Fixed-Mobile Convergence: Roaming between Wi-Fi and Cellular
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1 Fixed-Mobile Convergence: Roaming between Wi-Fi and Cellular CDG Technology Forum on FMC Caesars Palace Florentine I & II Friday October 7, :30PM 3:00PM
2 Our Mission Enable and Protect All Forms of Interactions on Voice and Data Networks 2
3 VeriSign s Intelligent Infrastructure Portfolio Internet Services Group Naming & Addressing Directory Authentication Payments Managed Security Communications Services SS7 / IP Connectivity Intelligent Database Billing and Payments Network Mediation Mobile Content 3
4 Enabling and Protecting Billions Every Day Communications Commerce Content + 14b DNS queries + 3b PSTN queries + 140m IN queries + 1b security events + $100m e-commerce + 130,000 merchants + 450,000 websites + 7m billing subs + 200m SMS messages + 700,000 content transactions Intelligent Infrastructure Services Directory Connectivity Security Mediation 4
5 Exciting New Products Digital Content Services Market leader in Europe, launching US Unified Authentication Services U.S. Bank / Bank of America adopt VeriSign strong authentication IP Connect Services Suite of VoIP interconnect services New VeriSign Secured Seal Serving 18 million per day Intelligent Supply Chain Services Awarded contract to run Object Naming System 5
6 Fixed-Mobile Convergence Market Drivers Incumbent Local Exchange Carriers (ILECs) Counter the wireless substitution serious threat Broadband Telephone Companies (ASPs) Mobility enhances VoIP value proposition to capture share from ILEC Multi-Service Operators (MSOs) Quadruple play Cable TV, Broadband, VoIP, and Mobility Utilize service bundling to capture market share from ILEC Mobile Network Operator (MNO) Remove the final barrier to wireless substitution poor coverage More importantly, add fixed line service (VoIP) capture share from ILEC 6
7 Mobile Virtual Network Operator (MVNO)? Fixed line operator s call to action on a mobility strategy is critical However, an ill-planned effort will miss the mark Dilemma, become MVNO and fuel wireless substitution Reseller of competitor s product VoIP over Wi-Fi presents opportunity to add value to MVNO While in home/office, Wi-Fi enabled handset access to landline service Blended rate plan Move beyond the typical MVNO prepaid business model 7
8 Market Requirements Support existing usage patterns, seamless user experience Mobile device, single phone number, mobile address book Anchor user s identity and services to residential/enterprise (US/CND) Divert indoor mobile phone minutes of use to landline Preserves cellular minutes for use outside office/home Single number, direct inward dialing (DID) and caller id (CLI) Single voice mailbox (w/ cross notification) Facilitate user controlled mid-call handoff (Wi-Fi to Cellular) Capability to turn on/off automatic in-call handoff User acknowledged liability for mid-call rate plan change 8
9 Today s Work Around Technology Solutions Most work around solutions, designed to bypass MNO cooperation Two telephone numbers integrated through presence Click Call Delivery call forward from Class5/PBX, hides mobile number Click to Call web access to Class 5/PBX call control, hides mobile CLI Maintenance of two subscriptions devalues convergence Adds complexity and overhead, reducing margins Affective technology solution features true service convergence Wholesale roaming relationship - as apposed to MVNO 9
10 Home-MSC Technology Solution Ideal solution true service convergence Fixed line (VoIP) assumes role of home mobile exchange Single telephone number homed to user s landline service Call completion features landline based (voic , call forward, ) Roam to cellular model, calls routed to landline handed off to mobile Enables fixed line infrastructure to interrogate HLR (roaming location) Converge Services Gateway (SIP to IS-41/GSM-MAP) IP Handoff SS7 No answer handoff to cell phone Landline Mobile phone service Cellular Directory number homed to residential/enterprise Public Telephone Network (PSTN) Handoff to Cellular [call delivery] step 1 location discovery [TLDN] step 2 call forward [route to TLDN] 10
11 Infringes on Cellular Operator s Network Roam-to-Cellular necessitates access to home location register (HLR) SS7 access to query/update roaming information Provisioning access to customize call completion and messaging features Cellular operator reluctant to grant such invasive access Landline homed number and HLR access are key market barriers Apprehensive of loosing indoor MoU revenue Population of landline numbers anchored to fixed line service Landline Services VoIP Serving-MSC Cellular IP SS7 SS7 Cellular Operator s Home Location Register (HLR) Network Convergence Gateway interstandard roaming (SIP to IS-41/GSM- MAP) simulates Home/Gateway-MSC SS7 access to HLR to identify cellular presence (TLDN) and updates to HLR to reflect Wi-Fi presence (for SMS delivery) 11
12 VeriSign s has long history of enabling roaming + In 1993, received CTIA designation as Cellular Backbone Provider + In 1999, VeriSign deployed GSM MAP signaling + In 2004, VeriSign began integration of SIP signaling + Enabling roaming across all wireless network technologies GSM and ANSI-41 licensed spectrum, SIP unlicensed spectrum Cellular (GSM/CDMA) Inter-Network Roaming (seamless end-to-end service) Wireless LAN (VoIP over x) Suburban Urban In-Building Macro-Cell Micro-Cell Pico-Cell Home-Cell 12
13 VeriSign s Wireless IP Connect Service Inter-System Roaming Home System - fixed line infrastructure (unlicensed spectrum) Visiting System - cellular network (licensed spectrum) Clearinghouse - VeriSign Managed Service VeriSign s Settlement Services Billing feed (CDMA CIBER/GSM TAP) Inter-System Roaming Clearing and Settlement Roaming Visiting System Home System Inter-Carrier Billing Exchange Roamer Authentication/Location Billing Support System (BSS) Visiting Location Register (VLR) Serving Mobile Switching Center (MSC-S) VoIP 13
14 Appendix: Go to market use case A tool to expand and better serve the low tier and security/emergence markets
15 Target market low-tier subscriber markets Inter-carrier roaming agreements from 15 to 35 per minute Average subscriber logs 490 minutes per month (Yankee Group) Today, bucket of 400 anytime minutes $39.95/month Assuming only 72% of anytime minutes used, cost is 14 per minute Therefore, not attractive option for medium- and high-tier markets Intermittent cell phone users Minimal post-paid rate plans, 17 to 24 per anytime minute Prepaid rate plans, 25 to 35 Therefore, attractive option for low-tier and security markets 15
16 Potential market size Low-tier consumer and business as well as security/emergency markets represent 38% of subscriber base (approx. 48 million) Low-revenue (ARPU $25 to $40 with acquisition costs of $300) Most cellular operators try to move these users to other segments or other network operators (ideally one of the operator s MVNOs) 16
17 A vehicle to increase cellular penetration Low-revenue consumer markets to drive penetration Pre-teen, teenager and college markets (over 35 million users) 30% of credit worthy population without service (56 million users) Cellular operator s contractual sales model is not the answer Operators need to reduce acquisition and operating costs Pay-per-use landline channel introduces new business model No cellular contract or paying monthly cellular fees Landline operator bears customer acquisition costs Cellular operator wholesale relationship with landline operator Cultivating channel means change in cellular business model Cellular operator should remove equivalent amount of acquisition costs from wholesale roaming charges to impact viability of new consumer product 17
18 Value propositions across supply chain Mobile Operator Cost effective service delivery for low-revenue subscriber base Try-and-buy service leads to contract cellular subscription Multi-Service Operator (Cable or Landline) Improves competitive position, addition of mobility Drives broadband penetration Handset Manufacturer Stimulates handset churn, upgrade to dual-mode Increases market size, cordless phone displacement Subscriber Improved indoor (home/office) coverage Multi-service bundle, discounted telecom services on One Bill 18
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21 Product: Wireless IP Connect Sean Kent Convergence Product Manager (mailto) (tel)
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