Future Of IP Services Alex Vishnev(CTO VOIP SERVICES) Frederic Kunzi(CTO/CIO) AGENDA Introduction IP Services Market Overview What are they? Review of Services Provider Perspective Consumer Perspective Technology Architecture/Protocols IMS ( IP Multi-Media Subsystem)

OSS/Billing Brief History Launched ACN in 1993 1998 opened Canada 1999 opened USA 2000 entered European market 2005 launched APAC starting with Australia

Current State of ACN Global MLM Leader Operating in the United States, Canada, Europe and AsiaPacific. Highly competitive services to Consumers and SMEs

local calling, long distance, DSL/Internet, Mobile VoIP services to consumers and small businesses $500+ million annual revenue One of the fastest growing privately held companies in the world. Double digit annual growth Two Million+ Customers Over 100,000 independent Agents worldwide ACNs Mission Statement Our focused efforts and accelerated growth will allow ACN to be recognized among all industries as the Worlds Leading Direct Seller.

Market Overview (Service Provider) MSO (Metropolitan Cable Service Operators) offer cost effective single source solution for Cable, Voice and Video Wireless providers encroach on Wireline revenues by providing wireless voice and internet services Telcos Need Competitive Advantage to Retain Customers and increase ARPU (Average Revenue Per User) Market Overview (Subscriber) Home continues to grow more digital with every technological development driving multi-media content demands Set Top Boxes(STB) and IP-DSTB( IP Digital Set

Top Box allows delivery of triple-play service Wireless IP Phones PVR (Personal Video Recorders TiVO, MythTV, etc) DVD/CD, Personal Video, Digital Cameras Personal Home Entertainment Systems (Microsoft, etc) HDTV Gaming IP Services

VPN (IP/MPLS) VoIP Video Calling/Conferencing VOD IPTV Gaming (Xbox, Sony, Nintendo,etc) Mobile 3G and IP Convergence VOD, Gaming, Podcast, etc IP VPN/MPLS (Provider) Simple Service

Smaller Market/Low Customer Churn Targets Larger Enterprise Customers with Multiple Offices Security/Encryption MPLS Enhancements QOS and Better SLA Monitoring Better Traffic Engineering MPLS Deployments/Tiers Edge/Aggregation/Core? IP VPN/MPLS (Consumer) Large/Medium IT Users Security Remote Work Force/Telecommuters Authentication

Management QOS SLA Monitoring Outsourcing Firewalls? VoIP(Service Provider) Traditional Telcos Money Makers Voice Mail Call Waiting 3 Way Calling LD/Intra-Lata/International Calling Call Forwarding/Call Screening VoIP Minute/Service Bundles Save Costs on Calling Features/Rates Enhanced Services Bundled

International and Domestic All-You-Can-Eat/Minute Plan Specialized Enhanced Service Applications (On Demand Conference, Video Calling, etc) VoIP(Consumer) Saving Cost Enhanced Services Voice Mail Call Waiting Call Screening/Baring Virtual Numbers Whats Missing? Quality/Reliability Does 911/E911 work? Needs More Customization (Boring Service)

Ring Back Tones Ring Customization Based on Caller ID (i.e. Mobile) Presence Notifications Video Calling/Conferencing(Provider) Market has Been Hot and Cold for a Number of Years Traditionally Built Using Proprietary Technology Revenue Drivers Large/Medium Enterprises eLearning Remote Work Force Strategy to Capture Mass Market Bundling Video Calling Together with VoIP Calling Improved Video Quality Interoperability (Work In Progress)

Video Calling/Conferencing (Consumer) User Demand is Still Small Comparing to other Services Introduced to Market as Bundled Service with VoIP High-end Video Phones are Still Expensive Does not Inter-work with Home Cordless Phones Video-On-Demand(Provider) Various Categories of Video-on-demand Interactive Video On Demand Play, pause, rewind controls. Expensive to operate Near Video On Demand

Buffering technology, reduces cost by increasing user wait time for services. Some VCR like controls Video Streaming/Downloading Low cost to operate Served from Web Large Variety of Content (Porn dominates the Market) Free and Subscription Services Competition with DVD Sales/Rental and Other Providers VOD is winning over DVD Sales/Rental Content and User Experience Differentiates Providers Video-On-Demand(Consumer) Watch what I want, when I want. Large Content Selection (Domestic, International)

Pick the content Schedule the delivery method and time Pick the device (future) Privacy Security (Parental Controls) Content Selection/Blocking for Children Subscription Bundles Group Content into Bundles (i.e. Sports, Kids) IPTV (Service Provider)

IP critical to winning the broadband home enables cross platform service creation with cost-effective standards-based approach Pre-IPTV Video and Data on Separate Networks Proprietary STB IPTV Reduce Complexity and Cost Interoperability with Multiple Hardware and Software Vendors Video and Data on The Same Network Standard Based STB Additional Services (Weather, Games, Shoping, etc) Integration with Wider Variety of Video on Demand Providers Streaming TV to Mobile Devices

Integration with Home Digital Centers IPTV (Consumer) More Devices to Choose From Integration with PVR Integration with Other Digital Center Components (PC, Video Camera, Music, Photo) Wireless Distribution inside Home Content Personalization Gaming (Provider) Provide Positive Experience for On-line Gamers Cheat Codes Group Chat Rooms Sharing of Information

Separate Content by Age Group (Children, Adolescent, teenagers, etc) Parental Supervision Controls Hosting Gaming Competitions Drive Revenue through Sales of Gaming Components Integration with Mobile Devices Gaming (Consumer) Competitive Fun can compete against other gamers on your network or across broadband Internet access Fast Broadband Internet access offers the speed and reliability you'll need to play console games competitively online.

Cost effective Variety of Devices Reasonably Priced Available from Many Sources Flexible. Users can connect with or without wires. Safe. Content/Age Separation Mobile IP Convergence (Provider) 2.5G Deployed in USA as 3G Spectrum is Not Yet Allocated Experience in 2.5G Allows Carriers to Better Define Needs and Services of End-Users 2.5G Networks Used as OSS/Billing Test Beds Needed for Upcoming 3G Deployments Carriers use Enhanced Services of 2.5/3G to Drive Revenue

and Increase ARPU Nextels Push-To-Talk Yields Higher ARPU and Lower Customer Churn Convergence has become a business requirement Build Customer Loyalty Minimize churn Launch new services Reduce OpEx Increase ARPU (NTT, KT Shows Higher Revenue After 3G Launch) Use Standards to Create Services More Efficient Difference in Architecture

Layered Approach Separate Transport and Services Differentiating Services OSS/BSS Supporting New Services Service Provisioning Service Management/Monitoring Compliance to Various Government Regulations

Multi Media Network Meeting all users needs at each end of a session Interfacing to the IP core networks Moving many different types of streams Adapting streams to the needs of a session Enabling opportunities to make money at many scales Multi Media Network Challenges

Wildly different and interacting devices Varied capabilities Multiple languages Mixed bundles User preferences Social requirements Privacy and Security What is IMS (IP Multimedia Subsystem)? IMS or IP Multimedia Subsystem represents a 3GPP and 3GPP2 effort to define an all IP based wireless network as

compared to the historically disparate voice, data, signaling, and control network elements Although the IMS was originally specified for 3rd generation mobile networks, it also provides an excellent service deployment architecture for any fixed or wireless network IMS standards define open interfaces for session management, access control, mobility management, service control, and billing. Carrier Grade Network with Lower OpEx and More Flexibility SIP as a common signaling protocol allows independent software developers to leverage a broad range of 3rd party application servers, media servers Functionality of Network Core Services Do Not Change with Changes on the Access Network

IMS Architecture IMS Network Elements Access Gateway (AG): This network element provides an interface between the radio network (Access Network) and the IP-based network. Call Session Control Function (CSCF): Provides control and routing function for IP sessions. Foreign Agent (FA): Advertises itself to mobile stations in serving area. Provides registration information to Home Agent. Forwards packets from mobile to Home Agent. Home Agent (HA): Tracks current Foreign Agent serving the mobile. Forwards packets to current FA. Home Subscriber Server (HSS): Can take the place of a HLR in all-IP network. Contains AAA function and other databases

IMS Network Elements Media Gateway (MGW): Provides interface for bearer traffic between IP and PSTN Media Gateway Control Function (MGCF): Provides signaling interoperability between IP and PSTN domains SIP to ISUP and vice versa Policy Decision Function (PDF): As IP networks, unlike TDM networks, assign network bandwidth and resources in real-time, the PDFs role is to assign resources according to demand and QoS requirements. Position Determining Entity (PDE): While some mobiles can determine position independently, the PDE can provide assistance by way of location determination algorithms SIP Application Server: Represents a platform for SIP

application development and operation SBC Session Border Controller Requirements of an IMS platform An open and standard architecture for easy development and portability of applications especially while IMS is still being developed and updated A carrier-grade physical platform for reliable service delivery. Provisions for connections to legacy network elements. Integration with non-IMS Networks and Services Scalability. Services should be securely deployable to thousands of customers on a single, cost-effective platform. Robust and granular Quality of Service (QoS) per customer and/or per service. The essence of SIP-based services is their real-time and interactive nature.

Secure Participation of 3rd Party Vendors Network management and billing services. An IP Multi-Service Platform End-to-End Business/Delivery Concept Sales Channels Customer Base IP Multi-Services Company Fiber

MLM Online sale IP Multi-Service End-User Markets Residential SOHO SMEs Others Pt-to-MPts. Wireless WiFI Hot Spots WiMax (d,e,..)

GSM/CDMA PowerLink Satellite Cable/TV IP Services Convergence Services Bundleling Other Channels IMS Convergence Services

Creation or Acquisition Internet Access Services Fabric Back-Office Billing CRM OSS ERP Web Front End B2B Bus. Intel. BPM Web Front End

Customer Portal Virtual Contact Center(s) Other LM/Transport Systems Integrator Installation and Technical support Company (Can be outsourced) VoIP GSM/CDMA Messaging VoD IPTV Photos/Music

Security Appliance Management Remote Health Care Ass. Internet Content Services Other Services OSS/BSS OSS/BSS FOR IMS NETWORK OSS Traditionally defined to deal with dumb networks with a thin control layer. AAAA (Activation, Authentication, Authorization, Accounting) Policy Management Subscriber Management

Mobility Management Network and Service Management Application and Content Management Device Management Flexible Billing Capable of Supporting Different Business Rules Customer Care SERVICE RETAIL Product Definition and Service Design Flexibility and Service Personalization Flexible Pricing and Pricing Bundles Pay-per-use/view, Preview, Subscription,Gift, Promotions Support for Multiple Storefront Access Methods

WAP,JAVA SERVICE DELIVERY Support for Multiple Delivery Options Transport and Operator Billing Integration 3rd Party Billing, Wholesale Agreements Service Fulfillment Trace Order<->Shipment<->Delivery<->Activation Process DRM (Digital Rights Management) to Protect Content Tracking Order/Inventory Status for partners Supply/demand Operation & Support Capability to fill supply, retail & delivery gaps

Global network operations, support & testing capabilities. Distribution & Channel Management Reciprocal Compensation and Settlement L1 & L2 support for service retailers & consumers Add promotions as a new service to existing user or new content to existing user of the service Manage a service through its life-cycle including retirement and withdrawal of CONCLUSION ENHANCED SERVICES ARE RIGHT AROUND THE CORNER ARCHITECTURE IS IN PLACE (IMS) QUICKLY ADAPT TO CHANGES REQUIREMENTS

PREPARE FOR OSS/BSS CHANGES DRIVEN BY VARIETY OF CONTENT AND SERVICES DO NOT GO FOR WORLD DOMINATION MAKE THE RIGHT PARTNERS FOCUS ON CORE COMPENTANCIES Q&A Alex Vishnev Chief Technical Officer, VoIP 13620 Reese Blvd. Ste. 400 Huntersville, NC 28078 Office (704) 632-3682 Mobile (704) 778-7260 Fax (704) 947-7112 Email [email protected]


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