the

existing phone call, see it as a digital stream

and innovate accordingly,” said Geoff

Hollingworth, head of Business Innovation at

Ericsson America.

“Recording, transcribing, contextualising,

translating on any connected device, using

people’s existing phone number – all are just

the beginnings of possibility.”

go to www.mobileeurope.co.uk for the latest mobile news Mobile Europe | 7

Ericsson - AT&T global SIM deal l NFC focus

News

ERICSSON ANNOUNCES AT&T WINSERICSSON HAS ANNOUNCED TWO KEY TIE UPS WITH AT&T

Operators ‘focusing on the wrong things’ in NFC, says new reportIn a world where data is the ‘new oil’, telcoscould lose out if they cede control of theircustomer information to OTT players,according to a new report.

This is especially true in the growing NFCsector where telcos concentrate on thewrong things, suggests “Mobile NFC – what’sall the hype about”, a report frommanagement consultancy Arthur D Little.

Although they don’t have to changeanything about networks, instead focusing onstandardising critical systems andcollaborating, operators may miss out.

“Telcos still believe they are a key enablerjust because of the tag ‘mobile’ and seem tohave learned close to nothing from thenegative app store experience,” NicolaiSchattgen, report author and Global Head of

ADL’s M-Commerce Competence Centre, toldMobile Europe.

“Whoever manages to enable theecosystem has the opportunity to take acontrolling gatekeeper role.

“There are no opportunities for operatorsto get a slice of the transaction pie. SIMrental fees are small and not sustainable. But,there are huge NFC opportunities fromlocation-based services,” Schattgencontinued.

“Operators can leverage existing dataabout who and where subscribers are andwhat they’re buying to send very targetedadvertising. If they provide clear value,subscribers won’t turn off phones.Operators can provide a powerful, flexibletool,” he added.

Mobiles can be at the centre of a wholenew suite of valuable and flexible servicesfrom couponing, to loyalty cards, retailingand beyond.

Applying to more than payment,Schattgen believes NFC is moving intohealthcare, authentication, identity and fleetmanagement, promotion, shopping, smartcities and sharing.

The NFC market is ready to take off nowand operators can exploit the trust andphysical relationships they already have withcustomers, the report believes.

“The coming two to three years will be achallenging battlefield in which there will belots of losers and failures but it will settledown after that,” Schattgen said, addingmost of the critical standards are now set.

Page 8: EUROPE’S WIRELESS MAGAZINE MOBILE

8 | Mobile Europe

News

Mobile operators and banks must develop

new product offerings if they are to succeed in

meeting the demand of a projected one

billion mobile phone users with m-banking

experience in 2017, according to a new

report.

“There are mutually beneficial opportunities

to collaborate and both players must develop

new product offerings which are secure, fast

and easy to use,” said Nitin Bhas, report

author and senior analyst at Juniper Research.

Specifically, Bhas believes the two players

need to create more interoperable ecosystems

and explore and integrate common

functionalities.

“Mobile banking and payments are merging

into one platform,” explained Bhas.

“The key for banks and operators is to

collaborate, increase the scope of service

offerings by launching VAS to decrease churn

and attract new customers.”

The report found that there are two

different mobile banking models: one is

operator led, where telcos sell comprehensive

financial services and support virtual accounts

over their own networks with banks playing

almost no part in daily account management.

The other is where the two sides create joint

ventures to increase the scope of service

offerings and leverage each other’s expertise.

“JVs between banks and operators are the

best models for operators, especially in

developing markets,” said Bhas.

“They can leverage resources and

knowledge, exploit brand recognition and

their existing consumer bases to mutual

advantage.”

Unsurprisingly, in the developed economies

of Western Europe uptake is highest among

the youth sector where people organise their

lives around mobile devices, the report found.

Said Bhas: “Banks should be wary about

limiting access to the internet by allowing

users to do everything via their mobiles and

need to convince customers that security is

equal to that of other systems.”

Juniper expects apps to dominate in

developed markets – already banks are seeing

increasing numbers of people using them for

access each month.

The potential is clear.

One billion people globally will have used

mobile devices for banking information

purposes by 2017 compared to 590 million

by end 2013, according to the report.

Around half of all mobile subscribers are

“unbanked” currently with limited access to

traditional financial services.

Further, the overall number of people using

mobile devices for banking accounts for over

15 percent of the total mobile subscriber

base.

MNOS MUST DEVELOPM-BANKING PRODUCTS

M-Banking product demand rising l Nokia investment l GSMA privacy framework

Nokia has announced it is committing€185 million to its venture capital armNokia Growth Partners.

The money will be used to launch thefirm’s third fund, which invests in highpotential businesses within the mobileecosystem around the world.

"Our ongoing commitment to NokiaGrowth Partners reinforces Nokia's supportfor a vibrant mobile ecosystem and ourdetermination to collaborate with industryinnovators to build great mobile products,"commented Nokia’s EVP and CFO TimoIhamuotila.

NGP was founded in 2005 and offersindustry expertise, capital and networkingto entrepreneurs looking to builddisruptive, industry-changing companiesand take them to the global market.

Managing partner John Gardner said thefirm had, in the last 12 months, realizedseveral successful exits, including IPOs ofMorpho and Inside Secure as well as salesof Swype, Summit Microelectronics andNetmagic.

Nokia commits millionsto venture capital arm

GSMA URGES EU MOBILE INDUSTRY TO ADOPT NEW PRIVACY FRAMEWORKThe GSMA has reinforced its commitment toprotecting the privacy of mobile app usersby introducing its new AccountabilityFramework.

The industry body said it hopes theframework will be adopted by all players inthe mobile ecosystem.

Eight major European operators arealready implementing GSMA Guidelines thathold them directly accountable for securingthe privacy of all customers using their own-brand mobile applications.

The Accountability Framework adds teethto the Guidelines introduced in 2012.

The core elements of the Frameworkinclude: organisational commitment bysenior managers to ensure Guidelines areimplemented consistently throughout thecompany; internal programme controls toinform employees on how to implementpolicies and for customers to report privacy-related complaints and incidents;enforcement for noncompliantorganisations – continuous non-complianceor serious breaches will lead to appropriatesanctions.

The Accountability Framework is in directresponse to calls for greater responsibility

and accountability in app. privacy explainedTom Phillips, chief government andregulatory affairs officer, GSMA.

“If adopted across the mobile ecosystems,the Guidelines and Framework would helpensure consistent and comprehensive levelsof protection for consumers across multipleplatforms.”

The aim of both initiatives is toincorporate privacy protection into themobile apps design and developmentprocesses and address growing user concernabout personal data on social networkingsites and cloud services.

Page 9: EUROPE’S WIRELESS MAGAZINE MOBILE

go to www.mobileeurope.co.uk for the latest mobile news Mobile Europe | 9

News

Telefónica Digital and Bango have announced

they are to create a direct-to-bill payment

platform for mobile app stores.

The partnership will combine Bango’s

frictionless payment experience with

Telefónica’s BlueVia Payment APIs, meaning

over 314 million chargeable customers

worldwide will become connected to the Bango

Payments Platform.

This single, common platform will support

operator billing and other payment methods,

negating the need for customers to enter

personal information or leave the payment

session.

The two companies said a key goal of the

partnership is to accelerate the availability of a

standardized and open payment platform for all

app stores and content providers and to

dramatically improve the customer experience.

Further, the platform aims to generate higher

payment conversion rates, especially from WiFi-

connected and other “off-network” devices.

“At the heart of every great service is first

class customer experience and both Bango and

BlueVia share the vision that mobile payments

must be seamless and low friction for the

customer,” commented Jose Valles, head of

BlueVia at Telefónica Digital.

“Through this partnership, we are delivering

a mobile billing ecosystem that empowers the

app store and content owners to achieve mass

scale in their business through global reach and

a payment method far broader than credit

cards.”

Telefónica is rolling out direct-to-bill

capabilities in its operating businesses and

earlier this year announced global, framework

agreements with Facebook, Google, Microsoft

and RIM.

The Bango platform automates all settlement

processes, including tax reconciliation, local

currency support and provides analytics and

reporting, which the companies said would

expand the attractiveness of operator billing to

third parties.

“We will standardize on BlueVia to connect

with Telefónica’s 314 million subscribers around

the world and look forward to welcoming other

operators who join this initiative, as Telenor has

done,” added Bango CEO Ray Anderson.

M-PAYMENT SYSTEM BYTELEFÓNICA & BANGO

Telefónica payment platform l Wikipedia Zero l Open APIs

Vimpelcom to offer free WikipediaVimpelcom has announced a new partnership

with the Wikimedia Foundation, operator ofWikipedia, to offer its mobile customers freeaccess to the web-based encyclopedia.

The Netherlands-based operator hasaround 212 million mobile subscribers, mostlyin Russia.

It will offer the service thanks to WikipediaZero, an initiative of the WikimediaFoundation that enables mobile access, free ofdata charges, to Wikipedia in developingcountries.

Wikipedia Zero will be rolled out inVimpelCom operations across the globestarting this year, focusing on emergingmarkets in Eastern Europe, Asia and Africa.

"The world’s sixth largesttelecommunications company and fifth largestwebsite globally are coming together to offerour customers a better mobile experience and

greater access to free knowledge, particularly

in emerging markets,” commented MikhailGerchuk, VimpelCom chief commercial andstrategy officer.

“This is a win-win partnership that helps usto promote the mobile internet to ourcustomers while contributing to Wikipedia’smission to bring free access to the entireworld's knowledge.”

Both partners said they expected to jointlydevelop additional Wikimedia services totarget emerging markets in the future.

The deal echoes one made by Telenor lastMarch.

According to researchers at comScore,Wikipedia and the other projects operated bythe Wikimedia Foundation receive more than483 million unique visitors per month, makingthem the fifth-most popular web propertyworldwide.

OPERATORS MUSTOPEN APIS TO BENEFITFROM RISE IN MOBILECOUPONSThe rising popularity of discount couponswill be boosted by the ability to redeemthem using mobile phones or tablets.

A new report from Juniper Research –‘Mobile Coupons – The Smart Way to Shop’- estimates growth will double last year’sfigures reaching 10 billion coupons this year.

Redeeming coupons via mobile devices ismore successful than traditional printed orPC coupons – 10 percent of mobile couponsare redeemed compared to one per cent orless of more traditional coupons.

Tied to the growth in mobile advertising,mobile coupons are a value add for MNOs:Facebook results show Q4 2012 revenuesfrom mobile advertising accounted for 23percent of total advertising revenuescompared to 14 percent in Q3 – significantgrowth considering it launched mobile adslast Spring.

“Social couponing is becoming popular,”Windsor Holden, Juniper research directorand report author explained to MobileEurope.

“Operators can monetise big data and,once refined, offer it to advertisers andmarketing companies for targeted ads.”

MNOs must find a role in the mobilewallet market,” Holden continued.“Coupons are pushing adoption - operatorsneed to open APIs to win a role in the widerm-payment market.”

Offering something of a lifeline toincreasingly endangered high streetretailers, Juniper suggests outlets supportingmobile delivery channels will drive retailfootfall, enhance the relationship withconsumers and reduce churn.

“While we’ve heard online retail is killingthe High Street, mobile offers a means ofengaging with the consumer at every pointin the retail lifecycle, from product discoveryto product purchase,” Holden adds.

By refining, tailoring and personalisingoffers to individual habits, mobile couponsgive retailers additional opportunities tocreate more productive relationships.

Page 10: EUROPE’S WIRELESS MAGAZINE MOBILE

10 | Mobile Europe

News

UK-based mobile operator O2 has

partnered with Mach to launch direct

operator billing (DOB) on its new Charge

to Mobile (CM) platform.

Integrated into the O2 CM platform,

Mach’s Direct Billing Gateway aims to

reduce billing barriers for trusted content

partners and merchants, cutting drop rates

and increasing conversion rates.

Further, streamlining billing and

introducing real time processing will make

it easier for O2’s content owners to

monetise and sell apps, improve security,

reduce revenue leakage and improve

customers’ experience, according to the

vendor.

Retailers and app stores, meanwhile, can

access the flexible pricing, real-time

charging, debiting and crediting plus direct

refund capabilities on O2’s UK network.

The news follows the announcement last

September that Vodafone, Everything

Everywhere and Three had purchased the

Mach system.

Michael De Jongh, global head of sales,

Mach commented: “We provide the glue

that unites application stores, content

providers and merchants with operators

and simplifies the apps ecosystem.

“To maximise revenues, app stores and

merchants must make the billing process as

simple as possible.

“The more complicated the payment

process is for consumers the less inclined

they are to see purchases through. DOB is

seen as an increasingly vital part of

growing the apps market.”

DOB authorisation, purchasing and

refunds become a one-click affair. It’s

easier to buy apps regardless of the

network, contract type or payment

method.

Danny Barclay, head Interactive sales O2

said the new platform will help open up

the apps economy for on-line services

while simultaneously supporting a healthy

ecosystem with competitive revenue splits

for partners.

Mobile apps are a promising new

revenue stream: Mach quotes Gartner

statistics showing global app store

revenues are estimated to rise from $5.2

billion in 2010 to $58 billion in 2014.

DOB may convert mobile operators into

true m-commerce payment service

providers, able to win market share from

major credit card brands and other

dominant payment systems, whilst

supporting flexible pricing for developers.

O2 JOINS REST OF UK MNOS ONMACH’S NEW BILLING SYSTEM

O2 joins Mach billing system l MLL to build hetnets on 4G

Several surprise companies are bidding forspectrum in the UK’s long awaited 4G LTEauctions – one of which is little knownmanaged services provider MLL Telecom.

The company specializes in designing,building and managing bespoke mobilenetworks and infrastructure for Britishoperators as well as public and privateenterprises.

Its goal in bidding for spectrum is tocomplement existing its existing 32 and40Gbit spectrum which it uses to buildwireless networks.

MLL now wants to expand its capabilitiesand, by offering enhanced services, “helpmake its carrier customers more successful”.

Ofcom prevents detailed discussion ofplans, bidding methodology or commentabout other operators but MLL’s aim, CTOPeter Jennings explained to Mobile Europe,is to use new spectrum to build hetnets.

“We are not looking to launchcompetitive networks. We will useadditional spectrum to build theinfrastructure which enables operators toenhance services, do their job most

efficiently and to help reduce their opex.”Jennings suggested the biggest challenge

going forward is for operators to have thenecessary capacity to handle data demand.

Delivering more capacity most costeffectively he believes depends on rollingout small cells, taking them closer to usersand building hetnets.

“We are experts in delivering morecapacity cost effectively. A key challenge liesin linking cells, for which wireless is ideal.For us, getting more spectrum will open upa new raft of options,” continued Jennings.

MLL TELECOM CTO WANTS TO BUILD HETNETS IF IT WINS 4G LTE SPECTRUM

Page 11: EUROPE’S WIRELESS MAGAZINE MOBILE

go to www.mobileeurope.co.uk for the latest mobile news Mobile Europe | 11

Claiming a first, Orange is extending

interoperable high-definition (HD) voice services

to international and roaming calls.

HD voice is accessible in several European

countries but Orange now supports

international high-definition HD voice calls

between two operators on fixed and/or any

mobile network.

Orange is making HD voice available

wholesale for all operators using the Group’s

international voice hub.

“HD voice has become a must-have service

for operators and service providers that will

enable them to increase their revenues and

offer their customers significantly improved

quality of service,” claimed Alexandre Pébereau,

EVP, International Carriers, Orange.

The France-based operator manages the

complexity of routing HD voice traffic across

multiple networks for third party carriers and

service providers using a single IP

interconnection point and full IP routing.

End-to-end HD voice is based on AMR-WB

and G722 protocols and is compatible with

fixed and mobile networks.

Stephen Sale, principal analyst Analysys

Mason, told Mobile Europe that by allowing

international HD traffic to interconnect,

Orange’s new service is a key enabler to making

operator services more competitive.

“HD voice can differentiate the services of

one network operator or services on a new

network against previous generations

(eg.VoLTE), or operator-provided services from

over-the-top services like Skype,” he said.

“It is in international calls that operators have

been worst hit. Widespread support in IP

exchanges is required - operators need to

interconnect HD voice ‘islands’. Orange’s new

service is a major move forward in this regard.

“Operators still have some way to go in

countering the disruptions from OS and

application providers. HD voice is just one of

the changes operators need to make to their

portfolios," he added.

A GSMA survey suggests approximately 40

percent of users would change calling

behaviour making longer and/or more calls if

HD quality is guaranteed.

However, Ovum analyst Jeremy Green told

Mobile Europe that there are various obstacles

across networks and international boundaries

some of which are reduced by standards.

“It is very difficult to add value to voice

generally,” he commented.

“HD voice is a pleasant surprise supporting

remarkable quality but it is unlikely to happen

very often.”

Developing markets battleground l Orange pushes HD voice services

ORANGE AIMS TO MAKE HD VOICE AWORLDWIDE REALITY

News

New Pyramid Research forecasts globalmobile phone subscriptions will reachseven billion by December this year –representing 100 percent penetration.

Most growth will be in Africa and theMiddle East.

Given the stagnation, intensecompetition, disruptive business modelsand consumer choice characterising mostdeveloped markets, Pyramid anticipatestelecom service revenue growth indeveloping markets will overtake that indeveloped countries by a factor of 5:1.

Around 90 percent of the two billionsubscribers coming online in the next fiveyears will reside in emerging markets.

For the first time, mobile servicerevenues in these regions will be largerthan those in developed markets in 2015.

In comments to Mobile Europe, anOrange spokesperson reinforced the pointanticipting significant growth in the 20African and Middle East countries where it

has approximately 80 million customers.Orange aims to increase revenues in

developing markets from the current €3.7billion to €7 billion by 2015.

Its revenues in France, its domestic andbiggest market, are €22 billion now; inPoland €3.6 billion and €3.9 billion inSpain.

ABI Research statistics show base stationexpenditures in Asia Pacific alone in Q32012 were $7.6 billion (double the previousyear), representing over half the totalmarket and four times that in WesternEurope or North America.

In comparison, North American spendgrew 27 percent year-on-year in Q3 2012.

The total wireless infrastructureequipment market continued a downwardtrend in Q3 2012 reaching $15.4 billion – a3.1 percent decrease from Q2 and 18.9percent down on the same period in 2011.

Pyramid believes that while developingcountries are comparatively slow in

allocating 4G spectrum, when they doaward licences, they will be in a goodposition to complete the processsuccessfully having learned from others’experiences.

Relatively rich emerging market carrierswill continue to exploit the economicclimate to acquire European assets.

Despite stagnant European markets thereare still opportunities especially in dataservices.

ABI Research suggests an enterpriseMVNO targeting “specific industry verticalsand offering a range of VAS includingtelecom expense, mobile device andapplication development management,combined with overall managementservices, could yield attractive margins,contributing around 25 percent of revenuesper employee."

This rises to a 34 percent high if M2Mconnections and management are added,the firm added.

DEVELOPING MARKETS TO BE BATTLEGROUND FOR MOBILE REVENUES

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12 | Mobile Europe

News

Operators and networks are commonly blamed

for poor performance and coverage but a new

report from Strand Consult estimates around 70

percent of bad coverage is due to modern

smartphones and their usage.

“Smartphone penetration is increasing and

operators investing heavily in network

infrastructure but people getting worse

coverage,” John Strand, CEO, Strand Consult

told Mobile Europe.

“Smartphones don’t perform as well as older

feature phones. Operators may have to double

mast numbers and increase investment in areas

where many bad phones are connected.”

Quoting an independent study in Denmark,

conducted by Aalborg University’s Professor

Gert Frolund Pedersen, Strand’s report

concludes phone manufacturers are evading

responsibility by neither informing users about

the affect phones have nor optimising them for

networks.

The Danish study measured the performance

between phones’ antenna and networks,

evaluating how nine of the most popular

phones affect users’ experience in GSM 900

and 1800 and UMTS 900 and 2100 networks.

Depending on models and network

frequencies, it found major differences between

phones and coverage quality.

Older phones perform better than newer

generations in lower frequencies.

Buying the latest generation of popular

phones increases the likelihood of bad network

coverage.

Coverage can be improved if users choose

phones optimised for their carrier’s network but

such information is rarely available.

Handset manufacturers should disclose

phone strengths and weaknesses, but said

John Strand: “There is no transparency –

many phone manufacturers gag operators so

they can’t inform users. Consumers are in a

bad position now.”

The report, “How Mobile Operators can

reduce the cost of mobile masts and improve

mast regulation”, calls for uniform global

disclosure addressing relevant factors of phone

coverage quality.

It states: “Phones are launched rapidly and

from many manufacturers making it

challenging for independent testing, not to

mention the testing handset manufacturers fail

to do themselves.

“Fierce competition means phones launch

with unfinished product development - errors

are corrected through software updates after

phone purchase - which reduces development

costs but puts the onus of product quality onto

operators and consumers.

“Optimising phones for networks takes a

back seat to getting phones to market;

manufacturers do little to solve these

challenges.”

Perennial debates about mobile coverage

must include the role of phones and

manufacturers take more responsibility, there

should be more transparency the report

concludes.

Consumers ultimately need more information

on which to base purchases.

Smartphones cause bad coverage l FT-Orange, SFR 4G roll-outs

SMARTPHONES TO BLAME FOR BADCOVERAGE, NEW STUDY CLAIMS

FT-ORANGE AND SFR ANNOUNCE 4G LTE ROLL OUTSFrance Telecom-Orange and rival SFR haveannounced new 4G LTE roll outs in Paris.

SFR launched its commercial service in LaDéfense area of the French capital, whichfollows the roll out of 4G LTE services in Lyonlast December.

The operator added that it was deploying

Nokia Siemens Networks' Liquid Radiosolution to help with its roll out.

FT-O, meanwhile, said it plans to extend its4G LTE network coverage to the Paris Operaregion in April – the first stage of plans toexpand coverage across the whole of Parisby the end of the year.

A further 15 cities are also set to receive

FT-O's 4G LTE services this spring, includingBordeaux, La Rochelle, Chartres, Orleans,Dunkirk, Nancy, Metz, Clermont-Ferrand,Grenoble and Annecy.

FT-O launched its first 4G LTE network inMarseille in June 2012, as well as instalmentsin Lyon, Nantes and Lille in November of lastyear.

To coincide with the expansion of itsFrench 4G network, FT-Orange hasconfirmed it will offer customers a range of4G/H+ devices, including severalsmartphones, a tablet and a 4G/H+ pocketmodem.

FT-Orange said these devices will enablecustomers to take full advantage of its 4Gcapabilities, with the firm offering them onthe new Origami, Open and Let's Go 4G/H+contracts.

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go to www.mobileeurope.co.uk for the latest mobile news Mobile Europe | 13

FT-Orange, EE’s parent with Deutsche

Telekom, told Mobile Europe there is no

prospect of selling the UK joint venture to

AT&T and sees no credibility in articles

suggesting this.

Numerous recent articles in national and

trade publications discuss the possibility of

AT&T buying either EE or Dutch operator KPN.

Both FT-O and DT are happy with the way

the company is performing, with its

management and have consistently stated that

view.

AT&T made no comment.

Buying a retail operator, let alone a European

mobile one, could bring more problems than

assets for the American giant.

It would be a significant culture shock for

AT&T requiring negotiations with EU regulators

determined to stimulate competition; operating

in unfamiliar fiercely competitive and price

sensitive markets; and handling the

complexities of European mobile networks

which largely operate in different frequencies to

those in the US.

All a far cry from its relatively cosy US mobile

market where telcos hardly have to fight to

attract or keep customers.

Ovum analyst Steven Hartley told Mobile

Europe that a more likely move for the

American firm would be to buy a wholesale,

backbone or global provider.

That would be a better fit with AT&T’s

strategy of supplying global enterprise

communications for US based corporations.

Hartley suggested: “It would be more logical

for EE to go to an IPO especially as it’s being re-

branded as an independent company. T-Mobile

and Orange joined forces in the UK because

things were not going their way in what is a

highly competitive and saturated market.”

DT spokesperson Andreas Fuchs said both

itself and FT-O are “very confident in the

management strategy which aims to strengthen

EE’s leading position in the UK, leverage on the

largest 3G network and first LTE network roll-

out, further progress the integration of T-Mobile

and Orange and increase the profitability of this

business in the coming years.”

He added: “In that respect, DT and FT-O

have decided to conduct a strategic review of

the asset and consider all options which could

include an IPO.”

An FT-O spokesperson expressed a similar

view adding it is very happy with the EE

business, which is going very well.

In the event of an IPO, both parents would

likely retain a significant stake in EE.

FT-ORANGE QUASHES RUMOURS OFEE SALE TO AT&T

EE sale to AT&T just rumours l Emergency mobile alert systems

News

European mobile operators are doingtheir bit to mitigate the effects of naturaldisasters or emergencies by making iteasier to alert people of possible dangerand find them if they are in trouble.

In something of a ‘big brother’solution, European governments are

asking mobile operators to deploy theinfrastructure and technical solutionsable to broadcast simple mobilemessages to all their subscribers therebyimproving emergency responses andpublic warning systems.

In conversation with Mobile Europe,Intersec CEO Yann Chevalier said:“European governments are increasinglymandating public alerting systems andpaying mobile operators to supportthem. People need and want reassuranceand to understand what is happeningaround them – it’s natural to receivemobile messages.

“Among the major challenges is notonly determining which channel to use -SMS is familiar but could be slower inreaching the entire subscriber population

than less well known mobile broadcastchannels - but transmitting volumes ofmessages to large numbers of people.”

Governments want sustainable,interoperable systems that reacheveryone, according to the CEO.

“France, Germany and Holland are

running such systems already. The bigquestion is who pays for it – mobileoperators will only run altering systems ifgovernment mandate and pay for them,”he added.

Working with Brussels based NGO theEuropean Emergency Number Association(EENA), Intersec is developing thenecessary and efficient alerting systems.

It has combined real time locationintelligence systems with geo-locationcapabilities thereby allowinggovernments and emergency services tocollect network location data from theentire subscriber base.

As a result they can identify wherepeople are going and learn something ofhow and where they are moving.Advanced geo-fencing capabilities

identify and track people in real time asthey move through or enter a dangerzone.

EENA executive director Gary Machadosaid: “With the development of newtechnologies, mobile alerting solutionsare one of the logical next steps incommunicating effectively with a largenumber of people expeditiously.”

Using mobile broadcast technology orubiquitous SMS, appropriate messagescan be sent to large numbers of peoplein seconds regardless of the network towhich they are connected.

EMERGENCY MOBILE ALERTING SYSTEMS GAIN MOMENTUM

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Sponsored Interview

14 | Mobile Europe

THE RISE OF THE SMART GRIDJuliet Shavit of SmartMark Communications talks about the rise of smart energyand the opportunities that lie ahead for mobile operators

ecently named the “Smart Grid Queen” by

European Communications, Juliet Shavit,

President and CEO, sat down with Mobile

Europe at the start of Mobile World Congress to talk

about the future of smart grid, smart energy, and

the bridge between communications and utilities.

MOBILE EUROPE (ME): We’ve been hearingyou talk about opportunities for collaborationand convergence between the communicationsand utilities industry for some time, what’s new?

JULIET SHAVIT (JS): I have been on a pedestal

calling for increased collaboration and

communications between the communications and

utilities sectors for some time, and I get tremendous

satisfaction when I see the realization of that vision

through smart grid initiatives globally. But I think

what is truly different in my vision of this

collaboration is the greater opportunity now

emerging from smart energy and not just smart grid.

I remember hosting a workshop at a telecom event a

few years back with Time Warner Cable and

wondering what the two of us had in common. I

now understand much greater the opportunities for

service and solutions providers in smart home, smart

energy management and the overall smart energy

lifestyle.

ME: Can you expand on that?

JS: These are exciting times. Throughout history we

have seen major transformations in industry. We

have all witnessed the transformation of the

communications sector, and the impact of the

mobile phone on the consumer’s digital life. Today

we watch how the smart meter transforms not only

the relationship between utility and consumer, but

the consumer with energy management. The smart

meter is the gateway for home area networks, and

ushers in a new era of smart energy management

applications and solutions. And of course the

application of M2M in the home cannot be

overlooked.

ME: Why is this important? Are we talking aboutsustainability and being green?

JS: Well, that’s certainly part of that, but it is not

what’s driving the billion dollar investments in

energy technologies.

The electrical infrastructure that we know and

use daily has not been seriously upgraded in over a

century. New advancements in energy

management technologies and tools not only help

us live more efficiently and sustainably, but more

securely and more affordably. Not only are we

balancing and securing our newer, smarter

R

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Sponsored Interview

Mobile Europe | 15

electrical grid, but we now have an opportunity to

save money and impact how and what the utility

offers us. A good analogy is how the image of the

telecom service provider has changed, and what the

impact has been on things like bundled service

packages, customer self-service and provisioning, and

the customer experience. And that’s not including

the fact that utilities are most simply building large

wireless networks to support the new grid.

In addition, imagine starting to price out how

much energy big businesses use and could save

annually. Imagine what type of savings a large

enterprise can see through greener construction,

smart energy reduction and management as utilities

introduce smarter thermostats, load control devices,

and dynamic pricing options.

ME: Tell us about SmartMark Communicationsand what you do. Where does this passion stemfrom?

JS: I guess you could say my own company has seen

its own explosion around smart energy. We are a

thirteen year old company that coincidentally was

born through ties to both telecom and utilities. Our

first client was a small OSS start-up with investors in

the energy sector. When one of the investors left to

take over a utility billing company, he called me up

and asked me to help support them. I guess you

could say I grew up in telecom OSS and utility

billing, which have surprising ties today.

ME: How so?

JS: Well, telecom OSS and operational support

systems have expanded these days to include many

BSS solutions. And things like provisioning and web

services have a very strong impact on customer

experience. Similarly we have seen and continue to

see CSPs focused strongly on the quality of the

customer experience—paying strong attention to

reducing churn, increasing loyalty and long term

relationships with customers.

Utilities may not be motivated entirely for the

same reasons as CSPs to make customers happy, but

today –thanks to smart grid—utilities have their eyes

set on engaging the customer. Utilities need to

deploy many of the same technologies, services and

applications, to ensure that customers not only

accept new technologies, but use new tools and

applications available to reduce their energy use.

They also need to market to consumers in a way

they never have before.

SmartMark has a division called SmartEnergy IP

entirely focused on the utility customer

experience.

ME: Are you working with anycommunications companies to cross over andtake advantage of market opportunities inenergy?

JS: Yes, in fact I am getting more and more calls

from companies who are seeing the light – many

of them floored with the opportunities and

uncertain on how to penetrate the market.

ME: How do you help them?

JS: Mostly a blend of strategic consulting,

industry focused marketing and introductions.

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Sponsored Interview

16 | Mobile Europe

ME: Who are the clients of Smart Energy IP?

JS: We work with utilities across the world to help

develop, oversee and run customer education

programs. Because we have a strong background in

telecom, we are able to bridge the gap between

marketing strategies and investments in technology

infrastructure necessary to enable and improve the

customer experience. We also are the solutions

provider selected by the U.S. Department of Energy

to help run the U.S. DOE Smart Grid Customer

Engagement Working Group and are working with

utilities across North America to help collect best

practices in smart grid customer engagement and

develop a framework from these best practices.

The goal is to publish a model in the spring time

frame.

ME: Sounds like you’ve been busy.

JS: The company is seeing tremendous growth

and I am finding personal satisfaction in seeing

two industries I care for deeply converge and

benefit from stronger relationships. I have always

been big on cross industry collaboration, and I

believe telecom utilities convergence is prime

time. Though I really should be careful about the

word telecom; the cable MSOs are incredibly

visionary in the space and are bringing to market

more home energy bundled solutions than ever

before.

We are also working globally with government

in introducing programs to promote smart grid.

ME: So what else is on the horizon forSmartMark?

JS: We continue to support our range of clients

and help develop strategic communications

programs to make them true thought leaders in

the industry. That’s what we really do at heart.

And we continue to put on provocative events like

GridComms in London last year and the smart

Grid Customer Education Symposium in the

States, to bring diverse players in the room to talk

about relevant topics and promote collaboration.

And we continue to help utilities and energy

companies build groundbreaking new

relationships with customers based on better

communications choices and smarter customer

facing technology investments.

ABOUT SMARTMARK COMMUNICATIONSSmartMark Communications is a global leader inproviding communications solutions for a growingroster of international clients. Today the companyprovides end to end solutions for both public andprivate companies who benefit from thecompany’s strong strategic communicationsbackground and experience that spans multipleindustries, including telecommunications, utilities,financial services, energy and transportation. Tolearn more visit www.smartmarkglobal.com

SmartEnergy IP™ is leading the industry inproviding strategic communications, strategy andsolutions for utilities across the world. From thedevelopment of specialized customer educationprograms to the implementation of thoseprograms, SmartEnergy IP™ provides a wealth ofknowledge and experience to improve thecustomer experience.To learn more visitwww.smartenergy-IP.com

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MOBILE WORLDCONGRESS 2013 PREVIEWEUROPE

MOBILE

IN THIS PREVIEW

20 The GSMA’s Michael O’Hara introducesthe “new” MWC and highlights thethings you need to know

22 Mobile Europe marks your card withfive key key topics to be discussed atMWC this year

27 With Barcelona now Mobile WorldCapital, Jesús Moreno Pinar explainswhat this all means for the industryand the city

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20 | Mobile Europe

hile Mobile World Congress is

as an essential part of the

calendar for the mobile

industry as Christmas, this year delegates

can expect a ‘new’ Mobile World

Congress, still in the familiar city of BCN –

as the locals call it, not Barca, that's the

football team – but in a new venue about

2km down the road.

The change of venue is set to offer

delegates a much better experience and is

allowing the GSMA and its partners to

really up the ante in terms of the show’s

scope and impact.

“The biggest change is going to be

space,” explains Michael O’Hara, Chief

Marketing Officer at the GSMA. “In 2012

we had some 70,000m2 of exhibition,

this new venue is already offering, in

2013, 94,000m2, with around 100 extra

companies exhibiting, in a purpose built

venue that will make for better

conferencing and enhanced capacity all

round.”

As part of this enhanced capacity, the

new venue offers some less tangible, but

equally important new developments.

There will be more restaurants, better

wifi, a bigger media village and, to help

re-create the aspects of the old venue

that people have come to know and

love, the GSMA has “invested heavily in

green spaces and enhanced networking

areas, to bring the best of the old out to

the new site,” says O’Hara.

On the ground this is going to mean

much more of what makes MWC such a

great and all encompassing mobile event.

It is also going to offer some great new

experiences that really put the best of

what mobile can do in the increasingly

connected world on show.

The NFC Experience is perhaps the

biggest stand-out of the new venue. Here

visitors will be able to see all the latest

contactless technology in action and try it

out. “There will be smart posters and

tags, as well as all the latest technology in

NFC,” says O’Hara. “There will also be

some restaurants and bars – both on site

and in the city – that are going to be

taking NFC payments and, for those with

NFC phones, there is the ability to have

their badges on mobile and expedite

their entry and exit to and from the

show.”

The new site also offers the space to

extend the GSMA’s Connected House

concept from previous years to offer, in

the new Hall 3, a Connected City.

“This will feature a car show room, a

department store, an electrical store, a

hotel, an office, a town hall and a café

that allow visitors to see how connected

technology is set to revolutionise how we

live,” says O’Hara.

This will give people the space to see

how technology – provided by GSMA

partners AT&T, KT, Telenor, Vodafone

and a host of other companies – works in

the real world and what our digital future

looks like.

While NFC and the connected world

are clear themes for this year’s MWC, the

event is also covering everything from

LTE and network deployment to the

cloud, to big data and on to the role of

mobile in vertical sectors, especially

transport and health, both key subjects

for the Mobile World Capital project.

But O’Hara is keen to point out that

the show is also a major opportunity for

two great “learnings”: strategies for the

developed and developing markets – and

what they can learn from one another –

and bringing in government and

ministerial policy wonks to help ensure

the development and sale of spectrum to

continue the development of mobile

broadband.

“We make sure that developed telco

markets can debate and discuss strategy,

as well as allowing the same for

developing markets, so that everyone

gets the best out of the show,” says

O’Hara. “Q-Tel, AT&T and all the major

operators will be part of this, as well

those from developing markets in Africa

and Asia and elsewhere. China Mobile is

also there, straddling the two.”

O’Hara adds that 140 ministerial

delegations will also be attending

MWC13, with aim, under the GSMA’s

auspices, to bring them together with the

top CEOs of telcos and other interested

parties to tackle spectrum needs and

make sure the mobile broadband can

develop at the pace and scope needed to

make all that MWC13 is showcasing a

reality.

“We are going to see a lot of device

launches at the show,” stresses O’Hara.

“Which for anyone into mobile is always

exciting.”

W

MOBILE WORLD CONGRESS 2013 PREVIEW

INTRODUCING THE ‘NEW’ MWC: MORE SPACE, TIME AND… FOOD

MWC HAS MOVED TO A NEW VENUE IN BARCELONA. PAUL SKELDON TALKEDTO THE GSMA’S MICHAEL O'HARA ABOUT WHAT YOU CAN EXPECT

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NEW YEAR, SAME OLD THREAT FROMNEW ENTRANTS

The move towards OTT will show no

sign of abating this year, with the number

of companies touting their services to the

mobile community increasing.

But on the back of the launch of joyn at

last year’s show, there is a major fight

back from operators. It makes sense – why

lose all that SMS traffic if they can use it

to help people update social networks

when WiFi lets them down or there is no

3G?

But as fast as operators are catching up

with the OTT boom, they are being

threatened by non-MNOs looking to take

even more voice and messaging traffic

from them this year.

The main threat for 2013 is Facebook.

“Facebook, under increasing pressure

from its shareholders and with its growing

base of mobile users – now more than

half of all users – will make moves to

monetize revenue from mobile beyond

advertising,” says John Strand, founder

and lead analyst at Strand Consult.

“Keep in mind that most of Facebook’s

ad revenue comes from North America,

but its user base is growing in Africa, Asia

and Latin American, where Facebook’s

mobile ads for Americans are not relevant.

We expect the world’s largest

communication platform to look more

seriously at monetizing opportunities in

mobile products and services, both in

acquisition of mobile technology firms

and with business models including VoIP,

MVNO and more.”

In early January, Facebook began

testing free calling over WiFi and cellular

data for all Messenger for iPhone users in

Canada, and said that a US launch could

be coming soon.

The tests appear to have gone well – a

new free calling button has appeared in

the app in Canada. Facebook has

confirmed that the feature began rolling

out to US users this month, and requires

no update through the App Store. To

make a call to another Messenger for

iPhone user, all you need to do is open a

conversation with that person, tap the "i"

button in the top-right corner, and tap

Free Call.

“If you live in the US, you can now call

other Facebook users for free over WiFi or

using your phone's data connection”, said

a Facebook spokesperson.

A trip round MWC13, in its shiny new

venue, should be undertaken with an eye

on who else is muscling in. Skype, like

Facebook, is a natural threat, but one that

has been kept at bay thus far, while the

likes of WhatsApp, and countless

proprietary messaging technologies

provide operators with a challenge.

And its not just telecoms services that

will eat into operators bandwidth. “While

operators have absorbed shocks from VoIP

to their long distance revenues, new

internet players such as Netflix now

challenge their bandwidth, taking first

place as the traffic hog in many

countries,” says Strand.

To add insult to injury, this type of new

service not only erodes voice calling for

operators, but pumps a load more data

onto their networks, prompting Victor

22 | Mobile Europe

MOBILE WORLD CONGRESS 2013 PREVIEW

Is Mark Zuckerberg planning an MVNO this year?

FIVE KEY THEMES FOR MWC 2013PAUL SKELDON HAS PICKED OUT FIVE KEY THEMES THAT SHOULD BEFRONT AND CENTRE OF MOBILE WORLD CONGRESS THIS YEAR

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Mobile Europe | 23

Basta, managing director of Magister

Advisors, M&A advisors to the technology

industry, to call MNOs “the digital drug

mules of the 21st century”.

AN EVER EXPANDING ARRAY OFDEVICES AND OS

According to GSMA Marketing Chief

Michael O’Hara, one of the highlights of

this year’s MWC will be the launch of a

range of new devices and operating

systems aimed at the developed and,

perhaps more importantly, the developing

markets of Africa, Latin America, Asia and

China.

The MEF’s Andrew Bud likens it to the

development of a “third mobile

ecosystem”, with the likes of Windows

Phone 8, BlackBerry 10 and Firefox OS

taking centre stage at the show.

The show is also going to see the arrival

of devices targeting new demographics,

such as Docomo’s smartphone developed

for the burgeoning pre-teen (9 to 12 year

old) market of m-commerce users in

training.

The rationale behind the device – made

by Sharp initially just for the Japanese

market – is that in wealthier markets the

mainstream of those aged roughly 16 to

60 years old is so highly penetrated that it

makes sense to look at demographics at

either end of the scale.

Docomo has demographic handset

form. Last summer, it launched a Fujitsu-

built smartphone targeted at older users.

But while many handset makers and

telcos are looking to exploit as yet

untapped demographics, and with

smartphone sales skyrocketing – 671

million smartphones shipped worldwide in

2012, according to Juniper Research – the

real big developments in devices,

particularly around services, apps,

payments and commerce, is set to be

played out on tablets.

According to the Pew Research Centre

in the US, 25 percent of US adults own a

tablet computer of one form or another

and in the run up to Christmas 2012, 59

percent of mobile retails sales in the UK

and US were made using an iPad, says

Affiliate Window.

Tablets offer their own set of challenges

to mobile networks and developers.

Consumers are still ‘deciding’ how they

are going to use them, with many already

opting for them as an at-home mobile

device for shopping and surfing in front of

the TV – so called “couch commerce”.

This year’s MWC will offer some insight

into how this can be exploited.

But while much attention is focussed on

rapidly expanding tablet use, it is

smartphones that are still consuming the

most data – and are set to be given a run

for their money by LTE dongles – believes

Arieso, a provider of intelligent, location

aware solutions. According to its research,

smartphone users are consistently

consuming more mobile data than tablet

users. Out of the top 10 most voracious

devices (excluding dongles) six were

smartphones, three tablets and one a

“phablet”. Tablet users placed 4th, 8th

and 9th.

“This is pretty counterintuitive, but it

seems the capabilities of the newest

smartphones – not tablets - are

unleashing even greater user demand.

Once you move away from raw

consumption statistics, the most

remarkable finding is the way in which

people use smartphones and tablets,” says

Arieso CTO Dr Michael Flanagan.

“Regardless of device type and

operating system, there is very little

variation in the usage ‘signature’ between

smartphone users and between tablet

users. From this we discover that voice-

capable phablets – like the Samsung

Galaxy Note II - are currently being used

like smartphones, not tablets. If you can

use it to make a phone call, the ‘phablet’

won’t be much like a tablet at all.”

DO TELCOS HAVE AN ENTERPRISE APPFOR THAT?

The enterprise is, considering its

potential worth for operators and

developers, much under exposed to the

best of mobile technology. Recent

research by Vanson Bourne found that

organisations are not moving fast enough

to develop and deploy mobile apps for

staff, customers and partners, missing out

on business benefits and creating an “app

gap”.

Out of the 600 organisations surveyed,

95 percent said that their employees use

personal mobile devices for work,

however, only 29 percent of organisations

have begun a formal mobility

programme, despite 92 percent of

MOBILE WORLD CONGRESS 2013 PREVIEW

The real big developmentsin devices are set to be playedout on tablets

Apple's iPad goes fromstrength to strength

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MOBILE WORLD CONGRESS 2013 PREVIEW

organisations saying they believe that

adopting mobile apps will not only give

them a competitive advantage, but that

not doing so will put them at a

disadvantage.

The main roadblock to organisations’

use of apps to interact with their

employees and customers includes

concerns around security – in fact, 54

percent of organisations surveyed cited

security concerns as the main barrier to

increased enterprise app adoption.

But that is all set to change. “This year,

we’ll increasingly see enterprise apps take

centre stage as technological innovations

such as cloud computing, BYOD, and the

rising use of business tablet devices

become increasingly commonplace across

workplaces globally,” says Ian Schenkel,

CEO and co-founder of enterprise app

developer EuroSmartz.

“While companies know that they need

to innovate to keep up with these new

business/IT trends, this gives rise to

companies’ concerns around security.

Fortunately, the enterprise app is a means

through which companies are able to

control the manner in which employees

access information on their mobile

devices, maximising security.”

For example, enterprise apps can be

tethered to a location/network for security

and/or can exist solely in the cloud, not

permitting downloads to a device so that

documents cannot be accessed in the

event of a device theft. Securing a balance

between innovation and security is crucial,

especially because today, having an app

presence is what having a web presence

was for companies 10 years ago – it

shows legitimacy and a commitment to

the latest cutting-edge technology

innovations and tools. In this way, having

an app demonstrates B2B credibility and

can be a very valuable marketing tool for

any company.”

One company that is hoping to corner

the business mobile market is BlackBerry.

It has lost market share to rivals Apple and

Samsung and is now hoping that its new

BlackBerry 10 OS and new smartphones

will help the firm to gain ground.

According to Dan Wagner, CEO of

mobile payments firm mPowa, the battle

will be lost or won in how well the new

devices and operating system will engage

the business market.

“In its quest to gain a larger slice of the

consumer market, BlackBerry mustn’t lose

sight of the core business customer base

that it initially built its products around.

Business has evolved drastically since the

launch of BlackBerry’s first smartphone in

2003, and business users now want to do

more with their hand-held devices,

effectively turn them into mobile offices

with which they can do far more than

merely access their calendars and emails.

Many have jumped ship and have opted

for rival devices which have much more

compelling offerings. Blackberry needs a

dynamic platform that supports additional

services that make businesses more

efficient and mobile – if it is to hang onto

its customers.”

PARTNERS TO THE FORE AS INTERNETOF THINGS GATHERS PACE

One of the highlights of previous

Mobile World Congresses has been the

GSMA and partners Connected House.

This year they are going one better and

showcasing a Connected City, featuring a

Town Hall, department store, café and

more to show how the internet of things

is truly coming to life.

And it’s set to be a big market. A study

from Juniper Research found that the

Telematics and Consumer Electronics

sectors are rapidly becoming the two

anchor industries for the M2M market,

challenging the position of smart metering.

The report forecasts that the market for

M2M and embedded devices will reach

400 million by the end of 2017, up from a

little over 110 million at present.

One of the key areas is the connected

car, with the automotive industry starting

now to embrace mobile technology. In

fact, the head of General Motors will be

addressing conference at MWC13,

cementing how much the car industry

now sees mobile as a key part of what it

offers consumers.

This year we willincreasingly see enterprise appstake centre stage

BlackBerry is hoping its newoperating system will wooback enterprise consumers

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26 | Mobile Europe

The automotive sector is also going to

be a huge market for 4G chipsets, believes

Juniper, as they find their way into new

cars to start to offer the connectivity we

all crave.

But the issue that hangs over M2M is

that operators do not yet see the full

ARPU and RoI.

“It is clear that M2M ARPU for

operators is never going to be as high as

operators are used to from human

subscribers,” says Usman Haque of Cosm,

a platform provider for the internet of

things. “They are nevertheless nervous of

the connectivity price pressure that will

result from a horizontally segmented

market. They would, ideally, prefer to

offer – or work with partners who offer –

end-to-end M2M solutions.”

M-PAYMENTS – IS THE OPPORTUNITYGOING, GOING, GONE?

Glance through the conference

programme for MWC and you would be

forgiven for thinking that m-commerce

and m-payments were of fringe interest –

restricted mainly to NFC.

But perhaps the biggest challenge

facing the mobile industry is the use of

mobile devices to buy things. The value

of digital and physical goods bought

using mobile phones topped $200 billion

globally in 2012, according to Juniper

Research, spurred by increasing security

and decreasing user concern over

security, better devices, and user-friendly

apps and third party payment services.

But the mobile operator industry could

still miss out. NFC is increasingly unlikely

to take off as it’s too complicated;

instead, operators should be looking at

how consumers are using mobile to buy

and pay for things.

There are a raft of third party payment

solution providers, not to mention banks

and card companies already making

headway in this space. It’s already a very

competitive market, with thoughts about

who “owns the customer” now irrelevant.

Barclays PingIt, Visa Europe’s V.me and

even, potentially, Apple’s Passbook, are

all starting to gain traction among

consumers, while established payment

intermediaries such as iTunes, Amazon 1-

Click and PayPal are already gaining vast

revenues through mobile web users

shopping on apps, iStores and Amazon.

And this is the problem faced by

operators: consumers will associate these

brands with m-payments and translate

that into how they actually do in store m-

payments in the coming months.

“Operator billing will be overtaken by

other mobile payment systems in

developed markets,” warns Andrew Bud,

global chair of MEF, the trade body of

the mobile media and entertainment

industry.

Windsor Holden, research director at

the analysts Juniper Research, agrees:

“The market is still very much wide open.

While we have a number of mobile wallet

solutions now being deployed, as far as

adoption goes it is still a nascent market.

The level of awareness about the various

options is still low. What is absolutely

critical is educating the public that

phones can be used in this way, and the

winner will be the businesses who

succeed in doing this and convincing

both shoppers and vendors that it is easy

to use.”

Of course, services such as Barclays’

PingIt and other mobile wallets require

the mobile number as a proxy for bank

account details and the SIM offers pretty

much unrivalled security, but operators

have been slow to capitalise on their

unique billing relationship with

consumers.

The pitiful amount of time devoted to

m-commerce and m-payments at MWC is

an indication that this isn’t about to

change.

MOBILE WORLD CONGRESS 2013 PREVIEW

While we have a number of mobile walletsolutions deployed, the market is still nascent

M-payments services such as Barclays PingIt are gaining traction amongst consumers

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MOBILE WORLD CONGRESS 2013 PREVIEW

art of what landed Barcelona

the winning bid to host

Mobile World Congress until

2017 was its outline for realizing the

GSMA’s vision to extend the reach of the

congress through the year.

This vision included a desire to touch not

only the business to business community

serviced by the show, but also to

showcase to consumers and ‘prosumers’

the reach of mobile.

The formation of Mobile World Capital

is getting underway this year in what the

GSMA hopes will be a global initiative to

widen the development of mobile

technology, produce a connected world

and – for Spain – place Barcelona right at

the centre of mobile development.

But what is Mobile World Capital and

how will it work? It is, in reality, a

collection of ideas that aims to service the

needs of the mobile industry through a

programme of events and collaborative

programmes of development with vertical

industries, while showcasing what it can

do to the public.

“It is essentially a martrix with four

zones,” explains Jesús Moreno Pinar,

marketing & communications director of

Mobile World Capital. “Two temporary

events, one for B2B, one for consumers,

and two permanent activities, again one

for B2B and one for consumers.”

For the business community there is

already Congress, which offers an annual

opportunity to talk shop. “There will also

then be the Mobile World Hub,” says

Moreno Pinar, “which will be a

permanent base for a programme of

collaborative projects working on realizing

goals in development of m-wallets, m-

health, m-travel, content and

entertainment and community and life.”

In the consumer space, Mobile World

Capital matrix offers a mobile festival as a

one-off annual event and the mobile

world centre, which will essentially be a

permanent exhibit of hands-on

technology demos and lectures about

mobile life.

“Within these programmes, Barcelona

seeks to offer expertise and mobile

technology, mobile law, news, talent,

interoperability and clustering, which

wraps it all up,” says Moreno Pinar.

By way of example, Moreno Pinar offers

a programme in the mobile health sphere

where doctors, insurance companies and

mobile experts are working together to

create personal health folders to help

patients manage their health notes and to

help doctors improve treatment and

pharmaceutical needs and improve

patient care.

On the consumer side, the GSMA is

planning a music festival featuring top

acts and leveraging mobile social

technology to engage users both in

Barcelona, where the festival will take

place in September – “because,” says

Moreno Pinar, “unlike February and

congress, the weather is better” – to

promote the entertainment aspects of

mobile and show the world how

connected mobile can make us all.

On a more permanent basis, Barcelona

will also be home to the Mobile World

Centre, which seeks to offer a permanent

exhibition of mobile technology to

attract in pro-sumers from all vertical

industries to let them see and try out the

latest in mobile technology and to

attend lectures and conferences that run

throughout the year.

It is all a very worthy stab at

showcasing mobile to those lucky enough

to find themselves in Barcelona, but what

about the rest of the world?

“Barcelona will simply be the centre,”

says Moreno Pinar. “We will be looking at

‘sister cities’ that will also start to run their

own programmes, festivals and other

events that tie in to what is happening in

the Mobile World Capital. This way we

can develop more and make it a truly

global collaboration. This is what being ‘a

capital city’ is all about – we are the

inspiration for others.”

Commercially, Mobile World Capital is

funded by a consortium of Spain’s

national government, region government

and Barcelona City Council. The GSMA

and the Fira de Barcelona provide

logistical support, know how and venues.

“But we are looking for support from the

industry through sponsorship, but also

through less tangible support such as

donations of expertise, time, equipment

and knowledge, resources and

infrastructure worldwide,” says Moreno

Pinar.

So far the programme for 2013 is a

small start to realizing this ambitious goal

for the industry, with three m-Health

projects, one m-wallet and one mobile

social community programme already

underway and the inaugural festival

planned for September. “But it will grow

and we hope that next year there will be

much more and in the years after that

even more,” says Moreno Pinar.

And it will be global, he adds. “Spain

really needs this right now and we can’t

waste this opportunity. It is an investment

in our future as much as it is an

investment in the industry’s future.”

P

MOBILE WORLD CAPITAL INVESTING IN THE FUTURE OF THEINDUSTRY AND SPAIN BARCELONA IS NOW CONGRESS HOST CITY AND MOBILE WORLD CAPITAL. PAULSKELDON ASKS WHAT THIS MEANS FOR THE INDUSTRY AND THE TROUBLED COUNTRY

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Sponsored Interview

28 | Mobile Europe

Tektronix Communications has augmented its traditional business with new actionableintelligence solutions to establish a new business category in the telecoms space

s the services that both mobile and fixed

network operators provide become more

complex, and potential challenges of

increased loads on networks and data storms become

an ever greater threat to customer experience, the

need to keep a clear and detailed handle on the

performance of voice, data, and video services is

becoming increasingly urgent.

In today’s 4G world, the scale of electronic

communications surging down networks is becoming

mind-boggling.

Indeed, Lyn Cantor, President of US-based Tektronix

Communications, says such traffic is reaching

unparalleled levels.

Speaking as his company prepares for Mobile World

Congress 2013, Cantor told European Communications

that some of his company’s larger carrier customers

already generate between 30 and 40 billion customer

records daily: “Our forecast for these businesses is

growth over the next 12 to 24 months to 100 billion

records a day,” he adds.

That is an immense amount of data. For telcos

wanting to harness this surge, really smart and focused

data collection and analysis is required.

This is precisely why Tektronix Communications has

augmented its traditional business with new actionable

intelligence solutions to become the first full-service

Telecoms Intelligence Provider (TIP), building on its

established reputation as a market leading telecoms

network diagnostics and service assurance specialist,

and effectively establishing a new business category in

the telecoms space.

Says Cantor: “We are able to extract information

historically, and in real-time, giving an unparalleled

breadth and depth of insight across all four dimensions

of a carrier’s business, namely the subscriber’s

behaviour, the services and applications they’re

consuming, the performance of the network they’re

using and the different technology standards it

supports.”

Simply put, the company’s systems enable telcos to

see subscribers and the devices they are using; monitor

service and application use; check the network

technology being employed; and assess the

performance of networks.

But it wants to grow the use of its middleware to

make sense of this growing flood of information, not

only to identify potential problems with service, but to

indicate where a telco could do better.

“Helping create clarity out of chaos is really the

key,” says Cantor. “It’s not only helping customer

care and streamlining that work.” It is about

moving from being “reactive to being proactive.”

This is the key message of a report recently

released by Tektronix Communications. Called the

TekComms’ 4D TIP Report, it says telecoms

intelligence providers have a vital role to play in

interpreting and monetising the data available to

mobile operators.

Inside, Cantor comments: “The combination of

‘Big Data’ and the granular detail that we can

provide has presented the carriers with more

intelligence about their business, and their

customers, than they have previously had access

to. Using this information the operators are

developing new business models rooted in security

and quality of service.”

Lyn Cantor, President ofTektronix Communications

A

INTRODUCING THE INDUSTRY’S FIRST FULL-SERVICE TELECOMS INTELLIGENCE PROVIDER

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Sponsored Interview

Mobile Europe | 29

He says that for telcos to manage this work

effectively, they have to approach it on a micro level,

rather than as indicative trend data. And potential

revenue can be missed or losses made if operators do

not analyse all their data: some apps or services

might simply consume resources without yielding

sufficient income and others might become a cash

cow if only they were allowed to grow.

“A miss can be as big as a mile if operators fail to

follow and analyse every path of the data journey;

valuable insights lurk as much in those parts of the

network they can’t currently see as in those that may

be more obvious but will never deliver the full story,”

says a separate briefing note released by the

company.

It goes on: “Hidden problems in the network can

now be easily located to drive better experiences.

Without a view of precisely what’s going on, from a

user perspective, there can never be a truly end-to-

end solution that eradicates the glitches. With the

heightened demands of LTE, glitches will become

inefficiencies, which will turn into complaints, which

will become a negative and time-consuming drain on

resources.”

The company’s core telco customer base is

increasingly offering new services to compete with

OTT services – such as video comms that have been

the preserve of Skype, Apple and others.

By adopting a four dimensional approach to its

customers’ businesses, Cantor adds: “We are now

uniquely positioned to help carriers identify new

revenue streams, reduce churn, and critically,

mitigate the risk posed by OTT players.

Using Tektronix Communications services, telcos

can better leverage their built-in competitive

advantage of controlling network quality by routing

their own services though the best in-house networks.

By monitoring subscriber behaviour through

Tektronix Communications systems, telcos can

maximise the potential and efficiency of such services,

while pushing OTT services through weaker lower

bandwidth networks.

And this will help operators keep clients because

there will always be two markets, notes Cantor: the

youth and other cash-poor markets who want to use

free OTT systems, and maybe do not worry if the

service quality is patchy; and the business and higher-

end customers who are prepared to pay more to

ensure reliability.

Having sophisticated data user analysis will enable

telcos to get the revenue equations right – pushing

wealthier customers towards their own systems,

while keeping the younger and poorer customers in

play through adequate, yet cheaper networks.

“Operators are realigning their business models to

offer the same agility as OTT players, the same

range of exciting user services and the same thrills

of discovery for users in the new, exciting and

enriching experiences they access at the device

level,” the company note goes on.

“Operators can now offer competitive

propositions, but with added security and quality of

service. As the migration to 4G gathers pace, how

operators can now gain full visibility: seeing

everything and being everywhere, gaining a real

competitive advantage over OTT players.”

This trend, predicts the TekComms’ 4D TIP

Report, even extends to popular cloud-based sync

services like Google Drive, Dropbox and Mozy,

where operators will offer tougher competition in

future through private clouds.

“Users will no longer have to depend on the ‘best-

effort’ of the internet to access music files, video

clips and other personal material, operators will

provide consumer and business-class sync services

over their own dedicated cloud architecture.

Business models will vary, but expect to see basic

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Sponsored Interview

30 | Mobile Europe

free services and additional bandwidth and security

available at a premium,” adds the report.

Looking ahead, the company is confident of a

solid future. Telcos are most unlikely to abandon

their strategy of using multiple vendors across their

services, to achieve competitive economies of scale.

To monitor and analyse user data from such a

variety of equipment, a third party technology-

independent service is always going to be of value.

To this end, Tektronix Communications tries to

be comprehensive, integrating its systems into user

access networks, core networks and the data

centre.

“We give the operator very significant visibility

over what’s going on [in] the subscriber

experience,” says Cantor.

With so much change in the sector at present

and so many roll-outs of new kit that telcos might

want to use, having a data system able to assess

and play a key role in road-testing new equipment,

has great value.

Such work also creates historic data that can be

used to show how a system has been rolled out at

other operators, helping vendors and telcos iron

out technological wrinkles in advance of going live

with new equipment.

In this regard, the increasing dominance of smart

phone apps and all their built-in complexity has

made the need for sophisticated surveillance all the

more important.

Subscribers will want to know why an app might

have suddenly stopped working, or is performing

more slowly. There may be a network explanation

and customer care will want the data diagnostics

to give them an answer and hopefully a solution,

helping reduce subscriber churn.

Tektronix Communications aims to provide

information enabling level one and two of

customer care services to offer effective assistance,

for identifying and solving problems.

“This is a sweet spot for us,” stresses Cantor.

So how do Tektronix Communications systems

work? In short, they are smart. They use data

mining probes – soft probes, core probes, routers…

The key is the middleware, offering effective

mediation and correlation.

“This is what’s important to the users. There’s so

much data in the network,” says Cantor. “It’s

actionable intelligence or as we like to call it

“analytics with purpose”. Unless the data has been

organised and correlated in a way that brings its

use and application to life… it’s of limited value.”

As a result, Tektronix Communications systems

are designed to be useful to their key telco

customers: engineering, operations and the radio

access network managers. They are designed to

enable these professionals see how a network is

operating in real time, assess usage quality, uplink

performance and latency. And even as application

upon application is piled onto an operator, having

an effective monitoring and analysis system helps

telcos assess how they work – and that matters,

because for customers, it’s the app that matters.

And if it doesn’t, then they might stray.

Tektronix Communications aim has long been to

offer solution-based data collation and analysis

systems that are sufficiently flexible to be honed to a

telco’s individual needs, netting user data and

streaming it into channels.

Its specialists work with telco clients to customise

its systems to take account of their technical

idiosyncrasies and business needs.

Cantor stresses the company will “continue to

evolve while being the best-in-class as telecoms

intelligence providers,” before adding: “People can

do part of this – but there’s no one [else] who

brings this together.”

The Tektronix Communications briefing note

underlines this noting that a good intelligence

system “helps operators understand their entire

environment and what goes on in it; the four

dimensions, or 4D, of 4G: subscriber behaviour, the

services they consume, the network environment

itself, and the technologies in play. Real-time end-

to-end data collection and analysis across each of

these dimensions can give operators the visibility

they need, to deliver the experience and services

their customers want.”

Moreover, telcos are in an ideal position to

deliver, not the least because they are not as

plagued by security as those harming OTT players

(identity theft especially) and can ensure greater

interoperability through initiatives such as joyn, the

commercial GSMA rich communication suite

compliance brand. But they’ll need confidence.

The TekComms 4G TIP report takes operators to

task warning “joyn may not live up to its promise

unless operators become more aggressive in their

approach to marketing the service, and take full

advantage for what it has to offer.”

Telecoms intelligence systems such as those

offered by Tektronix Communications just might

give the telcos the push they need to make services

such as joyn a real success.

ABOUT TEKTRONIX COMMUNICATIONSTektronix Communications accelerates the advancement of communicationsby optimizing the experiences of the connected world. We provide serviceproviders and equipment manufacturers an unparalleled suite of networkdiagnostics and service assurance solutions for fixed, mobile, IP and convergedmulti-service networks. www.tekcomms.com

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32 | Mobile Europe

Network innovation

his year is gearing up to be one in which

mobile networks undergo major disruptive

change with significant innovation coming

onstream in several different areas.

With data traffic now the primary focus, we’re seeing a

dramatic shift in the type of equipment that operators are

planning to invest in.

Small cells introduced for capacityIn recent years, the emphasis has been about adding

capacity to meet dramatically growing traffic levels, which

have been doubling annually.

Japan’s NTT DoCoMo, for example, predicts a further

12x network traffic growth overall in the next three years,

while Telefónica forecasts a requirement for up to 50x

capacity growth in cities, of which the improved spectral

efficiency of 3G and 4G will only satisfy up to 8x.

Several European operators point to the large installed

base of 3G smartphones, saying that this is where the data

capacity problem lies today. For at least the next two years,

they need to find ways to increase capacity to serve

growing latent demand from this technology that has

doubled annually.

Small cells appear to be the most serious contender to

satisfy the most demanding traffic capacities in a controlled

way. Having evolved from their original focus on residential

use, various mature enterprise and metrocell products are

available for indoor and outdoor applications.

Unlike earlier residential femtocell products, these are

much higher capacity (up to 32 channel), have higher RF

power and are suitable for unsupervised outdoor locations,

thanks to more robust construction, wider temperature

tolerance etc. Some are already 3G/LTE multimode capable

using separate boards or plug-in modules, leaving the

option for an easy future upgrade.

These benefit from earlier innovation arising from mass

market consumer femtocells, such as zero-touch

deployment, remote upgrade, self-optimisation and

constant adaptation to changing external environment.

Extensive deployment in many live networks has meant

they now meet the five nines performance (99.999

percent) demanded for widespread commercial use.

For this reason, a layer of small cells will be introduced to

provide high capacity in peak urban areas, with most

interest on metrocells today. The short range of small cells

provides a high signal/noise ratio, allowing higher

modulation schemes and achieving closer to the 21Mbit/s

rates promised by HSPA+.

It’s likely to be 2014 before 4G metrocell deployments

begin in earnest, although Virgin UK have already

completed successful trials in Newcastle and Bristol with a

view to offering this “small cell as a service” wholesale to

UK operators.

Mike Schabel, VP for Small Cells at Alcatel-Lucent,

warns that the industry shouldn’t be focussing so much

on the box itself. The wider issues are around how to

deploy and manage large numbers of small cells in the

field. Site acquisition, obtaining planning permission,

power and backhaul – especially over the last few

hundred metres – are all critical aspects. These will lead to

both technology and commercial disruption and

innovation.

Beam-forming radios that shape the footprint of each

small cell to match its unique environment allow

positioning much nearer existing macrocells due to lower

interference.

David Chambers looks at four key areas of network innovation and analyses what theymean for mobile operators

MOBILE NETWORKINNOVATION: WHAT DOES2013 HAVE TO OFFER?

T

NSN’s flexi base station

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Mobile Europe | 33

Network innovation

Backhaul for small cells, especially the last few hundred

metres to the lamppost or street location, has become a

hot topic. A wide-range of new wireless technologies

appear to address the issue, pushing the boundaries of

useful spectrum beyond 60, 70 and even 80 GHz.

However, no single technology satisfies every scenario,

leading to a “toolbox” approach combining non-line-of-

sight, microwave, millimetre wave and even optical

transmission into a comprehensive mixture.

Intel has been touting a radical approach to reduce

backhaul bottlenecks for small cells by installing a local

data cache, while Ubiquisys demonstrated this concept in

their Smart Cell last year, serving content shared through

both 3G and WiFi.

Altobridge, meanwhile, believe their experience with

cellular systems using very limited satellite backhaul

might also be reused in this context.

While the capacity problem isn’t going away, the

emphasis is shifting to ensure that the quality of

experience of each customer improves and matches their

expectation.

Improving the quality and speed of WiFiNowhere is variable quality of service more visible

today than for public WiFi access, where quality can be

much better or worse than 3G for many reasons.

The rush to adopt WiFi, both by mandating it for all

smartphones and investing in service provider WiFi, has

reduced the pressure on the cellular networks. Telefonica

O2, for example, reports that their own London WiFi hot-

spots offload 5-10 percent of data traffic from their 3G

network.

A major concern generally is the resulting “blind

handoff” to WiFi. The operator has no visibility of what

service their customer is using, or what

quality/throughput they may be receiving and this may

create longer-term issues.

Early, subjective feedback from Korea suggests that

many smartphone users actively choose to remain on the

new LTE network rather than switch to free WiFi because

it gives noticeably faster performance, for both speed and

latency.

Other major drawbacks when using WiFi have been the

need to enter login details on a webpage, and the drain

on battery consumption if left on all day.

During 2013 we can expect to see visible evidence of

improved, seamless access to WiFi. The HotSpot 2.0

specification allows smartphones to identify which WiFi

hotspots are compatible with their service provider, and to

use authentication and billing based on their SIM card

and mobile phone account.

While these concepts are not particularly new, their

active support by mobile operators and the ease of

deployment through smartphone software updates,

should reduce time to market.

Huawei, meanwhile, has developed a solution that looks

up the location of smartphones based on the serving cell

in a database. If a compatible WiFi hotspot is known to be

within reach, it remotely turns on the WiFi in the

smartphone.

Then there is the potential of Wi-Gig, the friendly name

for 802.11ad, which is a superfast very short range

wireless technology.

Now part of the WiFi family, with the Wireless Gigabit

Alliance having merged with the WiFi Alliance, and

operating in unlicenced or lightly-licenced spectrum at

60GHz, it offers multi-Gigabit throughput across a range

of a few metres. It’s ideal for downloading or

synchronising huge amounts of data quickly.

Mass-market domestic use, where it can replace the

unsightly wiring between TV’s and set top boxes, should

drive down costs that will make it easy to extend to office

and public environments. Its very limited range facilitates

high re-use and limits interference.

Overall, WiFi – both delivered directly by a service

provider and privately in the home or office – will

continue to evolve into an essential component of the

comprehensive mobile network service.

Further innovation to manage the quality of service

even when using unlicenced spectrum should allow the

balance to be made between lowest cost and appropriate

quality.

The rush to 4G LTE and beyondOne reason that the evolution of the radio network

attracts the most attention is because it attracts 80

percent of the capital investment. The industry has a clear

roadmap which evolves to LTE and LTE-Advanced, with all

major RAN vendors investing heavily in the new

technology.

Having replaced older standalone 2G and 3G

basestations with the latest SingleRAN products, 4G LTE

Huawei demonstrating

their indoor base station

femtocell

The industryshouldn’t befocussing so muchon the box itselfwhen it comes tosmall cells

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34 | Mobile Europe

Network innovation

capability can be added in some cases by simply

plugging in a new RF module.

UK operator EE’s accelerated rollout at 1800MHz for

competitive advantage is just one example of the much

shorter timescale required to deploy a radical new

technology.

While most of today’s 4G LTE networks are designed

for wide area coverage using lower spectrum at 700 and

850 MHz, we may see some unusual use of the higher

spectrum at 2.6GHz. This has been sold at much lower

prices, typically 10x less, due to its short range and

unsuitability for wide area coverage.

Speculation exists about how this might be used for

indoor applications, providing high quality coverage and

capacity in areas that a traditional approach might not

solve.

Being slightly later to deploy LTE might not necessarily

be a long-term commercial disadvantage. For example,

while T-Mobile USA is the last of the four major American

networks to rollout 4G LTE, they will be using 4x2 MIMO

rather than 2x2, giving them a predicted 60 percent

efficiency gain from the same smartphones.

LTE Advanced is also just around the corner. Embodied

within the later 3GPP standards releases, LTE-Advanced is

a toolkit of several different features from which

operators and vendors can select the most attractive

options.

HetNetsThe combination of different radio technologies (3G,

4G and WiFi) and different cell sizes (small, micro and

macro) are often termed heterogeneous networks or

Hetnets.

Samsung, a relatively new entrant into network

infrastructure, lists the greatest challenges in this area as:

self-organised network (SON), interference management,

mobility management and traffic management.

Without good solutions to these challenges, the

vendor believes it is impossible to deliver an efficient

Hetnet.

SON: SON can improve both the efficiency of network

deployment and operation and user experience. The

technology involves self-configuration, self-optimisation,

and self-healing. The important SON features include

Automatic Neighbour Relation (ANR), Coverage and

Capacity Optimisation (CCO), Mobility Load Balancing

(MLB) and Mobility Robustness Optimisation (MRO).

All of these need to be fully integrated under a well-

designed architecture in order to work properly.

Interference management: The main interference

management methods include Enhanced Inter Cell

Interference Coordination (eICIC) , Inter Cell Interference

Coordination (ICIC) and Coverage and Capacity

Optimisation (CCO).

Mobility management: MRO is a good method to deal

with two typical problems in Hetnet: the increase on

handover failure rate caused by high-speed terminals, and

the increase on unnecessary handover attempts.

Traffic management: MLB is the preferred solution to

deal with the problems on traffic imbalance between

macro and small cells, and there are several methods to

offload the traffic, such as LIPA/SIPTO and WiFi offload.

All these features place tighter demands for timing and

synchronisation, specifically introducing a phase timing

tolerance of less than one microsecond. By contrast, 3G

WCDMA allows each cell site to operate asynchronously

with no phase alignment requirement.

In turn, this needs careful attention to the choice of

synchronisation methods ranging from GPS (which may

not work indoors), Synchronous Ethernet (which provides

only frequency synchronisation) and PTP (more commonly

used in edge devices).

While the industry grapples with the issues of how best

to tame the beast of data traffic by building ever faster and

higher capacity networks, it may see better commercial

returns by taking a wider view of how best to satisfy the

customer.

This will drive innovation across many aspects of the

business from introducing different commercial models,

from how the customer experience is articulated and

managed, as well as the underlying technology.

It’s easy to become too focussed on radio transmission

technology alone – the end-to-end system also needs to

evolve to match the needs of society that are evolving

rapidly from voice to data and continue to do so.

WiFi willcontinue to evolveinto an essentialcomponent of themobile networkservice

An Ericsson 4G/LTE

site in Sweden

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Sponsored Article

henever mobile networks are discussed, we

invariably focus on the communication

technologies and challenges of transporting

large amounts of data. Radio spectrum, cell site designs and

the use of Ethernet and IP in the mobile core are popular

topics and are also important as mobile data traffic will

continue to grow exponentially.

But, the real challenge that mobile carriers are facing is not

a communication technology challenge, but a business

challenge and it is not a new one either! It is the challenge of

making money in an over-the-top world. What strategy can

carriers adopt that will increase customer loyalty and drive

higher revenue per customer that can be used to offset the

investment that has to be made in network bandwidth,

speeds and reliability?

Many now agree that the best approach is to focus on

providing compelling, high quality services that are customer-

centric. This requires an understanding of what is important

for users and an end-to-end view of quality of experience. It is

also requires the ability to react quickly and potentially tailor

services to customer needs. In short, it requires real-time

service assurance and optimization capabilities.

Qosmos and Napatech have combined forces to provide a

platform that can form the analytic foundation for mobile

service assurance and optimization. The Qosmos DeepFlow

Telecom appliance enables a wide range of analytics solutions

to be developed quickly and easily to support exactly the

strategy that a particular carrier needs to implement.

Based on a Common-Off-The-Shelf (COTS) approach, the

DeepFlow Telecom appliance provides a reliable, high-

performance, pre-integrated platform. The complex,

specialized integration of packet capture, application

recognition and quality of service monitoring technology,

which is essential for service assurance and optimization, has

already been taken care of, allowing developers of telecom

management solutions to focus on the specific management

and big data analysis task that needs to performed.

This enables specialized solutions to be developed and

deployed quickly, safe in the knowledge that the platform is

reliable and up to the task.

THE MOBILE “DEATH SPIRAL”Carriers have been aware for some time of the “scissor

effect” of rising costs due to growing data traffic and flat

revenues due to all-you-can-eat service offerings. For mobile

carriers, the introduction of mobile data access and smart

devices has aggravated the scissor effect and led many

carriers to investigate new ways of increasing revenue and/or

controlling bandwidth-related costs. However, the first

attempts at solving this dilemma have introduced a “death

spiral” effect, where customers are alienated and actively

seek alternative solutions.

To understand this effect, consider that the growth in

smartphones and tablets is not only driving more data traffic,

but also fuelling the explosive growth in apps. These are

accessed over Internet connections or “over-the-top” leading

to an increase in mobile data traffic, but no extra revenue for

the carrier unless limitations are implemented. To make

matters worse, some of the applications actually substitute

voice and SMS usage leading to lower carrier revenues.

Early efforts to address this were based on traffic shaping

and throttling of “undesirable” application usage. But, this

negative approach only results in dissatisfied users who feel

like they are being penalized. This leads to lower loyalty and

an even greater desire to use the very applications that

carriers do not want these customers to use. Thus, a “death-

spiral” effect ensues that not only fails to address the scissor

effect, but actually exacerbates it.

BREAKING THE “DEATHSPIRAL”

An alternative is to take a

more customer-centric approach

where there is more focus on

trying to understand what

customers are trying to achieve

and how they are achieving it

and then providing services that

better match this need with high

quality.

This involves understanding

customer behaviour,

understanding when and how

Mobile Europe | 35

ENHANCING MOBILE SERVICE ASSURANCE AND OPTIMIZATIONDan Joe Barry explains how Qosmos and Napatech have combined forces to provide aplatform that can form the analytic foundation for mobile service assurance and optimization

W

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36 | Mobile Europe

they are using various services and then optimizing services

to better suit this behaviour. This can potentially include

tailoring services to suit individual customer needs leading to

more loyalty, potentially more revenue or at least the same

revenue, but with more efficient use of network resources.

The key to driving more revenue is the ability to offer a

superior product that is compelling for customers. This in

turn requires that you deliver on this promise, so assuring

quality of experience is critical.

By focusing on understanding customer needs better,

meeting those needs in an innovative way and assuring that

users get what they pay for then there is the potential to

break the mobile “death spiral”.

UNDERSTANDING NEEDS AND BEHAVIOURMobile networks are now migrating to an all-IP

infrastructure. To understand customer behaviour and needs,

service usage needs to be monitored. But, since IP networks

are bursty and dynamic by nature, it is not enough just to

poll the network once in a while to find out what’s going on.

You need to monitor it in real-time, analyze each and every

IP packet and build a picture of what is going on.

This requires dedicated monitoring probes (otherwise

known as appliances) that have the capability to capture and

analyze all packets traversing the network connection in

question and then understand what kind of service or

application is being used. This is often referred to as Deep

Packet Inspection (DPI) as the payload of each IP packet

needs to be examined in order to determine what kind of

service or application is being used.

With real-time monitoring and DPI capability, it is possible

to analyze subscriber service usage and behaviour over time

and build a profile of service usage by customers, which can

provide the key to understanding what kind of service

offerings could bring value to different sets of customers.

MEETING CUSTOMER NEEDSWith big data analysis of real-time information provided by

DPI, the knowledge is now available to design compelling

services that better suit customer needs. These can be

“upgrade” services that can be offered when customers

reach limits under their current

plan or can be tailored services

based on time-of-day, device,

location or application usage.

For example, if a customer likes

to use their iPad to check their

Facebook account from 6pm to

8pm, but otherwise is not a big

user of mobile data, then there is

the opportunity to offer a service,

which assures excellent

connectivity for Facebook usage

during this time window, but

much lower bandwidth the rest of

the time. This could be offered at

a lower price, but allows the excess bandwidth to be

offered to more demanding users perhaps at a premium.

The possibilities are endless and only bounded by

imagination. This is made possible by the availability of

accurate information and the ability to react in real-time.

A customer does not need to be a subscriber either. It

could also be a cloud service provider who needs to ensure

that their cloud service has excellent connectivity for their

customers and that their SLAs can be honoured.

ASSURING SERVICE QUALITYOne of the strengths of mobile carriers is their ability to

assure quality. The processes, back-end systems and the

mindset are all in place to deliver on demanding SLAs.

What is missing, is the end-to-end visibility in real-time of

service quality. With real-time monitoring and DPI

capability, you get end-to-end visibility and with intelligent

packet capture technology, you have the real-time quality

of service measurement capabilities to measure jitter, delay

and other critical service parameters.

THE QOSMOS DEEPFLOW TELECOMAPPLIANCE

Qosmos DeepFlow provides visibility on nearly all

applications consumed by mobile subscribers, including

http-based applications like Facebook, and also non http-

based applications like Skype or other VoIP/IM rich

applications that devices like http proxies are unable to

identify. Unlike inline DPI devices, Qosmos DeepFlow is a

passive probe designed for analytics, able to perform DPI

analysis and to generate a constant and reliable stream of

detailed data records including time-based metrics (e.g.

volume of data per user, per application and per minute).

Beyond standard application classification, DeepFlow

provides extensive metadata that can help carriers in

understanding how applications are being used by

subscribers. For example, it is possible to identify the most

popular videos on YouTube, or to tell how many messages

are being sent by a Facebook user.

These capabilities can be leveraged by developers of

mobile data analysis solutions to provide a powerful tool for

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Mobile Europe | 37

both service assurance and optimized service creation. The

information provided by the inbuilt capabilities of the

DeepFlow platform, which are not available through existing

network devices, enables the mobile data analysis solution

provider to bring more value to its carrier customers,

providing a new level of subscriber insight that opens up

entirely new avenues for carriers to monetize their network.

ASSURING RELIABLE ANALYSIS DATAAccurate DPI analysis requires reliable and complete data.

Assuring that all relevant data for analysis is available when it

is needed is crucial. Qosmos DeepFlow probes use intelligent

adapters from Napatech to ensure that all relevant data is

captured and available for analysis at speeds up to 40 Gbps.

Napatech network adapters are designed for use in

standard servers and guarantee delivery of data to Qosmos

DPI software no matter the network load. In addition,

Napatech advanced features pre-process data to identify

common telecom protocols including tunnelling protocols

used in mobile networks, such as GTP. These traffic flows can

be intelligently distributed to up to 32 cores available in the

standard server allowing multi-threaded Qosmos DPI software

to scale performance with demand.

Each packet captured is uniquely time-stamped by

Napatech hardware with nanosecond precision providing

precise data for delay and jitter measurements that are

crucial for end-to-end quality of service assurance.

Napatech performs all of this with zero packet loss and

very low CPU load.

A POWERFUL PLATFORM FOR MOBILE DATAANALYSIS SOLUTIONS

To illustrate the power and value of the DeepFlow Telecom

probe, consider the case of a leading provider of big data

analytics for mobile operators, who successfully deployed their

solution, using the DeepFlow Telecom probe. Their core

competency resides in developing and integrating analytics

solutions, and not in developing DPI probes to analyze IP traffic.

The company therefore selected Qosmos DeepFlow probes to

leverage detailed network intelligence within a few weeks.

Thanks to the insight provided by the combination of big

data analytics tools and Qosmos DeepFlow probes, the

vendor’s solution can now help carriers to evolve from pure

Communication Service Providers to Content Service

Providers.

The detailed understanding of the interest, lifestyle, trend,

profile and habits of mobile subscribers over the internet

enables carriers to convert usages from off-net OTT services

(e.g. Netflix, YouTube) to new on-net OTT service (provided

by operator) and maximize the ARPU. This is possible with the

detailed understanding of the behaviour of mobile subscribers

through Qosmos DPI analysis combined with the subscriber

information from other data source (billing, Radius, etc.) using

the vendor’s Business Intelligence tools.

The monetization of mobile subscriber traffic becomes

possible by converting subscriber behaviour information into

marketing activities like new services, personalized

marketing campaigns and targeted advertising.

Furthermore, the precise understanding of service usage

enables operators to design subscription plans in line with

specific subscribers segments. The segmentation through

mobile service consumption enables carriers to create tiered

and customized services and move away from flat fees

strategies.

FAST TIME TO MARKET In this example, the system integrator was able to

integrate Qosmos DeepFlow probe, an off-the-shelf DPI

probe designed for mobile analytics in a matter of weeks.

This enabled the first customer implantation within six

months, translating into exceptionally fast time to market.

The Qosmos DeepFlow probe was provided to the

customer’s product team, who used the standard interface

feeding the existing big data analytics software with

standard CSV records.

Fast time to market was achieved because the customer

did not have to develop complex DPI technology internally,

and not worry about multicore processor integration, real-

time packet handling or high speed packet capture

technologies which only specialists can master.

SOLID PARTNERSHIPBeyond delivering best of breed DPI probes, Qosmos acts

as a long-term technology partner for this tier one solution

vendor, who can focus resources on their core business.

Qosmos updates the DeepFlow probe roadmap with inputs

from the vendor, including requests for regional protocol

plugins, and also manages continuous protocol and

applications updates, providing the vendor’s team with a

future-proof DPI technology.

A PLATFORM FOR THE FUTUREAs this example shows, building a complex mobile

analytics solution does not need to take years, but can be

successfully integrated and deployed in a matter of weeks

thanks to the powerful, pre-integrated capabilities of the

DeepFlow probe.

In addition, the continuous protocol, metadata and

applications provided by Qosmos combined with the ability

of Napatech to guarantee data delivery for analysis at

speeds up to 40 Gbps, provides a future-proof solution that

helps mobile data analytic vendors to deploy their solutions

with confidence and provides re-assurance to carriers that

we can support their strategy far into the future.

ABOUT NAPATECHNapatech develops and markets the world's most advanced programmablenetwork adapters for network traffic analysis and application off-loading.Napatech is the leading OEM supplier of Ethernet network accelerationadapter hardware with an installed base of more than 100,000 ports.www.napatech.com

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38 | Mobile Europe

OTT services

n the increasingly competitive digital

communications market, economies of scale and

scope are becoming a major source of competitive

advantage.

As a result, the quaint concept of mobile operators only

offering voice and messaging services in markets where

they have physical infrastructure is becoming increasingly

outdated.

In many markets, telcos’ voice and messaging revenues

are already in decline. Research firm Ovum estimates that

$23 billon in messaging revenues were lost in 2012 alone

to SMS alternatives.

Mobile operators are now focused on retaining a

presence in a market that is ebbing away from them and

there is already a shift by some operators towards offering

data plans with basic voice and messaging services bundled

in for free.

But adding unlimited SMS messages and voice calls to

bundles may not be enough.

Acknowledging that their biggest competitors in the

voice and messaging market are now WhatsApp, Skype,

Facebook and other global players, major mobile operators

are breaking the umbilical cord between their networks

and their services.

Consumers are attracted to OTT services because of their

flexibility and their functionality, as well as their low prices.

Skype and Facebook, for example, can be used on PCs

and tablets connected to WiFi networks, as well as mobile

handsets, while WhatsApp offers neat features, such as

notifications that your message has been sent successfully

and then read by the recipient.

Facing this kind of competition, mobile operators are

looking to create differentiators for their own OTT services

and apps.

Telefónica, T-Mobile and Orange are among those

offering OTT services designed to work across the internet.

In recent months, Orange has launched Libon, a free

communications app offering HD-quality calls over 3G and

Wi-Fi networks in 80 countries, while T-Mobile has

enhanced its Bobsled OTT service and partnered with

specialist Vopium to trial mobile VOIP services under the

Clever Connect brand in the UK.

Telefónica, one of the first telcos to realise that it needed

an OTT play, says that, in December 2012, its TU Me OTT

app had approximately one million users.

Clearly, such free services could reduce demand for the

conventional, paid-for voice and messaging services

provided by mobile operators, but Telefónica decided that

an OTT offering will help it retain a strategically-important

presence in the digital communications market.

“We wanted to be part of an ecosystem that is growing

and to learn what our customers are doing,” says James

Finn, director of communications product design at

Telefónica Digital. “People want to communicate more

and there is no reason we shouldn’t continue to

participate in the market we created.”

Finn adds that Telefónica will begin to monetise TU Me

in 2013. “There are 50 or 60 different things we could be

doing in monetisation. We will test two or three in the

short-term,” says Finn.

Mobile operators should, at least in theory, be able to

optimise their networks and apps to work well together

and provide a high quality of service.

“We own both the “can and the string,” so that gives

us unique capabilities and enables us to offer a

differentiated service,” says Finn.

However, he maintains that Telefónica doesn’t prioritise

TU Me traffic, even at very busy periods, such as New

Year.

Orange’s Libon communications app, developed by

Orange Vallée, a “disruptive innovation unit” within the

Orange Group, can convert a voice message into text and

enable the user to greet different callers with different

voicemail messages.

Libon users can also buy an in-app subscription,

providing a full hour of international calling every month

to landlines or mobile numbers in 31 countries. Orange

adds that Libon will be compatible with services based on

the Rich Communications Suite (RCS) standard, which is

designed to make mobile operators’ IP-based

voice and messaging services, such as group

chat, file transfers and on-call content sharing,

fully interoperable.

Indeed, Orange, Movistar and Vodafone

launched the world’s first fully interoperable

RCS services in Spain in November 2012.

Branded joyn, a certification trademark of

the GSMA, the services enable the operators’

customers to chat and exchange images or

video during calls across networks.

The GSMA says that joyn services are also

available now from individual operators in

Germany and the US. “With desire and

effort and a commercial deal, any OTT

service (from an operator or an OTT

Internet Player) could interoperate with

the global joyn network,” adds Graham

Trickey, senior director - commercial and

technical mobile Internet solutions at the

GSMA.

More and more mobile operators are experimenting with OTT communications services,but which are most likely to succeed, wonders David Pringle

TIME TO GO OVER THE TOP?

I

Telefonica’s TU Me app

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Mobile Europe | 39

OTT services

RCS is also being touted as a potential platform for

enabling automated, multimedia communications

services between companies and their customers. SMS is

sometimes used for this purpose today, but the richer

functionality of RCS means it could enable a much

broader range of use cases. To make that happen, mobile

operators will need to open up their networks by

exposing application programming interfaces (APIs) that

developers could use to initiate RCS sessions.

This approach is advocated by Solaiemes, a Madrid-

based start-up which provides a RCS-e (Rich

Communications Suite – enhanced) gateway that enables

web services and apps to make use of telco infrastructure.

Rather than speaking to an interactive voice response

(IVR) system, for example, a consumer could use RCS to

start a chat session with a company, which could be

handled by an automated bot.

“Customer care is a winning enterprise use case,” says

José M Recio, co-founder of Solaiemes. “Consumers can

use RCS to perform self-service capabilities, which is

much more pleasant than using an IVR… with IVR you

need to focus, but with chat you can be multi-tasking.”

But Recio says that mobile operators need to move

quickly. “No OTT has an API that can be used by

enterprises, but they will because that is where the

money is,” he adds.

Recio says that Solaiemes is working with three out of

the five mobile operators steering the development of

RCS-e (Deutsche Telekom, Orange, Telecom Italia,

Telefónica and Vodafone). “They are already exploring

these kinds of enterprise use cases,” he adds. “This idea of

RCS being in a fight with OTT is wrong. That is only the

case, if you see RCS as being about peer-to-peer.”

One of the factors that has held RCS back has been the

perceived need to deploy IMS (IP Multimedia Subsystem)

technology in the mobile network, but RCS can now be

deployed using a hosted IMS solution from a vendor.

In this case, operators are likely to deliver a hosted

solution to their customers as an operator-owned joyn

service, according to Graham Trickey at the GSMA,

“exhibiting all the normal benefits of an operator service

rather than an OTT service: Ubiquitous availability, global

interoperability, security, privacy, comprehended in

operators pricing tariffs/bundles.”

But operators don’t necessarily want to put all their

eggs in the RCS basket. “If people like TU Me, we will go

after that,” says Finn at Telefónica. “If people like RCS,

then we will go after that. We are a big enough company

to have a few strands to our strategy.”

Existing OTT players aren’t surprised by the new

competition from operators. “It is difficult to build a

differentiated brand if they don’t have services and regular

contact with customers,” says Andreas Bernström, CEO of

Rebtel, a leading provider of OTT mobile VOIP services.

As well as developing OTT services in house, many

telcos are looking to work with specialists, such as Rebtel.

“We have had three RFPs from tier one European

operators asking us to build mobile VOIP for them,”

Bernström says.

Partnering with players who have already built a

successful OTT communication service is often done on

the basis that the operator will be able to sell dedicated

tariff plans and other add-ons.

Ovum notes that operators 3 Hong Kong and RCom

have both partnered with WhatsApp, for example.

Such partnerships may enable mobile operators bring

an OTT offering to market faster than they could build

their own service. Rolling out a latency-sensitive OTT

service, such as mobile VOIP, can be an expensive and

time-consuming process, requiring dedicated data centres

in locations near customers.

Bernström says Rebtel, which has 20 million customers

around the world and made almost $80 million in revenue

in 2012, is open to working with other mobile operators

to provide co-branded OTT services, contending that

operator’s own OTT services and joyn are struggling to

gain traction.

“Joyn is trying to do 12 things well,” he adds. “Single

purpose apps, such as WhatsApp, seem to be the way to

go.”

But Telefónica’s Finn is wary of partnering with OTT

players on communications services: “We looked at that

option, but it is very difficult to partner with a company in

your core business… the trade-offs are humongous.”

Finn is more positive about using standards, such as the

WhatsApp is well

ahead of operator-led

initiatives

We are a bigenough companyto have a fewstrands to ourstrategy

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OTT services

Session Initiation Protocol (SIP), to build interoperability

with other OTT services: “There are some interesting

companies in this space, but we haven’t gone through

with any deals… we need to grow up our own user

community first.”

Mobile operators are, of course, much more open to

partnerships that keep their brands front and centre.

In the US, AT&T has struck one such partnership with

Twilio, which provides a web-based API that enables

developers to build voice and SMS applications that “will

connect to carrier networks all over the globe”.

Twilio’s cloud communications services and API

platform underpins AT&T’s new Advanced

Communications Suite - a web portal that enables

businesses to use voice and SMS-enabled applications to

interact with employees, partners, suppliers and

consumers.

The ready-made apps include appointment reminder

services, survey data collection tools, business continuity

solutions and geo-targeted messaging.

Twilio has done a similar deal with KDDI in Japan and

James Parton, Twilio’s director of European marketing,

says that his company is confident that European telcos

will also resell its API platform in the same way.

“It will drive incremental traffic on their network and

make them more relevant to the developer community,”

says Parton. “Twilio’s API works, it is simple and reliable…

it has validation and credibility in the developer

community.”

Parton adds that the diversity of telcos’ IT architecture

can make it difficult for them to create in-house a single

voice and messaging API that will work across their

group.

He also notes that many telcos lack the relationships

with the developer community that are needed to ensure

widespread use of their APIs. Moreover, many web

developers, in particular, still aren’t aware that they can

easily add communications to their software. “The

perception is that telephony is hard,” says Parton.

Still, there is a danger that as telephony and

messaging are integrated into more and more apps, the

telco’s brand gets obscured by others. T-Mobile originally

launched its Bobsled service to enable Facebook users to

make free VOIP calls to their friends on Facebook, but the

operator has since turned Bobsled into a standalone OTT

service.

Although some commentators believe that Facebook

could eventually take a major chunk of the peer-to-peer

communications market, Finn believes that the market

for social communications, such as that provided by

Facebook, will remain distinct from the market for secure

and private personal communications.

“If you really need to reach someone, you aren’t going

to use Facebook,” he says.

FT-Orange launched a

range of new innovations

at a glitzy launch in

November 2012

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Sponsored Article

42 | Mobile Europe

RENESAS MOBILE AND ECRIO DELIVER VERSATILE PRE-INTEGRATED VoLTESOLUTIONS OPTIMIZED FOR LTE DEVICESThe Ecrio Inc. (Ecrio) and Renesas Mobile Corporation (RMC) collaboration is poised todeliver pre-integrated, pre-certified FlexIMS™ based LTE device solutions for OEM andODM vendors to rapidly accelerate the rollout of carrier-grade VoLTE and essentialmultimedia communication services.

volving from 3GPP-standardized

GSM/EDGE/UMTS/HSPA, LTE, and its

subsequent improvement, LTE Advanced

(LTE-A), offer broadband speeds for the transformed

packet based unification of the mobile network supplying

all communication and data services. Ecrio recognized

the imminent paradigm shift from Circuit-switched (CS)

voice calling to Packet-switched (PS) voice and video

calling by developing FlexIMS Architecture, a novel

device software technology. Ecrio's FlexIMS architecture

fully addresses the migration needs to PS-based mobile

communication without compromising carrier-grade

quality and latency of these real time communication

services.

The VoLTE standard, covering voice and SMS

messaging, has gained worldwide operator support and

is officially adopted by GSMA as specification PRD IR.92.

The multimedia additions to IR.92 specify standards

profile extensions for conversational video and rich

communication services (standardized under the IR.94

and companion RCS specification) and ensure familiar

worldwide service interoperability and roaming

capabilities across 4G networks.

The combined Renesas Mobile and Ecrio turn-key

solution enables the OEMs to deliver richer service

experience with the highest quality multimedia

communication functionality.

Renesas Mobile has developed a number of world

leading LTE chipsets with unique quality and

performance. The focus of the developments has been to

provide a variety of multi-mode LTE platforms that can

address both the high-end market and the mid-tier

volume market. Thus, bringing LTE, and mobile

broadband, within the reach of all customers. Voice

service is a key function of mobile devices for both the

users and the operators. Therefore, enabling high quality

voice for LTE has been a very important design criterion.

VoLTE has two distinctive but equally important

components; the IMS protocols stack, and the transport

of Voice over Internet Protocol (VoIP). In order to achieve

optimal quality, there has to be tight integration of the

IMS and voice stacks with the radio interface. It also

needs to include architectural flexibility to cater for future

use-cases. Hence, the VoLTE and further IMS services

solution architecture has to be designed carefully to

enable extreme flexibility for current and future services

on one hand, and on the other, optimized to ensure the

performance, quality, and power requirements can be

met for voice in a power constrained mobile device.

The Renesas Mobile chipsets, together with the Ecrio

solution, have been designed with these requirements in

mind – thus, it is designed with extreme performance

and flexibility in mind.

Extreme performance: The target was to significantly

increase battery life with VoLTE compared with previous

technologies – especially compared to 3G voice. In

addition, the voice quality was selected as one metric –

the voice quality has to be significantly better than the

one provided by cellular voice today. This has been

achieved by carefully integrating the Ecrio Mobile

Communication Client Suite (MCCS) based on the

Figure 1: OptimizedVoLTE solutions

E

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Sponsored Article

Mobile Europe | 43

FlexIMS technology on the Renesas Mobile chipsets, and by

implementing the right technologies in the radio side to

ensure the optimal usage of radio resources and to

minimize the battery usage. The tight integration of

Renesas Mobile’s radio technology with Ecrio’s VoLTE

technology provides significantly better voice quality than

provided by current solutions. The voice transport is tightly

integrated to the Renesas Mobile chipset modem features

to reduce latency, improve quality using the Renesas

Mobile cellular audio quality algorithms, and power

consumption reduction features. This allows a leading

VoLTE platform with optimal “carrier grade” voice quality,

quality of service, and performance. As the tight integration

is a key aspect of the solution, it provides significantly

better performance, battery life and quality than non-

integrated solutions. Renesas Mobile is also introducing an

Audio Tunneling Solution (ATS), where the audio flow is

directly routed from the wireless modem to the audio

processing further enhancing performance and battery life.

Extreme flexibility: The Renesas Mobile and Ecrio

solution is based on the FlexIMS architecture and is

distributed optimally between the Modem processor

and/or the Application Processor delivering the best

performance in terms of audio quality, latency and battery

life. The Ecrio Mobile Communications Client Suite (MCCS)

based on FlexIMS architecture, in this native

implementation is tightly integrated to the Renesas Mobile

Radio Interface Layer (RIL) for maximum integration

benefits. The FlexIMS architecture allows for integration of

additional IMS applications and new services such as RCS-e

and Video Calling to be added in a modular fashion. This

architecture allows also full integration to the host

operating system, for instance Android, and its phone

application for seamless user experience. Due to the

architecture’s configurability, it can support the market and

operator variants needed for global solutions.

The most important factor of a solution is, obviously,

availability and maturity. The Renesas Mobile and Ecrio

solution is available today, and has been tested, and ready

for commercial deployment.

The FlexIMS architecture embodies state of the art

“SMART” design principles that provide flexibility,

robustness and maturity for the upcoming deployment of

rich IP Communication services, including the following

attributes:

Scalable – It offers a single network registration and

authorization shared across all IMS based applications and

services with very well defined routing criteria techniques.

A huge advantage for OEMs and 3rd party Application

Developers to reduce the time to market for IMS based

applications and services significantly.

Modular – The solution architecture offers the OEMs a

highly modular "pick and build" capability. For example, if

an OEM wanted to have only SMS and Voice for the initial

deployment and add RCS and Video functions later,

FlexIMS is ideally suited for these scenarios. Another salient

feature is a clear separation of signaling and

multimedia modules. The solution supports service

level configurations that can be customized by mobile

operators.

Advanced – The distributed FlexIMS Architecture

allows the integration of the communications stacks in

either the Modem Processor, the Application

Processor or split among them. OEMs and ODMs can

select the best of breed multi-mode LTE Modem chips

(e.g. Renesas Mobile), whilst taking advantage of the

most advanced multi-core Application Processors to

achieve best possible power consumption without

compromising service quality, and performance. The

solution supports UICC based strong security

mechanisms that these mission-critical

communications services require. It also enables third

party IMS and RCS services with a Back to Back User

Agent (B2BUA) and a SIP Proxy Framework that

integrates in LTE Baseband Processors.

Robust – The design and implementation of the

FlexIMS architecture was carefully chosen to be

platform-independent to cover all foreseeable

platform and chipset configurations. The FlexIMS

architecture has a proven base of cross-platform

deployments on mainstream OS (e.g. Android, Linux,

Symbian, Windows) for phones and tablets as well as

Real Time OS (RTOS) for connected devices and

appliances targeting the M2M vertical markets.

Tested – The FlexIMS implementation has been put

to test in several Interoperability Tests (IOT) sponsored

by Industry fora and mobile operator labs to perform

well under normal and abnormal network conditions.

In summary the Renesas Mobile platforms, with the

Ecrio FlexIMS technology provide a ready and mature

solution, which is available today. It delivers the best

performance in terms of audio quality, latency and

battery life. The extreme flexibility and extreme

performance provides an optimized solution for

handset manufacturers with clear and easy path for

future extensions, addition of new services and

performance improvements.

FlexIMS™ is a trademark of Ecrio Inc.

BACKGROUND ON RENESAS MOBILE PLATFORMS:The SP2531 is a triple mode Cat-4 LTE slim modem offering data rates up to150Mbps in the downlink with up to 7 LTE RF bands supported with thelowest LTE power consumption in the industry. The platform supports all theleading open application processors for use in super phones and high-enddevices such as tablets as well as finding application in areas such asautomotive connectivity and M2M.

The MP5232 is a highly integrated platform based on a single die multi-mode Cat-4 LTE communication processor targeting the mid-tier volume LTEmarket by enabling smartphones in the $150-300 range. It offers high-performance graphics with high throughput mobile broadband to enablecompelling high-end user experiences.

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44 | Mobile Europe

Diameter Signaling

y any measure, 2012 was the year that

Diameter signaling and the Diameter Signaling

Controller (DSC) broke into the mainstream.

Early movers in the space, such as Acme Packet, Tekelec

and Traffix/F5, have brought new innovations to market,

while Diameter specialists like Diametriq and Ulticom

rolled out their own product introductions. Traditional

telecom infrastructure vendors have also moved into the

space by tying it to their work with LTE.

Interest isn’t going to taper off any time soon if you

consider the main sources of Diameter traffic generation

–policy messages, LTE service set-up and VoLTE.

None are expected to be on the decline through the

near-, medium- or long-term. This is why Exact Ventures’

forecasts of the DSC opportunity called out a market that

was approximately $10 million in 2011 growing an

average of more than 120 percent per year through 2016

– with shipments growing by 160 percent over the same

timeframe.

If the next few years are expected to witness blistering

Diameter growth, now is a good time to ask some basic

questions.

What is driving the Diameter Signaling Control market?

What are the sources of Diameter traffic? What are the

various products and functions used to deal with what

many have termed an impending Diameter signaling

storm? What do they do? How do operators need to think

about integrating all of these products into their

networks?

Diameter Signaling: What is it and whydo we care?

What is Diameter? If you asked the question of a school

age child, you might get the response, “twice the radius.”

While the context may be different – geometry vs.

telecom signaling – the answer is essentially accurate.

In the telecom context, diameter and radius are both

signaling protocols focused on AAA (authentication,

authorization, accounting) functionalities. Diameter,

however, is positioned as an improvement on radius.

AAA capabilities are enhanced while maintaining

backwards compatibility with radius. Hop-by-hop security

is replaced by end-to-end security. Reliability is improved

thanks to keep-alive messages and failure indicators.

Efficiency is improved by automatic peer discovery and a

32-bit alignment requirement that makes it easier on

processors.

Beyond the technical details of what Diameter is and

how it relates to radius, the current focus on Diameter

revolves around the sources of Diameter traffic – the

interactions, services and capabilities that generate

Diameter messages. While a laundry list of telecom

interfaces involving Diameter might seem like the

proverbial “alphabet soup,” a quick review of some key

ones (with an LTE focus) is useful:

� S6a: MME to HSS.� Cx: CSCF to HSS.� Sh: Application Server to HSS. � Gy / Gx: EPC to Online Charging System and PCRF.� Ro / Rx: CSCF to Online Charging System and PCRF.

The point here isn’t to describe an LTE network

architecture; rather, it is to highlight the role Diameter

plays in the EPC control plane, IMS architectures, policy,

VoLTE and simply getting users attached to (and billed

on) the LTE network.

In other words, Diameter is directly implicated in

most of what’s tied to mobile broadband services and

service enablement going forward. There are still

plenty of 3G networks delivering mobile broadband

services and Diameter plays a role in 3G policy and

Peter Jarich looks at this emerging technology and explains why we can expect to seeand hear a lot more about it this year

DIAMETER SIGNALING:WHY THE BUZZ HAS ONLYJUST BEGUN

B

Global Diameter

messages per second,

from the Tekelec

Diameter Signaling

Index, 2012.

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Mobile Europe | 45

Diameter Signaling

IMS implementations as well.

Yet, with the Global mobile Suppliers Association

forecasting 234 commercial LTE networks at the end of

2013 (up from only 47 at the end of 2011, and 17 at

the end of 2010), it’s understandable that the interest in

Diameter is being driven by LTE and everything it

entails.

Diameter Signaling: The tools to dealwith an impending flood

While the growth in Diameter traffic is still, largely,

positioned as a function of LTE uptake, vendors must be

credited for toning down the early “signaling storm”

rhetoric; as DSC RFPs continue and Diameter makes it on

to the radar screens of most forward-looking operators,

vendors have begun talking up “good signaling.”

Rather than focus on the problems associated with

signaling bottlenecks, the ways in which Diameter

benefits the network and the carrier have come to the

fore.

What hasn’t received as much attention, however, is

the notion that the Diameter Signaling Controller is a

concept more than it is a single product type or network

function. At a high level, vendors describe the DSC as

filling a handful of distinct roles: serving as a relay, proxy

or redirect agent for Diameter interactions, helping to

scale an operator’s network to efficiently cope with

Diameter traffic and efficiently route diameter messages,

deliver Diameter traffic load balancing, session binding

and congestion control… all while interworking with SS7

and other Diameter networks.

“Under the hood,” however, it is more instructive to

think about the DSC in terms of the roles is plays and the

specific functions they require. Specialist DSC vendor

Diametriq, for example, categorizes these simply as

Diameter in the “home” LTE network vs. Diameter in

support of roaming.

� Diameter & the home network: As noted earlier, within

an operator’s own network, a number of different

products “talk” Diameter to one another: IMS (CSCF),

policy (PCRF), EPC (MME, P-GW) and subscriber

database (HSS) assets. Easy enough until a single PCRF

gets overwhelmed by a mass of point-to-point P-GW

links. Or, the same happens to an HSS or charging

system. Or, multi-vendor Diameter interoperability

issues between PCRF and IMS assets crop up. Or, the

presence of multiple PCRF instances makes “session

binding” of a given user’s Diameter interfaces a

necessity. Or, interworking is needed with legacy SS7

elements like an HLR. You get the idea. A mass of

complicated Diameter interactions makes binding

(connecting the right Diameter end-points), load

balancing and interworking critical. The DSC provides

that functionality.

� Diameter & network roaming: If interoperability, session

binding and load balancing are the roles a DSC plays in

the “home” network, the dynamic is different in

supporting roaming across LTE networks. To be sure,

interoperability plays an issue, whether it’s cross-vendor

interoperability or interworking between LTE and 2G or

3G networks. Perhaps more importantly, at the network

edge (of both the home and visited network) border

security and topology hiding are important for

minimizing the risk of network attacks. Again, the DSC

provides this functionality.

Diameter and the integration questionIn glossy vendor product brochures and PowerPoint

presentations, the DSC sits cleanly in the middle of the

other network components it needs to connect. In the

real world, integration of the DSC into an operator’s

network is a much more complicated question of how

and where the product gets deployed – how it fits into

existing network architectures.

From an architecture perspective, the discussion of

DSC deployment sometimes comes with the assumption

of an IMS implementation. The connection is logical. As

we noted, the HSS (subscriber database in an IMS

context) speaks Diameter. And where VoLTE is expected

to drive Diameter traffic, the assumption that DSCs and

IMS are connected is doubly understandable: VoLTE is

built on IMS. It’s also wrong. Diameter doesn’t assume

IMS. It can’t.

Remember that DSC use cases revolve around more

than the HSS. They involve load balancing and

interworking between a myriad of network elements,

Diameter signaling messages

by service type, from the

Tekelec Diameter Signaling

Index, 2012.

Vendors mustbe credited fortoning down theearly “signalingstorm” rhetoric

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46 | Mobile Europe

Diameter Signaling

many of which are being deployed with or without IMS.

They involve service roaming security and interworking,

again, whether or not IMS is part of the equation.

If IMS isn’t necessarily implied in the context of a DSC

deployment, how are products deployed? How do they

fit in?

Where our earlier discussion pointed to load balancing

across elements like the HSS and PCRF, the DSC as a

front-end for those assets is an obvious deployment

model. Where the discussion pointed to support for

interoperability or security functions, deployment in

tandem with Session Border Controllers is an obvious

model.

It’s not surprising, then, that policy and SBC leaders

like Tekelec and ACME Packet are also DSC market

leaders, or that Ericsson would build its DSC on the

same platform that houses its IMS, HSS and policy

products – the Ericsson Blade System.

Of course, continuing with the vendor theme, there

are plenty of standalone DSC vendors (Traffix/F5 or

Diametriq, for instance) pointing to the fact that DSC

deployments don’t need to be linked to any adjacent

product deployments at all.

What may be more important, then, is the

functionalities supported by a DSC versus the role it’s

meant to play. While we might call a product a

Diameter Signaling Controller, the class encompasses

multiple functionalities: Diameter Routing Agent

(think load balancing and session binding), Diameter

Edge Agent (think security and roaming),

Interworking Function for roaming between LTE and

2G/3G networks… just to name a few of the functions

and their uses.

The key is to ensure that a given vendor and its

products are ready to support the functionalities needed

for an operator’s specific use cases, and that they have a

roadmap to support all of the functionalities the operator

might need going forward. Simply specifying in an RFP

that a product support “load balancing” or “session

binding” isn’t enough.

Where Do We Go From Here?The telecom world and telecom vendors, in particular,

are notorious for developing solutions in search of

problems when it should be looking for solutions to real

problems. How should we think about Diameter and the

DSC market through this lens?

The simple answer is based on how much we expect

Diameter traffic to grow going forward. How many more

messages can we expect? How quickly can we expect

them?

At a very basic level, integrator and R&D shop Tieto

makes a case for its Diameter signaling controller in terms

of network traffic and network usage. With the mobile

broadband user base expected to grow four-fold by

2020, and usage per user expected to grow by a factor of

10, the result is a 4,000 percent growth in signaling

network traffic. Other vendors – Tekelec and Diametriq –

have taken a more rigorous strategy, leveraging these

types of assumptions to develop and issue Diameter

signaling traffic model and, of course, justify the assertion

that Diameter traffic will increase.

At the same time (and, perhaps, more importantly),

Diameter traffic models are meant to lend insights into

why traffic will grow, allowing operators to tweak models

to their specific requirements and service rollout plans

while preparing for the impact of network and service

evolutions such as LTE roaming or 2G/3G interworking.

This last point bears repeating. As much as the

Diameter traffic models being developed by vendors, as

well as those that operators have developed themselves,

are tools meant to encourage investment in DSCs, they

are also important tools in helping operators understand

the nuances of the space.

After all, for every operator who believes 100 percent

in the need for a robust set of Diameter assets, there are

others who are dubious or don’t fully understand how

specific service plans will impact Diameter traffic.

In short, for all the hype surrounding it – justified

though it might be – the Diameter signaling control

market is still in its infancy. Vendors are still evolving their

solutions. Operators are still evaluating their options. Case

studies of successful DSC implementations, and failures

that could have been prevented by DSC deployments, are

still being collected.

While being attached to LTE and mobile broadband

traffic growth doesn’t hurt, this is why anyone who

expects the DSC buzz and messaging we saw in 2013 die

down in 2013 is destined to be disappointed.

For all thehype surroundingit the Diametersignaling controlmarket is still in itsinfancy

Diameter messages per

second, from the Tekelec

Diameter Signaling Index,

2012.

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