IP-Based Service Platforms for Evolving Networks

1. IP-Based Service Platforms for Evolving Networks Brough TurnerSenior VP and CTO

2. Mobile Subs (millions) Landline Subs Source: ITU World Telecommunications Indicator Database 2002 The Kelsey Group 2002 Big Growth in Wireless … • Subscriber growth • Real competition • Multimedia, video, data • New applications & services

3. Figure 2. Worldwide total mobile revenue: 2000–2010. Worldwide Mobile Revenues Voice and Data Mobile Data Mobile Voice $- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Telecompetition, Inc., June 2001. Voice Remains the Killer Appbut voice ARPU is flat

4. Value Added ServicesThe Future for Wireless Carriers • Carriers must provide new, advanced services to stay ahead of the curve • Voice, data, video and multimodal services such as: • Mobile instant messaging, FriendsFinder • Mobile chat, enterprise field staff services • MyCaller custom ringback tones • SportsMania, photos and rich video • Equipment suppliers must provide • Pre-integrated end-to-end solutions • Tools for customization and rapid innovation • Support for revenue growth, not just technology

5. Infrastructure Challenges • Wireless convergence delayed • 3G “IP Multimedia Services” (IMS) still years away • Voice services still circuit-switched • New 3G-324M mobile video is circuit-switched • works over W-CDMA 64 Kbps circuit-switched data • Only wireless data services use IP • GPRS, 1xRTT, 1xEVDO, ...

6. A/IuCS Abis Iub Mg Gn Gc Gr Gi H B D C Mc Mc Mc Gb/IuPS IM-MGW IM Gs PSTN IP MRF MGCF CSCF The Vision:3GPP Rel 5 Architecture (UMTS) 2G MS (voice only) CN CS-MGW Nb BSS CS-MGW PSTN Nc PSTN BSC MSC Server GMSC server BTS VLR Gs SS7 2G+ MS (voice & data) ATM IuCS RNS IP/ATM HSS AuC IuPS IP Network RNC SGSN GGSN Node B 3G UE (voice & data) IM IP Multimedia sub-system MRF Media Resource Function CSCF Call State Control Function MGCF Media Gateway Control Function (Mc=H248,Mg=SIP) IM-MGW IP Multimedia-MGW

7. 2G MS (voice only) CN BSS E PSTN PSTN Abis Iub Gn Gc Gr Gi H B C D A BSC MSC GMSC Gb BTS VLR Gs SS7 2G+ MS (voice & data) IuCS RNS HLR AuC ATM IuPS PSDN RNC IP SGSN GGSN Node B 3G UE (voice & data) BSS Base Station System BTS Base Transceiver Station BSC Base Station Controller RNS Radio Network System RNC Radio Network Controller CN Core Network MSC Mobile-service Switching Controller VLR Visitor Location Register HLR Home Location Register AuC Authentication Server GMSC Gateway MSC SGSN Serving GPRS Support Node GGSN Gateway GPRS Support Node UMTS Universal Mobile Telecommunication System What We Have Today:3GPP Rel 99 Architecture (UMTS)

8. Value-Added Services In Today’s Wireless Networks • Simultaneous IP and TDM operations • for both transport and applications • Multimodal application support • Mobile users get the access they want, when they want it: voice, data, graphics, messaging, video, … • Presence and location-based services • Key to a wide variety of new value-added services • Web services for mobile users • Wireless video • Advanced messaging, viewing, calling and conferencing with news and entertainment

9. Application Landscape Evolving • Multimodal Voice and Data Services • Directory Services • Map Finder • Voice Services • Voice mail • UM • UC • Data Services • SMS, EMS, MMS • Mobile IM • Chat, email • PIM • Location-Based Services • Location & availability alerts • Cell Broadcast • Directory services • Community LBS VOICE LBS DATA

10. Multimodal Application User Session Manager Device Session Manager Data, Voice & Video Services & Stores IP & TDM Network & Message Gateway Connectivity Seeking the Next Generation Service Platform • Application programmability • Session/context management • Device: between different modes on same device • User: across user’s multiple devices and different modes • Data, voice & video services • ASR, TTS, IVR, Conferencing • Messaging services • Content stores • IP & TDM network connectivity • Voice network • Data connections • Message gateways

11. IP-Based Converged Application Platform • Decompose the elements • Leverage the Internet point of view • IP-Based architecture: standard protocols interconnect well-defined elements • IP, XML, SIP, RTP, … • IETF, W3C, etc. • Result is flexible and scalable solutions • Small systems: multiple elements per CPU • Large systems: deploy multiple, independently optimized elements in a network

12. Time-to-Market & FlexibilityKey to Competitive Advantage • Leverage IT and Internet technologies • Large markets with rapidly evolving technology • Volumes drive cost • Diverse applications drive flexibility • IETF decomposed architectures • standard protocols connect platform elements (e.g. XML, SIP, RTP on redundant Ethernet) • Build scalable, highly available telecom services • New flexibility reduces time-to-market for diverse wireless applications

13. Equipment PerspectiveReduced Platform Cost • Basic components • PCs, Servers and Web farm components • Ethernet & IP components, switches and routers, • Wide area IP network elements • Firewall and NAT technology • Software infrastructure • Standard operating systems, databases, and tools • Rich set of open Internet protocols • Scalable WEB architectures • Security and authentication technology • Responsive working communities • IETF, W3C, …

14. Application PerspectiveReduced Development Cost • Next Generation Service Creation • WEB Services allow sharing of distributed resources • Still need Parley/OSA interfaces for access to IN services • WEB paradigm for distributed applications, based on HTTP and XML derivatives, • User interaction via scripting environments (VoiceXML, SALT, X+V)

15. ProvisioningGateway WAP App Server Web Server IP-Based Service Platform CustomerCare Gateway OriginatingMSC/VLR HLR MediaServer ContentDB TerminatingMSC/VLR

16. IP-Based Service Platforms • Real Time Protocol (RTP) • For interactive media streams -- voice/video calling • Real Time Streaming Protocol (RTSP) • One-way delivery of video & audio • Session Initiation Protocol (SIP) • Internal coordination within platform • Supports telephony and data services and diverse terminal devices • Emphasis on usability – very application focused • IETF standard, with realistic potential for global interoperability, normalizes existing protocols

17. Incoming Messages Outgoing Messages Format Conversion Email Email Web Interface Wireless Web WAP Alert Wireless Web Message Routing Instant Message SMS SMS Instant Message SIP/SIMPLE SIP/SIMPLE EMS EMS MMS MMS API API IP-Based Service PlatformMessaging in Live Interactions Data Message Server Core

18. IP-Based Service PlatformMedia is More than Voice Wireless Video • 3G324M video deployed in Japan today • DoCoMo FOMA service; early handsets; ... • Viewing video clips • News, sports, weather, movie shorts • Broadcast TV, Webcams • Live handset-to-handset calling • Video conferencing • Messaging Applications • Video mail, instant messaging, Camcorder

19. DoCoMo Video Applications * extracted from ntt docomo home page

20. Spiderman is showing at : 1. UA6, Shinjuku 2. UA6, Shibuya 3. T-Theatre, Tokyo Payment : Credit or Debit : C/D Card Number : 1234-5678-9012 Password : ******** Confirm : Y/N 4/7/02 16:00 13:30 13:30 13:30 13:30 Movie Preview & e-Commerce • Preview a movie currently showing • Locate a nearby theatre • Check seat available • Make an e-commerce transaction • Book preferred seating • Purchase ticket

21. IP-Based Service PlatformScripting Paradigm • Scripts replace programs & function calls • Developers create “pages” • Rationale • Taps pool of WEB developers • Easier to maintain and evolve • Creates inherently distributed applications, allowing highly available services on commodity hardware • Technology drivers • WEB (HTTP) paradigm • XML revolution (HTML, VoiceXML, SALT, CCXML) • Open Industry standards (IETF, W3C, .NET, etc)

22. Other Platform Principles • User session management and device management for multimodal applications • Integrate live media (Voice, Video, etc), messaging (SMS/MMS, IM, etc.) and data interactions (HTML, WAP, etc) with location and presence • Customer self-provisioning • WEB, WAP and IVR interfaces • Even SMS or MMS…

23. IP-Based Service Platforms • Easily adapts to diverse applications • Voice, video, data and messaging services • Independently scalable service elements • interconnected by redundant IP networks • Lowest cost, best fit to diverse applications • Minimum time-to-market • Flexible solution for IP or legacy applications on IP and legacy networks

24. Map Finder Max needs to find the 51st Ave Post Office Washington, DC 51st Ave Post Office • Form Filling • Graphics • Point to Zoom

25. Map Finder Directions Proceed straight for 1 mile Continue MultimodalApplication Platform Take a left onto… • Session Mgmt • User choice of mode • Application support for modes

26. MSC SMSC MMSC IP-Based Service Platform inthe Evolving Wireless Network 2.5G Wireless Network BSC PSTN TDM Interface (voice) SS7 NMS HearSay Solution Application/DocumentServer PMA SpeechServer IP Interface (data) Internet / Core Network DataBase CGSN SGSN MediaServer OAM&P Instant Messaging / Presence Location PresenceandLocation 3G MSC Server SIP MessageGateway H.248 PacketInterface(voice/video) Core (Packet)Network RNC Voice or Data Wireless Control 3G MSC Gateway 3G Wireless Network

27. MyCaller Custom Ringback Service • A personalized caller entertainment service • Subscribers select pre-recorded music, sounds, and voices heard by their callers in place of the conventional ringback tone • Fun experience for your subscribers and their friends

28. Christina Aguilera?! The subscriber chooses from the content menu Christina Aguilera A call is placed to subscriber’s phone MyCaller plays a song instead of a ringback tone until the call is answered MyCaller Service A subscriber self-provisions MyCaller by web, WAP, IVR or SMS

29. MyCaller Subscriber Server Content Aggregators Digital Asset Management Customer Service Audio Audio MyCaller™ Service Architecture SCP MSC MyCaller Platform Wireless Network HearSay Intelligent Peripheral HLR Audio ID Query MyCaller Service Gateway PSTN Audio MyCaller Content Server MyCaller Subscriber Database Service Activation Audio Subscriber DB Customer Care & Provisioning WEB Subscriber Management WAP SMS Subscriber Info IVR SubscriberProvisioning, Content Selection MyCaller CSM

30. Market Opportunity • MyCaller takes advantage of the ringtone learning curve • Personalized ringback builds on subscriber familiarity with ringtones • Similar to the way downloadable ringtones built on subscriber familiarity with SMS • Personalized ringback • Natural extension of the $1 billon ringtone market • Poised to repeat the success of ringtones

31. SK Telecom experience withtheir Color-Ring Service • SKT originated the idea with the branded “Color Ring” service in March 2002 • Monthly subscription + airtime + selection fee • 10-month growth over 1,000% • Apr ’02–Jan ’03 • 489,000 users to 5,055,000 users • Adding 15,000–25,000 new users per day • 33% penetration of mobile phone market • Generating $2 incremental ARPU/month

32. % 30 25 20 15 10 5 0 Total users Color-Ring users SK Telecom Experience 20,000 15,000 10,000 5055 4,607 4,217 5,000 3,611 2,994 2,438 1,744 1,197 796 489 Apr 2002 Jan 2002 Penetration rate

33. Net Income Projection Quarterly cash-in/cash-out YIELDS Quarterlycumulative net revenue

34. IP-Based Service PlatformsScripting for Rapidly Development • Tap new developer communities • Integrate with diverse partners • business success depends upon partnering, revenue sharing and minimum time-to-market • IP and Intelligent Network (IN) solutions • Can’t neglect new services on traditional networks, e.g. MyCaller • Support Converged services • Integrate live media (Voice, Video, etc), messaging (SMS/MMS, email & IM) and data interactions (HTML, WAP, etc) with location and presence • Multi-modal services -- single user experience

35. The Opportunity is Huge • Most of the world lacks telephones • yet improving teledensity drives improved welfare • Mobile services are soaring • globally, mobile phones exceed fixed phones • Internet convergence changing everything • decades of opportunity ahead of us • IP-based application platforms provide • Tools for rapid innovation • Support for evolving networks • End-to-end solutions, not just technology

36. NMS COMMUNICATIONS Technology for tomorrow’s networks