Welcome

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Next Generation
Mobile Operators
Himawan Nugroho
Founder and CEO
Feb 2015

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Introduction
MNO Challenges & Opportunities
How to Monetize
Next Generation Mobile Network
What We Can Do Today
Closure

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Cisco Systems, Singapore, 2006 – 2008
Cisco Systems, Dubai, 2008 – present

Cisco Live Speakers, 2011 – present

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 SME for Mobility and LTE
SME for Cloud and DC Virtualization
SME for Routing & Switching

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 World Has Finally Gone Mobile
By 2017, there will be
By 2017, mobile data
traffic per month will reach 10.3
more than
11.2 EBs billion total
13-fold growth mobile-ready devices

There will be By 2017, two-

more than1.7 thirds of the
world’s mobile
billion data traffic will
machine-to-
machine
be video

Source: Cisco Visual Networking Index 2012

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 IP 4G Mobile
Cloud Video M2M
Traffic Adoption
Global IP traffic Global cloud By 2017, the 4G will account Trillions of new
will grow 3X to traffic will grow world will reach for 45% of “connected
1.4 zettabytes 6X by 2016 3 trillion Internet global mobile events” will
annually by video minutes data traffic occur over IP
2017 per month networks
throughout the
next decade

Network Transformation Driven by IP, Cloud, Video, Mobility and the Internet of Everything

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 Mobile Broadband Projections, 2012-18

Source: Ovum
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 Total Mobile Services Revenue by Monthly ARPU by Region
Region (20012-18) (20012-18)

Source: Ovum Source: Ovum

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Source: Chetan Sharma Consulting

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 Today´s Mobile Internet Requirements
SP Third-Party Multi-Service
Content Content
Video, Voice, Internet
B2B2C

National
Data Center/ IP Core National
Data Center/
Multi-Path
Cloud/VHO Cloud/VHO Cell to Cell
Cell to Cloud
Regional Regional
Data EPC/ Data
Edge
Center/
VSO
Center/
VSO Multi-Access
Radio Access
Unified
RAN WiFi Access
Ethernet Access

Business Home
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 LTE Network Components & Interfaces
S1-u Base Station to SAE GW S1-c Base Station to MME interface
GTP-u base micro mobility Multi-homed to multiple MME pools SCTP/IP based
MME GW
Any-to-Any communication
S11 MME to SAE GW
requirements
GTP-c Version 2

Different traffic types with different transport

requirements
SGW
SGW
PDN GW

“X2” interface introduces direct communication

between eNodeBs
SAE GW to PDN GW
X2 inter Base Station interface GTP or PMIP based macro mobility
SCTP/IP Signalling MME GW
GTP tunnelling followingNetwork
handoverintelligence for advanced services and
traffic manipulation
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Mobile Backhaul Challenges

Traffic Growth Convergence

Operational Simplicity
High Scale, and Capacity Elastic
for Any Access Carrier Grade Simplify Management &
(Macro, Small Cell Transport Architecture Lower TCO
Wifi) for any Access

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 Next Generation Mobile
Monetization

After Chetan Sharma Consulting

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 Software as a Service
Applications, Collaboration, etc.
WebEx, Salesforce.com, OnDemand

Platform as a Service
Middleware, Directories, etc.
Traffic Traffic and
Revenue Google Apps, WebEx Connect
Voice Era Divergence
Infrastructure as a Service
Compute, Storage, Networking
Revenues Amazon EC2, Savvis, Terremark
Data Era
Data Centre as a Service
Time Data centre facilities, power, cooling

Profitability of Connectivity Services Cloud Services Creation

Forecast of Gross margin Per GB for Network Operators

Strategy Analytics 2012

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 Growth and Market Size by 2017

M-Commerce Cloud Services

55% >>> $180B 27% >> $55 B

Mobile Internet Location

20% >> $280B 24% >> $14B

Internet of Everything Mobile Ads

35% >> Incremental $200B 55% >> $30 B

Sources: ABI, IDC, In-Stat, Insight, Ovum, Parks, Screen Digest, Strategy Analytics

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•  Virtualized Production Architectures
• SDN – decrease costs and improve flexibility
• Consolidation and virtualization – data centers, IT platforms, applications
•  Next-Generation Mobile Access
• Cost effective substitutes - Cloud Ran, Wi-Fi, small cell
• Network consolidation and HetNet architecture
• SON and Integrated Wi-Fi-Small Cell devices
•  Improved Business Agility
• Agile Business Architecture (ABA) – Operational modularity in processes &
governance
• Consolidation of legacy OSS and BSS systems
•  New Business and Operating Models
• Outsourcing, Build Operate Transfer Jawdat 2012 23
 Today’s Status:
•  Voice under pressure: better, free OTT solutions
OTTs •  Messaging at end of life cycle
•  Data under pressure through “free” WiFi

3. Value-
Based
2a. Flat Rate All- 2b. Usage-
You-Can-Eat Based Post broadband:
1. Metered pricing designed
Broadband arrives: Broadband to capture value
Before pricing designed mainstream: of services
broadband: old for maximum pricing designed to enabled by
days of metered service usage differentiate users broadband
Internet dial-up

1990s–early 2000s 2000s–early 2010s Future

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§  Quality of Service (QoS)
•  Better quality of experience – e.g., faster download speeds, SLAs tied to specific
applications, power boosters
§  Policy
•  Mobile users – e.g., user self-care features, loss prevention
•  Third parties – e.g., campaign tools, authentication, subscriber data management
§  APIs
•  Enhance third party applications and experiences – e.g., messaging,
authentication, payments, presence, location
§  Data and Analytics
•  Improve operations or enhance user experience
•  Third parties – use for advertising, planning, new services, etc.
•  Data examples: device type, location, presence, usage behavior
§  Security
•  Security for differentiation and premium service with security guarantees Jawdat 2012 25
•  Mobile Cloud
• Traditional cloud services – e.g., storage, email, applications
• New unique services – e.g., real-time translation, augmented reality, dual personas)
•  IoE and M2M

• Connectivity and beyond

• Unique industry-focused solutions – e.g., health, smart cities, connected home
•  Connected Vehicles
•  Connectivity and platform to deliver entertainment, applications and car safety, operations
and maintenance information
•  Enterprise and SMB Solutions
• Enterprise Mobility 2.0 – beyond email and web sites – e.g., virtual desktop integration, dual
personas, integrated Wi-Fi-cellular voice, enterprise cloud
•  OTT Collaboration
•  Collaboration to create new collective value – e.g., sales and marketing, preloading and
integrating apps, mobile API platform
•  Location and Data Analytic Solutions
•  Data collection, analysis, reporting as a alue-added managed service Jawdat 2012 26
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ISO/IEC 42010:2007, Systems and
Software Engineering

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 SEF
ACS AAA, DHCP, DNS, EMS NMS Service Management Performance Management

2G/3G RBS
Access Carrier Ethernet Aggregation IP Edge Multiservice Core
MPLS/IP/Ethernet
Cell Site Gateway BSC/RNC
Aggregation
Node Content Network
Residential
Ethernet Node
Pre-Agg /AggNode TV SIP
HSI
MPLS/IP Transport Distribution Service Edge Node
STB
Node Core Node
Transport Deployment:
VPWS, VPLS
Business Ethernet Node
Service Aware Deployment:
Corporate
VPWS, VPLS, MPLS VPN/IP
Core Network
IP / MPLS
Residential
Optional Video
Service Edge Node
Aggregation Node
STB
DSL Node Distribution
Node Core Node
Content Network
Business

Corporate
Aggregation TV SIP
Node
Optional Business
Residential PON Node BSC/RNC Service Edge Node

STB
MPLS/IPoDWDM Optical Network

Business

Corporate

OAM Subsystem

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Evolved Programmable Network

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 BUSINESS SDN – Open and Programmable at all Layers
AGILITY Simplify / Reduce Complexity
Service
Orchestration

Service Orchestration – Customized Delivery

OPERATIONAL Automation / Accelerate Time to Revenue
SIMPLICITY SDN
NFV

NFV – Elastic Resource Capacity

Reduce Total Costs Across all Services
¥$£€ MONETIZATION

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 Service
Orchestration

§  SDN – Software Defined Network SDN NFV

Separation of control /data plane

Network Controllers + APIs + Distributed Agents

§  NFV – Network Function Virtualization

VNF, Virtual Network Function Orchestration

NFVMO Management and Orchestration

Other Entities - See ETSI
A lot more than Virtualization with Automation
(Elasticity, HA, Integration of legacy, Management)
Host & Network
Overlays

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 ISDN
Frame QAM
IP Core APPLICATIONS
Relay

DS0, DS1, ATM

DS3 Muxs SMDS
Edge

PSTN X.25 EVOLVED SERVICES PLATFORM

Acces
s/ Agg

IPv6

EVOLVED PROGRAMMABLE NETWORK

TDM Era IP NGN Era

§  TDM rigidity limits new
Managed
Managed
§  Commoditization of IP § 
Autonomic,
Move with Control
into an applications & Visibility
centric service environment
services, forces architectural services plus high traffic
§  Take advantage of the shift from static connectivity to virtualized
shift Configurable
Configurable
growth limits profitability Orchestrated with Self-service
service creation
§  Voice Centric §  Network migration to multi-
Apps
Apps Independent
Independent of
of Network
Network
service transport & a single §  EPN becomes
App &the flexible network
Network fabric linking data centers with
Interaction
§  Defined by reliability protocol SP networks
Command
Command Line
§  Interface
Line Interface
Data Centric §  Well-known
Application Programmatic
centric Interfaces
§  Defined by convergence and §  Defined as programmatic and dynamic
Proprietary
Proprietary
scale Open & Pluggable

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 Cisco EPN
System
Cisco’s Open Network Environment Architecture

vGiLAN vFirewall vDPI vNAT vBNG vDDoS vSLB

Network Function Virtualization
Part of ESP and EPN (Network, Storage, Compute)
VM VM VM VM VM VM VM

Network APIs (REST) and Services Catalog

Orchestration
ESP Cloud Orchestration WAE Multi-Layer Control, Service Chaining and Policy Enforcement
Orchestration Quantum PS

Controllers, Collectors

Virtualized Infrastructure
nLight Virtualized
Virtual PE Programming and Managing of Virtual Resources
Cisco nV IP+Optical IOS-XR
VM

onePK, OpenFlow, PCEP, Netconf/YANG, BGP-LS, GMPLS

ME Series
Physical Infrastructure
Programming and Managing of Physical Resources
UCS
ASR 9XX
NCS2000 NCS4000 ASR 9000 CRS NCS6000 Nexus

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 Programmable and
Network as the Fabric IoE Secure and Resilient Virtualizable

•  Converged •  IPv6 •  nLight protection and •  Open APIs

•  Physical and Virtual •  Solution scale with restoration •  VNFs
multi-chassis and •  Encrypted Transport
nPower •  IPSec
CDN

Applications

Open
VM
APIs
Service Service Catalog VM / Storage
Orchestration Apps Control
CORE
Evolved Services
NCS NCSPlatform EDGE

IPv6 Open Access

APIs

Evolved Programmable Network

EVOLVED PROGRAMMABLE NETWORK

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 Always On Demand
“On” Services Anywhere
Seamless Application
Experience Interaction

IPv6

Networks Networks
Networks

Accelerate New Services Business

Simplify
•  Convergence / Consolidation
•  Network Function Virtualization
•  Service Chaining
•  Service Orchestration
Applications Integration
•  Bandwidth on Demand The network proactively adjusts to the
•  Virtual Managed Services application needs in real time
•  Security Services
•  Premium Mobile Broadband
•  Cloud DVR

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Start with Convergence

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•  Converged Access for wire-line and wireless, improved scale and ZTD NID
•  Better Backhaul Reliability for Microwave
•  Secure Zero Touch Infrastructure
•  Cost Optimized Unified MPLS Transport

nV nV
MPLS Unified MPLS Transport MPLS
Ethernet Ethernet

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Autonomic Networking
TFTP hosting uMPLS
Configurations

configuration
TFTP the AN Node AN Connected NMS
LAN

Unified MPLS Transport Syslog

Auto-IP AAA
AN Virtual Out of Band AN extended over IPv6 GRE
Communication Channel tunnel

•  Plug in unconfigured devices anywhere in the network

•  Only your devices can connect
•  Have remote access to the unconfigured device
•  Automatically configure device
•  All without disruption to existing service

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‟ Unified MPLS…classical MPLS with a few
additions”
Classical
MPLS

IGP/LDP
Domain RFC BGP Flex LFA BGP E2E
isolation 3107 filtering Access R-LFA PIC OAM
L2/IGP/BGP/MPLS-
TP/LDP DoD

Unified
MPLS
Architecture

Scalability Security Simplification Multi-Service

 U-MPLS MPLS

Unified MPLS Architecture IGP/LDP Label

BGP3107 Label
Service Label

iBGP/eBGP EPC Gateway

Access Node Pre-Aggregation
Node
Access Aggregation Network Core Network
Network
Access Node Core ABR
IGP/LDP Aggregation Node Centralised RR

L2 IGP/LDP IGP/LDP

Massive Flexibility Simplicity

Scale
Any Media Convergence
100,000+ Any Access Prime
Nodes! Any Service nV
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•  Better Reliability for Access Models
•  Cost effective migration of Services to Cloud
•  Highly flexible and optimal Access for nV
•  Rapid deployment and OPEX savings for MEF Services with ZTD NID
•  Cost effective Network Optimization with Capacity Planning
•  Network Planning simplification across Transport and Radio

FMC PCRF
Virtualized PGW
Virtualized Network Services

Integrated BNG, WAG, Sec GW

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Consumer Legacy Cloud Offload
Legacy PPPoE
DSL Homes

Virtual
IP Residenti
al
IP
Gateway

Data Center
IP Unified MPLS Transport
IP Infrastructure

IP
IP

•  Facilitates cost effective migration of legacy subscribers to the next generation services in
Cloud

•  Achieves Significant Opex and Capex Savings : Simpler device at home, simpler network
design

•  Accelerates TTM by introducing new services directly into the network

•  Achieves longer replacement cycles for the Home CPE Jawdat 2012 46
 Netflow Exporter

Netflow
Collection and Analysis

SGW

eNodeB S1-U MTG

V4 or v6 MPLS VPN
CSG
MTG
S1-U
SGW

Mobile Access Network Mobile Aggregation Network Mobile Packet Core Network

•  Enables LTE and Legacy Mobile Transport Capacity usage Monitoring per Cell Site
–  Based on Netflow Exporter (MTG) and Netflow Collection in Prime Performance Manager

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Ivan Pepelnjak, Network Architect, ipSpace.net AG

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 Lean Telco
Carrier as a
Service

Self Service
Network

Service
Orchestration

Network
Function
Virtualization

Carrier Grade
Telco
Network
Rapid Innovation

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 MINE (Analytics)
M2M Customer #1 PS-LTE vEPC (PGW/
SGW/MME)
M2M Customer #2

CONSUMER
SERVICES
(Video Opt, Threat ENTERPRISE
Mngt, Parental Control) SERVICES

Network Infrastructure
(Access, Transport, Routing/Switching)

•  Application/Service runs in virtual environment •  Automate new service introduction and

independent of platform (eg, VMs) expand/contract resources on the fly

•  Plug & Play deployment of services •  Distributed architecture makes no assumptions

about scope (free to scale up/down as needed)
•  Subscriber-aware service orchestration to
•  Expose Network APIs to expose the network as
define service paths and dynamic service
a service end-to-end
routing

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•  Hardware specific
•  IP Appliances
•  Proprietary per vendor hardware
•  Carrier Class Applications and Chassis
provide 99.999% reliability
•  Capacity planning per element, with manual
installation of new capacity
•  Relatively static service chain
•  Manual operations – As an example weeks
are required to get an enterprise tunnel
configured
•  Standardized 3GPP interfaces
•  Few customer segments (Consumer,
Commercial, Enterprise)
•  vEPC on virtual machines
•  All applications on generic compute HW
•  Carrier Class Applications and Orchestration
provide 99.999% reliability
•  Capacity planning in aggregate (DC), with
elasticity automatically provides new
capacity
•  Dynamic service chaining (SDN)
•  Automated operations – Significant
fulfillment capabilities simplify management
(“drag and drop”)
•  Standardized 3GPP interfaces
•  Many customer segments (Consumer,
Commercial, Enterprise, Public Safety,
Machine to Machine, etc…)
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 “QvPC-SI” “QvPC-SI” “QvPC-SI” “QvPC-SI”
Cisco QvPC-SI Example
Single Physical Instance Single Single Single
Many Functions Function Function Function

SGW
MME

PGW
MME + SGW + PGW + …

StarOS StarOS StarOS StarOS

Hypervisor/OS Hypervisor/OS
(KVM, VMware, etc.) (KVM, VMware, etc.)

Server #1 Server #2
(CPU, Memory, Storage) (CPU, Memory, Storage)

Networking Networking

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Think about Possibilities

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Premium Mobile Broadband (PMB)
•  A PMB network is a 3G, LTE or Wi-Fi wireless network service a single
enterprise which:
Supplements commercial wireless networks to support critical
communications
Enables enterprises to address complex business needs with application such
as location-based services, mission-critical voice, video communications,
broadband data, etc…

Public Energy Minerals Oil & Gas Transport Military

Safety Utilities Mining
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Dedicated Mobile Access and Applications for Industry Segments

Public Land Mobile

3G / LTE / Wi-Fi Radio Access Network Network (PLMN)

SP Critical Voice
(e.g. PTT) Evolved Packet Core (EPC) role:
Macro (or Enterprise) - Mobility of users & devices across RAN

Mobile Datacenter Ent App

(e.g. Collaboration)
- Routing of users to public internet
- Authentication and security
Devices Backhaul - Transport & ensure QoS across network
(satellite, wireless)
Small Cells Vertical App - Consists of Mobility Network Functions
(e.g. PSS, Transport)
(i.e., MME, S-GW, P-GW)

Cisco QvPC
(Evolved Packet Core)

Mobile Router Wi-Fi Macro Prepackaged virtualized

(standalone/ Policy and User
SW functions on DB
embedded) Cisco UCS datacenter
platforms NMS
OSS

Central site
MVNO

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Fleet Management
M2M Application
QvPC Enabler (Partner)
End Customer
Elastic
M2M Device Manager Web Portal
QvPC (Partner) Services
Controller

M2M Application Network Abstraction Trucking Company web portal

Enabler Layer / API GW (MINE)
Prime
M2M Device Fulfillment
Management XMPP

R Device Location information & QoS

N from Mobile Packet Core to App Enabler / Device Manager
Policy (PCRF) C

Mobile Packet Core

OpenStack
VMWare
QvPC

M2M Device
(connectivity)
Servers

Over the Top M2M service cannot deliver

same type of service (lack of information) Remote Asset

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 § Imperative to understand where to
IPv6

focus immediate attention for business

benefit to you and your customers
§ Jawdat can uniquely help you in your
journey to overcome business
challenges and seize new opportunities
§ The time to act is now but choose your
path thoughtfully

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•  Opening – Next Generation Mobile
Challenges, Opportunities, Monetization, Architecture and Transition Options

•  Software Defined Network

•  OpenStack: Cloud Operating Systems

•  Evolved Packet Core (EPC)

•  LTE Network Design

•  IP/MPLS for Mobile Operator

•  Closing – Skill Development for Next Generation Mobile Operator

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Questions? Jawdat 2012 64
Thank you.