WWW.IMOBIX.COM

Evolution to 4G and Impacts on IMRAPT Workshop on IMR / Hong Kong, China / June, 2011

WWW.IMOBIX.COM

Introduction

This presentation’s scope is limited to an overview on LTE (4GSM) deployment and its impact on International Mobile Roaming.

Roaming LTE deployment is affected by both the complexity of national implementation and the complexity of Multiple Network Interoperability

For the sake of clarification, the main challenges and impacts to be reviewed are grouped as follows: Roaming Availability & Handsets Roaming Network Architecture Roaming Management Roaming Business Models Fraud and Security

WWW.IMOBIX.COM

(Vo)LTE Standardization Roadmap

GSMA VoLTE initiative announced at Mobile

World Congress Feb 2010

2010 2011

GSMA VoLTE demo with CSL at Mobile Asia

Congress, Nov 2010

GSMA VoLTE handset call demo with Verizon at

Mobile World Congress, Feb 2011

User-network interface defined

Apr 2010

Network-network interface defined Jun 2010

Roaming Call Scenarios, May

2011

Roaming Architecture, Jan

2011

Commercial Framework

templates, Nov 2011

LIVE VoLTE NETWORKS

2012

GSMA and Multi-Service Forum VoLTE test event, Sep 2011

Standards approval processes across different Industry Associations might collide with a major impact on LTE Roadmap. Roaming Frameworks standardization currently scheduled for March 2012 could be delayed

Roaming Availability & Handsets

WWW.IMOBIX.COM

Roaming Availability & Handsets

Roaming services and handset availability strongly depends on the frequencies used by the visited network:

Currently there are no global answers for LTE spectrum allocation and harmonization.

Differences of technology adoption across the world are a main threat to global Roaming availability

LTE-only Handsets are multimode and support both available frequencies (FDD and TDD), however there may be a need for “penta-band” LTE handsets (700/900/1800/1900/2600) for international roaming.

WWW.IMOBIX.COM

Roaming Availability & Handsets

Item TDD FDD

Paired SpectrumDoes not require paired spectrum as both transmit and receive occur on the same channel

Requires paired spectrum with sufficient frequency separation to allow simultaneous transmission and reception

Hardware costSubstantially lower cost (no diplexer needed) Diplexer is needed and cost is higher

Channel reciprocity Channel propagation is the same in both directions

Different channel characteristic (use of different frequencies)

UL / DL asymmetry Dynamic UL/DL capacity allocationFixed Capacity allocation as determined by local authority

Guard period / Guard bandLarge Guard Periods are requested to avoid UL/DL clashes in case of big distance; thus reducing capacity

No issue associated with Guard Bands parameters

Discontinuous Transmission Discountinuous UL vs. DL transmission impacts negatively on RF performance Continuous Transmission applies

Cross Slot InterfaceBase Stations should be constantly alligned (syncronized) to UL/DL Capacity allocation changes Not applicable

LTE Duplex Schemes Compared

WWW.IMOBIX.COM

Roaming Availability & Handsets

FDD Band Uplink Downlink

3G Main Regions of Use Numbe

r (MHz) (MHz)

1 1920 - 1980 2110 - 2170 √ Asia, Europe 2 1850 - 1910 1930 - 1990 √ Americas, Asia 3 1710 - 1785 1805 -1880 √ Americas, Asia, Europe 4 1710 - 1755 2110 - 2155 √ Americas 5 824 - 849 869 - 894 √ Americas 6 830 - 840 875 - 885 Japan 7 2500 - 2570 2620 - 2690 Asia, Europe 8 880 - 915 925 - 960 Asia, Europe 9 1749.9 - 1784.9 1844.9 - 1879.9 Japan

10 1710 - 1770 2110 - 2170 Americas 11 1427.9 - 1452.9 1475.9 - 1500.9 Japan 12 698 - 716 728 - 746 USA 13 777 - 787 746 - 756 USA 14 788 - 798 758 - 768 USA 17 704 - 716 734 - 746 USA 18 815 - 830 860 - 875 Japan 19 830 - 845 875 - 890 Japan 20 832 - 862 791 - 821 Europe 21 1447.9 - 1462.9 1495.5 - 1510.9 Japan 22 3410 - 3500 3510 - 3600

TDD BandAllocation (MHz) Main Regions of Use

Number

33 1900 - 1920 Asia (not Japan), Europe

34 2010 - 2025 Asia, Europe

35 1850 - 1910 Americas

36 1930 - 1990 Americas

37 1910 - 1930

38 2570 - 2620 Europe

39 1880 - 1920 China

40 2300 - 2400 Asia, Europe

41 3400 - 3600 USA

FDD Scheme / Frequencies TDD Scheme / Frequencies

Coexistence of UMTS and LTE might be an issue – CEPT Report 40.

Use of existing spectrum by operators may determine use of FDD or TDD.

New spectrum allocations depend on regulatory authorities

WWW.IMOBIX.COM

Roaming Availability & Handsets

LTE (S8) and 3G via GGSN (Gp) or PGW (Gp) or PGW (S4/S8) LTE (S8) and 3G via GGSN (Gp) or PGW (S4/S8) LTE (S8) and 3G via GGSN (Gp) or PGW (Gp) LTE (S8) and 3G via PGW (S4/S8) or PGW (Gp) LTE (S8) and 3G via PGW (S4/S8) LTE (S8) and 3G via PGW (Gp) LTE (S8) and GPRS (Gp) LTE only

COMPLEXITY

WWW.IMOBIX.COM

Roaming Availability & Handsets:The Path Forward

Regulators and Operators should work closely together on the allocation of frequencies and bands that are compatible with top Partner Countries and consider intra and inter-regional Roaming requirements

During the LTE World Summit Orange, TeliaSonera and T-Mobile promoted the use of 1800MHz for rolling out LTE globally. This frequency band was identified as best compromise between coverage and capacity.

EU Digital Agenda Vice President Neelie Kroes announced that the EU will ensure leveraged licensing across member countries in order to facilitate International Roaming availability.

The European Commission has established rules for licenses allocation that member countries shall adopt by end of 2011. Among others, this Regulation promotes and sets out the technical parameters for allowing the co-existence on the 900MHz and 1800MHz bands of 2G, 3G and 4G/LTE/WiMAX services

Roaming Network Architecture

WWW.IMOBIX.COM

2G/3G Roaming

Home Network

Core Network

Radio Access

Core Network

Visited Network

SS7

Voice Roaming

Other networks

Home Network

Core Network

Radio Access

Core Network

Visited Network

GRX

Data servicesData Roaming

• Voice traffic routed directly from the visited network.• Optimized path for QoS.• Signaling via SS7 for subscription/mobility management.

• Data traffic routed directly to home network via GRX.• Enables control of data sessions.

WWW.IMOBIX.COM

Roaming Network Architecture Impact

Home Network

Core Network

Core Network

Visited Network

IPX

Data services

Data services

New option to route delay sensitive services via visited network.

Challenges: Is this acceptable to operators? Customer experience/customer

control?

Legacy solution. Home operator maintains control.

No more SS7 SignalingSignaling over IPX

Radio Access

LTE Roaming - Main differences from 3GSM Roaming are:

- New Network Elements - New Protocols

- New Interfaces

WWW.IMOBIX.COM

Roaming Architecture

S6a

HSS

S8

S3

S1 - MME

S10

UTRAN

GERAN

SGSN

MME

S11

Serving Gateway UE

“ LTE

- Uu ”

E - UTRAN

S12

HPLMN

VPLMN

PCRF

Gx Rx

SGi Operator’s IP

Services (e.g. IMS, PSS etc.)

PDN Gateway

S 1 - U

S4

Home routed traffic-using GTP-based S8

In LTE there is only IP roaming

The signaling protocol is not MAP/SS7 anymore but is a Diameter Application

Diameter is an IP based protocol standardized by IETF

WWW.IMOBIX.COM

Roaming Network Architecture Impact

LTE was originally thought to be a purely IP based cellular data service. Recently defined standards for of Voice and SMS services over LTE (VoLTE) are under revision due to Roaming feasibility. Major impact was identified with:

Calls handover between networks with multiple technologies Optimal Routing for Roaming voice calls Security and Fraud threat audit Increased need for VoLTE quality

Flexibility of LTE implementation options represents a threat to interoperability. Solutions implemented today might need substantial assessment for future impacts on interoperability and IMR.

WWW.IMOBIX.COM

Roaming Network Architecture Impact:The Path Forward

Mobile Operators need to monitor on-going changes in LTE standards and ensure Roaming requirements are taken into account during the planning phase

LTE implementation option(s) should be submitted for expert review and Roaming requirements should be considered

Current LTE Roaming standards are still subject to dynamic changes. Mobile Operators need to keep up-to-date with developments during the current planning phase

LTE network capacity planning must be reviewed with LTE Roaming deployment in mind

Roaming Management Impact

WWW.IMOBIX.COM

Roaming Management Impact

New interfaces will have to be integrated into the Roaming Agreements: The new environment requires legal framework assessment and the creation of new documents

Requirements and capabilities associated with roaming hubbing are being analyzed

Mandatory Automated Agreements (technical & commercial details) update procedure (also called RAEX) does not currently support LTE

Major efforts are being invested across the GSM Association Working Groups to upgrade/assess all Permanent Reference Documents (PRDs) related to the Roaming contracts

WWW.IMOBIX.COM

Roaming Agreements Impact:The Path Forward

MVNOs should support GSMAs initiative for developments of standards and minimize interoperability risks by ensuring GSMA standards implementation

Review current Roaming Operational procedures and verify scalability to an LTE Roaming environment

Vendor services contracts should be reviewed and analyzed for LTE scalability ASAP (especially related to SLAs, volume based pricing, long term committments)

Roaming Business Model

WWW.IMOBIX.COM

Roaming Business Models Impact

Current LTE architecture does not support certain Roaming scenarios, thus restricting business models options.

The recently adopted ‘Activity based’ retail charging (f.i. Facebook, Youtube, Google browsing included in a bundle) may not be feasible in an LTE Roaming environment

In this LTE migration phase, operators tend to keep a conservative approach towards wholesale business models so that charging principles will not present major changes

Revenue Assurance mechanisms and required reporting will have to be assessed for the new LTE environment

Fraud & Security

WWW.IMOBIX.COM

Fraud & Security Impact

The merger of mobile, fixed and internet networks are now opening a once protected infrastructure

Development of Internet Innovations such as Social Networking will enable access to ‘vulnerable’ operators contact and Network Privileges

SIM server technology used in GSM gateway (SIM box) bypass could be used to relocate SIM cards in an international extension of fraud

Major risks are associated to Premium Rate Numbers usage in a VoLTE environment (IRSF)

WWW.IMOBIX.COM

Fraud & Security Impact

Fraud reduction measures are currently under discussion. Current procedures (Near Real Time Roaming Data Exchange) might be adapted but a debate on alternative solutions is still ongoing.

NRTRDE CONs Home Operator has full control

on traffic so that Anti Fraud procedures can be easily implemented ‘in-network’

NRTRDE is commonly out-sourced to a vendor thus with a negative impact on general costs

NRTRDE PROs NRTRDE principles and

framework are ready Vendors promise small costs

impact Alternative solutions present

gaps in case of CS-LTE calls handover

WWW.IMOBIX.COM

Fraud & Security Impact

Current GSM and UMTS security measures & methods are being reviewed

Newer security algorithms, longer keys are needed Extended key hierarchy is required New features, addressing new scenarios:

Home evolved Node B Relay Node

New topics Machine-Type Communication, Single Sign-On,

Protection against Unsolicited Communication over IMS

Conclusion

WWW.IMOBIX.COM

Conclusion

A large number of implementation options are planned for LTE based on current standards.

This flexibility constitutes a threat to interoperability which fully depends on set-up and migration compatibility.

While LTE Data Roaming Framework can be finalized soon, VoLte Roaming standardization, which is planned for March 2012, will be subjected to further delays.

Current wholesale and retail roaming pricing paradigms to not support the potential shift of services and volumes for LTE roaming.

Potential customer impacts (similar to what happened with migration from 2G to 3G), but with much higher degree of technical complexity, greater difficulty to resolve, and larger potential commercial impact.

WWW.IMOBIX.COM

Conclusion

Operators are very concerned about LTE Roaming commercial impacts, such as: Additional complexities recently discovered related to VoLTE that were not

taken into account during initial standards planning Required 3GPP LTE architecture changes are on-going while over 20

operators have already launched LTE services. New assessments will be required for those operators that are/will be LTE

provisioned before 2012 Due to the general trend in deceasing roaming prices (regulation etc. …)

and consequent budget cuts, many operators are choosing to delay or freeze LTE roaming launch

WWW.IMOBIX.COM

IMOBIX

WWW.IMOBIX.COM

Jeff Hunter

Mobile: +1 (954) 865-8832Main: +1 (954) 323-6767

jhunter@imobix.com

Contact