CHANGING DEFINITIONS OF MOBILITY
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1 A NEXTPOINT WHITE PAPER CHANGING DEFINITIONS OF MOBILITY CONNECTING USERS AND SERVICES IN A WIRELESS WORLD Mobility is the new frontier of IP networking, but there are still many challenges to overcome. Security, scalability, interoperability and monetization will always be concerns, but they become even more daunting in mobile deployments where users are able to roam seamlessly across networks. According to available market research, the customer demand is already here, and the devices and services are ready to hit the marketplace. The only thing missing is network architectures that have been designed to handle the explosion of mobile data and video. What can operators do today to prepare themselves to capitalize on network mobility? FOR MORE INFORMATION SIMPLIFY SECURE SCALE (240) info@nextpointnetworks.com
2 TABLE OF CONTENTS Introduction... 3 The World As We Know It Is Changing... 3 The Trend Open Networks... 4 The Tipping Point... 6 The World As We Will Know It... 7 A Move to Flat Architecture... 8 Network Element Consolidation... 8 Mobile Security and Quality of Service at Scale... 8 Mobile Access Interoperability... 9 Mobile Monetization Strategies For Addressing the New Mobility Environment Conclusion About NextPoint
3 INTRODUCTION In traditional network deployments, the operator had absolute control over the user experience within the confines of their own networks. But now, as the definition of mobility is being expanded and users are able to roam across network boundaries, the old paradigm of network operation falls short. Users are demanding increasingly complex services over a wider variety of devices and they want it on-the-go. Operators have to prepare for all combinations of users, content, services, devices, technologies and developers in addition to the standard obstacles presented by a mobile IP environment, which include security, scalability, interoperability and monetization. The growing demand for IP mobility is driving the industry-wide transition towards open networking, and the pressure is on the operators to prepare their networks today. This white paper examines the history and future of network mobility in addition to the obstacles and solutions operators will need to address as they make the transition. THE WORLD AS WE KNOW IT IS CHANGING The mobile paradigm is evolving. Profound changes are underway with devices as well as applications. Mobile devices are quickly becoming multi-function platforms delivering voice, data and multimedia applications. igr recently completed a study of the cellular industry suggesting that for people between the ages of 25 and 65, 70% percent will buy a smartphone for their next handset purchase. Device manufacturers like RIM and Apple are looking to capitalize on this trend by offering more devices with easy-to-use, full-feature data/multimedia capabilities. These devices, such as smart mobile phones, require mobile connectivity at any time and any location to enhance the user experience. The mobile connectivity explosion is already very apparent today in the content and information available. Broadband adoption has enabled applications such as YouTube, Facebook and MySpace, which all contain a large degree of high bandwidth multimedia content. Consider the impact of the Apple iphone. The iphone represents only 2% of the smartphone market, but it already drives 70% of mobile Internet usage with its full-feature, easy-to-use iphone Safari browser. As end-users are demanding service convergence, they want these applications to be made available anywhere and anytime over wireless broadband network. In this evolving mobile world, users want seamless access to Web 2.0 applications and increased control of their connectivity. 3
4 MySpace and Facebook are the top two social networking sites accessed via mobile in both the U.S. and UK. MySpace attracts 3.7 million U.S. and 440,000 UK mobile users. In America, Facebook s mobile audience is about 2 million, and in Britain, about 307,000. Rounding out the top three is YouTube in the U.S., with 901,000 mobile visitors and Bebo in the UK, with 288,000. Source: M:Metrics, August 2007 Report THE TREND OPEN NETWORKS To stay competitive and create end-user stickiness, the operators are showing a willingness to open up their networks. The market is now opening rapidly, and recent activity, investments and positioning by industry giants like Verizon, AT&T, Google and Apple reveal just how high the stakes are. Recent announcements from Verizon indicating that they are putting $20 million into a new laboratory designed to test and certify any device that seeks certification for their network point to a willingness on the part of the operators to open up traditionally closed networks to new and advanced devices. As carriers start opening up their networks, their infrastructure must evolve to keep pace with device and service innovation. On the device front, mobile devices are utilizing complex mobile protocols overlaid with an even more complex suite of security protocols to access not only voice, but also data and multimedia applications in a carrier s core. On the access front, mobile operators are investing in alternative access technologies such as WiFi and femtocells, which will keep access to their key customers open and available. A clear indication of this phenomenon was the recent announcement by Comcast, Google and Sprint to build a nationwide WiMAX network a $3.2 billion investment promising a ubiquitous non-cellular option for data traffic. At the heart of open networks is the IP core that provides the basis of next-generation services. IMSbased rich voice services are on the cusp of widespread deployment requiring only a packet switched technology with a quality of service (QoS) performance equivalent to today s circuit switched network. These new networks will provide the performance and capacity to deliver a richer experience to the consumer by combining presence, messaging, collaboration and video telephony. 4
5 Finally, emerging mobility standards (e.g. mobile IP, GTP, etc.), which are overlaid across the multitude of devices, access networks and the mobile core that is quickly becoming all IP, provide seamless mobility to existing and new devices across different access networks. Without these standards, true mobility is not possible, constraining the user to a nomadic existence bound by the geographical limitations of individual access technologies. As the access devices, technologies and core applications grow in number and complexity, it will be the operators responsibility to maintain the appearance of seamless mobility across access networks. In summary, mobile operators and service providers are compelled to offer advanced mobile data applications while masking the underlying technical challenges in order to provide secure access, quality of experience and seamless mobility for all voice and data-centric applications across multiple access networks (e.g. WiMax, WiFi/UMA, etc.). 5
6 THE TIPPING POINT The tipping point is approaching quickly as mobile subscribers are creating and consuming increasing amounts of mobile data content at home, at work and on the road. This mobile lifestyle will create a huge burden on the mobile operator s networks, and they will have to keep up with the rising requirements for quality of experience, security and mobility in the face of this data explosion. There has been an explosion in mobile data services, generating nearly 22% of network revenue in the last nine months. Rather than using mobile phones for just voice calls and text messaging, customers are increasingly exploring the mobile Internet and using and social networking sites to keep in touch. Mobile gaming is already a major source of bandwidth consumption, and this trend is expected to grow steadily as more game-ready devices become available. Additionally, a surge in people who watch major events such as sports and concerts on mobile devices is expected to become a major choking point due to extensive bandwidth requirements Mobile Subscribers By Year and Service Subscribers (M) Mobile music Mobile video Mobile gaming Source: IDC #204719, #207275, # The total number of mobile VoIP users is expected to reach 100 million in 2011 due to VoIP, video, music, gaming, radio, news and instant messaging services being coupled with mobile devices. Asian operators are currently rolling out a faster 7.2 Mbps HSDPA option having experienced tremendous back haul bottleneck problems due to demand exceeding network capacity. The usage of WiFi in public has also been increasing every year as evidenced by the growth of hotspot coverage across the world. The availability of broadband WiFi access at these hotspots encourages data usage for business travelers in airports, hotels and convention centers. In order to maximize the benefits of their 3G data services, mobile operators are motivated to facilitate ubiquitous data access with seamless roaming between the two access networks. 6
7 Some recent announcements: T-Mobile reported Q3 07 3G data volume increased 57% from Q2 07 Telefonica noted that O2 saw data volume doubling each quarter in 2007 AT&T Mobility reported in February 2008 that wireless data traffic in 2007 was four times greater than 2006 Infonetics predicts 336 million mobile video capable handsets will be in the market by 2009 THE WORLD AS WE WILL KNOW IT 3G technologies promise to deliver significantly higher bit rates than 2G technologies, and wireless service providers see a great opportunity to capitalize on the ever-increasing demand for wireless broadband and take advantage of the technology innovation that improves the economics of deploying mobile broadband networks. Consequently, there is an expanding revenue opportunity from a growing number of consumers who are demanding the same experience and applications that they enjoy on a fixed wireline connection over wireless anywhere, any content, fixed or mobile. The solution is LTE (3GPP Long-Term Evolution), the next-generation 4G network. In addition to enabling fixed-to-mobile migrations of applications such as voice over IP (VoIP), video streaming, music downloading, mobile TV and many others, LTE networks will also provide the capacity to support an explosion in demand for connectivity from a new generation of consumer devices tailored to those new mobile applications. LTE will provide a superior user experience and support even more demanding applications, such as interactive TV, user-generated videos and advanced gaming. Location Femtocell Fixed-Line BAN Access Agnostic Web/Gaming SUBSCRIBER Roaming Subscriber WLAN Video/IPTV UMA IP/IMS/NGN Core Data/IM UMTS RAN Jen: LOL! I know! Dee: too funny. Jen: GTG, TTYL! bye! SEND Service Agnostic VoIP/PTT 3GPP2 RAN ACCESS NETWORKS OPERATOR CORE SERVICES Operators will need to be access agnostic at the network core in order to connect a growing number of roaming users and devices to complicated services such as location/ presence, Web surfing and video. 7
8 A MOVE TO FLAT ARCHITECTURE A significant implication of rolling out a high-speed access network such as LTE will be that the throughput bottleneck starts shifting towards the core. This has a huge implication on today s network architecture, which is hierarchical. To reduce bottlenecks in the networks, operators need to start considering flattening their network architectures to reduce latency for data applications, effectively reducing CAPEX and OPEX. This is fundamentally the rationale behind the architecture of the Evolved Packet Core (EPC) for LTE access. However, the EPC is a few years away, and it is not clear at this point if this will replace the current core altogether or if it will coexist with it for a period of time. Clearly, mobile operators need a migration plan from their infrastructure vendors as their core network evolves. They need steps that can help with the evolution of their current network architecture. NETWORK ELEMENT CONSOLIDATION User-plane network element consolidation will be a key step towards flattening the core architecture. Direct tunneling between the RNC or a femtocell (for non-3gpp access) and the GGSN will be an important step towards flattening the network. Open standards such as ATCA will play a key role in providing platforms for consolidation. These platforms will provide a scalable architecture that evolves as the need for scale and high bandwidth increases over the years. Network node design will also need to take into consideration simultaneous support for session-based and non-session-based data applications. Evolution plans will be needed to move from primarily voicecentric offerings by the operators to mash-up applications while simultaneously protecting the operator s infrastructure investment. MOBILE SECURITY AND QUALITY OF SERVICE AT SCALE Security has always been an important component of networking, and it is doubly important with the explosion of data traffic in the mobile networks. In addition to the usual IP viruses and service disruptions, operators must also defend their networks against new threats such as WiFi poachers and other intruders that illegally drain valuable bandwidth resources or steal personal information. Security will need to be provided in a manner that is access agnostic as the IP core will see traffic from several different access networks. Network access edge gateways will need to support multiple authentication and security schemes some appropriate for session-based applications and others for data applications. For example, use of sophisticated multi-layered security policies to protect service providers networks against a myriad of threats including flood attacks, DOS/DDOS attacks and SIP signaling attacks all of which are designed to disrupt or disable VoIP and IMS networks will need to be supported. 8
9 Also as high bandwidth and high-speed applications become mainstream, these gateways will need to guard against network bottlenecks. These devices will need to play a key role in throttling the traffic based upon the type of traffic, the source it was coming from and the capability and scalability of the downstream devices. As the infrastructure evolves, the edge devices will need to keep up with the scale and performance demands of the network. For instance, secure access and varying levels of quality of service will need to be provided for hundreds of thousands of users. MOBILE ACCESS INTEROPERABILITY The overriding concept behind open networking and convergence is the ability for users to roam freely from one access network to another without service interruptions a seamless, real-time hand-off of complex data applications as the core evolves. In order for this to be possible, the edge devices will need to support mobility standards such as Mobile IPv4, Mobile IPv6 and GTP. Given that the early adopters of network evolution will likely be CDMA operators, these standards will be very important to ensure interoperability between such access networks and the evolving core. Network interworking elements such as PDG/TTG and PDIF will need to provide a migration path to the evolved packet core. It is critical for operators to build out their networks with equipment that is access agnostic especially in these pioneering days when the access technologies have yet to be fully standardized. The problem requires a holistic approach. As the access technologies continue to grow in number, it will become increasingly more critical that the devices and technologies are compatible with each other across network boundaries. For session-based applications, support for interworking between IETF SIP and 3GPP would be critical at the network edge. This will also require direct collaboration between network architects and operators in industry forums such as the Femto Forum and WiMAX Forum. While it is understood that some technology will need to remain proprietary in the spirit of competition, operators will find it increasingly difficult to remain competitive if their equipment and technology do not play well with others. In an open networking environment, interoperability and collaboration will be universally beneficial. But almost paradoxically, an industry-wide commitment to working together will drive competition. The rate at which technological innovations emerge and spread throughout the industry will accelerate rapidly. It will be up to the individual operators to prepare and maintain their networks in order to accommodate future developments. 9
10 MOBILE MONETIZATION At the end of the day, the bottom line is profit. The massive investments required to transition to an open networking environment are all for naught if there is no way for the industry to pay for itself or ideally generate higher revenue and profits to operators, providers and developers. This requires an objective way for operators to monitor and monetize the activity within their networks a task that is complicated further when more than one network is involved. The answer lies in real-time session management. Real-time session management lets operators bill on a session-by-session basis, so they can manage user experience on a customer-by-customer basis. The result is a shift from best effort service quality to a tiered system capable of delivering the equivalent of 911 calls in terms of quality and reliability and bandwidth to users who are willing to pay for it. Increased management and visibility will allow operators to allocate more of their resources to overseeing the delivery of services. Today, operators must be able to deliver a suite of differentiated and personalized, blended services to specific subscribers an accomplishment feat that requires a new level of network flexibility and control. The challenge then becomes how to sustain the average revenue per user (ARPU) for so-called platinum users and upselling gold users to the platinum level. If they are going to pay more, they will need to see tangible evidence that it is really worth the extra money. This can be done by ensuring that bandwidth is properly managed and distributed to the high-arpu users using real-time session management. But the key to maintaining subscriber satisfaction is mediating with content providers and other carriers to ensure that the latest content and services are available on the network. In an environment of social networking, video sharing and online gaming, user expectation is higher than ever and they will sign up with whoever offers the services first and then change to whoever offers it best when the first contract is up. Because of this trend, the pressure on operators to remain competitive will never let up. Additionally, the time required from conception to deployment of new services will need to be compacted in order to reach the marketplace as quickly as possible. Shortening the required time-to-market period will provide operators with a strong market advantage and profit opportunity. 10
11 STRATEGIES FOR ADDRESSING THE NEW MOBILITY ENVIRONMENT Just as the users, content and developers are already in place, the technology to make it all possible is currently available. Operators only need to know what to look for and where to look. NextPoint Networks offers unique solutions to the challenges facing mobile operators who are struggling to accommodate wireless, femtocell and blended technologies today and see the need to evolve their networks in the face of the mobile data explosion. UNC/ Femto Gateway SEAMLESS Media Gateway (MGW) Mobile Softswitch SBC/P-CSCF/BGF PSTN Femtocell Seamless IMS Core Peers & Partners FCG IBG UMA SeGW IP Net Radio Network Controller (RNC) MOBILITY WGW TTG/PDG xgsn WiFi Node B Femtocell FCG: Femtocell Gateway IBG: Integrated Border Gateway WGW: Wireless Gateway NextPoint s gateway solutions allow operators to simplify, secure and scale their networks at the access edge to meet the growing demands placed on networks by mobile users, devices and services. In traditional network architectures, operators dealt with the rising number of users by adding more devices. This has worked for smaller increases, but it is far from an ideal solution because it makes network construction messier and more difficult to manage. Operators will need a new approach because in the next generation of open networking, managing the physical design of networks will play a critical role in managing the activity within them which will be important for security and monetization purposes. 11
12 NextPoint s Integrated Border Gateway (IBG) solutions are purpose-built for mobile, fixed access and FMC applications that empower the operator by offering flexibility in network architecture design and implementation delivered on an ATCA platform. The IBG delivers in this respect by incorporating a best in class security gateway, mobility solutions and session management capability. The IBG provides a simplified network design that reduces costs and improves network reliability and performance by serving as the connecting point between the functional elements of the access side and the core side of the network. The NextPoint Integrated Border Gateway provides the comprehensive security, QoS and IP session mobility platform required to manage the explosion of IP voice, data and multimedia applications and enable the complex interactions between carriers, content providers and subscribers that the convergence of fixed and mobile networks demand. Using the IBG, carriers can provide an access agnostic security solution for connecting large numbers of subscribers using various types of handsets to their core IP network. It also provides carriers with the ability to seamlessly connect these subscribers to their voice, data and multimedia applications regardless of whether the session originates from a fixed or mobile source. NextPoint s Integrated Border Gateway solutions provide an evolution path as the operators networks evolve protecting their investments today and future-proofing them for tomorrow s networking needs. NextPoint Evolution Model Access Network Mobile Core IMS Core 2G device or Femtocell IPSec IBG Circuit Switched Packet Data IPSec Tunnel / Transport 3G Devices with Data Services IBG 3G SIP enabled device or Femtocell IPSec Tunnel / Transport IBG Operator needs a migration plan as the operator s network evolves... Deploying the IBG: An investment protection 12
13 CONCLUSION By clinging to closed network architectures, operators are merely postponing the inevitable and missing out on the valuable opportunities presented by IP mobility. The operators who are unprepared or unwilling to adapt to their new positions and responsibilities will be hurt most by the transition. If an operator falls behind and loses out on these early advantages, it will be extremely difficult if not impossible to catch up to their competitors as they continue to gain momentum and larger traction in the marketplace. Additionally, open networking will expose operators to a new level of competition that they will have to prepare for. In an open networking environment, operators will have the additional challenge of keeping their networks up-to-date in relation to the demand of developers and customers. As such, they will need an architecture that is able to connect and carry all current and future access devices and services. Enabling the Subscriber to Move Seamlessly From One Access Network Topology to Another Subscriber Mobility Service Protection Security of the Carriers IP Services and Core Networks From External Attacks Operator Investment Protection & Future Proofing Providing a Consistent Authentication Experience Across Disparate Access Networks Access Security Subscriber Quality of Service Policy Driven Bandwidth and Resource Allocation Ensuring a Positive Voice, Data and Video Service Experience Voice, Data and Multimedia NextPoint protects operators investments by equipping them to meet the security and quality of service demands found in a mobile networking environment. The NextPoint product line has been purpose-built to address the management, security and scalability challenges facing fixed, mobile and blended operators. NextPoint products give operators the flexibility to build out IP networks today and continue building on that foundation into the future a future that looks brighter than ever for those who are prepared. 13
14 ABOUT NEXTPOINT NextPoint is a leading provider of secure and intelligent IP-based connectivity solutions that connect devices to networks, and networks to networks, enabling high quality voice, data, and video sessions to flow, efficiently, securely and reliably. NextPoint offers an access-edge-to-peering-edge solution for fixed/ mobile operators. NextPoint enables operators to build IP-based networks today, and continue building on that same foundation tomorrow, without trading off either performance or cost. NextPoint serves wireless, wireline and blended operators, and works with the world s largest systems integrators and network equipment providers to ensure interoperability and integration with traditional and next-generation platforms providing immediate value today, while remaining ready for the future with fully IMS-ready technologies. NextPoint s solutions incorporating session border controllers, integrated border gateways, and femtocell gateways (wireless gateways enable operators to increase their revenues (by delivering more services to their subscribers), control costs (by dramatically simplifying their network elements and management), and easily extend their capabilities through flexible software and equipment upgrades. Natasha Tamaskar Director, FMC Technologies NextPoint Dr. Natasha Tamaskar brings over 20 years of industry experience with particular expertise in building security and communications products. As the Vice President of Product Management and Marketing for NextPoint, Dr. Tamaskar drives the product strategy and direction for NextPoint s Security, Mobility and Integrated Border Gateway solutions. Prior to NextPoint, Dr. Tamaskar was responsible for Product Management and Technology at Reef Point Systems (now NextPoint) and drove the product and technical strategies and requirements, as well as the architecture and direction, for Reef Point s Security Universal Convergence Gateway products. As well, she built and launched the company s IP Multimedia Subsystem (IMS) product portfolio. Prior to Reef Point Systems, Dr. Tamaskar was the Research and Development Lead for Nortel s Enterprise Secure Edge Router program. She has also held several technical leadership positions with Mei Technology, which was acquired by MATCOM in Dr. Tamaskar holds a Ph.D. in Computational Physics from the Liquid Crystal Institute at Kent State University; an M.S. in Physics from the University of South Florida; and a B.S. in Physics from the University of Delhi, India. # # # 14
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