Penetrating into Mobile Market
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1 Penetrating into Mobile Market A Strategic Proposal James Ni O8/21/2008
2 Some Facts Wireline Network subscriber population is shrinking Mobile Network will replace Wireline Network Mobile phone is convenience, flexibility, feature rich and multifunctional Per head count mobile subscriber vs. per household wireline subscriber US Mobile Subscribers surpassed 250 million in Nov (85% of population) Other countries have the same trend More people are considering to disconnect the wireline phones
3 Mobile Network is Evolving Just like VOIP is replacing PSTN IP/SIP based IMS core is replacing traditional mobile core IP/SIP based IMS core started the fix mobile convergence era access will break down the air interface barrier This does not only mean technology advance, but also business opportunities Mobile operator monopoly is collapsing Penetrating opportunity for new comers
4 What are the opportunities all about IP/SIP based IMS core opened up the core network signaling and media Opportunities for wireline VOIP operators access opened up the air interface Allows non-mobile operators to reach the mobile users Mobile operators still dominate the majority coverage However Uncovered spots are opportunities less populated rural areas Inside the building Enterprise may seek for more economical alternate solutions
5 Some Technical Background IP Multimedia Subsystem (IMS)
6 Some Technical Background Home base station HLR SMSC MSS Mobile Core Network (SS7) MAP-D MAP-D MAP-E Gd MAP-E ISUPv3 M3UA G.703 Voice AAA Server AS cell IPSec RADIUS / DIAMETER SIP SIP FGW IP/IMS Core Network RTP SoftSwitch/ MGCF MGW MNO VoIP Network
7 Access Architecture
8 Build Up Low Cost Mobile Network Using provides air interface Base Station Broadband Internet connects to IMS core via FGW make use of customer s broadband Enterprise leased lines Residential broadband (Cable, DSL, FIOS etc.) SIP for call signaling Interworking to PSTN/PLMN Challenges Spectrum license & usage (secondary market lease or rental)
9 Squeeze in the Uncovered Spots Macro Macro Macro Macro Macro Enterprise Residence Macro Macro Less populated rural area
10 How the cash flow comes in Business Model I Enterprise mobile traffic offload / redirect HLR AS Analog Phone ICSG SG PSTN CSCF IP MS FAP FGW MGC/MGW ICS200 PBX SIP Phone Signaling path Media path
11 How the cash flow comes in Business Model I Enterprise mobile traffic offload / redirect In-house mobile in-house mobile calls MS FAP FGW CSCF / AS MCG/MGW In-house mobile PBX phone MS FAP FGW CSCF/AS MCG/MGW PBX PBX phone In-house mobile PSTN /IP phone MS FAP FGW CSCF/AS MCG/MGW SG PSTN PSTN phone MS FAP FGW CSCF/AS MCG/MGW IP SIP phone Provide VLR function to incoming calls from outside Provide outgoing call roaming services
12 How the cash flow comes in Business Model II Personal Residential use Signaling path HLR AS Media path Analog Phone ICSG SG PSTN CSCF IP MS FAP FGW MGC/MGW ICS200 SIP Phone
13 How the cash flow comes in Business Model II Personal Residential use Profit-sharing plan to encourage residential femto subscriber to provide access to others Charge minutes to in-network users Charge roaming service fee to out-network users Bundle mobile service and VoIP service to attract subscribers Shipping femto devices v.s. the current SIP adaptor Users use their mobile handset to gain access International call is the killer service
14 How the cash flow comes in Business Model III Coverage Farm Service Provide coverage services to various mobile providers Charge roaming services fee
15 How the cash flow comes in Business Model IV International Coverage device can be used anywhere in the world with broadband access Provide international coverage as home service
16 Key Issues Spectrum license Buy or lease from secondary market FCC has rules and guidelines on this Make agreement with spectrum owners Roaming agreement with other mobile operators
17 Network Equipment Needs Network equipment Owned equipment and technology CSCF(SIP), MGC/MGW ICS2000 SG ICSG Partially owned equipment and technology VLR and application server PMC (need to add registration and MAP/ANSI.41 support) Can also buy 3 rd party equipment Not owned equipment and technology access point (FAP) gateway (FGW) 3 rd party equipment is available
18 Network Service Needs SS7 network services for mobile applications MAP / ANSI.41 support Subscriber DB sharing with other mobile operators Under the roaming agreement
19 Operation Plan Acquire spectrum usage permission Establish roaming agreement with mobile operators Build up test network Build up customer base Starting with enterprise customer, provide mobile service offload Gradually establish handin handout support Expand to residential coverage Operate and run the business
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