LTE Diameter Signaling Index 2nd Edition - · PDF fileLTE Diameter Signaling Index 2nd Edition...

Oracle White Paper September 2013

LTE Diameter Signaling Index 2nd Edition

LTE Diameter Signaling Index

Contents

Executive Summary 3

Industry Trends and Indicators 4

Oracle Communications LTE Diameter Signaling Index Forecast 6

Trend 1 Signaling Traffic Growing More Than Twice as Fast as Mobile Data 9

Trend 2 Policy Use Cases Drive the Most Traffic

Trend 4 Europe Middle East and Africa is the

10

Trend 3 North America Leads in Total Diameter Traffic 11

Fastest Growing Diameter Market 13

Trend 5 Latin America is the Long-Term Growth Region 14

Trend 6 JapanAsia Pacific Growth Driven by Five Countries 16

Trend 7 The Diameter Protocol Continues to Expand 17

The Future of Signaling 19

Annex A - Assumptions and Methodology 21

Annex B - Diameter Interfaces in the LTE Core 22

2


Executive Summary

The Diameter signaling protocol has taken center stage in the mobility world in the past few years Used for activity coordination between Internet Protocol (IP) network elements such as policy servers online charging systems and mobility gateways Diameter serves a crucial function in mobility And as operators have migrated their networks to LTE added new services and implemented more sophisticated policy use cases signaling volumes are skyrocketing

To predict and accommodate Diameter signaling growth service providers need to factor in subscriber profiles and behaviors and the types of services and devices they have and plan to introduce on their networks This is a shift for network engineers responsible for predicting traffic and signaling patterns Data sessions video downloads and the invocation of policy and charging rules all introduce additional signaling into networks all of which must be considered to accurately predict network needs

This LTE Diameter Signaling Index serves as a guide for network architects and engineers building Diameter networks where policy intelligently orchestrates the subscriber experience and Diameter signaling conducts communications among policy servers charging systems subscriber databases and mobility management functions As a measure of network intelligence the Oracle Communications LTE Diameter Signaling Indextrade is an important tool for service providers to manage and monetize mobile data

Last year we released the first edition of this forecast and analysis report to help operators understand the impact of the phenomenal growth in signaling on their networks and ultimately on their customersrsquo experiences In the 2012 report we forecasted a rate of nearly 47 million messages per second (MPS) by 2016 Using an evolved methodology this yearrsquos numbers also show significant growth In fact by 2017 worldwide LTE Diameter traffic will reach nearly 99 million MPS a 140 five-year compound annual growth rate (CAGR)

Other findings of note include

s Policy signaling volumes are expected to more than triple in the next year By 2017 policy will account for 62 of signaling volumes surpassing basic mobility

s Policy-related signaling is growing at a 164 CAGR through 2017 due to both the number and complexity of use cases

s Online Charging (OCS) is the fastest growing Diameter use case with a global CAGR of 180 through 2017

s North American volumes remain the worldrsquos largest reaching almost 43 million MPS by 2017 growing at a 127 CAGR

s Europe Middle East and Africa (EMEA) and CentralLatin America (LATAM) regional growth rates are both well over a 200 CAGR through 2017

s JapanAsia Pacific (JAPAC) continues to be a hybrid matureemerging market The lsquomaturersquo sector accounts for most of the LTE coverage and shows LTE Diameter signaling traffic growth characteristics similar to North America

s Subscriber behaviors and smartphone penetration continue to play key roles in the growth of Diameter signaling and

s The definition of the protocol itself is expanding The number of Diameter interfaces commands and associated parameters is growing rapidly adding to the need for careful architectural planning and constant interface upkeep

3


This report outlines global trends in LTE Diameter signaling growth through 20171 Serving as a barometer of demand for overall network capacity the forecast includes regional breakdowns of traffic and associated growth rates Likewise we analyze the key applications of Diameter and chart their impact on traffic and growth rates through the same forecast period

The Oracle Communications LTE Diameter Signaling Index CalculatorTM upon which the forecast is based is helping operator technology executives more accurately plan their networkrsquos architecture 2 At the same time a use-case specific understanding of customer behaviors and experiences is assisting operator business executives as they plan market-facing offers evaluate opportunities and incorporate third-party capabilities into their services

Industry Trends and Indicators Service providers evolving their mobility business models face two challenges offering compelling services and ensuring their networks can handle the associated performance and scalability requirements To serve these business models operators are expanding their use of IP throughout their 3G networks and ultimately to all-IP LTE networks This necessitates a move from the older RADIUS MAP and CAMEL interfaces to the newer more sophisticated Diameter signaling protocol

Though much attention has been paid to the pace at which IP traffic and the number of LTE connections are expected to grow this Index demonstrates that Diameter signaling traffic increases continue to outpace data traffic growth (see Trend 1 below) For this reason executives engineers and network architects are moving Diameter signaling up on their investment priority lists

The growth in signaling traffic correlates directly to the sophistication of services and pricing plans in LTE networks as the need for more subscriber and service intelligence triggers more communication among core network elements Examples of such service plans include

s Tiered services

s Shared data plans

s Casual usage and loyalty programs

s ldquoToll-freerdquo or sponsored data usage

s Mobile advertising

s Quality enhanced over-the-top (OTT) applications and content

s Cloud and machine-to-machine (M2M) services

Rather than risk under-engineering LTE networks service providers need to consider how data sessions video downloads and sophisticated policy and charging rules will affect signaling and then ensure that a robust Diameter network is in place to manage the signaling traffic

1 The scope of this report is limited to the LTE environment It is important to note that the Diameter protocol also ser ves the IP segments of 3G networks as well as fixed networks

2 Operators wishing a more detailed analysis are encouraged to contact us for a customized consultation employing the Oracle Communications LTE Diam shyeter Signaling Index CalculatorTM

4


Execution of these services requires frequent Diameter signaling among the following elements

s Policy Servers (PCRF)

s Online Charging Systems (OCS)

s Offline Charging Systems (OFCS)

s Home Subscriber Servers (HSS)

s Mobility Management Entities (MME)

s Policy Control Enforcement Points (PCEF) like Packet Gateways (PGW) and Deep Packet Inspection (DPI)

s Session Management such as Call Session Control Functions (CSCF)

LTE penetration rates projected by industry analysts indicate North America is still moving aggressively to replace legacy technology At 56 penetration it is currently the worldrsquos largest LTE market3 JAPAC is second but with only 11 penetration rate by the year 2017 this leaves significant room for growth In fact the JAPAC traffic rates being observed today are paltry compared to what is to come

Likewise industry forecasts about the sheer number of devices applications and services are a harbinger of what is on the horizon By 2017 more than 10 billion mobility devices will process more than 300 billion app downloads worldwide4 All of these will generate increased Diameter signaling traffic in the core network Many of them will be used in an ldquoalways-onrdquo mode as subscribers engage in multiple concurrent data sessions generating more Diameter signaling messages per subscriber

Finally the notion of ldquobusy hourrdquo will evolve because the level of signaling traffic an operator experiences is driven by more than just the number of subscribers It is also a function of subscriber behavior the devices they use and the services and applications they invoke As such a ldquobusy hourrdquo is also affected by these variables meaning that signaling traffic peaks and valleys will not necessarily occur at the same time of day

3 Informa Telecoms amp Media - World Cellular Information Ser vice 4 2013 Cisco Visual Networking Index

5


When operators embrace policy they typically begin with fair usage and traffic management use cases However as they increase both the number and complexity of the use cases and begin implementing more revenue-generating policy rules the amount of Diameter traffic between the PCRF and enforcement points expands rapidly We have observed at least one operator with more than 700 individual policy rules in its policy server with ongoing growth expected

The fastest growing use case is online charging (OCS) with just slightly more than 24 million MPS expected by 2017 a 180 CAGR This is especially true in regions where prepaid charging is dominant as prepaid services require more Diameter dialog between the PCRF and the OCS Regions such as LATAM and JAPAC are dominated by prepaid service plans driving a speedier pace of Diameter growth Not surprisingly offline charging (OFCS) is smaller and growing more slowly

Mobility (roaming from 3G to LTE networks and vice versa) does not show the same impact on Diameter traffic volumes as Policy and OCS We project Mobility in 2017 to reach 83 million MPS with a CAGR of 76

TREND 3 NORTH AMERICA LEADS IN TOTAL DIAMETER TRAFFIC

North America is presently the largest LTE market in the world with a 56 penetration rate predicted by 20177 As such signaling volumes are already rather hefty and the MPS growth rate is slower than in less penetrated markets We predict this region will generate 427 million MPS by 2017 at a CAGR of nearly 127

Policy is expected to surpass mobility this year as the leading source of signaling volume increases in the region with nearly a million MPS expected this year as compared to just slightly more than half that amount for mobility By 2017 policy use cases in North America will generate more than 25 million MPS at a 152 CAGR (Figure 6)

7 Informa Telecoms amp Media - World Cellular Information Ser vice

11


5

10

15

20

25

30

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)

Oracle Communications LTE Diameter Signaling Index 2013

North America LTE Diameter Signaling by Use Case Messages per Second (MPS)

Policy OCS OFCS Mobility

Figure 6 North American Regional Diameter Signaling by Use Case

The key factors influencing trends in North America include

s Declining 3G penetration We project mobility (3G-LTE roaming) will reach 31 million MPS by 2017 at a CAGR of 59 This represents more than one-third of the total global MPS for mobility in 2017 This share is down significantly from 61 in 2012

s Wi-Fi Roaming Once standards have been completed Wi-Fi roaming will begin to offset the 3G decline however modestly Due to its high LTE penetration rate North America will have the lowest per capita 3G-LTE roaming traffic of all regions Nevertheless there is some roaming growth in North America

s Policy Maturity The first policy use cases in North America were focused on traffic management but new use cases for revenue generation can be found as marketing organizations build compelling offers with policy There are also use cases supporting multishymedia sessions such as video and voice quality of service (QoS) in evidence

s Online charging is becoming more prevalent in North America which will contribute nearly 11 million MPS by 2017 representing a 205 CAGR in the forecast period By contrast OFCS MPS is projected to grow at a CAGR of 97 to 36 million MPS

12


TREND 4 EMEA IS THE FASTEST GROWING DIAMETER MARKET

Diameter signaling is growing at a rapid 224 CAGR in EMEA and will deliver 179 million MPS by 2017 Like North America there is increasing policy use case maturity in European LTE deployments including multi-media and more complex offers driving signaling traffic upward The region as a whole will experience an incredible 243 Policy CAGR through 2017 as seen in Figure 7 below OCS will also increase signaling with a 237 CAGR in the same period amounting to 38 million MPS by the end of 2017

2

4

6

8

12

10

14

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)

Policy OCS Mobility OFCS


EMEA LTE Diameter Signaling by Use Case Messages per Second (MPS)

Figure 7 EMEA Regional Diameter Signaling by Use Case

Because EMEA has more national boundaries regularly traversed compared to other regions LTE and related service type trends will differ According to industry reports LTE penetration for Eastern Europe is projected to reach 11 by 2017 Western Europe will grow to 25 penetration by year 2017 Finally the Middle East and Africa are expected to grow to 2 and 4 penetration respectively leaving tremendous potential for growth in future years8

Smartphone penetration will also be lower during this period which will have a direct impact on Diameter signaling traffic


13


Trends to consider in EMEA

s Given the penetration rates 3G will be in place in this region for several more years Market growth has slowed somewhat due to economic factors Consider for example that London did not begin LTE deployments until the 2012 Olympics and it has slowed post-Olympics

s Roaming is much more common in Europe than other regions due to the proximity of the individual countries and ease of travel between EU member states This ongoing roaming will trigger higher traffic levels in Diameter networks As the LTE penetration increases so too will roaming between 3G and LTE networks and between LTE networks driving signaling traffic upward

s Policy use cases will drive Diameter traffic as subscribers are expected to adopt more multimedia related services and operators deliver more complex policies in their LTE environments to coax subscribers to the newer networks

s While OFCS only represents 2 of the total MPS for this region OCS represents 20 Charging traffic (both OFCS and OCS) will increase significantly year over year due to increased subscription numbers

TREND 5 LATAM IS THE LONG-TERM GROWTH REGION

The LATAM region is at present the smallest market in terms of LTE subscriptions and LTE Diameter signaling The LTE penetration rate for LATAM is projected to reach only 8 by 20179

As such any increase generates outsized percentage growth rates during this time

Brazil is the exception where subscription growth is strong LTE subscriptions begin in 2013 and are forecast to reach almost 15 market penetration by 201710 While this is still comparatively low it does foretell a rapid increase in Diameter traffic

As with other regions policy will account for much of the signaling growth as shown in Figure 8 below Policy in LATAM will yield 14 million MPS by 2017 a 317 CAGR OCS will be second in both total traffic and growth rates with just over 1 million MPS expected representing a 233 CAGR for the same period

9 Informa Telecoms amp Media - World Cellular Information Service 10 Ibid

14


TREND 6 JAPAC GROWTH DRIVEN BY FIVE COUNTRIES

JAPACrsquos Diameter growth is attributable largely to its lsquomaturersquo markets Australia Japan Korea Hong Kong and Singapore These countries represent most of the LTE subscriptions in this region as each country will exceed 50 penetration by 201711

This is not the case for the rest of Asia Developing countries such as India show only a 7 penetration rate by 201712 As other Asian operators implement LTE in the coming years the region will likely experience a steady growth rate in both LTE device penetration and Diameter signaling

From a Diameter signaling perspective JAPAC will reach an impressive 352 million MPS by 2017 nearly double the amount in EMEA and 85 the size of North America The Policy growth curve through 2017 is comparable to North America as seen in Figure 9 OCS will generate 85 million MPS by 2017 again 85 of the North American traffic volume

Figure 9 JAPAC Regional Diameter Signaling Index

5

10

15

20

25

2012 2013 2014 2015 2016 2017


JAPAC LTE Diameter Signaling by Use Case Messages per Second (MPS)


LTE

Dia

met

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Per

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ions

)


16


Key points for JAPAC include

s JAPAC represents the second most highly penetrated LTE market by 2017 yet at 11 there is still tremendous growth to be had

s China will start to have a significant impact on regional LTE penetration by 2017

s Mobility is projected to reach 35 million MPS by 2017 a CAGR of 84 Mobility will continue to grow in this region as developing countries continue to maintain their 3G networks while they roll out LTE in metropolitan areas It is not likely that these countries will adopt LTE quickly and aggressively as subscriber buying behaviors still heavily favor feature phones

s Policy shows aggressive growth again thanks to the five countries with the greatest penetration and mature market characteristics A chief factor is video which is quite popular in Asia as policy use cases supporting QoS for video sessions become more common

s OFCS shows roughly a two-fold increase each year at a CAGR of 119 but OCS weighs in most heavily here Charging growth is directly related to subscriber growth in this case and as the market matures so too will the Diameter traffic associated with charging

s Asia will go through much of the same evolution as North America with policy and OCS galvanizing Diameter MPS growth

TREND 7 THE DIAMETER PROTOCOL CONTINUES TO EXPAND

Diameter is a nascent protocol and networks are still limited in their LTE coverage Today the biggest impacts to Diameter traffic remain the number of subscriptions subscriber behaviors and the proliferation of smartphones The result of these three characteristics drives policy use cases charging transactions and mobility transactions

But this wonrsquot be the case for long The 3GPP standards body is busily expanding the definition of Diameter as it outlines new interfaces to replace legacy systems These interfaces may not individually have a substantial impact on signaling traffic but collectively they will have a marked effect This is due to the nature of the Diameter protocol The Internet Engineering Task Force (IETF) defined a base set of commands and associated parameters called Attribute Value Pairs (AVPs) for Diameter The 3GPP has also defined specific commands and AVPs for each interface depending on the application the interface supports

For example the SLh interface has been defined for use in Location Based Services (LBS) The SLh interface only introduces two new commands to the Diameter protocol so the impact to overall traffic flow is minimal By comparison the S6a interface used between the Mobility Management Entity (MME) and the Home Subscriber Server (HSS) must support some 38 commands and more than 1000 AVPs Each command represents part of a Diameter transaction which makes Diameter much different than the SS7 protocol in which only a handful of common messages are used to support the entire network See Appendix B for a list of Diameter interfaces commonly invoked in LTE networks

17


The recently defined Sy interface allows the PCRF to bypass the GGSNPGW when accessing the OCS This does not directly impact Diameter signaling volume since this same interface already exists between the PCRF and the GGSNPGW and a service provider will choose one path or the other for a given transaction It may however present an opportunity for more complex policy use cases in the future

Finally there is the Access Network Discovery and Selection Function (ANDSF) the standard underlying the emerging HotSpot 20 service13 This new standard burst on the scene recently and the industry is busily defining how it will work The concern is how to handle the constant location updates as a subscriber moves from Wi-Fi hotspot to hotspot No standards exist yet for managing the flow of signaling messages generated by Wi-Fi roaming but work is underway Regardless of the outcome this will be another source of signaling traffic that could equal or surpass the signaling traffic generated for wireless roaming in a 3G network

13 HotSpot 20 is defined and certified by the WiFi Alliance (w w wwi -fiorg ) 14 Informa Telecoms amp Media - World Cellular Information Service

18


The Future of Signaling

This is Just the Beginning Industry professionals can expect Diameter growth to continue steadily over the next several years as both implementations and the role of Diameter expand

Worldwide LTE connections are growing at nearly 70 CAGR14 This is certainly dramatic growth but it pales in comparison to the years beyond this forecast where more than 6 billion subscribers many with multiple subscriptions will migrate to LTE networks and more sophisticated devices

And signaling growth is attributable to more than just the move to smartphones and tablets Subscriber behavior is evolving as they become even more immersed in a mobility-enhanced digital lifestyle Formerly occasional use for voice or email has exploded into nearly constant use of devices for social networking video streaming gaming banking enterprise productivity and commercial transactions

The Diameter world is more complicated than just sheer numbers of subscribers or the number of minutes one spends on the network The type of applications the amount of interactivity required with the application and the number of network elements touched by these interfaces contribute to the notion of lsquosignaling intensityrsquo as an essential metric for network planning

Cloud Services Network Function Virtualization and Software Defined Networks All Mean More Diameter Signaling There is much discussion in the industry today regarding cloud services Network Function Virtualization (NFV) and Software Defined Networking (SDN) While not the same these technologies have overlapping functions and benefits including better capital and operating expense profiles more flexible use of industry standard hardware and the ability to engage resources and deliver services in a more lsquoon-demandrsquo mode

Operators are rapidly embracing cloud-based services Hosted managed and Software as a Service (SaaS) business models are all gaining favor in operatorsrsquo business and service support environments As this business model matures operators are beginning to take the next steps to introduce the cloud into their network functions

The industryrsquos largest operators are participating in a 3GPP study group dedicated to defining the requirements for NFV The intent is to allow participants to quickly take advantage of this virtualization which is available today on a number of platforms Virtualization reduces the cost of Diameter implementations and brings with it the ability to employ and retire computing resources as needed

SDN is different from NFV even though it takes advantage of virtualization SDN seeks to enable full software-based control of all network functions as well as discrete control and packet routingforwarding planes Once functions in the EPC have been virtualized it is easier to implement an SDN coupled with the PCRF It is important that the PCRF be coupled with the SDN Controller so decisions regarding additional transport resources are based on intelligent rules defined in the PCRF

14 Informa Telecoms amp Media - World Cellular Information Service

19


SDN does not directly drive additional Diameter traffic but it does enable new services to be offered more quickly As these new services are implemented in the network the services themselves will drive additional Diameter traffic in the core

One of the benefits of NFV and SDN is the use of industry standard hardware whereas proprietary implementations use hardware and operating systems optimized for the function As such this migration toward standard hardware and operating systems will impose a temporary performance tax which in turn will drive some additional signaling Estimates found in multiple industry publications are as high as 80 but hardware and software vendors are actively seeking ways to tune their products for this new environment During this evolutionary period it is reasonable to conclude operators will have to provision some additional hardware to overcome the inefficiencies yielding incremental Diameter traffic Optimization tools will mature and eventually mitigate many of these inefficiencies in the future but for the present there will be some performance hurdles

Finally virtualization opens up new opportunities to extend Diameter to other networks along with resource sharing across networks This includes offering Diameter as a Service (DaaS) which will undoubtedly drive additional Diameter growth

The Role of Session Initiation Protocol (SIP) The SIP protocol replaces the ISDN User Part (ISUP) protocol used in Signaling System 7 (SS7) networks for call control Originally developed for enterprise Voice over IP (VoIP) SIP is now widely deployed as the standard voice call control signaling protocol As networks migrate to all-IP architectures signaling is divided between two technologies Diameter assumes the authentication authorization and charging roles in the network while SIP handles the call control functions

When enterprises implement IP PBXs they connect directly to the Internet but calls will not connect into the Public Switched Telephone Network (PSTN) This requires a PSTN Gateway and traditional trunks from the local service provider This may be costly for a smaller business and it tends to reduce the cost advantages of an IP PBX In response service providers now provide what is known as lsquoSIP Trunkingrsquo an IP connection to an Internet Telephony Service Provider (ITSP) which delivers connections to the Internet as well as the PSTN The ITSP also provides long distance services to the enterprise at a fraction of the cost of traditional long distance

As SIP continues to mature businesses become more comfortable with SIP technology spurring growth in this market According to an ATampT report quoting Heavy Reading IP Services Insider SIP Trunking will grow from 85 million SIP Trunks in 2009 to 243 million SIP Trunks by the end of 201315

Services such as WebRTC and Unified Communications will spur further growth in SIP signaling Future editions of this report will contain additional insights and forecasts regarding SIP

15 ldquoSIP Trunking Realizing the Value for SMBsrdquo http attv tp -mediacom smb 20


ANNEX A ndash Assumptions and Methodology

The methodology for crafting this forecast has evolved since the 2012 forecast report The number of LTE subscriptions has changed as we used updated external sources for this forecast This version of the Index is also based on new traffic models that take advantage of our experience in global service provider LTE networks We have fine-tuned our models to accurately reflect evolving subscriber behaviors

The forecast period shifted as this Index considers growth beginning in 2012 rather than 2011 and extending through 2017 Because 2012 saw higher penetration rates than 2011 the overall CAGR for Diameter changed accordingly

The Index is an LTE Diameter traffic demand model rather than an engineered network model It is a baseline model that serves as a starting point from which service providers can layer on additional factors such as network architecture topology capacity requirements geo-redundancy and others needed to design a robust reliable and scalable Diameter Network Readers are cautioned not to rely solely on this macro-level analysis to predict their unique needs

The Index focuses solely on LTE networks and does not account for Diameter traffic on 3G networks other than 3G to 4G roaming The Index also excludes IMS applications with the exception of VoLTE

Also the Index does not include additional Diameter traffic that will be generated by hundreds of millions of M2M devices that will come onto networks over the next few years Future versions of this report will account for the M2M market

The Oracle Communications LTE Diameter Signaling Indextrade relies on a number of industry resources such as LTE subscriber data from the Informa Telecoms amp Media World Cellular Information Service SIP information from Heavy Reading and the Cisco Visual Networking Index for general market context 3GPP and GSM Association specifications are used for determining traffic flows for each unique service The flows are then used to determine the number of Diameter messages that are created for individual session types

Traffic flows are also validated in our Diameter Traffic Laboratory which is a dedicated facility that uses our Diameter Signaling Router Policy Server and Home Subscriber Server network elements

A key input to the forecast is our proprietary Oracle Communications LTE Diameter Signaling Traffic CalculatorTM We make this tool available to operators to help them forecast the level of Diameter signaling associated with interdependent factors such as network growth and evolution subscriber growth and evolution and services growth and penetration Default values are based on our signaling experience with customer networks and serve as a baseline for dimensioning Diameter networks These values may also be modified by an individual operatorrsquos assumptions experiences and predictions Once the calculator is run the operator can see the volume of Diameter signaling traffic generated at each interface as well as the total forecast

In this report and forecast we use the industry standard metric of Messages per Second (MPS) for the volume of signaling traffic in a network The 3GPP standards refer to transactions as two messages (requestanswer) In this Index total messages are counted Transactions Per Second (TPS) are equivalent to two Diameter messages (requestanswer) so to derive TPS divide MPS in half

21


ANNEX B ndash Diameter Interfaces in the LTE Core

Interface Network Location and Function

Sh Allows subscriber data exchange between a SIP Application Server (AS) and the HSS

Dh Connects the SIP AS to the Subscriber Location Function (SLF) to identify the subscriberrsquos HSS

Sd Connects the PCRF to the newly-defined Traffic Detection Function (TDF) where it is used to identify what services subscribers are connecting to and applying rules from the PCRF to those sessions

Sy Connects the PCRF and OCS for real-time billing for example in quota management

Rf Charging data exchange between AS and OFCS for non-real-time billing when a chargeable event concludes

Ro Connects network elements to the OCS for real-time billing

Cx Authenticates users and allows subscriber data and location exchange between CSCF and HSS

Dx Supplies location data between CSCF and SLF to identify the subscriberrsquos HSS

Sp Provides a subscriberrsquos policy information from PCRF to the SPR

Rx Runs between an AF such as a P-CSCF and the PCRF for exchange of IP filtering information for service data flow and QoS criteria for bandwidth control

Gx Runs between the PCRF and the PCEF to exchange data from the PCRF to the enforcement points during data session negotiation

Gy Connects various PCEF enforcement points (such as GGSNs PDN gateways and MMEs) to send real-time billing information to the OCS

Gz Connects various PCEF enforcement points (such as GGSNs PDN gateways and MMEs) to send non-realshytime billing information to the OFCS

Gmb Connects the 3G GGSN and the Broadcast-Multicast Service Center (BM-SC) used for controlling bearer channels used in mobile video services

SGmb Connects the 4G PDN Gateway (PGW) and the Broadcast-Multicast Service Center (BM-SC) used for controlling bearer channels used in mobile video services

S6a Exchanges subscriber data and location information between MME and HSS and authenticates the subscriber device when it connects to the network

S6b Connects the Authentication Authorization and Accounting (AAA) ServerProxy and the Packet Data Network Gateway (PDN GW) for authentication of devices during a mobile data session

S6c Connects the PDN Gateway in the subscriberrsquos home network to a AAA server in a visited network

S6d Connects the LTE HSS and a 3G SGSN for authentication similar to the S6a interface

S9 Connects a PCRF in the subscriberrsquos Host Mobile Network (HPLMN (H PCRF)) and a PCRF in the Visited Mobile Network (VPLMN (V PCRF)) allowing for a subscriberrsquos services to be consistent when roaming in another network

S13 Enables identity authentication between MME and the Equipment Identity Register (EIR)

S13rsquo Connects the SGSN in a 3G network to the EIR similar to the S13 interface

Gi Connects the 3G GGSN to external IP networks when the subscriberrsquos SIM must be provisioned by an Access Point Name (APN) typically when a device connects to a private IP network

SGi Connects the 4G PGW to external IP networks when the subscriberrsquos SIM must be provisioned by an APN typically when a device connects to a private IP network

22

Oracle White Paper

September 2013

Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 USA

Worldwide Inquiries Phone +16505067000 Fax +16505067200

oraclecom

Copyright copy 2013 Oracle andor its affiliates All rights reserved This document is provided for information purposes only and the contents hereof are subject to change without notice This document is not warranted to be error-free nor subject to any other warranties or conditions whether expressed orally or implied in law including implied warranties and conditions of merchantability or fitness for a particular purpose We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document This document may not be reproduced or transmitted in any form or by any means electronic or mechanical for any purpose without our prior written permission

This report contains both statements of fact and future estimates relating to Diameter signaling traffic and global telecommunications markets and represents our current understanding of these matters This report is designed to offer general guidance to these subject matters only and is not intended as a substitute for a customerrsquos own judgment or for that of its professional advisors The information in this report is current only as of the date of release and may therefore not contain complete accurate or timely data

Oracle and Java are registered trademarks of Oracle andor its affiliates Other names may be trademarks of their respective owners

All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International UNIX is a registered trademark of The Open Group 0912


Contents

Executive Summary 3

Industry Trends and Indicators 4

Oracle Communications LTE Diameter Signaling Index Forecast 6

Trend 1 Signaling Traffic Growing More Than Twice as Fast as Mobile Data 9

Trend 2 Policy Use Cases Drive the Most Traffic

Trend 4 Europe Middle East and Africa is the

10

Trend 3 North America Leads in Total Diameter Traffic 11

Fastest Growing Diameter Market 13

Trend 5 Latin America is the Long-Term Growth Region 14

Trend 6 JapanAsia Pacific Growth Driven by Five Countries 16

Trend 7 The Diameter Protocol Continues to Expand 17

The Future of Signaling 19

Annex A - Assumptions and Methodology 21

Annex B - Diameter Interfaces in the LTE Core 22

2


Executive Summary














3







s Tiered services

s Shared data plans









4














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Oracle White Paper

September 2013



oraclecom






Executive Summary














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s Tiered services

s Shared data plans









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Oracle White Paper

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s Shared data plans









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2012 2013 2014 2015 2016 2017

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14

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)








13













14







5

10

15

20

25

2012 2013 2014 2015 2016 2017




LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)


16













17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom


















5









11


5

10

15

20

25

30

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)










12




2

4

6

8

12

10

14

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)








13













14







5

10

15

20

25

2012 2013 2014 2015 2016 2017




LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)


16













17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom













11


5

10

15

20

25

30

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)










12




2

4

6

8

12

10

14

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)








13













14







5

10

15

20

25

2012 2013 2014 2015 2016 2017




LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)


16













17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom






5

10

15

20

25

30

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)










12




2

4

6

8

12

10

14

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)








13













14







5

10

15

20

25

2012 2013 2014 2015 2016 2017




LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)


16













17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom








2

4

6

8

12

10

14

2012 2013 2014 2015 2016 2017

LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)








13













14







5

10

15

20

25

2012 2013 2014 2015 2016 2017




LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)


16













17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom

















14







5

10

15

20

25

2012 2013 2014 2015 2016 2017




LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)


16













17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom











5

10

15

20

25

2012 2013 2014 2015 2016 2017




LTE

Dia

met

er M

essa

ges

Per

Sec

ond

(mill

ions

)


16













17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom

















17





18












19





















21




























22

Oracle White Paper

September 2013



oraclecom









18












19





















21




























22

Oracle White Paper

September 2013



oraclecom
















19





















21




























22

Oracle White Paper

September 2013



oraclecom

























21




























22

Oracle White Paper

September 2013



oraclecom
















21




























22

Oracle White Paper

September 2013



oraclecom
































22

Oracle White Paper

September 2013



oraclecom





Oracle White Paper

September 2013



oraclecom





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