Settlement for LBS Roaming Macau March 22, 2007

1. Settlement for LBS Roaming Macau March 22, 2007

2. Overview of Settlement • Refers to financial settlement between operators • Remuneration for services provided to inbound roamers • Currently performed between operators for packet data roaming. Settlement charges are calculated by the kilobyte. • Operators indicated this will be a requirement for LBS roaming • LBS roaming will consume V-PDE resources • In many cases, LBS roaming volumes between operators will be asymmetrical • This slide deck investigates LBS roaming settlement for the “remote transaction solution” for user plane LBS roaming

3. Review of CRXs • CDMA Roaming eXchange Providers (CRXs) • Facilitate packet data roaming • Provide a central exchange point for IP data traffic, settlement and other value adds • Most operators use CRX services • RSPs/CRXs: Aicent, Syniverse, VeriSign

4. Review of Transaction-Based Solution • Currently being considered for user plane roaming solution • Requires inbound roamer use of V-PDE resources via the H-PDE • Visited operator requires payment for use of V-PDE resources Visited operator Home operator Network connection CRX or Internet MIP/L2TP tunnel AAA AAA HA PDSN FA PDSN V-PDE RAN PCF H-PDE RAN PCF RPC-like interface that enables a transaction-based service H-PDE detects the MS is roaming and sends IS-801 primitive service requests to V-PDE. IS-801 traffic RPC-like interface

5. Settlement Considerations • What information is required for billing? • New LBS Billing Record required (LBR) • Which elements create/capture LBRs? • Created by PDEs, CRX, or both? • Commercial considerations • Transport costs of Inter-PDE protocol • LBS services included in roaming agreement? • How often is settlement performed? • Financial clearing?

6. Strawman Location Billing Record (LBR) • Strawman specifically designed for remote transaction solution • Strawman is based on proposed inter-PDE protocol • Assumes: • Billing/Settlement are performed on a per transaction basis • Operators want details of each PDE transaction • Summaries can be generated using LBRs on a periodic basic, e.g. monthly • No LBR generated for keep alive messages • Detailed logs will also be available on PDEs – possible that LBRs are generated from logs

7. Proposed LBR Fields

8. Where are LBRs generated? • Likely that H-PDE and V-PDE will generate LBRs (good check and balance) • CRX could provide “proxy” for transaction protocol • CRX would have visibility to protocol and could generate LBRs • CRX could also perform settlement in this case • Could be slight difference in timestamp on generated LBRs Visited operator Home operator CRX or Internet AAA HA AAA PDSN FA PDSN V-PDE RAN PCF H-PDE RAN PCF

9. Transport costs of transactions • Operators pay CRXs and Internet providers for data inter-operator data traffic (mostly user data) • Inter-PDE transactions will require a small amount of transported data (and charge?) between operators • Possibly negligible amounts? • CRXs could identify inter-PDE traffic volumes and provide settlement

10. Other commercial considerations • Currently, a roaming agreement contract for PD data roaming exists between operators • Roaming agreement modified to include LBS service charges? • Settlement process to mirror PD roaming settlement process? • Use CRX for financial settlement?