1. Understanding how IMS and NGNs will affect service delivery and billing

2. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Key Success Factors and Outlook Key Success Factors and Outlook Dirk Schmidtpott ORGA Systems Head of Product Management IMS and Billing IMS and Billing Why IMS and why now? Why IMS and why now? What IMS provides What IMS provides Understanding how IMS and NGNs will affect service delivery and billing

3. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Key Success Factors and Outlook Key Success Factors and Outlook Dirk Schmidtpott ORGA Systems Head of Product Management IMS and Billing IMS and Billing Why IMS and why now? Why IMS and why now? What IMS provides What IMS provides Understanding how IMS and NGNs will affect service delivery and billing

4. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IMS and Convergence Combine complementary technologies to create new products + services Multimedia service for enriched communication experience Voice/data enterprise services for more efficiency Broadband/telecoms network services @ home for reduced costs Flexible personal communications over multiple devices + channels Charging through hybrid prepaid and postpaid accounts Generate new revenues that counter declining ARPU from increasingly commoditized voice at reduced costs

5. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Why IMS now? Market demand exists Broadband access widely available and used Enriched communication experience Digitization of media Key protocols available and usable Industry commitment to SIP, Diameter, Parlay (de facto standards) Specifications have reached a stable, usable level Devices and bandwidth available GPRS almost everywhere, UMTS increasingly available Smart phones, Data-card enabled laptops, Multi-network PDA’s

6. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com 3G/WCDMA Market Growths Latest survey by GSA (Global Mobile Suppliers Ass.) on 3G/WCDMA... Networks82 networks in 37 countries (+ 22 since 2004); further 7 in pre-commercial stage Terminals 186 models from 26 suppliers (+ 70 in last 6 months) Subscribers30.79 mill. (July 05) + 13.9 mill. since end 2004 = 2 million net adds/month Acc. to GSA + *Informa Telecoms & Media, published 17.08.2005 : www.cellular - news.com + 20 mill subs. CDMA2000/1xEV-DO

7. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Mobile Data Subscribers (Users) - Worldwide 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 Q1 2003Q2 2003Q3 2003Q4 2003Q1 2004Q2 2004Q3 2004Q4 2004Q1 2005 Europe : Western Europe : Eastern USA/Canada Asia-Pacific

8. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IMS Benefits „Access agnostic“ & Improved mobility - Networks become independent of access (Mobile, DSL, WLAN...) - Enables FMC & offers easier migration of internet applications - 3G Roaming for all services and & all types of customers New applications + better QoS - Such as presence and video-conferencing as „blended“ (combinational) services Better time-to-market for deployment of services - Standardized architecture - Open Interfaces to 3rd party developers An „end“ to the vertical application “silos” - Resulting in lower CapEx and OpEx

9. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Key Success Factors and Outlook Key Success Factors and Outlook Dirk Schmidtpott ORGA Systems Head of Product Management IMS and Billing IMS and Billing Why IMS and why now? Why IMS and why now? What IMS provides What IMS provides Understanding how IMS and NGNs will affect service delivery and billing

10. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IMS (IP Multimedia Subsystem) - Background IMS is an open, 3GPP standardized and operator friendly NGN multi-media architecture which: @ Provides centralized „service control & delivery“ functionalities, in an additional infrastructure layer Was originally designed for mobile networks... (3GPP Rel’5, March 2002) „Evolution Path“ to „ALL-IP“ networks Seen as „Fixed-Mobile Convergence “ & „Service“ enabler (CS + PS: fills gap between traditional telecomm and internet) Is an „open“ BUT “operator centric” architecture (operators can „open up“ BUT still „control“ their networks)

11. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com MNOs rushed to deploy new IP/data services which resulted in vertical application platforms (silos)...... which provide dedicated functions to realize only one specific service ! IMS Vision: From Multiple „Vertical“ Silos... Service 1 Service 2 Service N Application Subscriber data Service delivery platform Media functions Application Subscriber data Service delivery platform Media functions Application Subscriber data Service delivery platform Media functions IN Nodes Billing PS domain CS domain OSS BSS

12. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com... To a Re-usable „Horizontal“ Service Delivery Platform... that provides a better way to deploy and integrate services. Key to success: standardized functionalities & standardized external interfaces. Service 1 Service 2 Service N Subscriber data Media functions IP Multimedia Subsystem Application IN Nodes Billing PS domain CS domain OSS BSS

13. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IMS provides 3 Functional Layers The IMS services domain is a collection of logical functions in three functional layers: Applications layer Service Control layer Transport (media and endpoint) layer GGSN, MSC, PSTN, IP Network HSS, SLF Application Servers CSCF Call Session Control Function

14. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IMS Provides Peer-To-Peer Sessions with Real-Time Capability IMS enables „direct IP connectivity“ between terminals (fixed & mobile) for services like real-time data, voice and video... Source: 3G Americas Report Outlook on Convergence 2005: http://www.3gamericas.org/pdfs/convergence_july2005.pdf

15. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IMS Enabled/Enhanced Applications Real-time Video Sharing (RTVS - see what I see) Personalized Location and Presences Services (Find-Me...) Multi-party Messaging PoC (Push-to-Talk over Cellular) / VoIP Combinational CS + PS servies (e.g. voice and IM) Mobile (rich) Multi-Media Conferencing: Group Chat, Audio/Web/Videoconferencing Multi-party gaming Personalized Info Channels & Services (calendars, alerts) Ringback Tones Click-to-Dial (VoIP)

16. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Most Of The Services Can Be Realized Without IMS... but IMS „promises“... to deliver standardized functions and to enable communication services via a number of „re-usable“ key mechanisms including: Multimedia session negotiation and management (SIP Protocol) QoS (i.e. during a multimedia / VoIP session) Charging ! (DIAMETER) Mobility management & roaming 3rd. party service development interfaces & integration of 3rd. party content

17. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Key Success Factors and Outlook Key Success Factors and Outlook Dirk Schmidtpott ORGA Systems Head of Product Management IMS and Billing IMS and Billing Why IMS and why now? Why IMS and why now? What IMS provides What IMS provides Understanding how IMS and NGNs will affect service delivery and billing

18. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IP & Data Billing Today FREE / BARRED URL ON NET OFF NET QoS TIME of DAY PEAK, OFF PEAK TIME (min)VOLUME (KB)SUBSCRIPTIONBUNDLES B E A R E R UMTS GPRS WLAN There is no data price plan scenario that does not exist ! All „parameters & combinations“ are in actual use.

19. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com CONTENT (DOWNLOADS) games, music, ringtones, screensavers... P2P MESSAGING (e.g. MMS) usually with flat fees (80% regardless of kB size) M2P/P2M (BROWSING, FILE & DATA TANSFER) Today`s Pricing Strategies for Data Services PREMIUM SMS + Reverse Charging Pay-per-event or bundled Pay-per-use (sessions: min. or kB)

20. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com COMMERCIAL Implications Opportunity to charge for new/enhanced services & for certain IMS functions (e.g. presence) „KISS principle“ (Keep It Smart & Simple) ( perceived value-based pricing favoured ) Bearer prices > more „flat & bundled“ Content pricing > „supermarket“ model Context/Content sensitive: Barred / Allowed / Free (Black & White Lists) Revenue Sharing / 3rd party content More „prepaid options“ for „postpaid customers“ (cost control, optional payment mechanisms)

21. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com TECHNICAL Implications / New Dimensions DIAMETER protocol will dominate DIAMETER Accounting Requests & Answer (ACR & ACA) via Rf for Offline Charging Credit-Control-Request & and -Answer (CCR / CCA) via Ro for Online Charging Billing on the basis of QoS / SLAs (QoS changes: precedence/priority, reliability, delay) Correlation of IMS Services IMS Charging Identifier (ICID) Access network charging identifier Inter Operator Identifier (IOI) Application Charging Identifier (ACID) Enhanced real-time interaction and more AoC (Advice of Charge) Credit Pooling - Diameter Credit Control Appl. - see 3GPP TS 32.240

22. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com 3GPPs` Architecture for NextGen Billing (TS 32.240) Billing Domain ONLINECHARGING OFFLINECHARGING WLAN BGCF MGCF MRFC SIP AS CRF AF CDF TPF CS-NE SGSN GGSN CGF OCS IMS GWF P-CSCF I- S- Service-NE IMS Offline charging based on DIAMETER via the Rf "Reference Point”

23. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Key Success Factors and Outlook Key Success Factors and Outlook Dirk Schmidtpott ORGA Systems Head of Product Management IMS and Billing IMS and Billing Why IMS and why now? Why IMS and why now? What IMS provides What IMS provides Understanding how IMS and NGNs will affect service delivery and billing

24. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Key Success Factors Blended services Simple, transparent, value-based pricing Attractive bonus schemes Real-time features Advice of Charge Bonus notifications Correlation for multi-channel/service sessions Broad acceptance of de facto standards Parlay / X Web services for applications Diameter for charging SIP for session control

25. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com IMS Outlook Time line 2005: First trials 2006/2007: First commercial deployments 2007 ff.: Mass market deployment OCS as key charging element IMS will increase the need for PRM and CRM Business process automation Revenue sharing Revenue assurance Dispute management

26. © 2005 ORGA Systems | All rights reserved | www.orga-systems.com Thank You! ORGA Systems enabling services GmbH Am Hoppenhof 33 33104 Paderborn Tel:+49 (0) 52 51 889-3855 Fax:+49 (0) 52 51 889-3707 dschmidtpott@orga-systems.com www.orga-systems.com