DATA OFFLOAD APPROACHES FOR MOBILE · PDF fileDATA OFFLOAD APPROACHES FOR MOBILE OPERATORS ... Data Traffic Challenges And The Need For Data Traffic Offload 03 2. ... ŸTransactional

DATA OFFLOAD APPROACHES FOR MOBILE OPERATORS Improving Network Efficiency And Strengthening Quality Of Service

Romendra Nath Mukherjee Santhosh Kumar M

Jayanta Dey Devaraj Srinivasan

www.wipro.com

Table of contents

1. Data Traffic Challenges And The Need For Data Traffic Offload 03

2. Data Traffic Offload Options 04

3. Comparison Of Data Offload Solutions 11

4. Recommendations To Manage Mobile Data Offload 12

5. Conclusion 12

The popularity of video, social media and Internet gaming across a range of new devices such as smartphones and

tablets has created a surge of network data traffic. Device to device connectivity – commonly referred to as M2M – will

give rise to a new universe of applications that will further stress network capacity.

In the next three years alone, data traffic is expected to grow tenfold creating a tremendous capacity crunch for 1operators. While data revenues are expected to only double during this period creating a huge monetization gap .

Therefore, telecom operators need to constantly review their data traffic patterns and implement traffic offloading

mechanisms that can help them manage their network load and capacity more efficiently.

In addition, the rise of OTT players who are capturing a growing share of the value of the data that flows over the

network, combined with declining Telco margins, stipulates that all this should be done in a more cost efficient manner.

This paper describes various data offload strategies and considers the challenges and benefits associated with each of

them.

Due to the rapid growth of smartphones and tablets, data traffic on the

networks is on the rise and mobile connections are expected to reach the 27.4 billion mark by 2015 — surpassing the global population . The

popularity of data guzzling applications, social networking, video and online

gaming will further drive data consumption creating tremendous strain on

the networks. Next-generation network deployments promise to deliver

higher bandwidth and speed but they also introduce new challenges for

service providers such as a high cost of deployment and operations. The

cost of delivering data continues to rise more rapidly than revenues, and is

expected to grow seven fold from $53 billion in 2010 to reach $370 billion 3(USD) by 2016.

Some of the levers that operators have at their disposal to better manage

their networks include:

Radio Spectrum Utilization. Spectrum for operators is both limited Ÿas well as expensive. As the number of connected devices continues

to increase, operators need to plan the effective utilization of their

radio resources by offloading data between licensed and unlicensed

spectrum.

Controlling CAPEX. To meet the growing data needs of consumers Ÿoperators are already investing heavily in upgrading their networks.

Data traffic challenges and the need for data traffic offload

However, their incremental revenues are not commensurate with

the increase in data traffic. Hence, operators need to focus on core

and access network investments only in those areas that offer the

strongest potential returns.

Backhaul Network Optimization. The increase in data traffic is not Ÿonly causing strain to the operator radio access networks, it is also

creating backhaul bottlenecks. As the traffic from wireless devices

continues to increase, operators also need to design and implement

an efficient backhaul system to transport the data from the access to

the core network.

Transactional Load Management. With increasing number of Ÿdevices, it is important for operators to keep the signaling and

transactional load to a minimum, so that bandwidth is optimized.

In addition, data traffic patterns depend upon the type of device, its form

factor, time of the day, type of application and even the density of users in a

particular location. For devices, the largest data consumption spread is for

3G routers, falling in the range of 1-16 GB per month. Even for PCs, the

variation is large, in the 1-7 GB per month range, followed by tablets at

300-1600 MB per month and mobile phones at 30-230 MB per month, 4while M2M average volume traffic is below 10 MB per subscription . All

these factors combined with the increasing device diversity makes network

03

capacity planning and load management even more complex. In order to

optimize the usage of the network elements and the traffic flow, mobile

data offload solutions that can enable the optimum utilization of network

resources are required.

Data traffic offload can help operators reduce the traffic on their radio

spectrum lowering the operating load on base stations. It also provides an

opportunity for service providers to charge users for offload solutions such

as small cells, while helping customers reduce their usage costs by

offloading data to alternate networks.

According to ABI Research, in 2010, about 16% of mobile data was

diverted from mobile networks; this is expected to grow to 48% by 2015.

Since, data offloading can help operators avoid signal choking and revenue

loss, it is emerging as one of the best options to manage network capacity

and load.

A robust data offload solution can provide telecom operators with the

flexibility to control data flow across the network based on traffic patterns,

class of service and type of customers – enabling a better quality of service.

In addition, users can also have the flexibility to control the data traffic that

they wish to offload based on the type of applications, their location or

service type, helping them manage their data allowances better. In the

subsequent sections, we will discuss various data offload solutions.

There are six different options to offload data from the mobile network at

either the access or the core network level. Each of these options can

co-exist and the operator will have to determine the best option based on

multiple factors such as current infrastructure, customer usage patterns,

associated costs, deployment and maintenance complexities and user

density in a particular location.

Figure 1 explains the six different approaches that extend across the

unified network access ring and core. Different access network elements

are connected to the access gateway which gets aggregated through

an aggregation box to a unified transport ring. Different core network

elements are connected to the IP MPLS or optical ring through

edge routers.

The six different mobile data offload options are

1. Wi-Fi Hotspot

2. LTE Small Cells / Relay nodes

3. Integrated Femto / Wi-Fi

4. Direct Tunnel

5. Internet offload Gateway (IOGW)

6. M2M Gateway

Data traffic offload options

04

Figure 1: Mobile Data Offload Options, Source: Wipro Technologies

AG - Access Gateway ER - Edge Router

Unified Access

NetworkRing

Unified Transport

Ring

GSM BTS 3G Node BLTE eNodeB

Smart Devices,Tablets, Phones

To Other Unified Access Network Ring

To Other Unified Transport Ring

Aggregationbox

LTE Small Cells / Relay Node

Wi-Fi Hotspot

WLAN Controller

Intergrated Femto WiFi

M2M Devices

3G Radio Network Controller

Fiber Ethernet

Microwave

IP MPLS, Ethernet,Optical

Internet

AG

AG

AG

AG

ER

ER

ER

ER

ER

M2M Gateway SGSN

BRAS /BSER

MSC

PCU

AAA Radius Server

GSM Base Station Controller

4G LTE EPC MME / SGW/ PGW

Packet Data Gateway

IOGW

Femto Gateway

GGSN

Wi-Fi is a low cost, easy to install solution that can help operators manage

data traffic growth at reduced costs. The demand for Wi-Fi technology in

mobile networks will continue to grow over the coming years as Tier-1

Telecom vendors upgrade their Wi-Fi portfolio.

The key advantage of Wi-Fi hotspot is that they operate over unlicensed

spectrum. In addition, building Wi-Fi hotspot is easier and cost effective

than large network deployments and upgrades. However, as the coverage

of a Wi-Fi hotspot is limited, its effectiveness depends upon the duration

for which the user remains in the coverage area. The longer a user stays in

Wi-Fi coverage area greater the benefits are of data offload.

The number of Wi-Fi hotspots is increasing across the world and many

enterprises are setting up their own. In addition, a number of operators

have already rolled out Wi-Fi hotspot solutions. For instance AT&T has

forged partnerships with public and private entities to offer Wi-Fi services

across thousands of locations.

Wi-Fi Hotspot

05

Figure 2: Mobile Data Offload Using Wi-Fi Hotspot

Wi-Fi Hotspot

1


Unified Access

NetworkRing

Unified Transport

Ring





Aggregationbox


WLAN Controller


M2M Devices


Fiber Ethernet

Microwave


Internet

AG

AG

AG

AG

ER

ER

ER

ER

ER

M2M Gateway SGSN

BRAS /BSER

MSC

PCU

AAA Radius Server



Packet Data Gateway

IOGW

Femto Gateway

GGSN

The following sections will explain each of the options in detail. Figure 2 depicts the data flow in a Wi-Fi hotspot solution. Data

offloading can be initiated in two ways. First, it can be accomplished by

the operator based on the type of data flow. Secondly, it can be

initiated by the user to reduce subscriber utilization charges.

The concept of small cells is similar to Wi-Fi, the only difference is that these

connect to the radio network and provide higher coverage. This works

both on licensed as well as unlicensed spectrum by offloading data traffic

from the core network and saving radio spectrum. These low powered

radio nodes are very useful to offload data in high density and high traffic

areas. Since this solution is deployed and managed by the operator it fits

well with long-term strategy of mobile operators. But it has its own

challenges in terms of installation complexities which can adversely impact

capital and operating expenditures.

An advantage of LTE small cells is that they can be easily deployed with low

skilled workers. But they are in the early stages and not yet ready for mass

deployment.

In Figure 3 gives a view of data flow in a LTE small cell / relay node

deployment. Wi-Fi hotspots and LTE small cells will co-exist to address

selective offload of data from various devices.

LTE Small Cell and Relay Nodes Underlay Network

06

Figure 3: Mobile Data Offload Using LTE Small Cells and Relay Nodes


Unified Access

NetworkRing

Unified Transport

Ring





Aggregationbox

Wi-Fi Hotspot

WLAN Controller


M2M Devices


Fiber Ethernet

Microwave


Internet

AG

AG

AG

AG

ER

ER

ER

ER

ER

M2M Gateway SGSN

BRAS /BSER

MSC

PCU

AAA Radius Server



Packet Data Gateway

IOGW

Femto Gateway

GGSN


2

Integrated Femto and Wi-Fi will be a solution which will be deployed

indoor in a residential or enterprise environment and outdoor in a metro

environment. This is a hybrid solution that utilizes both small cell and Wi-Fi

hotspot concepts for data offloading. Access points in a residential or

enterprise environment will be managed by consumer or enterprise, while

the WLAN access manager and Femto gateway will be managed either

by the Internet service provider or a mobile operator.

Figure 4 gives an overview of the Integrated Femto and Wi-Fi solution.

Due to its distinct advantages over other solutions, it is expected that

this solution this will become the long term data offload option for

the operators.

Integrated Femto and Wi-Fi

07

Figure 4: Mobile Data Offload Using Integrated Femto and Wi-Fi


3


Unified Access

NetworkRing

Unified Transport

Ring





Aggregationbox


Wi-Fi Hotspot

WLAN Controller

M2M Devices


Fiber Ethernet

Microwave


Internet

AG

AG

AG

AG

ER

ER

ER

ER

ER

M2M Gateway SGSN

BRAS /BSER

MSC

PCU

AAA Radius Server



Packet Data Gateway

IOGW

Femto Gateway

GGSN

In the direct tunneling method, data flow in a 3G network flows from the

base station to the radio network controller (RNC), GGSN and then

directly to the Internet avoiding the SGSN network element. This implies

that service providers utilizing this offloading solution would require much

lesser SGSN nodes, which would result in reduced capital and operating

expenses.

Figure 5 below explains explains the data flow in the direct tunneling

approach.

Direct Tunneling

08

Figure 5: Mobile Data Offload Using Direct Tunneling

Direct Tunnel

4


Unified Access

NetworkRing

Unified Transport

Ring





Aggregationbox


Wi-Fi Hotspot

WLAN Controller


M2M Devices


Fiber Ethernet

Microwave


Internet

AG

AG

AG

AG

ER

ER

ER

ER

ER

M2M Gateway SGSN

BRAS /BSER

MSC

PCU

AAA Radius Server



Packet Data Gateway

IOGW

Femto Gateway

GGSN

This solution provides the option to selectively offload data traffic between

the Radio Network Controller in a 3G network and the SGSN. Revenue

generating applications can be taken through the core network SGSN and

GGSN while non-revenue generating applications such as free videos and

web browsing are offloaded from the RNC to the Internet directly.

By implementing this solution in the network, the operator would not

require to upgrade SGSN/GGSN to support the increased data growth.

Both SGSN and GGSN are offloaded in this solution but the challenge of

restricted radio spectrum continues, since the solution is implemented in

the core network.

Figure 6 Mobile Data Offload Using Internet Offload Gateway gives the

view of data flow in the Internet Offload Gateway solution

Internet Offload Gateway

09

Figure 6: Mobile Data Offload Using Internet Offload Gateway (IOGW)


Unified Access

NetworkRing

Unified Transport

Ring





Aggregationbox


Wi-Fi Hotspot

WLAN Controller


M2M Devices


Fiber Ethernet

Microwave


Internet

AG

AG

AG

AG

ER

ER

ER

ER

ER

M2M Gateway SGSN

BRAS /BSER

MSC

PCU

AAA Radius Server



Packet Data Gateway

Femto Gateway

GGSN

IOGW

5

With M2M devices gaining momentum, operators should start looking at

offloading the data content from these devices through a dedicated M2M

gateway to reduce the strain on their core networks and improve

operational efficiency. In this solution, M2M devices get connected to the

unified access network ring either through macro, small cell or W-Fi

wireless networks or through a wired access M2M gateway.

Figure 7 explains the data flow from M2M devices to the internet.

The M2M gateway connects the M2M devices and the operator’s wireless

and wireline networks. The M2M gateway also provides localized value

added services and acts as a proxy for device management. The converged

M2M gateway reduces the signaling load on the core network and helps

manage mobility and session control.

M2M traffic routing capabilities can be built into a service delivery platform

providing intelligent offload decisions based on the traffic patterns. M2M

networks will overlay with the existing 3G/LTE network and enable

operators to selectively offload the data from different devices.

M2M Gateway

10

Figure 7: Mobile Data Offload using M2M Gateway


Unified Access

NetworkRing

Unified Transport

Ring





Aggregationbox


Wi-Fi Hotspot

WLAN Controller


M2M Devices


Fiber Ethernet

Microwave


Internet

AG

AG

AG

AG

ER

ER

ER

ER

ER

SGSN

BRAS /BSER

MSC

PCU

AAA Radius Server



Packet Data Gateway

IOGW

Femto Gateway

GGSN

M2M Gateway

6

Operators can chose and deploy one or more of the data offload options

based on the data traffic growth, subscriber base and the time frame of

deployment. Figure 8 provides an overview of the advantages and

challenges in each of the data offload options.

Comparison of data offload solutions

11

DATA OFFLOAD OPTIONS ADVANTAGES CHALLENGES OPERATOR BENEFITS

WiFi Hotspot

LTE Small cells and Relay Nodes

Integrated Femto and WiFi

Direct Tunneling

Internet offload Gateway

M2M Gateway

w Usage of unlicensed spectrum

w Marketing tool to promote additional business

w Low Power consumption

w Limited coverage, interference management and coverage

w Security challenges

w Selective data offloads

w Lower setup amd Maintenance costs

w Increases coverage and capacity

w Easy to install and manage

w Low Power consumption

w Spectrum scarcity to support many devices

w Interference migration

w Security

w Integration challenges

w Lower Integration costs

w Lower setup and Maintenance costs

w Faster deployment

w One box for both WiFi and Femto

w Increases coverage and capacity

w Lower cost of deployment and maintenance

w Spectrum scarcity

w Interference Management

w Security

w Lower Opex and Capex

w Lower power consumption

w Easy to install and manage

w Improved Service Performance

w Flat architecture. Direct access to the core network from core network

w No additional management system

w Only SGSN is offloaded. GCSN still carries the traffic


w No additional capex and network devices

w Operator can control selective data to offload

w Need fewer core network to support data growth

w Addition on new boxes & management software

w Integration costs to support LI and Charging


w Lower Capex and Opex

w Selective offload of data

w Easy to setup

w Leverages existing access network system

w Gets connected either on WiFi Macro network

w Reduces interferences

w Overlay of M2M network reduces signaling load, efficient management of data exchanges

w Bandwidth and traffic management

w Reduced cost of operation and capex

w Management of multiple devices on the network

w Security features across devices

Figure 8: A comparative analysis of the various data offload options, Source: Wipro Technologies

Service providers can select any option or a combination of options to

offload data and reduce the strain on access networks depending upon the

specific challenges in radio access, backhaul and core network.

Availability of spectrum, capacity and in-building coverage are the typical

challenges faced by the operators that offloading solutions can help

address. However, appropriate offloading strategies would depend upon

operators priorities, expansion plans and many other factors. Some

solutions that operators can evaluate include:

Short Term Solution. Deployment of Wi-Fi hotspots as they are Ÿcommercially available, cost effective and easy to manage. However,

as it is not a carrier grade solution and has limited coverage, it can only

be utilized as a supplementary solution.

Medium Term solution. Deployment of LTE small cells as a carrier Ÿgrade option in the licensed spectrum. A well-planned small cell

deployment can prove effective in managing data growth, providing a

long-term data offloading solution.

Potential Long-Term Solution. Deployment of an integrated, hybrid ŸFemto/Wi-Fi solution will utilize both licensed and unlicensed

spectrum to address the capacity issues. However, it is still in the

development stage. Operators can explore this as a potential

solution for the future.

In addition to the above mentioned data offload strategies; operators must

also look at alternative efficiency measures to improve their network

performance and management of data traffic. For instance, introducing

data analytic engines in the core network and building intelligence for local

break out of data traffic will help ease data traffic flows within the cities and

improve efficient routing. Migrating to an intelligent core network with

deep packet inspection and packet routing capabilities will help understand

customer behavior, enable differentiated services and help improve

customer experience.

While, introduction of multicast system- overlaying with existing 3G/4G

systems will help manage the data traffic efficiently.

Apart from the technical offload solutions implementation, it is also very

critical from a data monetization perspective to introduce class of service,

pay per use models, manage connection speed and download capacity

based on the application type and subscription fee.

Recommendations to manage mobile data offload

It is quite evident that service providers are struggling to manage the data

traffic explosion. There are already many commercially available offloading

options such as Wi-Fi offload, Internet offload gateway and direct tunneling

that can help address the immediate needs of the operators.

However, data traffic is expected to continue to grow and to manage this

growth efficiently, it is extremely important that operators start evaluating

their capacity and networking requirements now. Operators should also

start planning for network upgrades, and develop a roadmap for

deployment and roll-out of LTE small cells / relay nodes and integrated

Femto Wi-Fi solutions to address their medium to long-term needs. As the

number of M2M devices is expected to skyrocket in the coming years, it

would be ideal for operators to also plan for M2M gateway, an overlay

network to offload the data traffic.

Service providers must also note that different types of offload solutions

will continue to co-exist, therefore they need to carefully evaluate each of

these options, or a combination of these based on their requirements,

customer demographics and business objectives. A successful offload

strategy will not only help operators minimize capital and operating

expenditures, but also heighten quality of service while improving customer

experience.

Conclusion

12

OTT: Over The Top

M2M: Machine To Machine

GGSN: Gateway GPRS Support Node

SGSN: Serving GPRS Support Node

IOGW: Internet offload Gateway

RNC: Radio Network Controller

3G: 3rd Generation

LTE: Long Term Evolution/ 4GLTE

CAPEX: Capital Expenditure

OPEX: Operating Expenditure

Glossary

1. Ericsson report

2. computerweekly.com/news/2240105255/Smartphones-and-tablets-drive-mobile-data-traffic-up-23-says-Gartner

3. http://www.juniperresearch.com/viewpressrelease.php?pr=254

http://www.ericsson.com/res/docs/2012/traffic_and_market_report_june_2012.pdf

4. http://insaviewpoint.blogspot.in/

References / Citations

13

Devaraj Srinivasan is the General Manager & Head of Telecom Technology & Strategy in Wipro's Global Media and Telecom business unit. Dev has been

working in the IT & Telecom Industry for more than 24 years. Dev has performed various technology and business roles in Wipro's Telecom Engineering

group and has worked with leading telecom equipment vendors across the world. His areas of interest are broadband wireless technologies, service

management and wireless backhaul solutions.

Jayanta Dey is currently Vice President for Wipro's telecom equipment vendor business unit where he heads the Consulting, Solutions and Practice unit.

Jayanta has over 23 years of experience in the telecommunication industry. He is involved in providing advisory services to various telecom clients on their

product strategy and roadmap, process optimization, strategy for service roll out and on innovative out-sourcing/partnerships models. Jayanta holds a BE

(Hons) Electronics Engineering from BITS Pilani and a MBA from North Eastern University Boston.

Santhosh Kumar M is as a Technology Consultant in Wipro's Global Media and Telecom business unit. In this role he is responsible for re-badging deals and

Telecom partner engagement programs. He has over 13 years of experience in IT & Product Engineering domain in various technical & business roles, across

service providers & telecom equipment vendors.

Romendra Nath Mukherjee is currently working as a business analyst in Wipro's Global Media and Telecom business unit. In this role he is responsible for

analyzing Telecom technology and strategy. Prior to this he was working as a client relationship representative, front-ending sales in Utility domain for Wipro

Infotech.

About the author

Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that

delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and

a 360 degree view of “Business through Technology”– helping clients create successful and adaptive businesses. A company recognized globally for its

comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro

Technologies has over 130,000 employees and clients across 54 countries.

For more information, please visit www.wipro.com or contact us at [email protected]

About Wipro Technologies

Wipro's comprehensive suite of converged services addresses the entire Digital value chain which includes Content Providers, Independent Software

Vendors, Network Equipment Vendors, Communication Service Providers, Media, Entertainment & OTT players as well as Device Vendors. Our vertically

aligned business model allows us to understand customer business imperatives and technology service lines give us the unique ability to architect integrated

technology solutions partnering with organizations to Do Business Better and win in a Digital World.

Winning in a Digital World

14

The Wipro Council for Industry Research, comprised of domain and technology experts from the organization, aims to address the needs of customers by

specifically looking at innovative strategies that will help them gain competitive advantage in the market. The Council, in collaboration with leading academic

institutions and industry bodies, studies market trends to equip organizations with insights that facilitate their IT and business strategies. For more information

please visit www.wipro.com/insights/business-research/

About Wipro Council for Industry Research

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DATA OFFLOAD APPROACHES FOR MOBILE · PDF fileDATA OFFLOAD APPROACHES FOR MOBILE OPERATORS ... Data Traffic Challenges And The Need For Data Traffic Offload 03 2. ... ŸTransactional