Turning virtual assets into real revenue: The Nokia Siemens Networks IP Multimedia Subsystem

Executive summary
Contents 02 03 05 07 10 11 Executive summary What IMS is all about Where IMS stands today Reaping the rewards of IMS in the real world Heading towards FMC, RCS, and LTE Conclusion
The mobile markets growth curve is leveling off. And doing business in a saturated market is tough, especially with margins tightening fast as so many new players rush in to engage in a relentless price competition. You can continue to join in the fray, leveraging your time-tested telco business model in a battle of diminishing returns. Or you can go all-IP, transforming your business to capitalize on your newfound ability to deliver sophisticated and compelling services. The best news is you can deliver these services across the same platform that keeps your voice business alive and well. IMS can be your passkey to prosperity. Use it to unlock the door to VoIPs efficiency and convenience, climb into a revenue-generating machine, and set off down the road to business transformation. It offers the only standardized, future-proof network architecture with open interfaces guaranteeing interoperability in multivendor environments. The industry has embraced IMS and it is ready to be deployed now. This paper looks at what IMS is, how it works, and what it can do to help you turn virtual IP assets into real revenue. Rather than gazing into a crystal ball through a lens of predictions, forecasts, and expectations to see the future, this paper cites examples of real customers who are reaping the rewards of IMS now in the real world.

IMS White Paper December 2008

What IMS is all about

The IP Multimedia Subsystem (IMS) features access-agnostic, standardized architecture that enables VoIP in fixed and mobile networks, Fixed Mobile Convergence (FMC), Rich Communication Suite (RCS) services, as well as Web 2.0 and multimedia service offerings. It paves a smooth evolutionary path towards an all-IP core and future 4G [Long Term Evolution (LTE) and Service System Architecture Evolution (SAE)] networks. IMS will be the LTE standards service enabler and provide access to PSTN and other communication networks. IP figures prominently in IMS, so a brief review of IP follows.
1200 1000 CFX power consumption based on T5220-cluster (in the IMS6.0 VoIP base line model, busy hour) 400 350 Subscribers [in K] Watt Subscribers [k] 300

Overload

800 Watt 600 400 200 0 0 10 20 30 40 50 60 70 80

250 200 150 100 50

90 100

CPU load

Figure 1: Saving energy during off-peak traffic

From the IP revolution

A common digital language spoken by most any electronic device or application, the Internet Protocol (IP) has sparked a major transformation in telecommunication around the world. IP technology puts the long tail of services within easy reach at little extra cost, so communication service providers (CSPs) are embracing IP enthusiastically.
IMS floor space evolution (1 million subscribers) 10 9 8 No of 42 RU racks 7 6 5 4 3 2 1 0 2006 IMS4.0 2008 Q4/2009 IMS6.x IMS7.0 2010 >2010 IMS7.x SF 890 (2x8 CPUs; 1.5 GHz dual core) with SE3320; AC SN T2000 (2x1 CPUs; 8 cores; 32 threads; 1.2 GHz, dual core) with ST2540; DC SN T5220 (2x1 CPUs; 8 cores; 32 threads; 1.2 GHz, dual core) with ST2540; DC SN T5220 (2x1 CPUs; 8 cores; 32 threads; 1.2 GHz; dual core) without disc array, DC

to true network convergence

IP enables operators to deliver rich communication and other data applications such as video sharing and peer-to-peer IP to subscribers. It will also enable future voice communication witness Internet-based Voice over IP (VoIP) services that are already catching up to conventional PSTN in many countries. So IP is the glue that will bind all kinds of networks together at the core. Such all-IP core networks will be able to treat mobile, fixed, and cable users to the same services, enabling true network convergence.

Figure 2: Smaller footprint, less power consumed

IMS White Paper December 2008

The service control mechanism of choice

IMS is the service control mechanism of choice in IP-based networks. It enables you to introduce, support, and mash up new services. Perhaps its strong selling point is that it does this so much easier and cheaper than the costlier silo-based approach of implementing separate control and billing structures for each service.

and tailored services. It supports different subscriber roles and use scenarios with multiple private and public identities dedicated to each user and chosen role.

Narrow vertical or broader horizontal focus?

IMS lets you build remarkably efficient networks, and retrain your business focus from narrow vertical services towards a broader variety of horizontal services. Imagine what the ability to provide IMS-based, differentiated quadruple-play service bundles and blended community services can do for your business. Now factor into this new business equation the means to serve users anywhere, anytime, across any access medium. With in-demand services, you can tap into a revenues stream that is profitable, sustainable, and defensible against Internet players. And that makes IMS your antidote to dwindling telephony revenue and gives you that special edge that puts you ahead of the crowd.

A common subscriber repository for reliable identity management

The upside of the ISP boom is that it affords you business opportunities in a new value chain. You can capitalize on your exclusive insight into subscribers information. IMS common subscriber repository offers the tools you need to provide secure and reliable identity management. Acting as an identity provider, you can enable trusted billing, unique authentication, and offer a single aggregation point. So IMS lets you steer services to orchestrate the IP experience, own the customer experience, and monetize information no one else is privy to.

Why IMS matters to you

Internet and Web 2.0 applications can be seen as a threat to operators revenues or as new business opportunities. IMS and opportunity go hand in hand because it can put you back into the drivers seat. Again, it lets you command and control services as you see fit, preventing Internet service providers (ISPs) from encroaching on your business. And it allows you to offer blended services and personalized services to satisfy all subscribers needs at home, on the road, at the hotspot, and in the office. Native multimedia capabilities make IMS a big building block for such personalized

Ready to go now
The industry soon saw IMS great potential. Standardization committees have since set out well-defined rules. Leading IMS vendors and the industry body GSMA ran extensive interoperability tests, proving that IMS is ready for deployment.

Vertical Telco services

Horizontal Internet services

VoIP

VoIP

Blended service

Voice CS

Data PS

Any access

Narrowband

Broadband

Figure 3: Bringing together the best of telco and IT to operators benefit

IMS White Paper December 2008

Where IMS stands today

Today IMS is the industry standard for VoIP, and as such is very much up to the task of enabling operators to add new services, quickly and easily. IMSpowered services are up and running, so maturity is no longer an issue. Vendors and operators have gained the insight that comes with experience, and extensive trials have optimized interoperability, scalability, and standards. VoIP is driving the adoption of IMS systems, with further applications such as rich communication services (RCS) and identity management following close behind. IMS is proving its merits as a business case every day in fixed/ hybrid VoIP networks. New services and applications are on their way, and their arrival will make for an even better business case.
Internet VoIP S Consumer VoIP S S Business VoIP S S Rich Com profiles S VoIP

NVS/hiQ

CVoIP

BVoIP

hiQ 4200

Pres.
MPM

SIP-AS
OEM

IMS

CFX-5000 CMS-8200 PCS-5000

Figure 4: Moving from simple VoIP to rich communication

The green factor

IMS runs on a commercial off-the-shelf IT platform. Its a green solution, leaving a small footprint and consuming little power. Whats more, it scales to serve very many subscribers. A no-frills, refreshingly simple IT platform, it nonetheless provides carrier-grade reliability. A distributed Home Subscriber Server (HSSd) architecture, where the subscriber repository and front end (FE) application are separate, cuts operating expenditure (OPEX). The scalable, distributed architecture not only optimizes capital expenditure (CAPEX), it also makes multi-site geo-redundancy easy to implement and assures smooth migration starting with small configurations. And it supports large global IMS subscriber databases without requiring changes to the underlying server hardware

Flexibility matters
The magic word to making VoIP services work is flexibility. It is the key to integrating networks and services new and old, earning users acceptance, and driving down OPEX. Our solutioneers understand the importance of flexibility, and have endowed IMS with leadingedge in routing, service triggering, and PSTN/PLMN interworking capabilities. You can choose from a host of built-in features that adapt the CSCF routing engines behavior with remarkable versatility. These unique capabilities and this tremendous flexibility make our IMS a seamless fit in the heart of the service network.

ability and efficiency. It is very well received on the market, not least because the big OPEX savings it brings to the telecommunication business. A key component for subscriber-centric services, it is equipped with different front-ends such as the Home Location Register (HLR) or HSS and a central database. This common repository for all subscriber data increases flexibility and lowers costs by providing a versatile yet simple means of Provisioning from a single point and more ef ciently managing subscriber data Introducing differentiating services quickly and cost-ef ciently Increasing reliability with three-site geo redundancy Putting an end to subscriber data inconsistencies Streamlining hardware and software costs with a single repository Automatically detecting inactive subscribers to make the most dynamic resources

Tapping a wellspring of business opportunity

As outlined in the first chapter, subscriber info is a wellspring of business opportunity. To tap it, you need the ability to store and manage all different kinds of subscriber identities. And you need efficient means to handle a growing number of increasingly sophisticated services. Our brand of IMS, featuring an HSS and a Common Subscriber Database that stores all other application data for the subscriber, gives you this

IMS White Paper December 2008

Vertical integration

(Multiple platforms and high cost)

Services

Existing and new emerging services

Services contol convergence Seamless service single sign on; charging Backbone convergence more efficient use of network Access convergence Bundle triple play services Terminal convergence Seamless service dual mode handsets

Figure 5: Converged to boost efficiency and cut costs

Mobile Networks

Access transport & switching networks

PSTN / ISDN

Data / IP Networks

CATV

Multi-services backbone Wireline access Wireline access

Mature and making money

Tier 1 CSPs have already rolled out IMS, and these case studies attest to its maturity. IMS-based networks are up and running, delivering VoIP services to subscribers. Providers are busy turning up new services that afford users richer communication experiences and create new business opportunities.

IMS offers tremendous flexibility with feature extensibility, the ability to mesh with legacy network and services, and integration ease all built in. It provides integrated voice call continuity and the ability to deliver any service seamlessly across any access medium. Whats more, it offers a cost-efficient way of penetrating the WiFi domain of indoor coverage and hotspots. The subscriber database scales to any size, so you can start small at low cost, and grow the database cost-efficiently all the way up to a fully integrated solution with One-NDS, our partner Apertios ultra robust open standards directory. This platform comes with multiplicity and flexibility in its DNA: It handles multiple user IDs for multiple private and public address; manages multiple devices, multiple users, and groups; adapts to meet users changing needs. And to top it all off, IMS is a mature, carrier-class solution with carrier grade availability, including geo redundancy. It boasts built-in border control capabilities for the highest network security at lowest operating cost, and satisfies the statutory provisions for emergency call handling and lawful interception.

Recapping the highlights

Before we move on to examine what IMS is doing for our customers now in the real world, let us quickly review and expand on what IMS can do for you. Our IP Multimedia Subsystem: Lets you mine the rich vein of resources in your database subscriber data and identities Features native standard implementation, open interfaces, multivendor integration, and full scalability Drives down OPEX with the highestperformance IT hardware, the smallest footprint, and lowest power consumption Gears you up to compete with rivals in the IT and Internet arena now

IMS White Paper December 2008

Reaping the rewards of IMS in the real world

IMS is a key technology to further develop multimedia services for next generation telecommunication network. Chunghwa is proud to be the first operator in Taiwan and in Asia Pacific to deploy IMSbased multimedia services. Mr. Hsieh Chun-Ming, former President of Taiwan Northern Business Group, Chunghwa Telecom
Our powerful IMS can certainly benefit your business, as the following chapter attests. It presents two real-world case studies of customers who are capitalizing on the Nokia Siemens Networks IP Multimedia Subsystem to widen margins and make more money.

Going nationwide with an IP platform

The company rolled out a fiber-to-thehome/building, IP-based network and HSDPA to provide nationwide coverage. At its core is a fixed-mobile convergence solution with IMS serving as the horizontal control layer. This intelligent and flexible network enables CHT to: Provide IP-converged services and solutions to subscribers Capitalize on new business opportunities to grow revenues Enable universal connectivity, convergence, and cost reduction Quickly provide creative and differential services Help it transform from a carrier to a fully integrated CSP

Chunghwa Telecom a carrier reinvents itself to rise to new challenges

Seeking to shore up receding margins and keep the competition at bay, Chunghwa Telecom opted to reinvent itself as a CSP. To this end, Taiwans sole nationwide integrated operator teamed up with us to build a platform for launching a new brand of business an IMS-based fixed-mobile convergence solution with an all-IP core. Aiming to tap new revenue streams and offset fixed line losses with new fixed and mobile technologies, its aggressive investment strategy centered on next-generation network (NGN) infrastructure powered by IMS.

SDF
Applications
VoIP IP centrex Messaging

Services & applications with common session control

(via 3GPP ISC interface)

IMS Core
PCRF PCS5000 CSCF CFX5000 HSS

Centrlized integration with platforms for provisioning, OA&M, charging...

OSS

BSS

Prov.

AAA

One-NDS (C-NTDB)

SDF
CCS/PSTN interworking
Fixed/ mobile MGCF

IN

Presence

OMA PoC

Group lists

CMS-8200 Fixed broadband access S Wireless access Mobile access

DSLAM/ CMTS

Public internet S Broadband (DSL/Cable) S

WLAN

2G/3G Radio access S S

PSTN

Figure 6: A look at our IMS structure

IMS White Paper December 2008

Smaller, better, and built on proven products

The core system builds on our IMS products, including CFX-5000 and CMS-8200. hiG1100 provides the trunk media gateway, and hiE9200 controls the media gateway, interfacing with and enhancing the PSTN system. Migrating from PSTN to IP means a smaller footprint, lower power consumption, more efficient uninterruptible power supply, and less air-conditioning. All this can slash costs by as much as 90% on the control plane. And optical transport and IP backbone network integration can cut OPEX by 50%.

We liked the technical solution provided by Nokia Siemens Networks. They were quite advanced in the development of the platform. And secondly, as a cable operator trying to operate efficiently, we cannot afford too many suppliers, too many parties involved in a complex solution. The projects carried out so far, the initial telephony rollout, and now the IMS project have proven that Nokia Siemens Networks has the right technology and provides an excellent organization for executing complex projects. Martin Kull, Chief Technology Officer, Com Hem

Converge and surge towards rich communications

Now CHT is able to quickly launch and enrich new services such as parallel ringing, voice call continuity, and quadruple-play. With horizontal call control, third parties are easily integrated on the fly. The network is ready to deliver rich communication services when the first RCS-enabled mobile handsets hit the market. And the IMS platform boosts the fiber networks bandwidth capacity, allowing CHT to integrate combinations of voice, video, and data, including real-time, interactive, and on-demand services. Multimedia on demand, HDTV, home surveillance, corporate high speed network connections, and VPN services are sure to spark even greater growth. With integrated end devices including dual-mode handsets for voice call continuity subscribers will enjoy affordable, convenient access to all FMC services. This powerful IMS platform enables CHT to realize its business vision, transforming quickly from a network carrier to a fully integrated CSP.

ComHem a European cable operator capitalizes on IMS ability to cut costs, connect other operators, and launch new services Stepping up to sophisticated voice services
The leading cable operator in Sweden, Com Hem branched out into telephony in 2004 and became Swedens leading supplier of triple-play services. The subscriber base thrived, growing far quicker than expected and soon outstripping the softswitchs capacity. Seeking a more scalable architecture that could keep pace with this surging growth, Com Hem turned to the same trusted solutioneers who had helped make the move to telephony so smooth.

IMS White Paper December 2008

IMS is a key technology to further develop VoIP-services and next generation IP-telephony. Becoming the first operator in Sweden to use IMS in a full commercial deployment is strategically important since it further expands our competitive position and allows us to offer the best telephony service.

Driving down costs and keeping competition at bay

Swedish subscribers are tech-savvy; competition on this mature market is fierce. Com Hem was determined to defend its position with one key differentiator, a compelling and comprehensive triple-play package. Whats more, it aimed to extend its market share with another key differentiator, unrivaled network capacity.

First in with IMS and the frontrunner in VoIP

Today this IMS platform provides voice over IP (VoIP) service and connects further networks to enable alliances with third-party providers. Being the first operator in Sweden to deploy IMS is also a strategic advantage because it extends Com Hems lead in IP telephony and enables the company to roll out even better and more sophisticated services that could never happen in a copper network. Marking a major stride towards convergence, this successful deployment and Com Hems satisfaction with the solution attests to IMS maturity and strategic importance to operators seeking to offer richer communications services.

Voice today, video tomorrow

Looking beyond telephony, voice, and circuit-switched services, the company sought a platform that would enable its developers to turn up new, differentiating offerings such as chat and video services. Initial outlay, OPEX, and interconnectivity with mobile providers were also main concerns. Just four months later, Com Hem had it all the means to rapidly roll out new features and services, partner with other operators, and save money in both investment up front and operating expenses further down the road courtesy of our IMS Core and SURPASS hiQ 8000 VoIP application server.

IMS White Paper December 2008

Heading towards FMC, RCS, and LTE

Building the broadband base
With access speeds ranging up to 100 Mbits in fixed, cable, and mobile (LTE) access networks available in the near future, people all over the world will enjoy high-bandwidth applications like TV and video. IPTV is sure to drive broadband traffic in many countries, as will music, image, video uploads and downloads. High-end fixed and converged service bundles with great customer appeal are in the offing. IMS will deliver IPTV and multimedia services over all access networks in full converged mode. It brings TV, video on demand, and other multimedia and premium content to any device and all users. You can control services across all these devices and networks. Seamless session continuity ensures uninterrupted handovers from one access network to another. IPTV and multimedia services can be personalized and used freely. And you can combine communication and community services with IPTV to enable richer television and communication experiences for customers and a more rewarding job experience for your accountants.
70 LTE

VoIP capacity
Downlink Uplink

IMS
VCC

60 50 40 30

HSPA

CS RAN

MSC

20 10 0 HSPA R6 LTE

Figure 7: Higher spectral efficiency and enhanced throughput with LTE

Gearing up for Long Term Evolution

Purely a packet-switched network with voice services based on VoIP, LTE will offer acceptable QoS and network efficiency for VoIP. Delivering voice over IMS, LTE will be from 60 to 100% more efficient than comparable 3G circuit-switched solutions. IMS provides key components for migrating to LTE, with voice call continuity supporting the transition from GSM to LTE. Users benefit because even if LTE coverage drops out, the call continues over 2G/3G. But IMS does so much more than that. It is the core control for LTE networks because LTE architecture is all-IP from an end to end. Operators deploying LTE will be expected to provide richer services beyond VoIP. IMS not only supports these multimedia services, it enables migration to LTE by ensuring service continuity between the networks 3G and LTE sections.

Acting as the service control layer on top of LTE for voice and multimedia services, IMS also provides policy and QoS control for 3GPP and non-3GPP access. It handles presence info, enables presence-enhanced phonebooks, lets you add other services to a call, and delivers realtime packet services such as VoIP and multimedia in high quality over all access networks. Nokia Siemens Networks, the leader in the IMS-based FMC market, and Nokia, the worlds no. 1 device and client developer, are both founding members of the RCS Initiative. Whats more, we spearheaded the development of a fully GSMA RCS-compliant solution and continue to chart its evolutionary course.

Bringing down the barriers between telecommunications and the Internet with RCS
We have joined forces with Nokia to ensure mobile handsets, tablet devices, and PCs interoperate with networks and services. This is a verified part of the RCS Initiatives IOT framework. Our solution uses SIM authentication to extend service coverage to the public Internet, and enables new access methods and devices to exploit legacy services. It lets you create, customize, brand, and integrate service packages that support rich calls. With the benefit of these services, PCs and advanced mobile handsets can augment and replace conventional telephones and IP desk phones.

10

IMS White Paper December 2008

Conclusion
IMS is a real-time service enabler. Its architecture has long been specified, and extends into the mobile, fixed, and Internet domains. As the name IP Multimedia Subsystem suggests, the underlying technology bases on Internet protocols, and the architecture is designed to handle multiple and varied media streams encompassing voice, video, audio, and real-time data.

for a powerful solution

Our brand of IMS can help you invest less to gear up for the future and differentiate your offering. It has been deployed commercially by mobile, fixed, cable, and convergent communications service providers. Its modular structure supports fixed and mobile networks, including 3GPP2 and ETSI TISPAN architecture. It speaks the language of legacy implementations such as subscriber data management solutions, and understands mobile and fixed softswitching. Best of all, we can tailor and fine-tune IMS to suit your needs and business strategy.

Powerful arguments
IMS cuts costs by boosting the efficiency of routing calls to softswitches and media gateways and interconnecting with multiple operators. It is a scalable, future-proof platform that grows with the subscriber base and supports quadruple-play convergence. It cuts OPEX, especially overhead for interconnecting with multiple operators, and satisfies the rising demands of a fast-growing customer base. And it lets you develop and quickly introduce new voice and non-voice services.

Endorsements earned for exceptional promise and excellent performance

Over 155 of our IMS core and applications are up and running in wireless and wireline networks worldwide, and more than 50 operators around the world are trialing VoIP services based on our IMS platform. These companies are confident in IMS ability to turn virtual assets into real revenue. Our brand of IMS is moving up in the world, and youre welcome to climb aboard.

IMS White Paper December 2008

11

Nokia Siemens Networks P.O. Box 1 FI-02022 NOKIA SIEMENS NETWORKS Finland Visiting address: Karaportti 3, ESPOO, Finland Switchboard +358 71 400 4000 (Finland) Switchboard +49 89 5159 01 (Germany)
Order No.C401-00345-WP-200812-1-EN Copyright 2008 Nokia Siemens Networks. All rights reserved. Nokia is a registered trademark of Nokia Corporation, Siemens is a registered trademark of Siemens AG. The wave logo is a trademark of Nokia Siemens Networks Oy. Other company and product names mentioned in this document may be trademarks of their respective owners, and they are mentioned for identification purposes only. This publication is issued to provide information only and is not to form part of any order contract. The products and services described herein are subject to availability and change without notice.

www.nokiasiemensnetworks.com