Fixed & Mobile Networks Convergence

1. Fixed & Mobile Networks Convergence Presented by: Moheb Adel Ramses Technical Director, Mobile Networks MENA Region ITU/BDT Arab Regional Workshop on “Convergence: Policies and Regulations” Cairo – Egypt, 26-28 June 2006

2. Content Industry Transformation Fixed & Mobile Networks Convergence (FMC) FMC implementation strategy IMS Solution – a major step for FMC Conclusion

3. Business Operation Models Face Transformation Network-focused Service-focused Customer-focused • Service provisioning capability • Service marketing • Customer increase • ARPU • Network layout • Technology updates • Homogeneous services • Service quality • Converged network • Converged services • Industry chain re-structuring • Integrated information services 80s－mid and late 90s Mid and late 90s－ early 21st century 21st century

4. Cross-industry Penetration Intensifying Competition • Carriers compete on a broader scale • Expanding into the IT service field to create value for business users • Expanding into content & entertainment and other fields to create new value for end users Applications IT Infrastructure Mobile Fixed Voice/Data Content, Entertainment Broadband Internet

5. Environment: Convergence of Industries • Telecom industry is confronted with structural changes • The trend of convergence includes Fixed and Mobile Convergence, IT and CT Convergence and Industry Convergence; • This will lead to the expanded services that includes not only access but also new applications and services (i.e. network media, e-Commerce, etc). PDA Watch

6. Main Market Drivers: Mobility Seamless Experiences Seamless Reachability At home On Move In Office On trip Enjoying

7. Main Market Drivers: new wave of Internet • Free or much lower • More than 30M users, up to 1.5M connection per day • The Skypeout to global tarrif < $0.012/m • Free video phone over internet • Own unified internet phone number … Conclusion • Operators should do their best to avoid being a bit-piper.

8. Change of Revenue Structure for Operators Diverse contents & services and their short lifecycle makes time-to-market critical. $ Content services for consumers IT services for business users Voice（Including mobile） 1980 Voice operation 2002 Transformation 2010 Non-voice operation

9. Value Chain Transformation Value distribution is shifting toward terminal and business service. The “carrier + equipment supplier”- focused value chain is meeting serious challenges. Value Future telecom value chain distributing Service provider Terminal Carrier Equipment supplier Forepassed telecom value chain distributing Service provider Terminal Carrier Equipment supplier

10. Content Industry Transformation Fixed & Mobile Networks Convergence (FMC) FMC implementation strategy IMS Solution – a major step for FMC Conclusion

11. Voice VoIP Streaming Dial-up High Speed Internet Message Wireless Data Wireless Voice Service FR X.25 IP Core PSTN ATM SDH PDH Cable ADSL Access CDMA GSM/GPRS Ethernet Network Architecture Today Separated Networks, Applications, Subscribers, and Services = High Cost and Low Efficiency

12. Future Network Architecture - Simplified Key Features：Convergence、Packet、Content & Service

13. OSS BSS AS SDP Service Platform Management Platform NGSN Service Control User Data Resources Control Session Control Business USB USB Network Control Center Family A Desirable Scenario SP/CP Access IP Network Optical Transport Cash Flow Information Flow Customer The key of transformation is Building Network Control Center

14. Benefits of the Future Network • Consistent Access, Session Control and Service Platform. • Cost Effective for Capex and Opex • Evolvable Architecture to IMS based Next Generation Network. • One Network Supporting all Services • Plenty of Terminals for Rich Services

15. Why FMC ? End-Users Network Operator • Single & simple bill • One operator for all services • Unified Fixed & mobile voice & data services • Consistent personalization • Same service experience • Optimized delivery • Via any terminal (Mobile, PDA, PC …) • Over any access network (GPRS, WLAN, DSL, HFC…) • One public number/contact address • Service continuity • Richer and universal service offering • Guaranteed interoperability • Market differentiation • Introduce new revenue generating services • Enlarge customer base & loyalty • Complete merger of Business Model • Reduce CAPEX and OPEX Mobile Handset Mobile Fixed Videophone Laptop Video On TV Video on PC

16. FMC experience: any terminal Integrated conference Integrated VPN Any terminals can be grouped Any terminal can join FMC Any terminal SMS/MMS inter-working Video inter-working Online profile BB Mobile Any terminal can be replaced Any terminal can inter-work

17. FMC experience: any place • Sustained service experience • Roaming among cities • Roaming among operators • Roaming worldwide Time zone A Time zone B Operator A Operator B City A City B Operator C Network intelligent Integrated user data IMS/VHE solution Personality service

18. Service continuity include • Voice call (VCC) • Video call • WEB service • Download service • Streaming service • Continuity features • Service should not be interrupted • Service list is adjustable • Media resource is adjustable • Network resource is adjustable • Billing plan is adjustable FMC Experience: Service Continuity • Continuity: service and session continue between access network and terminal without service quality degradation Policy command Policy command Continuity PDF Multimedia service Multimedia service • Local ware • High speed • Lower price • Wide area • Lower speed • High price Mobility manager • Fixed • Large screen • Hi-Fi music • High ability • Portable • Small screen • Lower ability Event trigger Session moves between terminals Terminal moves between networks

19. FMC Experience: One Number • One world for diversity terminals: one number, one bill • Virtual POTS • Virtual FAX • SME call center number • Support service number • POTS prefer • Hide personal number 22:00-08:00 08:00-18:00 18:00-22:00 Simultaneous Ring One number Routing Rules Sequential Ring No Answer/ Busy No Answer/ Busy/Reject

20. FMC experience: Converged Billing Charging for Voice Call One Bill for all Services Charging for Broadband Access …… Charging for Instant Message Charging for VoIP

21. FMC experience: Converged video services VOD Server Conference Server M-RBT Server MRF MCU Video Mail Box VIG8920 SIP RTP/RTCP SIP IP Bearer Network RTP/RTCP ISUP H.324M RTP/RTCP SIP SIP RTP/RTCP SOFTX3000 Fixed Mobile PS Core CS Core IAD BSS/ RAN Fixed and Mobile Convergent Multimedia Services solution provide: • Multimedia Ring Back Tone • Video Mail Box • Video On Demand • Web camera • Fixed and Mobile Video Interworking • Fixed and Mobile Converged Video Conference H.323/SIP Softphone H.323 /SIP Terminal H.320 Terminal

22. Content Industry Transformation Fixed & Mobile Networks Convergence (FMC) FMC implementation strategy IMS Solution – a major step for FMC Conclusion

23. Overview of FMC (Fixed Mobile Convergence) What’s FMC: FMC ≠ Full Services Operation, FMC should be convergent service experience for customers Interworking Dual-mode voice Service plane Integrated Bundled One number Operation plane Converged OSS / BSS Integrate VPN Single bill …….. Converged NM Converged service platform Network plane Converged core network Converged bearer network Converged device Network convergence CAPEX Operate convergence OPEX Service convergence Customer and Revenue

24. FMC Benefits Lower Down the OPEX – Study using financial analysis tool (STEM) from independent consulting companies Converged IP Network During Migration Legacy Network Large Customer Base and High Loyalty Separate selling coverage cross selling coverage Revenue contribution High Flexible Network and More Revenue Applications VAS Voice Connection Converged IP PSTN/PLMN “No technology comes with applications. When Internet emerged, it was constrained to a small group of people with limited applications. When a sizable Internet subscriber base was achieved, Internet applications and contents started booming…” -- Metcalfe’s Law

25. FMC Market Development • It is a long-term process to deploy FMC network and services • In some competitive telecom markets, a few telecom operators have deployed simple FMC services such as Fixed-Mobile service bundling, Tariff Bundling, Converged marketing strategy even converged BOSS • But most of telecom operator, they are still ongoing to research what’s IMS, how to converge fixed and mobile network and service platform. • The ideal FMC architecture should be based on all IP, supporting converged network, converged services, converged corporation organization support, multi-mode terminal, and more flexible business model. • Synergy among heterogeneous networks is the emphasis and key opportunity at the early stage of FMC

26. Huawei FMC architecture vision Multimedia RingTone Video call/Rich call Multi mode terminal Business Operating Support System UPT Personal App Platform … One billing, multi services and tariff package GSM/UMTS/CDMA/WiMAX/WLAN Call Center • Service POP • BRAS • GSN • WSN • MG • Bearer Layer • Metro • IP over WDM • MPLS • IPV4/IPV6 Mobile Access • Service Control • IMS core (CSCF/HSS/…) Enterprise Gateway ICT Platform Security Fixed BB Access Centrex/VPN … Media App Platform Operator’s Organization support xDSL /FTTx/Cable/Ethernet IPTV/Mobile TV Network oriented to Customer oriented Music/Gaming Home Gateway …… Why FMC ? • Convergence experience for customer • Reduce operator churn • Reduce OPEX/CAPEX • Enlarge customer base and loyalty Convergence Solution Highlight • Unified subscriber data /Convergent session control • E2E Ethernet/ IP over optical • Unified service POP • Unified SDP (ENIP/GUP/SMP) • Unified content platform (Game/Music/…) • Unified Data/Voice platform (VPN/IM/Message/VC/…)

27. Content Overview of FMC Huawei FMC Strategies and Solution FMC Services IMS Solution – a major step for FMC Conclusion

28. Converged Network Services & Content Session Control IP Connectivity GSM/UMTS Broadband WLAN Terminal Relationship between IMS and FMC • FMC≠ IMS ； • IMS can be deployed as convergent core network to provide convergent session control and service control, IMS is a component of FMC • FMC can be deployed gradually, even IMS is immature • Based on IMS, operator can provide convergent service experience • Convergent Service Platform, convergent Bearer Network, and convergent BOSS are the key factors to reduce CAPEX/OPEX Note: this is based on Shenzhen telecom estimation (4 M fixed voice user/1.5 M broadband user/2 M wireless user.

29. What is IMS? • IMS ：IP Multimedia Subsystem (3GPP TS 23.002) • The IM subsystem comprises all CN elements for provision of IP multimedia services comprising audio, video, text, chat, etc. and a combination of them delivered over the PS domain. • The entities related to IMS are CSCF, MGCF, MRF, etc. as defined in the stage 2 of the IM subsystem TS 23.228 [34]. See TS 22.228 [27] for some service examples of IMS. • IP = IP based transport • IP based session control • IP based applications • Multimedia = More than voice only, including video, text, and mixture of them • Subsystem = overlap the existing PS system

30. UMTS/GPRS LAN/XDSL WLAN BRAS AC MRFC/MRFP IM_SSF GSN BSS IM-MGW CSCF Simplified IMS architecture IP CAN Telephony Conference PoC RichCall Streaming DownLoad SCP OSA Messaging Presence Group OCS IMS Core HSS MGCF PSTN/PLMN Legend SIP/Diameter TDM

31. Why IMS? IMS is the most optimized core network solution for multimedia applications and FMC

32. IMS status: choice of multiple standard bodies Converged definition of standard bodies for IMS • Mobile network • NGN • Internet IMS • 3GPP R5 ~ • Initiation of definition • IMS architecture • IMS NE capability • Basing on 3GPP R5 • NGN basing on IMS • Converging with 3GPP • Internet tools set • SIP • SDP

33. Core Network Evolution Path Softswitch is an implementation of IMS, and can easily evolve to as IMS Components Soft Switch IMS Legacy PLMN/PSTN CSCF MSC Server Soft Switch MGCF AGCF ISUP SIP-T SIP MSC TS H.248 H.248 H.248 H.248 TDM IP Core IP Core MGW MGW IM-MGW IM-MGW PSTN PSTN GSM BSS GSM BSS/ UMTS RAN GSM BSS/ UMTS RAN PSTN Revolution: From TDM to IP Evolution: IP Multimedia Capability Enhancement Soft Switch Booming, R99/TDM Switching stop, IMS test! Step 1( 2005 – 2010): Soft Switch is unavoidable solution for Voice services, IMS focus on new multimedia services, CSI become a best technology choice to initial IMS Step 2 (2010 – beyond): ALL IP become mature (CS service to be replaced by IMS AS)

34. Relationship between Soft Switch and IMS • IMS is the best core network architecture for future • New revenue generation by offering abundant MM services • Open Network architecture, Access network independence • Sharing and long-term co-existing of Soft Switch and IMS • Soft Switch is mature & best solution for voice service experience continuity • Share of the IP backbone with Soft Switch network • Share of technologies and experience in terms of IP QoS, IP security, high availability and large-scale IP network operation • Share of the converged service platform • Soft Switch will evolve to the architecture of IMS • Soft Switch evolves (software upgrading) to MGCF, AGCF • MGW evolves (software upgrading) to IM-MGW

35. How to deploy IMS? • Stage 1- introduce non-real-time multimedia VAS, supplement for R4 CS domain. • Stage 2- introduce real-time multimedia service ,such as VoIP and Video over IP in IMS and support inter-working with CS and PSTN • Stage 3- the target ALL-IP network

36. ATM IP IP Signalling TDM SS7 Support System IMS Core MSC Server MRFC CSCF AS… HLR HSS CCF PS Internet CS PSTN MGW MRFP PDF RNC NodeB UTRAN SGSN GGSN Stage 1:non-realtimeVAS Open Service Interface Service Platform • Video Sharing，Presence，IM，PoC，Click-to-Conferencing New NE Modified NE

37. ATM IP IP Signalling TDM SS7 Support System Service Platform OSA-SCS MSC Server IM-SSF MGCF MRFC CSCF AS… HLR HSS IP backbone SCP CCF PS Internet CS PSTN PSTN IM-MGW MGW MRFP BCF PDF RNC NodeB UTRAN SGSN GGSN Stage 2:IMS and CS co-exist Open Service Interface New NE IMS Core • 引入MGCF和IM-MGW

38. ATM IP IP Signalling TDM SS7 OSA-SCS MGCF MRFC CSCF AS… HSS IP backbone CCF PS Internet PSTN IM-MGW MRFP BCF PDF RNC NodeB SGSN GGSN Stage 3：Target network Open Service Interface Service Platform Support System IMS Core UTRAN

39. Considerations for IMS deployment • Key technology and consideration for IMS deployment • Core network evolution (soft switch evolution to IMS) • Inter-working capability of IMS to legacy network • CSI (Combining Circuit-Switch and IMS) service offering • IMS based VCC (Voice Call Continuity) • IPV4 & IPV6 inter-connection • End to End QoS • IP Security • IMS Service Charging • Commercial and diversified IMS terminals

40. IMS Industry Status • Standardization • IMS will be the unified core network for both fixed network and mobile network in the future, which is the agreement of primary standard organizations. • 3GPP has a deeply research for IMS, in mobile domain, IMS architecture is basically mature, on detail, the research is going on. • In fixed domain, ETSI TISPAN has a deeper research for IMS, the NGN framework based on IMS is finalized, but the detailed requirement and technical research is still in progress. ITU NGN FG now is still in the first phase for IMS. • Operator attitude and deployment • IMS is in focus by European telecom operator, and deploying trial IMS in quick succession • Commercial restriction on shortage IMS terminal and innovative IMS services • Almost no commercial deployment and still no successful business model

41. Huawei Active Participation in Standard Bodies

42. RM9000 BCF Huawei IMS E2E Solution TopEng MM-Rich Call MM-Met MM-Game MM-PTX HO AS 3rd AS BOSS CSI Gaming Conference HO PTT/PTV AS Application UniPortal GTAS9900 OSA GW Portal Group Presence Messaging SCIM OSA Telephony AS IMS OMS ENIP Platform EMS CSCF3300 I-CSCF S-CSCF BGCF HSS9820 Session control MRS6200 HSS MSoftX 3000/SoftX3000 CSC3300 PGCF AGCF MGCF MRS iCG9815 P-CSCF CCF ENUM RM9000 Bearer control PDF & RACF DNS IP Core Network Access & inter-working NE40 UMG8900 SG7000 UMG8900 UA5000 SE2300 AMS SE2300 GGSN PDSN TMG SGW PGF AGF NACF SBC SGSN PCF HFC Access TDM Access xDSL / LAN Access WiFi / WiMAX Access PSTN PLMN Other packet network CDMA RAN UMTS RAN

43. Convergent Services with Multiple Access

44. DNS/Enum Client Portal GTAS9900 SMSC OMS2600 AP SAU MSOFTX MRS6200 CSCF3300 PS HSS9820 HLR Quidway WCDMA UMGW GSM GGSN LAN SGSN RNC NodeB BTS BSC/PCU FAST FAST FAST FAST Huawei IMS reference: Testing in Service Platform Service Layer Support System MM-PS MM-MESSAGING MM-XDMS IMS Core Control Layer CS Access Layer WiFi Signal Bearing User Terminal

45. Content Overview of FMC Huawei FMC Strategies and Solution FMC Services IMS Solution – a major step for FMC Conclusion

46. Conclusion • Telecom industry is confronted with structural changes and cross industries convergence (telecom, IT, Media, Computer, etc…), driven by Mobility and New wave of internet (like MSN, Skype, …) • Fixed and Mobile Networks Convergence (FMC) is the basis of the new Converged Industry. • FMC will allow the end user to seamlessly enjoy different services (including video services) any time, any place, with any terminal and with one bill. • For the operator, FMC is realized in 3 planes: network, operation and services. • IMS is a keystone in realizing FMC and has been the choice of many standard bodies such as 3GPP, TISPAN, IETF,… • Softswitch is a considerable step towards IMS deployment, and can migrate to be part of the IMS network. • IMS deployment will go through different stages where IMS and Softswitch will coexist for quite a long time. • Huawei is actively participating in the standardization of IMS through different standard bodies, and has deployed many IMS trials worldwide.

47. Thank You www.huawei.com