IMS Industry Status/Expectations/Challenges

1. IP Multimedia Subsystem (IMS)Industry Status/ Expectations/ Challenges Contacts: Hala Mowafyhmowafy@telcordia.com (732) 699-6525 Zehan Zebzzeb@telcordia.com (732) 699-6163 Contribution to: NANC FoN October 4, 2006

2. IMSIndustry Status/Expectations: Outline • Background and Drivers • Standards Activities • Research and Industry Forecasts • Where the U.S. Stands on IMS • Key Industry Players • Industry Activities • Implementations • Trials • Challenges • Risks, Obstacles and Success • Expected Adoption Cycle

3. IMSIMS: An NGN Solution • IMS Services • Push-to-talk • Gaming • Video conferencing IP Multimedia Subsystem Wi-Fi Internet DSL 3G PSTN Cable

4. *Source: RelevantC 2004 IMSMarket Trends and Operators MSO: Multi-Service Operator VSP: Virtual Service Provider

5. IMSPSTN to IMS Migration Internet Multi-Media Services Mobile PSTN Internet Video Mobile VoIP Video OAM&P Service Applications IMS Call/Session Control Switching & Transport User Device

6. IMSPSTN to IMS Migration Beginnings of IMS True IMS PSTN Emulation and Simulation PSTN

7. IMSPSTN to IMS Migration IMS HSS Legacy Transitional SIP GW SMS GW SIP AS Presence mobility GW Messaging App Server (AS) True IMS PSTN Emulation and Simulation PSTN

8. IMSSS7 and IP • The advent of IMS does not mark the immediate demise of the PSTN or SS7 • SS7 continues to be a critical piece of value services such mobile, SMS and LNP • The PSTN – as we know it – still has the widest reach to the world population and size matters when it comes to network value • IP migration takes time and carriers will vary in level of progress; some will get there sooner than others

9. SP#2 SP#1 OSS / BSSLayer Applications andServices Layer ControlLayer NetworkLayer IMSStandardization • IMS aims to standardize network interfaces and avoid fractured technologies and proprietary products • Open network interfaces • Open platforms

10. IMSActivities at Standards/Industry Forums • Background on 3GPP and 3GPP2 • 3GPP was pioneered by the European Telecommunications Standards Institute (ETSI) early in 1998 with the proposal to create a Third Generation Partnership Project (3GPP) focusing on Global System for Mobile (GSM) technology • 3GPP2 was born out of the International Telecommunication Union's (ITU) International Mobile Telecommunications "IMT-2000" initiative, covering high speed, broadband, and Internet Protocol (IP)-based mobile systems for ANSI/TIA/EIA-41 (North America and Asia)

11. IMSActivities at Standards/Industry Forums • Roots of IMS: 3G Activities (3GPP and 3GPP2) • 3GPP (3rd Generation Partnership Project) • Releases 4, 5, 6, 7 • TSG-SA: TSG Service and System Aspects (TSG SA) is responsible for the overall architecture and service capabilities of systems based on 3GPP specifications, including charging, security and network management • TSG-CT: The TSG Core Network and Terminals (TSG CT) is responsible for specifying terminal interfaces (logical and physical), terminal capabilities (such as execution environments) and the Core network part of 3GPP systems

12. IMSActivities at Standards/Industry Forums • 3GPP2 (3rd Generation Partnership Project 2) – CDMA2000 mobile networks • Mirroring IMS developments in 3GPP • TSG-S: The Services and Systems Aspects (TSG-S) is responsible for the development of service capability requirements based on 3GPP2 specifications. It is also responsible for high level architectural issues • TSG-X: The TSG Core Networks (TSG-X) is responsible for: • charging, accounting and billing specifications • management of work items placed under its responsibility; • evolution of core network to support interoperability and intersystem operations; • network support for enhanced privacy, authentication, data integrity and other security aspects; • specifications for international roaming; • multimedia services (e.g., voice over IP) • private network access • QoS support • IMS specifications

13. IMSActivities at Standards/Industry Forums GSC ITU-T GlobalNGNFramework IETF Routing Applications GSC9 WTSA GSC10 General Security O&M SG11 Internet Transport SG04 NGNMFG ATIS SG13 SG03 NGN* Focus Group SG19 NGNFramework CableLabs SG02 NGN Focus Group SG17 WAE FG MWS FG SG09 SG15 SG16 VoIP FG W3C OPTXS(T1X1) WTSCT1P1 PTSC(T1S1) TMOC(T1M1) 3GPP DSL Forum DMTF OBF NIIF INC ECMA TeleManagementForum PGC SA5 SA1 JWG SA4 SA2 SA3 ETSI OMA NGNOSS IPDR 3GPP2 TIA MESA OSS/J STF NGN TSG-X TSG-S TISPAN TR-8.8 CPWG TR-41 OASIS WG8 TSG-A TSG-C TR-45 3GPP2 OP TR-45.6 WG7 TR-34.1.7 WG1 TR-45.2 WG6 Parlay RosettaNet WG2 PM WG3 WG5 AT-D PAM WG4 LI NGN@home CCUI CBC EPCglobal * Forums as of June 2005

14. IMSActivities at Standards/Industry Forums • IETF: IP Telephony and Internet Standards • IP • IMS nodes must support IPv6 • Mobility for IPv4 • SIP, SIP Peering and SIP-based services simulate popular PSTN services and more, which include: • Chat • Location-based services • Picture messaging (leverages IM and buddy lists) • Video conferencing • ENUM • DIAMETER • Emergency calling geographic location • Global communications for disaster recovery

15. IMSActivities at Standards/Industry Forums • ETSI TISPAN: • Recognize that evolution to IMS will take time and other forms of PSTN emulation will exist until full IMS is reached • Since September 2003, the ETSI Technical Committee TISPAN has been developing a set of standards that can be used by industry as the foundation for the Next Generation of Networks (NGN) • In December 2005, NGN R1 was approved

16. IMSActivities at Standards/Industry Forums • ITU-T Study Group (SG) 13 • Focus Group on Next Generation Networks (FGNGN) approved NGN Release 1 Scope and Requirements in November 2005 • Also approved IMS for NGN • QoS • Functional architecture • Service scenarios • ITU-T SG 11 • Approved draft technical report specifying the aspects of IP QoS signaling requirements in December 2005

17. IMSActivities at Standards/Industry Forums • ATIS • NGN Focus Group: • NGN Framework • Gap Analysis • PTSC (Packet Technologies and Systems Committee) • IP-IP interconnection of carrier networks • Public and infrastructure ENUM • Call control • Border Control functions

18. IMSActivities at Standards/Industry Forums • Open Mobile Alliance (OMA) • Formed in June 2002 to facilitate global user adoption of mobile data services • Currently, there are 15 Technical Working Groups and two Committees of the Technical Plenary (e.g., Browser & Content, Games Services, Location, Messaging, etc.) • Consolidated the WAP Forum, Location Interoperability Forum (LIF), SyncML Initiative, MMS-IOP (Multimedia Messaging Interoperability Process), Wireless Village, Mobile Gaming Interoperability Forum (MGIF), and the Mobile Wireless Internet Forum (MWIF) into OMA

19. IMSActivities at Standards/Industry Forums • Other Industry Impacts of IMS that will drive standards or de-facto standards efforts: • Billing and OSS changes • Settlements • Detail Recording • Home Subscriber Server (HSS) • DIAMETER is the chosen accounting protocol • Even IPDR is not IMS-ready • Special SIP-based handsets

20. Service Providers (including ISPs, ASPs) AT&T British Telecom (BT) Cingular France Telecom Microsoft NTTDoCoMo (Japan) Sprint-Nextel South Korea Telecom TeliaSonera (Finland and Sweden) Equipment vendors Cisco Ericsson HP Lucent Nokia Nortel Siemens Tekelec Verso IMSIMS Industry Players

21. IMSOther Industry Players • Web developers are proponents of open Internet access (Net Neutrality) • Competition is imminent; • 3rd party voice, like Skype and Vonage do not need IMS • Service providers, such as BT, recognize that their next-generation revenues could be affected if the applications providers do not come on board

22. IMSOther Industry Players • IPSphere • Focus on the “business of IP” • Members include: • Alcatel • AT&T • BT • Cisco • Ericsson • HP • IBM • Nortel • Siemens • Verizon

23. IMSOther Industry Players • IMS Forum • Used to be the International Packet Communications Consortium (IPCC) • Accelerates the adoption of IP Multimedia Subsystems by providing an environment for discussion and resolution of real world implementation issues relating to interoperability, best practices, and standards-based architectures

24. IMSResearch and Forecasts • Research from Apertio (5th April 2006, CTIA) shows that US Leads the Way Towards IMS • US global telecommunications operators overwhelmingly place greater emphasis on deploying IMS, in comparison with European operators • 86 percent of US operators classify it as a key business priority, versus 66 percent of their European counterparts • Nearly one in five US operators also expect return on investment (ROI) in less than two years - more ambitious than those in Europe • The research, ‘IP Independence’, also found key drivers towards IMS are • the cost of new service provisioning on conventional architecture, and • the need to offer attractive service bundles to subscribers to prevent churn and increase data usage

25. IMSResearch and Forecasts (contd.) • Key findings from the Apertio research are: • 93% of respondents believe that IMS will have a positive impact on operational cost reduction, with 40% considering that impact to be ‘significant’ • 85% of respondents also see the removal of legacy infrastructure as a critical aspect of reducing operational cost • 79% of carriers are using a disparate combination of tactics to deliver IMS, highlighting a lack of best practice • According to Pyramid Research (Warren Communications, August 18), 66% of household VoIP users will run on an IMS platform by 2010

26. IMSResearch and Forecasts (contd.) • Some studies show the main motivation for IMS is to Reduce Operating Costs • At the VON Fall 2006, IMS panel discussions revealed that: • 77% of survey respondents plan to deploy IMS in next 2 years • ROI is still a “grey area” • Majority is looking for long-term savings of 10.5% • Service capability may not be the main driver for IMS deployment

27. IMSTrials • Global Trial of IMS R3 • The Multiservice Switching Forum (MSF) will hold a global trial in October 2006 (network test facilities across three continents) • Involves five leading carriers: BT, KT, NTT, Verizon and Vodafone • Concerns over interoperability and roaming for real-time applications • GSMA global trials • GSMA is a global trade association consisting of 2G and 3G operators and manufacturers • Recent press releases by Siemens and Time Warner Cable indicated their preliminary trials demonstrated successful integration of fixed line, mobile and WiFi

28. IMSTrials (contd.) • IPSphere Forum announced in May 2006, several key milestones in the Forum’s formal work program • On May 9, in Tokyo, the IPSphere staged a working instantiation of mediated next-gen, video services to leading Asia Pacific networks

29. IMSObstacles/Challenges • The following are recognized as the major categories of challenges for IMS operators: • Business Issues • E.g., choosing the correct strategies for doing business in a multi-carrier-vendor environment • Technical Issues • E.g., choosing the correct strategies for introducing elements of IMS into any network • Interoperability • E.g., keeping track of the crucial migratory issues, interoperability and interconnectivity with existing network infrastructure

30. IMSObstacles/Challenges (contd.) • Other challenges include • Handset compatibility • Lack of high-quality dual-mode capable handsets • Battery life • Differences due to operator implementation of • early IMS • Authentication mechanisms • SIP compliance • Subscriber-centric policy management • Making IP applications available over any network requires greater focus on the subscriber, rather than on any particular network

31. IMSObstacles/Challenges (contd.) • There are concerns that IMS is being delivered in releases, and that different vendors might conform to different releases, like what happened with IN • There are questions as to “who’s in charge” among the standards bodies • Roll-out of IMS will likely create additional traffic • Need measures to avoid severe congestion problems

32. IMSObstacles/Challenges: Charging • Challenges still lie ahead for session and event-based charging • Dual-mode Handsets (that could be used in multiple networks) could expedite IMS development • But, revenue management, billing and rating of calls in the dual-mode environment is a “new frontier” • Capturing all the pieces of a call or event and correlating them is the hardest challenge

33. IMSOpen Issues • IMS will be limited by the availability of an all-IP network; its magic will be fully realized when IP is everywhere • Web application developers such as AOL, Microsoft, have the same goal, but do not see the need for a platform like IMS • IMS fits the legacy provider’s business model • Microsoft argues that web technologies that give people anytime, anywhere already exist

34. IMSAdoption Cycle • Legacy and IMS Networks will coexist for a long time • According to vendors, carriers and analysts, it could be anywhere from seven years up to 15 years before most of the service providers will be running most of their services over an IMS core network • IMS may have a long adoption cycle, but operators are predicting IMS services will reach critical mass within three to five years

35. IMSAdoption Cycle (contd.) Recent research by In-Stat, found the following: • Wireless carrier revenues from IMS applications in the US could be as high as $14 billion by 2011 • It is likely that the significant growth in IMS applications and services being offered by wireless will begin to appear well into 2007 • Despite that relatively late start, there could eventually be as many as 72 million IMS users in the US by 2011

36. IMS • Comments/Questions? • Thank you