1 © 2006 cisco systems, inc. all rights reserved. cisco public mobility trends: convergence of...

1© 2006 Cisco Systems, Inc. All rights reserved. Cisco PublicMobility Trends: Convergence of Services Using IP-based Network Solutions

Mobility TrendsConvergence of Services

Using IP-based Network Solutions

Dan KurschnerStrategic Business ManagerLatin Am. Mobility Segment

Cisco Systems

June 21, 2006


The Challenge

People have embraced the personal computer for communication, work, education, shopping, and entertainment. Now they want all these capabilities to “Go Mobile”. The route to successfully filling this need is through IP-based convergence of the Wireline and Wireless networks. This includes what we traditionally placed in the realms of Television, ISPs, as well as Fixed and Mobile Telecom Providers.


The Need

• Service Providers need to become Multiple Service Providers

– Provide Voice, Data, Video, Mobility, etc…

• Provide seamless handoff between Fixed and Mobile devices

• Bundle services for convenience and cost benefits

• Allow flexibility so end users can personalize their services

We need to change the way we think about our processes and operations as well as our network technology


The Way

• Use Intelligent IP Network solutions to truly converge networks

• Support both IMS and Non-IMS over the same network

• Identify “Points of Convergence”

– To Reduce Expense

– To Build Revenue

• Enable Self-Service

• Bundle to keep your customers and defray costs

• Embrace Content Providers and Over-the-Top Services

– Make them an ally or they may become your nemesis

• Work with a IP-Savvy Strategic Partner that can help you address Voice, Video, Data, Mobility via true IP solutions


Agenda

• Drivers for Network Convergence by Perspective:

The Fixed-Line SP

The Mobile SP

• What Convergence can mean to:

The User

The Service Provider

• Areas of Convergence

Core

Service/Control

Applications

• Building the Converged Network today with focus on the future

SP-NG with IMS Migration

• Summation


Drivers for Convergence


Fixed-Line Drivers for Convergence

• Win back voice minutes from mobile operator

• Offer new level of convenience to customers

• Grow ARPU

• Drive Broadband Adoption with services

• Reduce OPEX

FMC Opportunities

• Access line and Revenue erosion PSTN voice

• Grow Broadband in a profitable way

• High OPEX due to parallel networks

• Customers demand Mobility and service convenience

• Pressure on Enterprise Business

Challenges


Mobile Operator Drivers for Convergence

• Strengthen Enterprise business

• Reduce churn through sticky service

• Attract new customer through service innovation

• Improve in building coverage

FMC Opportunities

• Need to control OPEX

• Gain traction in Enterprise market

• Pressure on termination rates

• Data service adoption slow

• Churn

• In Building Coverage

Challenges


Market Drivers for Fixed-Line SP

• Fixed line operators are increasingly looking for alternatives

• Access line loss continues while VoIP and Mobility adoption is accelerating

• A converged wireless/wireline offer could slow the line erosion and drive ARPU


Fixed-to-Mobile Substitution will accelerate

Even the mature population are considering a single mobile device

Fixed-to-mobile substitution by age group.

% of respondents

Will substitute after 2 years

Will substitute within 2 years

Have substituted

18-25 26-35 36-45 46-55 >55Age

18

7

12

16

6

105

5

20 22

5

4 3

4

25


Consumers and Business already seeing the first stages of Convergence

• Operators bundling minutes for use in either fixed or mobile

Mobile minutes provided in service plan can be used for free fixed long distance calling

• Operators bundling services to provide common bill and lower cost to consumer

E.g.: SBC delivers fixed phone, DSL, satellite video and mobile voice (with Dish Network and Cingular)

• Operators building in-building expanded mobile coverage solutions

E.g.: Nextel in-building picocells with Radioframe


What Convergence can mean to the End User and to the Service Provider


The subscriber should not need to think about FMC. However, they do want benefits that FMC can provide

• Easy and affordable - Anywhere, anytime. Voice, messaging, multimedia, presence, VPN, corporate apps, etc.

Home, Work, Roaming, No service interruption due to lack of signal

• Converged FunctionalityPhones, smartphones, PDAs, laptops, entertainment systems, etc.

Voice, Data, Video, Business Tools, Fun

• Bundled OfferingsOne bill – many services, Follow-me calling, Voice, Data, Entertainment, Business tool.

If I give you all my business, give me a discount and a cool device.

End User PerspectiveResidential


End User PerspectiveEnterprise

• Callers have to try multiple numbers to reach a mobile worker

Feature: Single business number reach

• Mobile workers must check two voice mail boxes (cell and enterprise)

Feature: Single voice mail box

• Mobile workers must interrupt conversations when changing locations

Feature: Desktop pickup and Cell phone pickup

• Cellular roaming costs are high, particularly when crossing technologies

Feature: Dual-Mode

• Cellular users cannot access the IPT network resources

Feature: Data Service Roaming


FMC from the SP’s View-Point

Reduce costs and build subscriber-ship and billable usage

• New technology needs to help reduce OPEX and CAPEX expenditures

• What is implemented today should serve as the foundation of the next generation network

• Need to reduce churn

• Need to offer more services – some that we simply do not have at this time

• A bundle of Fixed-Mobile-Broadband is required


SeamlessMobility

Handover between WLAN and cellularVoice and Data ServicesDual Mode TerminalsSingle Number Reach

One NumberOne MailboxOne Directory

Data Service Roaming GPRS+WLANService Roaming Dual Mode Terminals

ServiceIntegration

Service Convergence

Single Bill Voice+Data+Mobile

Bundle DiscountsSeperate Terminals

BundledService


Areas of Convergence


Convergence can occur in four areas

Areas of Convergence

• Three Layered NetworkCoreService/ControlApplications

• Devices


INTELLIGENT INFORMATION NETWORKINTELLIGENT INFORMATION NETWORK

3 Layered NetworkA

PP

LIC

AT

ION

C

ON

VE

RG

EN

CE

AP

PL

ICA

TIO

N

CO

NV

ER

GE

NC

E

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

TransportTransport

O P

E R

A T

I O

N A

L

L

A Y

E R

S

E C

U R

I T

Y

L

A Y

E R

NE

TW

OR

K

CO

NV

ER

GE

NC

EN

ET

WO

RK

C

ON

VE

RG

EN

CE

Application &Policy Function

Policy Enforcement

Points


Policy Enforcement

Points

Service ExchangeService

Exchange

ParentalControl

VoIPover

Mobile

Picture Messaging

EntertainmentAnywhere

Push to Talk

Mobile Gaming

RANAggregation

RANAggregation

RadioRadio IP/MPLSCore

IP/MPLSCore

RANCellsite

RANCellsite

RoutingRoutingRoutingRouting

MulticastMulticastMulticastMulticast

SecuritySecuritySecuritySecurity

QoSQoSQoSQoS AvailabilityAvailabilityAvailabilityAvailability

PerformancePerformancePerformancePerformance

ResilienceResilienceResilienceResilienceInterworkingInterworkingInterworkingInterworking

Service AwareService AwareService AwareService AwareL2L2//L3 VPNL3 VPNL2L2//L3 VPNL3 VPN



The Foundation – Core PlaneA

PP

LIC

AT

ION

C

ON

VE

RG

EN

CE

AP

PL

ICA

TIO

N

CO

NV

ER

GE

NC

E

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

TransportTransport

O P

E R

A T

I O

N A

L

L

A Y

E R

S

E C

U R

I T

Y

L

A Y

E R

NE

TW

OR

K

CO

NV

ER

GE

NC

EN

ET

WO

RK

C

ON

VE

RG

EN

CE


Policy Enforcement

Points


Policy Enforcement

Points


Exchange

ParentalControl

VoIPover

Mobile

Picture Messaging


Push to Talk

Mobile Gaming

RANAggregation

RANAggregation


IP/MPLSCore

RANCellsite

RANCellsite









The Core Plane

• The foundation of the network

• Capable of supporting the transport of all network services

Voice, Data, Video, Signaling, IT, OSS/BSS, etc

• Flexible enough to handle network problems

• Flexible enough to support rapid deployment of new services

Both product trials and full deployment

• Foundation for IMS as well as today’s needs


MPLSMPLS

Converged Core

• Mostly connectionless• IP/MPLS aware end-to-end• Reduced provision replication• Highly scalable• More CAPEX and OPEX efficient

Multiple Interworked Networks

• Often connection oriented• End-to-end provisioning• Scalability issues• CAPEX intensive• Less OPEX efficient

SP Core Networks are Evolving

Frame-Relay

RPRMetro

Ethernet TDMInternet

MPLS

DSL

ATM



The Service and Control PlaneA

PP

LIC

AT

ION

C

ON

VE

RG

EN

CE

AP

PL

ICA

TIO

N

CO

NV

ER

GE

NC

E

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

TransportTransport

O P

E R

A T

I O

N A

L

L

A Y

E R

S

E C

U R

I T

Y

L

A Y

E R

NE

TW

OR

K

CO

NV

ER

GE

NC

EN

ET

WO

RK

C

ON

VE

RG

EN

CE


Policy Enforcement

Points


Policy Enforcement

Points


Exchange

ParentalControl

VoIPover

Mobile

Picture Messaging


Push to Talk

Mobile Gaming

RANAggregation

RANAggregation


IP/MPLSCore

RANCellsite

RANCellsite









The Service and Control Plane

• Identifies the subscriber

• Notes services available

• Controls access, charging, quotas, etc

• Service set-up and take-down

• Supports dynamic changes, upgrades, etc.

• Service and Control Plane must have the flexibility to support both IMS and Non-IMS Architecture



Subscribers View – Application PlaneA

PP

LIC

AT

ION

C

ON

VE

RG

EN

CE

AP

PL

ICA

TIO

N

CO

NV

ER

GE

NC

E

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

SE

RV

ICE

C

ON

TR

OL

C

ON

VE

RG

EN

CE

TransportTransport

O P

E R

A T

I O

N A

L

L

A Y

E R

S

E C

U R

I T

Y

L

A Y

E R

NE

TW

OR

K

CO

NV

ER

GE

NC

EN

ET

WO

RK

C

ON

VE

RG

EN

CE


Policy Enforcement

Points


Policy Enforcement

Points


Exchange

ParentalControl

VoIPover

Mobile

Picture Messaging


Push to Talk

Mobile Gaming

RANAggregation

RANAggregation


IP/MPLSCore

RANCellsite

RANCellsite









The Application Plane

What your subscribers see and use

• Traditional Telephony Services

• VoIP

• Data Services (Fixed, Nomadic, Mobile)

• Push-to-Talk

• Multimedia Messaging

• Entertainment (IPTV)

• Commerce

• Etc…


BROADBANDSubscriberSubscriber

IPTVVoIPMP3

InternetGaming

VoD

Service Provider DynamicsBroadband Defining New Service Models

TV

PSTNPSTN

InternetInternet

Mobile

Provider AProvider A

Provider BProvider B

Provider CProvider C

Provider DProvider D

SubscriberSubscriber

% Planning to Switch BundleProviders in the Next 12 Months

Yes, Another Bundle Provider

Yes, Another Bundle Provider

Yes, Separate Providers

Yes, Separate Providers

Source: IDC Consumer Survey, 2005Source: IDC Consumer Survey, 2005

US Bundled Churn Rates

3.5%3.5%

8.5%8.5%Not Sure

22.1%Not Sure

22.1%

No65.9%


Who is a Service Provider?

Internet

MVNOMobile

Fixed-Line

Content

Over-the-Top

Combined RevenuesReduce Churn“Stickiness”

Share common core


IMS Migration


Is IMS the Next Killer Application?

What is “Killer” about IMS is no single application, but rather the flexibility to quickly introduce and bundle new applications to market. And if successful, the ability to quickly scale as market demand dictates. Also, the ability to develop new applications in-house and to select from a variety of IMS Application Development companies.

A truly Flexible network will support both IMS and Non-IMS with equal grace.


Today’s Universe of Applications Requires Support for IMS and Non-IMS Applications

Session BasedNon-Session Based

Web, HTMLP2P

Business IP - VPN

Messaging –SMS, MMS

Voice

Push-to-Video

Streaming Video

IM

Group Chat

Video on Demand

Online Games

IPTV

DualMode

EnterpriseIntegration

E-Commerce

IMS (SIP) Apps

IMS (SIP)OR

Non-IMS Apps

Non-IMS Apps

Rea

l Tim

eN

on

-Rea

l Tim

ePush-to-Talk


In Summation


There is no single panacea

• IMS is a valuable NGN component, but it is not the complete solution for all services—flexibility is key

• IMS is not your OPEX reduction plan

• There are immediate service/revenue opportunities that are not supported by current IMS specs and applications

• Network, subscriber and application awareness, in addition to IMS capabilities, are crucial for broad SP success


In Closing

• Users are Access Agnostic – The network needs to reflect that

• The Network is Delivering Value To Individuals

– One size does not fit all

• A well designed IP Network creates Flexibility, Convenience and Convergence

– Next-Gen SP Solutions provide enhanced services, and reduced OPEX today. It is also to foundation for IMS Migration.

• Cisco’s Vision - Connecting customers with services, services with networks, and networks with each other

We can help you get there!

• Users are Access Agnostic – The network needs to reflect that

• The Network is Delivering Value To Individuals

– One size does not fit all

• A well designed IP Network creates Flexibility, Convenience and Convergence

– Next-Gen SP Solutions provide enhanced services, and reduced OPEX today. It is also to foundation for IMS Migration.

• Cisco’s Vision - Connecting customers with services, services with networks, and networks with each other

We can help you get there!


Thank you

1 © 2006 cisco systems, inc. all rights reserved. cisco public mobility trends: convergence of...

Documents