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  • 7/28/2019 Tekelec ThinkingNetworks WP

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    THE

    THINKINGNETWORKS

    REVOLUTION:

    WHITE PAPER

    TABLE OF CONTENTS

    Introduction 2

    Creating New Revenue 2

    Facing New Competition3

    Leveraging Valuable Assets 4

    Critical Juncture 5

    Evolving to ThinkingNetworks 5

    Phase 1: New Diameter Network 6

    Phase 2: CloudXG7

    Phase 3: MobileSocial 9

    Phase 4: ThinkingNetworks 11

    Conclusion13

    A CALL TO ACTION FOR DIGITAL LIFESTYLE PROVIDERS

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    2

    THE THINKINGNETWORKS

    REVOLUTION

    INTRODUCTION

    The convergence o universal mobile broadband access, virtually unlimited content, and

    smart mobile devices has unleashed a seemingly insatiable consumer demand or more

    content, applications, and services That escalating demand is impacting nearly every

    aspect o the industry, ushering in a radical transormation in revenue streams, business

    models, and value chains As a result, operators nd themselves at a critical juncture The

    stakes have never been higher and timing never more critical To capture and monetize

    the mobile data opportunity, service providers must act quickly to transorm the way they

    approach their business and their networks, transitioning rom being network and device

    providers to digital liestyle providers Underpinning this shit is the need to evolve

    existing network architectures to more fexible, sotware-dened ThinkingNetworks that

    can manage dynamic applications, oster innovation, and respond in real-time to rapidly

    changing network events and service demands

    CREATING NEW REVENUE

    To date, mobile operator revenue streams have been dominated by three main waves:

    voice revenue derived rom basic voice communication and mobility; messaging revenue

    generated by peer-to-peer short message service (SMS); and access revenue driven largely by

    data demand Each revenue wave has ollowed a standard adoption growth curve When

    penetration hits 70 to 90 percent o the subscriber base, revenues peak and then begin to

    decline The rate at which these revenue curves peak and decline is dependent on a number

    o actors, including competitive pressures, regional economics, and usage models1

    Figure 1. Service Provider Revenue Growth Curves

    Voice revenue already is in decline in most developed markets By 2013, its predicted

    that voice revenue globally will all below the 60 percent threshold2 The messaging and

    access waves have helped oset the loss o voice revenue Messaging is expected to

    increase globally at a compound annual growth rate o three percent over the next ve

    years3 However, new IP message services like WhatsApp and iMessage are beginning to

    attract consumers attention, particularly those with smartphones This shit resulted in

    $22 billion in lost messaging revenues in 2012 Between 2012 and 2020, it is projected

    Insatiable consumer

    demand or mobile

    applications and

    content is impacting

    nearly every aspect

    o the industry,

    ushering in a radical

    transormation in

    revenue streams,

    business models, and

    value chains

    1 Chetan Sharma, Operators Dilemma: The 4th Wave, July 20122 Chetan Sharma

    3 Inorma Telecoms & Media, Press release: SMS will remain more popular than mobile messaging

    apps over next ve years, May 29, 2012

    Voice

    NetRevenue

    Subscriber Penetration

    Messaging Access Digital Lifestyle

    Service

    Chetan Sharma Consulting, 2012

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    3

    THE THINKINGNETWORKS

    REVOLUTION

    that operators will experience $479 billion in cumulative lost revenues to over-the-top

    (OTT) voice over IP (VoIP) providers4

    The third revenue wave access is in a growth phase globally However, the margin

    pressure on these revenues is the greatest as capacity demand is doubling every year in

    most major markets, which is driving up the costs to realize this revenue wave Revenue

    growth is predicted to continue or the next three to ve years beore it, too, reaches its

    peak At that point, all existing revenue waves will be in decline 5

    Clearly, operators need to look toward a new revenue wave to compensate or the

    inevitable decline in voice, messaging, and access The ourth revenue wave digital

    liestyle services is underway It consists o the mobilization o various existing services

    commerce, payments, health, entertainment, and advertising and the convergence omobile communications, entertainment, and social media that will create a new mobile

    social ecosystem

    FACING NEW COMPETITION

    As the nature o communications changes, competition, business models, and value

    chains are also evolving With the previous three revenue waves, consumer services,

    inrastructure, and value chains were generally dominated by and controlled by the service

    provider As a result, the competitive playing eld largely was limited to other operators

    This new mobile social ecosystem brings with it a new breed o OTT competitors who

    understand the data savvy consumer They are well unded, not saddled with legacy

    inrastructure and operations, and oer innovative, valuable services As OTT providers

    garner an increasing share o the market, theyre creating a new dynamic called data in,

    dollars out Subscriber consumption o OTT content and services is responsible or the

    bulk o the data trac being generated on mobile networks; however, mobile operators

    realize little to none o the revenue being generated by these services That leaves

    operators in the dicult position o providing the costly resources to drive bandwidth-

    intensive services but playing a smaller role in the application and device revenue chain

    The new OTT competitors are successully decoupling applications rom the underlying

    inrastructure They are amassing large volumes o valuable subscriber prole and payment

    inormation that can be used to create a highly personalized subscriber experiences,

    sophisticated service packages, and advertising Moreover, they are building direct

    commercial relationships with subscribers As a result, operators are losing their brand

    relevance in the mobile social ecosystem The top our global brands Google, Apple,

    Microsot, and IBM are not service providers; they are technology providers6 In this

    intensely competitive landscape, brand is a powerul strategic weapon that can be

    leveraged to oster customer loyalty and generate signicant revenue through the creation

    o an ecosystem that is valuable to its consumers

    4 Ovum, The Future o Voice, July 2012

    5 Chetan Sharma

    6 Ernst & Young, The Top Ten Risks in Telecommunications, 2012

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    THE THINKINGNETWORKS

    REVOLUTION

    Operators cannot block this trend, but, i they architect their networks properly, they

    can leverage it to create new business relationships and models To solidiy their stake

    in the mobile social ecosystem, operators must shit their business strategy and movebeyond providing access to mobile data services They must ocus squarely on creating

    value in their subscribers minds by oering innovative services plans, adding value to OTT

    applications, and developing new revenue sources such as loyalty programs and mobile

    advertising Operators who are successul with these initiatives will strengthen their own

    brands with their subscribers

    LEVERAGING VALUABLE ASSETS

    Operators hold a trove o assets that can enhance applications resources that can be

    parlayed into new service models and resh revenue streams They own the networks that

    carry content to virtually every connected device and the relationships with the millions

    o subscribers who depend on them or always-on connectivity Providers are sitting on a

    cache o real-time subscriber and network data that gives them unique consumer insights

    ew businesses can rival Moreover, by protecting their subscribers personal data and

    inormation, they have established a trust actor with their consumers

    The challenge is to intelligently leverage those subscriber and network assets by combining

    them in new and innovative ways to create a more valuable, localized, and relevant

    subscriber experience Recent research indicates that subscribers are willing to pay at least

    three dollars more per month or individual services like social networking, cloud services,

    VoIP, and video Moreover, when those services are bundled together, consumers are

    willing to pay an extra six dollars per month7 Ernst & Young notes that repurposing

    customer data in new ways can enable operators to improve their market positioning,

    through advantages such as better business intelligence or example, anticipating

    market and customer changes beore competitors and reusing network data or

    collaborative partners and sector verticals8

    . i .

    i

    i

    i

    i

    i

    i

    i ii

    iI

    i i

    i

    i

    ii

    i

    i

    I

    i

    iI ii

    Any FOURServices

    Any THREEServices

    Any TWOServices

    RemoteLock / Wipe

    Cloud Business

    Cloud Consumer

    Televisionand Movies

    Voiceover IP

    SportsNews /

    Video Clips

    Multi-PlayerGaming

    SocialNetworking

    WebBrowsing

    E-Mail$0

    $3

    $6

    $9

    $12

    $15

    WillingnesstoPay

    ($)

    PercentageInteresteda

    tanyPrice(%)

    CompositeUSAUKKoreaIndiaBrazil

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    Source: Signals Research Group, 2013

    Figure 2. Willingness to Pay or Service Bundles, o those Interested, by Country

    To solidiy their stake

    in the mobile social

    ecosystem, operators

    must shit their

    business strategy

    and move beyond

    providing access to

    mobile data services

    They must ocus

    squarely on oering

    innovative services

    plans, adding value

    to OTT applications,

    and developing new

    revenue sources such

    as mobile advertising

    7 Signals Research Group, Mobile Broadband Pricing and Bundling: The Voice o the Consumer, 2013

    8 Ernst & Young, 2012

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    THE THINKINGNETWORKS

    REVOLUTION

    CRITICAL JUNCTURE

    Operators cant aord to be late to the game Mobile device and OTT application

    providers already are poised to capture their markets and customers I operators hope

    to take advantage o market disruptions and capitalize on the digital liestyle revenue

    wave, the time to act is now They must move quickly to rearchitect their networks into

    highly adaptable and fexible ThinkingNetworks Those that delay might nd themselves

    consumed by the powerul orces o the competitive markets and some relegated to the

    dustbin o mobile history9

    How operators react to and maneuver in the new mobile social environment will dene

    their success or ailure over the next decade They need to adapt their business models to

    a wider ecosystem and make rm decisions about which revenue sources they are going

    to target within that broader environment10 Will they ollow the utility service path,

    supplying the network inrastructure or third-party application and service providers? Will

    they serve as enablers, providing a robust network, application programming interaces

    (APIs), and data that power the most useul and popular consumer applications and

    services? Or, will they retool their business models and open their network or innovation

    to become digital liestyle providers, leveraging the mobile social ecosystem, social media,

    entertainment, rewards programs, and mobile commerce partners?

    EVOLVING TO THINKINGNETWORKS

    Existing networks were not built to handle dynamic applications, oster innovation, and

    respond quickly to rapidly changing markets to meet the demands o the connected world

    To support the digital lie style, the network must provide more than a connection It must

    have an analytical view o the relationship between ALL o the services it carries the

    characteristics o each as well as the impact o one service on another For example, i

    demand or one service surges, the network must understand how that surge may impact

    other services and ensure that their service quality isnt degraded To reinvent themselves

    as digital liestyle providers, operators will need to evolve their networks into highly

    ecient sotware-dened ThinkingNetworks

    The ThinkingNetworks vision embodies an architectural and operational evolution o

    network capabilities It creates a more ecient and fexible network architecture that

    responds dynamically to changing subscriber and service needs ThinkingNetworks

    intelligently orchestrate the interaction between services and network elements to make

    real-time decisions on who, what, when, where, and how resources are allocated They

    ensure that subscribers receive the appropriate quality o service (QoS) and quality o

    experience (QoE) based on their subscription entitlement, device type, and application

    requirements This is accomplished on demand - without having to over-provision each

    network domain

    I operators hope to

    take advantage o

    market disruptions and

    capitalize on the digital

    liestyle revenue wave,

    the time to act is now

    They must move quickly

    to rearchitect their

    networks into highly

    adaptable and fexible

    ThinkingNetworks

    9 Chetan Sharma, 2012

    10 Ernst & Young, 2012

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    THE THINKINGNETWORKS

    REVOLUTION

    Centralized management, virtualized application sotware, and the programmable nature

    o ThinkingNetworks enable aster, more responsive service deployment Operators can

    create new services on-the-fy Furthermore, they can develop new and innovative businessmodels and relationships with third parties in real-time without having to re-architect the

    network

    ThinkingNetworks bring the architectural elasticity and agility to mobile data networks,

    which are essential to enabling the new business models and services necessary or

    operators to become digital liestyle providers The creation o sotware-dened

    ThinkingNetworks will be an evolutionary process a transition built on our overlapping

    phases

    MobileSocialRepository

    Mobile PolicyGateway

    OTT ApplicationManager

    ThinkingNetworks

    Network EventListener

    Policy-DirectedSDN Controller

    MobileSocial

    CloudXG

    CloudXGOrchestrator

    CloudXGVirtualizer

    CloudXGFlow Manager

    New Diameter

    NetworkPolicyServer

    DiameterSignalingRouter

    SubscriberProle

    Repository

    Figure 3: The Four Phases o ThinkingNetworks

    PHASE 1: NEW DIAMETER NETWORK

    The New Diameter Network (NDN) is the oundation or ThinkingNetworks In this

    phase, an independent, intelligent control layer is created to orchestrate Diameter-based

    communication among gateways, policy servers, charging systems, subscriber prole

    databases, and mobility and session management unctions This phase places operators in

    the position to scale the network or growth and to monetize mobile data

    The three most critical NDN elements are:

    The Diameter Signaling Router (DSR), the central nervous system o the NDN,

    provides the scalability, reliability and fexibility in the core network to manage mobile

    data and signaling growth

    The Policy Server (PCRF), the network brain, provides the real-time logic and rules

    that enable new business models and revenue streams

    The Subscriber Profle Repository (SPR), the networks memory, personalizes those

    rules based on a subscribers prole, state and usage data

    Creating a scalable Diameter network is critical to a successul mobile data business

    model since mobile networks, especially those powered by LTE gear, will be bombarded

    with control trac that will eventually overwhelm the limited routing capabilities o

    Diameter-based equipment, such as policy servers, online charging systems and subscriber

    To support the digital

    lie style, the network

    must provide more

    than a connection It

    must have an analytical

    view o the relationship

    between ALL o the

    services it carries the

    characteristics o each

    as well as the impact o

    one service on another

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    THE THINKINGNETWORKS

    REVOLUTION

    data repositories11 The NDN will continue to be critical because the industry is in the

    early days o Diameter signaling growth As service providers evolve to become digital

    liestyle providers, the amount o Diameter trac being managed will escalate as theyexpose policy, charging, analytics and subscriber data to enhance OTT applications and

    mobile advertising, machine-to-machine services (M2M), and mobile commerce services

    Given that Diameter signaling trac is expected to grow at a compound annual growth

    rate (CAGR) o 252 percent between 2011 and 2016, managing the pending Diameter

    signaling growth is a top priority or mobile operators12

    Diametertransactions/second/su

    bscribers

    Network TPS

    OTT/Advertising TPS

    Payment TPS

    2012 2017Time

    M2M TPS

    Figure 4. Diameter Signaling Trafc Growth

    With the NDN in place, operators can leverage data in subscriber databases, which are

    accessible by policy servers, Diameter routers, and other equipment Moreover, they can

    begin to monetize the mobile Internet with basic use cases like tiered services, shared data

    plans, day passes, turbo boosts, and third-party subsidized data access13

    PHASE 2: CLOUDXGTM

    In this second phase o network evolution, the intelligent NDN layer moves to the cloudThis represents a undamental shit in the way operators improve network scalability

    and fexibility With CloudXG, operators leverage virtualization and sotware-dened

    network (SDN) technologies to deliver dynamic and elastic scalability in terms o sessions,

    transactions, and throughput This is accomplished by standard hardware supported by the

    virtualization middleware layer or hypervisor This phase is a critical step towards enabling

    fexible network streams or dierent types o services It also helps operators reduce

    capital and operational expenditures by creating more fexible network architecture and

    Creating a scalable

    Diameter network is

    critical to a successul

    mobile data business

    model since mobile

    networks, especially

    those powered by

    LTE gear, will be

    bombarded with

    control trac that

    will eventually

    overwhelm the limited

    routing capabilities

    o Diameter-based

    equipment, such as

    policy servers, online

    charging systems

    and subscriber data

    repositories

    (Tekelec, LTE Diameter

    Signaling Index, 2012)

    11Sizing Up the Diameter Signaling Market: Will It Live Up to the Hype?Current Analysis,December 2011

    12 Tekelec LTE Diameter Signaling Index: Forecast Report and Analysis 2011-2011, Tekelec, 2012

    13The New Diameter Network, Tekelec 2012

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    THE THINKINGNETWORKS

    REVOLUTION

    deployment options For example, operators no longer need to build excess core network

    capacity to address peak usage as virtual resources can be temporarily moved to dierent

    locations based on changing trac levels

    This CloudXG phase is composed o our main components:

    The Cloud Platorm provides the common virtualization hypervisor or the NDN

    components using o-the-shel hardware

    The Cloud Virtualizer uses virtualization technologies to dynamically add/remove

    compute resources to the available hardware pool

    The Cloud Orchestrator provides dynamic allocation o NDN compute resources

    as needed and tells the Cloud Virtualizer and Cloud Flow Manager to instantiate

    additional Diameter resources For example, i the load on a Diameter SignalingRouter in a particular location recedes and there is a surge in the need or Policy

    Server resources, server blades can be reallocated to additional Policy Server instances

    This can be done with stateul binding to maintain sessions and context or the newly

    instantiated resources

    The Cloud Flow Manager uses SDN technologies such as OpenFlow to dynamically

    manipulate trac fows entering or leaving the cloud For example, when a network

    with one active Diameter Signaling Router experiences a signaling trac surge,

    additional server blades with DSR instances can be added to manage it The Cloud

    Orchestrator instructs the Cloud Flow Manager to direct signaling fows to the newly

    instantiated Diameter resources in the cloud

    The CloudXG phase also denes a new model or how services are oered to subscribers

    It is the rst step in enabling mobile service providers to expose key assets and capabilities

    network services, policy rules, subscriber data, and charging proles as a service to

    OTT, cloud, and M2M service providers as well as consumer and enterprise subscribers

    CloudXG Orchestrator

    External Traffic

    CloudXG Flow Manager

    Hardware Pool

    CloudXG Virtualizer

    DSRVirtual

    Machine

    SPRVirtual

    Machine

    PCRFVirtual

    Machine

    Figure 5. CloudXG Phase

    With CloudXG,

    operators leverage

    virtualization andsotware-dened

    network (SDN)

    technologies to deliver

    dynamic and elastic

    scalability in terms o

    sessions, transactions,

    and throughput

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    THE THINKINGNETWORKS

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    PHASE 3: MOBILESOCIAL

    The scalable intelligence, capacity and control provided in the CloudXG phase, allows

    operators to extend their business models beyond access services With the transition to

    the MobileSocial phase, mobile operators leverage network and subscriber intelligence

    to provide valuable opt-in, mobile advertising, and other personalized oers to over-the-

    top application and content providers This paves the way or them to become digital

    liestyle providers In this phase, operators dont just passively acilitate the fow o services

    between the subscriber and OTT service providers They play an active push role in

    determining what, when, where, and how services are oered to a particular subscriber

    based on many actors including specic usage behavior, preerences, and service

    agreements Operators make those determinations by collecting and analyzing the vast

    amount o dynamic subscriber data that is generated every second in their networks as

    well as rom Big Data sources In many cases, this data is unique to network operators and

    extremely valuable to advertisers and content providers ghting or consumers attention

    Today, however, this inormation is oten trapped within the network, and operators lack

    the tools to eectively monetize it

    In this phase, policys reach becomes pervasive as it becomes the primary engine or

    innovation and dierentiation Policys role expands beyond the boundaries o the core

    network to subscriber devices, M2M devices, cloud providers, and service delivery and OTT

    provider platorms It acts as the network brain, orchestrating the subscriber experience, by

    leveraging network, subscriber, device, and application awareness, together with Diameter

    signaling routing It enables operators to dynamically control the when, where and how

    o service delivery For example, it may not be appropriate or an operator to deliver an ad

    during business hours Using knowledge o the subscribers opt-in preerences and daily

    behavior, the operator can ensure that such content is only delivered during o hours

    Further, to optimize the subscriber experience, operators can leverage policy to match the

    type o service video versus voice versus text with the best available access technology

    For instance, an operator can choose to deer the delivery o a particular service until a

    suitable access technology is available rather than risk an unpleasant usage experience by

    delivering it on suboptimal access With the advanced policy capability o the MobileSocial

    phase, operators can harness knowledge o the subscribers device capabilities to optimize

    service presentation and interaction at the device itsel And, with the application

    management unction, they can ensure a secure interconnection to OTT providers and Ad

    networks, which is undamental to service personalization

    At this stage o network evolution, operators are building marketing brand loyalty as an

    integral part o the mobile social ecosystem by enabling new business models such as:

    Opt-in advertisements, oers, and new service recommendations that are

    personalized to the individual and contextually relevant

    Subsidized mobile data access sponsored either by ads or third-party application andcontent providers

    With the transition

    to the MobileSocial

    phase, mobile operators

    leverage network and

    subscriber intelligence

    to provide valuable opt-

    in, mobile advertising,

    and other personalized

    oers to over-the-top

    application and

    content providers

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    THE THINKINGNETWORKS

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    Integrated loyalty programs within a community o ecommerce and merchant

    partners

    Aggregated analytics data about uptake and usage o OTT service

    Secure identity management or single log-in to third-party services

    Simple, ecient, and secure mobile payment transaction services\

    Consumer and enterprise cloud services, including policy as a service, identity as a

    service, and charging as a service

    Figure 6. Personalized, Targeted Ads

    The MobileSocial phase builds on the NDN and CloudXG phases with the ollowing key

    components:

    The MobileSocial Repository (MSR) provides the tools to unlock a trove o

    subscriber data It enables operators to collect large volumes o subscriber and

    relevant network data via a highly scalable, high-throughput database based on the

    latest advances in big data technology The MSR can accept real-time eeds rom

    multiple network sources without any service impacts It encompasses analytics

    capabilities to determine subscriber behaviors, norms, preerences, and connections

    The MSR also provides a mechanism by which third-party inormation requests are

    veried against subscriber privacy preerences, allowing operators to saely and

    securely share subscriber data while protecting subscriber privacy

    The OTT Application Management Function interaces with the MSR, allowing

    operator-controlled or third-party services to securely retrieve subscriber intelligence

    via standard, open APIs Using this unction, operators can access subscriber

    intelligence without impacting ongoing MSR data collection operations It has a low

    enough latency to support services that interact directly with consumers such as real-

    time bidding in display advertising

    AttractantContent

    Broadcast Narrowcast

    Pointc

    ast

    Ads

    Ads

    Your

    Ad

    Here

    Ads

    Ads

    Advertisers

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    THE THINKINGNETWORKS

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    The Mobile Policy Gateway extends policy directly to devices, allowing operators to

    manage mobile and Wi-Fi network selection based on preerential network access,

    subscriber tier or type, device type, application usage, or network conditions It also

    reduces signaling rom chatty applications to improve the subscriber experience and

    secure devices and personal inormation by blocking malware and raudulent activity

    This is critical or new services such as mobile commerce

    The Trafc Detection Function characterizes media fows on selected, high-value

    services at a much more granular level than is available with todays deep packet

    inspection (DPI) and video optimization unctions This capability enables superior

    personalization o application-based services

    Figure 7. MobileSocial Phase

    PHASE 4: THINKINGNETWORKS

    The end game o this evolutionary process is the creation o highly evolved, sotware-

    dened ThinkingNetworks Like the human mind, these networks think or themselves

    They process new inormation with what they already know, morphing and gaining

    more intelligence as time, events, and content are added rom a multitude o sources

    ThinkingNetworks sel-organize, sel-optimize, and sel-determine responses to

    unprecedented and unpredictable events They anticipate subscribers behaviors and uturepreerence patterns Operators are able to understand their subscribers digital liestyles,

    including where they work or travel, what devices they use, and what they like and dislike

    Armed with that level o subscriber knowledge, they are able to crat a highly personalized

    and relevant subscriber experience that matches each subscribers needs Moreover,

    operators can apply that data to new services and content in real time

    The oundation o this ThinkingNetworks model is the New Diameter Network It embodies

    the critical intelligence and control assets to enable service providers to manage their

    business independent o the underlying network technology This approach simplies the

    network architecture by eliminating redundant control elements

    ThinkingNetworks

    sel-organize, sel-

    optimize, and sel-

    determine responses

    to unprecedented

    and unpredictable

    events They anticipate

    subscribers behaviors

    and uture preerence

    patterns

    Traffic Detection Function

    OTT Application Manager

    New Diameter Network

    PCRF DSR SPR

    Mobile Policy Gateway

    MobileSocial Repository

    Fixed Device

    Mobile Device

    LTEWi-Fi

    3G

    External OTT/Cloud Providers

    Trusted OTT/Cloud ProvidersPolicy on

    the Device

    Policy onthe Device

    Big Data

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    THE THINKINGNETWORKS

    REVOLUTION

    The extreme fexibility o ThinkingNetworks supports dierent streams or best eort

    Internet, OTT subsidized data, M2M, and cloud services using policy-directed SDN control

    and advanced network event reporting capabilities Network control expands beyondbandwidth, applications, time, and speed It includes signaling, compute resources,

    devices, and Internet protocol (IP) fows, allowing operators to monetize end-to-end

    QoE At this stage, the network provides the fexibility and innovation that is essential to

    enabling the new business models and services that are the hallmarks o digital liestyle

    providers

    The ThinkingNetworks phase includes:

    The Network Event Listener listens and reports on network events to the

    Policy-Directed SDN Controller (PDSC) Network events include radio access network

    (RAN) congestion, degradation in data session setup times, excessive invocation opolicies by the Policy Server, excessive number o ailed Diameter endpoints, and

    requirements or special handling o high-value data sessions by the Policy Server

    Examples o event listeners include: event records, analytics, and alarms rom the

    Policy Server; Diameter message inormation; alarms rom the Diameter Signaling

    Router; congestion eeds rom RAN probes; and overload alarms rom Trac

    Detection Functions Reports can be sent to an advanced analytics platorm to

    provide rich segmentation and insight into customer and network behavior to inorm

    the PDSC and design and implement new service plans

    The Policy-Directed SDN Controller receives reports or triggers rom the Network

    Event Listener It evaluates the network situation and makes decisions based on this

    evaluation along with subscriber intelligence rom the MSR and business logic rom

    the operator using a sophisticated, rule-based policy engine It directs the denition

    o new QoS rules based on IP fow conditions It can also selectively manage high-

    value IP fows that are associated with subscriber sessions o interest using OpenFlow

    or other standards For example, the PDSC can direct:

    A subscribers IP fow towards a video optimization platorm in order to optimize

    the subscribers viewing experience based on their device type

    A specic set o IP fows requiring DPI services towards a DPI platorm rather

    than requiring all IP fows to pass through the DPI This signicantly improves the

    eciency o the DPI since it no longer needs to process all IP trac

    IP fows in the Diameter signaling network to route trac around congested areas

    o the network based on real-time conditions and signaling loads

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    THE THINKINGNETWORKS

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    Figure 8. ThinkingNetworks Phase

    CONCLUSION

    There is a radical transormation underway in the telecom landscape, and its impact is

    being elt in nearly every aspect o the industry revenue streams, business models, and

    value chains For operators, the stakes have never been higher and timing never more

    critical To secure their claim in the digital liestyle ecosystem and capitalize on the ourth

    revenue wave, operators must move quickly to transorm their business models and their

    networks

    Equipped with ThinkingNetworks, operators place themselves squarely at the center

    o subscriber interaction as digital liestyle companies and ecosystem providers The

    ThinkingNetworks vision opens the door to unlimited options or partnerships and services

    with third parties, including OTT application and content providers, mobile advertisers,

    mobile payment providers, M2M and cloud service providers ThinkingNetworks provide

    elasticity, fexibility, and innovation to create dynamic applications, oster innovation, and

    respond quickly to rapidly changing markets to meet the demands o the connected world

    ABOUT TEKELEC

    Tekelecs intelligent mobile broadband solutions enable service providers to manage

    and monetize mobile data in LTE, IMS and 3G networks We are the architects o the

    New Diameter Network, a portolio o session, policy and subscriber data management

    products that lay the oundation to evolve to sotware-dened ThinkingNetworks More

    than 300 service providers use our market-leading solutions to deliver cloud, machine-to-

    machine and personalized services to consumers and enterprises For more inormation

    visit wwwtekeleccom

    Diameter Signaling Transport High Value IP Transport

    New Diameter Network CloudXG MobileSocial

    New Diameter Networkevents

    Policy-Directed SDN Controller

    Network Event Listener

    Tekelec Event Reporters

    Real-time Situation

    CloudXG events MobileSocial events

    Core Networkevents

    3rd Party Event Reporters

    3rd Party

    OSS or

    Controller

    Access events Big Data events

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    14

    THE THINKINGNETWORKS

    REVOLUTION

    ACRONYMS USED IN THIS DOCUMENT

    CAGR Compound Annual Growth Rate

    DPI Deep Packet Inspection

    DSR Diameter Signaling Router

    ICL Independent Control Layer

    IP Internet Protocol

    LTE Long Term Evolution

    M2M Machine to Machine

    MPG Mobile Policy Gateway

    MSR Mobile Social Repository

    NDN New Diameter Network

    OTT Over the Top

    PCRF Policy and Charging Rules Function

    PDSC Policy-Directed SDN Controller

    QoE Quality o Experience

    QoS Quality o Service

    RAN Radio Access Network

    SDM Subscriber Data Management

    SDN Sotware Dened Network

    SMS Short Message Service

    VoIP Voice over IP

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    Tekelec has more than 300 customers in more than 100 countries.

    For inormation on our worldwide ofces, visit the Tekelec

    website at www.tekelec.com/ofces.

    This document is for informational purposes only, and Tekelec reserves the right to change any

    aspect of the products, features or functionality described in this document without notice. Please

    contact Tekelec for additional information and updates. Solutions and examples are provided for

    illustration only. Actual implementation of these solutions may vary based on individual needs and

    circumstances.

    2013 Tekelec. All rights reserved. The EAGLE and Tekelec logos are registered trademarks of

    Tekelec. All other trademarks are the property of their respective owners.

    www.tekelec.com

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