UMA?

1. UMA?

2. Unlicensed Mobile Access http://www.umatechnology.org/overview/

3. Subscriber Benefits • Improved coverage • Broadband data rates • Avoid hassle • Reduce costs

4. Mobile Operator Benefits • Increased coverage • Increased revenues • Lower capital and operation expenses

5. UMA Network Infrastructure

6. Connecting to the UMA Network Controller • Connect to a Wi-Fi or Bluetooth base station • This may require authentication • Obtain a public IP address • Devices are usually assigned a private address • Locate and connect to the UNC • The UNC Security Gateway establishes a secure tunnel between the mobile device and UNC.

7. Functions of the UMA Network Controller (UNC) • Authorization • Determine the identity of the device • Transform Voice Packets • Convert IP packets to GSM frames • Forward Data Packets • Network Management • QoS, connectivity checks, registration

8. Accessing the UNC • The UNC Security Gateway provides access to the UNC • A secure tunnel is established between the mobile device and the UNC • GSM codecs are wrapped within IP packets and sent through this tunnel • The UNC converts these IP packets into GSM vocoder frames.

9. Locating the User • Approximate location of the user is important • Use IP/MAC address of base station when possible • Signal strength from neighboring GSM cells • All cellular phones “ping” base stations regularly, whether in a call or not.

10. VoIP Quality of Service (QoS) • QoS is used to prioritize packets containing voice content • Especially important for wireless applications, as wireless mediums are inherently more unstable, have higher latency, and more packet loss than wired connections • A short tag is appended to each VoIP packet • QoS compliant routers and switches read the priority level associated with the tag, and route these packets before other lower priority traffic

11. UMA Handovers • In a successful implementation of UMA, a MS can transfer seamlessly between GSM/GPRS and unlicensed wireless networks during a call • A Mobile Station (MS) has four modes • 1. Cellular network only • 2. Cellular preferred • 3. UMA preferred • 4. UMA only • Use UMANs (Unlicensed Mobile Area Networks) whenever possible, mode number three (UMAN-preferred) is default

12. UMA Handovers Cont. • Based on whichever mode the MS is currently in, quality thresholds are set accordingly using an internal algorithm. • The mobile is always measuring: • The quality of the Bluetooth or WiFi link • The quality of the RTP (Real Time Protocol) stream (if UMA is ongoing) • The quality of Cellular signal (signal to noise ratio from the nearby base stations) • The Uplink Quality Indication from the UNC.

13. UMA Handovers Cont. • Once the quality level dips below a certain threshold, the mobile makes the decision to either hand off, or just stay connected until the connection dies (i.e. dropped call) • There are three types of Handover: • Handover In: MS moves from cellular network to unlicensed wireless network • Handover Out: MS moves from unlicensed wireless network to cellular network • Handover UMA: MS moves from one unlicensed wireless network to another unlicensed wireless network

14. UMA Handover In

15. Security • Unlicensed Interface Security • At this level, the inherited interface security from either Bluetooth or Wi-FI prevents easy interception and reassembly of IP packets between a MS and an AP • UNC Interface • Authentication and encryption methods are used on this virtual interface (Up Interface) • IPSEC encryption used between MS and AP

16. Security Cont. • Cellular Network Authentication • Cellular network authentication ensures that the mobile's packets, once they get past the Security Gateway, are allowed on the cellular network • Application Level Security • Application-level protocols such as SSL and SSH may be used by specific applications on the MS to encrypt data traveling over the wireless networks

17. Challenges for Deployment • Deployment started in June of 2005 • Commercial success, but some issues: • The type of Access Point • Bluetooth vs. WiFi • Debugging secure connections • Packets are encrypted • Mobile performance / VoIP buffering • Lots of processing power required

18. Access Points - Bluetooth or Wi-Fi? • Bluetooth was designed for low power consumption • Perfect for small devices, such as phones • Less signaling overhead • Easy “pairing” with Access Point • Wi-Fi • Wi-Fi routers are commonplace for PCs • Greater security options / consumer preferred

19. Access Points - Bluetooth or Wi-Fi? • Initial deployments picked Bluetooth • Easier for mobile processing • Less battery drain • Today, Wi-Fi clearly dominates • Battery life is improving • Current markets: • T-mobile @ home • British Telecom Fusion • Cincinnati Home Run

20. Debugging • All packets over the public internet are encrypted. • No “snooping” allowed unless security keys are extracted from either the mobile or the SGW. • Not feasible: security keys are per IP session • Solution: hacks in the mobile to dump decrypted IP packets to a file • Not idea since there’s a dependency on the mobile manufacture • Only shows what the mobile sees. • Not a permanent solution.

21. Performance • For VoIP, the mobile need to 1) Maintain the Blutooth/Wi-Fi link (inc. security) 2) Pack vocoder packets into RTP & encrypt 3) Monitor GSM cells in case of handover 4) Process incoming RTP packets • Initial result: Encryption took so long there was over a 3 second delay from transmitter to receiver • Not enough processing power to do it faster • Lots of re-work to get it right

22. Even while sending RTP packets to the UNC, the mobile needs to process Microsoft’s DHCP, NetBIOS, and ARP requests. • The mobile is just another entity on the internet. • No special treatment. Packets / second processed by a mobile on UMA UMA Signaling RTP packets Non-UMA messaging

23. SGW 1 UNC 1 Celluar N/W Celluar N/W The Internet Front-End Router Front-End Router Mobile Mobile SGW 2 UNC 2 SGW N SGW N UNC N UNC N Public IP (MS <-> SGW) Private IP (Router<->SGW) UDP ESP (IPSEC) <encrypted> Internal IP (MS <-> UNC) UDP RTP (for QoS) Vocoder Payload

24. Business Case - Analysis Approach • Hypothetical Wireless Service Provider Perspective • Strategic Marketing Analysis • Problem/Cause • Value Based Segmentation • Offering based on 5C/3-V Framework • Financial Analysis • Real World UMA Based Offering

25. Wireless Service Provider • WimpCo Wireless Services, Inc. • Services: Cellular GSM Mobile Services to Consumers and Businesses – Mobile Network Operator • Publicly Traded (NYSE: WMPS); Established in 1997 • Primary Market: United States • #3 Among Top 3 Service Providers (based on Number of Subscribers) • No Wireline or Cable services • Primary customers are residential, but is seeing growth in business customers • Low cost provider

26. Wireless Service Provider • Challenges and Opportunities • Revenue per min dropping 45% over last 5 years • Minutes per subscriber per month increasing 19% per year • Decrease in revenue and increase in usage putting pressure on margins • Market share increasing; capital expenses (CapEx) increasing due to capacity requirements; operating expenses (OpEx) increasing

27. Wireless Service Provider • The Problem Solvers • Mission • Propose solution to grow mobile subscribers, reduce expenses and improve customer loyalty MikeCEO & Chairman MikeVP, Engineering KimVP, Marketing KevinVP, Research JohnVP, Finance BryanVP, Product Development

28. Marketing Analysis • Context/Current Market • U.S. market penetration being reached – growth in subscribers slowing • VoIP Getting Popular • WiFi Hotspots in U.S. at 67,000 and projected to grow to ~120,000 by 2012 2 • Declining average revenue per user (ARPU) in both mobile and fixed 1 • Users interested in relinquishing home fixed line voice services for mobile cellular service – hampered by coverage and cost • Subscriber churn – movement from one walled garden to another due to competitive offers and pricing • About 1/3 of cellular minutes are from fixed locations such as homes and businesses Annual Net Adds 2001-2008E with Real GDP Growth (U.S.)* Annual U.S. Wireless Subscribers and Cumulative Penetration* *Source: Oppenheimer & Co.

29. Marketing Analysis • Cause/Opportunity • Market maturity/penetration; increased usage; lower prices • Action • Gain market share, reduce costs and increase loyalty by offering seamless voice mobility from home-office-mobile domains leveraging UMA technology. Converge LAN/WiFi voice with cellular voice. Pilot in metropolitan area including outlying suburbs

30. Financial Analysis - NPV

31. Financial Analysis – CapEx/OpEx • Capital Expenses (CapEx) – Property, Plant and Equipment • Costs to acquire/lease sites; base stations; end-to-end connection costs • CapEx is coverage driven; less of an issue for established operators such as WimpCo • CapEx is capacity driven; long term and required to support more subscribers, particularly in dense metropolitan areas; growing and projected to grow further to support increased capacity, as a percentage of revenue • Operating Expenses (OpEx) – Run the Business Expenses • Payroll, network operations, maintenance, insurance, systems operations

32. Financial Metrics • Projected Impact on Operating Expenses (OpEx) • Lower the rate of increase for payroll (network operations staff) because fewer Base Stations and MSCs will be deployed • Lower the rate of increase for network operations and maintenance costs rate of increase due to fewer Base Stations and MSC

33. Financial Metrics • Projected Impact on Capital Expenses (CapEx) • Fewer Base Stations and MSCs required • Majority of WimpCo’s CapEx is around network hardware to handle capacity requirements, and soon new technology 2.5G and 3G

34. Real World UMA Deployment • HotSpot@Home by T-Mobile, USA • Debut: June 2007 • First national U.S. carrier to transfer cellular calls onto WiFi networks when possible • Parent Company, T-Mobile International, Subsidiary of Deutsche Telecom (DK, GmBH) • Limited data on UMA results released • Primary Market: United States

35. Questions?