Understanding how IMS and NGNs will affect service delivery and billing

Understanding how IMS and NGNs will affect service delivery and billing

© 2005 ORGA Systems | All rights reserved | www.orga-systems.com

Key Success Factors and OutlookKey Success Factors and Outlook

Dirk SchmidtpottORGA SystemsHead of Product Management

IMS and BillingIMS and Billing

Why IMS and why now? Why IMS and why now?

What IMS providesWhat IMS provides










IMS and Convergence

Combine complementary technologies to create new products + services

Multimedia service for enriched communication experience

Voice/data enterprise services for more efficiency

Broadband/telecoms network services @ home for reduced costs

Flexible personal communications over multiple devices + channels

Charging through hybrid prepaid and postpaid accounts

Generate new revenues that counter declining ARPUfrom increasingly commoditized voice at reduced costs


Why IMS now?

Market demand exists

Broadband access widely available and used

Enriched communication experience

Digitization of media

Key protocols available and usable

Industry commitment to SIP, Diameter, Parlay (de facto standards)

Specifications have reached a stable, usable level

Devices and bandwidth available

GPRS almost everywhere, UMTS increasingly available

Smart phones, Data-card enabled laptops, Multi-network PDA’s


3G/WCDMA Market Growths

Latest survey by GSA (Global Mobile Suppliers Ass.) on 3G/WCDMA...

Networks 82 networks in 37 countries(+ 22 since 2004); further 7 in pre-commercial stage

Terminals 186 models from 26 suppliers(+ 70 in last 6 months)

Subscribers 30.79 mill. (July 05) + 13.9 mill. since end 2004 = 2 million net adds/month

Acc. to GSA + *Informa Telecoms & Media, published 17.08.2005 : www.cellular - news.com

+ 20 mill subs. CDMA2000/1xEV-DO


Mobile Data Subscribers (Users) - Worldwide

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005

Europe : Western

Europe : Eastern

USA/Canada

Asia-Pacific


IMS Benefits

„Access agnostic“ & Improved mobility - Networks become independent of access (Mobile, DSL, WLAN...) - Enables FMC & offers easier migration of internet applications - 3G Roaming for all services and & all types of customers

New applications + better QoS - Such as presence and video-conferencing as „blended“ (combinational) services

Better time-to-market for deployment of services - Standardized architecture - Open Interfaces to 3rd party developers

An „end“ to the vertical application “silos” - Resulting in lower CapEx and OpEx









IMS (IP Multimedia Subsystem) - Background

IMS is an open, 3GPP standardized and operatorfriendly NGN multi-media architecture which:

@

Provides centralized „service control & delivery“functionalities, in an additional infrastructure layer

Was originally designed for mobile networks...(3GPP Rel’5, March 2002)

„Evolution Path“ to „ALL-IP“ networks

Seen as „Fixed-Mobile Convergence “ & „Service“ enabler(CS + PS: fills gap between traditional telecomm and internet)

Is an „open“ BUT “operator centric” architecture (operators can „open up“ BUT still „control“ their networks)


MNOs rushed to deploy new IP/data services whichresulted in vertical application platforms (silos) . . .

... which provide dedicated functions to realize only one specific service !

IMS Vision: From Multiple „Vertical“ Silos . . .

Se

rvic

e 1

Se

rvic

e 2

Se

rvic

e N

Application

Subscriber data

Service delivery platform

Media functions

Application

Subscriber data


Media functions

Application

Subscriber data


Media functions

IN Nodes BillingPS domain

CS domain

OSSBSS


. . . To a Re-usable „Horizontal“ Service Delivery Platform

. . . that provides a better way to deploy and integrate services.

Key to success: standardized functionalities & standardized external interfaces.

Ser

vice

1

Ser

vice

2

Ser

vice

N

Subscriber data

Media functions

IP Multimedia Subsystem

Application Application Application

IN Nodes BillingPS domain

CS domain

OSSBSS


IMS provides 3 Functional Layers

The IMS services domain is a collection of logical functions in three functional layers:

Applications layer

Service Control layer

Transport (media and endpoint) layerGGSN, MSC, PSTN, IP Network

HSS, SLF

Application Servers

CSCFCall Session Control Function


IMS Provides Peer-To-Peer Sessions with Real-Time Capability

IMS enables „direct IP connectivity“ between terminals (fixed & mobile) for services like real-time data, voice and video...

Source: 3G Americas Report Outlook on Convergence 2005: http://www.3gamericas.org/pdfs/convergence_july2005.pdf


IMS Enabled/Enhanced Applications

Real-time Video Sharing (RTVS - see what I see)

Personalized Location andPresences Services (Find-Me...)

Multi-party Messaging

PoC (Push-to-Talk over Cellular) / VoIP

Combinational CS + PS servies (e.g. voice and IM)

Mobile (rich) Multi-Media Conferencing: Group Chat, Audio/Web/Videoconferencing

Multi-party gaming

Personalized Info Channels & Services (calendars, alerts)

Ringback Tones

Click-to-Dial (VoIP)


Most Of The Services Can Be Realized Without IMS...

but IMS „promises“...

to deliver standardized functions and to enable communication services via a number of „re-usable“ key mechanisms including:

Multimedia session negotiation and management (SIP Protocol)

QoS (i.e. during a multimedia / VoIP session)

Charging ! (DIAMETER)

Mobility management & roaming

3rd. party service development interfaces

& integration of 3rd. party content









IP & Data Billing Today

FREE / BARRED

URL

ON NET

OFFNET

QoSTIME of

DAY

PEAK,OFF

PEAK

TIME (min)

VOLUME (KB)

SUBSCRIPTION

BUNDLES

BEARER

UMTSGPRSWLAN

There is no data price plan scenario that does not exist !

All „parameters & combinations“ are in actual use.


CONTENT (DOWNLOADS)games, music, ringtones, screensavers...

P2P MESSAGING (e.g. MMS)usually with flat fees (80% regardless of kB size)

M2P/P2M (BROWSING, FILE & DATA TANSFER)

Today`s Pricing Strategies for Data Services

PREMIUM SMS + Reverse Charging

Pay-per-event or bundled

Pay-per-use (sessions: min. or kB)


COMMERCIAL Implications

Opportunity to charge for new/enhanced services& for certain IMS functions (e.g. presence)

„KISS principle“ (Keep It Smart & Simple) ( perceived value-based pricing favoured )

Bearer prices > more „flat & bundled“ Content pricing > „supermarket“ model

Context/Content sensitive: Barred / Allowed / Free (Black & White Lists) Revenue Sharing / 3rd party content

More „prepaid options“ for „postpaid customers“

(cost control, optional payment mechanisms)


TECHNICAL Implications / New Dimensions

DIAMETER protocol will dominateDIAMETER Accounting Requests & Answer (ACR & ACA) via Rf for Offline Charging Credit-Control-Request & and -Answer (CCR / CCA) via Ro for Online Charging

Billing on the basis of QoS / SLAs(QoS changes: precedence/priority, reliability, delay)

Correlation of IMS Services IMS Charging Identifier (ICID) Access network charging identifier Inter Operator Identifier (IOI) Application Charging Identifier (ACID)

Enhanced real-time interactionand more AoC (Advice of Charge)

Credit Pooling - Diameter Credit Control Appl. - see 3GPP TS 32.240


3GPPs` Architecture for NextGen Billing (TS 32.240)

Billing Domain

ONLINE CHARGINGOFFLINE CHARGING

WLAN

BGCF

MGCF

MRFC

SIP AS

CRF

AF

CDF

TPF

CS -NE

SGSN

GGSN

CGF

OCSIMS

GWF

P -CSCF

I-CSCF

S -CSCF

Service -NE

IMS

Offline charging based on DIAMETER via the Rf "Reference Point”









Key Success Factors

Blended services

Simple, transparent, value-based pricing

Attractive bonus schemes

Real-time features

Advice of Charge

Bonus notifications

Correlation for multi-channel/service sessions

Broad acceptance of de facto standards

Parlay / X Web services for applications

Diameter for charging

SIP for session control


IMS Outlook

Time line

2005: First trials

2006/2007: First commercial deployments

2007 ff.: Mass market deployment

OCS as key charging element

IMS will increase the need for PRM and CRM

Business process automation

Revenue sharing

Revenue assurance

Dispute management


Thank You!

ORGA Systems enabling services GmbHAm Hoppenhof 3333104 Paderborn

Tel: +49 (0) 52 51 889-3855Fax: +49 (0) 52 51 889-3707

[email protected]

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Understanding how IMS and NGNs will affect service delivery and billing