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Penetrating into Mobile Market A Strategic Proposal ©James Ni O8/21/2008

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Page 1: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Penetrating into Mobile Market

A Strategic Proposal

©James Ni

O8/21/2008

Page 2: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Some Facts� Wireline Network subscriber population is shrinking

� Mobile Network will replace Wireline Network

� Mobile phone is convenience, flexibility, feature rich and multi-

functional

� Per head count mobile subscriber vs. per household wireline

subscriber

� US Mobile Subscribers surpassed 250 million in Nov. 2007 (85%

of population)

� Other countries have the same trend

� More people are considering to disconnect the wireline phones

Page 3: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Mobile Network is Evolving …� Just like VOIP is replacing PSTN

� IP/SIP based IMS core is replacing traditional mobile

core

� IP/SIP based IMS core started the fix mobile

convergence era

� Femto access will break down the air interface barrier

� This does not only mean technology advance, but also

business opportunities

� Mobile operator monopoly is collapsing

� Penetrating opportunity for new comers

Page 4: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

What are the opportunities all about� IP/SIP based IMS core opened up the core network

signaling and media

� Opportunities for wireline VOIP operators

� Femto access opened up the air interface

� Allows non-mobile operators to reach the mobile users

� Mobile operators still dominate the majority coverage

� However …

� Uncovered spots are opportunities

� less populated rural areas

� Inside the building

� Enterprise may seek for more economical alternate solutions

Page 5: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Some Technical Background� IP Multimedia Subsystem (IMS)

Page 6: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Some Technical Background� Femto Cell – Home base station

FGW

MNO VoIP Network

SoftSwitch/

MGCFMGW

Mobile Core

Network

(SS7)

HLR MSSSMSC

ISUPv3

M3UAG.703

Voice

MAP-D MAP-E

Gd

AAA Server

MAP-D MAP-E

Femtocell

IP/IMS Core Network

RADIUS / DIAMETER SIP SIP

IPSec

RTP

AS

Page 7: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Femto Access Architecture

Page 8: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Build Up Low Cost Mobile Network Using Femto Cell� Femto Cell provides air interface � Base Station

� Broadband Internet connects Femto to IMS core via

FGW �make use of customer’s broadband

� Enterprise leased lines

� Residential broadband (Cable, DSL, FIOS etc.)

� SIP for call signaling

� Interworking to PSTN/PLMN

� Challenges

� Spectrum license & usage (secondary market lease or rental)

Page 9: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Macro Cell

Macro Cell

Macro Cell

Macro Cell

Macro Cell

Macro Cell

Macro Cell

Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell

Femto

Cell Femto

Cell

Enterprise

Residence

Less populated rural area

Squeeze in the Uncovered Spots

Page 10: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

How the cash flow comes in …Business Model I� Enterprise mobile traffic offload / redirect

Analog

Phone

SIP Phone

PSTN

IP

MS FAP FGW

CSCF

AS

MGC/MGW

ICS200

ICSG

SG

PBX

HLR

Signaling path

Media path

Page 11: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

How the cash flow comes in …Business Model I� Enterprise mobile traffic offload / redirect

� In-house mobile ��in-house mobile calls

� MS ��FAP��FGW��CSCF / AS��MCG/MGW

� In-house mobile ��PBX phone

� MS ��FAP��FGW��CSCF/AS

��MCG/MGW��PBX��PBX phone

� In-house mobile �� PSTN /IP phone

� MS ��FAP��FGW��CSCF/AS

��MCG/MGW��SG��PSTN�� PSTN phone

� MS ��FAP��FGW��CSCF/AS ��MCG/MGW��IP��

SIP phone

� Provide VLR function to incoming calls from outside

� Provide outgoing call roaming services

Page 12: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

How the cash flow comes in …Business Model II� Personal Residential use

Analog

Phone

SIP Phone

PSTN

IP

MS FAP FGW

CSCF

AS

MGC/MGW

ICS200

ICSG

SG

HLR

Signaling path

Media path

Page 13: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

How the cash flow comes in …Business Model II� Personal Residential use

� Profit-sharing plan to encourage residential femto subscriber to

provide access to others

� Charge minutes to in-network users

� Charge roaming service fee to out-network users

� Bundle mobile service and VoIP service to attract

subscribers

� Shipping femto devices v.s. the current SIP adaptor

� Users use their mobile handset to gain access

� International call is the killer service

Page 14: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

How the cash flow comes in …Business Model III

� Coverage Farm Service

� Provide coverage services to various mobile providers

� Charge roaming services fee

Page 15: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

How the cash flow comes in …Business Model IV� International Coverage

� Femto device can be used anywhere in the world with

broadband access

� Provide international coverage as home service

Page 16: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Key Issues

� Spectrum license

� Buy or lease from secondary market

� FCC has rules and guidelines on this

� Make agreement with spectrum owners

� Roaming agreement with other mobile operators

Page 17: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Network Equipment Needs

� Network equipment

� Owned equipment and technology

� CSCF(SIP), MGC/MGW � ICS2000

� SG � ICSG

� Partially owned equipment and technology

� VLR and application server � PMC (need to add registration and

MAP/ANSI.41 support)

� Can also buy 3rd party equipment

� Not owned equipment and technology

� Femto access point (FAP)

� Femto gateway (FGW)

� 3rd party equipment is available

Page 18: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Network Service Needs

� SS7 network services for mobile applications

� MAP / ANSI.41 support

� Subscriber DB sharing with other mobile operators

� Under the roaming agreement

Page 19: Penetrating intoMobile Market - Networking · PDF filePenetrating intoMobile Market A Strategic Proposal ©James Ni ... MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function

Operation Plan� Acquire spectrum usage permission

� Establish roaming agreement with mobile operators

� Build up test network

� Build up customer base

� Starting with enterprise customer, provide mobile service offload

� Gradually establish handin – handout support

� Expand to residential coverage

� Operate and run the business