Penetrating into Mobile Market
A Strategic Proposal
©James Ni
O8/21/2008
Some Facts� Wireline Network subscriber population is shrinking
� Mobile Network will replace Wireline Network
� Mobile phone is convenience, flexibility, feature rich and multi-
functional
� Per head count mobile subscriber vs. per household wireline
subscriber
� US Mobile Subscribers surpassed 250 million in Nov. 2007 (85%
of population)
� Other countries have the same trend
� More people are considering to disconnect the wireline phones
Mobile Network is Evolving …� Just like VOIP is replacing PSTN
� IP/SIP based IMS core is replacing traditional mobile
core
� IP/SIP based IMS core started the fix mobile
convergence era
� Femto access will break down the air interface barrier
� This does not only mean technology advance, but also
business opportunities
� Mobile operator monopoly is collapsing
� Penetrating opportunity for new comers
What are the opportunities all about� IP/SIP based IMS core opened up the core network
signaling and media
� Opportunities for wireline VOIP operators
� Femto access opened up the air interface
� Allows non-mobile operators to reach the mobile users
� Mobile operators still dominate the majority coverage
� However …
� Uncovered spots are opportunities
� less populated rural areas
� Inside the building
� Enterprise may seek for more economical alternate solutions
Some Technical Background� IP Multimedia Subsystem (IMS)
Some Technical Background� Femto Cell – Home base station
FGW
MNO VoIP Network
SoftSwitch/
MGCFMGW
Mobile Core
Network
(SS7)
HLR MSSSMSC
ISUPv3
M3UAG.703
Voice
MAP-D MAP-E
Gd
AAA Server
MAP-D MAP-E
Femtocell
IP/IMS Core Network
RADIUS / DIAMETER SIP SIP
IPSec
RTP
AS
Femto Access Architecture
Build Up Low Cost Mobile Network Using Femto Cell� Femto Cell provides air interface � Base Station
� Broadband Internet connects Femto to IMS core via
FGW �make use of customer’s broadband
� Enterprise leased lines
� Residential broadband (Cable, DSL, FIOS etc.)
� SIP for call signaling
� Interworking to PSTN/PLMN
� Challenges
� Spectrum license & usage (secondary market lease or rental)
Macro Cell
Macro Cell
Macro Cell
Macro Cell
Macro Cell
Macro Cell
Macro Cell
Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell
Femto
Cell Femto
Cell
Enterprise
Residence
Less populated rural area
Squeeze in the Uncovered Spots
How the cash flow comes in …Business Model I� Enterprise mobile traffic offload / redirect
Analog
Phone
SIP Phone
PSTN
IP
MS FAP FGW
CSCF
AS
MGC/MGW
ICS200
ICSG
SG
PBX
HLR
Signaling path
Media path
How the cash flow comes in …Business Model I� Enterprise mobile traffic offload / redirect
� In-house mobile ��in-house mobile calls
� MS ��FAP��FGW��CSCF / AS��MCG/MGW
� In-house mobile ��PBX phone
� MS ��FAP��FGW��CSCF/AS
��MCG/MGW��PBX��PBX phone
� In-house mobile �� PSTN /IP phone
� MS ��FAP��FGW��CSCF/AS
��MCG/MGW��SG��PSTN�� PSTN phone
� MS ��FAP��FGW��CSCF/AS ��MCG/MGW��IP��
SIP phone
� Provide VLR function to incoming calls from outside
� Provide outgoing call roaming services
How the cash flow comes in …Business Model II� Personal Residential use
Analog
Phone
SIP Phone
PSTN
IP
MS FAP FGW
CSCF
AS
MGC/MGW
ICS200
ICSG
SG
HLR
Signaling path
Media path
How the cash flow comes in …Business Model II� Personal Residential use
� Profit-sharing plan to encourage residential femto subscriber to
provide access to others
� Charge minutes to in-network users
� Charge roaming service fee to out-network users
� Bundle mobile service and VoIP service to attract
subscribers
� Shipping femto devices v.s. the current SIP adaptor
� Users use their mobile handset to gain access
� International call is the killer service
How the cash flow comes in …Business Model III
� Coverage Farm Service
� Provide coverage services to various mobile providers
� Charge roaming services fee
How the cash flow comes in …Business Model IV� International Coverage
� Femto device can be used anywhere in the world with
broadband access
� Provide international coverage as home service
Key Issues
� Spectrum license
� Buy or lease from secondary market
� FCC has rules and guidelines on this
� Make agreement with spectrum owners
� Roaming agreement with other mobile operators
Network Equipment Needs
� Network equipment
� Owned equipment and technology
� CSCF(SIP), MGC/MGW � ICS2000
� SG � ICSG
� Partially owned equipment and technology
� VLR and application server � PMC (need to add registration and
MAP/ANSI.41 support)
� Can also buy 3rd party equipment
� Not owned equipment and technology
� Femto access point (FAP)
� Femto gateway (FGW)
� 3rd party equipment is available
Network Service Needs
� SS7 network services for mobile applications
� MAP / ANSI.41 support
� Subscriber DB sharing with other mobile operators
� Under the roaming agreement
Operation Plan� Acquire spectrum usage permission
� Establish roaming agreement with mobile operators
� Build up test network
� Build up customer base
� Starting with enterprise customer, provide mobile service offload
� Gradually establish handin – handout support
� Expand to residential coverage
� Operate and run the business