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TLEN 5510
Future of Inter-Networking
Robert Duncan Transaction Network [email protected]+1 (303) 810-2634 (m)
“How to Make a lot more Money from your Network”
Topics
Interconnection of NetworksWhy?How?
Future: All-IP Network Interconnection (IPX) Roaming among Networks
Why?How?
Intro
20 years in Mobile networks 30 years in Telecom (see “Bellhead”) Author (“Wireless Intelligent Networks”) Standards contributor, Chair Experience in Network Planning,
Engineering, Operations AT&T, Qwest/U S WEST Wireless TDMA, CDMA, GSM, WiMax, Wi-Fi, LTE
INTER-NETWORK CONNECTIONS
Why?
How?
Recurring Pattern
n*(n-1)Connections: n
Hub
Telephone
WHY Interconnect networks? More subscriber connections, traffic, revenue
eXchangeLocal eXchangeLocaleXchangeLocal eXchangeLocal
eXchangeToll
Network Interconnection
Network Network Network
eXchange
Network
WHY use an eXchange? Fewer network connections, Lower cost
New Network Interconnection
> 1000 Mobile networks!
Network Network Network
eXchange
NetworkNew
WHY use an eXchange? Fewer network connections, Lower cost
Connecting Networks Creates Value
Value (Network A) + Value (Network B) = ??? Example:
Value (Network A) = 1,000,000 subscribers’ trafficValue (Network B) = 1,000,000 subscribers’ traffic
Metcalfe’s Law
1 2… S1,000,000
1
2
…
1,000,000
1 2… S1,000,000
1
2
…
1,000,000
1 2… S1,000,000 … S2,000,000
1
2
…
1,000,000
1
2
…
2,000,000
+ =
Why Inter-Networking?
Maximize Revenue (Metcalfe’s Law)
… at Minimum Cost
INTER-NETWORK FUTURE
From Circuit to Packet
Convergence Ahead
Cellular Calls Connect via _____?
MobileNetwork
Current Inter-Network Connections
TelephoneeXchange
IPNetwork
FixedNetwork
MobileNetwork
IPNetwork
FixedNetwork
Any Disadvantages?
MobileNetwork
Disadvantages of Public Telephone Connections
TelephoneeXchange
IPNetwork
FixedNetwork
MobileNetwork
IPNetwork
FixedNetwork
↑ Cost↑ Complexity↓ QoS↓ Features
MobileNetwork
Native Inter-Network Connections
TelephoneeXchange
IPNetwork
FixedNetwork
MobileNetwork
IPNetwork
FixedNetwork
IPeXchange
Today: Mobile Connects via Public Telephone (PSTN)
16
GRXBG BG
PSTN(LEC + LD)
STP
MSC MSCSign
alin
gVo
ice
SGSNSGSN SGSNSGSN
Op A Op B
Data
Circuit Voice Circuit VoiceCircuit Voice
Tomorrow: Mobile connects via IP
17
IPXMSC Server
MSC Server
MGWMGW
MSC Server
MSC Server
MGWMGW
BG BGSIP
Proxy
SIPProxy
Packet Voice Circuit VoiceCircuit Voice
PSTN(LEC + LD)
STP
Existing technologyNot All-IP
Data
Signaling
SGSNSGSN SGSNSGSN
Op A Op B
MSC MSC
VoiceENUM
Future: LTE connects via IP
18
Op A
IPX
Op B
CSCFCSCF
MGWMGW
CSCFCSCF
MGWMGW
BG BGSIP
Proxy
SIPProxy
PSTN(LEC + LD)
STP
LTE/All-IP
SGSNSGSN SGSNSGSN
MSC MSC
Data
Voice
Signaling
ENUM
Packet Voice Packet VoicePacket Voice
Choosing the Least Cost Route for Voice Connections
19
IPX Provides Voice & Data Connectivity
FNOs
ASPsSPs
MNOsISPs
GSM, GPRS/UMTS
Operators
CDMA Operators
A Common Connection Point for Voice & Data
TNS IPX
Circuit V
oice
Packet Voice
Packet Data
Benefits of Native (IP) Connections
↓ Cost <10% of Current ↓ Complexity Flat ↑ QoS Fewer vocoders ↑ Features Unobstructed operation
International LD: $0.0500/MOU
Current LEC interconnect: $0.0025/MOU
Current VoIP interconnect: $0.0005/MOU
100X less revenue/minute
Observing this Trend in Use
International LD (greatest margins) use of IP2006: 2% to 4% of all VoIP traffic
goes through a peering service2010: Over 50% International Voice via IP
2010: Mobile-Mobile use of IP eXchange (IPX)
INTER-NETWORK FUTURE
An IP eXchange (IPX)
© GSM Association 2009
All Operators Can Use IP eXchange (IPX)
FNOsASPsSPs
MNOs ISPs
IPX
Applicability– Mobile Network Operators (MNOs)– Fixed Network Operators (FNOs)– Internet Service Providers (ISPs)– Application Service Providers (ASPs)
Bridging the Mobile World TM
Aicent Inc. Proprietary and Confidential 26
Aicent IPX Viewpoint
Market NeedsMNOs needs to support a wide range of multimedia-based application with high quality.FNOs are developing Next-Generation NetworksISPs & ASPs are offering more content/application servicesAll entities want to interconnect each other in a controlled, efficient, profitable and cost-effective manner.
IP InterworkingIP is the common protocol of above networks and service. IP Packet eXchange (IPX) is a standardized solution for interconnecting various service providers over a global IP network with high QoS.
Confidential 27
IPX Interconnect Principles
Mobile
ISPFNO
MNO
IPX TRUSTED ENVIRONMENT
Private IPX
Domain
IPX 1 IPX 2
IPX 3
Fixed
ISPFNO
MNO
INTERNET
Openness– Open to everyone
– Ubiquitous access (fixed, mobile, ISP or ASP)
– choice (in addition to open Internet)
Quality– guaranteed QoS (E2E SLA, Reliability, Capacity)
– quality relationship with your IPX Provider
– security (accountability, spam reduction)
Cascading payments– cascading of revenues from End to End
– Payment by whoever perceives the value
– transparent value-based service pricing
Efficiency– ubiquitous Service via single Gateway
– multilateral commercial agreements
– flexibility & scalability
© GSM Association 2009
Peering Ensures Competition, Choice of IPX Provider
FNOs
SPs
IPX IPX
IPX IPX
MNOs
ISPs
ASPs
Layers of IPX Functionality
29
Clearing
Network
Signaling
ENUM
Billing
MediaConversion
Traffic Detection for routing, charging, and
multi-lateral destination policing
Service Aware for event-based and
stream-based traffic
Routing and Addressing
Fixed & MobileTermination
VoIP
Inter-Carrier Billing
Openness
Quality
CascadingPayments
Efficiency
For more information, please visit
www.gsmworld.com/technology/ipi
or email us at [email protected]
Thank you
NETWORK ROAMING
Why?How?
Roaming
Network Network
eXchange
NetworkMobile Network
Why Roam?
↑ Coverage ↑ Revenue
Roam out of your Network (Retail revenue)Roam in to your Network (Wholesale revenue)
Who benefits?SubscriberYour network (“Home” network)Roaming partner network (“Serving” network)
Data Access
Data Access Steps:
1) Mobile: Select system
2) Mobile& System: Attach and establish session
3) Serve: Authenticate Mobile
4) Serve: Authorize Mobile
5) System: Connect
6) System: Accounting
Home AAASubscriber Database
Home Network
User Data (Mobile IP)
AAA signaling (RADIUS)
DataGateway
RadioControl
Service
Internet
Data Access when Roaming
Data Access while Roaming:
1) Mobile: Select system
2) Mobile & System: Attach and establish session
3) Serve: Authenticate Mobile
4) Serve: Authorize Mobile
5) System: Connect
6) System: Accounting
RoamingeXchange
Home AAASubscriber Database
Home Network
Serving AAASubscriber Database
ServingNetwork
RadioControl
Proxy AAA
Rating & Billing
User Data (Mobile IP)
AAA signaling (RADIUS)
DataGateway
DataGateway
RadioControl
Service
Internet
Data Access when Roaming on Wi-Fi
Data Access while Roaming:
1) Mobile: Select system
2) Mobile & System: Attach and establish session
3) Serve: Authenticate Mobile
4) Serve: Authorize Mobile
5) System: Connect
6) System: Accounting
RoamingeXchange
Home AAASubscriber Database
Home Network
Serving AAASubscriber Database
Serving Wi-Fi Network
Proxy AAA
Rating & Billing
User Data (Mobile IP)
AAA signaling (RADIUS)
DataGateway
DataGateway
RadioControl
Service
Internet
Internet
NETWORK ROAMING
As a network offload solution
Reducing the Cost of Data: Wi-Fi Roaming as an Extension of CDMA Roaming
November 3, 2010
Marcio AvillezVP, Network Offerings
Robert DuncanDirector, Product Management
Agenda
• Problem: Exponential Cost (Data use) [“How to Cope with Future Demand for Data Services,” CDG IRT, Tokyo, April 2009]
• Solution: Reuse Established CDMA Data Roaming• Benefits
– Reduced OPEX (Cost of Roaming)– Reduced CAPEX (Increased Capacity, Coverage)– Reduced Churn
• Implementation
A Tsunami of Connected (Mobile Internet) Devices
43Proprietary & Confidential
Problem: Traffic (Cost) Growing Faster than Revenue
44
Sources: Cisco, from Operators’ network data and Analysts;“Mobile data revenue will double by 2012,” Dan Locke, Analyst Insight, Pyramid, 4/2008]
Forec
ast:
25X tr
affic
incr
ease
Forecast: 2X revenue increase
“How to Cope with Future Demand for Data Services,” Robert Duncan, TNS, Tokyo CDG IRT, April 2009]
Exponential Cost - if not Controlled - will Exceed Revenue
“Service providers deploying a multi-access offload strategy can expect savings in the range of 20 to 25 per cent per annum”
Leading Operators Adopt Data Offload to Wi-Fi
• AT&T + Wayport Investment + Builds• Korea Carriers + 3 Operators build Wi-Fi • Vodafone + BT OpenZone • O2 UK + The Cloud (UK)• T-Mobile + T-Mobile• Verizon + Boingo
2008 2009 2010
Current deployments validate Wi-Fi as beneficial across multiple carrier and user
scenarios
Wi-Fi Roaming Solution (looks like Data Roaming via CRX)
Visited Wi-Fi Operator
HomeOperator
CRX
Visited Operator
Reporting/Customer
Service
HLR Proxy/ AAA Proxy
Rating /Clearing
Signaling Gateway
Reuses CRX functionality (looks like Data roaming) to reduce impact on Operator
Wi-FiConnection
Manager
3G Wi-Fi Offload – Primary Use Cases
International Use cases– Cost Avoidance: Leverage Wi-Fi to lower roaming costs for
international users– Revenue/Coverage Expansion: Leverage Wi-Fi to expand adoption
and coverage of international roaming services
Domestic Use Cases• Capex Avoidance/Management: offload as a capex management tactic or
a hedge against unpredictable or exponential data growth– Owned Networks or Commercial Networks
• Roaming Cost Avoidance: regional domestic players who pay to roam on national carrier networks
Potential Concerns– Cannibalizes roaming revenue– Operator sets Retail Price & therefore revenue
Benefits of Data Offload via Wi-Fi Roaming
OPEX Cost Savings • Wi-Fi per MB rates lower than equivalent roaming costs
CAPEX Savings• Increased Capacity with offload in high-usage venues:
Airport, Hotel, Conference center, City, Cafe, etc.• Indoor Coverage
Reduced Churn (avoid sticker shock)No network impact
• Reuses existing Data Roaming solution (CRX)
0
250
500
750
1,000
1,250
TBs/Month
2009 2010 2011 2012 2013
Smartphones
Modems
Device Form Factor Trends
• Smartphones consume 65% of bandwidth– Android, iPhone, Symbian and RIM comprise ~90%
0
20
40
60
80
100%
2010
252M
2011
384M
2014
Android
Symbian
RIM
Other OS
iOS
816M
10% 12% 15%OtherOS%
Source: Gartner (August 2010)
Forecast: Smartphone Sales by OS
Source Data: Morgan Stanley, 2009; Cisco VNI, 2010, iPass estimates
Forecast: Global Smartphone and Modem Monthly Data Consumption
Thank you!
--------------------------------------------
Q & A--------------------------------------------