LTE Signaling and Roaming Opportunities with iBasis

LTE World Summit 2012 May 2012, Barcelona

Agenda

• About iBasis

• The importance and challenge of LTE roaming

• The benefits of a central exchange model

• Conclusions

Introducing iBasis Connecting the All-IP World

• One of the world’s largest international carriers – Interconnects with 2,000 carriers, mobile operators and service providers globally

– And growing: 2011 Revenue +12% to $1.36 billion

• Unique combination of experience – best of both worlds – Comprehensive voice and mobile services portfolio and IP innovation leadership

– Pioneer in IP for 15+ years, serving Internet players and operators

– Core IP-based infrastructure, both for voice, data (GRX) and convergence (IPX)

• Emerging leader in Signaling innovation – Comprehensive solution portfolio to unleash the power

of Signaling, the nervous system of your connectivity

– More than 660 destinations covering 210 countries, 90% direct and on-net

– Over 200 billion SS7 MSUs handled in 2011

– Enabling a graceful revolution to all-IP signaling in 4G/LTE

A Global Business Partner

A Global Network Advantage Ubiquitous Global IP MPLS Coverage

1,000+ Points of Presence in >100 Countries Sales & Operational Support in 20 Countries

DRA

DRA

The Roaming Opportunity

• Roaming revenues to double from 2010 to 2015 (Visiongain, Informa)

• Mainly driven by data roaming revenues

– Global data roaming traffic will jump from 688 million MB in 2011 to 1.9 billion MB in 2015 (Informa)

• Meanwhile, “LTE is the fastest growing mobile technology ever” (GSA)

• So what does that mean for LTE Roaming?

– “Without it, mobile operators will be at a serious disadvantage in generating the revenues required to recoup their investment in LTE technologies.” (Informa)

LTE Roaming & Signaling The Challenge Ahead

Source: Informa Telecoms & Media’s LTE Survey 2011, n= 527

9

The Diameter Dilemma The n2-problem…but worse

MME

HSS

PCRF

MME

HSS

PCRF

Operator C Operator D S6a

S9

S6a S6a

S6a

S9

MME

HSS

PCRF

Operator A S6a

S9

S6a

DA MME

HSS

PCRF

Operator B

S6a

S6a

S9

DA

DA DA

RCS AS RCS AS

RCS AS RCS AS

Sh Sh

Sh Sh

9

Challenges • Building roaming connections will require significant time and cost • Need new IP interconnects to be created • Complexity of managing full-mesh topology • Interoperability between Diameter implementations • Interworking with 2G/3G networks

10

The Diameter Dilemma Time to Market, User Experience, Profitability

10

Result: difficulties in

• monetizing the booming data roaming opportunity

– LTE users will expect the same user experience when roaming

– (regulated) low data roaming tariffs will create enormous demand

– Attract 3G users by offering 4G speeds when roaming

• monetizing the national LTE opportunity

– Spotty initial LTE coverage will generate national LTE roaming opportunity to offer consistent user experience

• Need to ensure LTE profitability

– roaming cost are unnecessary high, while roaming prices plummet

11

LTE Roaming Made Easy… Introducing The LTE Signaling Exchange

Benefits of the LSX approach: • Minimize the cost of building roaming connections • A single connection to a central LSX • Simplified topology • Mediation between Diameter implementations • Facilitates Interworking with 2G/3G networks

Operator C Operator D

Operator A

DA

Operator B

DA

DA DA LSX

11

12 12

The iBasis LSX Proposal

• Join our LTE Signaling Exchange Test Community: The iBasis LSX Sandbox

• Starting now! – Testing will include:

• Basic Roaming • Policy Control and Charging • Diameter Interoperability • Signaling Accounting • MAP-Diameter Interworking

LTE Signaling and Roaming Opportunities with iBasis