Natalija Gelvanovska. The opinions expressed in this presentation are the personal views of the author and do not prejudge decisions of the RRT

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1 UMTS TRENDS LTE INTERCONNECTION Natalija Gelvanovska The opinions expressed in this presentation are the personal views of the author and do not prejudge decisions of the RRT

2 3G History 2 psl

3 3G History Work on a third-generation (3G) mobile communication started in ITU in the 1980s; First recommendation defining Future Public Land Mobile Telecommunications Systems (FPLMTS) was issued in 1990, later revised in the name FPLMTS was changed to IMT-2000; Task Group 8/1 within ITU-R developed a range of recommendations for IMT- 2000, defining a framework for services, network architectures, radio interface requirements, spectrum considerations, and evaluation methodology: Up to 2 Mbps in an indoor environment; Up to 144 kbps in a pedestrian environment; Up to 64 kbps in a vehicular environment. These numbers became the benchmark that all 3G technologies were compared with. Source: [3] 3 psl

4 3G History (2) 3G in Europe was named Universal Mobile Telecommunications Services (UMTS); Number of 3G projects were run, among them: RACE, CODIT, ATDMA, ACTS, FRAMES; In early 1998 ETSI selected technologies for UMTS: Wideband CDMA (WCDMA) and TD-CDMA (Time Division CDMA); In 1998 the Third Generation Partnership Project (3GPP) was formed by standards developing organizations from all regions of the world: Main task: to maintain parallel development of aligned specifications in multiple regions; Current partners of 3GPP are ARIB (Japan), CCSA (China), ETSI (Europe), ATIS (USA), TTA (Korea) and TTC (Japan). Source: [3] 4 psl

5 3G History (3) In parallel to 3GPP the partnership project called 3GPP2 was formed in 1999; It also develops 3G specifications, but for cdma2000: 3G technology developed from the 2G CDMA-based standard IS-95. 3GPP2 is also a global project like 3GPP; 3GPP2 partners are ARIB (Japan Japan), CCSA (China China), TIA, TTA (Korea) and TTC (Japan); The work in 3GPP is carried out with relevant ITU recommendations in mind and the result of the work is also submitted to ITU; Project partners are obliged to identify regional requirements that may lead to options in the standard in order to enable global roaming: e.g. regional frequency bands, special protection requirements, etc. 5 psl Source: [3]

6 3GPP schedule The 3GPP documents are divided into releases, where each release has a set of features added compared to the previous release. First commercial LTE was launch by TeliaSonera in the end of 2009 Source: [3] 6 psl

7 3GPP Releases Together referred to as HSPA. With HSPA, UTRA goes beyond the definition of a 3G and encompasses The first broadband major mobile addition data. of radio access features to WCDMA is Release 5 with High Speed Downlink Packet Access (HSDPA) and Release 6 with Enhanced Uplink; Next Releases enhance broadband capabilities. Source: [3] 7 psl

8 Mobile broadband evolution 3G up to 2 Mbps 8 psl Source: [3]

9 UMTS Architecture Functionally network s elements are grouped into: User Equipment Core Network is adopted New Core defined Network interfaces form GSM. Hence system based Radio Access on WCDMA Network with new Radio technology may enjoy a global roaming. User Equipment interfaces with the User and the Radio interface; Core Network switching/routing of calls and data connections; Radio Access Network (RAN, UMTS Terrestrial RAN - UTRAN) Radio-related functionality; Source: [3] 9 psl

10 UMTS Architecture - UE Electrical User Equipment: interface between Mobile USIM Equipment and ME Mobile Equipment (ME) radio terminal of the user used for communication over Uu interface; UMTS Subscriber Identity Card (USIM) smartcard which holds the subscriber identity, performs authentication, stores encryption keys, etc. 10 psl Source: [3]

11 UMTS Architecture - UTRAN Interface UMTS Terrestrial connects Radio Node Access B Network: Node and B RNC Interface connects RNCs Node B radio resource management, converts data flow between Uu and lu; Radio Network Controller (RNC) owns and controls radio resources in its respective domain. 11 psl Source: [3]

12 UMTS Architecture - CN Core Network: Home Location Register (HLR) stores the master copy of the user s service profile; Interconnection with Mobile Switching Center/Visitors Location Registry (MSC/VLR) the switch (MSC) and the database which serves External UE in its Networks: current location separate for circuit switched (CS) services; for Packet Switched and Circuit Switched. Gateway MSC (GMSC) switch where UMTS PLMN connects external CS networks; Serving GPRS Support Node (SGSN) functionally similar to MSC/VLR, but serves packet switched (PS) services; Gateway GPRS Support Node (GGSN) functionally similar to GMSC, but user solely 12 psl for PS services. Source: [3]

13 Network s and Market s developments 13 psl

14 What s new in Mobile market and Mobile networks development? Expansion of Mobile networks Mobile markets are growing: in Vietnam number of mobile subscribers in 2Q 2009 grew 86 proc. comparing to 2Q 2008; in Indonesia 46 proc.; in India 52 proc. Changes in the market of network equipment: Costs of network equipment decreased; Innovative solutions allow to reduce the power consumption and volume of equipment needed. Unconnected will be connected till 2015 via mobile networks.

15 What s new in Mobile market and Mobile networks development? (2) US National Broadband plan The FCC used the Digital Inclusion Summit to preview its National Broadband Plan, the full details of which will be presented to the U.S. government on 17 March, 2010; Currently 93 million Americans do not have broadband at home; Main objective is to get 90% of the population online by 2020; The objective set should be achieved using wireless technologies: < > FCC will consider proposing the use of wireless spectrum to launch a "free or very low cost" nationwide broadband service "In order to ensure long-term American competitiveness and prosperity, we must not leave one third of the nation behind," said FCC chairman Julius Genachowski; Wireless technologies is a key for future broadband development. 15 psl Source: [1]

16 What s new in Mobile market and Mobile networks development? (3) Broadband Subscription Forecast IP traffic Forecasts Source: Ericsson M2M data traffic increasing, but still very small part form total Broadband traffic, but could overtake the voice traffic in Source: Cisco Systems Source: Informa 16 psl

17 Why mobile networks should undergo the evolution? The global IP traffic more than doubled during last two years and for the majority of this traffic is responsible consumer video; Massive amount of traffic is consumed by IP traffic of video on demand, Internet video, exchange of video with other users through P2P: In billion video streams were consumed over the Internet each month in US and 95 proc. of that is user generated content. Internet usage is much less representing classical communication model in a form of client server, i.e. passive downloading of content; Users distribute the content they have created to online social networks and blogs: Increasing worldwide broadband penetration; rocketing sales of digital cameras and mobile phones with photo and video capabilities; e.g. 50% of Korean Internet users 50% of Korean Internet users report having a homepage and/or a blog [Source: Korean Internet White paper, 2008].

18 Why mobile networks should undergo the evolution? (2) The vast majority of video traffic will remain in fixed networks, but portion of video traffic is liable to be shifted into mobile networks. Mobile Internet becomes a daily activity: The number of people browsing the Internet over their mobile more than doubled in January 2009 comparing it to January 2008 in US [4]; Social networking is drawing new users into the Mobile Web: social mobile networking grew 152 percent from November 2007 to November 2008 [5]; End-Users chose smart mobile devices: in 2009 the shipment of smart phones increased, though the total number of mobile devices shipped declined [6]; We observe emerging social aspects of video. Video is becoming an integral part of communication services: already 25% of Skype traffic contains a video component. The conclusion is that video definitely is going to have an impact in the mobile broadband environment [3]. 18 psl

19 What are the tasks for the coming mobile technologies? Operators experience 10-fold Mobile (but not only!) operators face Video problem: increase in traffic, while increase Video consumes huge amount of traffic; in revenues is about 10 proc. Consumer s willingness to pay is not correlated to the amount of traffic consumed. Source: [3] Result: increased traffic does not result in proportionate increased revenue. Mobile data faces challenges of scale that need to be handled within the RAN and the backhaul networks. Dominant type of traffic is being changed from voice to data. Existing networks are adopted rather to dominant type of traffic which is voice, hence massive increases in the data traffic can stress the existing RANs and backhaul infrastructure of Mobile networks. To overcome those challenges is the task for the coming Mobile technologies. 19 psl

20 What are the tasks for the coming mobile technologies? (2) The task is to optimize the Wireless network services to support the dominant traffic type, moving from voice-driven revenue to worldwide data-driven architectures: The cost per bit must be reduced for operators to remain profitable; Networks with greater capacity but lower costs per bit need to be deployed to handle the future demand for mobile Data broadband; Technical solutions are developed under 3GPP Long Term Evolution (LTE) project: should allow operators to satisfy the demand for mobile broadband and compensate for the decline in voice and messaging revenues. Not only revenues from Data but also the overall profitability will increase Voice Source: Nokia Siemens Networks Source: Analysys Mason 20 psl

21 LTE and beyond 21 psl

22 What is LTE? LTE is a 3GPP project to evolve UTMS towards 4G requirements; 4G requirements are established in IMT Advanced ITU-R recommendation the main of them are the following: peak data rates of up to approximately 100 Mbit/s for high mobility such as mobile access and up to approximately 1 Gbit/s for low mobility such as nomadic/local wireless access; Scalable bandwidths up to at least 40 MHz should be provided. A 4G system is expected to provide a comprehensive and secure all-ip based solution for at least: IP telephony, ultra-broadband (Gigabit) Internet access, gaming services and HDTV streamed multimedia; Opinions diverge whether LTE may be treated as 4G or not: Opponent states, that LTE does not comply with all the requirements established for IMT Advanced and name LTE as pre-4g ; Proponents argue that LTE is designed to comply with the ITU-R requirements for IMT Advanced. The fist ever commercial LTE was launched 14 of December 2009 in Stockholm and Oslo, and was branded as 4G. 22 psl

23 Main features Unlike 3G, which is based on two parallel infrastructures consisting of circuit switched and packet switched network nodes respectively, 4G will be based on packet switching only; By the time that 4G is deployed, the process of IPv4 address exhaustion is expected to be in its final stages. Therefore, in the context of 4G, IPv6 support is essential in order to support a large number of wireless-enabled devices; Advanced antenna system (Intelligent antennas): The performance of radio communications depends on an antenna system; to achieve the goal of 4G systems Multiple antenna technologies were emerged; Spatial multiplexing technology Multiple-input multiple-output (MIMO): Spatial multiplexing involves deploying multiple antennas at the transmitter and at the receiver; Independent streams are transmitted simultaneously from all the antennas; Allow to Increase the data rate into multiple folds with the number equal to minimum of the number of transmit and receive antennas. 23 psl

24 LTE Architecture - Migration LTE aims for an all-ip simplified infrastructure, but in reality LTE must interwork with the 3G network, Internet Multimedia Subsystems (IMS), and other pre-existing existing elements; The LTE Network consists of updates or replacements for many components already in the wireless network. For example: enode B replaces the Node B, to accommodate the change to E-UTRAN (Evolved UTRAN/RAN) from the older standard in the 2G and 3G RANs; EPC (Evolved Packet Core, known also as SAE, System Architecture Evolution) replaces the GPRS core network; The SAE Gateway is a new element that acts as a Serving Gateway and a Packet Data Network Gateway to handle traffic and data-plane aspects; Diameter signaling replaces SS7 signaling in the Home Subscriber Server (HSS), an existing element which is used by the new MME (Mobility Management Entity) node. In total: less network elements, simplified architecture and management. 24 psl

25 Is there something after the LTE? LTE Advanced LTE Advanced is a candidate for IMT-Advanced standard; Formally was already submitted by the 3GPP to ITU-T in the fall 2009; LTE Advanced will be standardized in 2010 as part of the Release 10 of the 3GPP specification; The target of 3GPP LTE Advanced is to reach and surpass the ITU requirements; LTE Advanced should be compatible with first release LTE equipment, and should share frequency bands with first release LTE. 25 psl

26 Interconnection 26 psl

27 Why does Interconnection change? Considering the current network developments, the only possible means to interconnect in the future will ne IP-based; Modifications of the Core Network are important because they have direct impact on the implementation of Interconnection; Splitting the core network s functions results in a split of interconnection into service-oriented interconnection and connectivity-oriented interconnection. 27 psl

28 Why does Interconnection change? Interconnection (SoIx) The physical and logical linking of NGN domains that allows carriers interoperability. This does apply for carrier-grade voice and/or multimedia services over IP interconnection. The level of interoperability depends e.g. on services, Quality of Service, security. Legacy telco networks are interconnected through standard E1/T1 interfaces. Serviceoriented Signaling and signalling connectivity (i.e. are session-based), combined within which one provides interconnection defined link, levels of which connects two elements of respective core and service providers to offer services over NGN <...> with control, networks. Connectivityoriented Interconnection (CoIx) The physical and logical linking of carriers and service providers based on simple IP connectivity, irrespective of the levels of interoperability. For example, an IP interconnection of this type is not aware of the specific end-to-end service and, as a consequence, service-specific network performance, QoS and security requirements are not necessarily assured. This definition does not exclude that some services may provide a defined level of interoperability. However, only SoIx fully satisfies NGN interoperability requirements. Source: [7] 28 psl

29 Interconnection regulatory environment Telecom Self-regulating International level Internet Debate around International Internet Connectivity regulation Ex-ante regulation Interconnection disputes between ISPs? National level Continue, expand or withdraw interconnection regulation?

30 International interconnection There are two aspects to the development of IP interconnection approaches: national and international: At the national level, regulators are definitely taking the leading role today; Activities at the international level are much better organized and are led by a number of industry groups. Several industry groups are attempting to define the landscape for future IP-based interconnection, among them: GSM Association (GSMA), the IP Internetworking Alliance (IPIA), the i3 Forum, and the Fixed-Mobile Convergence Alliance (FMCA). The GSM Association (GSMA) was formally created as the "GSM MoU Association" in It represents the interests of the worldwide mobile communications industry. Spanning 219 countries, the GSMA unites nearly 800 of the world s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organizations. Created GPRS Roaming Exchange (GRX), as well as a new IP exchange (IPX). 30 psl

31 International interconnection (2) The IP Interworking Alliance (IPIA), established under GSMA, has been formed with the mission of supporting the development of global interoperability of IP Services. Supports GSMA s IPX. Certifies IPX providers. The i3 Forum was founded in Q by eight major international operators, and it now includes 28 such carriers. It makes use of existing standards (from e.g. ITU-T, ETSI TISPAN, IETF, 3GPP) for specifying how to achieve IP-based international interconnections. Developing collaborative recommendations for an industry-wide transition of voice and related services to Internet Protocol (IP) The Fixed Mobile Convergence Alliance (FMCA) was formed in 2004 and incorporated as a not-for-profit trade association. It promotes the acceleration and adoption of convergence technologies by encouraging consistency across product and equipment standards. FMCA includes both operators and a significant number of equipment makers. It works in the areas of interoperability and interconnection between members to enable global roaming and access to convergent services. In general encourages and supports interoperability and interconnection between members. Undertakes and supports trials to test and validate prioritized convergent solutions. 31 psl

32 International interconnection IPX Probably the best-known project for international IP interconnection up to now is the IP exchange (IPX) operated by the GSMA; The IPX is promoted as a private global IP backbone, open to any telecommunications company adhering to the required standards. It is intended to provide fixed and mobile service providers a technical and commercial platform for the performance-based exchange of IP-based services. 32 psl

33 International interconnection IPX The IPX is a successor to the international GPRS roaming exchange (GRX), also run by GSMA; Since the year 2000, GSM operators have been using the GRX network to route IP-based commercial roaming traffic between visited and home operators: the GRX has mainly involved 2.5G and 3G data roaming. It is a private IP network (separate from the Internet) consisting of multiple GRX carriers connected to each other via peering points; The GRX is limited only to the GSM operator community. GSMA s IPX will interconnect all types of networks and providers, supporting both bilateral and multilateral interconnection; The IPX represents a performance-oriented, IP-based interconnection model. 33 psl

34 International interconnection IPX X is a peering point where IPX Provider A and IPX Provider B exchange traffic; The IPX transports services according to a common charging principle; A cascade payment method between interconnected operators is foreseen for use within IPX: The cascading responsibility in an IPX means each party is responsible for the performance of the next party in the transit chain; Because all participants make this commitment, the financial benefits of providing the service are cascaded through the value chain, enabling all ISPs involved to receive a commercial return for their participation. 34 psl

35 International interconnection IPX 35 psl

36 International interconnection i3 Forum Alt. 1 Border Functions Carrier A IP network PE router Alt. 2 Alt. 3 PE router Carrier B IP network Border Functions 3rd party IP network The public-oriented interconnection model is implemented using the public Internet as a transport medium, allowing lower costs, but providing less-reliable interconnection; The absence of multilateral interconnection, however, may be a weakness of i3 Forum s model, because it may be more complex to obtain global connectivity than it would be using the IPX solution. 36 psl

37 Should we consider hands off approach? Internet interconnection: interconnection exchange model; direction of traffic may be not important; hard business rules: not all ISPs are equal; no costs sharing mechanisms, lack of transparency. International telco interconnection: multilateral agreements; already adopted to deliver all types of IP traffic; implemented through the Internet or via dedicated interconnection platforms; lack of transparency. Regulators should make the most of the positive experience

38 References 1. U.S. watchdog's National Broadband Plan aims to make Internet services more affordable, Totaltele.com, March 2010, at: 2. UTC urged to curb 3G price war Bankok post, November 2011 at: 3. Mobile networks evolution, Module 4, Mobile and Wireless Multimedia networks: technologies, regulation and business aspects, ITU Centers of Excellence for Europe; 4. Mobile Internet becoming a daily activity for many, ComScore, March, 2009, at: 5. Mobile Social Networking Driving Growth of the Mobile Internet in Europe, ComScore, 2008, at: 6. Smart phone shipments to grow despite overall mobile decline. Computerworld at: 7. ETSI TISPAN, NGN Interconnection, ETSI Workshop on NGN Interconnection, June, 2008 at: 8. IPX and Practical Trials, Activity review, 2009, April, at: Trial_Activity_Review_Apr09.pdf; 9. IPI documents at: Guidelines to sign IPX Agreements between Mobile Operators and Carriers, GSMA, June 2009, at: i3 Forum: the carriers perspective for the migration to an integrated IP-based platform, i3 Forum, International Interconnect Forum for Services over IP, psl

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