Module4-Mobile Broadband Services-technology Regulation and Business Aspects

8/9/2019 Module4-Mobile Broadband Services-technology Regulation and Business Aspects

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ITU Centres of Excellence for Europe

Mobile Broadband: LTE/LTE-Advanced,WiMAX and WLAN

Module 4:

Mobile broadband services: technology, regulation andbusiness aspects


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MODULE 4:Mobile broadband services: technology, regulation and

business aspects

Contents

Mobile broadband services: technology, regulation and business aspects...........14 Introduction ........................................................................................................34.1 IMS (IP Multimedia Subsystem) in mobile broadband networks.....................34.2 VoIP over LTE/LTE-Advanced and mobile WiMAX.......................................124.3 Mobile IPTV, multimedia streaming ..............................................................164.4 Mobile data services .....................................................................................22

4.5 Mobile social networking...............................................................................244.6 Location based services ...............................................................................324.7 Quality of Service (QoS) and Quality of Experience (QoE)...........................374.8 Future network sharing for mobile operators ................................................394.9 Business and regulatory aspects of future mobile broadband ......................474.10 Reference list ..............................................................................................50


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4 Introduction

The proliferation of mobile broadband technologies resulted in irreversible impacton our lives through a plethora of communications services which number

increases daily. For example, we can not go more than a couple of hours withoutchecking our e-mail. When we have a question or need some information, weopen a web and start browsing. When abroad, we use multimedia-rich orientationand location maps (e.g. Googles Street View), as well as free VoIP calls to hearfrom home. YouTube and Facebook provide means of unprecedentedinformation exchange not just in form of text, but also in form of images and HDvideos. We are witnessing social and cultural events which spread worldwide in

just a matter of days or months (last example is the K-pop single "GangnamStyle": as of December 4, 2012, the music video has been viewed over 881million times on YouTube becoming the most watched video ever).

Module 4 targets mobile broadband services regarding their technology enablers,

regulation constraints and business opportunities. We will start with the IPmultimedia subsystem, as IP proved to be the common technological umbrellaand compatibility precondition of modern communications. Then the moduleanalyzes the latest trends in VoIP, IPTV and data services delivered by mobilesystems, as well as social networking and location-based services. At the end,Module 4 tackles the necessary Quality of Service (QoS) and Quality ofExperience (QoE) offered by mobile broadband services and the mechanisms foroptimal operation of mobile service providers regarding its business success, i.e.future network sharing.

4.1 IMS (IP Multimedia Subsystem) in mobile broadband networks

This section evaluates the methods mobile operators use for voice to competewith alternative providers. The result is clear IMS best enables operators tocreate voice services that include partnering with application and contentproviders, realize the benefits of mobile broadband all-IP network, and preserveglobal roaming and interoperability that we have achieved in todays 2G/3Gnetworks.

LTE will solve todays pressing needs for increased mobile data bandwidth. Thepopularity of devices such as the iPhone, Android and BlackBerry, and services

such as video and social networking are rapidly outpacing 3Gs ability toeffectively deliver services, causing some operators to reconsider pricing plansfor mobile data. Instead of reducing service usage, most operators prefer toincrease subscribers usage of mobile data by deploying LTE.

LTE will provide an experience that was previously available only in fixedbroadband, owing to LTEs high bandwidth and Quality of Service (QoS) whichsurpasses that available in 3G. Unlike fixed broadband, it will be an untetheredexperience that people can take with them anywhere, and it will be personal


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instead of being shared with other household members. Clearly, the improveddata service is extremely beneficial to consumers and enterprise users.

LTE is designed to be a flat, all-IP network, from the handset, through the radioaccess, across the packet core and into the services layer. The all-IP networkprovides operators with economic benefits from both the simplified networks

operations (lower costs) and the new services created with IPs inherent flexibilityand utility (improved revenues). In such an all-IP network, voice is provided asVoice over IP (VoIP). However, some operators and vendors are consideringinterim methods so they can focus on LTEs initial service as a data-only overlay.

There are several methods for LTE to deliver voice and short message service(SMS), such as the two leading methods, IMS VoIP and Circuit SwitchedFallback (CSFB), as well as other custom, non-standard methods characterizedby a 2G/3G circuit MSC linked to VoIP over the LTE packet access. Except forIMS VoIP, all methods rely heavily on reusing the existing 2G/3G MSC. Reusingthe existing 2G/3G MSC provides benefits such as complete featuretransparency plus leveraging the MSCs already established integration into theOperational Support Systems and Business Support Systems (OSS/BSS).However, it limits the introduction of new IP services (such as video telephony)and prevents operational savings based on an all-IP LTE network. Reusing the2G/3G network for CSFB causes the LTE data session, during voice calls, to fallback to 3Gs lower data rates, or is even suspended in 2G due to a lack ofsimultaneous voice and data capability. The remaining methods either limit theability to retain LTE service while roaming or, due to a smaller ecosystem, reducethe selection and variety of LTE handsets available to support that custommethod.

For most people, the mobile phone is used for talking and texting with their

friends, families and colleagues. People are eager to connect with each otherand are willing to pay for it. Figure 1 shows that voice currently provides themajority of operators revenues. Although voice revenues as a portion of totalrevenues are steadily declining, voice remains the primary revenue contributorfor the next several years. Add into this that approximately half of data revenuescome from texting (SMS) and it is clear that the contributions of voice and textingare fundamental to operators continued commercial success.

Does this mean the future remains the same as the past, that voice and textingare the predominant sources of mobile operators revenues? No, because dataservices are increasingly popular. The number of data subscribers and their datausage continues to grow rapidly. This behavior is fueled by the proliferation of 3G

data networks, the widespread availability of multimedia and smartphones, theavailability of content and social networking sites using mobile devices, andaffordable mobile data services. However, voice and SMS are fundamentalservices in the operators portfolio because of their significant revenues plusvoices role as the base application on which to build further services, such asGSMA RCS, high-definition voice and blending with social networking sites. Therealization of enhanced voice relies upon VoIP, not circuit switched voice. It iswith IMS and VoIP that the operators can compete and partner with the ACPs.


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Figure 1 Voice revenues

Data services rapid growth places stress on 3G networks, thereby driving theemergence of LTE as the means to deliver greater quantities of mobile data

affordably. LTE enhances the Universal Mobile Telecommunications System(UMTS) architecture, providing both improved bandwidth and an improvedQuality of Service (QoS) for these data-intensive services. LTE is based on anEvolved UMTS Terrestrial Radio Access Network (eUTRAN) and an EvolvedPacket Core (EPC), which incorporate new modulation techniques and a flat, all-IP architecture for the efficient delivery of mobile data services. The LTE networkis shown in Figure 2.

In contrast to 3G networks usage of circuit-switched voice and SMS, pluspacket-switched data, an LTE network is all-IP. All traffic in an LTE system iscarried as IP, providing seamless, high-speed connections between a handset oruser equipment (UE), and various packet data networks, such as the Internet,IMS, and Content Delivery Networks (CDNs). The various IP bearers in the LTEsystem are assigned specific QoS Class Identifiers (QCIs) that correspond tospecific treatment levels for connection types, priority, delay budgets and packeterror loss rates. A single handset or UE may have multiple IP bearers serving it,where individual bearers serve conversational voice, gaming sessions, streamingvideo, e-mail or messaging, for example.

Figure 2 LTE network architecture including IMS


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The primary methods for LTE voice are recognized as 3GPP IMS and 3GPPCircuit Switched Fallback (CSFB). Other methods that are non-standard andsometimes focused on a particular operators business and technical challengesare characterized by reusing a 2G/3G circuit core served by LTE packet access.An operators preferred method will be determined by network capabilities and

competitive challenges. In this section, we briefly explore these various methods.Table 1 presents how these methods perform in terms of delivering thesubscribers expectations for mobile voice.

Table 1 Comparing the methods and expectations

IMS

IMS provides VoIP and SMS service in LTE using a fully packet switchednetwork, and is a 3GPP standard for LTE voice. Unique among the methods, it isthe only method that is all-IP. It is the ultimate destination for LTE voice for nearlyall operators, as reported by several analyst firms, such as Current Analysis,Stratecast, Yankee Group and Infonetics, and embraced by the One Voiceinitiatives operators: AT&T, Orange, Telefnica, TeliaSonera, Verizon andVodafone. Furthermore, the One Voice initiative transferred to the GSMA inJanuary 2010, showing the global breadth of support for IMS VoIP in LTE.

Notably, non-voice IMS services such as GSMA RCS (Rich CommunicationSuite) are available in all three methods. Regardless of how voice service isprovided, the RCS services such as presence, content sharing and unifiednetwork address book are available for deployment by the operator with all threemethods. It is with IMS VoIP that the subscribers RCS experience is enhancedin LTE. Unlike CSFB, with IMS VoIP the subscriber retains LTEs higherbandwidth during RCS sessions involving voice, such as video sharing, insteadof falling back to 3G data rates. A wider selection of handsets plus globalroaming is assured with IMS VoIP, unlike VoLGA (Voice over LTE GenericAccess). Recognizing that GSMA RCS services are becoming table stakes andare likely to be deployed anyway, the same IMS used for GSMA RCS servicescan also be used for IMS VoIP services in LTE.

The primary advantages of IMS voice for LTE are that it

o Preserves LTEs bandwidth during voice calls while minimizing call setupdelay

o Assures global interoperability and roaming

o Provides the largest possible ecosystem which affects such matters ashandset supply and multivendor interworking


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o Provides an all-IP network for operational savings and HD voice

o Enables full blending of voice with advanced services beyond GSMA RCS

Because voice and other communications services are under IMS control,operators can construct competitive services, including partnering with ACPs for

services such as blending voice with social networking sites.Figure 3 depicts an IMS VoIP deployment for LTE.

Figure 3 IMS deployment for LTE

This implementation is the only all-IP method. It enables the full spectrum of IMSservices, including GSMA RCS, blending voice with other services includingsocial networking, rich multimedia communications such as video telephony andwideband audio (HD voice). Because the LTE device remains in LTE coverage,the LTEs high bandwidth and QoS are retained, even during voice calls (unlikeCSFB).


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As for the network deployment, all three solutions have some effects that aresimilar. All require a voice client on the LTE device. All affect the EPCs MobilityManagement Entity (MME). Of course the significant difference with IMS is thatthe IMS infrastructure must be deployed and integrated into the operatorsnetwork and operations. If the operator already has an IMS (such as for fixed

VoIP, Class 5 or GSMA RCS) this is readily extended to LTE. If not, the operatormust undertake the planning and business justification needed to support thedeployment, justified by the additional revenues from new services and offset bythe operational expense savings of a flat, all-IP network.

As for roaming and handoff between LTE and legacy mobiles 2G/3G circuitswitched voice, Single Radio Voice Call Continuity (SRVCC) is needed if theoperator does not have complete LTE coverage or is not able to plug the gaps incoverage with adequate 3G packet switched (3G PS) coverage, or when roamingglobally. The eUTRAN must include the enhancements to serve VoIP, such asrobust header compression and semi-persistent scheduling.

CSFB

Circuit Switched Fallback (CSFB) provides voice service for LTE by reusing theexisting 2G/3G network and is a 3GPP standard for providing voice for LTE (seeFigure 4). It is an interim method preferred by most operators who do not yethave an IMS infrastructure for their initial LTE launch. The 2G/3G network isreused so that the initial LTE deployment focuses solely on providing animproved mobile data service, such as LTE as a data-overlay. The mobiledevices are normally served by LTE for the data services. During voice calls, themobile device reverts or falls back to 2G/3G service, suspending LTE dataservice; and due to the limitation of only one active radio at a time in the handset,falls back to either 3G data rates or, in the case of of fallback to 2G, suspends

the data service altogether due to 2Gs lack of simultaneous voice and data.Hence voice service is readily provided for LTE, though with service limitations;CSFB provides complete and transparent service to current 2G/3G services,though without supporting much further IP communication services beyondGSMA RCS.

The primary advantages of CSFB voice for LTE are that it is readily deployablefor those operators who have not already deployed IMS, and that it providescomplete feature transparency to current 2G/3G services, including globalroaming and interoperability.

By relying on the existing 2G/3G circuit core, the CSFB method assures the

ready availability of legacy mobile voice services. If IMS is deployed for non-voice services, services such as GSMA RCS will be available also. However, thismethod suffers from two notable service drawbacks: during a voice call, themobile devices data service is de-rated from LTE back to 2G/3G data rates andQoS because there are two radios in the device, but only one (LTE or 2G/3G)may be active. The second drawback is the increased call setup time that isrequired for the device to switch from LTE to 2G/3G service, which ranges fromapproximately 1.5 seconds for 3G to 2.5 seconds for 2G, with perhaps a further


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3-second delay for some calls if the LTE and 2G/3G coverage areas are notprecisely aligned.

As for the network deployment, CSFB does avoid IMS VoIPs deployment andintegration. However, CSFB also requires clients on the devices and upgrades tothe mobility management entity (MME), plus the eUTRAN (though not as

extensive because it need not serve VoIPs QoS requirements). A keyconsideration is that all Mobile Switching Centers (MSCs) in the serving areamust be upgraded with a software release in order to accommodate interworkingof the CSFB calls between LTE and 2G/3G. Those operators who deploy andintegrate IMS for GSMA RCS service are well positioned to extend that sameIMS to provide VoIP in LTE, allowing them to bypass CSFB.

Figure 4 CSFB voice

Custom methods (circuit core, LTE packet access)

These methods provide voice service in LTE by reusing the existing circuit2G/3G MSC, with voice provided as VoIP over the LTE radio link and packetcore; however, it is interworked to the circuit MSC either using an interworkingfunction or by adding a VoIP telephony server to the MSC. These methods arenot 3GPP standards. One such example is VoLGA (Voice over LTE GenericAccess), whose specification is provided by the VoLGA Forum, and is an interimmethod selected by very few operators because of the needs of their networksand business environments. It is particularly useful to operators who have a


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predominantly 2G network, because it enables simultaneous voice and dataservices they cannot offer without LTE.

Similar to CSFB, these custom methods, illustrated in Figure 5, reuse the existing2G/3G network, but the difference is that voice is carried as VoIP over the radiolinks; and so the LTE device can use only one radio for both voice and data

services, remaining entirely on LTE radio access instead of falling back to 2G/3Gradios. This means LTEs high data rates are always available, even during voicecalls. Hence, these methods provide voice service for LTE, but with limitations onglobal roaming and interoperability, and a limited selection of handsets becauseof the lack of a significant subscriber base when compared to IMS VoIP andCSFB.

Although VoIP is used over the radio link, voice is converted to circuit in themiddle. Hence the benefits that subscribers of IMS VoIP and ACP-based voiceobtain with all-IP are not available. For example, wideband audio and servicessuch as video telephony that rely on an end-to-end IP path will not work.

Figure 5 - Custom methods: Circuit core, packet access (VoLGA used as anexample)

As for the network deployment, these custom methods defer IMS deploymentand integration, but like CSFB, require the deployment of new network elementsor significant upgrades to existing network elements that are done only to provide


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legacy voice service. Similar to IMS VoIP and CSFB, the custom methods alsorequire a voice client for the device, but are further challenged by the relativelysmall subscriber base that these methods will attract, which limits the ability ofhandset manufacturers to provide a wide selection of handsets. Also similar withthe other two solutions, they may require additional capabilities in the MME and

eUTRAN. Similar to IMS VoIP, the eUTRAN must support VoIP. Those operatorswho deploy and integrate IMS for GSMA RCS service are well positioned toextend that same IMS to provide VoIP in LTE, allowing them to bypass thesemethods.

Summarizing the three methods and recommendations

IMS provides the superior method for LTE voice and SMS because of what itenables:

o The widest ecosystem, based on One Voice, assuring the subscribersglobal roaming and interoperability and the widest selection of LTEdevices

o Competitive services, such as full blending of voice with other servicesand wideband audio

o Partnering with the ACPs for the mid- and long-tail of applications

o All-IP network operational savings

Individual operators network environments and competitive business situationsmay cause them to consider other methods. Table 2 summarizes the pros andcons of the methods.

Table 2 - Comparison of impacts on the network


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4.2 VoIP over LTE/LTE-Advanced and mobile WiMAX

VoIP over LTE/LTE-Advanced

The mobile communication standard Long-Term Evolution (LTE) is optimized for

data transfer and designed as a packet switched all-IP system only; it does notinclude any circuit switched domain currently used for regular voice and SMSservices. Demand for mobile broadband services is proven in the increase ofdata traffic. Recently, operators have been launching high-speed data networkswith LTE technology. However, voice and SMS business still generates around70% of total operator revenues globally and it has become clear that voicefunctionality needs to be provided on LTE networks.

With voice over LTE (GSMA VoLTE IR.92 specification, based on global 3GPPstandards) as a basis, consumers will be able to use telecom grade voice, videocalling and other new richer communication services on LTE smartphones.

In order for voice to run over an LTE network, an IMS (IP Multimedia System)core network needs to provide the telephony service over IP. MMTel (Multi MediaTelephony, deployed on the IMS core) is the solution that provides the telephonyservice (and presence, video calling, chat, etc.) in both LTE and fixed networks.The LTE radio access network and the Evolved Packet Core (EPC) also need tosupport VoLTE, which can be achieved by software upgrades.

Operators can use the same core network infrastructure (IMS) for VoLTE as forevolved enterprise and consumer services (mobile and fixed convergence overany access).

Consumers will be able to use operator-provided HD voice, video calling andother communication services (chat, presence, and more) on LTE smartphonesand other devices.

These services use a regular mobile phone number (MSISDN, Mobile SubscriberIntegrated Services Digital Network-Number), and VoLTE brings the operatortelephony values into an all-IP mobile broadband network: global interoperability,Quality of Service, roaming and seamless mobility, between any mobile devices,over any access. With VoLTE, both voice and LTE data services can be usedsimultaneously on LTE smartphones.

Figure 6 presents basic network overview of VoLTE solution (IMS, EPC, LTE) ininitial network deployment, including legacy network support when the user isoutside of LTE coverage.

A number of telecom industry leaders jointly developed a technical profile (theGSMA VoLTE IR.92 specification) during 2009, using the existing 3GPP-standards, for providing voice and SMS over an all-IP LTE network. In February2010, GSMA adopted this initiative and is now driving it further within the telecomindustry. In January 2012, GSMA published another new specification, profilingvideo calling over LTE (GSMA IR.94).


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Figure 6 - Basic network overview of VoLTE solution

By definition, the VoLTE profile specifies IMS-based voice services over LTE.However the architecture used for VoLTE can be used to deliver high-qualitycommunication services over any packet switched access capable of securingthe necessary quality of service (QoS). VoLTE specifications are modular andthe upper layers of IMS control and applications are fully reusable for other

packet-switched access types and the same service definition can be used. TheNNI (network to network interface) for a VoLTE and a voice over HSPA servicewill be the same.

Recent profiling for using the same services and service control for HSPA hasbeen done in GSMA (IR.58), and the architecture is also applicable for packetaccesses like EVDO, EDGE, WiFi, xDSL, cable etc. In addition, handovermechanisms for service continuity to circuit switched access are specified withSRVCC (handover of ongoing voice call from LTE to GSM/WCDMA/CDMA) andICS (IMS centralized services).

VoIP over mobile WiMAX

IMS is an open standardized multi-media architecture for mobile and fixed IPservices originally defined by 3GPP. This subsection explains on how VoIPservice is supported by IMS Release 7 over a WiMAX network. Figure 7 showsnon-roaming reference architecture of WiMAX network with IMS and PCC.


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Figure 7 - IMS-based WiMAX VoIP Service Network Reference Model

The Proxy-CSCF (P-CSCF) is the first entry point within an IMS subsystem. Itforwards the VoIP SIP request/response messages including registrationmessages and call set up/release messages to an I-CSCF or S-CSCF or forwardthem on towards the destination network. It is responsible to detect and handle

an emergency session establishment request. The P-CSCF is responsible togenerate the CDR, and maintain a security association between itself and theMS.

The Interrogating-CSCF (I-CSCF) is the first entry point within an operator'snetwork for all connections destined to a user of that network operator. DuringIMS registration, it assigns an S-CSCF for a MS and forwards the SIP messageto the S-CSCF. It performs the HSS location Query.

The Serving-CSCF (S-CSCF) performs the session control services for the MS. Itcontrols and maintains a VoIP session state as needed by the network operatorfor support of the service. When a caller initiates a call, the MS sends a SIP call

request message to the P-CSCF. The S-CSCF checks and ensures that thecaller is subscribed to the IMS service. If the caller does have a subscription, andif the caller is at a different network, the S-CSCF is responsible to find the entrypoint of the destination network and forward the message to that entry point. It isresponsible to forward the SIP request or response to a BGCF for call routing tothe PSTN or CS Domain.

The S-CSCF checks and ensures that the caller is subscribed to the IMS service.If the caller does have a subscription, it forwards the message to the P-CSCF inthe callers network. It Forwards the SIP message to a BGCF for call routing tothe PSTN or to the CS domain.

The Emergency-CSCF (E-CSCF) is responsible for routing emergency callrequests to the nearest PSAP based on the callers location information.

The PCRF encompasses policy control decision and flow based charging controlfunctionalities. The PCRF performs session binding (i.e., the association of theVoIP session information and applicable PCC rules to an IP-CAN session) andPCC rule authorization.

The PDF hides the distributed nature and mobility of WiMAX enforcement pointsfrom the PCRF. The PDF is connected to the Anchor SFA in the ASN via PCC-


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R3-P interface and supports SFA relocation by decoupling PCC-R3-P sessionsfrom Gx/Ty. The PDF is the distribution point for the PCC rules between the ASNand the CSN; it proxies the Gx (Ty) messages from the PCRF over the PCC-R3-P interface between the PCRF and the A-PCEF.

After device and user authentication, the MS enters the WiMAX network. The MS

performs P-CSCF discovery procedure and obtain P-CSCF address, then the MSperforms IMS registration if it is not registered (Figure 8). The MS makes a VoIPcall by sending a SIP signaling message which includes the media informationand QoS information. When the P-CSCF received the message, it checks if thecall is an emergency call, if it is, then it will forward the message to theEmergency-CSCF (details in next section). If the call is not an emergency call, itforwards the message to the MSs S-CSCF. The S-CSCF finds the callersnetwork entry point and forwards the message to that entry point. The P-CSCFalso passes the media QoS information to the PCRF to trigger IP-CAN sessionmodification at the caller side. The PCRF is responsible to generate the rules andcharging policy and delivers to the GW so that GW can modify or build a bearer

path for the VoIP call. The callers network entry point, I-CSCF, receives the SIPmessage from the callers S-CSCF, the I-CSCF forward the message to thecallers S-CSCF in its network. The S-CSCF checks and ensures that the callersubscribed to the IMS service, and forwards the message to the P-CSCF. The P-CSCF in the callers network passes the media QoS information to the callersPCRF to trigger IP-CAN session modification, the PCRF is responsible togenerate the rules and charging policy and deliver to the callers access networkGW so that the GW can modify or build a bearer path from the caller side tosupport the VoIP call.

Figure 8 - IMS Integration with Policy and Charging Control (PCC) frameworkNetwork Reference Model Depicting a mobile to mobile call


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4.3 Mobile IPTV, multimedia streaming

Streaming digital video over the IP core and access platforms, with variousnetworking mechanisms, has come to be called mobile IPTV. This streaming

technology considers the possible service transfer from wire to wireless/fromwireless to wire that is in place to ensure quality of service/quality of experience(QoS/QoE). The technology for mobile IPTV service can be deployed to meetseveral advanced challenges such as mobility, adaptability, ubiquitousness, andso on.

Mobility is the most critical factor in dynamically changing access points withoutan obstacle in order to adapt to the next generation network (NGN) environment.Also, different applications and services should be available with high quality inthe fixed/mobile convergence environment and on the devices.

Mobile IPTV services support differentiated QoS classes. The QoS classbetween a mobile node (MN) and a service provider can be initialized atsubscription time. The QoS class is dynamically changed by on-demandrequests. As shown in Figure 9, when the MN chooses to connect one of thenetworks or moves to another network, the MN requests the mobile or fixednetwork information (e.g., bandwidth availability, time delay, and packet-loss ratioof wired or wireless channel) to select one of the detected networks (e.g.,wireless local area network, wireless broadband, code division multiple access).

Figure 9 - Handover scenario of a mobile node using Mobile IPTV services


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Upon receiving a solicitation from the MN, an information server provides themobile or fixed network information related to the decision of the handover oraccess. After it is connected, the MN tracks the temporal properties (e.g., timedelay, packet-loss ratio, etc.) of the traffic stream against the agreed QoSclasses. For example, when the MN detects that the QoS class has gone down, it

can handover the service to a new network instantly.It is expected that the MN can define the access and handover policies to use itsservices. After detecting the presence of a mobile network, the MN could chooseone of the networks to obtain service, which is based on the QoS class requiredfor a particular mobile IPTV service.

Mobile communications over a wide area have become more and more popularbecause of the emerging wireless IP networks and services. However,multimedia transmission and streaming may suffer from an unreliable Internetconnection and heterogeneous bandwidth to the different receivers. Themultimedia streaming service, which is aware of the network resource, is still acritical topic for user-perceived QoEguaranteed service. For example, if a userwishes to watch a fast moving video with content such as sports or dance, amuch higher bit rate is required than for a user watching a slow-moving video.The bandwidth allocation in the distribution network will be very different for thesetwo users to ensure that both users receive the same QoE. The bit rate requiredfor the delivery of content at a fixed quality varies. Therefore, the priority of anindividual video stream must be allowed to vary correspondingly both over timeand from one stream to another.

Also, the personal mobile IPTV broadcasting service considers that the QoE-guaranteed video contents are transferred seamlessly between heterogeneousdevices based on each user profile. The user currently has various handheld

devices. It is always possible to buy an additional new device and use more thanone at the same time. In this case, to maintain a high QoE-guaranteed videoservice for the specific devices that a user owns, all of the terminal capabilityinformation is associated with each user subscription profile on the homesubscription server (HSS) system. The HSS function is defined as one of thesubdivided functions of an IP multimedia subsystem (IMS) service network that iscontained in the initial filter criteria.

Access to the supporting terminal capability and user profile information must becoordinated so that the context of the desired service can be received from theoriginating device to the target client device. This service involves seamlesslytransferring QoE-guaranteed video and displaying it between different devices

based on user profiles. To display the proper scene, the HSS, application server(AS), and softswitch (SSW) systems are composed to provide video streamsseamlessly for the heterogeneous devices environment. These systems considerboth the terminal capability and the user profile for personal mobile IPTVbroadcasting service as shown in Fig. 10. The HSS system controls and matchesall of the profile information in terms of service providers, users, and devices. Acall session control function (CSCF) can either play the role of a proxy (P)-,interrogating (I)-, or serving (S)-CSCF for seamless session controls.


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Figure 10 - Configuration of personal mobile IPTV broadcasting serviceconsidering terminal capability and user profile

The personal mobile IPTV broadcasting service is more suited for transferringreal-time sessions. Basically, it supports the capture of the session controlinformation from the originating terminal device and transferring it to the targetterminal device. This is done by a session control function that enables a user tohave heterogeneous mobile devices. For the scenarios to provide a personalmobile IPTV broadcasting service, the provider would first find an availablenetwork resource for streaming (e.g., bandwidth, multicast address). Then, itwould give this information to a content providing end-user that is controlled bythe HSS. This example is shown in Fig. 10 as illustrated at a football stadium.Second, the content providing end-user sends an extracting video stream by first

considering the liquid crystal display (LCD) panel sizes of heterogeneousdevices. It also considers an actual broadcasting video stream with multicast ormultiple unicasts by using the information in the AS. Third, the receiving client inthe mobile environment may be able to select a specific content. This will bebased on user profile and terminal capability with logical source informationprovided by content search results. In this process, service control functions mayparticipate in session routing information gathered by the SSW. This messagecontains actual content address and session information for receiving it. Fourth,


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the receiving client devices in the mobile environment can request a contentdelivery function to join the session. The receiving client devices obtain thecontent from the content delivery function that is designed and located in the AS.Together, the providing functions in the HSS, SSW, and AS control all of theservice providers, end-users, and terminal capability.

The IPTV contents provider provides a video stream on several heterogeneousdevices, for example, a cellular phone, PDA, computer, or HDTV (IPTV), and soon. These devices have various LCD panel sizes and different resolutions fromsmall to large, as these are heterogeneous networks (e.g., WLAN, WiBro,CDMA). The viewer can feel very uncomfortable if the multimedia contenttransfers from a widescreensized LCD panel to a small-sized LCD panel withoutconsidering the resolution and aspect ratios. The user may not recognize thescene that appears on the device in the mobile IPTV service environment.Quality degradation due to down-sampling, up-sampling, en(de)coding, and soon in the delivery channel can occur for a mobile IPTV service.

The term resolution is often expressed as a pixel count and as the spatialdimension in digital imaging that is captured and displayed on a device. Theresolution is defined by three cases: low resolution (LR), high resolution (HR), orsuper resolution (SR). Consider the following case: an LR image captured by amobile phone has a resolution of 128 * 128, but we would like to display it on ahigher resolution screen of 1024 * 768. SR processing techniques are requiredso that the blurring effect can be reduced to improve user-perceived QoE. In thiscase, additional and complicated processing techniques are required to convertthe LR image to a higher one. The aspect ratio of an image is defined as its widthdivided by its height. If an image is displayed on a device with an aspect ratiodifferent from that of the image, modification is required, and it is an interestingissue for frame rate conversion. The resolutions of commonly used displays andseveral commonly used aspect ratios for various applications are shown in Table3.

Table 3 frame resolution and aspect ratio comparison of heterogeneousdevices


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Video content-based adaptable processing for mobile IPTV

The AS system extracts scalable-based multiple video streaming from theoriginal video content that depends on the target terminal types and the allowablebandwidth of delivery channels. The AS system does this by using scalable video

coding (SVC) technology for the heterogeneous devices that are aware of themobile IPTV service. For non-scalable video content, the original video contentshould be prepared separately for the types of target user terminals and deliverychannels. It is not desirable to maintain different versions of video bitstreams ofthe same content depending upon specific target device types and allowablebandwidth of the delivery networks.

To support a variety of user terminal devices and delivery channel capabilities, ajoint standardization activity by the International Standards Organization/International Electrotechnical Commission (ISO/IEC), the Moving Picture ExpertsGroup (MPEG), and the International Telecommunication Union-Telecommunication (ITU-T) was developed. This SVC technology that targetsflexible and efficient representation of scalable video streams uses a singlebitstream to provide multiple spatial, temporal, and quality resolutions. SVCallows only for one-source-multiple-use by a single encoding; therefore, itproduces flexible video bitstreams at different scalability layers with high codingefficiency on mobile IPTV systems. Figure 11 shows how the SVC encoder canproduce scalable bitstreams at different scalability layers.

Figure 11 - Structure of the SVC encoder and end-to-end content delivery


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Each layer is encoded with separated encoders and the input video stream isspatially decimated to support multiple spatial resolutions. For each spatial layer(or signal to noise ratio [SNR] layer), the prediction comes from either a spatiallyup-sampled, lower layer picture or temporally neighboring pictures at the same

layer. Because the information of different layers contains correlations, aninterlayer prediction scheme reuses the texture, motion, and residue informationof the lower layers to improve the coding efficiency at the enhancement layer.The prediction module must interpolate when a layer is up-sampled to a differentspatial resolution. SVC supports a non-dyadic spatial resolution ratio amongspatial layers. Temporal prediction utilizes the hierarchical-B structure to supportmultilevel temporal scalability.

Temporal scalability is a technique that enables a single bitstream to supportmultiple frame rates. It is typically supported with a predetermined temporalprediction structure as defined by the standard. In MPEG-2/4, temporal scalabilityis achieved by the well-known IBBP prediction structure. Up to three frame rates

are supported by decoding only I-pictures, either I- and P-pictures, or all of the I-,P-, and B-pictures, respectively. The motion-compensated temporal filtering(MCTF) structure can be used as a preprocessing tool for better codingefficiency.

Although the SVC makes the scalable representation of video contents with highcoding efficiency possible, the complexity of the SVC encoder is quite high sothat currently, real-time encoding is very difficult to achieve. Thus, theoptimization of the SVC encoder is very important to greatly improve theencoding speed. As well, the useful SVC rate control mechanism is beingresearched to produce the best possible visual quality of bitstreams for theheterogeneous network capability with bandwidth.

SVC addresses several technical issues in new ways as follows:

A hierarchical-B structure is used to support multilevel temporal scalability.

Intra-texture, motion, and residue predictions are used to exploit correlationsamong spatial and SNR coding layers.

The enhancement layer information is used in the prediction loops to exploittemporal redundancy.

The context adaptive entropy coding and the cyclic block coding result inimproved coding efficiency.

Finally, SVC can be used for various applications such as multi-resolutioncontent analysis, content adaptation, complexity adaptation, and bandwidthadaptation.


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4.4 Mobile data services

The proportion of mobile users who accessed websites, downloaded apps, usedemail and used instant messaging services on their handsets all increased in the

year to Q1 2012, largely as a result of growth in smartphone take-up. The largestincreases were in the use of mobiles to browse the internet and access email,with the proportion of mobile users doing each activity increasing by 12percentage points, to 40% and 29% respectively (Figure 12).

Growth in the use of instant messaging services such as BlackBerry Messenger,iOS iMessage and multi-platform service WhatsApp was also evident, with 19%of mobile users saying that they used instant messaging on their mobile, thesame proportion who said that they downloaded apps to their mobile phone. Useof both of these services also increased in the year to Q1 2012.

Figure 12 - Use of data services on mobile handsetsOfcom research suggests that there was a fairly even split of internet use onmobile phones by location in Q1 2012, with 94% of those who accessed the webon their mobile handset saying that they did so at home and the same proportionthat they do this outside the home (Figure 13). The majority of respondents(60%) said that they accessed the web on their mobile equally inside and outsidethe home.

When considering the relatively high use of mobile internet at home, it isimportant to note that many mobile handsets will connect to a WiFi network whenin the home (according to Ofcom research, 61% of UK homes had a WiFi router

in Q1 2012). When in the home, those with a WiFi connected mobile phone areable to access the web without having to boot up a PC/laptop, and usuallywithout the reception issues which may arise when connecting to a mobile datanetwork.


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Figure 13 - Location of internet access using a mobile handset

The increasing use of internet services on a mobile handset was concentratedamong younger consumers in the year to Q1 2012 (Figure 14). While theproportion of consumers using a mobile handset to access the internet wasunchanged in the 55-64 year-old and 65+ age groups in the year to Q1 2010 (at17% and 3% respectively), it increased among all other age groups, the largestpercentage point growth being among 16-24 year olds, where take-up increasedfrom 57% to 68%.

Increasing use of mobile handsets to access the internet was also evident acrossmost socio-demographic profiles in the year to Q1 2012, with the C2 group beingthe only one for which there was not a statistically significant increase over theperiod.

Figure 14 - Use of the internet on mobile phones, by socio-economic group


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4.5 Mobile social networking

What are mobile social networks?

Mobile Social Networks is a means of transmitting information (communicating)using a mixture of voice and data devices over networks including cellular

technology and elements of private and public IP infrastructure (such as theInternet). Mobile Social Networking (MSN) refers to all of the enabling elementsnecessary for the contribution (posting and uploading) and consumption(viewing/experiencing) of social media across a mobile network. Key to thedefinition is the users implicit or explicit choice of network technologies. If theuser accesses a community service platform by way of any device that uses acellular network, alone or in combination with a commercially-accessible wirelessnetwork that has access to cellular network operator-owned resources, then thatactivity is included in the scope of this section. Furthermore, mobile communityoperators and participants are, and can be, influenced by the platforms, trendsand members of communities on the Internet. Mobile social networking can be

divided into:

Social media are non-professional digital photos, written communications (text-based blog postings), sounds (voice and/or musical expression) and video,integrated and digitally shared with a group of known and/or unknownnetworkconnected individuals. In this section, social media is used synonymouslywith end-user generated content (UGC);

Profiles are dynamic social media showcases (pages), which can be updatedby the author and enhanced with social networking features such as interaction;

Community portals are the destinations to which the user or subscriberpoints a software application (e.g., a mobile web browser) to obtain content in thecommunity or agglomeration of groups;

Communities in the context of social networks are defined as networks ofinterpersonal ties providing sociability, support, information, sense of belongingand social identity. In the context of MSN, communities are groups composed ofindividuals registered to provide the mobile communitys operator (host)information of a personal and/or professional nature. A social network operatorsmember or subscriber base frequently contains multiple, even numerous, groups.Communities form either virally (organically) as a result of people inviting others,or as a result of explicitly organized campaigns.

Social graphs, when the term is used in the broadest contexts, are the visual

representations of connections between individuals and groups. Social graphsare one of the outputs of social network analytics.

Social messaging in the context of MSN refers to a loosely defined set of toolsand platforms which permit people to exchange messages with groups(communities) or individuals, sometimes in combination with SMS but mostfrequently using a web platform and browser.


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History of mobile social networking

Social networking on mobile networks were launched as chat services in Japan,Scandinavia, Italy, France and the US from 1999 and evolved into chat roomsand texting community services. By 2004, camera-phones and 3G networksintroduced a second generation of platforms primarily for dating services (see

Table 4). In 2006/2007 a third generation emerged offering richer servicespredominantly based on WAP 2.0 and MMS. In 2008 a fourth generation of MSNprovides users with a high level of control over their information broadcast viatheir profiles or active handset services (location awareness, forexample).Technologies such as Web 2.0 widgets, Flash Lite, Open Social andthe OHA operating system, coupled with advanced social media capture andtransfer systems, has delivered a higher level of functionality to MSN.

Table 4 - The history of Mobile Social Networks


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Uses for mobile communities

In order to align service features with the needs of target users and to avoidovercrowding or creating overly complex user interfaces, mobile communitiesshould identify the human need that they satisfy. Although mobile communityservices tend to target a focused set of needs, a community can meet multipleneeds (see Figs 15 & 16). The platform on which the community is operating can

have multiple services which meet different needs.

Friending: People join Friending communities to satisfy their need to belong toa group or multiple groups in a community in which there are people known inthe real/physical world, or people who were unknown but share a commoninterest or passion. In essence this is the core of all social networking aboutstaying in synch with real-life friends.

Entertainment and curiosity: Mobile entertainment communities are designedto meet the need to have fun alone or in a group; this includes consuming alltypes of professional and UGC. Some of the mobile entertainment communitieswith UGC uploading, downloading and purchasing have some crossover with

Competition and could also generate revenues for users directly or indirectly.Entertainment communities could also share real-world experiences andrecommendations (eg restaurants, clubs, cultural activities, sports and musicalperformances). Using photo status updates, it is possible to satisfy this categorywith Friending, and therefore creating a strong cross-over between the twocategories.

Professional: A mobile community may assist its members to develop and/ormeet their professional aspirations. For example, there are communitiesdesigned to support information exchanges about developing and mutual testingof mobile Web sites. Mobile web designers, mobile game developers andapplication developers already participate in these communities. Likeentertainment-centred communities, the participants may sell their services toother community members and achieve fame or develop reputations.

Fame: Mobile communities using editorial teams can be a good place forpeople seeking attention to contribute their UGC. One community shares itsvideo footage of rare animals and those watching can ask questions of theperson who is on location. In these communities, creative members dedicatetheir time to contributing digital content such as screen savers, ringtones, video


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clips and broadcasting these to the largest number of people possible. For thosecontributing to this type of community, content is their currency and the morepeople who see their content the better. Some community services sponsoredand hosted by news organizations (citizen journalism), such as the BBC, are alsoclassified in this category.

Causes: Commonplace on the Web and will make transition to mobile platformswhen mobile-only Internet access increases. Focuses on members wanting tocreate social value around making the world a better place promoting peaceand social responsibility. These community members could focus on hosting andorganizing events, virtual or in the physical world, and campaigning for causessuch as documenting social warming. Many of the places where causes need tobe captured for others to witness and/or movements organized do not havebroadband Internet access or PCs.

Social shopping: Mobile social shopping communities can ask questions aboutproducts they are thinking of buying, obtain recommendations from friends abouta possible purchase, or can organize and negotiate low margin purchases basedon pooling of needs. This category of service will evolve quickly as advertiserscombine their desire to attract new customers with shopper profiles. Anotherdriver of this category of community is the high level of trust people place in therecommendations of their friends and family members.

Competition: In the next two years, new ways of competing with others in amobile community will emerge and cross over with desire to build a reputation ina virtual community based on skill level. These communities reward winners ofmobile games with prizes and by keeping track of the users worldwide ranking.While the cross over with fame communities is high, the goal is more clearlyarticulated and quantifiable than in fame (which is relative). Furthermore,

competitive communities are less focused on content, more on individual actionsand results in one-to-one or one-to-many contests.


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Figure 14 - Uses for mobile social networking

Figure 15 - Mobile social networking in the context of broad trends

By the end of 2007 there were 55 million registered participants using mobilecommunity services. Usually, there are three forecast scenarios: conservative,middle and high growth. The forecasts for the total number of unique mobilecommunity users, by 2012, ranged from 428 million in the conservative scenario,562 million in the middle scenario and 770 million in the high-growth scenario(see Fig 16).


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Figure 17 - Global total mobile community revenues in three scenarios,

2007-2012


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4.6 Location based services

Technological innovations, notably over the past decade, facilitate the collectionof substantial amounts of personally identifiable data about virtually anyone who

accesses information online. The rapid pace of change in both technology andbusiness models is fueling an active and growing debate around the world aboutthe appropriate use of that data. The following section focuses on Location-based services (LBS) defined as mobile services that combine informationabout a users physical location with online connectivity.

Location-based services have great potential for growth. While estimates vary,most research indicates that revenues are expected to triple in the next fiveyears. Although Apples application store has only been in operation since July of2008, it surpassed 25 billion downloads worldwide as of March 2012. This growthtrend extends to applications that rely on a users location: 7,200 location-basedapplications were offered in February 2010, compared to 3,300 location-

applications in July 2009. In June 2011, Foursquare, the location-based socialnetworking company, reported that it had exceeded ten million users who havechecked-in, posting their location to friends over 750 million times.

LBS have facilitated the development of several types of services andapplications:

Navigation and Travel Applications in this category allow a user to perform asearch based in part on location, i.e., to find the nearest hotel, ATM, bus stop, orparticular restaurant.

Tracking and Geosocial Networking Using applications in this category,users can share their location with friends, family, or strangers via online socialnetworks. Included in this category are applications that recommend restaurantsor other places of interest based on where a users network of friends haschecked-in, or that enables businesses to reward their customers for loyaltybased on repeated visits or check-ins. Other applications in this category enableparents to track the location of their children, family and caregivers to monitordementia patients, and pet owners to recover lost dogs.

Gaming and Entertainment These applications allow users to play games ontheir wireless devices with friends and family, persons in their local network, oranyone online. Some location-based games track phone movement and createreal-life scavenger hunts. This category also includes photography and video

applications that record the GPS location tags for photos and videos or allowusers to add location information to their photos.

Retail and Real Estate Retail applications enable consumers to find thenearest store, provide in-store maps, check real-time inventory data, or shopfrom their phone, while real estate applications show houses for sale or rent or inforeclosure in a given area.


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Advertising Location-based advertising allows users to receive ads relevantto their current location or based on patterns of frequently visited locations. Theads generally appear within other applications or in web browser windows.

News and Weather These applications provide users with weather and newstargeted to their specific location. Some applications provide connection to local

radio or TV providers for video or audio streaming, including access to policescanners.

Device Management LBS management applications allow users to track andcontrol their wireless devices from other sources (like a home computer) or tocontrol other devices from their wireless devices. This may include tracking,locking, or erasing a lost phone, or locating, unlocking, and starting a vehicle.

Public Safety Some LBS applications principally serve public safetyfunctions. In addition to the San Ramon Valley California Fire Protection DistrictCPR application described above, Google is developing an Amber Alertapplication that would inform users in the possible vicinity of missing or abducted

children. Another application that has been developed by the University ofMaryland enables students to alert campus security to an incident, provide itslocation, and stream live audio and video directly to the dispatcher.

LBS Technologies

There are three primary location technologies currently in use:

Cellular Sector/Base ID. Cellular handsets must constantly register theirpresence with the nearest base station in order to establish service even when instandby mode. Because the network operator has the exact location of each

base station, the location of the handset can be resolved to within the coveragearea. The radius covered can vary greatly, from several miles down to a cityblock or even an individual business or residence, depending on the cell densityand network architecture. Increased resolution can be achieved by triangulatingbetween overlapping cell sectors and is often used by providers to improveaccuracy for emergency response and to monitor coverage.

Global Positioning System (GPS). A substantial majority of mobile handsets, aswell as an increasing number of tablets and laptops, are equipped with GPSchips that allow the devices to calculate their own position to within ten meters orless. GPS can determine location independently of other technologies, though itis often used in conjunction with them to enable a quicker location fix or where

the required line-of-sight to the sky is obscured. While the location can becalculated entirely by the device, it is generally in the form of simple coordinates(e.g. latitude and longitude), and most mobile applications need to transmit thatdata to third parties in order to obtain maps or other information based on thedevices location.

Wi-Fi. LBS leverage the Wi-Fi technologies in handheld devices that scan theirsurroundings for known or open networks. Wi-Fi LBS rely on active surveys of anarea to note the unique identifier and location of each Wi-Fi base station. These


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may include everything from hotspots in coffee shops and hotels to residentialand business networks. When a Wi-Fi enabled device accesses a locationservice, the browser or application may send to the service the coordinates ofWi-Fi networks it currently sees, enabling the current location to be triangulated.

The technology employed in LBS is evolving rapidly and is becoming more

accurate, less expensive, and faster. In addition, the specific technologyemployed is generally transparent to the user. Depending on the application,once a users location has been determined, it is generally transmitted to one ormore entities, including third parties with whom the user may have no establishedcommercial relationship. Parties to whom location data may be available includethe wireless carrier to which the user subscribes, the handset manufacturer,operating system developer, application developer, location service provider,advertiser or ad network, and others. Slight shifts in an applications architecturethat may adjust the amount or level of detail of personal information collected bythe LBS can have profound privacy implications.

Power of Proximity

Everyone today with the power of their smartphones and social connect reach,want to know who or what is near them:

o A friend, a colleague, an acquaintance, an extended family...

o A coffee shop, a restaurant, a club, a hotel...

o A train station, bus stop, cab service...

o A job vacancy, a vacant studio/apartment...

o A Mega Sale...

List could be endless...

Getting connected to people and services in their proximity is one the most seekservices of a smartphone user. The advent of a huge open App distributionchannels and its easier access; has led to increasing interest of variousorganizations and service providers to rollout mobile location-based applicationsto smartphone users.

A location-based service (LBS) is an information or entertainment service, whichis accessible with mobile devices through the mobile network and which usesinformation on the geographical position of the mobile device.

LBS is a mobile computing service that provides information and functionality to

users based on their geographical location. It can be as simple as find theclosest cab station to looking for friends nearby, going up to a sales alert in ashop when individual walk past.

LBS in this era are both Reactive as well as Proactive (Figure 18).


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Figure 18 LBS vs. users

Users would ask an application or a system for information and receive aresponse. Information can be sent to users based on their location rather thanusers having to manually search for it.

Benefits provided of LBS Applications to Users and Service Provides is just notlimited to following:

o It helps in providing contextual information to user based on their requestas against a universe of data available on the Internet.

o Service providers can push relevant information to users, to enable themto speed up their decisions and activities.

o It reduces the amount of manual data entry required by users to access aservice; LBSs can automatically obtain location information and other datafrom smartphones to display results.

o By sharing location-tagged information, more up-to-date localisedinformation is available to all users.

o Receiving alerts, such as notification of a sale on gas or warning of atraffic jam

o Location-based mobile advertising

o Games where users location is part of the game play


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o Real-time Customer Services based on location

As per a report released by Juniper Research(Fig.19), the revenues from mobilelocation-based services are expected to go more than $12.7 billion with 1.5 billion

mobile users base by 2014. Revenues will come from sales of apps throughapplication stores and other channels, but also from mobile advertising tied tothose apps.

Figure 19 Growth of LBS


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4.7 Quality of Service (QoS) and Quality of Experience (QoE)

Due to the accelerating uptake of mobile broadband services, Quality ofExperience (QoE) assessment and optimization for wireless networks has

become a topic of vital importance. In this field, subjective quality evaluationmethods based on MOS (Mean Opinion Score) are the most widely usedapproaches for understanding and measuring perceived performance. However,while these methods have been proven to reliably quantify users degrees ofsatisfaction, they do not sufficiently address the following fundamental question:Which quality levels are actually acceptable to end users and which ones not?.

Powerful devices, compelling applications and falling subscription prices have ledto a growth of demand for mobile broadband services at an unprecedented rate.For example, Coda Research and Cisco expect global Mobile Broadband trafficvolume to roughly double every year, with approx. 418 million users generating1.8 exabytes by 2017. This development represents a huge challenge for

network operators and service providers: on the one hand, they need to addressthis demand growth by building faster networks with higher capacity while on theother hand, they have to operate on a profitable basis. Consequently, operatorsneed to trade off between investing in their infrastructure at minimum cost andproviding their end customers with maximum quality. This problem becomeseminent in the context of interactive web applications and file downloads, wherehigh latency and long waiting times caused by low quality network access directlytranslate into user annoyance and churn.

For these reasons, the notion of Quality-of-Experience (QoE) has gained stronginterest, both from an academic research and an industry perspective. QoErefers to an understanding of the qualitative performance of communicationsystems and applications that transcends traditional technology-focused Quality-of-Service (QoS) parameters such as delay, jitter, loss rates, and throughput.Instead, the concept is linked as closely as possible to the subjective perceptionof the end user. This user-centric focus is also reflected in the most widespreaddefinition originating from the ITU-T SG 12 which describes QoE as overallacceptability of an application or service, as perceived subjectively by the enduser., which may be influenced by user expectations and context.

Although this definition of QoE is based on the notion of acceptability, an actualdiscussion and definition of the concept is not provided in ITU-T SG 12. Inaddition, we witness that current QoE assessment practice neglects this aspect:

the most widespread subjective evaluation methodology, Mean Opinion Scores(MOS), actually focuses on measuring user satisfaction with the system undertest in terms of a degree-of-liking (based on ordinal scales such as ACR andDCR) rather than explicitly measuring overall acceptance of a given quality level.However, while such approaches enable fine-grained comparison and ranking ofdifferent quality conditions based on subjects opinion scores, they fail to provideconclusive results regarding a fundamental question: Is a particular quality levelacceptable to the end user or not?. The answer to this question is of high


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relevance to mobile network operators and service providers alike, sinceacceptance or non-acceptance of their offer (e.g. mobile broadband access)directly relates to winning or losing the customer.

Although its prominent role in defining QoE, there has little discussion takenplace regarding a common definition of the term acceptability itself. In the related

fields of economics and innovation research, two prominent concepts ofacceptability have been developed: The concept of willingness to pay definesacceptability as a simple outcome of an economic decision process, whereas theTechnology Acceptance Model (TAM) treats acceptability as a multidimensionalphenomenon, but does not provide a distinct definition. However, these conceptsare targeted towards acceptability before actual usage and acceptability of thewhole offer (incl. price/costs and system) and thereby neglects user decisionsmade during the stage of actual system usage.

In this respect, QoE research is more concerned with this latter concept ofacceptability in use: the majority of QoE studies so far have relied on directlyinquiring subjects regarding the acceptability of the quality levels experienced.However, this was done without explicitly explaining the concept, silently leavingthe definition what acceptance actually means to the individual test participant.

The main purpose of QoE and acceptability assessment is the understandingand optimization of user perceived quality of multimedia services. Usually,assessments are carried out by means of subjective user testing, with qualityparameters such as bitrate, packet loss rate etc. being controlled by the operatorand the resulting QoE being assessed via ordinal scales. Examples for suchscales are the ACR scale or the MUSHRA scale as standardized by the ITU-T.Whereas such methods and scales are appropriate to compare the performanceof different systems, they are not able to provide evidence whether the achieved

quality in fact is acceptable for the targeted user or not. Existing standardsaddress this shortcoming only to a certain extent. They specify the measuresgood or better (GoB) and poor or worse (PoW) as well as the terminating callsearly (TME) measure.

In contrast to the large body of work on overall multimedia service qualitymeasures on ordinal scales, less attention has been given to acceptabilitymeasures on binary scales and the relations between those two types. Aquantification of such relations would serve as an answer to questions like Is aMOS rating of 3.0 (fair) acceptable or unacceptable to the user of this service?.

The term of Web QoE refers to the user perceived quality of networked data

services, primarily focusing on HTTP based services. Prominent examples ofsuch services are web browsing and file downloads. Regarding assessmentmethodologies for Web QoE, recent work shows that the utilization of the MOSmethodology and ACR scales from video and audio quality assessment hasemerged as a de-facto standard for Web QoE evaluation.


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4.8 Future network sharing for mobile operators

The evolution of network sharing

A well-established business model in the telecom industry, network sharing has

existed in various forms more or less since the mobile phone began to take aglobal foothold in the 1980s. Many operators reap significant rewards fromincluding some form of network sharing in their business model. This may involveroaming or site sharing, and may even go as far as the sharing of radio assetsand the core network.

As industries mature, their focus on improving asset efficiency tends to increase and this is the case today for the telecom industry. Driven by factors such asderegulation, capex, high levels of competition and significant fixed costs, thistendency has also been seen in the utilities and airline industries, for example.To obtain targeted efficiency gains, these industries have modernized theirbusiness models by splitting up the value chain into specialized segments; this

has led to economies of scale in terms of assets, and supported a shift of focusand resources to the core business.

To drive operational efficiency and obtain other benefits beyond cost savings,most of todays operators use some level of outsourcing. In the next step of theindustrialization process the wholesale model operations and assets areshared among multiple players through a third party, resulting in greater savingsand further increasing efficiencies in opex and capex.

Wholesale network sharing is an evolved form of the network-sharing modelsthat have been used in the industry so far. This model supports shared networkcoverage and capacity based on Service Level Agreements (SLAs) and Key

Performance Indicators (KPIs), and brings the necessary economies of scale.The wholesale model is flexible as each operator can maintain differentiationthrough specific coverage-and capacity-expansion agreements that help them toreach their business goals.

Figure 20 - The wholesale network-sharing model


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Drivers for a wholesale model

Wholesale network sharing is considered by telecom operators as an alternativeto the joint-venture (JV) models they are using when they are faced with seriouschallenges such as a lack of licenses, tough market conditions and financialissues.

License shortages and a lack of available spectrum are two significant factorsdriving operators to find new ways of sharing networks based on cooperationwith a third party.

In many markets, licenses for new technologies, such as LTE, are about to belaunched. To use new spectrum in a way that is efficient from a technicalperspective, competitive and of maximum consumer benefit, especially when itcomes to LTE on the sought-after 800 MHz band, no more than three operatorstend to be granted the rights to use new bands to offer competitive services leaving some without the possibility of differentiating themselves with newservices. Those excluded from the market in these situations are then forced to

launch new technologies through shared networks.In markets such as Western Europe and India, regulators today tend to take aliberal view of the sharing of newly issued licenses, stimulating increasedcompetition and thus facilitating the wholesale approach.

Tougher competition increases the pressure on profit margins, affecting theability to generate revenue from user services. One way to relieve this pressureis to increase opex and capex efficiency, which is supported by the wholesalemodel through:

>>Sharing of operations and assets by multiple parties.

>>Reselling excess capacity.>>Maximizing the utilization of existing networks.

>>Eliminating the need to build yet another radio-access network (RAN) whenexpanding into new technologies.

>>Adopting a lighter operational model in terms of assets (an asset-optimizedmodel).

>>Improving cash flow, through tighter coupling of cost and revenue, coverageand capacity, expansions can be made on a just-in-time basis to meet subscriberdemands.

Divesting assets to a third party can generate cash that can be used todeleverage the business or direct funds to other investments. Capacity can besubsequently leased from the third party and the network can be consolidatedwith those of other operators to form a shared platform for common build-out.

Such third parties can in some cases commercialize and optimize a network froma financial perspective to a greater extent than a single operator could. Naturally,this increases the operators motivation to adopt a wholesale model and partakein savings created with additional operators.


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Comparing models

Figure 21 includes five possible network-sharing models. Of these approaches,active sharing of assets occurs in the active (and passive) operator JV model aswell as the third-party wholesale model. Bringing in a third party into activesharing is similar to the TowerCo model for passive sharing that has evolved

over the past 10 to 20 years.

Figure 21 - Financial benefits of network sharing

Traditional network-sharing models, such as active and passive JV, cancontribute to the creation of added value for the operator through improved opexand capex. However, a structured approach to network sharing it is not alwayseasy for competitors to reach an agreement on how to share, or how to leveragebest practice.

In the active and passive JV model, operators share the passive parts (such assites, towers and power) as well as the active parts (the radio network, backhauland core) of their networks. Typical agreements cover about 10 percent of anoperators passive asset base and 10 percent of active network assets, with acombined total of around 20 percent. With the effective implementation of awholesale model and off-load assets to a third party, this figure can double by off-loading to a third party.

Implementing a wholesale model is largely about optimizing the efficiency of thepassive and active parts of the network and operations bearing in mind thatdifferent parts of the network have varying characteristics in terms of lifespan,capital requirements, and technology complexity. When optimizing scale as well


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as operational and capital efficiency, it is natural to divide a wholesale-modelbusiness into two parts: a TowerCo/FiberCo model for sharing of passivecapacity; and a NetCo model for sharing active capacity. This approach isillustrated in Figure 22.

Figure 22 - Optimized set-up for passive and active network sharing

To ensure that such a model meets the needs of the participating operators interms of managed coverage and capacity, partners need to be able to guaranteeservices and performance across their passive and active network-elements.This can be achieved through end-to-end SLAs and KPIs.

Wholesale benefitsThe implementation of new business models in a maturing industry with a view toachieving improved efficiency is ultimately all about scale. The financial driversfor a wholesale model include: freeing up cash from existing assets (as anopportunity in itself, or in response to a financial constraint); addressing the needfor predictable opex and capex savings; and improving the cash-flow situation.

Cash flow can be improved by linking cost and revenue more closely. To achievethis, the wholesale business model creates the flexibility needed in order thatcoverage and capacity may be assigned to match demand.

With this model, operators can typically reduce their asset base by up to 20

percent, and increase cash flow by about 8 percentage points as compared withthe traditional network-sharing model.

An additional positive side effect of adopting this model is that an operator with asubstantially lighter fixed-asset base can potentially achieve an improved marketevaluation as a result of a perceived better risk-reward distribution, which moreaccurately reflects retail business.


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Some operational factors support the attractiveness of the wholesale model;these include the benefits of being more specialized, more flexible, and able todifferentiate. For example, this model reduces the technological risk associatedwith launching and scaling up new technologies. Operator differentiation can befocused on the individual operators unique marketing targets and expansion

plans, allowing operators to focus on services rather than on infrastructureissues.

From an overall market perspective, the wholesale model stimulates competitionby improving the position of sub-scaled operators and market entrants. Utilizingspectrum and infrastructure assets more efficiently makes room for more playersand facilitates an increased focus on services offered to users. The wholesalemodel fosters cooperation among operators; using a third party for governancecan reduce the impact of cultural barriers that might otherwise presentchallenges. Compared with JVs and mobile virtual network operator (MVNO)relationships, the wholesale model simplifies business interactions and enablesgreater influence over services provided and the ability to differentiate.

Some special considerations need to be addressed as the wholesale modelevolves. To unlock the additional value, industry players need to work together,with each player making a contribution based on its key capabilities (see Figure23).

Figure 23 - The wholesale ecosystem

To enable the use of a wholesale model, regulators need to allow license ownersto sell network capacity to other operators. Regulations must allow third parties toown active assets and sell shared capacity, and its essential that regulatorsmaintain their positive view of infrastructure sharing. New regulations andtelecom acts are currently being discussed and implemented in markets such as


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Western Europe and India, but it is important for this discussion process tobecome more widespread.

The continued success of network sharing requires operators to share a greaterpart of both business commitments and commercial risks.

Vendors can provide a number of important capabilities, including:>>The use of governance models that provide strategic, business andoperational management, so that operators can retain the appropriate level ofcontrol over the network to reach their business goals.

>>Transparency of performance and processes preventing sensitive commercialinformation from being shared.

>>Shared operational risk. This is associated with operating and securing theeconomic efficiency of a shared network.

>>Shared technical risk, which is enabled by guaranteeing modernization ofcoverage and capacity and long-term performance improvements.

When it comes to infrastructure, the tendency is for investors to have a long-termperspective and limited appetite for technology risk. When it comes to investingin a shared environment, stakeholders tend to finance passive infrastructure overactive assets. A greater proportion of the value chain could be captured if boththe passive and the active components in a partnership could be combined,hence sharing out the risk associated with the active infrastructure.

The use of a wholesale model presents a number of investment opportunities, asit:

>>Provides access to guaranteed long-term revenue streams.

>>Combines the lower risks of brownfield asset investments with theattractiveness of potentially higher returns from greenfield assets.

>>Opens new avenues for business in markets where licenses and spectrumavailability are limited.

The wholesale model presents a way for investors to expand into active sharingfrom a portfolio of passive infrastructure investments. The telecom communityneeds to invite investors into the discussion to help stimulate the evolution.

Typical scenarios

The following three scenarios illustrate when the wholesale model could be used

to advantage. While not an exhaustive list (and there are many possiblevariations of each scenario), these are representative of the circumstances inwhich operators tend to consider wholesale options.


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Wholesale models are being considered in many other types of situations. Eachscenario is different, driven by commercial needs, geographical conditions, andthe government and regulatory agendas of each individual market.

Carriers in common

The aviation and mobile-networks industries are similar in many ways. In theearly years of commercial aviation, airlines bought and serviced their ownaircraft, just as mobile-industry players built and maintained their own networks.

In the 1970s some aviation players started to move towards a leasing model toeliminate the upfront investment and align infrastructure costs with differing

revenue streams and the varying profitability of different routes. This is similar tothe wholesale model in mobile networks, where capacity is bought when neededrather than being invested in upfront.

Models in the aviation industry have evolved down to the component level so thataircraft engines, for example, are leased on a power-by-the-hour model, givingthe component supplier greater control over the maintenance schedules of parts.The leasing model allows suppliers to optimize equipment across their customerbase and reduce total cost of ownership. This is analogous to telecom suppliers


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providing operators with capacity and availability guarantees through SLAs andKPIs.

Airlines differentiate by arranging highly strategic flight schedules at key airports.Just like spectrum in the mobile world, arrival- and departure-slot assignmentsare the core assets of the aviation industry, where airlines seek to maximize

earnings from each route and use each one to competitive advantage.

In the 1990s, as competition intensified and earnings-per-seat declined, certainroutes became loss-makers. Reach (which is synonymous with coverage in themobile context) is extremely important for an airline, and the decision to ceaseoperating a specific route is not taken lightly. With the development of code-sharing (which is synonymous with active network-sharing), airlines gainedgreater flexibility to manage their routes, thus ensuring full reach anddifferentiation while improving the utilization and profitability of less frequentlyused routes.

The aviation industry is now focused on the revenue-generating activities of

pricing, flight and route management and customer service. As the example oflow-cost carriers versus full-service airlines demonstrates, airlines have a widerange of ways in which to differentiate even though the aircraft are shared. Thefunding and maintenance of the aircraft are secondary to the revenue-generatingactivities. Airlines trust key partners to execute these tasks in much the sameway as suppliers participate in the wholesale model.

Conclusion

The wholesale network-sharing model is likely to play an important role as thepressure on margins in the telecom industry continues to mount, and new waysto counter spectrum limitations are needed. Wholesale network sharing has the

potential to unlock additional value for all parties involved and improve thesustainability of the telecom industry while prom

Documents

Module4-Mobile Broadband Services-technology Regulation and Business Aspects