IMS Applications Market 2011-2016

IP Multimedia Subsystem (IMS):
The Market for Applications and

Services 2011 - 2016
November 2010
Copyright 2008 - 2010 Mind Commerce (www.MindCommerce.com) All Rights Reserved Page 1 of 183
Table of Contents
1 Executive Summary .................................................................................................... 8

2 Introduction to IMS................................................................................................... 10
2.1 History of IMS and Spearheading Organizations ............................................. 11
2.2 Business and Technology Drivers..................................................................... 12
2.3 Role of IMS in Mitigating the Limitations of Conventional Wireline and
Wireless Architectures .................................................................................................. 14
2.4 Challenges for IMS ........................................................................................... 17
2.5 Overview of IMS Architecture.......................................................................... 17
2.5.1 Application Plane ...................................................................................... 19
2.5.2 Control Plane............................................................................................. 21
2.5.3 User Plane ................................................................................................. 22
2.6 IMS and SIP ...................................................................................................... 24
2.6.3 Introduction to SIP .................................................................................... 24
2.6.4 The SIP Session......................................................................................... 24
2.6.5 Value Additions of SIP and Its Implications for IMS............................... 27
2.7 Conclusion......................................................................................................... 29
3 Market and Technology Drivers for IMS.................................................................. 30
3.3 IMS Supports the Drive to a Next Generation Network (NGN)....................... 30
3.4 Application Control: Central Control of IP based Services .............................. 30
3.5 Market Driver: Need for More Revenue and Better Margins ........................... 31
3.6 Market Driver: Capital Savings......................................................................... 32
3.7 Market Driver: New Revenue Opportunities .................................................... 33
3.8 Market Driver: Targeted Offerings and Premium Services .............................. 34
3.9 Market and Technology Driver: Operational Cost Savings .............................. 34
3.10 Market Driver: Service Creation and Delivery ................................................. 35
3.11 Market and Technology Driver: Convergence Driving IMS ............................ 35
3.12 Operational Driver: Evolving to an Integrated Network................................... 38
3.13 Turning Point in Telecom is Good for IMS ...................................................... 39
4 IMS and Value- added Applications ......................................................................... 40
4.3 Services Capability Interaction ......................................................................... 41
4.4 Presence............................................................................................................. 42
4.4.3 Evolution of Presence................................................................................ 43
4.4.4 Presence Concepts and Definitions ........................................................... 44
4.4.5 Example Application: Presence and IPTV................................................ 45
4.4.6 Presence in IMS ........................................................................................ 45
4.5 Dynamic Address Book .................................................................................... 49
4.5.3 Introduction ............................................................................................... 49
4.5.4 Implementation Methodologies ................................................................ 50
4.6 Personalized Communications and Information ............................................... 51
4.7 Universal Prepay ............................................................................................... 51
4.8 Consumer and Business Voice Services ........................................................... 52
4.9 Rich Calls: Adding Value to VoIP.................................................................... 54
4.10 Video Calls........................................................................................................ 56
4.10.3 Introduction ............................................................................................... 56
4.10.4 Video Call vs. Video Share ....................................................................... 56
4.10.6 IMS – Value Addition ............................................................................... 58
4.10.6.1 3G-324M ........................................................................................... 59
4.10.7 Case Study - SingTel................................................................................. 60
4.10.7.1 Introduction ....................................................................................... 60
4.10.7.2 Service Details................................................................................... 61
4.11 Messaging ......................................................................................................... 62
4.12 Unified Communications .................................................................................. 64
4.12.3 Incoming Call Screening........................................................................... 64
4.12.3.3 Introduction ....................................................................................... 64
4.12.3.4 Implementation Methodologies ........................................................ 65
4.12.4 Unified Messaging .................................................................................... 65
4.12.4.2 Introduction ....................................................................................... 65
4.12.4.4 IMS – Value Addition ....................................................................... 66
4.12.4.5 Case Study – AT&T.......................................................................... 69
4.12.4.5.1 Introduction ................................................................................... 69
4.12.4.5.2 Service Details............................................................................... 69
4.12.4.6 Case Study - Syniverse: “NEXT” platform and applications ........... 70
4.13 Push-to-X .......................................................................................................... 72
4.13.3 Push to Talk............................................................................................... 73
4.13.3.2 Introduction ....................................................................................... 73
4.13.3.5 Case Study - Etisalat ......................................................................... 76
4.13.3.1 Introduction ....................................................................................... 76
4.13.3.1.1 Service Details............................................................................... 77
4.14 Wireless-Wireline Convergence ....................................................................... 77
4.14.1 Introduction ............................................................................................... 78
4.14.4 Case Study – Orange ................................................................................. 82
4.14.4.1 Introduction ....................................................................................... 82
4.14.4.2 Service Details................................................................................... 83
4.14.5 Case Study – Orange Tunisie .................................................................... 83
4.14.5.3 Service Details................................................................................... 83
4.15 Entertainment .................................................................................................... 84
4.15.3 Online Gaming .......................................................................................... 84
4.15.3.2 Introduction ....................................................................................... 84
4.15.3.5 Case Study – Capcom ....................................................................... 89
4.15.3.5.1 Introduction ................................................................................... 89
4.15.3.5.2 Service Details............................................................................... 89
4.16 Video on Demand.............................................................................................. 89
4.16.1 Introduction ............................................................................................... 89
4.16.4 Case Study – TransACT Capital ............................................................... 93
4.16.4.1 Introduction ....................................................................................... 93
4.16.4.2 Service Details................................................................................... 93
4.17 Services Blending.............................................................................................. 93
4.18 IMS and Advertising ......................................................................................... 94
5 IMS Application Introduction Strategy..................................................................... 95
6 IMS Market Survey: Disposition of IMS.................................................................. 97
6.3 IMS Market Survey........................................................................................... 97
6.3.3 Operator Interviewee Analysis.................................................................. 98
6.3.4 Supplier Interviewee Analysis ................................................................ 100
6.3.5 Survey Results......................................................................................... 101
7 IMS Solution Analysis: IMS and WiMAX ............................................................. 104
8 IMS and Service Delivery Platforms (SDP) ........................................................... 118
8.3 Evolution of SDP ............................................................................................ 119
8.4 Benefits of SDP............................................................................................... 120
8.5 Revenue Forecast for SDP .............................................................................. 122
9 IMS and the Emerging VNO Business Model ........................................................ 122
10 IMS Applications Stakeholder Landscape .......................................................... 127
10.3 Case Studies .................................................................................................... 127
10.3.1 Alcatel-Lucent......................................................................................... 128
10.3.1.1 Background ..................................................................................... 128
10.3.1.2 IMS related initiatives ..................................................................... 128
10.3.1.2.1 Convergent Network Management Center.................................. 128
10.3.1.2.2 China Mobile............................................................................... 129
10.3.1.3 Customers........................................................................................ 129
10.3.1.4 Financial data .................................................................................. 129
10.3.2 Ericsson ................................................................................................... 129
10.3.2.1 Background ..................................................................................... 129
10.3.2.2.1 Enriched Communications .......................................................... 130
10.3.2.3 Customers........................................................................................ 130
10.3.2.4 Financial data .................................................................................. 130
10.3.3 Huawei .................................................................................................... 131
10.3.3.1 Background ..................................................................................... 131
10.3.3.2.1 M1 and ATCA Solution .............................................................. 131
10.3.3.2.2 China Mobile............................................................................... 131
10.3.3.3 Customers........................................................................................ 132
10.3.3.4 Financial data .................................................................................. 132
10.3.4 Nokia Siemens Networks (NSN) ............................................................ 132
10.3.4.1 Background ..................................................................................... 132
10.3.4.2.1 China Mobile............................................................................... 133
10.3.4.2.2 Telefónica O2 Germany .............................................................. 133
10.3.4.3 Customers........................................................................................ 133
10.3.4.4 Financial Data ................................................................................. 134
10.3.5 Tekelec .................................................................................................... 134
10.3.5.1 Background ..................................................................................... 134
10.3.5.2.1 Messaging ................................................................................... 135
10.3.5.2.2 Session Management................................................................... 135
10.3.5.2.3 Subscriber Data Management ..................................................... 136
10.3.5.2.4 Policy Management..................................................................... 136
10.3.5.3 Customers........................................................................................ 136
10.3.5.4 Financial data .................................................................................. 136
10.3.6 ZTE.......................................................................................................... 137
10.3.6.3 Background ..................................................................................... 137
10.3.6.4 IMS Initiatives................................................................................. 137
10.3.6.4.1 IMS Total Solution...................................................................... 137
10.3.6.4.2 zMILE Solution........................................................................... 137
10.3.6.5 Financial Data ................................................................................. 138
11 Network Operator Recommendations................................................................. 139
12 Market Potential and Forecasts ........................................................................... 141
12.1 Research Methodology.................................................................................... 141
12.2 Overall Metrics................................................................................................ 142
12.3 Video Telephony ............................................................................................. 145
12.4 Unified Messaging .......................................................................................... 149
12.5 PTT.................................................................................................................. 152
12.6 Wireless Wireline Convergence...................................................................... 155
12.7 Online Gaming ................................................................................................ 158
12.8 Video on Demand............................................................................................ 161
12.9 Conclusions ..................................................................................................... 164
13 Summary and Recommendations........................................................................ 164
14 Appendix ............................................................................................................. 165
14.3 Network Operator Challenges of IMS Rollout ............................................... 166
14.3.3 Struggle for Resources ............................................................................ 166
14.3.4 How to Roll Out Features ....................................................................... 166
14.3.5 Financial Matters..................................................................................... 167
14.4 IMS & Quality of Service and Quality of Experience .................................... 168
14.5 IMS & Customization ..................................................................................... 171
14.6 IMS & the Impact on Carriers......................................................................... 172
14.7 New Network Management and Operations Issues ........................................ 173
14.8 IMS Changes to the Service Creation Paradigm............................................. 175
14.9 Service Creation Management (SCM) and IMS ............................................. 176
14.10 IMS and Third-party Applications .............................................................. 177
14.11 IMS and the Impact on NGN OSS/BSS...................................................... 178
List of Figures
Figure 2-1: IMS Block Diagram ....................................................................................... 19

Figure 2-2: SIP Configuration and Protocols.................................................................... 26
Figure 3-1: 3G-324M Block Diagram............................................................................... 60
Figure 3-2: The Promise of Unified Messaging................................................................ 68
Figure 3-3: IMS enabled PTT Architecture ...................................................................... 76
Figure 3-4: UMA based Wireless Wireline Convergence ................................................ 79
Figure 3-5: IMS based Wireless Wireline Convergence................................................... 81
Figure 3-6: Conventional Online Gaming Architecture.................................................... 87
Figure 3-7: IMS enabled Online Gaming Architecture..................................................... 88
Figure 3-8: IMS enabled Video on Demand Architecture ................................................ 92
List of Tables
Table 3-1: SingTel Video Call Tariff................................................................................ 61

Table 4-1: Vendor Expertise Summary........................................................................... 127
List of Charts
Chart 5-1: Subscriber Revenue from Key IMS enabled Applications 2011-2016 (USD
Million) ........................................................................................................................... 142
Chart 5-2: Key IMS enabled Application CAGR Rankings 2011-2016 (%).................. 143
Chart 5-3: Regional Distribution of Subscriber Revenues from Key IMS enabled
Applications 2011-2016 (USD Million) ......................................................................... 144
Chart 5-4: Regional Share Comparison (2011 and 2016) of Subscriber Revenues from
IMS enabled Applications (%)........................................................................................ 145
Chart 5-5 Subscriber Revenue from IMS enabled Video Calls 2011-2016 (USD Million)
......................................................................................................................................... 146
Chart 5-6: Regional Distribution of Subscriber Revenues from IMS enabled Video Calls
2011-2016 (USD Million)............................................................................................... 147
IMS enabled Video Calls (%) ......................................................................................... 148
Chart 5-8 Subscriber Revenue from IMS enabled Unified Messaging 2011-2016 (USD
Million) ........................................................................................................................... 149
Chart 5-9: Regional Distribution of Subscriber Revenues from IMS enabled Unified
Messaging 2011-2016 (USD Million) ............................................................................ 150
IMS enabled Unified Messaging (%).............................................................................. 151
Chart 5-11 Subscriber Revenue from IMS enabled Push-to-Talk 2011-2016 (USD
Million) ........................................................................................................................... 152
Chart 5-12: Regional Distribution of Subscriber Revenues from IMS enabled Push-to-
Talk 2011-2016 (USD Million) ...................................................................................... 153
IMS enabled Push-to-Talk (%) ....................................................................................... 154
Chart 5-14 Subscriber Revenue from IMS enabled Wireless Wireline Convergence 2011-
2016 (USD Million) ........................................................................................................ 155
Chart 5-15: Regional Distribution of Subscriber Revenues from IMS enabled Wireless
Wireline Convergence 2011-2016 (USD Million).......................................................... 156
IMS enabled Wireless Wireline Convergence (%) ......................................................... 157
Chart 5-17 Subscriber Revenue from IMS enabled Online Gaming 2011-2016 (USD
Million) ........................................................................................................................... 158
Chart 5-18: Regional Distribution of Subscriber Revenues from IMS enabled Online
Gaming 2011-2016 (USD Million) ................................................................................. 159
IMS enabled Online Gaming (%) ................................................................................... 160
Chart 5-20 Subscriber Revenue from IMS enabled Video on Demand 2011-2016 (USD
Million) ........................................................................................................................... 161
Chart 5-21: Regional Distribution of Subscriber Revenues from IMS enabled Video on
Demand 2011-2016 (USD Million) ................................................................................ 162
IMS enabled Video on Demand (%) ............................................................................... 163
1 Executive Summary
This report presents a qualitative and quantitative analysis of the role of IP
Multimedia Subsystem (IMS) in implementing rich multimedia applications.
The eroding margins for voice services coupled with competition from Internet-
based specialists such as Skype, Google, Yahoo et al has forced traditional
wireless and wireline service providers to take the battle to the enemy domain-
data. Service providers have found IMS to be an effective vehicle on which these
applications can be designed, rolled out, implemented, augmented and maintained.
Mind Commerce forecasts that subscriber revenues from key IMS applications
will grow at a significant CAGR of 33.4% for the duration 2011-2016. The
CAGR underlines the enormous potential of IMS in unlocking the value
contained in rich media applications.
This report evaluates a variety of IMS enabled applications, placing emphasis on a

few key ones including:
Video Calls
Unified Messaging
Push-to-Talk
Wireless Wireline Convergence
Online Gaming
Video-on-Demand
The above applications are analyzed with respect to the following aspects:
Key deliverables of the applications

Traditional implementation methodologies
Key IMS enabled implementation value additions
Implementation case studies
Subscriber revenue forecasts for 2011 to 2016
Geographical distribution of the subscriber revenues
Mind Commerce forecasts that among the key applications covered in the report,
Video Calling will grow at the maximum pace while Wireless Wireline
Convergence will grow at the lowest pace.
The report is divided into the following chapters:
Chapter 2 provides an overview of IMS and covers business and
technology drivers, components as well as the role of Session Initiation
Protocol (SIP) in the shaping of IMS
Chapter 3 evaluates the market and technology drivers behind IMS
Chapter 4 details the contribution of IMS enhancements in the
implementation of individual rich multimedia applications
Chapter 5 analyzes IMS application introduction strategies
Chapter 6 provides a market research survey of the current state for
IMS in the telecommunications industry
Chapter 7 provides a solution strategy analysis of IMS and WiMAX
Chapter 8 evaluates the relationship between IMS and SDP
Chapter 9 analyzes the emerging VNO business model relative to IMS
Chapter 10 lists the activities of major vendors in IMS enabled
application solutions
Chapter 11 provides network operator recommendations
Chapter 12 forecasts the size of subscriber revenues of IMS enabled
implementations for the duration 2011 to 2016.
Chapter 13 provides a summary and recommendations
Chapter 14 is an appendix with a variety of supporting information
about IMS and its impacts
2 Introduction to IMS
One of the foremost drivers for telecom is the rapid growth of cellular services
globally. This growth has been accompanied by rapid advancement in the basic
architecture of the end-user handsets. In the last half a decade, features such as
cameras, Internet and multimedia capabilities have become almost main stream for
the mobile phone. In short, mobile phones have begun to increasingly resemble the
PCs of the yore. Wireline terminals, on the other hand, are being increasingly
looked upon as advanced data processing devices. One common thread that runs in
the PCs and the mobile phones is the propensity to exchange content. A need has
arisen for the convergence of wireless and wireline technologies in order to
facilitate inter-communication between the users of different media such as
Internet, mobile phones and other wireless devices for the transfer of voice, data
and video. Addressing this need requires the use of innovative technologies in the
development of user-friendly hardware devices and software applications in a
framework that is independent of the networks used by different communication
devices.
This approach is best embodied by the IP Multimedia Subsystem (IMS). IMS is an

architectural framework has the capability to offer multimedia and Voice over
Internet Protocol (VoIP) services defined by the Third Generation Partnership
Platform (3GPP). It can be accessed from any platform and supports licensed and
unlicensed, wireless and wireline transport modes such as GSM, CDMA2000,
WCDMA, WLAN, Wireline broadband and other packet data applications.
As IMS is based on an integrated open-system architecture format and supports an

extensive range of IP-based services over both packet and circuit switched
networks through the deployment of wireless and fixed access technologies; it has
the potential to support ambitious rich user experiences. For instance, a user using
IMS has the facility to download a multimedia video clip to his mobile or fixed
device and subsequently alter the video clip and send it to other users who may be
using different networks. IMS helps to achieve cooperation in the distribution of
services between a wide range of highly distributed systems (both real time and
non-real time) through a single telco-controlled infrastructure. The vision of IMS
includes the ubiquitous facilitation for accessing of Internet technologies such as
Web browsing, WAP, video conferencing, MMS from any location. IMS enables
the convergence of voice and data services and the usage of converged services
interchangeably between internet and cellular subscribers. With IMS, users have
the facility of availing all the services not only when they are at home but also
while roaming. Since IMS uses standard IP protocols defined by IETF, it
facilitates multimedia interaction between a user of IMS and a user of Internet or
between two users of Internet.
Although, the possibilities for IMS-driven services and applications are limitless,
some of the applications that can be monetized in the near future include the
following:
Instant Messaging
Unified Messaging
Multimedia Advertising
Multiparty Gaming
Video Streaming
Web/Audio/Video Conferencing
Full Duplex Video Telephony
IP IMS architecture is designed to facilitate the ultimate in one-to-one and many-

to-many communication between people and is poised to be the standard for
delivering services based on Internet protocol for any type of network.
2.1 History of IMS and Spearheading Organizations

IMS is the basis for the Next Generation Network (NGN) sponsored by the
International Telecom Union (ITU).
Although the original idea behind the development of IMS was to restricted to
cellular telephony networks, its benefits in the fields of user signaling and billing
controls prompted the European Telecommunications Standards Institute (ETSI),
Alliance for Telecommunications Industry Solutions (ATIS), U.S. and the
International Telecommunication Union (ITU) under the aegis of United Nations
(U.N.) to endorse it. IMS gained additional traction by leading suppliers of
network equipment such as Alcatel-Lucent (ALU), Ericsson, NEC, Nokia, Nortel
and Siemens have defining their IMS strategies. As a result, IMS has grown to
embrace all the PSTN and PLMN architectures.
Initiatives aimed at facilitating the transfer of packets over wireline networks have
been present in significant numbers. Most notable among these is the SIGTRAN,
driven by the IETF. SIGTRAN aims at providing reliable datagram service over
SS7 and ISDN standards by adapting these standards for packet transport.
The original definition of IMS dates back to 1999 and is attributed to the 3G.IP
industry forum. This work was carried forward by the 3GPP in an attempt to
standardize UMTS networks. The 3GPP Release 5 added SIP, GSM and GPRS to
the IMS and 3GPP Release 6 added WLAN. CDMA2000 was added to IMS by
3GPP 2. Support for fixed networks came from the Telecoms & Internet
converged Services & Protocols for Advanced Networks (TISPAN), the fixed
network and Internet convergence standardization body. TISPAN’s contribution
was included in 3GPP Release 7.
2.2 Business and Technology Drivers

To understand the appeal of IMS for stakeholders, it is necessary to look at the
larger dilemma faced by the operators.
Worldwide, operators are granted licenses to operate based on competitive

bidding. After paying the bid value, the operators are required to roll-out their
networks. In order to be competitive, the roll-out has to be sufficiently rapid. Thus,
in most of the cases, the operators have significant sunken investments before a
single call is made on their networks. Recent trends point towards a more inclusive
licensing regime being adopted by most regulators leading to an increase in
competition for incumbent carriers. The Internet has added to the competition
through the likes of Skype, Google, Yahoo, MSN and others. The Internet based
players are leveraging improvements in packet telephony and offering voice and
data based services to their subscribers.
Conventional carriers are looking out for differentiators, and the differentiators are
rich multimedia services. Conventional networks had limited services to contend
with during major portion of their existence. Due to the incessant demand for rich
multimedia applications and services coupled with advances in application
development platforms, the number of services is growing rapidly. The rapid
growth necessitates development and implementation of layers in the architecture
for each of the services separately. The layered approach has to be adopted right
from the terminal network to the network of the user’s terminal; a direct contrast
with the way the conventional networks are built. Lack of such a cohesive
approach has meant that the conventional networks turn out to be increasingly
cumbersome, complex and expensive to build and operate.
In the above context, IMS offers the following value additions to operators:
As mentioned in the previous section, IMS promises the operators, an effective

mechanism to deliver applications and services that will deliver healthier
margins as compared to their conventional services. Additionally, IMS also
guarantees seamless delivery of these applications across a diversity of
networks.
While IP-enabling of infrastructure has been long thought as the magic potion
that will address operator woes, IMS is the first real initiative that presents a
refined vision of IP-enablement. IMS clearly defines the functions of the
various components, distinction among various planes and the interfaces
between these components and planes. IMS thus lends concreteness to the
vision of packetizing the infrastructure. The layered approach of IMS is the
key to its being scalable as it lends flexibility to service deployment and
design.
The bane of conventional telco infrastructure is the closed architecture and

over-the-top customization, which make it almost impossible to scale in terms
of volume and diversity beyond a point. IMS steers clear of such possibilities
by clearly defining the standards. IMS is thus more inclusive, which means that
networks never suffer from crunch in terms of resources when they have the
necessity to scale up.
IMS draws heavily from existing components and technologies. Its

architectural backbone is based on the highly accepted SIP framework.
Reliance on SIP provides the stakeholders with a demonstrated methodology of
services deployment and SIP has been successfully employed in numerous
VoIP networks. Additionally, on the functional level, most IMS components
are direct derivatives of existing parallels in commercial wireless and wireline
networks. Thus, both functionally and architecturally, IMS is easy to design,
integrate and assimilate for the stakeholders.
In tandem with the contemporary movements in IT, IMS believes in distributed

intelligence and control. In an era where business continuity is of extraordinary
importance and continues to be challenged very formidably by expected and
unexpected adversaries, networks with distributed frameworks are more likely
to withstand adversities.
IMS is one of the rare initiatives that have enjoyed widespread industry
backing across the vendor and operator spectrum.
Apart from providing an elaborate mechanism to interlink wireless, wireline

and legacy networks, IMS, once established, provides a scalable and cost
effective platform for expanding the array of services. IMS provides an agile
service delivery mechanism in the form of deploying incremental SIP based
Application Servers. This is a major departure from the conventional processes
of service deployments. Application Servers lend immense flexibility for
determining service features and offer significant savings in terms of time and
costs of deployment. It leverages the benefits of ubiquitous Internet access by
enabling highly personalized applications that run on web-based technology. It
also opens telco networks for third party software developers to run their
applications. In summary, IMS makes IP enabled services available to fixed
and mobile telephone users as well as the users of cable using different media
such as voice, video, pictures, text etc.
2.3 Role of IMS in Mitigating the Limitations of Conventional

Wireline and Wireless Architectures
The wireline telephone system is a reliable conduit for the sender to sends in some
objects (digital bits) at one end for the receiver to receive them at the other end.
The objects usually reach their intended destination without hiccups. The wireless
media on the other hand is uncontrolled and although the path is established from
end-to-end, the quality of path varies greatly based on topological and
atmospherical factors.
The extent of control that the operators have over their end-users differs in
wireline and wireless media. For instance, mobile phones are controlled by the
operators to the extent of defining the power, range and noise filtering
characteristics. Wireless devices have elaborate authentication measures that are
absent in wireline devices. Lastly, the extent of regulatory say in the
characteristics of wireline and wireless end-user devices are vastly different. All in
all, the amount of intelligence embedded in the end user device is marginally
higher for wireless devices.
Due to the disparity in the end-user device characteristics, the scope for the
operators in offering converged services is hampered.
Additionally, the numbering methodologies of voice networks and data networks

differ greatly. While voice networks follow the voice numbering plan, the data
terminals follow the IP addressing scheme. IMS plans to introduce a common
numbering methodology based on Uniform Resource Identifier (URI) as employed
in the Session Initiation Protocol (SIP) technology.
Existing wireline and wireless media also suffer from serious limitations when it
comes to implementing Service Level Agreements (SLA) based on stringent
Quality of Service (QoS) parameters. The limitations arise because of the cluttered
nature of the organization of wireless and wireline media and disparity in the
mechanics of offering services. IMS simplifies media management. Firstly, the
QoS characteristics of IMS are decided between end points in IMS session. These
characteristics are based on certain parameters.
These parameters include the following:
type of media
codes and encoding formats
bandwidth
delay
variations in delay
message packet loss
establishment of session
its duration
devices used in the communication
policy and controls for individual and multiple users
Additionally, standardization of service capabilities is a pre-requisite in IMS. This

coupled with the flexibility in service provisioning offered by IMS results in end-
to-end control over QoS parameters.
However, the most critical value-addition of IMS may be available from

unexpected quarters – flexibility in spectrum management. While operators and
stakeholders from the GSM, UMTS, CDMA, WiMAX and other camps fight it out
for extracting their pies from the precious spectral chunk; IMS, with its emphasis
on de-coupling the services management from the network infrastructure may help
these players and the regulators to optimize spectrum usage. Already, the Software
Defined Radio (SDR) based base stations are being increasingly deployed,
providing operators the flexibility to choose the modes and frequency bands.
Coupled with the development of SDR in mobile phones, there is a realistic
probability of dynamic spectral allocation. IMS is synergistic to this paradigm as it
dissociated network nitty-gritty from the services. Spectrum optimization has a
major bearing on managing user distribution, bandwidth availability, latency
parameters and user equipment synchronization.
Optimization of spectrum also enables optimization of infrastructural costs.

Typically wireline infrastructure includes the following cost components:
Physical media
Installation costs
Security of the physical media
Networking equipment
Since the wireless infrastructure also works on a wireline skeleton, its cost
components include most of the wireline components. Additionally it also includes
the following components:
Antennas
Base Stations
Conventional wireless and wireline networks are characterized by the presence of
a single logical node to identify and support the services. Hence, each service,
with its service-specific node(s) is in isolation and has to be developed, tested and
implemented on its own. The lack of common service structure also means that
only those services having common protocols can interact with each other. This is
where the true value of IMS is unearthed. Solutions developed on the IMS
platform have systems that can aid multiple application servers. Thus, the existing
infrastructure can support new services without the need to build a new one. Thus,
IMS offers a simple and efficient way of introducing new services on the existing
platform.
Additionally, IMS architecture provides a way out for the design constraints of the
traditional networks. This architecture is characterized by common functions with
standard structure, facilitating their implementation and reuse by a number of
services. Some common functions include the following:
Presence
Provisioning
Group/list management
Directory
Deployment
Charging
The use of these common functions prevents redundancy and promotes reliability
and higher-level abstraction of the system. The operators and service providers can
invest their energies in being more oriented and devising applications that cater to
their customers’ needs rather than spending their resources investigating the best
means of implementing these services and applications. IMS architecture offers
this facility to the operators as it standardizes the creation, release and access to
services. Standardization not only saves time and costs but makes these processes
predictable. IMS lays down clear-cut guidelines that specify the path of the service
requests and the supporting protocols among others.
In synch with the rapidly spreading Service Delivery Platform (SDP)

methodology, IMS is also characterized by a single level of validation and sign-on
process both for the subscribers and operators by the use of an ISIM card. The
authentication process is handled by the Call Session Control Function (CSCF)
and the Home Subscription Server (HSS). A single sign on facilitates access to the
entire range of permissible services. In conventional networks, each service has its
own authentication process which may not be standard.
IMS exhibits a quantum leap from traditional networks in yet another facet. It
defines a horizontal architecture, facilitating the reuse of the services and common
functions for multiple applications. The horizontal architecture enables the
operators to not only add new services without going in for costly infrastructure up
gradation but also use the existing equipment for multiple purposes. The
horizontal architectural platform enables to supervise, manage and control the
services and also direct the sessions in a common way without the need for
separate resources. This ensures the security and authorization of entire network in
a simple manner.
2.4 Challenges for IMS

Notwithstanding the overarching support received by IMS from the stakeholders,
its path is riddled with numerous challenges.
Managing the expectations of the stakeholders is the most formidable

challenge confronting IMS. The hype surrounding IMS has resulted into the
operators’ expectations reaching levels which the vendors are finding difficult
to match. Already, there is a growing perception that many of the IMS
components do not offer the full-blown functionality that IMS promises.
Vendors have added to this perception by merely re-branding their existing
product lines as IMS components.
Migration to IMS is a quantum jump for most conventional telcos. Most of

them would prefer an incremental and gradual approach that does not disrupt
their business operations. The apprehension about being able to successfully
handle the migration to IMS is so stark that many operators are wary of taking
the plunge. This apprehension is present to a greater degree among smaller
operators.
IMS does not offer investment protection strategies for legacy infrastructure.
The lack of such options adds to the delay in migration to IMS as operators
choose to wait to recover their investments in the legacy infrastructure to the
extent possible. The apprehension surrounding IMS results in a Hobson’s
choice for operators – investing in an unproven technology versus being left
behind competition by not investing.
2.5 Overview of IMS Architecture

As mentioned earlier, the IP Multimedia Subsystem (IMS) has been defined by the
standards body of the 3GPP. This architectural framework has been adopted by
leading vendors of the telecommunication devices and solution providers have
based their solutions on this network architecture for the future development of
telecommunications systems using the Internet and the mobile phones. Hence
many mobile service providers and network carriers have started developing
devices, infrastructure and equipment based on IMS. The importance of IMS
architecture is its ability to integrate and apply common functions to a number of
applications thereby reducing the cost. This architecture is based on open
communications platform with the provision that the services rendered are
independent of the network architecture.
The IP IMS architecture can be divided into three principal planes or layers:
Service or Application Plane

Control or Signaling Plane
User or Transport Plane
While these layers are discussed at length subsequently, it is worthwhile drawing

attention to the fact that the separation of transport, signaling and application
functions in the networks holds the key to the appeal.
The Figure 2-1 shows the block diagram of IMS architecture.
Figure 2-1: IMS Block Diagram
Source: ReefPoint Systems
2.5.1 Application Plane
Application plane handles the following functions:
Provisioning of an infrastructural base for the organization of services

Definition of standard interfaces for the storage of configuration
Management of identities
Identification of location and presence of user status
This information is stored in the master database, Home Subscriber Server (HSS).
Application plane also provides interface for the Charging Gateway Function
(CGF) Server which is responsible for billing services and also for the control
plane which controls the messaging, voice and video calls.
The Home Subscriber Server (HSS) is also known as User Profile Server Function
(UPSF). HSS is the main database for the IMS networks. HSS provides support to
the IMS entities for carrying out call and session handling function. It is analogous
to the Home Location Registers (HLR) present in traditional 2G and 3G networks.
HSS database stores user profiles so that it can authenticate users in order to
permit their participation in the call sessions involving users. It also provides the
address of the physical location of the users. HSS communicates with the
Application Server and the Call State Control Function (CSCF) for information
retrieval and call management.
Although HSS appears logically to be one single database, it is made up of a

number of physical databases whose number depends on the number of
subscribers and the scale of services on offer. The contents of HSS database
include the variables and the identities for supporting, establishing and
maintaining calls and sessions of the customers/users. Some of the key variables
are customer’s International Mobile subscriber Identity (IMSI), security and
location variables.
HSS employs varied protocols to manage the Authorization, Authentication and

Accounting (AAA) functions. The Diameter protocol is used to exchange AAA
related information. This protocol has undergone lot of improvements in different
characteristics after having being derived from the RADIUS (Remote
Authentication Dial-In User Service) protocol. Diameter protocol has the
capability to satisfy new features for access control while offering flexibility for
future additions. It is an improvement over RADIUS protocol because it offers
enhanced services in the matter of error handling and message delivery reliability.
A Subscriber Location Function (SLF) is needed to record the addresses of the

users when more than one HSS is being used. The communication link between
HSS and SLF is established by means of the Diameter protocol. The functionality
of HSS can be enhanced through the use of more databases and reference points.
These additions to HSS enables it to offer advanced features and services by
interfacing with service application servers which are based on Open Service
Access (OSA), Session Initiation Protocol (SIP) and Customized Application for
Mobile network Enhanced Logic (CAMEL). OSA is an architecture that helps the
developers of service application for making use of the functionality of a network
through the OSA Application Programming Interface (API). CAMEL occupies a
prominent place as a standard for intelligent mobile communication networks and
GSM networks. This standard offers assistance to the mobile network operators to
offer their customers value-added services in an efficient manner.
2.5.2 Control Plane
The Control Plane is located between the Application Plane and the Transport
Plane. It manages the following functions
Routing the call signaling

Informing the transport plane regarding the type of traffic to be allowed
Generation of billing information
Control of User Plane traffic with the help of Resource and Admission
Control Subsystem (RACS)
At the heart of this plane is the Call Session Control Function (CSCF). The CSCF
is a multi-faceted entity. It exists in different forms to perform specific functions.
The initial point of contact for the users of IMS is the Proxy-CSCF (P-
CSCF). The P-CSCF is responsible for the security of the messages
transmitted between the network and the user. It also assigns resources for
the flow of data between the different media. As P-CSCF is the foremost
contact point which is assigned to the IMS terminal, it remains assigned to a
particular terminal for the entire course of registration without undergoing
any change. P-CSCF is located with the help of the Session Border Controller
(SBC). P-CSCF monitors all the signaling messages by intervening in their
path. P-CSCF also authenticates the identity of the user, thereby safeguarding
user privacy by establishing Internet Protocol (IP) security with the IMS
terminal. It has the ability to compress and expand SIP messages using
signaling compression method for reducing the time of transit of the
messages passed over slow networks.
Peered networks interface with each other using the Interrogating-CSCF (I-
CSCF). The I-CSCF interrogates the HSS to identify and determine the
Serving-CSCF (S-CSCF) for a user. Importantly, the I-CSCF conceals the
topology of the operator from other networks of same status. In case the
called party belongs to a network other than the caller party, the I-CSCF of
the called party resolves the S-CSCF of the called party. S-CSCF uses the
Diameter Cx interface to derive the user location by querying the HSS. Once
the location is obtained, it transfers the SIP request to its assigned S-CSCF.
S-CSCF is the central node of the signaling plane. Its function is to register
users residing on separate platforms (taking care of the IP address of the
terminal and the SIP address) and provide services to them. S-CSCF also
handles functions such as routing and translation, providing billing
information, maintaining session timers and querying the HSS to obtain
information related to authorization, service triggering and user profile. S-
CSCF scans every message and to decide on forwarding of the message to
the application server(s) for providing services. It routes the messages and
implements the policy decisions of the network operator.
2.5.3 User Plane
The User Plane provides a core QoS-enabled IPv6 network that can be accessed
by the User Equipment (UE) irrespective of the network. The User Plane supports
a wide variety of IP multimedia client-server-based and peer-to-peer services. The
Border Gateways provide access into the core network and puts into effect the
flow of traffic between the access and core networks.
IMS architecture makes use of Gateways and Application Servers to transmit the
telecommunication messages quickly and efficiently using the IP networks. SIP
enabled gateways whose function to convert the signals to protocols that can be
followed by traditional networks such as PSTN.
The prominent gateways that for a part of IMS architecture are the following:
Signaling Gateways that manage coding and lower level protocol conversion
between one network and another.
The Media Gateway (MG) and Media Gateway Controller Function (MGCF),
where MG acts as a boundary between the media planes of two networks. MG
converts the media over RTP (i.e. of IMS network) to the Pulse Code
Modulation of the PSTN network.
The Breakout Gateway Controller Functions (BGCF)
Signaling Gateway handles connectivity between IMS networks and traditional

switches or network devices which are based on other signaling protocols such as
CAS and SS/C7. Thus this gateway helps to achieve inter-networking between
standard signaling protocols such as SS7, C7, DTMF, R1, R2, ISDN and other
CAS or CCS based protocols. Signaling Gateway also manages the connectivity
between network node switches or VoIP gateways. It helps to achieve the
integration of PSTN and IP networks by lending support to the Signaling System 7
(SS7) architecture. It transmits signals (messages) between SS7 network and IP
network. With this integration, operators are able to transmit the messages
originating from SS7 by making use of IP at a lesser cost even while maintaining
the reliability of conventional SS7 network architecture. Other applications of this
gateway include short messaging using mobiles, GPRS integration, Third
generation wireless integration, IP telephony gateways, intelligent networking and
IP-based application service. The messages from SS7 are routed on the basis of
signaling Point Codes or Global Titles based on the capability of the Signaling
Gateway.
Media Gateway handles functions such as processing, connecting and translating

the traffic between various telecommunication networks such as 2G, 3G, PSTN,
PBX and IMS networks, thereby enabling multimedia communication among
these networks on different protocols such as ATM and IP. Media Gateway is a
link between diverse networks and helps the conversion of transmission and
coding techniques for achieving compatibility between various networks. It also
undertakes other functions echo cancellation, announcements, conferencing and
wiretapping. The functions of signaling gateway are integrated into a media
gateway. Media Gateway is under the control of a Media Gateway Controller
(MGC) whose function is to provide call control and signaling. When MGC
receives information such as numerical digits dialed through a telephone from
Media Gateway (MG/MGW), it initiates the MG to alert the destination to whom
the call is intended so as to send and receive voice, data or other forms of
information. There are certain protocols such as IPDC, MGCP, SGCP and Megaco
(H.248) used for communication between MGC and MG. The Megaco/H.248
protocol is used to control the functions of the MGW by the MGC. Originally used
in VoIP, the H.248 is a part of the control mechanism that regulates the
functioning of the MGW. A joint effort of the ITU and the IETF, Megaco was
finalized in June 2000.
Breakout Gateway Control Function (BGCF) controls the passage of calls

originating and departing from the PSTN and provides an interface between IMS
and traditional call processing functions. It processes all the calls that are either
directed from IMS to the PSTN or vice versa. BGCF selects the Media Gateway
Control Function (MGCF) through which a call should pass in order to reach the
local PSTN. BGCF also manages the security of interconnected networks by
authorizing networks belonging to same status as that of the home network of the
BGCF. The Interconnect Border Control Function (I-BCF) controls the security of
the transport level and informs the RACS about the resource requirement for
managing the call. The A-BGF provides media relay required for concealing
endpoint addresses with managed pinholes. The concealment of endpoint
addresses thwarts bandwidth theft. Additionally, it also facilitates the application
of firewalls to regulate the flow of data and information.
2.6 IMS and SIP
2.6.3 Introduction to SIP
Session Initiation Protocol (SIP) forms the backbone of IMS. The IMS
components can be implemented using SIP agents and application servers. SIP
was designed in 1996 and specified by International Engineering Task Force
(IETF).
SIP is an application-layer protocol. It runs above the User Datagram Protocol

(UDP). SIP is used for starting, modifying and ending communication, conference
and collaborative sessions on the platform of Internet Protocol (IP) networks. SIP
helps users to invite other participants to an existing session where the participants
may be persons, automated service or a physical device such as a handset. Various
sessions that can be initiated using SIP include the following:
Multi-user conference based on voice, video and data
Instant Messaging (IM) chat or games involving multiple players
IP telephony call
SIP is a signaling protocol. SIP is principally a mechanism employed to

seamlessly create, modify and terminate sessions involving multiple participants.
Such sessions could be Internet telephone calls, multimedia conferences or
multicast sessions. SIP can work with any type of media content. SIP is
independent of the transport layer and can therefore be used with multiple
transport protocols as TCP, UDP or SCTP (expand these terms). The major push
for SIP was achieved in the form of its general acceptance as the preferred VoIP
protocol. Consequently, in the year 2000, SIP was acknowledged as the permanent
element of IMS as well as the signaling protocol for 3GPP.
SIP has gained wide acceptance among the Carriers, Network vendors and
Independent Software Vendors (ISV). It is already being employed by carriers for
offering services as long distance telephony, PBX, presence and instant messaging
while ISVs are creating new tools and software based on SIP for applications and
carrier networks. Additionally, diverse range of IP phones, network proxy servers,
VoIP gateways and media and application servers based on SIP are widely
available. SIP is capable of working efficiently with the numerous existing
protocols.
2.6.4 The SIP Session

The SIP session has four key components:
SIP User Agents
SIP Register Servers
SIP Proxy Servers
SIP Redirect Servers.
These components are of vital importance to IMS as they are commonly employed
to instantiate IMS components. The SIP components work in tandem for the
delivery of messages after defining their content and characteristics, thus
completing a SIP session.
The SIP User Agents (UA) are the devices which are used by the end users. These
devices could be PCs, PDAs etc. that are capable of supporting the SIP session.
The User Agent is present in the form of a client in the UE and in the form of a
server in the network infrastructure. The message is created by the User Agent
Client and the response to this message is given by the User Agent Server.
SIP Registrar Servers are the databases that hold the data concerning the User
Agents in a domain. These servers obtain and send the IP addresses of the
participants and also other information to the SIP Proxy Server.
SIP Proxy Servers accept session requests made by SIP UAs. Proxy Servers obtain
the UA’s addressing information from the SIP Registrar server. If the recipient UA
resides in the same domain, then this information thus retrieved is forwarded to the
recipient UA. If the recipient UA resides in another domain, then the information
retrieved is passed on to a Proxy Server.
SIP Redirect Server passes on the SIP session invitation to the external domains.
The SIP redirect servers are located in the SIP Registrar Servers and SIP Proxy
Servers.
Figure 2-2: SIP Configuration and Protocols
Source: Cisco
Figure illustrates the inter-relationship between SIP Components and Protocols.

The UA, Alice, is a Client (UAC). It uses SIP in order to start a session with
another UA, Bob, the Server (UAS). One or more Proxy Servers are involved in
the transmission of messages between two UAs. The UAs agents use the Session
Description Protocol (SDP) for describing the media session and Real-Time
Transfer Protocol (RTP) for transmitting the actual payload.
The Location Service database is used by the Proxy Servers to redirect the
requests to the appropriate destinations. In such cases, the Proxy Servers are said
to behave as Redirect Servers. The Domain Name Systems (DNS) Server acts as a
look-up repository for UAS domain names. In order to function as redirect servers,
the proxy server has to make contacts with the location service database. Proxy
Servers form a chain until the Proxy Server of the destination domain is found.
2.6.5 Value Additions of SIP and Its Implications for IMS
SIP is a simple request-response interaction model for the developers. Since
IMS architecture supports multiple devices and applications from several
vendors, it is easy to use the text-based messages which are similar to HTML
and hence easy to create, understand and debug SIP based applications.
SIP is being widely accepted and used because of its inherent ability to
facilitate converged services of next generation. SIP blends well with existing
Internet application protocols and standards such as Simple Mail Transfer
Protocol (SMTP) and Hypertext Transfer Protocol (HTTP). SIP has adopted
the features of existing protocols such as request/response paradigm of HTTP
and many messages and codes of it.
SIP is the preferred signaling protocol for VoIP. VoIP is the primary driver for
packet-based voice telephony. The infrastructure for VoIP is well-established
on International long-haul links. As IMS is synergistic with packet switching,
SIP provides a ready platform for IMS to build on.
SIP is interoperable with other protocols such as UDP, TCP, SCTP and ATM.
SIP, therefore, obviates the need to introduce new infrastructure to support or
implement it to a large extent.
SIP facilitates the reading of text based messages since its messaging features
are similar to HTTP that is used for the Internet/web. The address structure of
SIP is exactly the same as the email address that is commonly used over the
Internet. SIP uses the domain name feature of the web architecture. This
feature enables instant messaging among SIP users. A text-based message
eases the debugging and programming task for the designers.
As SIP employs intelligent elements that can be embedded in the terminating
devices of hardware or software, its implementation requirements are
straightforward and uncomplicated.
SIP when used in an interactive session involving a group of people, ensures
that the call reaches its destination. It also ensures that the details of the calls
are well recorded. The users can contact any number of participants
irrespective of the media type (such as computers, telephones, television) they
might be using or their physical location. For achieving this, SIP makes use of
Uniform Resource Identifier (URI) for identification of participants who take
part in the conferences and communication sessions. The general form of SIP
based URI is sip:user:password@host:port;uri-parameters?headers
SIP ensures the implementation of appropriate code among the various devices
which participate in the call session. This enables the participation of advanced
as well as less advanced devices in the session. SIP facilitates agreement on the
common features based in a session where some participants may not have less
sophisticated features than others. The features of the call may be changed or
enhanced. For instance, initially the call/session may involve only voice feature
while video feature may be added to the session after technological
advancement.
SIP is transparent to device types in terms of media processing capabilities.
SIP works independent of the media type (voice, video, application etc.)
involved in the session. This is very useful for IMS architecture because IMS
aims to achieve the convergence of voice and data services and also the usage
of converged services interchangeably between internet and cellular
subscribers.
SIP does not describe the type of session for the participants but only
establishes the protocol for the management of the session. Thus the
participants/users have the flexibility of conducting wide variety of sessions of
their choice such as voice, video, web conferencing, gaming, music etc.
Using SIP, service providers have the choice of selecting standard components
and adapt new technologies. New extensions to the SIP can be introduced
without affecting or modifying older SIP equipment, thereby saving costs.
SIP is independent of the transport layer of the OSI reference model. It uses
both the User Datagram Protocol (UDP) as well as Transmission Control
Protocol (TCP), providing flexibility to the users in terms of infrastructure.
Carriers can implement communication services such as call waiting, caller ID
etc., in a matter of months with the help of SIP which previously took them
years when they were using SS7 standard of International Telephony Union
(ITU). It should be remembered that the IP IMS architecture is a step forward
over the SS7 architecture because it combines the Web and Internet with the
traditional networks.
SIP offers flexibility for the developers to work with the protocol messages
without the need for involving any intermediate elements. Any of the features
of SIP have been borrowed from other protocols and internet standards. Web-
based technologies can be used to the building of SIP applications. This feature
is useful for IMS architecture because IMS is designed to add/introduce new
services without major modifications to the existing platform. SIP is designed
on the basis of HTTP and other Internet standards. Hence SIP is very
appropriate for IMS architecture. Moreover, IMS also includes gateways that
convert SIP signaling to protocols that can be followed by non-IMS wireless
and wireline networks.
In a nutshell, it can be surmised that IMS is the standard way of putting SIP into a
network and making the whole communication systems compatible for the
equipment vendors, software developers and service providers for using common
components. Different stake holders are working by following the IMS
specification.
2.7 Conclusion
The genesis of IMS lies in the quest of the conventional operators to provide
distinct and profitable rich multimedia services. IMS has received industry wide
support on account of its open and standardized architecture. IMS helps overcome
many limitations and challenges faced by conventional wireless and wireline
networks. IMS, at the same time faces challenges with regard to managing
stakeholder expectations in order to be widely accepted.
3 Market and Technology Drivers for IMS
The proof of the IMS vision will be in the successful rollout of services that are
built on the applications that utilize IMS infrastructure. Only when IMS
infrastructure is deployed, with real world services and applications utilizing the
IMS framework, providing services for end users in a commercial network, will
the promise of IMS be proved positive.
In addition to specific drivers that we discuss below, IMS promises certain

network improvements including:
• Lower costs
• Faster time to market
• Multi-vendor approach
• Standardized third-party interfaces
• New, innovative multimedia services
• Increased revenues
• Central repository for customer data
3.3 IMS Supports the Drive to a Next Generation Network (NGN)
IMS is one of the key elements in carrier’s desire to evolve their networks towards
NGN. There is no standard definition, but most people would agree with the
following characteristics:
A new telecom network with broadband capabilities

An IP based network
Enables many different business models across different networks, devices,
service providers, applications, etc.
Enables inter-working with legacy applications and CS/PSTN
Enhanced by centralized control: IMS
3.4 Application Control: Central Control of IP based Services
One of the market drivers for IMS is that network operators want to have IN like
control for traditionally hierarchically flat networks and delivery mechanisms.
As depicted in the above illustration, IMS is an effort to provide centralized
control to IP based services.
As operators evolve their networks to NGN, there is a real dichotomy that arises
between their old legacy network and the new IP based network.
• Internet
No single point of failure
“Dumb Network”
End-users have flexibility of choice
Quality of service is suspect
• Telephony
Points of failure with built-in survivability
Control is centralized
End-users have little or no choice of applications, devices, services,
and service providers
Quality of service is carefully controlled
IMS provides a framework from which to provide the best of both worlds: Legacy
“telephony” like control, quality of service, and survivability while maintaining
flexibility and richness of application creation and deployment.
3.5 Market Driver: Need for More Revenue and Better Margins
All Carriers have hit growth plateaus in revenue and margins. Bearer services
(voice and data) are becoming increasingly commoditized. There is an increasing
need for value-added applications, content, and services, but the carriers need
control so as to not be relegated to the proverbial “dumb pipe”.
Operators do not want to compete based on price alone. The likes of Google,
Skype, Vonage, etc. are biting at the heals of legacy carriers. Everyone believes
that converged services will yield more revenue while improving loyalty and
customer “stickiness”. The triple and quadruple play is what every carrier seeks to
enjoy. There is also a belief that there is more money to mine in enterprise
services that will create new opportunities for network operators to expand in
certain key areas such as machine-to-machine (M2M) communications.
At the end of the day, the big drivers are Lower Cost and New Revenue Sources.
The greatest challenges for any telecom service provider are to operate their
networks at the lowest unit cost structure possible and open new sources for
subscriber revenue.
IMS systems offer the opportunity to do both in the long term. In the short term,
carriers must expect to invest more capital and make the network a little more
complex before it gets simpler.
The search for new sources of revenue will lead carriers to introduce multimedia
content and innovative new services over networks that have dramatically
improved throughput as compared with just 3 to 5 years ago.
IMS technology will help carriers experiment with new services and bring them to
market more quickly and at a lower cost. Ultimately, the marketplace will
determine the successful mix of features and carriers will continuously innovate to
follow where the market leads them.
3.6 Market Driver: Capital Savings
Under the IMS framework, all major network functions comply with open
standard interfaces. Further, all services whether voice, data, or multimedia, are IP
packet-based and carried over a common core infrastructure. Only the access
technology is specific to the transmission medium used (wireless 3G, WiFi,
Ethernet, etc.).
Reducing the core network to an all-IP technology simplifies the architecture and
capitalizes on the economies of scale of computing platform technology to lower
equipment costs.
The open standardized interfaces between nodes allows carriers to source their
network equipment from multiple vendors supporting overall lower capital costs.
Even though the IMS framework supports lower costs, the network is destined to
become more complex and more expensive before it gets simpler and cheaper. The
reality is that today’s networks are already loaded with infrastructure with long
depreciation cycles are still earning a return on their original investment.
Even wireless networks, which have the lower average age of plant, still have
large volumes of imbedded investment with some recent high investments for 3G
that have yet to provide their full return. The result is that carriers will want to
continue to use existing infrastructure to provide new services.
In the short-term, this will introduce new dedicated-purpose autonomous platforms

to offer some specific pre-IMS features using the imbedded infrastructure. Also,
carriers will implement special purpose inter-working platforms to link existing
pre-IMS networks together.
The capital investment choices by carriers in the transition to IMS are critical to
how quickly they ultimately reach a lower cost network structure. Choosing too
many hybrid solutions too early will waste investment or delay the migration to a
heterogeneous IMS environment. Carrier focus should be on ensuring it does not
become less reliable at the same time.
.
3.7 Market Driver: New Revenue Opportunities
The theme of IMS-based services will be “Faster, Smaller, and Cheaper”.
Carriers must develop new revenue sources quickly and improve operating
margins. IMS platforms are designed to integrate the required support functions of
any new feature such as methods for provisioning the new service, billing for the
new service, and administering the services.
By leveraging the same set of OAM&P functions for all services rather than
having dedicated OAM&P systems for each service, the carrier can streamline the
deployment of new features.
Using the integrated IMS-based Service Delivery Platforms, carriers can introduce
services more quickly by not having to establish the dedicated OAM&P systems
and processes to support each new service.
A new feature can be more quickly trialed and deployed while the administration
of the new feature flows to existing systems. The carrier gains a time to market
advantage.
3.8 Market Driver: Targeted Offerings and Premium Services
Similarly, with the ability to launch new service more quickly without the parallel
launch of new support processes, the carrier can also take a chance on launching
more targeting niche services.
Each offering does not have to be a blockbuster, but new revenue growth can be
nurtured among an extensive set of niche offerings completed at lower cost.
Carriers can more easily justify the smaller incremental investment to target a new
feature idea towards a smaller, perhaps more non-traditional market group.
Some of the most significant benefits from the IMS model architecture come from
the wide range of new services that can be created. Multimedia, video, streaming
applications, downloads, and vertical solutions for enterprise are all enhanced
through the availability of greater bandwidth and unified control.
Premium services will require Quality of Service (QoS) guarantees and resource
allocation of network assets and bandwidth.
In the IMS model, these premium services create opportunities for the service
provider to differentiation their services and charge premium revenue. The
carrier with the greatest unified control over their service quality can segregate
services with assured quality metrics and create classes of service quality at
premium prices.
Service customization through subscriber preferences offers another wide range of

new revenue opportunities.
Feature applications can be written that offer greater customer control thereby
enhancing customer retention. Using the capabilities of the Home Subscriber
Server and the Presence and Location Server, carriers can develop innovative new
features that customers can tweak to their own preferences. This offers the
combined benefit of higher retention and the creation of premium revenue
services.
3.9 Market and Technology Driver: Operational Cost Savings
Since IMS platforms integrate common billing, support and maintenance

interfaces through open standards, the carrier can simplify their operations and
reduce expense costs.
IMS platforms offer an open architecture for new service creation and delivery
without having to replicate provisioning and billing support for each application,
the time to market and cost to introduce new features are also reduced.
IMS platforms are not economically viable if the goal is simply to replicate
existing services in a new architecture. The payoff of adopting IMS-based systems
is to develop and introduce new value-added services for incremental revenue at a
lower cost per subscriber. Leveraging a common set of billing and support systems
through IMS open interfaces is a critical element to reducing operating costs to
launch new services more quickly and maintain operating margins.
3.10 Market Driver: Service Creation and Delivery
The IMS model architecture defines standard interfaces for the Service Delivery
Platforms in the Services Plane of the network.
New platforms with standard tool kits to create new services allow for the uniform
delivery of new features through open standard interfaces to the Control and
Network Planes. This established a clear line of demarcation for the creation and
delivery of services where new entrants can create services and carriers can
control access to the network from the services environment.
The Service Plane helps to level the playing field among network-based carriers
and other non-infrastructure service creators. Separating and standardizing the
control and delivery of service features will act to remove the “walled garden” of
proprietary features and enables access to new content.
New service creators can also include owners of media content looking for new
outlets of distribution for their content. New models of alternate service providers
can be defined based on how carriers look to fill the need for the creation of new
services.
SIP-based applications development expands the size of the feature market for
everyone. The position of independent developers and VNOs using emerging
service-hosting arrangements expands more than others.
3.11 Market and Technology Driver: Convergence Driving IMS
Industry changes underway that are driving the need for IMS are best described
using the theme of convergence:
• Convergence of technologies: IP is the common network protocol
• Convergence of networks: wireless and wireline networks sharing nodes
• Convergence of access: handsets that access more than one network
• Convergence of services: features that follow the user across networks
• Convergence of content: access the same content across multiple networks
• Convergence of revenue: user’s demand is divided across fixed and mobile
• Convergence of control: customer control over service provider features
Convergence is alive and well in wireless and wireline networks. It is further

pushed by the expanding competition focused between networks and also from
new service provider models such as Mobile Virtual Network Operators (MVNO),
new telecom entrants such as MSO’s, and virtual telecom providers such as
Google, who are competing using national brand names.
Another economic factor driving convergence is the depreciation of older, circuit-

switched technology. Once it reaches the conclusion of its service life, the logical
choice for replacement capital assets is the same lower-cost packet nodes which
are the heart of the converged network. A carrier faced with future growth
capacity planning will choose to adopt the convergence path for the most effective
use of their capital budget.
Declining top-line revenue, earnings pressure from higher expenses maintaining

older, less efficient equipment that is expanding as capacity continues to grow, all
result in downward pressure on the stock price of traditional wireline carriers.
They must develop new sources of revenue through new service offerings,
improve their operating cost structure and increase their competitiveness.
Developing new features and delivering those features at a lower cost per
subscriber are key to more effective competition for wireline carriers. Wireline
companies must innovate new services or other differentiating features in order to
stem the tide of eroding revenues. Convergence is the most compelling plan to
improve results on each of these counts, not only for wireline carriers but wireless
as well. By way of example, the below diagram illustrates some of the major
drivers pushing wireless and wireline convergence.
Reduce operating
Increased MVNO expense structure
competition
User Wireless
Convergence ensures lower cost and ability
demand Service to compete using a wider array of services.
indoors Provider
Older network offers

fewer innovations Higher cost
structure
Slowing voice
revenues
Access to richer
multimedia content
Wireline
Convergence offers lower cost structure and
new services to increase lost revenues.
Service
Provider
Decreasing
Weak stock revenue growth
performance
Convergence of features will progress over time. We will see different types of
convergence in stages.
IMS is a model architecture that carriers will slowly move to adopt in stages. Just
as the architecture will evolve and scale gradually, so will the degree of
convergence that is achieved over time.
Stage 1: Price bundling of existing services:

package pricing of network functions that are still autonomous
service providers will bundle services into trial feature sets rather
than gaining greater value by truly integrating the services
Stage 2: Combination of simple related functions into a common
handset:
without the IMS network architecture to deliver an integrated
solution
example: a handset that connects for voice and data over 3G
wireless networks as well as with WLAN WiFi networks
provides voice and data functions but not end-to-end multimedia.
Stage 3: Network elements converge around the IMS standard model:
Supports broadband multimedia functions end-to-end along with
multimedia handsets
Stage 4: Across the network boundaries:
Integrate wireless and wireline networks to share core network
nodes and IMS platforms. Business reasons may limit or preclude
this stage.
3.12 Operational Driver: Evolving to an Integrated Network
Pre-IMS networks are vertically integrated along network type, technology type,
and applications type:
This means that each application is its own “stove pipe” in a sense, leading to
separate OSS/BSS systems, provisioning and administration, and operational
support.
By way of comparison, IMS networks are completely integrated:
This offers many of advantages, not the least of which is the ability to implement
and maintain centralized support systems from an operational perspective.
3.13 Turning Point in Telecom is Good for IMS
We are now at the turning point in the telecommunications industry where the
distributed intelligence and lower cost of the worldwide IP network has finally
overtaken the dominance of the circuit switched world. Further, the flexibility of
digital protocols has led to the breakdown of network barriers as services are
carried in packet form across wireline, wireless, Ethernet and cable networks. We
were already well on the way to convergence before the IMS architecture came
along. The below table compares some of the changes driving towards this
disruption:
Traditional PSTN Internet
SS7 Signaling TCP/IP Protocol
Concentrated bandwidth in core Bandwidth distributed at edge
Intelligence in the core Intelligence at the edge
High reliability Flexible re-routing
Connection oriented Transaction oriented
What IMS offers is a standards-based, open architecture with defined protocols to

ensure service quality levels to allow for the broadest range of services across
networks. It provides the roadmap for the convergence journey that digital
economics were already driving.
Through these convergence technologies, features and services will extend across
network boundaries. Basic voice services or VoIP can now be found in wireline,
wireless, internet, and cable networks. Instant Messaging also crosses networks
and some wireless multimedia applications also are now beginning to.
Service providers will be under pressure to reduce the cost of providing these
services to improve margins. As they do, they will be looking for the most cost
effective means to deliver services and the IMS model architecture will eventually
help move carriers to a lower cost structure by centralizing features and services
into the Services Plane. In some cases, a common set of Application Servers or
Service Delivery Platforms may be able to host services for multiple networks
under one service provider corporate umbrella. This is most practical where the
carrier has sole ownership of the networks rather than through jointly owned
subsidiaries where asset separation may be an corporate requirement..
4 IMS and Value- added Applications

This report discusses the following applications that have been aided by IMS in
terms of ease of implementation, enrichment in features and scalability.
Video Calls
Unified Messaging
Push-to-talk
Wireless-Wireline Convergence
Online Gaming
Video on Demand
This section covers the following aspects for each of the above applications:
The case for Value-added Applications

Traditional Design and Implementation Methodologies for Value
Added Applications
Changes and enhancements introduced by IMS
Case Studies
4.3 Services Capability Interaction
A problem arises when multiple services come into play for a given end user.
How are multiple services to be coordinated? How shall, for example, incoming
call treatments be applied when multiple services are currently operating on the
same session? In what order should the individual operations of the services be
applied? For this purpose, 3GPP has defined the concept of the Service Capability
Interaction Manager (SCIM), and it can be included within the Application Server
entity to perform this coordination function involving the interactions of multiple
services.
Standards Supporting SCIM
There is very little support available in the 3GPP standards to support SCIM.
There is one paragraph in an IMS Stage 2 standards document, which is copied
here from TS 23.002:
The application server may contain "service capability interaction manager"

(SCIM) functionality and other application servers. The SCIM functionality is an
application which performs the role of interaction management. The internal
components are represented by the "dotted boxes" inside the SIP application
server. The internal structure of the application server is outside the standards. The
Sh interface shall have sufficient functionality to enable this scenario.
AS
AS AS
SIP Application
Server
SCIM
Server
Sh
ISC
OSA
OSAservice
service OSA
OSA
HSS
HSS SS-CSCF
-CSCF capability
capabilityserver
server application
application
Cx ISC (SCS)
(SCS) server
server
OSA API
ISC
Si
IM-SSF
IM -SSF
MAP
CAP
Camel
CamelService
Service
Environment
Environment
In other words, 3GPP, at least as of yet, does not intend to standardize the
interfaces between the SCIM and the Application Servers. So how will the
situation of the multi-vendor Application Servers be accommodated? Again, this
seems like another issue for the network operators, service providers and vendors
to figure out.
In the above diagram, the SCIM is shown in the 3GPP network architecture in
relation with the network elements it communicates with. Note that the Camel
Service Environment as well as the IM-SSF are elements that are needed to
support legacy INAP and CAMEL services within an IMS network.
4.4 Presence
Presence is really not an application by itself but is rather an enabler of

applications, adding value to them.
We shall define presence information within a telecommunications context

including the state of an object or device, status of attachment or engagement,
device type, usage or activity, and coarse location information. All of these
attributes can be used to distinguish the presence of an entity or object. In
telecommunications or computing an object or device can be many things
including a PC or laptop, circuit-switched or IP-based phone, mobile/cellular
phone, or other wireless data, voice or signaling device.
Key things to consider about presence specifically in an IMS context are:
Determining the status/state of an entity

o General (not precise) location
o What network, device, bearer, etc.
o Activity, on/off, application, etc.
Presence and availability are not exactly the same thing!
What does it do for IMS?
o Presence is generalized in IMS and decoupled from other
applications such as instant messaging
o Presence and Value-added Service (VAS) applications
o Presence data adds great value to IMS for both service
orchestration and service delivery
4.4.3 Evolution of Presence
Presence started as an inherent part of instant messaging (IM). Standards bodies

and industry forums included:
Open Mobile Alliance (OMA)

Internet Engineering Task Force (IETF)
Generation Partnership Project (3GPP)
Standardization efforts included:
IETF's SIP (Session Initiation Protocol) and SIMPLE (SIP for

Instant Messaging and Presence Leveraging Extensions)
APEX (Application Exchange), Prim (Presence and Instant
Messaging Protocol)
The open XML-based XMPP (Extensible Messaging and Presence
Protocol), more commonly known as Jabber
OMA's (Open Mobile Alliance) IMPS (Instant Messaging and
Presence Service) created specifically for mobile devices.
Presence has since evolved to become a stand-alone capability, not tied only to
IM. Furthermore, presence has evolved to support a specific network architecture
for IMS, but first let’s review some basic presence concepts and definitions.
4.4.4 Presence Concepts and Definitions
• Presentity: Entity providing presence information

• Presence Server (PS): An entity that accepts, stores, and distributes
presence information.
• Watcher: A watcher is an entity that subscribes to or requests presence
information about a presentity from the PS.
• Presence User Agent (PUA) is an entity that provides presence
information to a PS. When the PUA intends to publish its own view of the
presentity's presence information, it shall generate a PUBLISH request by
acting as an Event Publication Agent (EPA)
• Resource List Server (RLS): An implementation of the presence list
server. The RLS is an entity that accepts subscriptions to resource lists and
sends notifications to update subscribers of the state of the resources in a
resource list.
• Presence Network Agent (PNA): Collects presence information about the
presentity from a number of core network entities. The PNA can combine
information from various core network entities to form more complete
presence information.
An entity (User Agent or Application) can either initiate a “pull” request or on-
demand request for presence information or subscribe for presence information
based on various criteria that would initiate a “push” of presence information.
A presence push is done autonomously based on subscription.
Subscription is complicated and based on rules including:
Permissions
Privacy
Policy
Event
• Subscribe: To register for presence information. To request presence

information to be pushed to the subscribing entity
• Publish: To push presence information
• Notify: To let a Watcher know about presence status/state
The presence service provides the ability for the home network to manage
presence information of a user's device, service or service media even whilst
roaming. A user's presence information may be obtained through input from the
user, information supplied by network entities or information supplied by elements
external to the home network. Consumers of presence information, watchers, may
be internal or external to the home network. The architecture for the 3GPP
presence service is specified in 3GPP TS 23.141.
4.4.5 Example Application: Presence and IPTV
IPTV and Presence Mash-up: Buddies can discover what each other are currently
watching, given the options specified in the Presence service (see also Presence
section). Users “presence” information on the network can be augmented to show
the television or video program the user is currently watching based on what the
IPTV Content Server is currently delivering to the end user’s premise equipment.
In the case of a multi-user household, it is not clear how the system is supposed to
know which user is watching the program being delivered. But, let’s assume those
details will be worked out. The high level view of providing this service is
something like this:
Presence Content
Application Delivery
Server Server
IPTV and Presence
Messaging IPTV Mash-up: Once buddies have discovered that they are currently
watching the same program, or they have intentionally chosen the same program,
they can then instant message while simultaneously viewing the program. This
can make the experience of watching television a shared experience between
friends that are not in the same room.
Incoming call notification: The IPTV user can be alerted to an incoming call on
their IPTV screen, including the calling name. In this way, the user need not get
off the sofa during a program to look for the cordless phone (which isn’t where it’s
supposed to be), only to determine it isn’t someone they want to talk to anyway,
then return to the sofa annoyed at the unwelcomed interruption.
4.4.6 Presence in IMS
There is a very specific architecture defined for presence within an IMS context as
depicted in the below diagram.
The Presence User Agent element shall provide the following functionality:
The Presence User Agent shall collect Presence information associated

with a Presentity representing a Principal.
The Presence User Agent shall assemble the Presence information in the
format defined for the Peu and Pep reference points.
The Presence User Agent shall send the Presence information to the
Presence Server element either via the Presentity Presence Proxy over
the Pep reference point or over the Peu reference point.- The Presence
User Agent shall be capable of managing the subscription authorisation
policies.
The Presence User Agent shall handle any necessary interworking
required to support terminals that do not support the Peu and Pep
reference points.
Presence User Agent shall uniquely identify itself (among the Presence
User Agents of the presentity) when publishing presence information.
The below illustration depicts User Equipment (UE) based User Agent:
The below illustration depicts network based presence User Agent:
The Presence Network Agent element shall provide the following functionality:
The Presence Network Agent shall receive Presence information from

network elements within the HPLMN and VPLMN.
The Presence Network Agent shall be able to send requests to the
HSS/HLR to cause other network elements to send (or stop sending)
Presence Information to the Presence Network Agent. Note that this only
applies where the other network element has Presence Information
subscriptions managed via the HSS/HLR.
The Presence Network Agent shall associate Presence information with the
appropriate Subscriber/Presentity combination.
The Presence Network Agent shall convert the Presence information into
the format standardized for the Pen interface.
The Presence Network Agent shall publish the Presence information to the
Presence Server across the Pen reference point.
The below illustration depicts the architecture for the Presence Network Agent:
The Presence External Agent element shall provides the following functionality:
The Presence External Agent shall supply Presence information from

external networks;
The Presence External Agent shall send the Presence information across the
Pex reference point according to the format standardized for the Pex
reference point;
The Presence External Agent shall handle the inter-working and security
issues involved in interfacing to external networks;
The Presence External Agent shall have functionality to resolve the location
of the Presence Server associated with the Presentity.
Examples of Presence Information that the Presence External Agent may supply,
include:
Third party services (e.g. calendar applications, corporate systems);

Internet Presence Services;
Other Presence Services.
The below illustration depicts represents the mapping of the Watcher and
Presentity Presence Proxy functionalities to IMS network elements when located
within the IMS along with the Watcher application.
4.5 Dynamic Address Book
4.5.3 Introduction
Dynamic Address Book represents a potentially high-value single-user feature
improvement optimized by IMS. Consider how most mobile handsets organize
their menu functions today. Typically, the address book contains the phone
numbers of your contacts, but text messaging is accessed through a different menu
function and sending an email requires an email client application accessed though
yet another menu. This follows from the separation of voice and data sessions as
well as the need for a more complex handset client to organize email.
A more user-focused design approach would organize the address book by contact
with one-button choices to select whether you want to use voice, text, or email as
your medium. The service can then be IMS-enhanced by adding Presence
information and customer preferences such that the network can tell you if the
person you want to reach is presently on the network and how they prefer to be
contacted. Other context-based connections can offer the user more choices in how
they communicate.
4.5.4 Implementation Methodologies
Dynamic Address Book is presence-enabled, preference supported, and by

definition supports many connected devices across any network or service
provider.
As depicted in the below illustration, Dynamic Address Book is supported on

multiple different “screens” to support service mobility and the dynamic lifestyle
of the modern day telecommunications user.
The Dynamic Address Book is characterized as follows:
• Typically, the address book contains the phone numbers of your contacts
Text messaging is accessed through a different menu function
Sending an email requires an email client application accessed
though yet another menu.
This follows from the separation of voice and data sessions as well
as the need for a more complex handset client to organize email.
• A more user-focused design approach
Organize the address book by contact with one-button choices to
select whether you want to use voice, text, or email as your medium.
The service can then be IMS-enhanced by adding Presence
information and customer preferences
- The network can tell you if the person you want to reach is
presently on the network and how they prefer to be contacted.
- Other context-based connections can offer the user more
choices in how they communicate.
.
4.6 Personalized Communications and Information
Personalized Communication / Information Services applications would represent

the ability to adapt and combine services and information in a way that is aligned
with the individual preferences of the user. This would involve the ability for the
subscriber to personalize their services by making their personalized selections
from a web portal or a voice response system. The subscriber’s personal
selections or elections are then utilized by the service logic during the execution of
services.
Presence and location can be combined with Personalized Communication /

Information Services application to provide services that could not be matched
without involvement of the network operator.
IMS enables personalized communications and information across any network,

carrier, device and protocol.
One of the key enablers of IMS is that it supports service discovery, meaning that
the service finds the user, regardless of current carrier, device, etc.
By their very nature, many of the services are push-based.
Push here means rather than user pulling (e.g. manually doing something). Instead
the information finds the user based upon specific:
Preferences
Presence
Behaviors
Events
4.7 Universal Prepay
With convergence of carriers, networks, services (etc.), and the rise of prepaid
communications becoming an accepted service option for consumers, the support
of a universal prepay platform will become crucial.
As convergence, IMS, and prepay all evolve, the following will occur:
• Prepay is no longer a silo

Not just for mobile usage and content
• Prepay is becomes universal
All networks, devices, services, content, media, etc.
• Prepay AS provides metering for both subscription and on-demand
applications and services of all types
• Prepay content and commerce
4.8 Consumer and Business Voice Services
Voice services are, of course, the original telephony service. IMS represents
another way of providing this service, plus many more services. The ability to
provide Voice services, while not a strong motivation for upgrading a network to
IMS, is essential nonetheless.
The IMS standards were first created by 3GPP, and support for wireless 3G has
always been a part of the IMS standards releases. The TISPAN organization was
engaged in IMS standards in order to capture the fixed network requirements and
architecture, with the first release of the TISPAN requirements for fixed networks
appearing in Release 7 of the IMS standards. The ability to simulate the PSTN /
ISDN networks within the IMS networks was the key to enable fixed network
operators to provide a path to transition their networks to IMS. Throughout the
industry, PSTN/ISDN simulation services are often abbreviated as PES (for PSTN
Emulation Services).
The capabilities defined in the standards for PSTN/ISDN simulation are largely
based on the supplementary services that have been deployed in PSTN/ISDN
networks. The standards provide similar operation for these services, but identical
operation between the user equipment and the network is not the intention. The
following PSTN/ISDN capabilities are mandatory in the IMS standards for
PSTN/ISDN simulation:
Originating Identification Presentation (OIP)

Originating Identification Restriction (OIR)
Terminating Identification Presentation (TIP)
Terminating Identification Restriction (TIR)
Malicious Communication IDentification (MCID)
Anonymous Communication Rejection (ACR)
Other capabilities, such as Communication Forwarding or Advice of Charge are

recommended services, not mandatory.
Consumer / Business VoIP versus Multimedia Telephony Services

You may have had a déjà vu experience reading the description of Consumer / Business
VoIP and think that it sounded very similar to the Multimedia Telephony Services
description. And if you went and looked through the standards documents, you may have
been even more perplexed. There is a lot of overlap. Each one has a slightly different list
of supplementary services that are included. Are these the same, or similar, what are the
differences? I will attempt to answer this as straightforwardly as I can.
The Multimedia Telephony services standards were released first by 3GPP. The
Multimedia Telephony Services standards were created by 3GPP, and are meant to track
closely with the circuit switched services defined by 3GPP, but enhanced to include
multimedia. The intent was to create a set of services independent of access network, so
they intended to cover the PSTN services within Multimedia Telephony Services.
When TISPAN got involved in the IMS standards, working in collaboration with 3GPP, a
new study of the requirements for PSTN/ISDN emulation services was conducted. One
can only conclude that the Multimedia Telephony Services standards did not meet the
needs that TISPAN envisaged, because new standards were created for PSTN/ ISDN
Emulation, with significant redundancy to Multimedia Telephony Services.
Both standards exist, neither has been withdrawn. So, how will a “common look and
feel, independent of access type” be achieved if wireline and wireless are working from
different standards (PSTN/ISDN Emulation versus Multimedia Telephony Service)?
Near as I can determine, this is a matter for network operators and vendors to work out.
But, I can offer the following simplified observation. For wireline operators using IMS,
the initial deployments of IMS applications must concentrate on providing PSTN/ISDN
emulation services. Multimedia is not a big driver for deployment of IMS, as it is present
as part of internet service, unlike the wireless domain.
For wireless operators, their situation is much different. They can continue to use the
circuit switch domain of 3G and GSM and interwork with IMS. Multimedia IS a major
value added that can be provided by IMS, and therefore a big driver for evolution to IMS.
Standards Supporting VoIP
TS 22.273 TISPAN; Multimedia Telephony with PSTN/ISDN simulation services

(Stage 1)
(No Stage 2 or Stage 3 documents available in the xx.273 series).
TS 23.228 IP Multimedia Subsystem (IMS); Stage 2
Release 7 of the IMS Standards was the first release to include the TISPAN requirements
for PSTN/ISDN Simulation Services.
4.9 Rich Calls: Adding Value to VoIP
IMS is about a lot more than just furthering VoIP as it stands today. IMS will also
enable “Rich Calls”.
A Rich Call is a 3GPP circuit switched call with an additional media such as
combining video or data to an already established circuit switched call between 3G
and / or GSM-EDGE mobile users. In the 3GPP Standards, these are referred to as
“Combined Circuit Switched and IMS Sessions”. Rich Calls are also often
referred to as Combinational Services.
The ability to continue to use the circuit switched network for voice or multimedia
services in IMS networks provides several advantages to the wireless operators.
Operators can continue to provide high quality voice services with their existing
infrastructure while they upgrade their network to provide new and innovative
services with IMS. An alternative to this would be to provide all voice services
with VoIP in an All-IP network including IP to the handsets. This would provide
additional challenges for network operators with regard to the additional latency
and QOS controls with the radio network. If all the existing services in wireless
networks have to be recreated in an All-IP network, then the time required to
duplicate all existing services would be substantially longer. The advantages of
continuing to provide services with their circuit switched network along with IMS
based services include faster time to market with IMS services, reduced
complexity in providing new IMS services, and the ability to continue to provide
high quality voice.
Within the 3GPP standards, the first phase of the Combinational Services includes
a simple peer-to-peer unidirectional IP stream in combination with (although not
synchronized to) a circuit switched call. These standards are available now.
Phase 2 of these standards will include more complex capabilities and an interface
to an Application Server. New capabilities for Phase 2 are expected to include
point to multipoint exchange, video streaming to a web portal, and an interface to
a video “mailbox” where media such as video can be stored and retrieved much
like voice mail is today.
The advantage to providing a Rich Calls / Video Share service is that it has great
potential to be a new and exciting service that was not available to subscribers
previously. Whereas Push to Talk has been available in many markets for many
years, and FMC is not as novel, 3G and IMS (to a lesser extent) enable a video
service that is new and novel. Plus, operators can be assured that the quality of the
user’s voice services will continue to be as good as they have been.
Standards Supporting Rich Calls
TS 22.279 Combinied Circuit Switched (CS) and IP Multimedia Subsystem

(IMS) sessions; Stage 1
TS 23.279 Combining Circuit Switched (CS) and IP Multimedia Subsystem
(IMS) services; Stage 2
TS 24.279 Combining Circuit Switched (CS) and IP Multimedia Subsystem
(IMS) services; Stage 3
Deployment Examples
AT&T's first IMS application was its video share service, which was first
launched in June of 2007, with nationwide service the following month. In this
service, users with AT&T 3G service, who are subscribed to the video share
service, can share live video from one device to the other. To use this service, the
subscribers first have a circuit switched call active, then the video is delivered
from one device to the other over the packet switched channel, with the IMS core
network manages the session, and it determines if both devices are enabled with
this service.
CSL, a mobile operator in Hong Kong China, launched commercial service of its
Video Share in November 2005. Nokia (now Nokia Siemens Network) is the
network equipment provider for the IMS core network. This is reportedly the first
video share service offering available in Asia.
4.10 Video Calls
Mind Commerce forecasts that the subscriber revenues from IMS-enabled Video
Calls will increase to USD 45778.6 million during 2011-2016 at a CAGR of
53.0%.
4.10.3 Introduction
Video call, as the name suggests, involves providing video in a mobile phone or
any related mobile device. Video call is as ancient as telephony. It is a full-duplex
communication among end users. The technology involved in transmission of
pictures have also been in place for a long time, but applications of Video call
technology have been slow to grow, due to high costs of infrastructure and
terminal equipment. Video conferencing, video surveillance, web casts etc are
major applications of Video call. For instance, video conferencing enables real-
life-like participation in a favorite event happening in another part of the globe. It
adds an element of personal touch in an era that is saturated with email and
messenger applications. It enhances the customer experience of a phone
conversation.
With increasing competition and customer demand, the cost associated with Video
call infrastructure is dropping. The processing power of computers has been
increasing exponentially over the past decade. Latest techniques for compression
and decompression of video and audio data in real time have partly overcome the
high bandwidth requirements of Video call. But the processing power required for
compression and decompression has been an impediment in widespread adoption.
The introduction of IMS architecture enables Video call across fixed and mobile
networks. It enables service providers to cost-effectively introduce newer services
to its customers.
4.10.4 Video Call vs. Video Share
It is important to understand the differences between Video Calling vs. Video

Sharing.
Video Share is sometimes confused with traditional two-way Video Call service.
Video Call involves simultaneous two-way Video and Audio transmission
between the 2 parties (from start to finish), whereas Video Share involves adding
and removing one or more one-way Video sessions to an existing voice call
between the 2 parties.
• Video Call: Intent is known upfront. Parties on the call are fully aware that
they are involved in a video call. The caller initiates the call as a Video
Call, and the length of the video is tied to the length of the voice call.
• Video Sharing: Session starts as a normal voice conversation, and
depending on the conversation, it may lead to one party. It has no privacy
implications for the recipient since the sharing of video is one-way.
• Video Call: Display screen on a mobile phone has limited real estate.
Splitting the screen into Picture-in-Picture (in order to display both sending
and received video streams) significantly degrades the Video Call user
experience on a mobile phone (Video Call with Picture-in-Picture is
effective in corporate applications such as video conferencing where a large
screen is used).
.
Earliest Video call products were based on ISDN phone lines. In the early 1960s,
AT&T introduced the picture phone that utilized crossbar and multi-frequency
operation. This marked the inception of Video call. Its popularity was limited by
its high price.
Subsequently, modems of higher bit rates enabled Video call products based on
single analog telephone lines. But, interoperability across Video call products of
different vendors was not possible. This necessitated the need for a standard
platform for connectivity and video quality.
In the late 20th century, H.323 protocol was a widely used standard for Video call.
It is still being used for business video conferencing. SIP enabled video phones are
easier to use for video conferencing requirements in houses.
The ITU-adopted H.324 protocol based on high speed modems enables

interoperability between various Video call products. It provides a standard for
video, voice and data transmission. It enables standards based compression of
digital video and voice to match the data rates of phone lines. Some of the H.324
based products are standalone Video call, TV based Video call and PC based
Video call. H.324 provides better video quality than earlier technologies and
protocols, but the user experience depends on the video window size. Bigger
window sizes imply higher cost.
Universal Mobile Telecommunications Systems (UMTS) networks have resulted

in increased deployment of Video call. UMTS enabled mobile phones have an
inbuilt camera and can engage in video calls with other UMTS users.
Broadband internet Video call enables transmission and reception of video data at
improved resolutions than on conventional telephony. But the quality of image and
the bandwidth requirements need to be addressed. Broadband satellite Video call
needs to overcome latency issues.
Video call is a major attraction associated with 3G networks. The introduction of

the 3G network is a definite benefit to operators. The Third Generation Partnership
Project (3GPP), a group of telecommunications associations introduced IMS
network architecture for 3G networks. This formed the basis for new applications
of Video call and for implementation of IMS architecture. The convergence of
mobile and internet technologies to deliver voice, video and data is gaining
prominence.
4.10.6 IMS – Value Addition

IMS sets the standards for the next generation in Video call. It provides a
centralized architecture that enables a seamless switch over from VoIP to a mobile
voice call. This enables exchange of video images when a voice call is in progress.
Both technical and user requirement aspects need to be considered while

introducing IMS. Smooth transition needs to be ensured. The charging
methodology needs to be defined suitably. Provisioning of services on handsets
must be automatic and simple.
With adoption of IP applications by mobile broadband suppliers, IMS is sure to

provide newer services.
The introduction of IMS provides the following advantages for users and the
operators:
Enables interoperability across users in disparate networks in different

geographies
Provides scalable architecture
Supports quick and easy upgradation
Reduces OpEx for network operators
Improves network efficiency
Better audio and video quality compared to earlier implementations
Provides improved security
4.10.6.1 3G-324M
3GPP consists of groups such as European Telecommunications Standards
Institute, Association of Radio Industries and Businesses/Telecommunications
Technology Committee (ARIB/TTC) and a few more. 3GPP has defined the 3G-
324M standards that utilize circuit switched wireless networks instead of IP
networks, to stream wireless multimedia services, real-time.
H.324 is the standard that 3G-324M technology for 3G Video call is based on.
H.324 is recommended by ITU-T. It enables setup and tear-down of
videoconferencing sessions over analog phone lines that use standard 33000 bps
modem.
The above mentioned technology provides the following advantages to end users
and operators:
Good quality of service
Easy to use
Simple and standardized billing
Easy deployment
The main protocols of 3G-324M are:

H.223 multiplexer that controls audio and video data to 64 Kbit/s
H.245 control channel that provides control functions such as media
channel management
Audio-Video codecs.
Adaptation layers for different media types such as video, speech and
data
3G-324M provides specifications to handle both low and moderate BERs. This
reduces BER-induced video quality issues. Packet-based networks have the
disadvantage of routing delays, BER sensitivity and overhead.
Forward error correction (FEC) and Automatic Repeat Request (ARQ) issues are
not addressed by 3G-324M standard. Also, the call setup time for 3G-324M is
higher than that of voice calls.
In conjunction with circuit switched 3G-324M services, packet-switched SIP

services enable provisioning of several 3G services.
Figure 4-1: 3G-324M Block Diagram
Source: www.commsdesign.com
Following is a list of some Video call solution providing vendors:
Radvision-Products: SCOPIA Interactive Video Platform, Mobile

Video Conferencing, Mobile Video Communities, Video Portal many
more.
Mirial-Products: PSE Video Portal, PSE Video Answering Machine,
PSE 3G Gateway.
Cisco-Products: Cisco TelePresence, Content Delivery Systems,
Videoconferencing.
4.10.7 Case Study - SingTel
4.10.7.1 Introduction
Singapore, Singapore’s largest telecom company has a customer base of than 124
million worldwide. SingTel was privatized on 1992. SingTel has a legacy of more
than 128 years. It is the market leader in Singapore. With operations in more than
100 countries, SingTel also holds the distinction for being the second largest
satellite operator in the Asia Pacific region.
The Group's other major investments in the region include the following:
Advanced Info Service (AIS) in Thailand

Bharti Telecom Group in India
Globe Telecom in the Philippines
Pacific Bangladesh Telecom (PBTL) in Bangladesh
Telkomsel in Indonesia
Warid Telecom in Pakistan
Optus in Australia
Singapore Telecommunications (SingTel) Group served 368 million mobile

customers in 25 countries at the end of September, an increase of 35 percent or
94.4 million from a year ago. During the quarter, SingTel added 54,000 mobile
customers in its home market as a result of strong customer demand for
smartphones. Total customer base increased 2 percent from a year ago to 3.2
million, with a market share of 44.1 percent as at 30 September.
SingTel had revenue of $14.9 B and operating income of $4.4 B as of March
2009.
4.10.7.2 Service Details

SingTel launched its Video call services in 2003.
SingTel offers Video call services to its landline and mobile subscribers having
compatible handsets.
Its tariffs for fixed line video call are mentioned in the Table 3-1:
Table 4-1: SingTel Video Call Tariff

Residential Business
Incoming Video Call FREE ALL DAY
Outgoing Video Call First 30mins FREE (Thereafter First 60mins FREE
16.05cents/min) (Thereafter
16.05cents/min)
Value-Added Service FREE Video Caller-ID for 12mths (Thereafter $4.28/mth)
Source: SingTel
SingTel also offers its mobile users a 3G LIVECam facility which facilitates home
surveillance remotely. The equipment includes a dedicated Mobile LIVECam 3G
SIM Card. The camera has pan, tilt, zoom, infrared and recording capabilities and
a standby time of 300 hrs. Up to 20 users can avail the facility at a time. The
monthly subscription fees for the service is S$ 8.56 while the one time cost of the
camera is S$ 353. The camera is also available on 24 monthly installments of S$
13.91
SingTel has employed the following vendors for its Video Call infrastructure
introduction.
Ericsson- 3G networks
Radvision – 3G Video Gateway
4.11 Messaging
Messaging services are commonplace in wireline networks and wireless networks

alike. In wireless networks, Short Message Services (SMS), often called “text
messaging” are very popular with subscribers, and are significant sources of
revenue for wireless network operators. On the wireline side, instant messaging
services provided over the internet are popular among users.
In the 3GPP and GSM wireless arena, Short Message Service can be provided by
either the Circuit Switched Network or the Packet Switched Network. And, given
the way IMS standards have been defined, with interoperability defined between
IMS services and circuit and packet switched services, SMS continues to be
available to the wireless-IMS subscriber.
What is the most efficient cost effective path for providing messaging services to
IMS Subscribers? Wireline users can continue to get Instant Messaging services
from the internet. Wireless users can continue to get Short Messaging Services
from their 3G and GSM networks. This will address at least the fundamental
needs of messaging that will allow operators to rollout IMS to subscribers and
meet the minimum of messaging requirements.
What about Multimedia Messaging Services, is that also provided by 3G (but not
GSM) without involvement from IMS? Multimedia Messaging Service (MMS)
standards are provided by 3GPP for 3G networks, but it is not extremely prevalent
in commercial usage due to interoperability issues. IMS does not enable MMS
services, as MMS services were defined independently from IMS. However, the
lessons learned from deploying MMS services are valuable in understanding the
obstacles, and marketability of multimedia services enabled by IMS. A low / high
take-up rate for multimedia services such as MMS may provide valuable data
points for the potential take-up rates for future IMS based services. This can be
very valuable data to prove in (or not) an IMS business case.
So, it has been established that the operators deploying IMS can continue to meet
the minimal requirements of users by utilizing the existing capabilities or the
wireless and wireline networks. There is not a lot (although there is some, see
below section on Deployments) of attention paid to messaging in IMS, except for
perhaps Video messaging. This is probably due to the fact that network operators
can continue to use the access networks to provide the basic service. Plus, new
versions of messaging come at a high cost in terms of added complexity. When
the first deployments of 2G SMS were deployed, the industry needed to be
concerned with interoperability of the messaging solutions between operators.
Then when 3G SMS was introduced, there was the interoperability not only
between networks, but then between 2G and 3G systems. Then Multimedia
Messaging was introduced, and yet another layer or interoperability issues were
introduced. And, when IMS messaging is introduced, there is another set of
interoperability issues not only with 2G, 3G, MMS, but also with wireline /
internet based messaging. Each new set of interoperability issues increases the
complexity of interoperability exponentially.
But what does IMS provide in the way of Value Added to this picture of
Messaging? The rest of this section will discuss the IMS specific value added of
Messaging.
IMS Messaging defines two temporal types of messaging:
Immediate messaging: With this type of messaging the sender expects

their message to be delivered immediately, almost in real time. If the
intended recipient of the message is not immediately available, the
message is typically deferred, and delivered when the recipient becomes
available.
Session based messaging: With this type of messaging, the sender(s) and
receiver(s) of messages are in a pre-arranged messaging “session”, for
example each has joined a “chat room”. Just like the immediate
messaging, these messages are also expected to be delivered in near-real
time. However, users who have NOT joined in the session are typically
unavailable and therefore do not receive the message(s). There is not a
requirement to store the message and forward to the user that is
unavailable.
Consistent with other IMS applications, Messaging shall provide a consistent

experience for the end user, regardless of the access network the user is connected
to (wireless, wireline, Internet) “wthin the capabilities of networks and terminals”
(the caveat as stated in 3GPP standards)1.
1
3gpp2 ts 22.340, 3rd Generation Partnership Project; Technical Specification Group Services
and System Aspects; IP Multimedia System (IMS) messaging; Stage 1
(Release 8), version 8.1.0, section 6.1.
The network needs to consider and respond appropriately to the capabilities of the
device that the user is using, such as whether it has video capabilities, and if so,
what formats the device supports (JPEG, GIF, etc.).
And perhaps the best example of the value added of IMS to messaging services
would be the interaction of the Presence capability, where IMS users can see the
presence of their buddies and their status
Standards Supporting Messaging
TS 22.340 IP Multimedia Subsystem (IMS) messaging; Stage 1

TS 23.340 (reserved for:"" IP Multimedia Subsystem (IMS) messaging;
Stage 2"")
(No Stage 3).
4.12 Unified Communications
While most organizations think of only Unified Messaging (UM), Mind

Commerce views Unified Communications (UC) as a very broad area that
includes UM.
Whereas UM is limited to the non-voice method of communications, messaging,

UC may be defined (as per Wikipedia) as: “Unified communications (UC) is the
integration of real-time communication services such as instant messaging (chat),
presence information, telephony (including IP telephony), video conferencing, call
control and speech recognition with non-real-time communication services such as
unified messaging (integrated voicemail, e-mail, SMS and fax).”
Accordingly, UC is much broader and encompasses voice for person-to-person

communications as well as voice for person-to-application and application-to-
person communications. UC also includes multi-media communications that may
combine any number of media such as video, imaging, and messaging of various
types.
For purposes of simplicity, Mind Commerce covers only two aspects of UC in this
report: (1) Incoming Call Screening and (2) Unified Messaging (UM).
4.12.3 Incoming Call Screening
Incoming Call Screening (ICS) represents a capability that provides control to the
end-user with respect to managing calls destined for their phone number or alias
across a multitude of networks, carriers, devices, and protocols.
• Incoming Call Screening (Management) ICS includes many functions:

Call screening
Call redirection
List management
Missed call recording
• ICS and IMS means:
Screen communication attempts from any network/device
Integration across applications
.
4.12.3.4 Implementation Methodologies

4.12.4 Unified Messaging
Mind Commerce forecasts that the subscriber revenues from IMS-enabled Unified
Messaging will increase to USD 102625.6 million during 2011-2016 at a CAGR
of 40.5%.
With advancements in the field of telecommunication and networking, voice and

video messaging have started gaining popularity in addition to mere text
messaging. There are several types of access terminals in use, for various
technologies and telecommunication media. The need for effective communication
using a single interface has become a necessity and hence the idea of combining
the messaging services together emerged. The integration of various messaging
services that can be accessed from a single interface is referred to as unified
messaging or converged communications. This requires integration of different
communication devices, media and applications such as VoIP, email, messaging,
conferencing etc. This enables users to exercise more control on their
communication needs and to stay in touch with anyone, anytime and anywhere.
From the service provider perspective, integration of various messaging services

onto a single IP based network is profitable. User-friendly interfaces with
customized applications enable service providers to retain customers and add to
the subscriber base. It enables provisioning of value-added services to customers.
A standard platform supporting different devices and systems enables
simplification of operations, services and delivery. This provides the advantage of
cost-savings for both fixed and mobile communications. Unified messaging also
enables storage of voice, fax and text messages that can be accessed real time. It
simplifies co-ordination among work groups in different geographical locations. It
enables quick access to appropriate people and resources.
To achieve the above mentioned advantages and more, a reliable and common
platform is essential to ensure high availability and seamless delivery of services
to customers. The network architecture needs to be scalable in order to be able to
reach more customers. Also, scalability must be possible at a reasonable cost.
From the subscriber perspective, unified messaging provides time-savings by

enabling access to all messages from a single interface. It results in increase in
productivity. Using text-to-speech and other conversion technologies, advantages
of unified messaging can be further tapped. For example, based on user
preference, emails can be delivered to subscribers in the form of voice messages.
Subscribers connected to the internet using a phone line can simultaneously access
voice messages. Facsimile messages can be viewed and replied to, from PCs.
IMS provides a modular architecture that assists in a smooth upgrade of the

existing network. The expense involved in upgrade is offset by subsequent profits.
Implementations of unified messaging involved complex architecture, high

deployment cost and cumbersome scalability. Individual implementations and
associated support teams were required for introduction of every new service.
Also, it necessitated end users to edit intricate configurations, in order to be able to
use services. User authentication for each service was not necessarily
standardized. In addition, it was not simple to combine voice and video, due to
their varying bandwidth requirements, diverse processing power requirements and
access methods. Conventional systems extensively used routers, access points and
firewalls that affected normal functioning of IP multimedia applications.
VoIP is a major push for converged communications. It enables provisioning of

superior voice and data services such as videoconferencing, whiteboard
collaboration, unified messaging etc.
4.12.4.4 IMS – Value Addition
Earlier implementations of unified messaging involved complex architecture, high

deployment cost and cumbersome scalability. Individual implementations and
associated support teams were required for introduction of every new service.
Also, it necessitated end users to edit intricate configurations, in order to be able to
use services. User authentication for each service was not necessarily
standardized. In addition, it was not simple to combine voice and video, due to
their varying bandwidth requirements, diverse processing power requirements and
access methods. Conventional systems extensively used routers, access points and
firewalls that affected normal functioning of IP multimedia applications.
VoIP is a major push for converged communications. It enables provisioning of

superior voice and data services such as videoconferencing, whiteboard
collaboration, unified messaging etc.
Use of IMS in unified messaging enables universal use of protocols and

architectures on a single network, for all access types.
Authentication process. Authentication is done by Call Session Function

(CSCF) and Home Subscription Server (HSS)
Single messaging server caters to all messaging types
Improved user privacy with the help of media encryption
Single bill for all services
Interoperability across disparate carriers, platforms and vendors
Charging and control across different network types
Reliability and security across wired and wireless networks
Leverages existing messaging infrastructure of the service provider
Scalable architecture. It enables easy reuse of architecture and hence
quicker deployment of services
Supports presence management, availability and location based services
Lessens risk of equipment obsolescence
The user accesses the IMS network via the IP, using IMS terminals such as mobile
phones or computers. These terminals contain software endpoints that are linked to
the internet user base. This functionality is possible even when the user is
roaming, as long as they use IPv6 and run SIP user agents. The SIP application
server simplifies application development, network deployment and upgrades.
Only authenticated users can send service requests to the SIP server. The IMS
terminals in turn communicate with the Session Border Controller, that link the
IMS network of the service provider with the internet. The Session Border
Controller handles network isolation, authentication and authorization, in addition
to firewall functions. A 3G gateway acts as a link between the traditional circuit
switched network and the packet switched IP IMS network. .
Figure 4-2: The Promise of Unified Messaging
Source: www.cdg.org
It overcomes the limitations of fragmented messaging services. It provides the

following key benefits:
Single user interface for all messaging types. This provides number
portability and a hassle-free messaging experience for the user
Enables users to select the required service regardless of the access
terminal – mobile, wire line or PC
Single user identity for messaging and all other IMS-related services.
This eases sign-up and authentication process. Authentication is done by
Call Session Function (CSCF) and Home Subscription Server (HSS)
Single messaging server caters to all messaging types
Improved user privacy with the help of media encryption
Single bill for all services
Interoperability across disparate carriers, platforms and vendors
Charging and control across different network types
Reliability and security across wired and wireless networks
Leverages existing messaging infrastructure of the service provider
Scalable architecture. It enables easy reuse of architecture and hence
quicker deployment of services
Supports presence management, availability and location based services
Lessens risk of equipment obsolescence
The user accesses the IMS network via the IP, using IMS terminals such as mobile
phones or computers. These terminals contain software endpoints that are linked to
the internet user base. This functionality is possible even when the user is
roaming, as long as they use IPv6 and run SIP user agents. The SIP application
server simplifies application development, network deployment and upgrades.
Only authenticated users can send service requests to the SIP server. The IMS
terminals in turn communicate with the Session Border Controller, that link the
IMS network of the service provider with the internet. The Session Border
Controller handles network isolation, authentication and authorization, in addition
to firewall functions. A 3G gateway acts as a link between the traditional circuit
switched network and the packet switched IP IMS network. .
4.12.4.5 Case Study – AT&T

4.12.4.5.1 Introduction
AT&T is among the largest communications companies in the world. The history
of telecommunications is closely tied with that of AT&T. It is complete
communications solutions provider with operations in wireless, high speed
Internet access, local and long distance voice and directory publishing and
advertising services along with IP based communication services to businesses. Its
acquisition of Cingular in 2004 has catapulted it to the no. 1 slot among the
cellular operators in the US. As of 2009, AT&T had revenue of $123 B and
operating income of $ 21.5 B.
4.12.4.5.2 Service Details

In June 2007, AT&T Inc announced the launch of AT&T Video Share. This
service was the first of its kind in the US. It allows users to share live video over
their wireless devices while participating in a voice call. AT&T believes that there
is a plethora of events that its customers would want to share with others in a real
time manner. Video Share is a one way live video feed viewed by the sender and
the receiver simultaneously with the voice call. Customer can activate the service
by clicking the ‘Video Share’ option that pops up once a call is placed. Video
Share is the first NGN and IMS-based service to be rolled out by AT&T.
Initially launched in three US cities of Atlanta, Dallas and San Antonio, the is
currently available in 160 cities across the US. The service is exclusively for
AT&T 3G wireless network.
The customer was required to have a Video Share capable handset. Two Video
Share service packages will be available, with a price of $4.99 each month for 25
minutes of video Share usage, or $9.99 each month for 60 minutes of usage. The
service also available on a pay-per-use basis at a tariff of 35 cents/minute.
Video Share works with the following handsets:
Samsung Sync
Samsung A737
LG Shine
Red Samsung Blackjack II
4.12.4.6 Case Study - Syniverse: “NEXT” platform and applications

Syniverse is a global managed communications services company based in
Tampa, Florida of the United States. The company began in 1987 as a GTE
business unit called GTE Telecommunications Services Inc.
Introduced in 2009, the “NEXT” platform from Syniverse enables subscribers to

communicate across networks, protocols and message types from any mobile
device.
The original concept of NEXT was to bridge all types of messaging and non-voice
communications (SMS, MMS, IM, etc.) by way of an intermediary platform.
Copyright Syniverse Technologies
Syniverse subsequently evolved their NEXT offering to represent a portfolio of

messaging mediation and interoperation offerings. One such solution is that inter-
carrier SMS application and business operations, which Syniverse acquired from
VeriSign in 2009 along with other telecom assets for $175 M in cash.
The acquisition combined NEXT with VeriSign’s operator and enterprise

platforms, which include an inter-carrier gateway for SMS and MMS, PictureMail
MMS platform, premium messaging gateway and mobile enterprise solutions that
enable businesses to send time- and event-based messages or alerts via voice, text
message or email. According to Syniverse:
Syniverse NEXT(SM) messaging solutions include Metcalf(TM)

Intercarrier SMS, an outsourced intercarrier messaging solution for
wireless operators jointly provided by Syniverse and RealNetworks, Inc.;
SMS Interworking Gateway Service for IP; SMS Open Connectivity Hub;
MMS Interworking Gateway Service; and Mobile Enterprise Services.
As of September 2010, The company's peer-to-peer (P2P) messaging volumes,

which include both short messaging service (SMS) and multimedia message
service (MMS), were up 23 percent quarter-over-quarter, with MMS traffic
continuing with an explosive 202 percent growth rate year over year. SMS traffic
also achieved 22 percent year-over-year gains. Overall, Syniverse moved an
average of 1.6 billion mobile messages per day in the second quarter of 2010.
It is important to note that, in aggregate, Syniverse’s NEXT portfolio and
individual messaging offerings represent a variety of different technologies that
rely upon certain IMS enabling technologies such as SIP. However, NEXT is not
yet fully integrated with the IMS framework.
4.13 Push-to-X
The notion of “Push-to-X” (P2X) is that the paradigm of one button engagement
of an application, most notably popularized by Push-to-Talk, will evolved to
encompass one button engagement of most any application, content, or services.
Whereas by definition, push to talk is voice, P2X will typically be a non-voice
application or perhaps multimedia involving voice.
Perhaps the best example of leveraging the Internet for a P2X type service outside
of the IMS framework (e.g. does not utilize IMS) is the touch screen, smart phone
application engagement such as the iPhone or Android enabled phones. These
rely upon always-on connectivity and widgets enable customization and ease of
use with iconic user interface.
Standards Supporting Push-to-X
TS 22.174 Push service; Stage 1

TS 23.174 Push service; stage 2
TS 22.250 IP Multimedia Subsystem (IMS) Group Management; Stage 1
Deployment Examples
Softbank Mobile Corp in Japan, as discussed in the Presence section has a

commercial deployment of Push-to-talk utilizing the IMS network.
Sprint in the US has a push-to-talk service and will be the company’s first end to
end IMS application, with SIP being supported in the mobile handsets.
Commercial service on the IMS network is expected in 2008. The service uses the
company’s new EV-DO Revision A network. Alcatel Lucent and Ericsson are the
network equipment vendors for the Sprint IMS network.
The name of the Sprint service is Nextel Direct Connect. Direct Connect service
is available between all subscribers, which means that the carrier will bridge the
Nextel iDEN network and the CDMA networks together to enable this service.
Sprint has some proprietary additions and enhancements to the IMS standards in
order to enable this service.
NTT DoCoMo in Japan is another service provider who has commercial service
for Push to Talk. The service was launched in November of 2005. NEC is their
vendor for the IMS equipment.
Whereas the sky is the limit with respect to potential P2X applications, Mind Commerce
focuses its attention primarily on Push-to-Talk as a more near term opportunity for IMS.
4.13.3 Push to Talk

Mind Commerce forecasts that the subscriber revenues from IMS-enabled Push-
to-Talk will increase to USD 21260.8 million during 2011-2016 at a CAGR of
23.3%.
Push-To-Talk (PTT), also referred to as Push-To-Talk over cellular (PoC) is a
wireless service that enables dynamic walkie-talkie type of instantaneous
communication using mobile phones. Unlike conventional telephony, a circuit is
not set up for the duration of the call.
PTT functions in half-duplex mode, that is, when one individual speaks, the other
individual(s) listen. Users are permitted to speak on a first-come first-served basis.
Users can talk to individuals or all members of a required group, by pressing a
designated PTT button. It removes the need to dial complete numbers and set up
conference calls. Users can switch between transmit and receive modes, by the
press of the same PTT button.
Half-duplex mode eliminates chances of interruption during speech. Hence, it is

best suited for brief and high-urgency voice communications, business
communications that do not require wide-ranging discussions etc. It is possible for
authorized support personnel to monitor and supervise the communication.

PTT technology utilizes a data network for voice communication. This ensures
that the users subscribed to the service always have access to the functionality,
using their phones equipped with PTT software. Users are charged based on the
usage of services and not on the basis of time. The availability of other users in a
group can be viewed, using the feature known as Presence.
PTT is built over VoIP technology and can be based on IMS developed by
3GPP/3GPP2. SIP (Session Interaction Protocol) and IP networks like GPRS,
WCDMA form the building blocks of PTT.
In 1930s and 1940s, Motorola introduced two-way PTT for use as dispatcher
systems by police and military personnel. Between 1950 and 1980s, these
deployments were upgraded and newer deployments made for a wider market. In
1993, Nextel partnered with Motorola and utilized its iDen technology to first
introduce real-time PTT on cellular networks in the US.
PTT is considered a development over two way radios. Commercial two way
radios involve pressing of a button when transmission is required. At all other
times, any radio communication on a specific channel or frequency is directed to
the radio’s speaker. To overcome the power limitations of two-way radios as well
as the performance and range limitations of mobile antennas, initial
implementations of PTT involved deployment of several base stations with
antennas, networked by fixed links. This necessitated extensive modifications to
the existing network, at a higher cost.
Implementation of PTT on IP networks introduces issues in QoS, number

portability and interoperability, in addition to indefinite wait-times to partake in a
PTT conversation.
In the context of cell phone carriers, PoC is used to instantly make radio voice
connection with other users on the same mobile carrier. This provides the
advantage of wider coverage through the roaming feature of mobile carriers. But,
PoC functionality does not work between users on disparate networks, due to
proprietary implementations.
Conventional mobile phone networks function in full duplex mode, with separate
frequencies allotted for transmission and reception. PoC is a complementary
value-added service that works in conjunction with the existing mobile phone
network. This provides the benefit of additional subscribers and increased revenue
to the mobile carrier, without the need to modify their existing services. Half-
duplex communication on the existing IP network demands lesser bandwidth and
eliminates the need for interconnection with PSTN networks. However, the growth
of PoC is closely dependant on the expansion and upgradation of 2.5G and 3G
networks.

To overcome the limitations of earlier implementations, a standard infrastructure
is being envisaged by Open Mobile Alliance (OMA), the lead for defining the
services requirements. OMA was founded by Ericsson, Nokia, Siemens, Motorola,
Cingular and AT&T Wireless, 2002. This was a move towards graduation from
proprietary implementations, to bring about global interoperability and advanced
handsets. It also aims at standardizing roaming, identification, addressing, session
establishment and answering. 3GPP and IETF develop the technical requirements
for standardization.
The PoC service defined by OMA is VoIP-based and utilizes IMS as the service
enabler. The IMS core consists of Session Initiation Protocol (SIP) registers that
are used to initiate and end calls. Real Time Transmission Protocol is (RTP) used
to transmit voice packets. The RTP works as a mediator, by deciding the order in
which the group members can talk at any given time during the call. Both group
calls and individual calls are supported.
The User Equipment (UE) contains the necessary PoC application software. The
UE interacts with the PoC server on the It interface, through the core and access
networks. The PoC server performs participant management tasks, based on the
nature of group communication required. It also interfaces with the charging
system. The IMS core network elements perform the task of authentication,
authorization, and accounting. The Group and List Management Sever (GLMS)
enable users to easily build and maintain PoC groups. The Presence Server
provides Presence information to the IMS, on the Ips interface. The Presence
feature provides information to a caller, about the availability of users of a group
to accept calls.
To enable functioning of PoC sessions across disparate networks, it is essential to

ensure interface and protocol interoperability in addition to ensuring appropriate
charging management. Different marketing strategies can be used to target a wide
variety of users.
IMS platform provides the following additional advantages:
Supplements PTT by providing high-margin voice services

Enables operators to achieve instant incremental revenue from already
existing voice and messaging solutions
Enables easily deployment, upgradation and bundling of services at a
fraction of the cost required for similar services on a non-IMS platform
Enables integration of voice PTT with pictures or video messages
Increases efficiency of work and helps in time management, using the
Presence feature
Offers features such as chat groups, filtering of incoming calls and do-
not-disturb status
Enables efficient management of contacts, using Mobile Contact
Manager service. The user can update contact groups without
intervention by the service provider
Offers Location Based Services (LBS) to find members of specific
interest groups in any geographical area
Enables over-the-air provisioning
Enables easy download of PTT client to the user equipment
Offers the ability to reuse common functions such as Presence, LBS etc
for newer services in future, thereby improving CAPEX and OPEX
gains
Figure 4-3: IMS enabled PTT Architecture
Source: http://voip.cict.dtu.dk/presentations/Steffen_Ring.pdf
The following vendors have offered PoC solutions:
Motorola
Nokia
Samsung
ZTE
Huawei
4.13.3.5 Case Study - Etisalat
Emirates Telecommunication Corporation, also known as Etisalat, operates in 18
countries across Asia, the Middle East and Africa, servicing over 100m customers
out of a total population of approximately 1.9 B people.
In 2009, Etisalat reported annual Net Revenues of AED 30.8 B.
Etisalat implemented the PoC and Presence solution supplied by Nokia. Nokia’s
PoC solution is compliant with OMA standard and adheres to the IMS standards
as specified by 3GPP. Nokia PoC supports different types of multimedia including
video.
Etisalat conducted trial runs from 2005 and launched the service in 2006 after
running the trials for 5 months. Around 87,000 mobile users signed up for the
service during the trial run.
An Etisalat mobile subscription and a suitable Nokia mobile phone are the pre-
requisites for the service.
Features of the service include the following:
View active members

Call back request notification
One-to-one calling
Group calling
Public/open group
Private/secure group
Call back request
Etisalat priced the service based on the number of pushes per month in the
following manner:
Package A is a monthly plan of 200 pushes per user with no subscription

charges and usage charges of US $ 22 (AED 80) per month.
Package B is also a monthly plan with no subscription charges and usage
charges of US $ 41 (AED 150) per month for 400 pushes
Package C charges US $ 57 (AED 210) per month for usage for 600
pushes per user with no subscription charges.
Package D is a monthly plan that charges US $ 71(AED 260) for 800
pushes per user.
Package E is a monthly plan of 1000 pushes per month for US $ 82
(AED 300)
4.14 Wireless-Wireline Convergence

Mind Commerce forecasts that the subscriber revenues from IMS-enabled
Wireless Wireline Convergence will increase USD 21831.9 million during 2011-
2016 at a CAGR of 19.2%.
4.14.1 Introduction
Wireless Wireline Convergence (WWC) refers to the convergence of the mobile
and the fixed networks. It enables seamless connectivity between end users of
wireless and fixed telecommunications networks, regardless of the location of the
user and the device being used. It offers a multitude of advantages for both
customers and operators.
Users have the benefit of using a single device and are provided with a single bill,
for various applications accessed across various networks. The devices are not tied
to a single network. It enables quick access to data, voice and video at all times.
Sharing of information between end users is made simple.
WWC enables operators to provide cost-efficient bundled services to customers,

as a means to increase revenue and customer loyalty. The operational cost for a
common converged network is significantly lesser. In addition, WWC enables
Mobile Virtual Network Operators (MVNOs) to provide dual mode functionality
to its users, with a single number. It facilitates fixed operators to proliferate their
business and provide differentiated services.
With growth in VoIP and 2G/3G technologies, the need for WWC as a means to
provide improved user experience is increasing. There is also the need to converge
enterprise PBX solutions and wireless solutions, to save enterprise costs.
Using WWC, mobile operators can take advantage of the good in-house coverage
of Wi-Fi networks, where mobile network coverage is poor. The mobile phones
can be made to hook on to Wi-Fi networks, with the help of Wi-Fi access points.
It is essential to provide connectivity between two varied networks, keeping the

service quality intact. The advantages of both the networks must be retained. IP-
based solutions play a major role in enabling convergence, by effectively routing
traffic and provisioning services.
IMS provides the major advantage of a common IP platform for multimedia

services for both wireless and wire line subscribers.

Unlicensed Mobile Access (UMA) is a mobile industry standard. UMA is also
referred to as Generic Access Network (GAN). It is used by integrated operators
with both fixed and mobile infrastructure, to provision dual-mode handset
services. The handsets must be UMA-enabled. This implementation at the access
layer forms the first step towards WWC. It enables mobility of handsets across
various access networks. Implementation using UMA is quicker, cost-effective
and causes minimal interruption to the existing network. Good performance
mobile voice and data services can be provided at a lower cost. QoS is ensured
using the wireless multimedia feature present in UMA-enabled handsets.
Figure 3-4 depicts an enterprise convergence solution using UMA deployment.
Figure 4-4: UMA based Wireless Wireline Convergence
Source: www.arubanetworks.com
UMA deployment for convergence consists of a UMA Network Controller (UNC)

integrated in the cellular core network, similar to a Base Station Controller that
acts as a gateway between the internet and the Mobile Services Switching Center
(MSC). As an interface to the internet, UNC supports IPSec and authenticates
UMA-enabled phones to connect to Wi-Fi access points. Authentication is done
based on the Subscriber Identity Module (SIM), as in GSM networks. The
authenticated UMA handset communicates with the UNC through the IPSec
tunnel, which in turn communicates to the MSC through the A interface. Voice
communication utilizes VoIP.
Major limitations of UMA include the need for newer dual-mode handsets and the
need for improved indoor coverage. Also, since UMA utilizes unlicensed
spectrum, interference is an issue. This may lead to poor voice quality.
Some of the key advantages compelling a shift to IMS-based WWC are the
following:
Enables interoperability across components and devices, by the use of

open standards and protocols
Provides mobility with a single number, single mailbox and a single
network based address book
Renders the network flexible and hence enables quick introduction and
deployment of newer services
Enables operators to provide cost effective versatile services
Provides flexible billing options for the operators, due to common
administration and maintenance
Provides secure and seamless handover of voice and data across
networks
Enables operators to exercise more control over the services being
availed by users
Empower subscribers with self-administration features
Enables smooth switching between home and business functions
Reduces Opex due to centralized control
Enables provisioning of unique services using IMS features such as
presence etc
Overcomes complexity and security issues associated with conventional
WWC networks
IMS is not essential to providing an FMC service. However the IMS standards
support FMC services in at least 3 different ways, namely:
Voice Call Continuity (VCC), which provides the ability to “handover”

between the public cellular voice system and the IMS, supported All-IP
service. More specifically, this is the capability to transfer the path of an
existing voice call between a 3GPP CS system (GSM/UMTS) and IMS, and
vice versa.
o TS 23.206 Voice call continuity between Circuit Switched (CS) and
IP Multimedia Subsystem (IMS); Stage 2
o TS 24.206 Voice call continuity between Circuit Switched (CS) and
IP Multimedia Subsystem (IMS); Stage 3
Call Delivery, because the HSS stores the information regarding the
location for the last registration for the user, enabling incoming calls to be
delivered to the end user irregardless of the network the user is currently
present. The Subscriber Location Function (SLF) is also important for call
delivery.
Common Look and Feel of Services through the Virtual Home
Environment; IMS provides the framework which allows services to be
performed for the end user with a common look and feel irregardless of
access network being used. This includes the situations when users
connected through a different service provider. The IMS standards that
support the common look and feel capability are called the Virtual Home
Environment, and this capability is achieved by having the services
performed (executed) by the home network.
IMS utilizes standard IP protocols, VoIP, SIP based on 3GPP and Telecoms &
Internet converged Services & Protocols for Advanced Networks (TISPAN)
standards.
Implementation of IMS to mobile core networks, to achieve WWC, requires

careful consideration of individual implementation on the various layers.
Figure 3-5 depicts IMS-based WWC connectivity.
Figure 4-5: IMS based Wireless Wireline Convergence
Source: images.tmcnet.com
IMS unifies session management, service quality management, subscriber

information management, billing system management and mobility management.
IMS performs the following operations in the WWC setup:
Matching of user profile details such as IP address with the relevant

application server through the CSCF
Routing the call through the required access interfaces including
licensed and unlicensed networks through MGCF and MGWs
Consolidation of subscriber data in the appropriate HSS
Mobility of users in the IP network is managed by the mobile IP technology that

transmits packets to the roaming network. This enables data exchange between the
mobile devices and the IMS networks. This is a time-sensitive operation and can
result in loss of data in case of switching delays. Hence, better hand-over solutions
need to be in place.
UMA and IMS solutions for WWC are complementary. IMS is a service layer
technology that enables several devices to access the same service, IMS by itself,
does not enable device mobility across different access networks. UMA is an
access layer technology that enables devices to access services over all network
types. It enables device mobility across different access networks.
IMS-Voice Call Continuity (IMS-VCC) solution being developed by 3GPP

enhances the benefits of IMS implementation by improving cellular coverage and
providing mobility between circuit-switched networks and IMS. Dual-mode
handset users can avail of seamless voice call continuity between disparate
networks.
Another option that improves indoor coverage is the use of femtocells. In

subscriber homes, 3G radio access points or femtocells can be deployed. This acts
as a base station and provides better indoor coverage. It is connected to the mobile
operator network through a fixed broadband landline. Within home, it enables
seamless switching between the mobile operator network and the landline
network. Femtocell solutions for WWC do not necessarily need dual-mode
handsets. It increases capacity of the mobile network and enables provisioning of
newer services at a lower cost. It eliminates the need for mobile operators to
deploy macro base stations that have high license and site acquisition costs.
Femtocells consume low power and are self-configuring. The infrastructure
required for Femtocell deployment is easily available.
UMA will provide intermediary WWC solutions to cellular operators migrating to

3G access networks and IMS core networks. IMS-based 3G femtocells will
provide the best solution for WWC.
Major vendors that have provided WWC offerings include the following:
Kineto
Nortel
Huawei
4.14.4 Case Study – Orange
Orange the major brand of France Telecom, had at the end of 2009, sales of 44.8
billion euros (33,7 billion euros at 30 September, 2010). At 30 September 2010,
the Group had a total customer base of more than 203 million customers in 32
countries. These include 144.5 million mobile customers and 13.3 million
broadband internet (ADSL) customers worldwide.
Orange brands its WWC offering in the French market as Unik. Incidentally Unik
is Unique in the UK and Unico in Spain. Unik was launched in early 2007.

The service consists of the following components:
Orange broadband subscription

Orange Live Box: LiveBox is the first European home gateway which
offers wireless broadband, digital television, Voice over IP, video on
demand, gaming and many other digital services through a single
aggregator device
Orange mobile subscription
UMA enabled handsets (Nokia 6136, Samsung P200 and Motorola
A910 among others)
Unik utilized UMA technology.
Orange has backed on the following historical strengths for the success of the
Unik initiative:
Broadband subscriber base

WiFi hotspot network
Installed base of home gateways
Not surprisingly, Unik met with an enthusiastic response in France and is counted
among the most successful WWC deployments. Orange sold close to 300,000 dual
mode (WiFi, GSM) handsets on an average on a monthly basis since the launch of
the service.
4.14.5 Case Study – Orange Tunisie
More recently, Orange launched a joint venture with Investec Tunisia to launch
operations for Tunisia's first 3G network. In May 2010, Orange Tunisie started
operating in the country as its third mobile operator and first 3G player. Orange
Tunisie has 3G exclusivity until February 2011, and the operator is expected to
capture 22.4 percent market share and 16.9 percent of revenue share by the end of
2015.
The new fixed-mobile operator is expected to bring much-needed competition into
the fixed segment and bring broadband access prices down. Orange Tunisie is
already creating market disruptions by positioning itself in the segment with Fixed
Wireless Access (FWA) technology over 3G. Primarily positioned in the past by
vendors as primarily only an effective way to provide voice services to rural areas,
Broadband FWA (BFWA) can deliver high-speed internet access to those areas
which xDSL and cable operators cannot reach by acting as a complementary
technology.
4.15 Entertainment
Entertainment includes many aspects including personalized information services

(such as “Joke of the Day”), music, television, and gaming. In the gaming
category entertainment may be further broken down into on-device (e.g. not
networked) gaming, on-line gaming, and reality gaming including location-based
and/or augmented reality gaming.
Recognizing that the entertainment segment is very broad, Mind Commerce has
focused research in this report primarily on the On-line Gaming segment
specifically.
4.15.3 Online Gaming

Mind Commerce forecasts that the subscriber revenues from IMS-enabled Online
Gaming will increase to USD 49005 million during 2011-2016 at a CAGR of
29.0%.
Games played over computer networks using internet or other technologies are
referred to as online gaming. Before the advent of newer technologies, online
gaming used hard wired terminals, local networks and modems. Online gaming is
considered a means of social interaction through entertainment.
With growth in internet access and computer networking technologies, online

gaming is gaining popularity in the entertainment market. Both single-player and
multi-player online games of varying complexities are available. Multi-player
games support two or more users simultaneously. Massively multi-player online
games that support thousands of players at the same time are also available.
Advances in mobile communications technologies, access terminals and other
associated services have made online gaming on mobile terminals, a reality. This
provides access to entertainment and gaming any time, any where and from any
terminal.
Multiplayer online gaming needs low latency and high capacity networks. 3G
networks, combined with advanced mobile phones having good resolution have
formed the platform for an enjoyable online mobile gaming experience. This
platform also enables introduction of newer features in gaming. This is an
advantage for operators, users and game developers. Use of varied mobile phone
features during online gaming acts as a trigger for users to explore other services
provided by the operator as well.
The various factors that influence the growth of online gaming are bandwidth,
latency, network coverage, speed, interference between services, access terminal
memory and resolution, hardware resources etc.

The first multiplayer gaming was introduced in 1969. Since then, there have been
several impediments to the growth in online gaming industry.
The conventional game-server architecture provides good control over gaming

sessions and participants, consistency in game states maintained by the server and
ease of billing. But, it faces issues such as high latency, high deployment costs and
poor scalability. The server capacity dictates the number of permissible players.
Failure of the server results in loss of service availability, since communication
between players occurs via the game server. In order to handle large number of
players, as in massively multi-player online games, the game was split into several
servers, each accommodating up to 5,000 active players at a time. This solution
partly addressed the issue of latency. Increasing number of players imply
increasing conflicts between players and services. There is no control mechanism
for this issue.
Peer to peer gaming architecture is a decentralized solution that overcomes some

of the limitations of game-server architecture. It provides resources to be shared
by all the players. Deployment costs are less and there is no single failure point.
Latency is low, due to direction interaction between players, without the need for a
server. Synchronization between players and administrative control mechanisms
for cheating are issues that need to be addressed in peer to peer gaming. There is
no consistency in gaming states, since each client holds a copy of the game state.
This renders the peer to peer architecture a complex one. Also, bandwidth usage in
peer to peer architecture increases with each new player. The bandwidth
requirements for both game-server and peer to peer architecture are comparable.
Conventional multi-player online gaming was based on single game platforms.
This prevented users from varied platforms to participate in the game. Use of
multi-platform servers overcomes this limitation. Also, multi-player gaming over a
fixed line network faced limitations in choosing location based games. This
necessitated mobile gaming.
Earlier implementations of online gaming did not provide integrated voice, data
and video features. A good cross-platform gaming experience requires the
operator networks and handsets to meet the same standards.
These architectures also require high processing power and high-memory devices.
IMS overcomes the above mentioned latency, bandwidth, network and hardware
limitations of earlier implementations of online gaming.
A distributed peer to peer gaming architecture consists of four main sections -

authentication, communication, storage and computation.
Player authentication and access control are managed by the authentication

section. Seamless and uninterrupted interaction between players is managed by the
communication section. Messaging tools also form part of the communication
section. The task of scheduling processes and games among players is done by the
computation section. Consistency, reliability and availability of data to various
players is taken care of, by the storage section.
A general gaming service consists of the following units as shown in the figure
below – Gaming Service, Community Service, Game Information Service and
Game Providers.
Connectivity for gaming is provided by the Gaming Service server platform.

Through the Gaming Service unit, games are distributed by Game Providers who
are the owners of the game. Players interact with each other by voice, messaging,
conferencing etc with the help of the Community Service unit. Information about
the game and players are gathered by the Game Information Service unit.
Figure 4-6: Conventional Online Gaming Architecture
Source: www.ibr.cs.tu-bs.de
The following data points are considerations in determining the viability of

multiparty online gaming applications:
Free or inexpensive gaming sites exist for multimedia gaming experiences

for broadband users
People like to customize their mobile phones, and want their mobiles to do
cool things.
Single-player games for mobiles are very prevalent
Multiplayer games for mobiles are available
Gamers are open to the "new-new" gaming experience which potentially
could be provided with uniquely telcom capabilities such as location and
presence.

IMS provides a standards-based architectural framework for a plethora of
multimedia and interactive services. These services can be accessed from both
wireless and wire line terminals. Interoperability across devices from different
vendors is ensured. Existing gaming applications can be easily migrated to the
IMS-based network.
Figure 4-7: IMS enabled Online Gaming Architecture
Source: www.ibr.cs.tu-bs.de
Figure 3-7 depicts the IMS game server architecture. The Focus unit
communicates with each user equipment (UE) via IMS interfaces to gather
authentication information and details of the UE. SIP signaling establishes the
gaming sessions. The Service logic & Policies unit maintains a database of policy
information. This unit works on user requests forwarded by the Focus unit. The
Proxy unit enables users to participate in chat sessions during gaming. The
Presence User Agent (PUA) unit enables communication with Presence Service to
obtain presence information of players. The game platform API enables
communication between Focus and game servers.
With voice-conferencing features and other multimedia capabilities, multiplayer

gaming experience is enhanced. This may encourage users to play for a longer
duration, thus increasing the average revenue per user. IMS enables initiation of
single-click audio capabilities during gaming. Using IMS-based presence
information, location, instant messaging and buddy list capabilities, users can be
suitably invited to join gaming sessions. Subscribed participants can receive game
related information such as scores, teams etc.
Provision of converged services to already existing customers helps in customer

retention. Improved performance, scalability and QoS are made possible by IMS.
IMS architecture enables tracking and control of services used by users at any
given time. This eliminates interference between services used by different users,
thereby maintaining gaming quality. It also enables customization of service
interaction guidelines. It provides immediate, deferred and session based
messaging options.
4.15.3.5 Case Study – Capcom
4.15.3.5.1 Introduction
Capcom has the following business divisions based on geography and operations:
Capcom Entertainment Inc. (USA)

Capcom Asia Co. Ltd. (Hong Kong)
CE Europe Ltd. (UK)
CEG Interactive Entertainments (Germany
Capcom Interactive Inc. (USA)
Capcom Interactive Inc. (Canada)
Capcom Entertainment Korea Company.

IMS extends the reach of the online gaming products to the mobile phones.
Capcom has been quick to spot the enormous potential presented by the 20 million
strong mobile Internet accessing communities in Japan. The mobile online games
are less complicated than the video online games.
Capcom recorded revenues of ¥66.8 billion / US$728.1 million as of March 2010.
Capcom’s customers include the following:
AT&T
Sprint
T-Mobile
4.16 Video on Demand

on Demand will increase from USD 4598.3 million to USD 35925.7 million
during 2011-2016 at a CAGR of 50.9%.
4.16.1 Introduction
Internet Protocol Television (IPTV) is the delivery of television content over
broadband IP networks. The IPTV system consists of two-way broadcast signals
transmitted through a backbone network. Servers in the system enable users to
select the required content at the required time. It also enables users to partake in
interactive sessions on TV. Using IPTV, voice and data can be delivered securely
on a single network that caters to all services. IPTV content can be in the form of
television programs, pre-recorded sessions, business training material etc.
Video on Demand (VoD), a subset of IPTV, is an interactive service, enabling

access of stored video and multimedia delivered over broadband IP networks. In
contrast to broadcast TV, VoD enables the required content to be accessed by
users as and when needed, from a TV or PC connected to the network. It also
enables downloading of content, to be viewed later.
When IPTV, along with VoD, VoIP and internet access facilities are provided as
an integrated package, the service is referred to as triple-play. Along with the
feature of mobility, this service is referred to as quadruple-play. These services
contribute to enhancement in customer satisfaction.
Using a set-top box, a TV receiver and a broadband connection, users can avail of
IPTV/VoD services. Content can also be received on portable computers, smart
phones etc.
IPTV is replacing other broadcasting techniques that utilize cable and satellite
networks. Improved network bandwidth, newer techniques for compression and
distribution, growth in demand for uninterrupted personalized digital content and
quality viewing experience have been major drivers in the adoption of IPTV/VoD.
With increase in the number of cable network operators providing triple-play

services, traditional telecom service providers are considering introduction of
IPTV/VoD services.

IPTV/VoD architecture includes the following components:
Service provider equipment
Customer equipment
The service provider equipment in turn contains several components:
The head-end video servers include a redundant array of inexpensive

disks (RAID) servers to store the required content, encoders for
conversion of video to other formats, billing servers and servers to
manage the services being offered.
A software guide enables the user to easily select and access the required
content.
The head-end management systems store the subscriber database,
manage access to content using DRM and generate bills based on the
usage.
The video transport network transmits the video stream through the IP
network, from the head-end to the customer premises.
The set-top box is used to connect the customer equipment with the
access network.
The customer equipment refers to the device on which the required content is
viewed.
The earliest commercial VoD deployment dates back to the 1990s, in Hong Kong.
Those implementations of IPTV/VoD did not enable easy addition of newer
features and services. The competition between service providers was based solely
on pricing for the existing minimal services. Thus the average revenue per user
from each of the existing services remained low. Also, each of the services being
offered required separate platforms for implementation, in addition to separate
databases and authentication mechanisms for users. This required higher capital
and operational costs.
Bandwidth restrictions resulted in slow download of content. Increase in on-

demand traffic resulted in overloaded network resources. Content owners placed a
restriction on the choice of programs available, in addition to restrictions on
recording of programs to be viewed later. This was the case of PCCW TV over
broadband service in Hong Kong. Interoperability between the customer
equipment and the access network was limited due to proprietary interfaces.

Introduction of IMS addresses the above mentioned issues. It enables a customized
blending of bundled services such as triple-play and quadruple-play.
Communication between conventionally independent services such as instant
messaging, voice and IPTV enables differentiated services such as multiparty
video messaging on TV, click-to-call and many more. Blending of services
increases the average revenue per user and increases customer loyalty.
Using other IMS features such as presence, location based services and others;
operators can provide services such as mobile TV, TV telephony with caller ID,
locator applications and presence-based advertisements.
.
Open standards interfaces enable complete interoperability between customer
equipment and the access network. Services can be delivered across various types
of networks, seamlessly, regardless of the vendor. This enables customers to
access services irrespective of their geographical location. Services can be
delivered to both individuals and organizations, fixed and mobile users using the
common platform. The modular structure enables quick deployment of new
services and equipment.
The standardized network platform permits users to access all services, with a
single authentication process. This enables a reduction in operational expenses and
capital expenses for the operator. Using this single platform, delivery of services is
quicker. A single bill is generated for all the services accessed by the subscriber.
The above advantages enable feature-based competition between service

providers, thereby triggering further growth.
IMS architecture utilizes SIP as the common signaling protocol. It enables quick
addition of newer features. IPTV and IMS interact with each other using SIP-
based tracking and notification to check the status of video sessions of users.
In Figure 3-8, the dashed lines in red indicate the additional functionality
introduced on implementation of IPTV architecture using IMS.
Figure 4-8: IMS enabled Video on Demand Architecture
Source: www.ixiacom.com
There are a few concerns to be addressed while implementing IPTV on IMS.
Since a common platform and a common control system are utilized for
all applications, it is essential to ensure that there is no interference
between applications. The control mechanisms offered by IMS need to
be appropriately utilized.
VoD requires the use of latest video encoding methods to its high-
bandwidth requirements. For example, Windows Media Video 9
reduces the data rate by 50%.
Various components in the common network architecture exhibit
different performance characteristics. It is essential to accurately predict
the overall performance characteristics of the network.
VoD streams must be properly queued in order to avoid packet loss and
jitter. Set-top boxes provide buffering of content and address this issue
to a certain extent.
In addition to the inherent authentication and security management
features provided by IMS, it is essential for the operators to take
measures to combat common security threats to IP-based networks.
4.16.4 Case Study – TransACT Capital
TransACT Capital Communications is an Australian telecommunications
company. It is based in Canberra. Services provided by TransACT include
broadband internet access, cable TV services, cellular phone services etc. The
company is part owned by ActewAGL. The company has comprehensive fibre
optic network in various areas. In all these areas it has ground electricity
distribution network. A variety of services are provided to the customers in this
manner. TransACT has in its list 20,000 subscribers.

TransACT offers video on demand (entertainment on demand) services to its
customer. The number of VoD customers is approximately 16,000. The pricing is
as per the view. Video on demand services include sports on demand and movie
on demand. This service allows the customers to select from a wide range of
movies or sports videos. IMS allows the user to pause, forward or play. TransACT
provides a set-top box, with a built in hard-drive and a DSL modem to the
customers.
4.17 Services Blending
Longer term, IMS will enable much more than just services across network and
carrier boundaries and completely new services. IMS will also enable services
blending. As depicted in the below illustration, IMS will enable the combination
or blending of services to form completely new services heretofore never
delivered across any network or carrier.
Services Blending
Longer term, services blending can be a highly advantage area of differentiation

for carriers that wish to set themselves apart from the crowd.
The service provider that develops the best blended offering, that adds the most
value, and that consumers and enterprise customers will pay the most money for
will some of the winners in the marketplace.
4.18 IMS and Advertising
Why Advertising? It’s the one thing that we see/hear everywhere, all the time
It’s a killer application for anytime, anywhere, any network, any device, and
service provider – it’s perfect for IMS.
IMS supports the three screen strategy for advertising: TV, mobile, PC through
use of value added service capabilities including location, presence and identity.
Interactive and IPTV are early drivers for advertising supported by IMS.
5 IMS Application Introduction Strategy
Mind Commerce has considered the breadth of the scope of changes that IMS
eventually will drive into the network and all the supporting billing, provisioning
and maintenance systems. Ultimately, the network changes are dramatic and the
architecture will allow for a lower cost structure for the carrier but between now
and then there will be temporary and hybrid solutions at all levels of the network.
The below table identifies some major areas of the network where the
implementation of IMS functionality will emerge gradually.
Early Introduction Expansion of IMS Full Deployment
No SIP presence in the Appearance of Gateways Full SIP interfaces with IP

Transport Plane. for Signaling (SS7-SIP), network nodes.
Transport
Autonomous, Switching (Circuit Switch) Full emulation of PSTN
Plane and Bridging Gateways.
independent inter-working through TISPAN.
platforms. Some QoS management Full QoS Management end-
No QoS management. within each network. to-end across multiple
networks.
Present HLR functions in Migration from HLR to HSS Full HSS functionality in
wireless networks. in wireless networks. both wireless and wireline
Control Plane
No HSS functions for Early adoption of HSS and possibly some
wireline networks. functions for wireline. integrated HSS across both
Still SS7 network control. Introduction of Presence networks.
information in HSS. Presence and Location
Some SIP applications. functions available in HSS.
All SIP control signaling.
rd
No third-party Some third-party 3 party apps are common.
applications. applications. Multi-network services.
Services Plane
No integrated billing and Some introduction of new Provisioning and OSS
support systems. provisioning and OSS. systems are consolidated
Single network Legacy Billing systems. to interface standards.
applications. Multiple OSS systems. Billing systems migrate to
Early trial of multi-network IMS interfaces.
applications.
Early convergence services must also start out simple and fit within the confines
of the network capabilities. Single network services will dominate for wireless
providers who will target multimedia applications as the initial step towards
improving revenue. It is the wireline providers who will make the first step to
providing a cross-network service offering in order to add some basic mobility
functions.
Service providers must carefully watch how the marketplace signals acceptance of
these new services. Once some early concepts are trialed, it is wise to let the
market acceptance drive the direction of feature deployment. Partnerships between
carriers and device manufacturers are needed to coordinate the priority of features
that require handset software clients, SIP compatibility, QoS functionality and
other functions that divide between the network and the device. Many services
will simply stay as they are for a time. Email is the major enterprise data
application on mobile networks today. As a simple data application that is not very
bandwidth or QoS demanding, it can continue as a strong money-maker and even
expand to more general consumer use with a simple handset client. Similarly,
SMS text messaging is a quick application that is not likely to be a high priority
for overhaul.
Stage 1: Price bundling of existing services:

- package pricing of network functions that are still
autonomous
- service providers will bundle services into trial feature sets
rather than gaining greater value by truly integrating the
services
Stage 2: Combination of simple related functions into a common

handset:
- without the IMS network architecture to deliver an integrated
solution
- example: a handset that connects for voice and data over 3G
wireless networks as well as with WLAN WiFi networks
- provides voice and data functions but not end-to-end
multimedia.
Stage 3: Network elements converge around the IMS standard

model:
- Supports broadband multimedia functions end-to-end along
with multimedia handsets
Stage 4: Across the network boundaries:

- Integrate wireless and wireline networks to share core
network nodes and IMS platforms. Business reasons may
limit or preclude this stage.
6 IMS Market Survey: Disposition of IMS
6.3 IMS Market Survey

In total, 137 phone interviews were conducted with operators and suppliers around
the world. The interviews consisted of a set of twenty questions, designed to
gather both hard and soft data. That is specific technical and commercial issues,
as well as perceptions because both hard and soft data influence decision making.
The results of this survey are provided in this report.
For the sake of transparency in this analysis, a notable interviewee exception is

Ericsson which would only provide public domain information. Ericsson’s public
relations department would not allow any interviews. It is unclear why they need
such control over information; this was in stark contrast to the openness of the rest
of the industry.
The split between operators and suppliers interviewed is illustrated below. The
bulk of the interviewees were operators. An objective of this report is to help
guide operators in defining their IMS strategy, hence gathering a broad set of data
around operators’ opinions and experiences enables reasonable quantification of
opinions at the level of the general market, region and operator-type. The bias of
the interviews also reflects the fact there are many more operators (750+) than
suppliers (5 global Network Equipment Providers (NEP)).
Suppliers
26%
Operators
74%
6.3.3 Operator Interviewee Analysis
The geographic distribution in Operators interviewed is indicated in the below

chart. Given the diversity of operator situations, the interview process attempted
to provide as broad and representative a geographic coverage as possible. A
notable feature in the operator interviews was many operators thought other
regions where more advanced in the deployment of IMS than their own. A finding
that will be explored in more detail later is North America has the broadest
deployments and that situation is likely to remain for several years due to specific
market factors that will be discussed later.
Americas
24%
APAC
38%
EMEA
38%
The split between operator types interviewed is indicated below, the definitions
used are:
Converged: within a country of operation having both fixed and
mobile operations;
Fixed only: for example broadband ISPs (Internet Service Providers)
Mobile only: within the country of operation.
If an operator is planning to launch a mobile offer to its existing fixed line

business they are considered a converged operator for this analysis because it
impacts their decision making and business case around IMS. For example, a
cable operator that is planning a mobile operation is considered a converged
operator in this analysis.
Mobile only
39%
Converged
49%
Fixed only
12%
The next chart provides the distribution of Operators interviewed by role. The aim
was to gather a representative mix of roles across the organization. This was done
to uncover any differences in opinions based upon role within an operator or
uncover intra-organizational factors. There is a slight bias towards the technology
office, in part because they are the group responsible for assessing IMS so in some
cases only the technology office was prepared to offer time for an interview.
IT
20% Technology
Office
33%
Network
Engineering
22%
Marketing
25%
6.3.4 Supplier Interviewee Analysis
The next chart illustrates the geographic distribution of the suppliers interviewed.
Global refers to supplier interviewees whose scope is across all markets, e.g.
global marketing. While some of those interviewed also are focused upon a
specific geography. This was captured to determine any regional differences in
suppliers’ opinions. APAC refers to Asia Pacific; and EMEA to Europe, Middle
East and Africa.
APAC
22%
Global
38%
EMEA
22%
Americas
18%
The next chart illustrates the distribution of interviewee roles. Again the objective
was to achieve a representative scope across the supplier organization to see if
there were any organizational differences. For example, marketing’s role is to
generate demand, so they will have a view slightly different to that of the
technology office or account management.
Copyright 2008 - 2010 Mind Commerce (www.MindCommerce.com) All Rights Reserved Page 100 of
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Sales /
Account
Management
23%
Technology
Office
44%
Marketing
33%
The next chart illustrates the distribution of supplier interviewees by company

type: NEP (Network Equipment Provider, e.g. Ericsson or Huawei), network
component supplier (e.g. service broker or SBC (Session Border Controller), e.g.
AppTrigger), BOSS (Business and operations Support Systems, e.g. Amdocs),
device/edge component software supplier (e.g. mobile device or femtocell
gateway).
Device/Edge
component
19%
NEP
43%
BOSS
19%
Network
component
19%
6.3.5 Survey Results

This section presents the market research findings. The below figure illustrates
the status of operator IMS activities.
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Note the percentages shown can not be extrapolated to the general market, because
by the nature of the interview process, i.e. operators being willing to give their
time, the bias is to those operators active or considering IMS. Though with that
said, 95% of the operators approached were willing to be interviewed; only 5%
responded that they either had no IMS plans so would not interview or were not
prepared to discuss their IMS plans.
IMS is deployed in 8 operators interviewed, out of the 101 interviewed, with the
majority of those being converged operators. The main driver for a converged
operator is the opex gains as the IMS core can be shared across the fixed, mobile
and broadband access networks in support of VoIP services. The criteria for an
operator to be in this category is live commercial services are being migrated onto
the platform.
The second category, extended field trial, of which there are 12 operators in this
category that is differentiated by the fact service migration has not yet started.
Specific services have been launched on the IMS core, with in some cases paying
customers; but a decision has not yet been made to commit to service migration.
As a result the IMS platform essentially remains a silo; for example several mobile
operators have used IMS with their FMC (Fixed Mobile Convergence) voice
service, but do not see a business case for migrating other services onto IMS. In
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this category converged operators still dominate. In about half the operators
anticipated moving towards deployment, but the timing was uncertain.
The third category of lab trial refers to an IMS platform being evaluated within a
lab, generally by the technology office of an operator, 36% of operators
interviewed were in this category. It is interesting to note that roughly half the
operators in this category received their IMS platform for free as either an
evaluation system, or as part of another deal; for example several operators had
recently made a softswitch order, and an IMS platform was bundled in that deal.
Roughly 80% of the operators in this category were unsure about when they would
move towards deployment.
Finally, the largest category is “watching and waiting,” accounting for 44% of
operators interviewed. That is, there is no IMS platform under active evaluation;
though there may have been such an evaluation in the past. The operator does not
see the business case for deploying IMS, and hence is continuing business as
usual. Once the business case becomes clear they would make the move. The
majority of mobile operators are in this category.
Within this ‘watching and waiting’ category is a group of operators who

questioned whether IMS in its current form would be relevant when they finally
consider deployment; for example several brought up ideas such as hosted IMS.
We’ll consider this in a later chapter.
Given the limited data set for deployments it’s difficult to draw any geographic
trends, but North America would appear to be leading in deployments and planned
deployments. Some of the market factors considered to be the main driver for this
situation are:
Converged operators are in the process of consolidating their

broadband, mobile and legacy core networks / operations;
End of life softswitch infrastructure, and NEPs offering core IMS

platforms at comparable prices;
Converged operators dependence on end-of-life CDMA which leads

to the early adoption of LTE (Long Term Evolution) and the need to
support VoIP support over DORA (EVDO (EVolution Data Only)
RevA) to understand the implications of mobile VoIP, to enable LTE
to adequately support VoIP; and
Relatively uncompetitive market with higher than average margins

which enables strategic technology decisions to be taken, that in
more competitive markets would be difficult to justify.
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7 IMS Solution Analysis: IMS and WiMAX
In this section, Mind Commerce evaluates the prospects of IMS and WiMAX.
More specifically, we evaluate the evolution of WiMAX as Mobile IP Multimedia
Services for corporations and focus on developing answers to the following
questions:
(a) What were the factors that affected the original vision & mission of WiFi
systems in corporate markets for mission critical applications like IP
Multimedia Services?
(b) What should be the positioning of IP Multimedia Subsystem (IMS) for
corporates?
(c) What should the positioning of WiMAX for IP Multimedia Services for
corporates? Should 3G enter into this market?
(d) Can WiMAX deliver against the expectations of corporate IT Managers
that were left unfulfilled by WiFi solutions?
(e) Will the world witness a technology war between WiMAX, 3G and 4G
with respect to IP Multimedia services?
(f) What should the service providers keep in mind when targeting end
customers and the corporate decision makers keep in mind when choosing
services?
The research is focused more specifically on the following broad market
segments:
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(a) Individual customers retail
(b) Individual customers corporate
(c) Corporate engagements for mass users – LAN
(d) Corporate engagements for mass users – WAN
These segments can be viewed relative to the specific applications and use cases
as per the below diagram:
Based on interviews conducted with a variety of service providers, infrastructure
and software providers, we have developed the following results:
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S.
Category of Response Results
No.
1 Expectations from (a) High performance QoS and Security Guarantee

WiMAX and other (b) Investment protection in those equipment that have
wireless technologies been deployed in past five years (to the maximum
possible extent)
(c) Serviceability, Maintainability and high uptime
(d) Scalable to the extent that the roadmap forecast can
be met
(e) Long term OEM commitment
(f) Long term service provider commitment
(g) Easy to learn (configurations and management)
(h) Availability of maintenance experts to be hired on
rolls or on contractual basis
(i) Availability of equipment & spares from total
solution perspective
(j) Cost effective
(k) Excellent multimedia performance
(l) lower issues compared to previous wireless
technologies
(m) Support of old as well as new IP multimedia
standards
2 Expectations from (a) Provision of low cost expansion cards in the
OEM that are existing core systems (such that the core network
manufacturing components need not be replaced)
equipment supporting (b) Old and new technologies can co-exist
the wireless (c) Minimum disruption to existing “business as usual”
183
S.
No.
technologies services during deployment

(d) Transparent future strategy in supporting the
technology
(e) Long term vision & strategy towards the technology
(f) Long term support & spares commitment
(g) Cost effectiveness
(h) Off the shelve stocks
(i) Eager to support incremental expansions at customer
premises
(j) Signing SLAs of technology performance as well
3 Expectations from (a) Premium Internet connectivity on WiMAX in 1:1
Internet Service mode for their offices where OFC over MUX is
Providers currently not feasible.
(b) Keep corporate fixed broadband and retail fixed
broadband services segregated from each other
(c) Mobile WiMAX connectivity for laptop users using
USB based smart cards
(d) Mobile WiMAX services of corporate employees
operating at different channels than retail mobile
WiMAX services.
(e) Committed Information Rate and QoS for corporate
customers
(f) Security at physical and data link layers
(g) Cheaper tariff against OFC based Internet
connectivity
(h) High availability (99.99%) for Internet enabled over
WiMAX (currently no IT Manager prefers to web
enable servers over WiFi connectivity to Internet)
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S.
No.
(i) Seamless operations of existing corporate

multimedia applications on fixed WiMAX based
connectivity with good quality video & voice over IP.
(j) Introduction of multimedia services for users on the
move availing mobile WiMAX connections.
4 Expectations from (a) Premium mobile connectivity for corporate
Telecom Operators connections with committed QoS.
(b) Keep corporate mobile services and retail mobile
services segregated from each other.
(c) Integration of their IP multimedia services (IMS
framework) with the internal corporate multimedia
services – like three people video conferencing on
internal network can pull a fourth person at the airport
in the conference via mobile handset.
(d) Offer services that can be used on Laptops as well
(like IMS applications deployable on multimedia
enabled laptops)
(e) Security at physical and data link layers
(f) Clarify on services transition path from existing
mobile applications to IMS – like Blackberry to IMS,
POP3/IMAP E-Mail connectivity to IMS, existing
MMS based applications to IMS, etc.
5 Proposed Roadmap for (a) IT Managers wish to study researches & reports
adopting WiMAX for related to WiMAX services evolving in their respective
IP Multimedia services localities (street, township, city or region).
(b) They expect OEMs like Cisco, Alcatel-Lucent &
Motorola to organize presentations/seminars on
WiMAX equipment & applications in their cities.
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S.
No.
(c) They expect vendors of existing multimedia

applications (like IBM Sametime and Microsoft Office
Communications Server) to clarify their strategy on
optimising application performance on WiMAX
services (like how H.264 can be introduced in existing
corporate multimedia implementations).
(d) They expect WiMAX systems integrators to
evaluate their existing networks and advice how new
WiMAX equipment can be deployed on their network.
(e) They expect WiMAX to be deployed as a backup to
all their current OFC and Copper based last mile
connections to Internet and OFC/Copper based
campus/metropolitan area connections.
(f) They expect Telecom operators to help them
understand the applications that they offer through IMS
framework
(g) They expect a number of third party application
developers to produce application services on these
new networking solutions.
(h) They want to consultants to study and document
and five year roadmap of WiMAX based services for
their corporates.
(i) They expect Infrastructure Management companies
to offer outsourcing solutions with defined services and
SLAs for WiMAX based networks
(j) They want premium SLAs (like 24 X 7 X 365 with
one hour response and four hour resolution times) for
WiMAX installations. Also they want service providers
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S.
No.
to take written accountability of QoS and security.

6 Comments on IP (a) Most IT Managers do not understand the value
Multimedia Subsystem addition of IMS given that the existing documentation
adoption only cover block diagrams with abbreviations and high
level descriptions. They are expecting equipment &
component level configurations which they can
integrate in their IT strategy.
(b) Almost all IT Managers feel that IMS has helped
telecom operators to build their own IP multimedia
infrastructures. IMS is not yet commercialized to the
extent that corporates can implement it as a part of their
internal communications infrastructure.
(c) IT Managers wish to understand the roadmap of
migration from AVVID to IMS if at all it is not
focussed only for mobile communications with services
on handsets only.
(d)
7 Security concerns in (a) Is WiMAX competent to address the security
mind concerns of WiFi?
(b) Has session hijacking been taken care of by
WiMAX?
(c) How will WiMAX take care of DOS attacks?
(d) If WiMAX is able to adapt 3DES and AES at MAC
layer, will VPNs be required on WiMAX links?
(e) Is IMS framework more secured than the traditional
IP multimedia implementations?
(f) Is SIP as secured as H.323?
8 QoS concerns in mind (a) Is WiMAX QoS better than 802.11e?
183
S.
No.
(b) How will QoS configured by the service providers

to ensure guaranteed service levels & availability of
services to corporate customers in fixed wireless
connections?
(c) How will QoS be configured by service providers in
mobile WiMAX services for corporate customers? Can
they implement dedicated channels for corporate
customers if appropriate costs are paid?
9 How much are they (a) The respondents feel that Corporate Internet
ready to pay? Broadband over WiMAX should be slightly lower than
OFC based broadband but not as low as copper based
broadband connections.
(b) The IT Managers are more comfortable with
consolidated payments rather than per user payments.
Hence, if $200 per month per user is agreed for
corporate connections the respondents would prefer to
pay $20000 per month as consolidated fees rather than
paying per user. This should be in such a way that they
should have flexibility to allocate mobile broadband
services to their employees following an internal
process and should be able to withdraw & reallocate if
employees leave the company.
(c) The respondents feel that premiums can be paid if
the mobile users enjoy committed service levels when
they move across the city, country or region.
(d) The respondents feel that Internet connections over
mobile WiMAX with fixed LAN & WAN subnet
allocations of public IP addresses would result in
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S.
No.
wonderful innovations – like software demonstrations

while on move. There are services like Teamviewer
commercially available for such purposes but offer
good speed only in their native countries due to low
latency guarantees.
10 What service catalogue (a) If mobile WiMAX for corporate users becomes a
do they plan to offer to reality, the IP conferencing services like IBM
the end users? Sametime, WebEx and Go to Meeting can be extended
to people on move carrying light weight laptops or
pocket PCs.
(b) Fixed line WiMAX connectivity will enable
extension of IP multimedia services to remote offices,
manufacturing plants, storage bays, construction sites,
etc. where wired broadband was not feasible.
(c) Few respondents were from the construction
industry. They are keen to explore possibilities of
remote video surveillance of the construction sites
whereby the site in-charge shall move around the site
with a camera in hand and the top management/board at
the head office can see the status of construction in real
time.
(d) Sharing of heavy duty graphics files (like 3DS Max
and AutoCad 3D) to people over fixed and mobile
WiMAX connectivity over Citrix or such other
presentation services is expected to be a major
revolution from the perspective of some respondents.
The current practice is that the participants of the
conference download files from an FTP server and
183
S.
No.
open them locally when the conference is ON. This

method may lead to Intellectual Property breaches
because the entire source files are shared with the
participants. Respondents are expecting WiMAX to
solve this issue.
(e) Some respondents feel that remote infrastructure
management may become easier by virtue of backhauls
from data centres to the vendors taking care of
monitoring of components. The current practice is to
have dedicated OFC pairs as backhauls which are very
expensive. Backhauls over Internet are highly risky and
hence not preferred for critical infrastructure
monitoring.
(f) Other applications that can be launched for users are
– TSWeb (Microsoft Terminal Services on the Web),
Video Streaming, Web based ERP, CRM, Business
Workflows and Collaboration applications, Instant
Messaging, On-Line Learning & Knowledge
Management with interactive multimedia, Intranets,
Extranets, etc. However, security is the biggest concern
and hence they should be launched only if WiMAX
security is as robust as it is talked about.
11 Are they excited about Yes, almost all respondents were excited about
WiMAX? WiMAX because they know the benefits of wireless
multimedia connectivity but couldn’t implement many
business applications in the past due to security & QoS
issues. They are looking forward to get their problems
solved by WiMAX.
183
S.
No.
12 Are they excited about Well, not really because most of them have not
IP multimedia understood this system in its totality. IMS seems to be
Subsystem on still the choice of academicians, telecom operators and
Wireless? researchers that love to write about it. But when the
same is studied by IT strategists in corporates, they are
not able to correlate its integration with existing
services framework – which comprises of many IMS
like services (like, Cisco Call Manager). This gap can
be filled only by OEMs like Cisco and Motorola that
have enjoyed substantial influence on the IT strategies
of the end customers. The outcome is that Cisco &
Motorola need to publish more in depth technical white
papers to enable IT strategists to understand IMS better.
The expectations from corporate IT & Telecom decision makers are very
clear. They want the industry to serve their needs through a systematic approach as
presented in the figure below:
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The above approaches require multiple agents to serve the customer needs:
(a) Migration Consultants
183
(b) Systems Integrators
(c) Equipment Stockists
(d) OEMs
(e) Infrastructure management services companies
(f) Service Providers
Further investigation and interviews have uncovered, as expected, that industry

participants are counting on the IMS framework as positioned on LTE (4G) rather
than WiMAX.
To help answer the notion of IMS and WiMAX, Mind Commerce has engaged in
extensive research, including analysis of many factors such as spectrum, licensing,
and standards evolution.
LTE vs. WIMAX SPECTRUM LANDSCAPE FACE- OFF
LTE WiMAX
Spectrum More bands, many that aren’t Fewer bands around the world,
availability being targeted by WiMAX. only two just for WiMAX.
LTE 7: WiMAX 3
Advantage LTE
Channel sizes / More flexibility, but more Simpler conf igurations, but more
duplexing complexity due to constrained.
permutations.
LTE 5: WiMAX 5
Advantage equal
Prioritization of Targeting traditional cellular Two key WiMAX bands are also
bands bands and WiMAX bands. prime LTE targets.
LTE 7: WiMAX 3
Advantage LTE
Licensing Smaller number of larger Larger number of smaller

regimes operators with revenues. operators, many without
revenue streams.
LTE 7: WiMAX 3
Advantage LTE
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Licensing Majority of licensing complete, Much new licensing, although
landscape with exception of new bands; LTE can target new bands also;
changes in licensing conditions changes in licensing conditions
negligible. favorable but not major.
LTE 4: WiMAX 6
Advantage WiMAX
SUMMARY LTE: 30 points WiMAX: 20 points
The winner with regard to the spectrum licensing landscape: LTE
Spectrum/Licensing
Standards Evolution
Taking everything into account, we believe that LTE has the clear lead in terms of
traction and social capital within the carrier community.
Furthermore, Mind Commerce research has asserted that WiMAX has two major
routes forward. The first is as a niche application, primarily in emerging nations or
as a small-scale data overlay in developed nations. The second route is for
WiMAX to be combined into the LTE standard, which would provide the LTE
world with its intellectual property, helping the LTE market emulate the more
open nature of the WiMAX market.
The latter is obviously not going to happen. We therefore assert that WiMAX will
indeed be primarily an overlay solution in developed nations.
Accordingly, IMS and LTE will be the 4G solution of choice for most ever service
provider, with perhaps the few exceptions such as Sprint Nextel in the United
States.
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8 IMS and Service Delivery Platforms (SDP)
Adoption of IMS involves a quantum leap in terms of technologies, business

processes and partner relationships. Again, there are apprehensions about the
readiness of IMS components in terms of their fidelity with the promised IMS
features. These apprehensions, coupled with the promises have built a tantalizing
suspense around IMS. The fact is that, the progression of time has done nothing to
diminish this suspense. Unfortunately this suspense does not augur well for the
market at large. The market is witnessing an overnight transformation of existing
product lines of telco vendors to IMS-ready or IMS-compatible ones. Such
developments fuel doubts and apprehensions in the minds of telcos about the real
efficacy of IMS.
Over the last 3-4 years, telcos have been on the lookout for a foundation that can
allow them to freely pick and choose the services they want – the Service Delivery
Platform (SDP). The SDP interfaces with the network elements, OSS/BSS, telco
IT infrastructure and partners such as application developers and content
providers.
SDPs can be loosely defined as a standards based framework that facilitates the
design, development, implementation and management of services required to run
the operations of network services providers. The services could range from the
basic voice connectivity to the state-of-the-art rich multimedia services. The most
critical value-addition offered by the SDP methodology lies in its ability to
abstract controlling parameters such as location, media control, integration and
others.
The SDP interfaces with the following entities:
End users
Network elements
OSS and BSS
Content creation ecosystem
Services creation ecosystem
Consequently, the SDP must by-and-large contain the following components:
Service Creation Environment (SCE): As the basic aim of SDP is to

facilitate service development, it is unsurprising that the SCE finds a
prominent place in the scheme of things. As the name suggests, the SCE
provides the environment for development of services that differ in
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complexity and architectural design. The services could range from simple
plug-ins to complicated metadata driven application modeling.
Service Execution Environment including functions such as Media Control

and Presence/Location. Rich multimedia applications find location and
presence as the key contexts to deliver customized services to the customer.
For example, various Points of Interest (POI) such as cinemas, shopping
attractions can be dynamically presented to the user based on the physical
location of the user. The advent of SIP for Instant Messaging and Presence
Leveraging Extensions (SIMPLE) is driving presence architecture
developments such as client-server models.
Service Integration: Integrating the SDP with the network infrastructure,

partners and telco back-end forms the brief of the integration component.
SOA is the preferred SDP integration methodology.
8.3 Evolution of SDP
There are several reasons that can be attributed to the evolution of SDPs. In the
early years of the twenty first century, the telecom vendor and service provider
industry underwent a slowdown that had far-reaching impact on the way the
stakeholders thought about their business. The stakeholders became increasingly
conscious about saving their investments. At the same time, revenues from
traditional voice-only services were diminishing. So the push towards diverse
applications to enhance bottom-lines was being built-up incrementally. To address
the requirement of cost effectively integrate diverse services at various levels of
maturity and varied degrees of infrastructure sophistication, the telecom industry
chose to take the path of building Application Servers. Application Servers were
adopted first by the software industry as a middle path between extreme
arrangements such as centralized intelligence with dumb terminals and distributed
intelligence with resource-intensive clients. In the telecom domain, Application
Servers relieve the ever-loaded communication signal processing infrastructure by

handling the logic and functionality for individual applications. Application
Servers based on the combination of the Java programming language, Java 2
Engineering Environment (J2EE) and the TCP/IP protocol combination provided
numerous avenues to build open, standardized, scalable and flexible systems. The
Application Server was the first step towards relieving the telecom infrastructure
off the grip of rigid, proprietary solutions. The acceptance of Application Servers
was bolstered by the rapid acceptance of mainly the Session Initiation Protocol
(SIP) and Voice over IP (VoIP) technologies.
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It is interesting to note that IMS is almost entirely driven by Application Servers,
which form the bedrock of SDPs as well. Thus IMS and SDP are synergistic to an
extent.
The legendary i-mode from the Japanese telco NTT DoCoMo is widely regarded
as the first SDP.
8.4 Benefits of SDP
While SDPs continue to add to the already complex labyrinth of emerging

networking technologies, it is worthwhile relaxing from the skepticism and look at
SDPs pragmatically.
The most effective selling point of SDPs is that they provide a logical
forward path. No longer are the stakeholders advised to abandon everything
and chase the newest technologies on the block. They can protect their
investments in old technologies and yet be updated in terms of new
technologies. The SDPs achieve the seamless co-existence of the old and
the new by abstracting the controlling parameters. Thus services can be
deployed and discontinued seamlessly.
SDPs also provide an integrated platform for service creation, fulfillment
and management processes and standardize the interfaces in an open
architecture.
Source: Accenture
SDPs can be useful in either building a new network or metamorphosing an

existing network. The universal appeal of this approach ensures a wider
acceptability for the SDPs. The design of a delivery platform is more
challenging in case of the latter scenario. SDP tackles this challenge by
falling back on SOA concepts that decouple the services from the access
mechanisms and as a result, abstract business processes successfully.
SDPs facilitate the marriage of the inherent strength of telcos such as the
ability to provide mobility, messaging, location, call control with the new-
age Internet services such as online search, POI, social networking to
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provide the desired level of personalization. This combination enables the
telcos to compete with Internet experts such as Yahoo and Google. It also
opens up new revenue and sales channels for the telcos. Additionally SDPs
facilitate the spawning of a developer ecosystem that can continually churn
out applications with high potential for healthier profitability performance
as compared to the traditional voice services.
Most SDP vendors build their platforms on the concept of enablers.
Enablers are layered architectural constructs that aim at masking the
underlying technology from the API that the application developers and
requesting services interact with. The purchase of this fact is that the
interactions of the services remain unaffected even in cases where the
underlying technology of any of these services undergoes migrations or
upgrades. Thus SDPs ensure that business continuity is restored on all
occasions.
Going back to SOA concepts, SDPs employ service brokers, analogous to
SOA registries. Service brokers facilitate the choice of appropriate services
for requesting applications. Thus SDPs optimize the usage of system and
network resources.
Customer acquisition and customer retention are the biggest challenges
faced by telcos. In the era of number portability and increased competition,
it has become easier for customers to switch service providers. Successful
customer acquisition requires thorough understanding of the customer
expectations and requirements that are unmet by the current service
provider while successful customer retention demands a continual
assessment of the customer’s level of satisfaction. SDPs can customize
services to a very high level of personalization as they present a unified
customer view cutting across networks and services.
The extensive diversity in service and the enormous amount of content
delivered to the customers makes it necessary for the telco to work closely
with the integrators, application developers, content providers and other
partners. These stakeholders should be able to have deep visibility into the
telco architecture. Similarly, the telco and the partner ecosystem should be
able to develop applications customized to their requirements. SDPs offer
the partners the necessary support to design, develop, commission, manage
and decommission customized services and applications. This is in addition
to the in-built suite of enablers that the SDPs provide.
SDPs facilitate efficient operation for diverse service provider – content
owner agreements for revenue sharing ranging from the specifics of sharing
proportion for varied content to determining the level of control exercised
by either party over the end-user experience. As the SDPs significantly
reduce the time-to-market, the involved parties have flexibility in
redefining their arrangements in context of their business interests.
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SDPs allow the operators to roll-out services faster and monetize them for
longer durations. In context of services, the longer the monetization period,
the more profitable the operations.
The key benefit for the operator and the consumer facilitated by the SDPs is
the facility of a single sign-on. In a departure from different sign-on
mechanisms for different services, a single sign-on seamlessly manages the
Authorization Authentication and Accounting (AAA) for multiple services.
The value of the sign is significant, especially in the context of the
multitude of services that the operator can engage the subscriber in. A
cumbersome signing in process can be a deterrent for the user from
experiencing the service provider offerings, especially while compared with
the superior sign-in facilities available for Internet based services.
8.5 Revenue Forecast for SDP
Mind Commerce forecasts that revenues from the sale of SDP solutions will
increase from USD 5530 million in 2010 to USD 18454.8 million in the year
2016, at an impressive CAGR of 22.2%.
9 IMS and the Emerging VNO Business Model
The emergence of convergence and new IMS technologies will shape and reshape
the strategies of industry participants across the mobile and fixed-line industries.
Due to the flexibility of the technology and shifting trends on customer behavior,
one type of market player in particular, the Virtual Network Operator or VNO, is
developing as an interesting business model. As a result of many shifting market
influences, the presence of these VNOs will lead to new battles for control of the
mobile customer.
Reselling is nothing new. Virtual Network Operators are the most recent step in
the evolution of the wholesale element in the wireless industry. The progression of
this class of operator in the mobile space has evolved over the years once network
coverage became national and national brand names have entered the space. Some
elementary data content has also been made available in the latest offerings.
The below table compares some of the main traits marking the advancement of
Resellers and MVNOs with the trends for future VNO operators:
Mobile Reseller Mobile Virtual Virtual Network

Network Operator -
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MVNO Operator - VNO
1990’s 2000’s 2011 and beyond
Geographic Scope Regional National National
Business Model Wholesale purchase Wholesale purchase Driven by technology
of discounted bulk of discount bulk MOU that offers
MOU capacity; resell capacity; usually personalized services,
consumer voice targeted to promote a more feature rich
usage; profit on national presence content across
higher consumer with an already multiple networks and
margins established Brand multimedia.
Name. Wireless
offering is integrated
with other Brand
Name distribution.
Examples: Disney,
ESPN
Customer Reseller controlled MVNO owns the Greater ownership of
Ownership wireless number, customer relationship the customer with the
billing, customer care, through marketing, mobile carrier more in
and marketing billing and customer the role of an
care functions, some outsourced vendor for
of which are the access network
outsourced. Local function. Wireless
Number Portability number ownership
(LNP) reduces shifting away from
carrier’s hold. mobile carriers to 3rd
party administrators.
Features Reseller completely Voice features are Overlap between
dependent on host dependent on host mobile and internet
carrier for all features carrier; also some networks for web and
and services (almost superficial data streaming content;
exclusively voice and content links to other same content
voice mail). Brand-related web delivered across
content. multiple devices and
multiple networks.
Other Offerings Bundled offerings with Cross marketing of IMS platforms which
other messaging other Brand Name provide personalized
services, i.e. paging content or products. services and
interaction between
services, including
presence and location-
based services.
More expanded wireless business models for VNOs are being developed that can
be tightly integrated to an overall content distribution and brand strategy and
targeted at customers across multiple networks.
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The balance is shifting away from the mobile network being the focus of the business
plan to a model where mobile networks are just one element of a broader media
distribution strategy, which is likely to span across multiple networks – mobile, internet
and video.
As networks overlap, so does the overlap in customer relationships. Mobile

carriers must realize that their customers are also on-line customers of services
that may be distributed across other networks. A simple example is a mobile
subscriber who also subscribes to MLB.TV, major league baseball’s internet-
based streaming video service offering live or archived baseball to out-of-market
locations. The mobile customer can also subscribe to MLB Mobile for streaming
audio and text message alerts in addition to the fixed-network MLB.TV offerings.
As a mobile carrier, the marketing focus has historically only been on the content
that is passed directly over the mobile network. As a VNO, the focus can be on the
total suite of content and the customer relationship can extend across both mobile
and fixed-line networks. From the point of view of the customer, the relationship
they are looking for may be an MLB “media bundle” including both the MLB.TV
and MLB Mobile services regardless of the network.
Positioned another way, where the present MVNO model has been developed to
say “Your mobile service offers you CNN headlines on your mobile”, the VNOs
will develop the service model that might say “Your on-line CNN subscription
now reaches you through both your mobile and the Internet”. Taken one step
further, consider the model where the customer is owned by CNN and not by the
mobile carrier.
The Potential of the VNO Model:

Here’s Today’s Hype – The View of Tomorrow’s Opportunity:
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IMS technology, in its future developed state, can cut across network lines and
aggregate media content in multiple forms, with service offerings that combine
text, information, video and multimedia. The VNO can then establish distribution
channels through several networks to reach customers through whichever network
forms the most economic and efficient medium to deliver the content where and
when needed. Since the key driver is customer choice, the VNO must be
positioned to respond to their choice of device, choice of location, and choice of
time.
Convergence of wireless and wireline networks is a key enabler of this VNO

model. Access from one device across multiple WLAN and 3G networks provides
ubiquity of access to reach content in any wireless environment. Executing this
convergence introduces several prerequisites of IMS networks, namely SIP
(Session Initiation Protocols) and QoS (Quality of Service) standards.
Major brand-name VNO’s will look less like mobile operators and more like an
extension of their overall brand distribution; providing their content in a flexible,
personalized manner, wherever the customer is and whenever they want. This
means that the most efficient network for delivering content may not be available
at the exact time that the customer wants it. The ability to scale or manipulate
content to adapt to whichever network must be used for this immediate customer
demand requires full adoption of QoS standards as well as uniform mapping of
those QoS standards across wireless and fixed networks. Further, VNO’s must be
positioned to have their content readily accessible in formats personalized to the
customer’s preferences. Third-party applications through IMS servers will provide
the adaptation services per session.
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The dynamic nature of delivering customized content across multiple networks is
what sets VNOs apart from current-generation MVNOs. Most mobile service
content today is independent from on-line content - even closely related on-line
content. Since the customer’s subscription is with the mobile carrier, the delivery
of content to their mobile is limited or restricted by the content the mobile
provider makes available.
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10 IMS Applications Stakeholder Landscape
This chapter deals with the vendor activities in IMS applications solutions domain.
IMS throws open the vendor domain to non-specialized players. As application
implementation solutions revolve predominantly around the presence of an
Application Server, which adheres to open standards; non-specialized vendors
have minimal entry barriers for foraying into IMS application development. As a
result, the vendor space for IMS applications is slated to get very crowded as IMS
components go main stream.
This report covers the activities of six key vendors. A summary of their expertise
and offerings is presented in Table 4-1.
Table 10-1: Vendor Expertise Summary

IMS enabled Application Solutions
Vendor Name offered
Unified Messaging, Location Based
Services, convergent network
Alcatel Lucent management center
Unified Messaging, Video on Demand,
Ericsson Video Call, Location Based Services
Unified Messaging, Location Based
Huawei Services
Core network elements and end to end
NSN offering
Messaging, Policy, Session and
Tekelec Subscriber Data Management
Core network elements and end to end
ZTE offering including terminals
10.3 Case Studies

This section covers activities of individual vendors in further detail. The following
aspects are included:
Contact details
Background
IMS initiatives
Key customers
Revenues
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10.3.1 Alcatel-Lucent
URL: http://www.alcatel-lucent.com/wps/portal
Ticker Symbol: ALU
HQ: Alcatel-Lucent, 54 rue la Boétie, 75008 Paris, France
10.3.1.1 Background
Alcatel-Lucent is a world-leading supplier of end-to-end solutions in fixed, mobile
and converged broadband access, carrier and enterprise IP technologies,
applications, and services.
Alcatel-Lucent is organized around three business groups and two geographic

regions.
The Carrier Business Group
The Enterprise Business Group
The Services Business Group
Alcatel-Lucent’s Bell Labs draws upon Lucent Technologies' Bell Labs and
Alcatel’s Research & Innovation organizations and is active in the areas of
multimedia, convergent services, new service delivery architectures, broadband
access, optical networking, network security as well as fundamental research in
areas such as nanotechnology, algorithmic and computer sciences
10.3.1.2 IMS related initiatives

IMS Application & Services division develops applications and converged
services, as well as subscriber data management products for networks that are
based on the IP-based IMS architecture. The Company's complete IMS package
(application and core network) is deployed in a variety of locations.
The company is focusing primarily on Rich Communications Suite (RCS) and

VoIP over LTE (VoLTE).
10.3.1.2.1 Convergent Network Management Center
The ALU Convergent Network Management Center (CMC) provides integrated

network management for next generation networks (NGNs), IP multimedia
subsystem (IMS) networks, PSTNs, signaling networks and any combination of
these. The ALU CMC consists of:
Network-wide access for NGN/IMS management from one terminal

Integrated network management for all network elements (NEs)
Provisioning functions across NEs
Measurement-data mediation and forwarding
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Interface for service provisioning and inventory data
Service-order interface for subscriber provisioning (XML based)
Central backup for all NEs
10.3.1.2.2 China Mobile
ALU recently signed a deal with China Mobile that covers, among other things,
their GSM and TD-SCDMA wireless networking solutions, transmission
equipment, IP routers and IP multimedia subsystem (IMS) platforms and
professional services. The deals consist of three framework agreements valued at
a total of 1.178 billion euro.
10.3.1.3 Customers
ALU has wide array of customers spanning all major regions.
10.3.1.4 Financial data

ALU recorded revenues of €15.157 billion in 2009.
10.3.2 Ericsson
URL : http://www.ericsson.com/
Ticker: ERIC
HQ: Telefonaktiebolaget LM Ericsson, Torshamnsgatan
23, Kista, 164 83 Stockholm, Sweden
(Ph) +46 8 719 00 00
(Fax) +46 8 18 40 85
10.3.2.1 Background
Ericsson provides communications networks and handset technology platforms.
It supplies the following products:
Cables and Interconnect

Core Networks
Enterprise Products
Microwave Networks
Mobile Broadband modules
Mobile Platforms
National Security
Public Safety Products
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Network Management Products
Optical Networks
Power Modules
Radio Access Network
Service Layer – Multimedia
Site Products
Wireline Access

Ericsson has been focusing on adding to its core IMS offerings with support
infrastructure including policy management. In 2009, Ericsson acquires Nortel’s
North American wireless business for $1.13B. This deal provided Ericsson with
a presence in every major North American wireless operator’s business and
portfolio that covers every major wireless network element from CDMA, GSM,
HSPA and LTE access and IP radio backhaul to IP multimedia subsystem (IMS)
and the 3G and 4G packet data cores.
10.3.2.2.1 Enriched Communications

Ericsson offers solutions for implementation of personalized services such as
ringback tones, video mail, PC client for video telephony, sending videos and
pictures while talking and PTT well as text, images, video and voice messaging
services.
10.3.2.3 Customers
Ericsson has customers in more than 175 countries. Some of its key customers are
the following:
Yoigo
Vodafone
T-Mobile
Telemig
Celtel

Ericsson recorded revenue of SEK 206.477 billion in 2009.
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10.3.3 Huawei
URL: http://www.huawei.com/
HQ: Huawei Technologies Co., Ltd., Bantian, Longgang District
Shenzhen 518129, P.R.China
Tel: 0086-755-28780808
10.3.3.1 Background
Huawei's is an emerging leader in the telecom infrastructure OEM category. Its
products and solutions include the following:
Wireless products (HSDPA/WCDMA/EDGE/ GPRS/GSM, CDMA2000

1xEV-DO/CDMA2000 1X, TD-SCDMA, WiMAX)
Core network products (IMS, Mobile Softswitch, NGN)
Network products (FTTx, xDSL, Optical, Routers, LAN Switch)
Applications and software (IN, mobile data service, BOSS)
Terminals (UMTS/CDMA)

Huawei's IMS solution is based on open and standard interfaces for core parts and
rich multimedia applications. Specific applications include the following:
10.3.3.2.1 M1 and ATCA Solution

Earlier this year, M1 Chose Huawei to provide its ATCA-based IMS solution.
Huawei' s IMS voice over broadband (VoBB) solution adopted a standard ATCA
platform. One ATCA frame is able to provide all of M1's requirements. As a
pioneer in global IMS applications, Huawei' s IMS solution is being adopted to
enable rapid development and delivery of differentiated IMS-enabled services by
leading operators worldwide, including CLP Group (Germany), EDF Group
(France), Telefonica, SFR (France), COX (USA), ETISALAT, STC (Saudi
Arabia), Vimpelcom (Russia), Telmex (Mexico), Telecom (Argentina), China
Mobile, China Telecom, TM (Malaysia), and WIND (Italy).
Huawei' has recently been awarded contracts in 19 provinces, including

Guangdong, Jiangsu and Zhejiang, serving more than 60% of China Mobile. Mr.
Peng Tao, president of IMS, Huawei, said: "As part of Huawei All-IP convergence
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strategy, the IMS is the simple solution to converge fixed and mobile networks to
support full service operations. It enables operators to quickly deliver multimedia
services to the market. Huawei keeps its customer-centric strategy and leveraged
its professional services capabilities to deliver a leading IMS solution that will
enable China Mobile to leverage its 3G network roll out."
10.3.3.3 Customers
Select customers for Huawei include the following:
Vodafone
Motorola
E-mobile
Leap Wireless
Optus
China Telecom
Emtel
Telfort
CAN TV
DT
FT
KPN
Telefonica

Huawei recorded revenue of CNY 149,059 million in 2009.
10.3.4 Nokia Siemens Networks (NSN)

Nokia Siemens Networks is the second largest telecommunications equipment
supplier in the world. Nokia Siemens Networks was created as the result of a joint
venture between Siemens's COM division (minus its Enterprise business unit) and
Nokia's Network Business Group.
10.3.4.1 Background
URL: http://www.nokiasiemensnetworks.com/
Nokia Siemens Networks

PO Box 1
FI-02022 Nokia Siemens Networks
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Visiting address:
Karaportti 3
02610 Espoo, Finland
Telephone +358 71 400 4000 (Finland)
Telephone +49 89 5159 01(Germany)
A leader in core IMS infrastructure, NSN is also known for its solutions in session
and subscriber control.
China Mobile recently selected Nokia Siemens Networks to implement its IMS
Core platform, hiQ MMTel application server and Session Border Controller
(SBC). According to sources, China Mobile’s corporate customers in Beijing,
Yunnan, Xinjiang, Jiangxi, Hunan and Fujian will utilize a wide range of IMS-
based applications including Multimedia Telephony (MMTel) on top of traditional
voice services across their fixed, mobile and Internet connections.
10.3.4.2.2 Telefónica O2 Germany
NSN also recently signed a deal with Telefónica O2 Germany to supply a pilot
LTE network in Halle, East Germany the network will go into operation by the
end of the year. NSN will deploy the complete LTE overlay network comprising
of Flexi Multiradio Base Stations and the Enhanced Packet Core (EPC) nodes
Flexi NG and Flexi NS. The network will provide broadband capacity and
coverage in Halle and its suburb Teutschenthal, an area where there is currently
limited broadband access.
10.3.4.3 Customers
NSN has wide array of customers spanning all major regions.
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10.3.4.4 Financial Data
NSN recorded € 12.574 billion in 2009
10.3.5 Tekelec
URL: http://www.tekelec.com/
Ticker: TKLC
HQ: 5200 Paramount Parkway, Morrisville, NC 27560 USA
Ph +1.888.628.5521, +1.919.460.5500
Fax +1.919.380.3862
10.3.5.1 Background
Tekelec is a provider of equipments and solutions that address end-to-end services

management requirements for telcos. It offers solutions for the following
requirements:
Signaling and Session Control

Number Portability
Flexible Routing
Messaging
Performance Management
Policy Management
Revenue Management
Service Creation

A notable recent product announcement is Tekelec’s new Diameter Signaling
Core, which supports signaling traffic growth in all-IP networks. “A full Diameter
ecosystem gives operators both the infrastructure and the intelligence to scale and
innovate by leveraging a common language with which the network
communicates,” said Ron de Lange, executive vice president, Global Product
Solutions at Tekelec. “The Diameter Signaling Router enables Tekelec to further
expand our footprint in Diameter deployments, building upon our success with the
Diameter-based Camiant policy management deployments.”
In addition, Tekelec’s Camiant Policy Management solution represents a key

component from an IMS OSS perspective in terms of the Policy and Charging
Rules Function (PCRF). The policy manager provides operators the ability to
manage network resources and subscribers’ services to lower costs and create new
revenue in support of data offerings. Tekelec claims that the solution will adapt to
any network environment by applying operator-defined rules that respond to
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changing network conditions in real time. The most common uses cases are fair
usage policies, congestion management, voice and video services, and data-tiering.
Prior to the acquisition and earlier this year, Camiant said it is deploying its
Multimedia Policy Engine platform as the PCRF (Policy and Charging Rules
Function) for Verizon Wireless’s LTE network. The platform will also perform
policy control functions to help VZW manage usage and access for all data, IMS-
and non-IMS-based services delivered over the new network. The platrom will
also support IMS services on Verizon's existing 3G network as part of the deal.
Tekelec offers solutions for the following IMS-enabled applications:
10.3.5.2.1 Messaging
Tekelec offers solutions for messaging in the following areas:
Rich Communication Suite

SMS in IMS/LTE Networks
10.3.5.2.2 Session Management
Tekelec offers solutions for session management in the following areas:
Blending Multiple IN Services

Blending SS7 and SIP Services
Centralized SIP Routing
Centralized/Integrated Diameter Monitoring
Core Centralized Diameter Routing
HSS Address Resolution
Inter-Operator LTE-to-LTE
Intra-Operator LTE-to-2G/3G Roaming
Optimal Roaming Voicemail Routing
Policy Management Load-balancing
SIP Mediation
SIP Number Portability (NP)
SIP Server Load Balancing
SIP Trunking
SIP-Network-to-Network Interface (NNI)
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10.3.5.2.3 Subscriber Data Management
Tekelec offers solutions for subscriber data management in the following areas:
Fixed Mobile Convergence (FMC)

Low-Cost Roaming
M2M Device Management
MVNO/MVNE
Next Generation Subscriber Management
Number Portability
Subscriber Data Management (SDM)
User Data Convergence (UDC)
10.3.5.2.4 Policy Management
Tekelec offers the following policy management solutions:
Application Specific Services

Bandwidth Control
Fixed Mobile Convergence (FMC)
IP Multimedia Subsystem (IMS)
Long Term Evolution (LTE)
Quota & EU Data Roaming Control
Tiering & Bandwidth on Demand
10.3.5.3 Customers
Some key customers of Tekelec have historically included the following:
Vodafone
Primus
Telstra
Optus
Cable and Wireless
Tekelec recorded third quarter 2010 revenues of USD 108.3 million
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10.3.6 ZTE
ZTE is a Chinese corporation that designs and manufactures telecommunications
equipment and systems and is a leading global provider of telecom equipment and
networking solutions operating in more than 140 countries, servicing 59 of the
world’s top 100 telecom operators. It offers a wide choice of products ranging
from voice, data, multimedia and wireless broadband services.
10.3.6.3 Background
URL: http://www.zte.com.cn/cn/
Marketing Centre, 3/F A Wing, ZTE Plaza

Keji Road South. Hi-Tech Industrial Park
Nanshan District
PRC-518057
China
10.3.6.4 IMS Initiatives
10.3.6.4.1 IMS Total Solution
At the heart of ZTE’s IMS offerings is its “IMS Total Solution”, which includes
core IMS network elements, service platform, OSS/BSS, and IMS client/terminals.
They position it as a full-convergence system with the unified core network,
converged user profile server, universal service platform and unified OSS/BSS.
10.3.6.4.2 zMILE Solution
The ZTE zMILE solution is a total IMS-based full-service solution, including IMS
core network, RCS-compliant APP, and the 7 inch touch-screen ZTE Light
multimedia tablet terminal with inbuilt an IMS client. Among other uses, ZTE is
positioning this IMS enabled tablet device as a replacement to traditional phones
for voice services.
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10.3.6.5 Financial Data
ZTE recorded second quarter 2010 revenues of USD 4.5 billion
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11 Network Operator Recommendations
In this section, Mind Commerce discusses some issues, challenges, and

recommendations for network operators with respect to IMS application rollout.
Starting with today’s network, keep initial implementations small and simple. Let
the market help drive the path of development. It’s not hard to dream up plenty of
enticing, flashy, unique feature ideas, but new services must be relevant to the
marketplace and hit the magic formula for timing, value, pricing, need and luck.
Features must deliver compelling value to the right market segment, with great
performance at the right price and at the right time.
IMS architecture introduces several new functions which require some adaptation
and integration into the existing business processes before more complex services
can be successfully introduced. Start with small, simple single-user services to
build up the necessary experience base to progress to more complex offerings.
Initial service offerings will not likely be fully IMS compliant from the start.
Phased implementation of IMS functions will focus on gaining maximum

utilization of existing network assets and will make use of existing provisioning
and billing platforms. Inter-working gateways will translate existing network
protocols into SIP rather than native SIP applications extending throughout the
network. There will be temporary and hybrid solutions at all levels of the
network.
One important thing to remember with the evolution of IMS is that the carrier’s
control of the customer is waning. The battle for the customer will greatly
intensify across non-traditional boundaries. There are many simultaneous trends
shaping the competitive landscape across each segment of telecom. Wireline
carriers are driven by shrinking revenues and displacement of their usage onto
other networks such as wireless. Wireless markets will have to adapt to the overlap
and migration to new broadband 4G networks and the shifting of voice usage to
those networks as well as larger volumes of data usage. Amidst these changes
Mind Commerce believes the most critical battle that will emerge will be for
control of the customer.
Wireless carriers have had relatively tight control of their customer base through a
variety of means that have reduced the customer’s control over their service
choices:
Early termination fees to lock in the revenue stream for the service term
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Restricted access to specific Web sites and content (walled garden)
Ownership of the customer’s wireless phone number
Handsets with “locked” network provider settings
Each of these controls erodes in today’s markets as new regulatory decisions and
technology choices drive greater control back to the users of wireless services.
Wireless carriers subsidizing the initial cost of a wireless phone purchase has been
the long-standing model for helping to drive market penetration and reduce
customer objections to buy service. Margins on phone sales were sacrificed to
lock-in margins on minutes-of-use. For all the years that the major carriers battled
for gross adds they routinely subsidized handset prices based on the future
earnings from recurring charges and usage while fighting off churn. As the market
growth slowed and the operating margins diminished, carriers began to consider
distribution strategies that involved less subsidization. The European model where
handsets are sold separately as consumer devices with no subsidy frees those
carriers from the added acquisition costs. Decreasing margins will drive US
carriers to eliminate subsidies on some phones (especially low-end products) and
decrease the subsidies of higher-end products to improve margins. Ultimately, this
places more choice in the hands of the consumer and one less bond to the carrier.
Today, the majority of wireless consumers purchase their handsets from branded
carrier retail outlets. The phones they obtain are generally pre-selected models that
the carrier has customized through the manufacturer with many of the following
modifications:
Private label branding,

Custom web and messaging options,
Restricted web access choices (walled garden),
Bluetooth functionality restricted to headset accessories but not for
interaction with other devices such as printers,
Often the handset is “locked” to that carrier’s network and cannot be used
on another network unless unlocked.
Since the vast majority of the volume of phone distribution is controlled by the
carriers, they control the feature availability in the devices. Options such as digital
cameras and support for music files and productivity functions (PIM) are present
to the extent that a carrier is willing to adopt those features to retain their
customer. As handset technology continues to integrate new functionality and as
consumers begin to see handsets as a personal multi-function device, new channels
of distribution will emerge. The carriers gain by freeing them selves from the high
cost of subsidizing the phones as consumers buy them outright. Consumers gain
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from a more open market, similar to Europe, with greater market access to many
new features. Another link between the carrier and their customer falls into the
hands of the customer.
12 Market Potential and Forecasts

This chapter discusses the quantitative aspects of IMS enabled applications. It
covers the following aspects:
Overall market size for key IMS enabled applications

Market size for individual IMS enabled applications
Regional distribution of market size for individual applications
The forecasts are for the duration 2011-2016.
The following geographical regions are covered:
North America (NA)

Europe Middle East Africa (EMEA)
Asia Pacific (APAC)
Caribbean and Latin America (CALA)
To recap, the following key applications are forecasted:
Video Calls
Unified Messaging
Push-to-talk
Wireless-Wireline Convergence
Online Gaming
Video on Demand
12.1 Research Methodology

The forecasts are constructed using the following parameters, data sources and
criteria:
Published industry data
10-K reports
Wireless and wireline subscriber base
IMS infrastructural spend
Relative criticality of the readiness of wireless and wireline packet
infrastructure for the user acceptance of IMS enabled applications
Note: Contact Mind Commerce for any/all updates to the following forecasts
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12.2 Overall Metrics
Chart 12-1: Subscriber Revenue from Key IMS enabled Applications 2011-2016
(USD Million)
Overall Subscriber Revenues from Key IMS enabled Applications (USD Million)
300000
250000
200000
150000
100000
50000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Key IMS enabled Applications (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
Overall Subscriber 44014 69843 105040 150292 200235 247740 33.4%
Revenues from Key IMS
enabled Applications
(USD Million)
Mind Commerce forecasts that subscriber revenues from key IMS applications
will grow at a CAGR of 33.4% for the duration 2011-2016. The CAGR underlines
the great potential of IMS in unlocking the value contained in rich media
applications.
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Chart 12-2: Key IMS enabled Application CAGR Rankings 2011-2016 (%)
CAGR (% ) of Key IMS enabled Applications
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
Video Calls Video on Demand Unified Messaging Online Gaming Push-to-Talk Wireless Wireline
Convergence
CAGR (%)
CAGR
(%)
Video Calls 53.0%
Video on Demand 40.9%
Unified Messaging 40.5%
Online Gaming 29.0%
Push-to-Talk 23.3%
Wireless Wireline Convergence 19.2%
Mind Commerce forecasts that among the key applications covered in

the report, Video Calling will grow at the maximum pace while Wireless
Wireline Convergence will grow at the lowest pace.
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Chart 12-3: Regional Distribution of Subscriber Revenues from Key IMS enabled
Applications 2011-2016 (USD Million)
Overall Subscriber Revenues from Key IMS enabled Applications - Regional Distribution (USD Millions)
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Key IMS enabled Applications - NA (USD Million) Overall Subscriber Revenues from Key IMS enabled Applications - EMEA (USD Million)
Overall Subscriber Revenues from Key IMS enabled Applications - APAC (USD Million) Overall Subscriber Revenues from Key IMS enabled Applications - CALA (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
Overall Subscriber Revenues 9732 16042 22962 35126 46727 56435 34.0%
from Key IMS enabled
Applications - NA (USD
Million)
Applications - EMEA (USD
Million)
Applications - APAC (USD
Million)
Applications - CALA (USD
Million)
Total 44014 69843 105040 150292 200235 247740
On the regional front CALA will record lower than average growth.
183
Chart 12-4: Regional Share Comparison (2011 and 2016) of Subscriber Revenues
from IMS enabled Applications (%)
Overall Subscriber Revenues from Key IMS enabled Applications - Regional % Share
2016
2011
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall Share of Subscriber Revenues from Key IMS enabled Applications - NA Overall Share of Subscriber Revenues from Key IMS enabled Applications - EMEA
Overall Share of Subscriber Revenues from Key IMS enabled Applications - APAC Overall Share of Subscriber Revenues from Key IMS enabled Applications - CALA
2011 2016
Overall Share of Subscriber
Revenues from Key IMS enabled
Applications - NA 24.0% 19.7%
Applications - EMEA 27.4% 21.1%
Applications - APAC 32.2% 37.6%
Applications - CALA 16.4% 21.6%
Total 100.0% 100.0%
Mind Commerce forecasts that the APAC region will make significant gains in
terms of IMS application growth relative to other regions by 2016.
12.3 Video Telephony
183
Chart 12-5 Subscriber Revenue from IMS enabled Video Calls 2011-2016 (USD
Million)
Overall Subscriber Revenues from Video Calls (USD Million)
50000.0
45000.0
40000.0
35000.0
30000.0
Overall Subscriber Revenues from Video Calls (USD

25000.0
Million)
20000.0
15000.0
10000.0
5000.0
0.0
2011 2012 2013 2014 2015 2016
2011 2012 2013 2014 2015 2011 CAGR

(%)
Overall Subscriber Revenues 5455.0 11336.5 17775.2 26435.9 33985.6 45778.6 53.0%
from Video Calls (USD
Million)
Calls will increase to USD 45778.6 million during 2011-2016 at a CAGR of
53.0%.
183
Chart 12-6: Regional Distribution of Subscriber Revenues from IMS enabled Video
Calls 2011-2016 (USD Million)
Overall Subscriber Revenue - Video Calls - Regional Distribution (USD Millions)
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Video Calls - NA (USD Million) Overall Subscriber Revenues from Video Calls - EMEA (USD Million)
Overall Subscriber Revenues from Video Calls - APAC (USD Million) Overall Subscriber Revenues from Video Calls - CALA (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
Overall Subscriber 1287.3 2626.1 3913.4 5689.9 7221.8 9268.6 48.4%
Revenues from
Video Calls - NA
(USD Million)
Revenues from
Video Calls - EMEA
(USD Million)
Revenues from
Video Calls - APAC
(USD Million)
Revenues from
Video Calls - CALA
(USD Million)
Total 5455.0 11336.5 17775.2 26435.9 33985.6 45778.6
Mind Commerce forecasts that the APAC and EMEA regions will generate the
largest and the second-largest subscriber revenues respectively for IMS-enabled
Video Calls by 2016.
183
from IMS enabled Video Calls (%)
Overall Subscriber Revenues - Video Call - Regional % Share
2016
2011
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall Share of Subscriber Revenues from Video Calls - NA Overall Share of Subscriber Revenues from Video Calls - EMEA
Overall Share of Subscriber Revenues from Video Calls - APAC Overall Share of Subscriber Revenues from Video Calls - CALA
2011 2016
Overall Share of Subscriber 23.6% 20.2%
Revenues from Video Calls - NA
Revenues from Video Calls -
EMEA
APAC
CALA
Total 100.0% 100.0%
Mind Commerce forecasts that the EMEA region gainer of subscriber revenue
share for IMS enabled Video Calls for the duration 2011-2016.
183
12.4 Unified Messaging
Chart 12-8 Subscriber Revenue from IMS enabled Unified Messaging 2011-2016
(USD Million)
Overall Subscriber Revenues from Unified Messaging (USD Million)
120000
100000
80000
60000
40000
20000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Unified Messaging (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
Revenues from Unified
Messaging (USD Million)
Mind Commerce forecasts that the subscriber revenues from IMS-enabled Unified
Messaging will increase to USD 102625.6 million during 2011-2016 at a CAGR
of 40.5%.
183
Chart 12-9: Regional Distribution of Subscriber Revenues from IMS enabled
Unified Messaging 2011-2016 (USD Million)
Overall Subscriber Revenues - UM - Regional Distribution (USD Millions)
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Unified Messaging - NA (USD Million) Overall Subscriber Revenues from Unified Messaging - EMEA (USD Million)
Overall Subscriber Revenues from Unified Messaging - APAC (USD Million) Overall Subscriber Revenues from Unified Messaging - CALA (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
Revenues from
Unified Messaging -
NA (USD Million)
Revenues from
Unified Messaging -
EMEA (USD Million)
Revenues from
Unified Messaging -
APAC (USD Million)
Revenues from
Unified Messaging -
CALA (USD Million)
Total 13342.9 21060.0 38094.5 58271.1 83962.2 102625.6
Mind Commerce forecasts that the APAC will generate the largest revenues for
IMS-enabled Unified Messaging by 2016.
183
from IMS enabled Unified Messaging (%)
Overall Subscriber Revenues - UM- Regional % Share
2016
2011
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall Share of Subscriber Revenues from Unified Messaging - NA Overall Share of Subscriber Revenues from Unified Messaging - EMEA
Overall Share of Subscriber Revenues from Unified Messaging - APAC Overall Share of Subscriber Revenues from Unified Messaging - CALA
2011 2016
Messaging - NA
Messaging - EMEA
Messaging - APAC
Messaging - CALA
Total 100.0% 100.0%
Mind Commerce forecasts that the APAC region will be the biggest gainer
subscriber revenue share for IMS enabled Unified Messaging for the duration
2011-2016.
183
12.5 PTT
Chart 12-11 Subscriber Revenue from IMS enabled Push-to-Talk 2011-2016 (USD
Million)
Overall Subscriber Revenues from Push-to-Talk (USD Million)
25000
20000
15000
10000
5000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Push-to-Talk (USD Million)
CAGR
2008 2009 2010 2011 2012 2013 (%)
Overall Subscriber Revenues 6064 7883.02 10232.6 14818.23 19100.7 21260.8
from Push-to-Talk (USD
Million) 23.3%
Mind Commerce forecasts that the subscriber revenues from IMS-enabled Push-
to-Talk will increase to USD 21260.8 million during 2011-2016 at a CAGR of
23.3%.
183
Push-to-Talk 2011-2016 (USD Million)
Overall Subscriber Revenues - PTT - Regional Distribution (USD Millions)
8000
7000
6000
5000
4000
3000
2000
1000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Push-to-Talk - NA (USD Million) Overall Subscriber Revenues from Push-to-Talk - EMEA
Overall Subscriber Revenues from Push-to-Talk - APAC (USD Million) Overall Subscriber Revenues from Push-to-Talk - CALA (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
from Push-to-Talk - NA (USD
Million)
from Push-to-Talk - EMEA
from Push-to-Talk - APAC
(USD Million)
from Push-to-Talk - CALA
(USD Million)
Total 6064.0 7883.0 10232.6 14818.3 19100.7 21260.8
Mind Commerce forecasts that the APAC will generate the largest revenues for
IMS-enabled Push-to-Talk by 2016.
183
from IMS enabled Push-to-Talk (%)
Overall Subscriber Revenue - PTT - Regional % Share
2016
2011
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%
Overall Share of Subscriber Revenues from Push-to-Talk - NA Overall Share of Subscriber Revenues from Push-to-Talk - EMEA
Overall Share of Subscriber Revenues from Push-to-Talk - APAC Overall Share of Subscriber Revenues from Push-to-Talk - CALA
2011 2016
Revenues from Push-to-Talk -
NA
EMEA
APAC
CALA
Total 100.0% 100.0%
Mind Commerce forecasts that the NA region will be the biggest gainer and while
the APAC region will be the biggest loser of subscriber revenue share for IMS
enabled Push-to-Talk for the duration 2011-2016.
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12.6 Wireless Wireline Convergence
Chart 12-14 Subscriber Revenue from IMS enabled Wireless Wireline Convergence
2011-2016 (USD Million)
Overall Subscriber Revenues from Wireless Wireline Convergence (USD Million)
25000
20000
15000
10000
5000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Wireless Wireline Convergence (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
Overall Subscriber Revenues 7442.7 8364.4 10101.4 13185.1 17544.9 21381.9
from Wireless Wireline
Convergence (USD Million) 19.2%
Mind Commerce forecasts that the subscriber revenues from IMS-enabled

Wireless Wireline Convergence will increase USD 21831.9 million during 2011-
2016 at a CAGR of 19.2%.
183
Wireless Wireline Convergence 2011-2016 (USD Million)
Overall Subscriber Revenue - Wireless Wireline Convergence - Regional Distribution (USD Millions)
8000
7000
6000
5000 Overall Subscriber Revenues from Wireless Wireline

Convergence - NA (USD Million)
Overall Subscriber Revenues from Wireless Wireline
Convergence - EMEA (USD Million)
4000
Convergence - APAC (USD Million)
3000 Convergence - CALA (USD Million)
2000
1000
0
2011 2012 2013 2014 2015 2016
2011 2012 2013 2014 2015 2016 CAGR

(%)
Revenues from
Wireless Wireline
Convergence - NA
(USD Million)
Revenues from
Wireless Wireline
Convergence - EMEA
(USD Million)
Revenues from
Wireless Wireline
Convergence - APAC
(USD Million)
Revenues from
Wireless Wireline
Convergence - CALA
(USD Million)
Total 7442.7 8364.4 10101.4 13185.1 17544.9 21381.9
Mind Commerce forecasts that the APAC and EMEA regions will generate the
largest and the second-largest subscriber revenues respectively for IMS-enabled
Wireless Wireline Convergence by 2016.
183
from IMS enabled Wireless Wireline Convergence (%)
Overall Subscriber Revenues from Wireless Wireline Convergence - Regional % Share
2016
2011
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall Share of Subscriber Revenues from Wireless Wireline Convergence - NA

Overall Share of Subscriber Revenues from Wireless Wireline Convergence - EMEA
Overall Share of Subscriber Revenues from Wireless Wireline Convergence - APAC
Overall Share of Subscriber Revenues from Wireless Wireline Convergence - CALA
2011 2016
Revenues from Wireless
Wireline Convergence - NA
Wireline Convergence - EMEA
Wireline Convergence - APAC
Wireline Convergence - CALA
Total 100.0% 100.0%
Mind Commerce forecasts that the EMEA region will be the biggest gainer and
while the APAC region will be the biggest loser of subscriber revenue share for
IMS enabled Wireless Wireline Convergence for the duration 2011-2016.
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12.7 Online Gaming
Chart 12-17 Subscriber Revenue from IMS enabled Online Gaming 2011-2016
(USD Million)
Overall Subscriber Revenues from Online Gaming (USD Million)
60000
50000
40000
30000
20000
10000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Online Gaming (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
from Online Gaming (USD
Million)
Mind Commerce forecasts that the subscriber revenues from IMS-enabled Online
Gaming will increase to USD 49005 million during 2011-2016 at a CAGR of
29.0%.
183
Online Gaming 2011-2016 (USD Million)
Overall Subscriber Revenue - Online Gaming - Reginal Distribution (USD Millions)
20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
2011 2012 2013 2014 2015 2016
Overall Subscriber Revenues from Online Gaming - NA (USD Million) Overall Subscriber Revenues from Online Gaming - EMEA (USD Million)
Overall Subscriber Revenues from Online Gaming - APAC (USD Million) Overall Subscriber Revenues from Online Gaming - CALA (USD Million)
2011 2012 2013 2014 2015 2016 CAGR

(%)
from Online Gaming - NA
(USD Million)
from Online Gaming - EMEA
(USD Million)
from Online Gaming - APAC
(USD Million)
from Online Gaming - CALA
(USD Million)
Total 10615 19610 28807 33184 39712 49005
Mind Commerce forecasts that the APAC will generate the largest subscriber
revenues respectively for IMS-enabled Online Gaming by 2016.
183
from IMS enabled Online Gaming (%)
Overall Subscriber Revenues - Online Gaming - Regional % Shares
2016
2011
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Overall Share of Subscriber Revenues from Online Gaming - NA Overall Share of Subscriber Revenues from Online Gaming - EMEA
Overall Share of Subscriber Revenues from Online Gaming - APAC Overall Share of Subscriber Revenues from Online Gaming - CALA
2011 2016
Revenues from Online Gaming -
NA
EMEA
APAC
CALA
Total 100.0% 100.0%
Mind Commerce forecasts that the CALA region will be the biggest gainer and
while EMEA and NA regions will be the biggest losers of subscriber revenue
share for IMS enabled Online Gaming for the duration 2011-2016.
183
12.8 Video on Demand
Chart 12-20 Subscriber Revenue from IMS enabled Video on Demand 2011-2016
(USD Million)
Overall Subscriber Revenues from Video on Demand (USD Millions)
40000
35000
30000
25000
20000
15000
10000
5000
0
2011 2012 2013 2014 2015 2016
CAGR
2011 2012 2013 2014 2015 2016 (%)
Overall Subscriber
Revenues from Video on
Demand (USD Million) 4598.3 7885.3 14646.0 20665.2 28882.3 35925.7 50.9
on Demand will increase from USD 4598.3 million to USD 35925.7 million
during 2011-2016 at a CAGR of 50.9%.
183
Video on Demand 2011-2016 (USD Million)
Overall Subscriber Revenue from VOD - Regional Distribution

(USD Millions)
14000.0
12000.0
10000.0
8000.0
6000.0
4000.0
2000.0
0.0
2011 2012 2013 2014 2015
Overall Subscriber Revenues from Video on Demand - NA (USD Million)

Overall Subscriber Revenues from Video on Demand - EMEA (USD Million)
Overall Subscriber Revenues from Video on Demand - APAC (USD Million)
Overall Subscriber Revenues from Video on Demand - CALA (USD Million)
CAGR
2011 2012 2013 2014 2015 2016 (%)
Overall Subscriber
Demand - NA (USD
Million) 1094.4 1589.4 29.81.7 4398.2 5930.0 7688.1 47.7
Overall Subscriber
Demand - EMEA (USD
Million) 1172.6 1574.3 3987.3 4543.4 6381.9 8155.1 47.4
Overall Subscriber
Demand - APAC (USD
Million) 1558.8 3487.3 5688.8 8933.7 11972.4 13364.4 53.7
Overall Subscriber
Demand - CALA (USD
Million) 772.5 1234.3 1988.2 2789.9 4598.0 6718.1 54.1
Total 4598.3 7885.3 14646.0 20665.2 28882.3 35925.7 50.9
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Mind Commerce forecasts that APAC will generate the largest subscriber
revenues respectively for IMS-enabled Video on Demand by 2016.
from IMS enabled Video on Demand (%)
Overal Subscriber Revenues from VOD - Regional % Share
2016
2011
0% 20% 40% 60% 80% 100%
Overall Subscriber Revenues from Video on Demand - NA (USD Million)

Overall Subscriber Revenues from Video on Demand - EMEA (USD Million)
Overall Subscriber Revenues from Video on Demand - APAC (USD Million)
Overall Subscriber Revenues from Video on Demand - CALA (USD Million)
2011 2016
Demand - NA 23.8% 21.4%
Demand - EMEA 25.5% 22.7%
Demand - APAC 33.9% 37.2%
Demand - CALA 16.8% 18.7%
Total 100.0% 100.0%
Mind Commerce forecasts that the CALA region will be the biggest gainer and
while the EMEA and NA regions will be the biggest losers of subscriber revenue
share for IMS enabled Video on Demand for the duration 2011-2016.
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12.9 Conclusions
The following conclusions can be drawn the qualitative and quantitative analysis
of IMS-enabled applications:
Wireless Wireline Convergence will deliver slower growth in subscriber

revenue among IMS enabled applications
Video related and messaging related applications will deliver the
maximum subscriber revenues among IMS enabled applications in 2016
The APAC region will continue to provide the maximum subscriber
revenues from IMS enabled applications for the duration 2011-2016
13 Summary and Recommendations
Changes in the direction of telecom landscape cannot be ignored by any carrier.

Wireline and wireless carriers are faced with permanent shifts of their revenue
composition, cable providers see wireline providers invading the video distribution
market. Convergence brings more mobile functionality to fixed networks and
multimedia is now feasible across mobile networks. Content owners and
distributors are now seeing whole new media outlets for their property and some
are entering the telecom space as VNO’s.
Changes affecting the Wireline Carriers:
Losing voice revenue to wireless networks.

Stagnant stock prices under perception of commodity service.
Introduction of DSL technologies positions them as broadband internet
access providers.
Building out fiber and Ethernet networks to offer multimedia and video on
demand.
Supporting convergence and IMS to offer voice mobility on WiFi
networks.
Broadband and Ethernet offers enterprises with VPN and vertical solutions.
IMS offers the ability to support multi-network services with wireless
affiliates.
Changes affecting the Wireless Carriers:
Growth in voice service revenues is slowing.

Need to supplement voice revenue with new, innovative data applications.
Rapid expansion of network throughput through 3G technologies (EV-DO,
UMTS, HSDPA)
183
Younger, more flexible infrastructure that can more quickly adopt IMS
technologies.
Supporting convergence as a way to defensively increase customer
retention.
New revenue sources through multimedia streaming and download content.
IMS offers the ability to support multi-network services with wireline
affiliates.
New partnerships with private-brand Virtual Network Operators and
service creators.
The advancements in the technology and the shifts in the flow of revenue among
service providers will drive service providers to extend beyond their traditional
network boundaries and this can lead to changes in the ownership of the customer
relationship as well.
The big drivers are Lower Cost and New Revenue Sources
The greatest challenges for any telecom service provider are to operate their
networks at the lowest unit cost structure possible and open new sources for
subscriber revenue. IMS systems offer the opportunity to do both in the long term.
In the short term, carriers must expect to invest more capital and make the network
a little more complex before it gets simpler. The search for new sources of revenue
will lead carriers to introduce multimedia content and innovative new services
over networks that have dramatically improved throughput as compared with just
3 to 5 years ago. IMS technology will help carriers experiment with new services
and bring them to market more quickly and at a lower cost. Ultimately, the
marketplace will determine the successful mix of features and carriers will
continuously innovate to follow where the market leads them.
IMS brings a lower cost structure to carriers
Overlapping networks tend to become integrated networks. The benefits of a lower

cost structure through the IMS architecture may drive service providers to
integrate parts of their wholly owned networks to deliver services at lower cost.
IMS offers a lower cost structure for both the Expense Budget and the Capital
Budget.
14 Appendix
This Appendix provides analysis into a variety of areas of issue and concern for
rollout of IMS enabled applications.
183
14.3 Network Operator Challenges of IMS Rollout
14.3.3 Struggle for Resources
There will be an ongoing struggle for resources to implement IMS. It will not be
completed overnight so making tough choices and prioritizing will be expected.
As depicted in the above illustration, there will be ongoing competitive forces

internally for every organization considering both initial IMS introduction as well
as ongoing service migration and integration. No aspect of these competitive
forces should be ignored. Incremental improvements in all areas should be made
as the network evolves.
14.3.4 How to Roll Out Features
The network operator challenge is to start with today’s network; keep it small and
simple. Operators should let the market help drive the path of development. It’s
not hard to dream up plenty of enticing, flashy, unique feature ideas, but new
services must be relevant to the marketplace and hit the magic formula for timing,
value, pricing, need and luck. Features must deliver compelling value to the right
market segment, with great performance at the right price and at the right time.
IMS architecture introduces several new functions which require some adaptation
and integration into the existing business processes before more complex services
can be successfully introduced.
183
The operator should start with small, simple single-user services to build up the
necessary experience base to progress to more complex offerings. Initial service
offerings will not likely be fully IMS compliant from the start. There should be a
phased implementation of IMS functions with a focus on gaining maximum
utilization of existing network assets and will make use of existing provisioning
and billing platforms. Inter-working gateways will translate existing network
protocols into SIP rather than native SIP applications extending throughout the
network. There will be temporary and hybrid solutions at all levels of the
network.
There will be an ongoing struggle to determine which applications, old or new,

shall be the priority.
A key premise to remember is the following: IMS is not economically viable if the
goal is simply to replicate existing services in a new architecture. The payoff of
IMS is to develop and introduce new value-added services for incremental revenue
at a lower cost per subscriber.
14.3.5 Financial Matters
The capital investment choices by carriers in the transition to IMS are critical to
how quickly they ultimately reach a lower cost network structure.
Choosing too many hybrid solutions too early will waste investment or delay the
migration to a heterogeneous IMS environment.
The competing pressures of driving early revenue gains through new service
offerings positioned against wanting to wait to deploy full IMS-compliant
solutions will create a difficult balance for decision makers.
A certain amount of hybrid, adjunct pre-IMS solutions can be reasonably tolerated

if they target high-revenue service opportunities but the real economic gains of
consolidating to an IMS architecture only come once a critical mass of IMS-
compliant nodes are adopted.
183
Aggressive early adopters of pre-IMS platforms with little or no SIP capability
must have a long-term strategy to evolve their investment choices to an end-state
model for their network that provides a fundamentally lower cost structure.
14.4 IMS & Quality of Service and Quality of Experience
Quality of Service and Resource Allocation are critical as IMS requires the carrier
to have greater control over their network resources.
Offering multimedia services on fixed-line networks and mirroring the fixed-line

experience through mobile networks requires several capabilities not yet present in
either network. Chief among these is the regulation of QoS (Quality of Service) to
maintain sufficient throughput within minimum delay limits appropriate to each
session.
In the context of packet networks, Quality of Service (QoS) refers to the ability of
the connection to meet certain specified service commitments. Different types of
traffic and different services require different QoS levels due to their sensitivity to
various transmission errors. The major impairments experienced on packet
networks include:
dropped packets – routers may drop some packets when buffers are full
out-of-sequence packets – packets arrive out of order and must be re-
sequenced
latency (delay) – packet transit time is delayed due to excessive
retransmissions
jitter – signal variations that can introduce timing errors or bit errors
bit errors – bit corruption that can accumulate and degrade message
integrity
The quality of certain services is much more susceptible to some types of errors
than others. The real-time nature of voice communications over packet, including
VoIP, makes the speech quality very susceptible to latency (delay) more so than to
bit errors. Dropped packets may not affect some services, such as voice, but would
ruin the integrity of a file transfer. Therefore, the network must identify the
different types of traffic on the network and ensure that adequate resources are
available to meet the different needs of the different types of traffic.
To control QoS, networks must establish a set of traffic classes for services based
on the type of impairment that is most important to control. These traffic classes
can then be prioritized across the network to ensure the required resources are
183
devoted to the service to preserve the quality needed. In general, QoS traffic
classes prioritize the following two types of services:
Time Sensitive Services – Services such as Voice or Streaming Media

which are very delay sensitive but are able to tolerate some packet loss and
not lose their value.
Content Sensitive Services – Services such as file transfers and interactive
services which are not as time sensitive but are very sensitive to bit errors
and packet loss.
UMTS specifications define four traffic classes for the management of QoS:
Conversational – VoIP, voice
Streaming – Video and Multimedia Content
Interactive – Web browsing
Background – Email and file transfers
The major distinguishing factor among these four classes is whether they are time-
sensitive or content-sensitive. Conversational and Streaming classes are real-time
transfers of data and are most time sensitive while Interactive and Background
must preserve the accuracy of the bearer channel payload content.
In the Internet, five traffic classes have been defined to control QoS characteristics
of traffic compared with the four classes defined for UMTS:
Premium Constant Bit Rate (PCBR) – VoIP, voice

Premium Variable Bit Rate (PVBR) – Video and teleconferencing
Premium Multimedia (PMM) – Audio/Video downloads, adaptive video
Premium Mission Critical (PMC) – Transactions, database queries
Best Effort (BE) – Email, all else.
It is very important to note that it is not enough to allocate resources to ensure that
the bearer (data) channel can achieve the prescribed Quality of Service
requirements. The control signals passing among the nodes in the Transport Plane
and the Control Plane must also be QoS managed to ensure that the entire session
quality is achieved.
There are two primary means for providing enough network resources to meet all
the QoS needs present in the demand on the network. One way is through gross
over-provisioning where large amounts of resources (queue size, bandwidth,
diverse routes) are provided to ensure that the peak traffic experiences maximum
183
quality. Obviously very uneconomic in large scale networks and requires
forecasting of peak demand.
The other approach is to control quality and allocate resources through a

reservation process by which the initiation of each session includes a request for
the required resources needed based on the application of the session. Resource
requests can then be accepted or rejected based on available resources at the time.
Premium services requiring premium resources can be charged at a premium as
well. The concept of Differentiated Service (DiffServ) for the internet is favored
as the means to regulate resources on a QoS basis. DiffServ routers would
prioritize traffic based on QoS requirements and the available bandwidth of the
network. At times of congestion, lower priority services would be dropped in favor
of higher priority or premium services. An abundance of dropped or denied
services due to inadequate resources is a clear sign that capacity growth is required
in the network.
Premium Services will require Quality of Service (QoS) guarantees and resource
allocation of network assets and bandwidth. In the IMS model, these Premium
Services create opportunities for the service provider for service differentiation
and premium revenue.
Since the definitions of QoS traffic classes differ between UMTS mobile networks
and the internet, it is necessary to coordinate QoS across the network boundaries.
An agreed mapping arrangement is needed to translate the mobile traffic classes to
the internet traffic classes to match as closely as possible the QoS prioritizations to
preserve overall session quality across both networks. In some ways, the ability to
support QoS criteria defines the boundaries between overlapping networks.
Wireline and wireless networks must negotiate the boundaries of QoS metrics to
deliver services with an end-to-end quality commitment.
Also of significant concern in mobile networks is the continuation of active

sessions as the users moves between nodes on the present network or moves from
one network to another; even from the mobile network to a fixed-line network.
The seamless continuation of their active sessions with no user action required and
with QoS maintained will require new standards for inter-network cooperation and
hand-off.
183
In a mobile context, the user’s communications will likely be divided across
multiple devices, operating at different speeds and with different computing
capabilities. Further, their information may take multiple forms including voice,
data, video, each with different requirements for QoS, security and throughput.
Finally, the entire state-of-the-art in wireless and fixed-line networks continues to
evolve making the specification of requirements and protocols very much a
moving target. Whatever techniques are introduced to meet this suite of needs
must also be as dynamic and adaptable as the evolution of the networks they will
depend on.
14.5 IMS & Customization

IMS enables great customization, ultimately leading to greater end-control.
Service customization allows the user to create personalized services.
One of the great benefits of locating all subscriber data in one Home Subscriber
Server (HSS) is that the same subscriber database can also record a wide range of
customer-specific data. Service preferences for each subscriber can be maintained
to personalized their features and add greater value to the suite of services for the
subscriber.
New service applications and features can be created to leverage the use of
individual preferences. Examples such as time-of-day routing, or device
preferences for the download of media content can provide the user greater control
over their subscription and the greater degree of customization enhances customer
retention.
Existing network services for enterprise customers already allow for some degree
of Service Configuration Management (SCM) such as centrex services where the
enterprise can manage their own service moves and changes. The IMS model
allows for an expansion of this concept into management of calling services
between networks as well. Another example is a feature for the simultaneous
ringing of two (or more) phones at once, one wireline and the other wireless.
Combining customization and preferences with Presence and Location information

extends the concept further into community-based features such instant messaging
and locating other users within user groups based on each customer’s opt-in
choices. Media control is also possible such that the user selects audio or music
content when they are present on their wireless handset but prefers video when
connected on their notebook computer through a WiFi network.
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There is a rich variety of possibilities that new feature applications can exploit
based on customer preferences established through the common HSS database and
managed by the customer to suit their immediate needs.
14.6 IMS & the Impact on Carriers
There is a rich variety of possibilities that new feature applications can exploit
based on customer preferences established through the common HSS database and
managed by the customer to suit their immediate needs.
Open architectures and standards-based services create opportunities for the

incumbent wireless and wireline carriers as well. As cost advantages of IP
networks begin to displace the traditional TDM and circuit switched networks,
incumbent carriers will migrate their infrastructure to an IP-based architecture.
This evolution with drive many other changes in Authentication, Policy
Administration, Digital Rights Management, Billing and Provisioning system
interfaces, some of which are not as yet thoroughly defined.
By adopting IMS-based systems and SIP-based applications, carriers not only

achieve the benefits of a lower cost structure, they also gain a more flexible
platform for offering competitive and targeted service offerings and content to a
more targeted market segment. Through Application Servers linked with Policy
Servers and Home Subscriber Servers, carriers can offer customized service
packages to increase customer retention and lock in revenue streams with more
ways to meet customer service needs.
Carriers also gain the opportunity to host third party applications on their service
platforms and negotiate access to their customer’s presence information and HSS
functionality. A third-party developer can launch innovative services in a hosted
environment through a variety of relationships with the hosting carrier. At one end
of the spectrum is an application developer who produces features under a services
contract with the carrier and delivers turnkey software applications with no claim
on customer presence of any kind.
A further step might be a developer who develops an application and enters a co-
marketing agreement with a carrier and has a brand presence in front of the
customer. A third possibility is a developer who simply enters a hosting agreement
with the carrier, negotiating access to the HSS, Application Servers, and perhaps
other servers offering Presence or Location-Based information. The developer
then freely markets their features independently from the carrier.
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All of these models exist in the industry today, but IMS technology provides a
standard, defined interface and platform to host applications allowing for a broader
range of feature possibilities and faster access for developers and content
providers to enter the game.
The following chart diagrams this range of relationships and shows how IMS
technology drives expansion in this opportunity to engage with third party
application developers.
The improved interfaces with billing and OSS platforms along with SIP-based
applications will enlarge the overall services market allowing greater entry for
new independent developers. Multi-network service providers and VNOs will
have new distribution channels for their content and services.
14.7 New Network Management and Operations Issues
With IMS, there will be multiple services and vendors. IMS allows many new
services and vendors, which causes complexity from a network management
perspective. Operators will ideally have a unified network management system to
integrate management of all disparate systems.
With IMS, networks and services no longer linked. In legacy wireline and
wireless circuit-switched systems, the network and services are linked – if the
183
network fails, the service fails. Network management in this regime is basically
fault and performance management.
Operators must manage both physical and logical elements in IMS networks. It is
no longer efficient to simply correlate the data generated by separate network
management, performance management, traffic management, QoS testing, etc.
systems. They must have truly unified systems.
IMS drives more services and allows for the pricing of services according to value
rather than usage (minutes or bandwidth). Value based billing is based on an
event such as obtaining content.
This raises a few billing issues such as:
Real-time: Operators’ systems have heretofore gathered and

processed data on a batch basis. IMS forces operators to work in
real-time or near-real-time.
Active: Operators will require active mediation for the on-demand
services that IMS enables. Passive mediation allowed through pre-
subscribed services is no longer acceptable
Configurable: Systems must be easily and rapidly configurable to
support rules and procedures for many combined and on-demand
services
Flexible rating and charging: With the advent of the VNO for
IMS, operator mediation systems must be flexible enough to rate
events for other parties that actually charge (bill) the end-user for the
event
Converged: Operators have historically tied together disparate
billing systems as a means of presenting a single bill. IMS will
finally force the issue as operators will be compelled to have truly
integrated systems for more flexible billing, allowing bundling and
packaging of various service and feature options.
Multiple technology support: Due to the on demand nature of IMS
and the many types of applications and content that traverse the IP
pipe, operator mediation systems must be able to collect and process
usage and event records from multiple types of network elements
and sources.
IMS will also bring forth some new and/or more complex revenue assurance
issues for network operations. With so many new services, vendors, content
providers, and the VNO model, there is increased complexity for revenue
assurance. Operators must manage: Contracts with customers, SLA’s with content
providers, clearing and settlement of revenues with content partners and will need
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new tools to manage revenue assurance due to the many-to-many relationships of
partners/services/services/service packages.
14.8 IMS Changes to the Service Creation Paradigm
Service creation is a growing focus among service providers in both wireless and
wireline networks. Each group is faced with new challenges and some common
dynamics affecting both sides of the industry. Reduced top-line revenue among
wireline carriers and a slowing in the rate of the voice growth among wireless
carriers requires a restructuring of the revenue and cost models as the industry
continues to mature.
Competition has increased steadily for wireless and wireline carriers but now there
are new sources of competition from across industry lines. Cable providers
offering voice services, telcos offering video services, and mobile carriers offering
broadband data and video are examples of a rapidly broadening competitive scene.
The impact is that every type of service provider (cable, telco, and mobile) is
deriving a new balance to the business model to focus on the following:
New Opportunities for Revenue Generation:

New innovative services that will drive greater ARPU (Avg. Revenue per
User).
Launch a greater variety of new services that can target specific segments.
Improve customer retention through personalization and bundling.
Shorter time to market to launch new features nationwide.
Opportunity to create services once and offer across multiple networks.
Cost Savings and Reduction of Operating Expense:

Services based on non-proprietary, open technologies with broad support.
Service platforms that scale more easily as volume and demand grows.
Low capital investment to provide a development environment and support.
Commonality of system interfaces to standardize OSS and BSS links.
183
Establish one diverse set of nationwide node elements for efficient
distribution of a wide range of services.
IMS systems can dramatically enhance the ability of carriers and application
developers to offer improved services and, as a result, there are also improved
opportunities in the types of applications and solutions that will be possible. By
removing basic functional services from the network nodes and abstracting those
functions to higher planes in the hierarchy, application developers have access to
feature hooks that were not previously available.
Adding to the availability of additional network hooks is increased accessibility to

two new key services: presence and location information. By combining presence
or location information on individual subscribers with other network features,
application developers can create a new generation of advanced features that can
be integrated with other services. The presence and location information is
controlled from the Control Plane of the network and is removed from the
Transport Plane of the network. Most commonly, these presence and location
functions will be integrated with the Home Subscriber Server (HSS).
14.9 Service Creation Management (SCM) and IMS
Service Configuration Management (SCM) is a missing piece in the IMS model.

The tools that allow the carrier, or the customer, to alter or revise their service
parameters have not been included in the IMS definitions. Although in most cases,
service providers tend to keep full service creation tools proprietary and not open
to customers, there are increasing amounts of self-provisioning or self-selection of
features over which customers can exhibit greater control.
Service Configuration Management functions dive deeper into the Control Plane
to affect the HSS and, therefore, will engender a much greater scrutiny by the
carrier. Although they offer greater control for customers and help reduce
administrative costs for carriers, the potential for abuse of such access into the
HSS must be managed. Some service providers may retain full control over all
service configurations in order to limit third-party access into the HSS systems.
One important consideration is how to set the boundary between the elements that
the customer can control, that the third-party application developer can control and
where the carrier reserves control to themselves. Control over service
authorization and billing-impacting transactions are not likely to transfer into
customer hands or developer hands too quickly. The potential for abuse and
183
unauthorized access will limit the openness of freely passing this sort of
transaction. More minor functions to set optional parameters and features offer the
opportunity for the customer to set their preferences with no action on the part of
the service provider.
14.10 IMS and Third-party Applications
As IMS evolves from closely controlled carrier-deployed services to a more open

service creation and deployment environment, there will be a need for service
integrity management and establishment and support of a barrier between Service
Plane and the Control Plane.
Not all applications are created equal and not all third-party developers are created
equal. The open architecture concept does not translate to an open door to the
network Control Plane. There will likely be major walls built around unproven or
non-certified DSP or AS platforms and applications that have the potential to
intrude into the Control Plane of the network. DSP and AS platforms are limited to
the Service Plane and will be strictly walled off from the network Control Plane
except for specific interfaces and under tight network security rules.
The telecom industry has experience in safeguarding the control of the network
infrastructure. In the PSTN network, access into the SS7 network is highly
restricted. There are many examples, even among networks operated by related
corporate entities, where network operators directed that the SS7 networks must
remain separate and autonomous, forcing the duplication of SS7 nodes for
overlapping networks.
The industry requires the recognition of a Security Certification and

Interoperability Testing Certification to ensure service integrity of new features
and feature platforms without compromising network security integrity.
Applications should pass interoperability testing and regression testing to carrier-

grade criteria before being allowed to issue protocol messages into the HSS or
CSCF functions in the Control Plane. Defining strict criteria for applications and
DSP or AS platforms will safeguard network control integrity while allowing a
greater presence of more feature developers.
183
This requires that Policy and Authentication and Administration servers also be
enhanced to high levels of protection and containment than currently provided. In
many architectures, the establishment of a “DMZ” or non-trusted zone outside the
Control Plane will be needed to isolate access from non-trusted servers. The
stringent security for non-trusted servers may be one compelling reason for
carriers to give greater consideration to the services hosting model where they can
regulate access more carefully to the Control Plane.
14.11 IMS and the Impact on NGN OSS/BSS
Network Planning and Engineering (NPE)
NPE functions deal with dimensioning the network based on projected market
forecasts. It involves selection of best access technology taking into account
geographical and economic factors. The inputs required for this exercise include
geographical maps, demographic analysis, customer locations and others. The
output of NPE is a network map that contains service types supported, maximum
traffic volume supported, customer classes, network infrastructure costs and
operating expenses.
NPE in the IMS era is simplified to a large extent as IMS presents the ultimate in
modularization of functions. As scaling or orientation of network topology and
service profile is much easier in the IMS era, IMS does not present any real
challenges on the NPE front. This is however, just one aspect of the story, which
considers IMS in isolation. In practice, every IMS deployment is a migration from
legacy environment. IMS is thus an addition to the existing networks. Sadly, this is
an aspect that has not been adequately dealt with by the stakeholders.
Consequently, NPE does become a tedious and complicated exercise while dealing
with the prospect of integrating IMS components.
Fault Management (FM)
Also known as s Service Assurance, FM functions detect, isolate, debug and

troubleshoot network errors and malfunctions. Network alarm monitoring and
handling is the most commonly employed FM approach. Tools that are used for
error troubleshooting are root cause analysis, event traces and event log analysis.
FM is one of the most well defined and structured modules in most OSS suites.
The principal challenge for FM in IMS era is the integration and interfacing with a
fresh set of protocols and standards, something that the somewhat rigidified
183
architecture of FM finds challenging to integrate. However, the challenge is
simplified to the extent that the requirement and deliverables have a high level of
clarity.
Performance Management (PM)
PM, as the name suggests, is related to the handling of network operations.

Specific functions that fall in the purview of PM are Network Element (NE)
discovery, event reporting, resource availability monitoring, Service Level
Agreement (SLA) management, QoS monitoring, identifying performance
bottlenecks and similar others. Most telecom operators have an integrated
Network Operations Center (NOC) to manage these functions.
PM is the proverbial Achilles’ heel in the IMS roll-out. There are two principal
formidable foes that service providers need to confront:
IP versus circuit switching

Migration induced challenges
While migration is the common element in challenges confronting all modules,

what compounds matter is that migration can directly translate into network
downtime and revenue losses. PM is one area where the impact of migration can
be most poignantly felt and observed. There is of course a larger context to the
migrational conundrum; and that is the introduction of the IMS control plane
which IP-based. In the already cut throat market where quality of service is a
major differentiator, IMS migration has the potential to strike at the very roots of
smooth network functioning.
Provisioning and Service Activation (PSA)
Provisioning process begins with order intake and ends with service activation.
Service requests are commonly delivered in the form of Work Order, which is a
series of actions that need to be performed to complete the provisioning process.
Order templates are created by the telecom operators and activities are assigned to
individuals and groups. After the order intake, the order is validated, followed by
planning the service implementation. After this the concerned NE is configured
appropriately to activate the service.
PSA is perhaps the one module that will undergo the most drastic changes in its
deliverables. As IMS passes more and more control in the hands of the customers.
Companies such as Kabira Technologies have automated the PSA activity which
supports synchronous batch mode as well as asynchronous modes of service
activation. The approach adopted by the company for supporting IMS is the
183
addition of a dedicated network element cartridge for IMS. This cartridge
connected the IMS NE to the core PSA engine. It can be surmised that the
increased self care activity at the customer front end will translate into a greater
load for this cartridge. Kabira has also adopted a load balancing methodology to
cater to the increased order demand.
Inventory Management (IM)
Inventory management tracks and manages telecom assets such as equipment,

services, financial records, contracts, locations and other data. A database of these
assets is maintained, reported and analyzed periodically to ensure optimal
allocation of resources.
IMS will drive operators towards streamlining their operators. A major aspect of
this streamlining is efficient IM practices. As is evident in the case of PSA, IMS
will push for increased automation in traditional OSS processes. An effective
inventory based scheme can not only provide a one-stop source of relevant
information but also reduce process duplication. It is therefore unsurprising that
IMS is slated to have a very benign effect on IM prospects.
Billing and Customer Care
Telecom retail or subscriber billing functions include generation of call records,

processing the call records in a real-time or batch mode based on pre-defined rules
(rating), rendering the rated record into the bill and presenting the rendered bill in
the prescribed format. Billing processes vary based on type of data recorded, type
of access network, whether the subscriber is pre-paid or post paid and the rules of
rating the record. Interconnect or wholesale billing deals with the revenue
reconciliation among interconnected telecom operators. The processes for
wholesale billing remain similar to that of retail apart from the differences in the
volume and rating rules. Customer care involves resolution of customer queries
and requests, generally through a contact center. Many telecom operators also
provide for a web-based customer self-care application wherein the customer
where bill presentation, payment and limited service activation can be carried out.
Settlement functions reconcile accounts between the telecom operators and the
content provider partners. The settlement process is driven by revenue sharing
agreements and the computation is based on transaction value, relationship value,
volume, service, region, delivery mode and regulatory standards.
Billing is the most critical OSS and BSS component – both in terms of operator
revenue determination and OSS/BSS solution provider market prospects. As the
largest functional module in terms of sheer revenues, IMS is slated to have a
profound effect on billing. Billing in the IMS era must support the following:
183
Rapid roll out of billing plans to match services roll outs
Cross selling of products
Innovative discounts and promotions
Multiple billing methodologies based on flat rate, per second billing, data
transfer based and others
Pre-paid and post paid
Integrated billing for voice, data and video based services
Integration of new service delivery platforms
Support for SIP initiated sessions
Convergent rating and charging
Inclusion of new service defining attributes such as location and even
quality of service.
Migration from batch-mode billing to a more real time methodology
Dynamic correlation and reconciliation of charging of data based services
initiated by disparate network elements.
Support for online and offline charging
Mediation (MD)
Mediation deals with conversion of raw call data to a format understandable by the
billing and accounting systems. Steps involved in mediation are data collection,
archiving, normalization, filtering, enrichment, aggregation, correlation, buffering,
format mapping and reconciliation.
MD is the module that really gets hands on with the IMS NEs. It has to support the
DIAMETER protocol and importantly interface DIAMETER with the legacy
charging mechanisms wherever applicable. MD thus needs to support networks
and BSS that are truly hybrid in nature. MD interfaces with IMS NEs. Some of the
interfaces that MD interfaces with include DIAMETER Ro, DIAMETER Rf,
GTP, Rx and Gx for online charging, policy control rules as well as dealing with
charging data and the gateway.
Revenue Assurance (RA)
Revenue assurance functions enable the telecom operator to address the issue of
revenue leakage. This achieved by advanced analytical processes that start with
customer verification, credit balance checks, usage monitoring through appropriate
control points and interfaces for data extraction, dashboards to present results and
workflow based processes to take appropriate corrective actions.
IMS has the potential to completely alter the deliverables for RA function. RA
planners have to contend with an entirely new set of challenges ushered by the
183
introduction IP traffic. As is well known, IP networks are more prone to be
eavesdropped and maliciously manipulated. In addition to plugging traditional
sources of revenue leakage, RA designers have to invent ways of ascertaining the
authenticity of the data presented to the module as the traditional CDR data may
be less reliable in case of VoIP networks. As the nature of services and the nature
of frauds are dynamic in nature, fraud analytics also has to be equally dynamic.
Other aspects of revenue assurance such as interconnect rating as well as
reconciliation, which are typically handled in batch modes need to be brought as
close to real time as possible.
183
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IP Multimedia Subsystem (IMS):

The Market for Applications and

1 Executive Summary .................................................................................................... 8

Figure 2-1: IMS Block Diagram ....................................................................................... 19

Table 3-1: SingTel Video Call Tariff................................................................................ 61

This report evaluates a variety of IMS enabled applications, placing emphasis on a

Key deliverables of the applications

The report is divided into the following chapters:

This approach is best embodied by the IP Multimedia Subsystem (IMS). IMS is an

As IMS is based on an integrated open-system architecture format and supports an

IP IMS architecture is designed to facilitate the ultimate in one-to-one and many-

2.1 History of IMS and Spearheading Organizations

2.2 Business and Technology Drivers

Worldwide, operators are granted licenses to operate based on competitive

As mentioned in the previous section, IMS promises the operators, an effective

The bane of conventional telco infrastructure is the closed architecture and

IMS draws heavily from existing components and technologies. Its

In tandem with the contemporary movements in IT, IMS believes in distributed

Apart from providing an elaborate mechanism to interlink wireless, wireline

2.3 Role of IMS in Mitigating the Limitations of Conventional

Additionally, the numbering methodologies of voice networks and data networks

These parameters include the following:

Additionally, standardization of service capabilities is a pre-requisite in IMS. This

However, the most critical value-addition of IMS may be available from

Optimization of spectrum also enables optimization of infrastructural costs.

In synch with the rapidly spreading Service Delivery Platform (SDP)

2.4 Challenges for IMS

Managing the expectations of the stakeholders is the most formidable

Migration to IMS is a quantum jump for most conventional telcos. Most of

2.5 Overview of IMS Architecture

Service or Application Plane

While these layers are discussed at length subsequently, it is worthwhile drawing

The Figure 2-1 shows the block diagram of IMS architecture.

Source: ReefPoint Systems

2.5.1 Application Plane

Application plane handles the following functions:

Provisioning of an infrastructural base for the organization of services

Although HSS appears logically to be one single database, it is made up of a

HSS employs varied protocols to manage the Authorization, Authentication and

A Subscriber Location Function (SLF) is needed to record the addresses of the

Routing the call signaling

2.5.3 User Plane

The Breakout Gateway Controller Functions (BGCF)

Signaling Gateway handles connectivity between IMS networks and traditional

Media Gateway handles functions such as processing, connecting and translating

Breakout Gateway Control Function (BGCF) controls the passage of calls

SIP is an application-layer protocol. It runs above the User Datagram Protocol

SIP is a signaling protocol. SIP is principally a mechanism employed to

2.6.4 The SIP Session

SIP User Agents

Figure illustrates the inter-relationship between SIP Components and Protocols.

In addition to specific drivers that we discuss below, IMS promises certain

3.3 IMS Supports the Drive to a Next Generation Network (NGN)

A new telecom network with broadband capabilities

3.4 Application Control: Central Control of IP based Services

3.6 Market Driver: Capital Savings

In the short-term, this will introduce new dedicated-purpose autonomous platforms

3.7 Market Driver: New Revenue Opportunities

The theme of IMS-based services will be “Faster, Smaller, and Cheaper”.

Service customization through subscriber preferences offers another wide range of

3.9 Market and Technology Driver: Operational Cost Savings

Since IMS platforms integrate common billing, support and maintenance

3.10 Market Driver: Service Creation and Delivery

3.11 Market and Technology Driver: Convergence Driving IMS