1. GSC-8023 long SOURCE:TSACC TITLE:Beyond IMT-2000/NGN: Next Generation Converged Networks AGENDA ITEM:Joint GRSC/GTSC: 4.2 28 Apr - 1 May 2003GSC-8 (Ottawa)1 Beyond IMT-2000: Next Generation Converged Networks John Visser, P.Eng. Phone:+1-613-763-7028 Fax:+1-613-765-6257 Mobile:+1-613-276-6096 Email:jvisser@nortelnetworks.com Two versions: “short” for presentation “long” for off-line review

2. 228 Apr - 1 May 2003GSC-8 (Ottawa) Wireless Vision (I): Connectivity The future of wireless is one in which networks will interconnect people and machines in all combinations Wireless data networking will have an impact as profound as the Internet had on the wired world Everyone has been looking for the ‘killer app.’ Some believe it's all about content. But the killer application is connectivity! Content is not king; connectivity is king.

3. 328 Apr - 1 May 2003GSC-8 (Ottawa) Wireless Vision (II): revenue from data It's all about low-price, broadband wireless Growing number of internet-savvy consumers and business professionals want to be connected wherever they are, without wires 3G wireless networks are cheaper to operate Positions operators to reap larger revenue opportunities as data-driven services catch on with consumers and business

4. 428 Apr - 1 May 2003GSC-8 (Ottawa) Outside Campus Fixed Walk Vehicle Within Campus Fixed/ Desktop Walk Mobility CDMA2000 1X EV-DO & UMTS HiperLAN2 802.11a LAN 802.11b The Wireless Landscape Wireless Local Area Network (WLAN) Public or Private Site or Campus Enterprise / premises application voice & data network extension Nomadic / “pull” services Non-licensed spectrum Wireless Local Area Network (WLAN) Public or Private Site or Campus Enterprise / premises application voice & data network extension Nomadic / “pull” services Non-licensed spectrum 4G Mbps 1101000.1 CDMA2000 1X GSM/GPRS DECT Bluetooth Wireless Wide Area Network (WWAN) Metro/Geographical area “Always On” Services Ubiquitous public connectivity with private virtual networks Wireless Wide Area Network (WWAN) Metro/Geographical area “Always On” Services Ubiquitous public connectivity with private virtual networks

5. 528 Apr - 1 May 2003GSC-8 (Ottawa) Exploring the Vision - Disparate networks Today, there are three disparate networks: Wireline network –good for voice but not data (carry data by making it look like voice) Data router network –a "best effort" network which loses about 6% of traffic –OK for data but not for carrier-grade voice Wireless mobility network –2G: good for voice –3G: data oriented, voice capacity improvements

6. 628 Apr - 1 May 2003GSC-8 (Ottawa) Types of connections People-to-people, supporting full mobility –when you call a number, you call a person, not a place People-to-machine "nomadic" connections Machine-to-machine sensor connections All will bring data traffic to the packet network and increase the need for network capacity and speed

7. 728 Apr - 1 May 2003GSC-8 (Ottawa) Network transition Wireless transitioning from a voice business to a data business that includes voice Built on one core packet network and a variety of access methods Adoption of data services an essential aspect Mobile access to the network now exceeds fixed access in some 100 countries Wireless voice is today’s reality. Wireless data will be tomorrow's reality. Wireless voice is today’s reality. Wireless data will be tomorrow's reality.

8. 828 Apr - 1 May 2003GSC-8 (Ottawa) Access Independent Wireless Core Network There will be multiple access technologies: UMTS, CDMA DO/DV, GSM, GPRS, EDGE, 802.11, even the PSTN/ISDN as a “fixed access network” They will deliver more capacity, improved spectral efficiency, higher speeds There is no ‘best’ access solution: often the answer will be a hybrid network with several wireless access types providing a choice of access

9. 928 Apr - 1 May 2003GSC-8 (Ottawa) Essential network attributes Attributes of the single packetized network: –voice over IP –universal mobility (presence, location, roaming) –security –“five 9’s” reliability for mission-critical applications –IP services Must support IP services embedded in the network (VPN, QoS, billing), and enable consumer and business services applications at the edge

10. 1028 Apr - 1 May 2003GSC-8 (Ottawa) Wireless Data Networking The real cost efficiencies and personalized service opportunities that will drive the market in say, five years, will evolve from intelligent, all-IP core networking Broadband radio access and core networking are converging: the industry is evolving to true wireless data networking

11. 1128 Apr - 1 May 2003GSC-8 (Ottawa) “The Network”... CCS7 Network SCPs HLRs/ACs Fixed Data Access SSPs MSCs

12. 1228 Apr - 1 May 2003GSC-8 (Ottawa)... has morphed, but it is still recognizable! IP Network Call Feature Servers Mobility Servers Application & Content Servers Fixed MM Access Multiple Mobile Access Standards Legacy Networks Media Gateway

13. 1328 Apr - 1 May 2003GSC-8 (Ottawa) WLANs WLANs are highly-complementary to broader 3G wireless WAN coverage –won't stand alone –an indoor solution to provide high bandwidth data access in nomadic environments –WLAN cannot facilitate the true, ubiquitous 'anywhere, anytime' coverage that consumers have come to expect for wireless voice services

14. 1428 Apr - 1 May 2003GSC-8 (Ottawa) WLANs A joint WLAN and WWAN offering can make a lot of business sense for wireless operators –enables high-bandwidth data services to customers to increase overall ARPU –enhance end-user satisfaction and customer loyalty –furthers the 'always-on' lifestyle: where we need to be going Hurdle for WLAN business model is not CAPEX, but OPEX –deploying WLANs is inexpensive –costs of backhaul and maintenance are challenges: need to bring these costs down

15. 1528 Apr - 1 May 2003GSC-8 (Ottawa) Global Public WLAN Growth 200120022003200420052006 10,000 40,000 30,000 20,000 50,000 2,000 42,000 Source: Instat/MDR 5/02 U.S. Public WLAN Users (M) Global Hot Spot Locations Source: Yankee Group 11/02 UsersLocations 30k 5.6M Source: Yankee Group 11/02 Public WLAN Service Revenue Growth (USA)

16. 1628 Apr - 1 May 2003GSC-8 (Ottawa) Evolution to Wireless Data State of development of wireline infrastructure: –where quality, high speed, low cost are norms, move to wireless data will come when performance = “desktop” –other markets: users will quickly migrate to wireless data offerings that are better than their current experience Major reason for penetration variations: cultural –European wireless users tend to be much more mobile than consumers in other parts of the world –Regions with very low wireline penetration: wireless emerging as mainstream form of telephone service –Calling-party-pays model encourages wireless penetration for in-bound calls; called party pays for air time model discourages giving out mobile phone numbers

17. 1728 Apr - 1 May 2003GSC-8 (Ottawa) Consumer Public Access WLAN Value Chain WLAN Operator Site Leasing “Facility Owner” Backhaul Leased Line Provider WLAN Service Provider Data Center ISP Marketing, billing Aggregator Access points, gateways, etc. Airport (lounge) Hotel Coffee Shop ILEC CLEC WLAN service provider Wireline ISP Corporate LAN

18. 1828 Apr - 1 May 2003GSC-8 (Ottawa) Business Scenarios No Coupling –WLAN service provider and WWAN service provider unrelated –limited end user satisfaction Loose Coupling –various degrees from minimal (downstream billing integration) to close partnership between WWAN and WLAN service providers –potential for maximum end user satisfaction Tight Coupling –WWAN and WLAN are same service provider –maximum end user satisfaction

19. 1928 Apr - 1 May 2003GSC-8 (Ottawa) Coupling Scenarios MSC SIG Terminals BTS Node B BSC RNC Operator Backbone GGSN SGSN WLAN Gateway Access Point Terminals SIG Radius/AAA Server Operator Data Center CS SS7 HLR Public Internet Accounting System Public Internet WLAN Data Center Tight coupling Loose coupling No coupling: this link absent

20. 2028 Apr - 1 May 2003GSC-8 (Ottawa) The PSTN/ISDN as a “Fixed Access Network” Some markets, especially developing countries, recognize that 3G wireless data will be the future, but the economics are difficult Where wireline available, want to be able to use the PSTN/ISDN as a “fixed access network” –enables all services except terminal mobility, even when roaming –potential to reduce demand on wireless spectrum –makes wireless more attractive –simultaneous stimulus to PSTN/ISDN –access options include UIM card (suitable terminal), DTMF digits, and WLAN (suitable terminal)!

21. 2128 Apr - 1 May 2003GSC-8 (Ottawa) Conclusions and Next Steps (I) Establish open protocols to allow different wireless data networks, devices and applications to interface seamlessly –Consumer adoption of wireless data services depends on a common language so that all devices can and will work with all applications on all networks –ITU-T, OMA and 3GPPs working in this direction Access independent core network essential to long term subscriber satisfaction, operator revenues, infrastructure purchases –address inter-system roaming, mobility management, authentication –more cooperation between radio access and core network

22. 2228 Apr - 1 May 2003GSC-8 (Ottawa) Conclusions and Next Steps (II) Stop playing CDMA vs. GSM vs. UMTS –consumers see services, not technologies –each standard has its merits depending on individual operator needs –argument about which is "best" is irrelevant Networks must recognize the wireless access reality –wireless voice access today; wireless data tomorrow Drive consumer adoption of data services, regardless of access technology, to tap into this enormous new consumer market –consumers pay for services, not technologies

23. 2328 Apr - 1 May 2003GSC-8 (Ottawa) Satellite Macrocell Microcell Urban In-Building Picocell Global Suburban Basic Terminal PDA Terminal Audio/Visual Terminal Realizing the IMT-2000 Vision requires a global effort. IMT-2000 and Beyond...

24. 2428 Apr - 1 May 2003GSC-8 (Ottawa) Thank you!