“How to Make a lot more Money
from your Network”
TLEN 5510
Future of Inter-Networking
Robert Duncan
Transaction Network Services
rduncan@tnsi.com
+1 (303) 810-2634 (m)
Topics

Interconnection of Networks
 Why?
 How?
Future: All-IP Network Interconnection (IPX)
 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
Hub
Connections:
n*(n-1)
n
Telephone
Toll
eXchange
Local
eXchange
Local
eXchange
Local
eXchange
Local
eXchange
WHY Interconnect networks? More subscriber connections, traffic, revenue
Network Interconnection
eXchange
Network
Network
WHY use an eXchange?
Network
Network
Fewer network connections, Lower cost
New Network Interconnection
eXchange
New
Network
Network
Network
Network
> 1000 Mobile networks!
WHY use an eXchange?
Fewer network connections, Lower cost
Metcalfe’s Law
Connecting Networks Creates Value
Value (Network A) + Value (Network B) = ???
 Example:

 Value
(Network A) = 1,000,000 subscribers’ traffic
 Value (Network B) = 1,000,000 subscribers’ traffic
1
1
…
2
1,000,000
2…
S1,000,000
1
1
+
2
1,000,000
1
=
2
…
S1,000,000
1,000,000
1
2
…
2…
…
1
2,000,000
2…
S1,000,000
…
S2,000,000
Why Inter-Networking?

Maximize Revenue
… at Minimum Cost
(Metcalfe’s Law)
Convergence
Ahead
INTER-NETWORK FUTURE
From Circuit to Packet
Cellular Calls Connect via _____?
Current Inter-Network Connections
Fixed
Network
Telephone
eXchange
Mobile
Network
Fixed
Network
Mobile
Network
Any
Disadvantages?
IP
Network
IP
Network
Disadvantages of Public Telephone Connections
Fixed
Network
Mobile
Network
IP
Network
Telephone
eXchange
↑ Cost
↑ Complexity
↓ QoS
↓ Features
Fixed
Network
Mobile
Network
IP
Network
Native Inter-Network Connections
Fixed
Network
Telephone
eXchange
Mobile
Network
Fixed
Network
Mobile
Network
IP
eXchange
IP
Network
IP
Network
Today: Mobile Connects via Public Telephone (PSTN)
PSTN
(LEC + LD)
STP
MSC
SGSN
MSC
Data
BG
GRX
BG
SGSN
Op A
Circuit Voice
Op B
Circuit Voice
Circuit Voice
16
Tomorrow: Mobile connects via IP
PSTN
Existing technology
Not All-IP
(LEC + LD)
STP
MSC
MSC
MSC
Server
MSC
Server
SGSN
MGW
Data
BG
IPX
SIP
Proxy
BG
ENUM
Op A
Circuit Voice
SGSN
MGW
Op B
Packet Voice
Circuit Voice
17
Future: LTE connects via IP
PSTN
LTE/All-IP
(LEC + LD)
STP
MSC
MSC
CSCF
CSCF
SGSN
MGW
Data
BG
IPX
SIP
Proxy
BG
ENUM
Op A
Packet Voice
SGSN
MGW
Op B
Packet Voice
Packet Voice
18
Choosing the Least Cost Route for Voice Connections
19
IPX Provides Voice & Data Connectivity
A Common Connection Point for Voice & Data
ISPs
MNOs
Packet Data
Packet Voice
TNS
IPX
GSM,
GPRS/UMTS
Operators
ASPs
SPs
CDMA Operators
FNOs
Benefits of Native (IP) Connections
↓ Cost
 ↓ Complexity
 ↑ QoS
 ↑ Features

<10% of Current
Flat
Fewer vocoders
Unobstructed operation
International LD:
$0.0500/MOU
Current LEC interconnect:
$0.0025/MOU
Current VoIP interconnect:
$0.0005/MOU
100X less
revenue/minute
Observing this Trend in Use

International LD (greatest margins) use of IP
 2006:
2% to 4% of all VoIP traffic
goes through a peering service
 2010: Over 50% International Voice via IP

2010: Mobile-Mobile use of IP eXchange (IPX)
INTER-NETWORK FUTURE
An IP eXchange (IPX)
All Operators Can Use IP eXchange (IPX)
MNOs
ISPs
IPX
SPs
ASPs
FNOs

Applicability
–
–
–
© GSM Association 2009
–
Mobile Network Operators (MNOs)
Fixed Network Operators (FNOs)
Internet Service Providers (ISPs)
Application Service Providers (ASPs)
Bridging the Mobile World TM
Aicent IPX Viewpoint
Market Needs
MNOs needs to support a wide range of multimedia-based application with high
quality.
FNOs are developing Next-Generation Networks
ISPs & ASPs are offering more content/application services
All entities want to interconnect each other in a controlled, efficient, profitable
and cost-effective manner.
IP Interworking
IP is the common protocol of above networks and service.
IP Packet eXchange (IPX) is a standardized solution for interconnecting various
service providers over a global IP network with high QoS.
Aicent Inc. Proprietary and Confidential
26
IPX Interconnect Principles
Openness
Cascading payments
–Open to everyone
–cascading of revenues from End to End
–Ubiquitous access (fixed, mobile, ISP or ASP)
–Payment by whoever perceives the value
–choice (in addition to open Internet)
–transparent value-based service pricing
Quality
Efficiency
–guaranteed QoS (E2E SLA, Reliability, Capacity)
–ubiquitous Service via single Gateway
–quality relationship with your IPX Provider
–multilateral commercial agreements
–security (accountability, spam reduction)
–flexibility & scalability
IPX TRUSTED ENVIRONMENT
ISP
FNO
MNO
Private IPX
Domain
IPX 1
IPX 2
ISP
FNO
MNO
IPX 3
INTERNET
Confidential
Mobile
27
Fixed
Peering Ensures Competition, Choice of IPX Provider
IPX
MNOs
IPX
FNOs
IPX
IPX
SPs
ASPs
ISPs
© GSM Association 2009
Layers of IPX Functionality
Billing
ENUM
Inter-Carrier
Clearing
Billing
Routing and
Addressing
Service Aware for
event-based and
stream-based traffic
Signaling
Network
VoIP
Traffic Detection for
routing, charging, and
multi-lateral destination
policing
Media
Conversion
Fixed & Mobile
Termination
29
Quality
Openness
For more information, please visit
www.gsmworld.com/technology/ipi
or email us at ipi@gsm.org
Thank you
Cascading
Payments
Efficiency
BREAK
NETWORK ROAMING
Why?
How?
Roaming
eXchange
Mobile
Network
Network
Network
Network
Why Roam?
↑ Coverage
 ↑ Revenue

 Roam
out of your Network
 Roam in to your Network

(Retail revenue)
(Wholesale revenue)
Who benefits?
 Subscriber
 Your
network
 Roaming partner network
(“Home” network)
(“Serving” network)
Data Access
Home
Network

Data
Radio
Control
Service
Internet
Gateway

 
Home AAA
Subscriber
Database
Data Access Steps:
1)
Mobile:
2)
Mobile& System:
3)
Serve:
4)
Serve:
5)
System:
6)
System:
Select system
Attach and establish session
Authenticate Mobile
Authorize Mobile
Connect
Accounting
User Data (Mobile IP)
AAA signaling (RADIUS)
Data Access when Roaming
Service
Home
Network
Internet
Radio
Control
Roaming
eXchange
Data
Gateway


Home AAA
Subscriber
Database
Serving
Network



Proxy 

AAA
Rating &
Billing

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
Data
Gateway


Radio
Control
 
Serving AAA
Subscriber
Database
User Data (Mobile IP)
AAA signaling (RADIUS)
Data Access when Roaming on Wi-Fi
Service
Home
Network
Internet
Radio
Control
Roaming
eXchange
Data
Gateway


Home AAA
Subscriber
Database
Serving
Wi-Fi Network
Internet


Proxy 

AAA
Rating &
Billing

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


Data
Gateway

 
Serving AAA
Subscriber
Database
User Data (Mobile IP)
AAA signaling (RADIUS)
NETWORK ROAMING
As a network offload solution
November 3, 2010
Reducing the Cost of Data:
Wi-Fi Roaming as an Extension
of CDMA Roaming
Marcio Avillez
VP, Network
Offerings
Robert Duncan
Director, Product
Management
Agenda
•
Problem: Exponential Cost (Data use)
[“How to Cope with Future Demand for Data Services,”
CDG IRT, Tokyo, April 2009]
•
•
Solution: Reuse Established CDMA Data Roaming
Benefits
– Reduced OPEX (Cost of Roaming)
– Reduced CAPEX (Increased Capacity, Coverage)
– Reduced Churn
•
Implementation
A Tsunami of Connected (Mobile Internet) Devices
Proprietary & Confidential
44
Problem: Traffic (Cost) Growing Faster than Revenue
“How to Cope with Future Demand for Data Services,”
Robert Duncan, TNS, Tokyo CDG IRT, April 2009]
Sources: Cisco, from Operators’ network data and Analysts;
“Mobile data revenue will double by 2012,” Dan Locke, Analyst Insight, Pyramid, 4/2008]
45
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
Korea Carriers
Vodafone
O2 UK
T-Mobile
Verizon
+ Wayport Investment + Builds
+ 3 Operators build Wi-Fi
+ BT OpenZone
+ The Cloud (UK)
+ T-Mobile
+ Boingo
Current deployments validate
Wi-Fi as beneficial across
multiple carrier and user
scenarios
2008
2009
2010
Wi-Fi Roaming Solution (looks like Data Roaming via CRX)
Reuses CRX functionality (looks like Data roaming)
to reduce impact on Operator
Visited Operator
Home
Operator
CRX
Rating /
Clearing
Wi-Fi
Connection
Manager
HLR Proxy/
AAA Proxy
Visited Wi-Fi Operator
Reporting/
Customer
Service
Signaling
Gateway
3G Wi-Fi Offload – Primary Use Cases
International Use cases
– Cost Avoidance: Leverage Wi-Fi to lower roaming costs for
international users
– Revenue/Coverage Expansion: Leverage Wi-Fi to expand adoption
and coverage of international roaming services
Domestic Use Cases
• Capex Avoidance/Management: offload as a capex management tactic or
a hedge against unpredictable or exponential data growth
– Owned Networks or Commercial Networks
• Roaming Cost Avoidance: regional domestic players who pay to roam on
national carrier networks
Potential Concerns
– Cannibalizes roaming revenue
– Operator sets Retail Price & therefore revenue
Benefits of Data Offload via Wi-Fi Roaming
 OPEX Cost Savings
• Wi-Fi per MB rates lower than equivalent roaming costs
 CAPEX Savings
• Increased Capacity with offload in high-usage venues:
Airport, Hotel, Conference center, City, Cafe, etc.
• Indoor Coverage
 Reduced Churn (avoid sticker shock)
 No network impact
• Reuses existing Data Roaming solution (CRX)
Device Form Factor Trends
• Smartphones consume 65% of bandwidth
– Android, iPhone, Symbian and RIM comprise ~90%
Forecast: Global Smartphone and Modem
TBs/Month
Monthly Data Consumption
Forecast: Smartphone Sales by OS
100%
1,250
252M
384M
816M
Other OS
iOS
80
RIM
1,000
60
Android
750
40
Smartphones
500
250
Modems
0
2009
2010
2011
2012
2013
Source Data: Morgan Stanley, 2009; Cisco VNI, 2010, iPass estimates
20
0
Other
OS%
Symbian
2010
2011
2014
10%
12%
15%
Source: Gartner (August 2010)
SUMMARY

Interconnection of Networks
 Why:
_______
 How: _______
Future: All-IP Network Interconnection
using ______
 Roaming among Networks

 Why:
_______
 How: _______
“How to Make a lot more Money
from your Network”
Making it Better!
How did this rate?
 How could this be better?

For the next class, please share your feedback
on the short Feedback form
Teacher Evaluation: Robert Duncan


Easiness





Easy A, easy class?
Clarity





Delivery of course Material
Helpfulness





Approachable, Easy to Communicate
What did you like?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
How could this material/presentation be improved?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Rate My Professor
http://www.ratemyprofessors.com/
Thank you!
--------------------------------------------
Q&A
--------------------------------------------