GDS International - Next - Generation - Telecommunications - Summit - Europe - 6

tHE NEW DIAMEtER NEtWORK

WHITE PAPER

tAblE Of CONtENtsIntroduction ��2

Capturing the Mobile Data Opportunity ��2

The Network: An Enabler or a Deterrent? ��3

Lessons Learned ��7

The New Diameter Network ��7

Architecting the New Diameter Network ��9

Conclusion ��11

About Tekelec ��12

Appendix ��13

2

INtRODuCtIONFor global service providers, the mobile broadband revolution represents the best and

worst of times� The surge of data-enabled devices and applications is the greatest

revenue opportunity that service providers have ever witnessed� But, the modern data

rush has its dark side� Network operators, who once enjoyed complete ownership

of their subscribers and the content that traveled across their networks, now find

themselves competing with over-the-top (OTT) providers and device makers�

Mobile data revenues are climbing, but the operators’ share of those revenues is

declining� Device makers and OTT providers have already captured more than 50 percent

of mobile data application revenues, and that number is growing�1 Apple, Google,

Amazon and Facebook are quickly becoming the top revenue-generating mobile

platforms�2

There’s more at stake than revenue; the customer relationship itself is up for grabs�

As subscribers turn increasingly to third parties for content, they’re forming close

relationships with application and device companies� More than 60 percent of

smartphone users’ time is spent engaging OTT applications,3 and 95 percent of mobile

data traffic heads straight to the Internet�4

Compounding this already complex mix is the pressure from surging data and signaling

traffic� Network resources are buckling under escalating loads, and operational costs

are soaring as operators shore up their network capacity� That pressure will continue to

escalate as the number of mobile-connected devices continues to proliferate, ultimately

reaching the 10 billion mark by 2016�5

CAptuRINg tHE MObIlE DAtA OppORtuNItyTo capture and monetize the mobile data opportunity, service providers must

fundamentally shift the way they approach their business, transitioning from being

“network and device providers” to “service and content enablers�” They have to explore

new service models and business relationships that will establish them as serious players

in the content ecosystem� And, service providers have to view their infrastructure

in a new light, focusing on the network as the platform for innovation as well as

connectivity�

Operators hold a trove of assets that Internet companies can’t match – resources that

can be parlayed into new service models and fresh revenue streams� They own the

networks that carry content to virtually every connected device and the relationships

with the millions of subscribers who depend on them for always-on connectivity� And,

providers are sitting on a cache of contextual data about their subscribers – preferences,

1 Chetan Sharma Consulting, 2010�2 Chetan Sharma Consulting, 2010�3 KPCB Mobile Internet Trends, 2011�4 Wi-Fi: Revenge of the Fixed Line Network, Jeffries and Company, January 2012�5 Visual Networking Index: Global Mobile Data Traffic Forecast Update, Cisco, 2012�

The new diameTer neTwork

More than 60 percent

of smartphone users’

time is spent engaging

OTT applications, and

95 percent of mobile

data traffic heads

straight to the Internet�

3


devices, location, subscription and billing information, and interests – that gives them

unique consumer insights few businesses can rival�

If service providers intelligently leverage those assets, they have the opportunity to create

and quickly roll out new, highly personalized services that are tailored to each subscriber’s

lifestyle and preferences� Rather than struggling to compete with OTT, Cloud and

machine-to-machine (M2M) providers, they can securely expose their network resources

and subscriber profile data, with the appropriate permission, to third parties to create

new, multi-sided wholesale and retail business opportunities� And, by empowering their

marketing and IT departments with easy-to-use tools to analyze subscriber and device

behavior, service providers can respond in real time to rapidly changing subscriber and

business needs�

tHE NEtWORK: AN ENAblER OR DEtERRENt?In the quest to manage and monetize mobile data, the network is an operator’s key

strategic differentiator and greatest asset� It is the foundation for evolving seamlessly to

Internet protocol multimedia subsystem (IMS) and long term evolution (LTE), managing

the growth of data and signaling traffic, and creating and delivering advanced,

personalized services�

In 3G, LTE and IMS networks, the Diameter protocol plays an important role in handling

critical functions within the control and service planes� It provides the authentication,

authorization and accounting (AAA) framework to give subscribers permission to access

services and enables operators to differentiate customers based on filters like usage and

time of day� It’s essential for mobility management, enabling subscribers to roam freely

to partner networks� And, Diameter is the language network elements like policy servers

4

Figure 1. Today’s Mesh Network


(PCRFs), gateway GPRS support nodes (GGSNs), charging systems, subscriber databases,

and application servers use to communicate with each other�

Network Complexity

In many of today’s networks, each Diameter-based element communicates with every

other component through direct signaling links, creating a complex mesh of connections�

Each Diameter node must handle all session-related tasks such as routing, traffic

management, redundancy, and service implementation� There’s a significant drawback to

this architecture that many operators haven’t considered� As data traffic swells, so does

the Diameter signaling traffic passing among network elements� Without a signaling

core to manage Diameter traffic, challenges arise related to scalability, congestion

control, network interconnect, and mapping subscribers to the appropriate subscriber

database or policy server�

As mobile data and signaling traffic continue to grow exponentially, this approach will

no longer sustainable� Tier 1 service providers have already experienced network outages

due to an overloaded network core� According to Current Analysis’ December 2011

report, Sizing Up the Diameter Signaling Market: Will It Live Up to the Hype?,

“� � � Mobile networks, especially those powered by LTE gear, will be bombarded with

control traffic that will eventually overwhelm the limited routing capabilities of Diameter-

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

repositories�6”

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

Mobile networks,

especially those

powered by LTE gear,

will be bombarded with

control traffic that will

eventually overwhelm

the limited routing

capabilities of Diameter-

based equipment,

such as policy servers,

online charging systems

and subscriber data

repositories�

5


SubSCriber Data SiloS

As service and content enablers, operators have to do more than manage network

resources efficiently� They have to acquire an understanding of their subscribers’

behavior� In most networks, the data they need to gather to do so is housed in multiple

databases – home location registers (HLRs), home subscriber servers (HSS), subscriber

profile repositories (SPR), session initiation protocol (SIP) servers, and AAA servers –

scattered across diverse networks� This makes it difficult to get the consolidated view of

each subscriber needed to deliver a consistent and personalized experience� It also drives

up network operational costs since each database must be individually maintained,

synchronized and provisioned�

Figure 2. Subscriber Data Silos Impact Subscriber Experience

User Pro�le 1Mobile Service 2/3G

User Pro�le 2Fixed Access VoIP

User Pro�le xLTE

6


iNCoNSiSteNt poliCieS

Similar problems plague policy management� Often, there are different policy servers

for different access networks, making it challenging to ensure the same quality of

experience (QoE) as a subscriber moves from one network to the next� Additionally,

service providers sometimes find themselves at the mercy of each vendor’s professional

services organization when it comes to creating new service policy rules and charging

for them, a costly process that can take months to complete� Current Analysis notes that

“operators should consider dismissing equipment makers that require operators to invest

heavily in professional services in order to introduce new services or to modify existing

service plans and service offerings�7”

7

Figure 3. Inconsistent Policies Impact Subscriber Experience

Wi-Fi @ CafePolicy 2

DSL @ HomePolicy 1

3G in the CarPolicy 3

Wi-Fi, Ethernet @ WorkPolicy 4

3G, Wi-Fi @ AirportPolicy 5

DSLDSL

ChargiNg iNtegratioN

Service providers are also contending with charging systems designed for an era when

the range of data packages was relatively simple� As the market becomes more dynamic

and competitive, service providers will need to support more complex, personalized

service packages� Heavy Reading recently queried operators about the challenges

they face implementing new data services� Sixty-four percent cited the complexity of

charging systems as the number one problem� High costs related to customization and

professional services ranked as a close second�8

The situation is further complicated by the fact that separate systems typically handle

offline and online charging� This fragmentation creates obvious problems when trying to

integrate charging and policy systems�

8

Heavy Reading recently

queried operators about

the challenges they

face implement online

charging systems for

new data services� Sixty-

four percent cited the

complexity of charging

and systems as the

number one problem�

7 Amdocs Introduces Pre-Integrated Policy and Charging Solution as First Post-Bridgewater Acquisition Offering, Current Analysis, November 2011�8 Graham Finnie, Policy and Charging: What Tier 1 Operators Want, Heavy Reading, January 2012�

7


lEssONs lEARNEDSolving the diverse challenges created by mobile data growth requires a holistic view of

the network� Service providers face a similar situation today to what they encountered

with early signaling system 7 (SS7) deployments� These deployments began with a

series of interconnected SS7 endpoints� As signaling traffic overloaded network nodes,

operators implemented an intelligent signal transfer point (STP) core to handle signaling

and call control� Operators face a comparable but more daunting challenge with their

Diameter networks� According to Current Analysis, “� � � Most indications are that the

amount of signaling generated by Diameter-based network elements will dwarf the

workload requirements of STPs�9”

It’s not a question of “if” the network will be taxed by swelling signaling traffic but

“when�” As a consequence, service providers need to take a long-range, strategic

approach to architecting their networks as they transition to 3G and LTE, designing them

from the outset to handle the most complex data and signaling challenges�

tHE NEW DIAMEtER NEtWORKThe New Diameter Network (NDN) is the key to a successful mobile data business model� The

NDN is far more than a router, controller, protocol converter or agent� It is the foundation for

delivering highly personalized data services and managing the explosive growth in Diameter

signaling and data traffic� The NDN is comprised of service and network control elements,

including gateways, charging systems, policy servers, mobility and session management, and

subscriber databases, that communicate using the Diameter protocol�

The three most critical elements are the Diameter signaling router (DSR), the policy server

and the user data repository (UDR)� The policy server sets the rules for data services, the UDR

personalizes those rules with profile, state and usage data, and the DSR manages all the

messages between policy servers, charging systems, subscriber databases and gateways�

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

Figure 4. The New Diameter Network

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

DiameterSignaling

Router (DSR)

O�ine Charging

Policy Server(PCRF)

Online Charging

User DataRepository

(UDR)

Mobility ManagementEntity (MME)

Policy ControlEnforcementPoint (PCEF)

SessionManagement

(CSCF)

8


Diameter SigNaliNg router

The DSR is at the core of the New Diameter Network� Like the central nervous system

which relays messages back and forth from the brain to different parts of the body,

the Diameter signaling router integrates with Diameter-based control elements and

relays messages among them� It relieves 3G, IMS and LTE endpoints of routing, traffic

management and load balancing tasks� Each endpoint only needs one connection to

a DSR to gain access to all other Diameter destinations� This approach eliminates the

Diameter mesh created by having direct signaling connections between each network

element� By moving intelligence from the network’s edge to its core, the DSR improves

signaling performance and interoperability between endpoints, streamlines routing,

and reduces network cost and complexity� Network expansion is simplified since routing

updates, maintenance and interoperability tests (IOTs) are centralized at the DSR� From its

vantage point in the network, the DSR provides an ideal point for network-wide policy

binding and protocol mediation� As the network demarcation point, it creates a roaming

gateway, linkages to Cloud, OTT, and M2M providers, and a central point for security

and topology hiding�

poliCy Server

The policy server acts as the decision point for policy actions in the network� As such, it

is one of the most critical components in any broadband optimization and monetization

strategy� The policy server communicates with core network systems, applications and

operational support systems/business support systems (OSS/BSS) to manage subscriber

and network information according to business rules defined by the service provider�

These rules allow operators to respond in real time to changing network conditions and

subscriber behavior by defining how to allocate network resources to subscribers and

applications and under what conditions� Equipped with intelligent policy control, service

providers can shape and manage network demand, revenue contributions from differing

classes of customers, capital expenditures, and overall growth of their mobile data

business�

uSer Data repoSitory

A user data repository for front-end databases, such as HSSs and subscriber profile

repositories (SPRs), is the cornerstone of intelligent subscriber data management (SDM)�

Cross-domain subscriber information – location, network authentication credentials,

access preferences, services, identities, and presence – is converged in one logical

platform, giving service providers greater control over their subscribers and service

experience� Unifying data greatly simplifies provisioning and maintenance since updates

take place in a single location rather than at each and every database� Multiple,

standardized interfaces enable the database to interact with diverse networks and

hosting applications, including Cloud-based and OTT�

By moving intelligence

from the network’s

edge to its core, the

DSR improves signaling

performance and

interoperability between

endpoints, streamlines

routing, and reduces

network cost and

complexity�

9

ARCHItECtINg tHE NEW DIAMEtER NEtWORK The decisions service providers make now for their New Diameter Network will have

far-reaching implications� As one Tier 1 operator put it, “One-hundred percent of our

revenue-generating mobile data services will run on it�” Architecture choices made today

will not only impact how well the network performs, but ultimately will dictate success

or failure in the mobile data market� It is, therefore, critical that service providers evaluate

a number of key factors as they design the NDN�

SCalability

The number of data-enabled devices and applications is multiplying rapidly as subscribers

increasingly rely on mobile networks as their primary access to the Internet� This shift is

driving not only a surge in the overall signaling and data traffic, but also in the amount

of traffic each subscriber generates� A single smartphone can generate as much data

traffic as 35 basic-feature phones, and each tablet can drive 3�4 times more traffic than

the average smartphone�10 In just the last year, operators have seen the number of

concurrent sessions per subscriber grow significantly� With no slowdown in sight, “the

generally accepted scenario is that billions of connected devices… will generate a tidal

wave of signaling chatter among the multiple control elements in IP networks�11”

Global service providers are already feeling the impact of these shifts through outages

triggered by signaling overloads� `For a network of five million subscribers, a single major

outage can cost tens of millions of dollars� Service providers clearly need to get ahead

of the curve and design and build their networks from the start with the scalability to

support hundreds of thousands of messages per minute, tens of millions on concurrent

sessions, and hundreds of millions of subscribers and devices�

reliability

Always-on, five nines reliability is the benchmark for global service providers� Provisioning

and maintaining that level of reliability in IP networks is complex� Data and signaling

loads are unpredictable� A single event, a new iconic device or even a single new

application can create a sudden, huge spike in traffic� And, when M2M devices begin to

dominate the network, billions of new connections will create unimaginable data and

signaling volumes� To maintain reliability in the all-IP world, service providers will need

a rock-solid Diameter network with a common operation, administration, maintenance

and provisioning (OAM&P) framework to handle network management, analytics,

congestion control, and overload protection�

10 Visual Networking Index: Global Mobile Data Traffic Forecast Update, Cisco, February 2012�

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


The transition to 3G, LTE

and IMS is unleashing

a signaling storm

created by “a tidal wave

of signaling chatter

among the multiple

control elements in IP

networks�”

10

Flexibility

Rolling out services quickly – in days or weeks, not months – is a critical weapon in

the battle to capture customers and generate revenues from OTT, Cloud and M2M

services� In this competitive and rapidly changing market, service providers can’t afford

long development and test cycles� They need the flexibility to rapidly develop, test,

implement, and get feedback on new services� To do so, operators must take control of

their own service creation with easy-to-use policy creation tools that support integrated

analytics, open interfaces, and a wide variety of pre-configured use cases� By coupling

those tools with a unified subscriber database with open application interfaces, service

providers can leverage dynamic data to create highly personalized, targeted services�

SeCurity

Operators are quickly realizing that they face the real threat of being marginalized by

non-traditional, Internet players� To prevent this erosion, they need to sharpen their

focus on the more profitable part of the mobile data chain – enabling content and

personalized services – by forging revenue-sharing relationships with third-party players�

Operators have the opportunity to claim their stake in the mobile content ecosystem by

leveraging their unique network assets and customer data to add value to OTT, Cloud

and M2M applications� But, they’ll have to tread carefully as they do to ensure the

security of their networks and the privacy of their subscribers� That requires a Diameter

network that allows providers to securely exposure select subscriber data, policies and

analytics to third parties while shielding the underlying network architecture from view�

The network must also enable providers to protect the privacy of their subscribers by

allowing them to easily opt-in and out of advertising campaigns and special promotions

that use subscriber data�

StaNDarDS

Diameter underpins several network control functions in 3G, IMS and LTE networks� For

maximum flexibility, each control element in the Diameter network must demonstrate

proven interoperability through a broad array of standards-based Diameter interfaces

such as Gx, Gy, Rx, S6, S9, Sy and Sh� Taking a standards-based approach frees operators

from the cost and constraint of proprietary solutions, allowing them to create a plug-

and-play Diameter network built with best-of-breed products�


11

SoFtware-baSeD approaCh

Change is the new norm in the fast-paced, volatile mobile data market� The days of

inflexible software and proprietary hardware are gone� Creating an elastic Diameter

network requires a new software-based approach that’s architected for scalability and

adaptability, using cutting-edge middleware and standard servers� Taking a software-

based approach to network design provides substantial benefits over legacy, proprietary

models� Databases, message processing, OAM&P, and policy applications can be

configured individually or in logical combinations on standard server blades or rack-

mounted servers in a central office or data center� Each application scales independently,

allowing the Diameter network to grow incrementally to support increasing subscriber

and traffic growth with a pay-as-you-go model� Service providers can reshape hardware

with only software-level changes to create new features, applications, use cases,

or technology� Applications share subscriber, network and device data to enhance

performance, policy control and subscriber quality of experience� And, the total cost of

ownership is lower because having a common platform simplifies interoperability testing,

maintenance and support�

iNtegrateD Diameter SolutioNS

The ability to combine multiple Diameter applications to create integrated, standards-

based solutions is a critical requirement of the New Diameter Network� Integrated

signaling, policy and subscriber data management solutions give service providers the

ability to create use cases uniquely tailored to their market, subscribers and business

models� For example, by combining Diameter routing with policy and subscriber data,

a service provider can steer premium roaming subscribers to its preferred partner’s

network� Similarly, operators can provide preferred network and policy handling to

premium enterprise customers by routing the Diameter messages from that group to a

particular policy server for special treatment such as enhanced quality of service�

CONClusION The surge in data-enabled devices and applications is the greatest revenue opportunity

that service providers have ever seen� However, that opportunity will not translate into

rapid mobile data revenue growth for service providers unless they can compete with

compelling personalized services and manage the rising data and signaling tide� Success

on those fronts will largely be dictated by the architectural choices service providers

make for their mobile broadband networks� By implementing a well-crafted New

Diameter Network, service providers can create an intelligent, elastic foundation for

service innovation that provides the capacity, flexibility, reliability, and security to handle

the most challenging data and signaling loads�


Creating an elastic

Diameter network

requires a new

software-based

approach that’s

architected for

scalability and

adaptability, using

cutting-edge

middleware and

standard servers�

12

AbOut tEKElECTekelec’s intelligent mobile broadband solutions enable service providers to manage

and monetize mobile data and evolve to LTE and IMS� We are the architects of the New

Diameter Network, the foundation for session, policy and subscriber data management�

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

machine-to-machine and personalized services to consumers and enterprises� For more

information visit www�tekelec�com�


13

AppENDIx: ACRONyMs usED IN tHIs DOCuMENtAAA Authentication, Authorization and Accounting

BSS Business Support System

DPI Deep Packet Inspection

GGSN Gateway GPRS Support Node

HLR Home Location Register

HSS Home Subscriber Server

IMS Internet Protocol Multimedia Subsystem

IOT Interoperability Test

LTE Long Term Evolution

M2M Machine to Machine

NDN New Diameter Network

OAM&P Operation, Administration, Maintenance and Provisioning

OSS Operational Support System

OTT Over the Top

PCRF Policy and Charging Rules Function

QoE Quality of Experience

SS7 Signaling System 7

SDM Subscriber Data Management

SIP Session Initiation Protocol

SPR Subscriber Profile Repository

STP Signal Transfer Point

UDR User Data Repository

VoIP Voice over Internet Protocol


www.tekelec.com

This document is for informational purposes only, and Tekelec reserves the right to change any aspect of the products, features or functionality described in this document without notice� Please contact Tekelec for additional information and updates� Solutions and examples are provided for illustration only� Actual implementation of these solutions may vary based on individual needs and circumstances�

© 2011 Tekelec� All rights reserved� The EAGLE and Tekelec logos are registered trademarks of Tekelec� All other trademarks are the property of their respective owners� TKLC-WP-031-09-2010

Tekelec Global Headquarters [email protected]

EMEA +44.1784.437000 APAC +65.6796.2288 CALA +1.919.460.5500

Tekelec has more than 300 customers in more than 100 countries. For information on our worldwide offices, visit the Tekelec website at www.tekelec.com/offices.

http://www.tekelec.com/offices

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GDS International - Next - Generation - Telecommunications - Summit - Europe - 6