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Wireless Technologi es and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

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Page 1: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Wireless Technologies and Mobile IP

0936_03F8_c2NW98_US_113

Packet DataServices

Page 2: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Digital PCS Wireless Data

• GPRS = General Packet Radio Service the GSM packet data standard –Provides access to Internet via TCP/IP–Carrier owned fixed IP addressing–Example: Alcatel

• Mobile IP = CDG proposed CDMA packet data standard –Provides access to Internet and Intranet–Carrier-based and destination-based addressing–Example: Qualcomm

Page 3: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

InternetDial

Hotel

HomeConferences

Meeting Rooms

ISP Accessthrough the

Internet

Cellular or Mobile

Commuting

Mobile IP Enables Seamless Connectivity to and from the Home

Network

LANs andVLANs

Page 4: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

PSTN

Internet

Mobility Solutions that need to be Bigger than an Enterprise…

• Dial-in solutions help where there are phone lines• Wireless technologies can be used where there are no wires

Page 5: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Old Circuit Switched Model

Disadvantages:Circuit Based, No Mobility, Charging Based on Connected Time, Not Data Exchanged for Wireless

Service Service ProviderProvider

Great as a Static Connectivity Solution, PPP Allows Address Assignment, Authentication, Bandwidth Negotiation/Aggregation (V.110 For GSM)

Internet

Page 6: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Evolution of Data Services

Mobile IPMobile IP

GSMGSM GPRSGPRS

CDMACDMA

Other CellularOther Cellular

Some Effort to Do CircuitSwitched Data Today

The Packet Switching DataComponent of GSM

Packet Switching For Data Built-in

Some AMPS and Non-AMPS Cellular Systems Have Packet Ability Today

Cellular Systems Are Moving Toward Support for Packet Data. This Is the Foundation for Mobile IP

Page 7: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Packet-Based Data Allows

• True Mobility—Not tied to a circuit• Always on and always connected

–Without continuous airtime charges–Billing based on packets sent, reflecting real resources used

• With Mobile IP:With Mobile IP:–The ability to tie into the home network The ability to tie into the home network and the Internetand the Internet–Roaming while retaining connectivity and identityRoaming while retaining connectivity and identity

Page 8: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile IP is the Solution for Wireless Connectivity

• Transparent interoperability with all other hosts

• Mobile always reachable at the same IP address

• Only the Home Agent needs to know the mobile’s location

• All other routers do normal forwarding

Page 9: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile IP• The IETF proposed standard solution

for mobility at layer 3

• RFCs 2002–2006 define the functionality

• Protocol works over any intermediate media

• Movement is transparent to hosts who communicate with the mobile user

• No IP address changes are needed to allow mobility

Page 10: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Overview: Mobile IP Functionality

Mobile IP forms a Layer 3 Tunnel from a Home Agent (HA) to the Mobile Node (MN),

which can continue to use its Home Address to receive IP Datagrams

InternetISPISP

MN

HA

Page 11: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

MN

MN

MN

FA

IDRP: Agent Advertisement: Lifetime, Type, Services

IDRP: Agent Solicitation: Lifetime, Services

Registration

Mobile IP: Registration

• Care-of or co-located addresses

• Agree on services

• Register with the home agent

HA

Page 12: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile IP: Packet Forwarding

MobileNode

HomeAgent

ForeignAgent

Traffic is sent as usual to the Home Subnet. The Home Agent intercepts the traffic while the Mobile Node is registered as away. Traffic is Tunneled to its current

location. Traffic from the Mobile Node can go directly to the Correspondent Host

Correspondent Host

Page 13: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile IP: True Mobility, Transparent Roaming

FA

FAFA MN

MN 10.31.1.1

10.31.2.1

FA/MN Register with the HA

MN HA

Mobility Binding Table:Mobility Binding Table:MNMN CoACoA1.1.1.31.1.1.3 10.31.1.110.31.1.1

1.1.1.81.1.1.8 10.31.2.110.31.2.11.1.1.51.1.1.5 10.31.3.110.31.3.1

10.31.3.1

1.1.1.7 10.31.1.11.1.1.7 10.31.1.1

Page 14: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile IP: True Mobility, Transparent Roaming

FA

FAFA MN

MN 10.31.1.1

10.31.3.110.31.2.1 HAMN

MN

MN realizes it has moved to a network with a New FA

MN Registers withthis New FA

When the MN Moves it Re-Registers via its New FA

Mobility Binding Table:Mobility Binding Table:MNMN CoACoA1.1.1.31.1.1.3 10.31.1.110.31.1.11.1.1.71.1.1.7 10.31.1.1 10.31.1.1 1.1.1.81.1.1.8 10.31.2.110.31.2.11.1.1.51.1.1.5 10.31.3.110.31.3.1

Page 15: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile IP: True Mobility, Re Registration

FA

FA

MN 10.31.1.1

10.31.2.1 HA

MN

Mobility Binding Table:Mobility Binding Table:MNMN CoACoA1.1.1.31.1.1.3 10.31.1.110.31.1.11.1.1.71.1.1.7 10.31.1.1 10.31.1.1 1.1.1.81.1.1.8 10.31.2.110.31.2.11.1.1.51.1.1.5 10.31.3.110.31.3.1

10.31.2.110.31.2.1

The Movement Is Transparent to all Other Devices

Old Data Path

New Data Path

When the new Registrationis received, a new COAis installed in the HA

No Change IsPropagated toCorrespondents

FA MN

10.31.3.1

Page 16: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Registration Options

• GRE and IPinIP tunneling• Care-of and co-located address• Registration lifetime• Reverse tunneling• Authentication• Tunneling of broadcast packets

Page 17: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

The Challenges of Mobility

• How do you access your home network?

• What happens when you move?

• Can push data reach you?

Stock QuotesStock Quotes

Urgent Email

Urgent Email

Direction UpdatesDirection Updates

Sales Quotes

Sales Quotes

Security!

Connectivity!

• Can you ensure user identity?

• Can you get though your firewall?

Scalability!

Page 18: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Scalability for Mobile IP

• Single tunnel between HA’s and FA’s used for all MN traffic

• Off-loading of the keys to a AAA server

• Reverse tunneling to traverse firewalls to enter the home network

Page 19: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Authentication in Mobile IP

Mobile Node to Home AgentForeign Agent to Home Agent*Foreign Agent to Mobile Node*

(* Optional)

FA

HA

MN

IP IP HeaderHeader

UDP UDP HeaderHeader

MobileIP MobileIP RegistrationRegistration

MH Auth MH Auth ExtensionExtension

FH Auth FH Auth ExtensionExtension

IP IP HeaderHeader

UDP UDP HeaderHeader

MobileIP MobileIP RegistrationRegistration

MHO Auto MHO Auto ExtensionExtension

FH Auth FH Auth ExtensionExtension

Page 20: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Other Security in Mobile IP• Registration filters:Registration filters:

– Filters on the Foreign Agent

– Limit the MN’s allowed to register

– Limit the HA’s it can register with

– Filters on the Home Agent

– Limit the MN’s allowed to register

– Limit the FA’s allowed to register

• Reverse tunnels:Reverse tunnels:

– Enable firewall traversal for ingress filters

– Allow for bi-directional routing

• Encryption:Encryption:

– Cisco’s network layer encryption

Page 21: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Home Agent Redundancy

Mobility Binding Table:Mobility Binding Table:MNMN CoACoA1.1.1.31.1.1.3 10.31.1.110.31.1.11.1.1.71.1.1.7 10.31.1.1 10.31.1.1 1.1.1.81.1.1.8 10.31.2.110.31.2.11.1.1.51.1.1.5 10.31.3.110.31.3.1

FAHA

HA

• Based on HSRP• Enables back-up in the case of a failure• Ensures mobility bindings stay in sync

Page 22: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Providing Connectivity in a Wireless Network

HA

HA

FAFA

FA

FA

Service Providers Offering Mobility to Users within the Wireless Network

Page 23: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Service Service ProviderProvider

Wireless Internet Architecture

Fully Digital/Packet Switch

CorporateInternet

Internet

MSCMSC

GWGW

BSCBSC

EIREIRAUCAUCHLRHLRVLRVLR

GWGW

Page 24: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Internet

Internet

Service Service ProviderProvider

Proxy/Cache Servers

CorporateInternet

Digital Link Layer EIREIR

AUCAUCHLRHLRVLRVLR

MSCMSCBSCBSC

Page 25: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Intranet Architecture

Internet

Service Service ProviderProvider

BSCBSC MSCMSC

Proxy/Cache Servers

CorporateInternet

Digital Link Layer

Cisco IOSTM Data Mobility Solution with MobileIP Home

Agent (HA) and Foreign Agent (HA) Support

Secured Access for Mobility Extended

Corporate Intranets

FA

HA

EIREIRAUCAUCHLRHLRVLRVLR

Page 26: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Intranet Architecture

Internet

Proxy/Cache Servers

CorporateInternet

HA

FA FA

FA

Cisco IOS Mobility Architecture Is Applicable to Various Wireless and Non-

Wireless Technologies

Page 27: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Business Applications

• Wireless LAN• Fixed LAN

InternetCorporate

Internet

HAFABSBS

Page 28: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Application and Network Roles

• Flexible choice of connectivity solution based on services and cost

• Cisco IOSTM software with Mobile IP provides network services layer to application

• Applications can be made network aware to best utilize network services

GS

MG

SM

CD

MA

CD

MA

W-C

DM

AW

-CD

MA

GP

RS

GP

RS

WL

LW

LL

W L

AN

W L

AN

xDS

LxD

SL

LA

NL

AN

Sat

ellit

eS

atel

liteMobile IPMobile IP

Network ServicesNetwork Services

Network AwareNetwork AwareApplicationsApplications

Page 29: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

710936_03F8_c2NW98_US_113

Page 30: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Glenn SelboStrategic MarketingDr. Payam Dr. Payam

TaagholTaagholAdvanced Advanced

Technology, EMEATechnology, EMEA

Dr. Payam Dr. Payam TaagholTaaghol

Advanced Advanced Technology, EMEATechnology, EMEA

GPRS GPRS ConferenceConferenceGSM GSM AssociationAssociation

GPRS GPRS ConferenceConferenceGSM GSM AssociationAssociation

Business Planning & Network Evolution Impact for GPRS

Business Planning & Network Evolution Impact for GPRS

LondonLondon22 August 200022 August 2000

LondonLondon22 August 200022 August 2000

Page 31: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Data Penetration

• Mobile data has yet to deliver on hype– Making WAP service easier to access won’t make services better– Users reacting to over-hyped wireless web claims – Packet networks imply major changes to billing support systems,

tariffs, and support structureCarrier Market Data Subs % of Base

Germany 175K 1.3%

UK 200K 2.4%

China 200K 2%

US 280-420k 4-6%

Source: Herschel Shosteck June 2000

Page 32: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Lessons from NTT DoCoMo

• Packet-based - always on, always connected• Subscription, volume and transaction-based pricing• Content driving subscriber growth

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

AugFeb

99

Mar

99

Apr

99

May

99

Jun

99

Jul

99

Aug

99

Sep

99

Oct

99

Nov

99

Dec

99

Jan

00

Feb

00

Mar

00

Apr

00

May

00

Jun

00

Jul

00 00

i-mode subscribers Content Providers

10,314(as of 13 Aug)

13,441(as of May 00)

Source: NTT

Page 33: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Projected GPRS Evolution

• Significant growth opportunity through 2003• Growth to be driven by availability of applications• Stepping stone to 3G network servicesWestern Europe Mobile Subscribers

0

50

100

150

200

250

300

350

400

1997 1998 1999 2000 2001 2002 2003 2004 2005

GSM 3G2+

Page 34: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Source: INRA-Telcobus, ISM-Survey, ICN MCM 12 Analysis

E-mail, Fax,V-mail 30%

Online Banking15%

Location Services15%

Internet Access13%

Information Services10%

Mobile Office7%

Telematics 1%Telemetry 5%

Payments 1%Games 3%

Applications Drive Opportunity

• Global GSM Mobile Data service revenues are projected to approach $6.5 billion by 2002

Page 35: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

• Additional bandwidth, infrastructure and improvements in QoS guarantees will be required to support new services

Web Queries Simple Email Instant MessagingSMS

Web Queries Simple Email Instant MessagingSMS

Data Broadcasting1 Way Paging Data Broadcasting1 Way Paging

Web Browsing File Transfers Email w/Attach.M-Commerce

Web Browsing File Transfers Email w/Attach.M-Commerce

Full Motion Video Video Conferencing Image and Graphics

Full Motion Video Video Conferencing Image and Graphics

Data Rate

Fun

ctio

nalit

y

1,0001,000100 k100 k10 k10 k1 k1 k 10,00010,000

Alert

Interactive

PortableComputing

Multi-Media

Service Impact on Capacity Planning

Page 36: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

The Case for GPRS/3G

• As a result of varying market characteristics, the case for moving to 2.5 and 3G varies on a carrier-by-carrier basis– How much investment is already in the ground

– How much spectrum is available

– What is the composition of the carriers subscriber base

– Operators need for differentiation

• An integrated approach will yield the highest-value results

Market characteristics

Demographics

Topography and

clutterSpectrum depth

Target markets

Opportunity Index

GIS input

Technology Selection

Prioritization

Market characteristics

Demographics

Target markets

Spectrum depth

Prioritization

Opportunity Index

GIS input

MARKET PLANMARKET PLAN

Real estate issues

LOS considerations

Long haul transport

Interconnection

Technology selection

Deployment timetable

Service schedule

Real estate issues

Long haul transport

Interconnection

Technology selection

Deployment timetable

Service schedule

DEPLOYMENT PLANDEPLOYMENT PLAN

Services proposal

Addressable market

Available spectrum

Competition

Critical success

factorsTechnology Selection

Pricing/Economics

Services proposal

Addressable market

Available spectrum

Competition

Critical successfactors

Technology Selection

Pricing/Economics

BUSINESS PLANBUSINESS PLAN

Vendor Selection

Page 37: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Network Impact of GPRS

Page 38: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

GPRS: A Packet Data Overlay for GSM

BSS Base Station System

GSN GPRS Support Node

HLR Home Location Register

VLR Visitor Location Register

PCU Packet Control Unit

Gateway MSC

Visited MSC/VLR

Gateway GSN

Mobile DTE

BSS

PCU

circuit switched

packet switched: GPRS

HLR

Serving GSN

ISDN

PSPDN

Intranet

Internet

PSTN

Page 39: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Internet Awareness; End-to-end IP delivery

High Data rates of 28-115 kbps

Multimedia Applications

Spectral Efficiency

Quality of Service

GPRS – Great Expectations

Page 40: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

GPRS Performance

• GSM and GPRS share the same radio resources

• In congested cells with a high number of GSM voice users the TRUE GPRS throughput or data rate may be significantly less than that of the predicted

• GPRS on the other hand can deliver the SMS traffic more efficiently thereby taking the load off GSM network

• The true performance would vary from country to country and from network to network

Page 41: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Terminated GPRS Calls

• It is very likely that the first generation GPRS will not support Mobile Terminated GPRS

• GPRS would have to provide IP delivery as internet services would probably be the main services used over GPRS

• In this case a service provider would not be able to charge for content delivery

• If they do so, the user might have to pay for delivery of unauthorised content such as advertisement or Junk email

Page 42: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

GPRS Improvements

ISDN

Mobile DTE

HIGHER USER RATESvia Air-IF using

TRAFFIC CHANNELCOMBINING and

NEW CODING SCHEMES

IMPROVED SPECTRUM EFFICIENCY

bymultiplexing onto

the same Resources

PACKET SWITCHEDBACKBONE NETWORK

DIRECT ACCESSTO

INTERNET /PACKET DATA

NETWORK

HIGHER USER RATES

to Data networks

PSPDN

Gateway MSC

Visited MSC/VLR

Gateway GSN

Serving GSN

BSS

PCU

HLR / GR

Intranet

Internet

PSTN

Page 43: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

The Evolutionary Path

GSMData

HSCSD

GPRS

EDGEEGPRS

WCDMA

1998 1999 2001

WCDMAPhase I

Time

Evolution

9.6 kbps

9.6 - 28.8 kbps

9 ~ 60 kbps

384 kbps

144 - 384 kbps

384 - 2048 kbps

2000 2002 2003

Page 44: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

August 22, 2000

Michael D. SmithMobile Internet Applications

Nokia Networks

Migrating Internet Services to Wireless

Page 45: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

The Market is Changing

Sources : Nokia, ITU, Dataquest, EMC, Global Mobile

2500

2000

1500

1000

500

0

1985 1988 1991 1994 1997 2000 2003 2006

Mobile vs. Fixed Subscribers Mobile vs. Fixed Subscribers (worldwide(worldwide)

FixedMobile

Data vs. Voice TrafficData vs. Voice Traffic (worldwide)

Bi ts

in th

e op

erat

or n

etw

orks

1985 1988 1991 1994 1997 2000 2003 2006

VoiceData

“There will be more Mobile Terminals on the Internet than PCs, by 2003”19

30

1920

1940

1950

1970

1980

1990

1925

1935

1945

1955

1960

1965

1975

1985

1995

120

100

80

60

40

20

0

Milli

ons

of U

sers

InternetTV

CableRadio

Telephone19

98

Page 46: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Portals drive the information access...

Portals drive the information access...

Page 47: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Europe is leading the way….Europe is leading the way….

Forrester Predicts That One in ThreeEuropeans Will Access the Net ViaMobile Phone by 2004

AMSTERDAM, Netherlands--(BUSINESS WIRE) via NewsEdge Corporation --Europe stands on the brink of a revolution in Internet access. By 2004, one-third of all Europeans -- more than 219 million consumers -- will regularly use their mobile phones to access Internet services according to a new Report from Forrester Research B.V. (Nasdaq:FORR). Although the sites that will host these services are already being built, it remains unclear whether mobile operators will provide free and open access to these sites. Europeans lead the world in mobile phone use, with more than 117 million people in the EU carrying mobile phones. Many of these phones are already being used for data -- Europeans pass more than 2 billion short message service (SMS) messages a month to chat and read sports scores. These two factors, plus the introduction of wireless application protocol (WAP) phones, will vault Europe into the lead for mobile Internet access. (continues….) dated: 1999-12-16

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

'000

Population

Mobilesubscribers

Net-enabledmobile phoneowners

Regular mobileInternet users*

Source: Forrester Research, Inc., 1999

Page 48: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Millions

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

1,400

1,200

1,000

800

600

400

200

0

Mobile Internet Outlook

More handsets than PCs connected to the Internet by

the end of 2003 !

More handsets than PCs connected to the Internet by

the end of 2003 !

Projectedcellularsubscribers(Nokia 1999)

Projected PCsconnected tothe Internet(Dataquest 10/98)

Projected Webhandsets(Nokia 1999)

Page 49: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Standards: Mobile Network Evolution -

GSM example

2000 2001 2002 2003Year:

GSM

HSCSD

GPRS

EDGE

UMTS(3G)

Page 50: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Battle for the position in value chain

PRE-PACKAGEDCONTENT

PRE-PACKAGEDCONTENT

ACCESS NETWORK

MOBILE TERMINALS

WIRELESS PORTAL

service control is

created here

Page 51: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Service Provider's assets in value chain battle

Assets of the service provider Identity management

anonymity Billing

pre-paid, printing Small payments Location information Customer ownership Subscriber profiling

Location basedLocation based

Service ProfilingService Profiling

Billing & identityBilling & identity

mCommercemCommerce

Page 52: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile operators need to decide how to position

themselves in the marketValue-added Service Provider Bitpipe for Branded Content

or Internet

Network ANetwork A

User Applications

Customer Data Base

Network BNetwork B

User

Network XNetwork X

User Applications

Customer Data Base

Network XNetwork X

User Applications

Customer Data Base

Services retailer

OR

• Operator acts as transparent “bit-pipe”

• Weak differentiation possibilities

• content providers control the customers

• Small risks for the operator: low cost, small revenue opportunity

• Operator adds value by new services

• Opportunity to differentiate:

- customer loyalty

- new customers and revenue streams

- brand

• Higher risk, new competencies required

Page 53: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Internet

Intranet

Horisontal consumer svcs

Media broadcast

NVOD

Advertising

Push

e-Commerce

Introduction of GPRS and mobile access to internet

restructures the mobile market

Consumer

Business

Consumer

Business

From:

To:

Connectivity and Messaging

Voice

SMS

Connectivity and Messaging

Voice/Video

Imaging

SMS / e-mail / fax

Communityware

Corporate access

Voice/Video

Conferencing

e-mail/imaging

Workflow

Data coll/distr

Consumer

Business

Consumer Business

From:

To:

Providing connections and servicesProviding connections

Connectivity and Messaging

Voice

SMS

Data

Business-to-consumer is a whole new market

Page 54: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Many new roles for the Network Provider

Telephony

NetworkProvider

PortalManaged Gateway to the Internet offering

advertising and content revenue

Infomediary

NetworkProvider

Collect, package and resell information together from 3rd

parties

ContentProvider

Provides raw information or

servicesProvides applications such as email, WWW

hosting, banking

ApplicationProvider

Page 55: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Phone Is In The High-value Position

Lookers Awareness Consideration Preference Purchase Loyalty Buyers

x 25X 250X 4,000X

2 cents perimpression

50 cents perclickthrough

$5 per lead

$80 per customer

Source: Forrester Research

Page 56: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Mobile Internet Applications

Page 57: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

More than delivering this…..

There must be value add

Page 58: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

Messaging in mobile internet

High"souvenir"

Instancy need

Message

Notice

Belonging

Storage need

Highreal time

Lowdelay

LowdisposableMMS

SMS

Email

Service

End user application

Greetings

IM

Chat

Call

Expansion

WAP "SMS"MMS

Instant call

MM chat

Page 59: Wireless Technologies and Mobile IP 0936_03F8_c2 NW98_US_113 Packet Data Services

The Latest Exchange Rates at Your Fingertips!