GDS International - The New Diameter Network Over the Top Applications Clouds and Machines

New Diameter Network: over-the-top, ClouDs aND maChiNes

WHITE PAPER

table of CoNteNtsIntroduction ��2

The Over-the-Top Opportunity ��2

Quality of Service ��3

Analytics and Subscriber Intelligence ��4

The Cloud’s Silver Lining ��4

Mobile Advertising ��5

Bundled Services for Enterprise Customers ��5

Consumerization of the Enterprise: Bring Your Own Device ��6

Mobile Commerce ��6

Machine-to-Machine Services ��7

The Network: Platform for Innovation and Applications ��9

The New Diameter Network ��9

New Diameter Network Use Cases ��11

Use Case 1: Virtual Private Enterprise Cloud ��11

Use Case 2: M2M Cloud ��12

Use Case 3: Monetizing OTT Video Applications ��13

Conclusion ��14

About Tekelec ��14

Appendix: Acronyms Used in This Document ��15

2

New Diameter Network: over- the-top, ClouDs aND maChiNes

iNtroDuCtioNBy 2016, two-thirds of the world’s mobile data traffic will be video1� Between 2011

and 2016, machine-to-machine (M2M) traffic will grow at a compound annual growth

rate (CAGR) of 86 percent and mobile cloud traffic at a CAGR of 95 percent2� This

escalating growth in third-party applications and services is radically transforming the

competitive telecommunications landscape� Communication service providers (CSPs)

once dominated the end-to-end service experience� Now, over-the-top (OTT), cloud and

M2M providers are gaining commercial acceptance and upending traditional business

models� They are already siphoning off more than 50 percent of the annual mobile data

applications revenues�3

To succeed in this intensely competitive market, CSPs have to move up the mobile data

value chain� They have to explore new service models by forging value-added business

relationships with OTT application providers� Furthermore, CSPs have to rethink the way

they view their network, optimizing it as a platform for innovation and applications as

well as connectivity�

the over-the-top opportuNityAdvanced devices and nearly ubiquitous high-speed access have freed subscribers from

the confines of wired connections� They’re able to consume content anywhere at any

time� That freedom is driving massive amounts of mobile data traffic to popular Internet

sites and web-based content� As a result, operators aren’t providing today’s most

relevant revenue-generating mobile platforms and applications� OTT companies like

Apple, Google, Amazon, Facebook, and YouTube are supplying them� Over 200 million

people have Apple iTunes accounts, and a large percentage of them access the content

using iPhones� Facebook has more than 800 million active users – more than the largest

operator in the world� More than 100 million of those users are accessing Facebook from

their mobile devices� Smartphone users are already spending over 60 percent of their

time using OTT applications�4

1 Cisco Visual Networking Index, 2011-2016, February 2012�2 Ibid�3 Chetan Sharma Consulting, 2010�

4 KPCB Mobile Internet Trends, 2011�

3

New Diameter Network: over-

the-top, ClouDs aND maChiNes

So what does this all mean? While the boom in mobile data applications represents

a significant opportunity for CSPs, it’s not without risk� Operators traditionally have

monetized their networks by charging for applications and services� OTT players have

successfully decoupled applications from the underlying infrastructure� In the subscriber

mind, value increasingly lies in the applications and devices rather than the network that

delivers the content� That leaves CSPs in the difficult position of providing the resources

to drive bandwidth-intensive services but playing a smaller role in the application and

device revenue chain�

There’s more at risk than revenues� The customer relationship itself is up for grabs�

Operators are losing their relevance in the mobile data ecosystem as subscribers spend

increasing amounts of time engaged with OTT application and content providers�

Even more troubling, subscribers are building direct commercial relationships with OTT

providers and sharing large volumes of valuable, personal data�

To maintain their position in the mobile ecosystem, CSPs need to transition from being

“network and device enablers” to becoming “service and content enablers�” To do so,

they have to leverage their expertise and assets to create new value-add service models

and forge commercial relationships with OTT providers�

Quality of Service

Over-the-top providers expect their content to be delivered with high quality anywhere,

anytime, and to any device� That’s something they can’t do on their own� CSPs provide

the critical link in the mobile ecosystem – highly reliable, high-performance networks�

Without the network, there are no mobile data applications�

CSPs can re-establish their relevance in the mobile data value chain by taking control

of how services are delivered over their networks� Delivering content with end-to-

end service management, meeting stringent service level agreements (SLAs), and

guaranteeing quality of service (QoS) are capabilities application and content providers

can’t offer� Operators have to realize that there’s a commensurate value attached to

those capabilities� Why not charge OTT providers for delivering guaranteed levels of QoS

to their customers?

For example, operators can charge a fee for a temporary QoS boosts for OTT

entertainment applications� By integrating policy functionality with an application-

programming interface (API), CSPs can enhance a subscriber’s QoS when network

congestion slows an application down� Another example is a gaming optimizer, which

provides bandwidth in increments up to 100Gb/s to online gaming providers to reduce

the risk of service delays, particularly during peaks around game launches and updates�

OTT players have

successfully decoupled

applications from

the underlying

infrastructure� In the

subscriber mind, value

increasingly lies in

the applications and

devices rather than the

network that delivers

the content�

4


analyticS and SubScriber intelligence

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

devices, location, subscription and billing information, and interests� That data gives

them unique consumer insights few businesses can rival� Operators can establish

profitable revenue-sharing relationships with application and content developers

and mobile advertisers by supplying valuable subscriber intelligence and performance

and usage analytics, while respecting subscriber privacy and security through

opt-in provisions� Equipped with that data, OTT providers can improve their

consumers’ experience by tailoring their service offerings, advertising and content

to each subscriber’s preferences and lifestyles�

the ClouD’s silver liNiNgHistorically, corporate IT departments built and managed the IT infrastructure - networks,

servers, storage, and applications� However, the types and number of applications,

devices and access networks are growing and becoming more complicated� Additionally,

business professionals depend on real-time, secure and ubiquitous access to all forms

of content, applications and communications� These trends have added a new layer of

complexity to information and communications technology (ICT) service requirements�

Traditional systems simply don’t have the scalability and flexibility to cost effectively meet

the demands of the new mobile workforce�

The cloud offers a new ICT model that abstracts resources and services from the

underlying architecture� The shift towards cloud services is a reflection of how people use

technology today� It enables the anywhere, anytime application access that businesses

and consumers demand – regardless of platform, device or location�

Operators have the assets, skills and footprint to tap into this growing market� They

manage every part of service delivery - from the devices to the network to the subscriber

database itself� CSPs are in a prime position to offer on-demand, at-scale cloud services

to enterprises and consumers in a multi-tenant environment�

Figure 1. The Cloud Service Provider Model

CSPs are sitting

on a cache of

contextual data

about their subscribers

– preferences, devices,

location, subscription

and billing information,

and interests� That

data gives them unique

consumer insights few

businesses can rival�

Cloud Service Provider

Cloud User

Enterprise

Cloud Vendor’s Infrastructure

Server

NetworkCloud

Host

Router

Router

5



However, the opportunity isn’t without risk� Cloud computing has the potential to

unleash huge volumes of data traffic on the network� Mobile cloud traffic is expected to

grow 28-fold between 2011 and 2016, a compound annual growth rate of 95 percent�5

Even more striking, cloud applications will drive 71 percent of the total mobile data

traffic by 2016�6

Mobile advertiSing

ABI Research predicts the mobile advertising market will top seven billion dollars in 2012

– up from just two billion two years ago – and hit the 24 billion mark by 2016�7 The

surging popularity of smartphones and tablets is largely fueling the dramatic growth�

Operators are in a prime position to mine this opportunity by leveraging their most

valuable asset – a deep knowledge their subscribers� Using that data, they can open

new revenue streams with innovative offerings like personalized advertising, location-

based advertising, and zero-rated services paid for by mobile advertising� One of the

most promising aspects of mobile advertising is that it will enable operators to create

two-sided business models� They can generate downstream revenues from their

customers and upstream revenues from brands and advertisers, who want to target

those customers�

The Saudi Arabian operator, Zain KSA, recently unveiled its permission-based mobile

advertising program, Dealz� Customers can choose to receive ads that match their

personal interests, ranging from fashion to technology, directly to their mobile devices�

The operator protects its subscribers’ privacy with simple opt-in and opt-out options for

the service�

SK Telecom is competing with mobile advertising giants Google and Apple with its new

mobile advertising platform, T-ad� The platform will deliver mobile advertising solutions

for smartphone apps and other media, including Internet-enabled TVs� The launch is part

of the operator’s strategy to broaden its mobile content business� T-ad complements SK

Telecom’s T-store, which is targeted to become a global app marketplace�

bundled ServiceS for enterpriSe cuStoMerS

Providing bundled ICT services that integrate multiple communication and collaboration

tools to enterprises offers a new revenue stream for operators� Businesses purchase

their communications as a service rather than managing them as an asset� The

operator delivers those services where and when needed, enabling real-time employee

collaboration, regardless of location or type of device�

Cloud computing has

the potential to unleash

huge volumes of data

traffic on the network�

Mobile cloud traffic

is expected to grow

28-fold between 2011

and 2016, a compound

annual growth rate of

95 percent�

5 Cisco VNI, February 2012�6 Ibid�7 “This Stock Heats Up the Mobile Advertising Markey,” www�dailyfinance�com, March 3, 2012,

6


AT&T announced its Unified Communications (UC) Services, a cloud-based, software-

as-a-service (SaaS) communication and collaboration solution, earlier this year� The UC

service integrates multiple tools - IM/chat, email, VoIP calling, web/audio and video

conferencing, voicemail, unified messaging and mobility - with presence behind a single

user interface�

conSuMerization of the enterpriSe: bring your own device

The number and diversity of mobile devices in the enterprise is skyrocketing� Growing

workplace mobility and enthusiasm for “bring your own device” (BYOD) are driving the

trend� It’s blurring the lines between the social and corporate worlds, creating major

challenges for enterprise ICT departments�

Enterprise consumerization introduces a completely new level of complexity to ICT that

ranges from managing multiple devices and operating systems to securing sensitive

corporate data� The existing model was developed for a time when IT departments had

complete control over corporate network assets and its users� Those tools and processes

don’t fit the requirements of the new mobile workplace� As ICT departments struggle

to keep pace with constantly changing requirements, the demands on budget and

resources are escalating�

The enterprise upheaval represents a large and profitable opportunity for operators� In

fact, nearly 70 percent of operators believe that the segment will be as important, if

not more so, than the mass-market consumer segment�8 CSPs can take the pressure off

businesses by providing cost-effective, cloud-based solutions to their technology issues�

For example, AT&T offers Toggle, an application for Android devices� It enables business

professionals to use their smartphones or tablets in their work and personal lives�

The application creates two device modes that separate and safeguard business and

personal data� Users can “toggle” between them with just a couple of taps� Verizon’s

Mobile Unified Communications (UC) enables Android users essentially to turn their

personal device into their office phone while on the go� The application’s “dual identity”

capability helps keep business and work calls and messages separate and secure�

Mobile coMMerce

Mobile commerce (mCommerce) is one of the most relevant, yet complex, mobile cloud-

based service opportunities� Yankee Group predicts there will be 500 million m-banking

users globally by 2015�9 Operators can monetize this opportunity by providing the smart,

secure pipes for financial transactions� They have knowledge and control of the devices

on their network and have a high degree of subscriber trust� They also have standard

authentication, authorization, and accounting (AAA) procedures in place� CSPs control

the subscriber identity module (SIM) in each handset� By storing authentication and

encryption in the SIM, operators can enable the public/private key exchange required

The enterprise upheaval

represents a large and

profitable opportunity

for operators� In fact,

nearly 70 percent of

operators believe that

the segment will be

as important, if not

more so, than the

mass-market consumer

segment�

8 Maraveds Research, published by Fierce Wireless9 “Mobile Money Forecast,” Yankee Group, June 29, 2011�

7



for secure mobile commerce� The resulting “digital signature” enables secure, low-level

authentication via the mobile device�

Operators own another valuable asset – the direct billing relationships they’ve established

with billions of customers� Leveraging those relationships, operators can simplify the

process of buying and paying for OTT applications and services� Over-the-top providers

recognize the value in collaborating with CSPs on billing� The relationship not only

creates a better buying experience, it also drives mobile commerce� Nokia reports that

integrated operator billing increased transactions at its Ovi Store by up to four times�10

Google has inked a similar deal with NTT DoCoMo� The operators’ subscribers have

the flexibility to purchase apps from the Android Market and bill them directly to their

monthly service plan� Purchasing is easier and faster since subscribers can bypass the

Google checkout process, which requires credit card payment� RIM has formed

a partnership with Telefonica to launch its BlackBerry App World with integrated

operator billing across its networks� Customers can charge their purchases to their

mobile account, allowing them to buy digital content without interrupting their

digital experience�

The growing adoption of the mobile wallet is another prime opportunity for operators to

expand their revenue stream� Operator billing is much simpler than traditional payment

methods like premium short message service (SMS)� With a few clicks, mobile wallet

users can make a secure purchase and add it to their monthly mobile bill�

Global operators are realizing the potential of the emerging service� Telefónica believes

“the mobile wallet lies at the heart of its financial services strategy” and plans a mid-

2012 launch for its Latin American and European markets�11 US operator Sprint has

entered an agreement with American Express that enables some of its smartphone

users to access Serve, the credit card company’s m-wallet service�12

maChiNe-to-maChiNe serviCes Several technology trends are converging to accelerate the growth of the M2M services

market� Most network-centric organizations, including CSPs, utility companies and

enterprises are migrating to all-Internet protocol (IP) infrastructures� With the shift to IP

service platforms and ubiquitous connectivity, M2M is developing into an important tool

for business transformation�

Connected devices are becoming increasingly intelligent, and their use is expanding

across a broader spectrum of industries� As a result, a completely new class of devices –

security cameras, cars, appliances, and vending machines – are attaching to the network�

The increasing numbers of and uses for M2M devices are creating a new wave of

network traffic, which expected to grow 22-fold between 2011 and 2016�13

10 Nokia’s Ovi Store Hits 5 Million Downloads Per Day as Users Enjoy New Symbian Devices and Apps,” Nokia press

release, April 12, 2011�11 “Telefonica to Introduce M Wallet,” taggito�com, February 14, 2012�12 “Sprint Is First Operator to Support Amex’s M-Wallet,”mobilemoneylive�com, July 2011�13 Cisco VNI, February 2012�

8


Figure 2. Growth in M2M Traffic

From a business standpoint, M2M applications offer CSPs enormous potential for

strategic differentiation and new revenue creation, including:

• Security - vehicle security and anti-theft, as well as vehicle emergency calls and alerts

triggered by location�

• Transport and logistics – location information and alerts

• Metering – managing data transmission from electricity, gas and water meters

• Health – guaranteeing quality of service for medical devices that monitor vital signs or

enable remote medical diagnostics

• Smart living/entertainment - remote controls, synchronization and smart appliances

For instance, Vodafone Global Enterprise and Boston Scientific Corporation are

developing mobile health monitoring solutions that remotely provide doctors with

real-time information about patients’ cardiac health and certain vital signs� China

Mobile, which entered the M2M market early on, views the technology as the third

wave of its long-term business offerings�14 The CSP’s M2M products include Car

Service Link, Elevator Guard and Fire Control System� Unicom New Horizon Mobile

Telecommunications has launched sector-specific M2M offerings that include Bank New

Horizon, Ocean New Horizon and Logistics New Horizon�

While the M2M market offers great promise for operators, it also poses significant

challenges� The hyper-connected M2M environment is characterized by huge numbers of

devices and unpredictable traffic patterns� To succeed, operators will have to address a

host of issues, including:

600,000

500,000

300,000

200,000

100,000

0

Tera

byt

es p

er M

on

th

86% CAGR 2011-2016

508 PB per Month

23 PB per Month

2011 2012 2013 2014 2015 2016

Source: Cisco VNI Mobile, 2012

14 “China Cellular M2M Connection Revenue to Exceed $2�7 Billion in 2016, Says ABI Research,”

Business Wire, February 27, 2012

9



• Network scalability

• Interoperability of 2G, 3G and LTE technologies

• Real-time quality of service requirements

• Security of both the network and the devices attached to it

If CSPs hope to accelerate M2M service revenues, they need networking solutions based

on a thorough understanding of M2M service architecture, quality of service needs and

massive device scalability requirements�

the Network: platform for iNNovatioN aND appliCatioNsIn the battle with OTT, M2M and cloud providers, the network is the CSP’s greatest

strategic asset - if it’s architected with the extreme scalability and elasticity to handle the

demands of a data-driven world� As operators engage in third-party markets, they can

anticipate much larger volumes of data traffic� CSPs must also address the increased

level of Diameter signaling traffic, which is expected to outpace data traffic growth�15

That volume will be a result of the cumulative impact of device and application growth,

personalized service plans, and an increasingly larger and more mobile subscriber base� A

Diameter signaling layer in the network core is essential to enable efficient and scalable

routing, traffic management, load balancing, and protocol interworking� Moreover,

operators will need the right tools to monetize the opportunity, including:

• Sophisticated policy server to define business rules for new service plans

• Flexible subscriber data management (SDM) to personalize services

• Analytics data to evolve services based on consumer and enterprise requirements�

It’s important for CSPs to realize that the network decisions they make today will

ultimately determine success or failure in the OTT, M2M and cloud markets�

the new diaMeter network

The New Diameter Network provides the foundation for a successful third-party business

model� It is comprised of control elements – policy servers, charging systems, subscriber

databases, gateways, and session and mobility management – that rely on the Diameter

protocol to exchange network, subscriber and charging information� The New Diameter

Network is an enduring framework that provides the scalability, reliability and flexibility

for mobile data application and signaling growth� It is composed of three critical

elements:

A Diameter signaling infrastructure at the network core facilitates signaling between

network elements such as online and offline charging systems (OCSs/OFCSs), mobility

management entities (MMEs), policy and charging rules functions (PCRFs) and home

In the battle with

OTT, M2M and cloud

providers, the network

is the CSP’s greatest

strategic asset - if it’s

architected with the

extreme scalability and

elasticity to handle the

demands of a data-

driven world�

15 Signals Research Group, 2010�

10


subscriber servers (HSSs)� Like the central nervous system, which relays messages back

and forth from the brain to different parts of the body, the Diameter signaling router

(DSR) integrates with all Diameter-based control elements and relays messages among

them� It routes, balances and manages message loads across Diameter elements as well

as the traffic between the mobile core and application/content providers�

The DSR also handles session management for the applications and services being used�

By binding subscriber information transmitted in Diameter messages to a single policy

server, the DSR ensures that all messages associated with the same subscriber or device

are routed to the same policy server�

A policy server, defined as a 3GPP-compliant PCRF, defines rules across subscribers,

device and networks using Diameter messages� It allows operators to easily create and

edit policies to manage subscribers’ QoS, charging rules, quotas, optimization, and

admission control� The policy server enables operators to:

• Determine who and what has access to which services – when and for how long

• Decide how to allocate network resources to specific applications

• Identify the charging implications of service usage and quota management

A user data repository (UDR) contains the essential profile, state, and usage

information for subscribers and their associated devices� It is the key data repository for

policy servers and Diameter signaling routers that need to correlate rules with individual

and groups of subscribers and manage identity information�

Growth Area Competitors New Diameter Requirements

Identity and Security Broker

Facebook, Google, Twitter, Microsoft, Symantec

DSR: topology hidingSDM: ID management, OTT dataPolicy: location, presence, alerts

Advertising/Payments

PayPal, Google, Facebook, Visa, Mastercard, Microsoft

DSR: topology hiding Policy/SDM: Policies for OTTs, personalize Ads

OTT/Cloud Services Amazon, Cisco, Apple, Microsoft, VMWare, Salesforce, Facebook, Google

DSR: topology hiding Policy and SDM in the cloud

M2M Specialized M2M providers, Hotspot Providers, Google, Cable Providers

DSR: scalabilityPolicy: traffic management, prioritization, security, pooled quotas, location alertsSDM: device management

QoS Services N/A Policy/SDM: guarantee QoS DSR: congestion management

Analytics Google, Microsoft, Facebook, Amazon

Policy and Diameter analytics

Figure 3. Growth Opportunities and New Diameter Requirements

11



New Diameter Network use Cases

uSe caSe 1: virtual private enterpriSe cloud

The number of smartphones and tablets in the enterprise is skyrocketing, driven by

increasing mobility and the BYOD trend� Enterprise IT departments must support a

remote/mobile workforce using a myriad of devices – all trying to access vital business

applications� In response to this challenge, many large corporations are migrating

mission-critical applications to CSP-hosted virtual private cloud solutions� They’re making

that move to enable anywhere, any device access to enterprise applications, reduce the

costs associated with supporting those applications, and improve overall efficiencies�

Operators can tap into this growing enterprise market with the New Diameter Network�

It provides the advanced session, subscriber and policy management required to deliver

on-demand access to business software and applications� Operators can offer a virtual

private enterprise cloud that enables their business customers to:

• Support remote / mobile workforce

• Enable multi-device support for employees

• Provide content portability across devices

• Manage enterprise application access, quality and charging based on user-defined

criteria, including:

– Number of concurrent sessions against a particular enterprise cloud application

– Class of subscriber (tier) within the enterprise group (sales, field service, executives,

etc�)

– Quota management based on subscription of individual employee, employee’s

group or entire Enterprise

– QoS priorities based on network conditions, access technology (mobile, WiFi,

xDSL, etc�), and subscriber class

Figure 4. Virtual Private Enterprise Cloud

6 7

1

82 4

5

3

PublicInternet

Tekelec Cloud App Manager

PCRFPDG

iPad

Cloud Provider

Virtual Private Enterprise

Cloud

12


uSe caSe 2: M2M cloud

Due to the sheer volume of devices it introduces into the network, M2M significantly

increases the amount of signaling and control traffic� By nature, that traffic is bursty and

unpredictable� It can have a severe impact on the core signaling network as well as the

subscriber, security and policy management domains�

Running M2M traffic on the same mobile core and policy and charging control (PCC)

infrastructure used by mass market consumers is risky� It can expose those subscribers to

network congestion and lower their overall QoS�

With the New Diameter Network, operators can mitigate that risk by deploying a

separate cloud overlay dedicated to M2M traffic, device management, security, and

policy decisions� The M2M overlay shares radio and serving gateway resources with the

rest of the mass market consumers� Separate packet data gateway, SDM, and policy

resources are dedicated to M2M traffic� Operators benefit from the M2M cloud overlay

with the ability to:

• Minimize the impact of M2M traffic on existing network resources and operations

• Scale M2M resources cost effectively: operators can introduce and grow M2M

services independent of the core network

• Deploy M2M services cost effectively: the M2M cloud doesn’t require all of the critical

components required in the core network like deep packet inspection (DPI)

• Simplify policy rules: the M2M cloud PCRF only handles M2M-specific logic� It doesn’t

have to handle or sort through the policies required for mass-market, consumer data

sessions� Rather than implementing an unwieldy, all-encompassing solution, operators

can create an architecture that’s optimized and streamlined for M2M�

HLR/HSS

GGSN/PGW

Policy

SGW

HLR/HSS

GGSN/PGW

M2M Overlay

Radio

Machine

Data Subscribers

M2M overlay withits own subscriberdatabase and PCC

Traffic splitat SGSN/SGW

Policy

InternetIntranet

Figure 5. Overlay M2M Sub-network

13



uSe caSe 3: Monetizing ott video applicationS

Powerful new devices and improved network capabilities have made mobile media more

compelling and available to the mass market� Mobile video is expected to grow at a

CAGR of 90 percent between 2011 and 2016�16

The increasing bandwidth being consumed by mobile video is straining network

resources, impacting QoS and quality of experience (QoE), and driving up network

investment� It’s clearly in every mobile operator’s best interest to find ways to mitigate

video’s impact on the network while still meeting consumer demand�

With the New Diameter Network, CSPs can define the way in which they allocate

resources to subscribers and applications to maximize revenues, reduce costs and create

a personalized service experience� Operators can manage and monetize the video

opportunity, using a variety of techniques that include:

• Control (blocking or optimizing) of video when users go over a certain overall usage

threshold

• Use of a separate, video-specific quota bucket in addition to the standard overall

usage quota�

• Application of service-specific “optimization” techniques for certain classes of users

or devices at certain times of day or locations in the network

• Creation of “managed IPTV services” where usage is not counted towards the user’s

overall data bucket�

• Throttle video traffic on congested nodes when mobile video consumes too much of

the network’s resources

• Opt-in service tiers – no video allowance, optimized video only, video only in off-peak

hours, or video for work-related applications�

Figure 6. Video Optimization

1

2

6

43

Tekelec Cloud App Manager

PDG

iPad

5

OptimizationCloud

CDNProvider

16 Cisco VNI, February 2012�

14


CoNClusioN Cloud, M2M and OTT providers are redefining the value creation model in the

communications market� They’re claiming an increasing share of the mobile content

market, threatening not only operator revenues but also customer relationships� To stem

that trend, CSPs have to transform their business models and networks to maintain a

foothold in the mobile data ecosystem� That requires a transition from being “network

and device enablers” to becoming “service and content enablers�” To do so, they have

to create new value-add service models and forge commercial relationships with third-

party providers� Moreover, CSPs have to leverage and optimize their greatest strategic

asset – their networks� The New Diameter Network is the foundation for a successful

mobile data business� It provides the critical network elements – Diameter signaling

infrastructure, policy server and UDR – operators need to manage and monetize the

M2M, OTT and cloud application and service market�

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.

15



appeNDix: aCroNyms useD iN this DoCumeNtAAA Authentication, Authorization and Accounting

API Application Programming Interface

CAGR Compound Annual Growth Rate

CSP Communication Service Provider

DSR Diameter Signaling Router

HSS Home Subscriber Server

ICT Information and Communications Technology

IP Internet Protocol

LTE Long Term Evolution

M2M Machine to Machine

M Commerce Mobile Commerce

OCS On-line Charging System

OFCS Offline Charging System

OTT Over the Top

PCC Policy and Charging Control

PCRF Policy and Charging Rules Function

QoE Quality of Experience

QoS Quality of Service

SaaS Software as a Service

SIP Session Initiation Protocol

SPR Subscriber Profile Repository

SMS Short Message Service

UDR User Data Repository

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.

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�

© 2012 Tekelec� All rights reserved� The EAGLE and Tekelec logos are registered trademarks of Tekelec� All other trademarks are the property of their respective owners�

www.tekelec.com

Tekelec Global Headquarters [email protected]

EMEA +44.1784.437000 APAC +65.6796.2288 CALA +1.919.460.5500