8/8/2019 nsnreport

1/58

8/8/2019 nsnreport

2/58

2

12.2 Signaling and Data Confidentiality:12.3 Subscriber Identity Confidentiality

CH 13 - VALUE ADDED SERVICES

13.1. Definition: (As Per TRAI)13.2. Different VAS Categories13.3. VAS Ecosystem13.4. VAS Access Modes

8/8/2019 nsnreport

3/58

3

LIST OF ABBREVIATIONS

SS -- Switching System

BSS -- Base Station System NMC -- Network Monitoring Centers

MS -- Mobile Station

MSC -- Mobile services Switching Center

VLR -- Visitor Location Register

GMSC -- Gateway MSC

HLR -- Home Location Register

ILR -- Interworking Location Register

AUC -- Authentication Center

EIR -- Equipment Identity Register

DTI -- Data Transmission Interface

MC -- Message Center

SSP -- Service Switching Point

SCP -- Service Control Point

SDP -- Service Data Point

PLMN -- Public Land Mobile Network

BSC -- Base Station Controller

TRC -- Transcoder Controller

RBS -- Radio Base Station

SUBSCRIBER IDENTITY MODULE

IMSI -- International Mobile Subscriber Identity

IMEI -- International Mobile Station Equipment Identity

8/8/2019 nsnreport

4/58

4

MSISDN -- Mobile Subscriber Isdn Number

MSRN -- Mobile Station Roaming Number

LAI -- Location Area IdentityMCC -- Mobile Country Code

MNC -- Mobile Network Code

TMSI -- Temporary Mobile Subscriber Identity

LMSI -- Local Mobile Subscriber Identity

CI -- Cell Identifier

VAS -- Value Added ServicePAT -- Profit After Tax

8/8/2019 nsnreport

5/58

5

ABOUT THE COMPANY:

Pre-telecommunications era

The predecessors of the modern Nokia were the Nokia Company (Nokia Aktiebolag),Finnish Rubber Works Ltd (Suomen Gummitehdas Oy) and Finnish Cable Works Ltd(Suomen Kaapelitehdas Oy).

Nokia's history starts in 1865 when mining engineer Fredrik Idestam established agroundwood pulp mill on the banks of the Tammerkoski rapids in the town of Tampere,in southwestern Finland, and started manufacturing paper. In 1868, Idestam built asecond mill near the town of Nokia, fifteen kilometres (nine miles) west of Tampere bythe Nokianvirta river, which had better resources for hydropower production. In 1871,Idestam, with the help of his close friend statesman Leo Mechelin, renamed andtransformed his firm into a share company, thereby founding the Nokia Company, the

name it is still known by today.

The name of the town, Nokia, originated from the river which flowed through the town.The river itself, Nokianvirta, was named after the archaic Finnish word originallymeaning a small, dark-furred animal that lived on the banks of the Nokianvirta river. Inmodern Finnish, noki means soot and nokia is its inflected plural, although this form of the word is rarely if ever used. The old word, nois (pl. nokia) or nokint ("sootmarten"), meant sable. After sable was hunted to extinction in Finland, the word wasapplied to any dark-furred animal of the genus Martes, such as the pine marten, which arefound in the area to this day.

Toward the end of the 19th century, Mechelin's wishes to expand into the electricity business were at first thwarted by Idestam's opposition. However, Idestam's retirementfrom the management of the company in 1896 allowed Mechelin to become thecompany's chairman (from 1898 until 1914) and sell most shareholders on his plans, thusrealizing his vision. In 1902, Nokia added electricity generation to its business activities.

Industrial conglomerate

In 1898, Eduard Poln founded Finnish Rubber Works, manufacturer of galoshes andother rubber products, which later became Nokia's rubber business. At the beginning of the 20th century, Finnish Rubber Works established its factories near the town of Nokia

and began using Nokia as its product brand. In 1912, Arvid Wickstrm founded FinnishCable Works, producer of telephone, telegraph and electrical cables and the foundation of Nokia's cable and electronics businesses. At the end of the 1910s, shortly after WorldWar I, the Nokia Company was nearing bankruptcy. To ensure the continuation of electricity supply from Nokia's generators, Finnish Rubber Works acquired the businessof the insolvent company. In 1922, Finnish Rubber Works acquired Finnish CableWorks. In 1937, Verner Weckman, a sport wrestler and Finland's first Olympic Goldmedalist, became President of Finnish Cable Works, after 16 years as its Technical

8/8/2019 nsnreport

6/58

6

Director. After World War II, Finnish Cable Works supplied cables to the Soviet Unionas part of Finland's war reparations. This gave the company a good foothold for later trade.

The three companies, which had been jointly owned since 1922, were merged to form anew industrial conglomerate, Nokia Corporation in 1967 and paved the way for Nokia'sfuture as a global corporation. The new company was involved in many industries, producing at one time or another paper products, car and bicycle tires, footwear (including rubber boots), communications cables, televisions and other consumer electronics, personal computers, electricity generation machinery, robotics, capacitors,military communications and equipment (such as the SANLA M/90 device and the M61gas mask for the Finnish Army), plastics, aluminium and chemicals. Each business unithad its own director who reported to the first Nokia Corporation President, BjrnWesterlund. As the president of the Finnish Cable Works, he had been responsible for setting up the companys first electronics department in 1960, sowing the seeds of

Nokias future in telecommunications.Eventually, the company decided to leave consumer electronics behind in the 1990s andfocused solely on the fastest growing segments in telecommunications.Nokian Tyres,manufacturer of tyres split from Nokia Corporation to form its own company in 1988 andtwo years later Nokian Footwear, manufacturer of rubber boots, was founded. During therest of the 1990s, Nokia divested itself of all of its non-telecommunications businesses.

Telecommunications era

The seeds of the current incarnation of Nokia were planted with the founding of the

electronics section of the cable division in 1960 and the production of its first electronicdevice in 1962: a pulse analyzer designed for use in nuclear power plants. In the 1967fusion, that section was separated into its own division, and began manufacturingtelecommunications equipment. A key CEO and subsequent Chairman of the Board wasvuorineuvos Bjrn "Nalle" Westerlund (19122009), who founded the electronicsdepartment and let it run a loss for 15 years.

Networking equipment

In the 1970s, Nokia became more involved in the telecommunications industry bydeveloping the Nokia DX 200, a digital switch for telephone exchanges. The DX 200

became the workhorse of the network equipment division. Its modular and flexiblearchitecture enabled it to be developed into various switching products. In 1984,development of a version of the exchange for the Nordic Mobile Telephony network wasstarted.

For a while in the 1970s, Nokia's network equipment production was separated intoTelefenno, a company jointly owned by the parent corporation and by a company owned

8/8/2019 nsnreport

7/58

7

by the Finnish state. In 1987, the state sold its shares to Nokia and in 1992 the name waschanged to Nokia Telecommunications.

In the 1970s and 1980s, Nokia developed the Sanomalaitejrjestelm ("Message device

system"), a digital, portable and encrypted text-based communications device for theFinnish Defence Forces. The current main unit used by the Defence Forces is theSanomalaite M/90 (SANLA M/90)

first mobile phones

The Mobira Cityman 150, Nokia's NMT-900 mobile phone from 1989 (left), compared tothe Nokia 1100 from 2003.The Mobira Cityman line was launched in 1987.

The technologies that preceded modern cellular mobile telephony systems were thevarious "0G" pre-cellular mobile radio telephony standards. Nokia had been producingcommercial and some military mobile radio communications technology since the 1960s,although this part of the company was sold some time before the later companyrationalization. Since 1964, Nokia had developed VHF radio simultaneously with SaloraOy. In 1966, Nokia and Salora started developing the ARP standard (which stands for Autoradiopuhelin, or car radio phone in English), a car-based mobile radio telephonysystem and the first commercially operated public mobile phone network in Finland. Itwent online in 1971 and offered 100% coverage in 1978.

In 1979, the merger of Nokia and Salora resulted in the establishment of Mobira Oy.

Mobira began developing mobile phones for the NMT (Nordic Mobile Telephony)network standard, the first-generation, first fully-automatic cellular phone system thatwent online in 1981. In 1982, Mobira introduced its first car phone, the Mobira Senator for NMT-450 networks.

Nokia bought Salora Oy in 1984 and now owning 100% of the company, changed thecompany's telecommunications branch name to Nokia-Mobira Oy. The Mobira Talkman,launched in 1984, was one of the world's first transportable phones. In 1987, Nokiaintroduced one of the world's first handheld phones, the Mobira Cityman 900 for NMT-900 networks (which, compared to NMT-450, offered a better signal, yet a shorter roam).While the Mobira Senator of 1982 had weighed 9.8 kg (22 lb) and the Talkman just under

5 kg (11 lb), the Mobira Cityman weighed only 800 g (28 oz) with the battery and had a price tag of 24,000 Finnish marks (approximately 4,560).[45] Despite the high price, thefirst phones were almost snatched from the sales assistants hands. Initially, the mobile phone was a "yuppie" product and a status symbol.

Nokia's mobile phones got a big publicity boost in 1987, when Soviet leader MikhailGorbachev was pictured using a Mobira Cityman to make a call from Helsinki to hiscommunications minister in Moscow. This led to the phone's nickname of the "Gorba".

8/8/2019 nsnreport

8/58

8

In 1988, Jorma Nieminen, resigning from the post of CEO of the mobile phone unit,along with two other employees from the unit, started a notable mobile phone companyof their own, Benefon Oy (since renamed to GeoSentric). One year later, Nokia-MobiraOy became Nokia Mobile Phones.

Involvement in GSM

Nokia was one of the key developers of GSM (Global System for MobileCommunications), the second-generation mobile technology which could carry data aswell as voice traffic. NMT (Nordic Mobile Telephony), the world's first mobile telephonystandard that enabled international roaming, provided valuable experience for Nokia for its close participation in developing GSM, which was adopted in 1987 as the newEuropean standard for digital mobile technology.

Nokia delivered its first GSM network to the Finnish operator Radiolinja in 1989. Theworld's first commercial GSM call was made on July 1, 1991 in Helsinki, Finland over a Nokia-supplied network, by then Prime Minister of Finland Harri Holkeri, using a prototype Nokia GSM phone. In 1992, the first GSM phone, the Nokia 1011, waslaunched. The model number refers to its launch date, 10 November. The Nokia 1011 didnot yet employ Nokia's characteristic ringtone, the Nokia tune. It was introduced as aringtone in 1994 with the Nokia 2100 series.

GSM's high-quality voice calls, easy international roaming and support for new serviceslike text messaging (SMS) laid the foundations for a worldwide boom in mobile phone

use. GSM came to dominate the world of mobile telephony in the 1990s, in mid-2008accounting for about three billion mobile telephone subscribers in the world, with morethan 700 mobile operators across 218 countries and territories. New connections areadded at the rate of 15 per second, or 1.3 million per day.

Personal computers and IT equipment

In the 1980s, Nokia's computer division Nokia Data produced a series of personalcomputers called MikroMikko.MikroMikko was Nokia Data's attempt to enter the

business computer market. The first model in the line, MikroMikko 1, was released onSeptember 29, 1981, around the same time as the first IBM PC. However, the personalcomputer division was sold to the British ICL (International Computers Limited) in 1991,which later became part of Fujitsu. MikroMikko remained a trademark of ICL and later Fujitsu. Internationally the MikroMikko line was marketed by Fujitsu as the ErgoPro.

Fujitsu later transferred its personal computer operations to Fujitsu Siemens Computers,which shut down its only factory in Espoo, Finland (in the Kilo district, where computers

8/8/2019 nsnreport

9/58

9

had been produced since the 1960s) at the end of March 2000, thus ending large-scale PCmanufacturing in the country. Nokia was also known for producing very high qualityCRT and early TFT LCD displays for PC and larger systems application. The NokiaDisplay Products' branded business was sold to ViewSonic in 2000. In addition to

personal computers and displays, Nokia used to manufacture DSL modems and digitalset-top boxes.

Nokia re-entered the PC market in August 2009 with the introduction of the NokiaBooklet 3G mini laptop.

Challenges of growth

In the 1980s, during the era of its CEO Kari Kairamo, Nokia expanded into new fields,

mostly by acquisitions. In the late 1980s and early 1990s, the corporation ran into seriousfinancial problems, a major reason being its heavy losses by the television manufacturingdivision and businesses that were just too diverse. These problems, and a suspected total burnout, probably contributed to Kairamo taking his own life in 1988. After Kairamo'sdeath, Simo Vuorilehto became Nokia's Chairman and CEO. In 19901993, Finlandunderwent severe economic depression, which also struck Nokia. Under Vuorilehto'smanagement, Nokia was severely overhauled. The company responded by streamliningits telecommunications divisions, and by divesting itself of the television and PCdivisions.

Probably the most important strategic change in Nokia's history was made in 1992,

however, when the new CEO Jorma Ollila made a crucial strategic decision toconcentrate solely on telecommunications. Thus, during the rest of the 1990s, the rubber,cable and consumer electronics divisions were gradually sold as Nokia continued todivest itself of all of its non-telecommunications businesses.

As late as 1991, more than a quarter of Nokia's turnover still came from sales in Finland.However, after the strategic change of 1992, Nokia saw a huge increase in sales to NorthAmerica, South America and Asia. The exploding worldwide popularity of mobiletelephones, beyond even Nokia's most optimistic predictions, caused a logistics crisis inthe mid-1990s. This prompted Nokia to overhaul its entire logistics operation. By 1998, Nokias focus on telecommunications and its early investment in GSM technologies had

made the company the world's largest mobile phone manufacturer. Between 1996 and2001, Nokias turnover increased almost fivefold from 6.5 billion euros to 31 billioneuros. Logistics continues to be one of Nokia's major advantages over its rivals, alongwith greater economies of scale.

8/8/2019 nsnreport

10/58

10

Recent history

Product releases

In May 2007, Nokia announced that its Nokia 1100 handset, launched in 2003, with over 200 million units shipped, was the best-selling mobile phone of all time and the world'stop-selling consumer electronics product.

In November 2007, Nokia announced and released the Nokia N82, its first Nseries phonewith Xenon flash.

At the Nokia World conference in December 2007, Nokia announced their "Comes WithMusic" program: Nokia device buyers are to receive a year of complimentary access tomusic downloads. The service became commercially available in the second half of 2008.

Nokia Productions was the first ever mobile filmmaking project directed by Spike Lee.Work began in April 2008, and the film premiered in October 2008.

In 2008, Nokia released the Nokia E71 which was marketed to directly compete with theother BlackBerry devices offering a full keyboard and cheaper prices.

Nokia announced in August 2009 that they will be selling a high-end Windows-basedmini laptop called the Nokia Booklet 3G.

On September 2, 2009, Nokia launched two new music and social networking phones, theX6 and X3. The Nokia X6 features 32GB of on-board memory with a 3.2" finger touch

interface and comes with a music playback time of 35 hours. The Nokia X3 is a firstseries 40 Ovi Store-enabled device. The X3 is a music device that comes with stereospeakers, built-in FM radio, and a 3.2 megapixel camera.

On September 10, 2009, Nokia unveiled a new handset 7705 Twist, a phone with a sportssquare shape that swivels open to reveal a full QWERTY keypad. The new mobile, whichwill be available exclusively through Verizon Wireless, features a 3 megapixel camera,web browsing, voice commands and weighs around 3.44 ounces.

Plant movements

Nokia opened its Komrom, Hungary mobile phone factory on May 5, 2000.In March 2007, Nokia signed a memorandum with Cluj County Council, Romania toopen a new plant near the city in Jucu commune. Moving the production from theBochum, Germany factory to a low wage country created an uproar in Germany.

8/8/2019 nsnreport

11/58

11

Reorganizations

In April 2003, the troubles of the networks equipment division caused the corporation toresort to similar streamlining practices on that side, including layoffs and organizational

restructuring. This diminished Nokia's public image in Finland, and produced a number of court cases and an episode of a documentary television show critical of Nokia.

On February 2006, Nokia and Sanyo announced a memorandum of understanding tocreate a joint venture addressing the CDMA handset business. But in June, theyannounced ending negotiations without agreement. Nokia also stated its decision to pullout of CDMA research and development, to continue CDMA business in selectedmarkets.

In June 2006, Jorma Ollila left his position as CEO to become the chairman of RoyalDutch Shell and to give way for Olli-Pekka Kallasvuo.

In May 2008, Nokia announced on their annual stockholder meeting that they want toshift to the Internet business as a whole. Nokia no longer wants to be seen as thetelephone company. Google, Apple and Microsoft are not seen as natural competition for their new image but they are considered as major important players to deal with.

In November 2008, Nokia announced it was ceasing mobile phone distribution in Japan.Following early December, distribution of Nokia E71 is cancelled, both from NTTdocomo and SoftBank Mobile. Nokia Japan retains global research & development programs, sourcing business, and an MVNO venture of Vertu luxury phones, usingdocomo's telecommunications network.

Acquisitions

The Nokia E55, a mobile phone in the business segment and part of the Nokia Eseriesrange.

On September 22, 2003, Nokia acquired Sega.com, a branch of Sega which became themajor basis to develop the Nokia N-Gage device.

On November 16, 2005, Nokia and Intellisync Corporation, a provider of data and PIMsynchronization software, signed a definitive agreement for Nokia to acquire Intellisync. Nokia completed the acquisition on February 10, 2006.

On June 19, 2006, Nokia and Siemens AG announced the companies would merge their mobile and fixed-line phone network equipment businesses to create one of the world'slargest network firms, Nokia Siemens Networks. Each company has a 50% stake in theinfrastructure company, and it is headquartered in Espoo, Finland. The companies

8/8/2019 nsnreport

12/58

1 2

predicted annual sales of 16 bn and cost savings of 1.5 bn a year by 2010. About20,000 Nokia employees were transferred to this new company.

On August 8, 2006, Nokia and Loudeye Corp. announced that they had signed an

agreement for Nokia to acquire online music distributor Loudeye Corporation for approximately US $60 million. The company has been developing this into an onlinemusic service in the hope of using it to generate handset sales. The service, launched onAugust 29, 2007, is aimed to rival iTunes. Nokia completed the acquisition on October 16, 2006.

In July 2007, Nokia acquired all assets of Twango, the comprehensive media sharingsolution for organizing and sharing photos, videos and other personal media.

In September 2007, Nokia announced its intention to acquire Enpocket, a supplier of mobile advertising technology and services.

In October 2007, pending shareholder and regulatory approval, Nokia bought Navteq, aU.S.-based supplier of digital mapping data, for a price of $8.1 billion. Nokia finalizedthe acquisition on July 10, 2008.

In September, 2008, Nokia acquired OZ Communications, a privately held company withapproximately 220 employees headquartered in Montreal, Canada.

On July 24, 2009, Nokia announced that it will acquire certain assets of cellity, a privately owned mobile software company which employs 14 people in Hamburg,Germany. The acquisition of cellity was completed on August 5, 2009.

On September 11, 2009, Nokia announced the acquisition of "certain assets of PlumVentures, Inc, a privately held company which employed approximately 10 people withmain offices in Boston, Massachusetts. Plum will complement Nokias Social Locationservices".

On March 28, 2010, Nokia announced the acquisition of Novarra, the mobile web browser firm from Chicago. Terms of the deal were not disclosed.Novarra is a privately-held company based in Chicago, IL and provider of a mobile browser and service platform and has more than 100 employees.

On April 10, 2010, Nokia announced its acquisition of MetaCarta, whose technology was planned to be used in the area of local search, particularly involving location and other services. Financial details of acquisition were not disclosed.

8/8/2019 nsnreport

13/58

1 3

GENERAL OVERVIEW OF THE COMPANY AND ITS SERVICES:

Nokia Siemens Networks is one of the largest telecommunications equipment suppliers inthe world. Nokia Siemens Networks was created as the result of a joint venture between

Siemens's COM division (minus its Enterprise business unit) and Nokia's Network Business Group.

The new company was announced on 19 June 2006. Nokia Siemens Networks wasofficially launched at the 3GSM World Congress in Barcelona in February 2007.NokiaSiemens Networks then began full operations on 1 April 2007 and has its headquarters inEspoo, Greater Helsinki, Finland, while the West-South Europe headquarters and three of its five divisions are based in Munich, Germany. Nokia Siemens Networks has operationsin some 150 countries serving over 600 customers.

On 19th of July 2010, the company acquired the wireless-network equipment division of

Motorola, to be completed by the end of the year.

Nokia Siemens Networks operates in approximately 200 countries worldwide, and hasabout 60,000 employees. Most of those employees work in one of the five central hubsaround the world, including: Espoo and Tampere in Finland, Munich in Germany, Delhiand Bangalore in India, Guangdong in China and Lisbon in Portugal. Its major manufacturing sites are in Chennai in India, China, Espoo in Finland, Germany andPoland. More than 1 billion people are connected through its networks. The customer base of Nokia Siemens Networks includes 1,400 customers in 150 countries (includingmore than 600 operator customers). Combined 2009 revenues exceed 12.5 billion,making the company one of the largest telecommunication equipment makers in the

world.

Rajeev Suri is the current Chief Executive Officer of Nokia Siemens Networks. In this position he succeeds Simon Beresford-Wylie, who stepped down (October 1, 2009) after leading the companys integration.[5] Nokia Siemens Networks' Chief Financial Officer (CFO) is Luca Maestri. The Chairman of the board of directors is Nokia's CEO Olli-Pekka Kallasvuo, vice chairman is Rudi Lamprecht (Executive Advisor to the CEO of Siemens AG).

8/8/2019 nsnreport

14/58

1 4

Communication for Service Providers

y Customer care supporty Device managementy Fixed-mobile convergencey Hostingy Integrated provisioningy Inventory managementy IPTVy Mobile backhauly Mobile TVy Outsourcingy Unified charging and billingy WCDMA frequency refarming solution

Solutions for public and corporatey Air and maritime solutionsy Government solutionsy Railway solutionsy More about public and corporate solutions

Organisation

Business Units

Starting January 1, 2010, Nokia Siemens Networks realigned its Business Units aroundthe three key areas

y Business Solutions (BSO)y Network Systems (NWS)y Global Services (GS)

with three dedicated sales units covering these areas.

The Board of Directors

y Chairman: Olli Pekka Kallasvuoy Vice Chairman: Rudi Lamprechty Juha krsy Joe Kaeser y Siegfried Russwurmy Niklas Savander y Rick Simonson

8/8/2019 nsnreport

15/58

1 5

Executive Board

y Chief Executive Officer: Rajeev Suriy Customer Operations(CO): Bosco Novk y Chief Financial Officer (CFO): Luca Maestriy Head of Network Systems: Marc Rouanney Head of Business Solutions: Jrgen Walter y Head of Marketing and Corporate Affairs: Barry Frenchy Head of Corporate Affairs: Lauri Kivineny General Counsel: Kirsi Komiy Head of Strategy and Business Development: Michael Matthewsy Head of Operations: Herbert Merzy Head of Human Resources: Hans-Jrgen Billy Head of Corporate Development Office: Pekka Soiniy Head of Services: Ashish Chowdhary

Acquisitions

y In January 2008 Nokia Siemens Networks acquired Israeli company Atrica, acompany that builds carrier-class Ethernet transport systems for metro networks.The official release did not disclose terms, however they are thought to be in theregion of $100 million.

y In February 2008 Nokia Siemens Networks acquired Apertio, Bristol UK-based, a

mobile network customer management tools provider for 140 million. With thisacquisition Nokia Siemens Networks gained customers in the subscriber management area including Orange, T-Mobile, O2 and Vodafone.

y Following the outcome of the auction for the CDMA and Long Term Evolution(LTE) assets of Nortel, Nokia Siemens Networks remains focused on maintainingits leadership in the global wireless infrastructure industry and sustaining itsrecent momentum in the North American markets.

y In July 2010, Nokia Siemens Networks voiced its intentions to acquire thewireless-network equipment division of Motorola.

The road ahead

Until now, development in our industry has mainly been a matter of deliveringconnections more, faster, cheaper, and more efficient. This is still important. Theconnectivity explosion continues, and by 2015 we know that 5 billion people and further

8/8/2019 nsnreport

16/58

1 6

billions of devices will be connected. So, we must continue applying our expertise inorder to deliver on the reality of hundred-fold increases in traffic.

Towards an ecosystem of partners

Today, however, we are also focusing like never before on delivering quality qualityexperience. We can see that a more open, collaborative and customer-centric way of working could bring so much more value to billions of individuals, and to millions of businesses. We at Nokia Siemens Networks must drive that change by leaving the closedand proprietary mindset behind, and leading the way in a new spirit of openness andcollaboration.

Our customers challenges

Our customers, Communications Service Providers (CSPs), face challenges on all fronts:the need to increase efficiency keeps pressure on capital and operational costs; thedramatic rise in traffic due to the proliferation of internet applications demands new business models for monetization; and an ever fiercer competitive climate is challengingCSPs to prove they can retain the customers they have and win back any they might havelost. Nokia Siemens Networks will play a vital role in helping CSPs meet thesechallenges. This role is our mission its about building value.

We have built value by addressing efficiency, and we continue to do that. But we also

need to address the customers need for a better experience, because its experience that builds relationships, and relationships that build value.

We believe that CSPs can ultimately enable and deliver a segment of one where theycan define and enhance the service experience for each and every individual. Customerswhose communications experience fits and works for them dont change operators. Andoperators who can devote themselves to enriching the customers experience buildstronger, more lasting and profitable customer relationships.

The individual communications experience is the greatest value a communicationsservice provider can deliver to their customer, and so its the greatest value we cansupport communications service providers in delivering.

The future of service is largely network-based. Internet applications hosted in the cloud(email, social networking sites, corporate service and communication tools, etc.), alreadyaccount for a large proportion of the services people access every day. Every day,therefore, quality of network experience has more and more to do with quality of life.

8/8/2019 nsnreport

17/58

1 7

Ultimately every service is delivered to an individual. And those individuals will benefitfrom the services being delivered in a way that fits their personal needs and desires. Thisexperience cannot be the privilege of the few. It must be as true for customers inemerging countries with just a dollar to spend, as for businesses in developed countries

with greater resources, and for the trillions of devices that make up the Internet of Things.

Our vision acknowledges that communications service providers need to manage thiscomplexity wisely, ensuring the necessary security and authentication for users, whilehaving the ability to profitably deliver a customized experience, based on a personslocations, context, device, usage patterns and preferences.

Our vision guides our mission, and our mission is to build more valuable customer relationships. The individual communications experience builds more valuable customer relationships.

Mode of operation

Starting January 1, 2010, Nokia Siemens Networks has been realigned around the threekey areas of Business Solutions, Network Systems and Global Services. This re-organization has been designed to usher in the next phase of our business growth and willenable us to improve our relationships with customers engage with them better andaddress their existing and emerging needs more effectively.

Today it is imperative for us to extend services and offer comprehensive solutions whichassist our customers transformation and help them realize the opportunities presented bynew business models. It is also the call of the day to empower our customers to provide aunique end-user experience while supporting their drive for efficiency.

Our new organizational structure will help us adapt to this market need and enable us to become truly customer-oriented, faster, simpler and a more responsive solutions partner.We have pushed the conventional boundaries of being organized by product areas and areinstead mirroring our customers set-up.

The three areas around which the companys new structure is now aligned are:Business Solutions: Focused on helping our customers generate new revenue anddifferentiate from competition by providing a faster time-to-market for end-user services;enhance billing and charging capability; automate and simplify processes; address the

8/8/2019 nsnreport

18/58

1 8

challenges of convergence and tap into rich subscriber data to deliver a unique customer experience.

Network Systems: Aimed at addressing needs at the network layer both fixed and

mobile network infrastructure, including our innovative Flexi base stations, packet core products, optical transport systems and broadband access equipment.

Global Services: Focused on helping customers improve operational efficiency throughoutsourcing non-core activities; supporting and managing their networks with robustcustomer care offerings and ensuring fast and cost-effective implementation of newnetworks and network upgrades.

We have established three dedicated sales units covering these areas, with the heads of those units reporting directly to Bosco Novak, our Chief of Customer Operations, inorder to reflect our renewed focus on customer engagement.

We have also established three new Business Units to reflect this customer-focusedstructure: the heads Jrgen Walter (Business Solutions), Marc Rouanne (Network Systems) and Ashish Chowdhary (Global Services) report directly to our CEO, RajeevSuri, and are part of our Global Executive Board.

These changes are all geared to restore our market momentum and add value to customer business. We are steadily working towards achieving this target by ensuring that we work as ONE organization with empowered teams who are customer-driven, takeresponsibility and are accountable for the success of our company.

Q uality at Nokia Siemens Networks

Quality isnt an attribute that falls in your lap and stays with you forever. On the contrary,striving for quality is a continuous journey for each one of us.

So what then is quality for us?

We believe that quality is about meeting and exceeding customer expectations. It is notonly the quality of our environmentally and socially sustainable products, services andsolutions, but also how we deliver them, and our attitude and relationship with our customers. Quality is an integral part of business management and embedded in businessstrategies, daily decisions, actions and our normal way of working and its everyonesresponsibility to deliver that value to our customers to ensure their loyalty.

8/8/2019 nsnreport

19/58

1 9

And what are we aiming at?

To becoming the industrys No.1 in customer loyalty and operational excellence.

Quality at work

At Nokia Siemens Networks, quality is not just a strategy or theory, but is a mindset thatwe put in practice every single day in all our decisions and actions. Quality is part of our company culture and values.

The extent of emphasis laid on ensuring we all live quality is also demonstrated by our annual Nokia Siemens Networks Quality Award, with over two hundred teams or morethan 1,600 people participating in this years competition.

Examples:

y Innovation not just in technology but also in business models in supporting thesetup of a new virtual mobile operator with an advertising revenue model

y Excelling in new product introductions, on time and with virtually zero software bugs at the customer interface

y Creating true customer delight with a solutions approach to Services projectsleading to repeat business

By making quality a personal mission for each one of us, we are able to deliver world-class quality to our customers and set industry benchmarks. It is our source of inspiration,energy and enthusiasm.

8/8/2019 nsnreport

20/58

2 0

CH3 HISTORY OF GSM

3.1 Following is the brief history of GSM in tabular form :

Years Events

1982 CEPT establishes a GSM group in order to develop the standards for a pan-European cellular mobile system.

1985 A list of recommendations to be generated by the group is accepted.

1986Field tests are performed to test the different radio techniques proposed for the air

interface.

1987

Time Division Multiple Access (TDMA) is chosen as the access method (with

Frequency Division Multiple Access [FDMA]). The initial Memorandum of Understanding (MoU) is signed by telecommunication operators representing 12

countries.

1988 GSM system is validated.

8/8/2019 nsnreport

21/58

2 1

1989The responsibility of the GSM specifications is passed to the European

Telecommunications Standards Institute (ETSI).

1990 Phase 1 of the GSM specifications is delivered.

1991Commercial launch of the GSM service occurs. The DCS1800 specifications are

finalized.

1992The addition of the countries that signed the GSM Memorandum of

Understanding takes place. Coverage spreads to larger cities and airports.

1993 Coverage of main roads' GSM services starts outside Europe.

1994 Data transmission capabilities launched. The number of networks rises to 69 in 43countries by the end of 1994.

1995 Phase 2 of the GSM specifications occurs. Coverage is extended to rural areas.

1996 June: 133 network in 81 countries operational.

1997July: 200 network in 109 countries operational, around 44 million subscribers

worldwide.

1999Wireless Application Protocol came into existence and 130 countries operational

with 260 million subscribers

2000 General Packet Radio Service(GPRS) came into existence.

2001As of May 2001, over 550 million people were subscribers to mobile

telecommunications

3.2 GSM PHASES

8/8/2019 nsnreport

22/58

22

CH 4 GSM

4.1 NETWORK COMPONENTS

8/8/2019 nsnreport

23/58

23

a) Switching System (SS)

b) Base Station System (BSS)

c) Network Monitoring Centers

d) Mobile Station (MS)

4.2 GSM GEOGRAPHICAL NETWORK STRUCTURE

CELL

8/8/2019 nsnreport

24/58

24

A cell is the basic unit of a cellular system and is defined as the area of radio coverage

given by one BS antenna system. Each cell is assigned a unique number called Cell

Global Identity (CGI). In a complete network covering an entire country, the number of

cells can be quite high.

LOCATION AREA (LA)

A Location Area (LA) is defined as a group of cells. Within the network, a subscribers

location is known by the LA which they are in. The identity of the LA in which an MS is

currently located is stored in the VLR. When an MS crosses a boundary from a cell

belonging to one LA into a cell belonging to another LA, it must report its new location

to the network1. When an MS crosses a cell boundary within an LA, it does need to

report its new location to the network. When there is call for an MS, a paging message is

broadcast within all cells belonging to an LA.

MSC SERVICE AREA

An MSC service area is made up of a number of LAs and represents the geographical part

of the network controlled by one MSC. In order to be able to route a call to an MS,

8/8/2019 nsnreport

25/58

25

subscribers MSC service area is also recorded and monitored. The subscribers MSC

service area is stored in the HLR.

PLMN SERVICE AREA

A Public Land Mobile Network (PLMN) service area is the entire set of cells served by

one network operator and is defined as the area in which an operator offers radio

coverage and access to its network. In any one country there may be several PLMN

service areas, one for each mobile operators network.

GSM SERVICE AREA

The GSM service area is the entire geographical area in which a subscriber can gainaccess to a GSM network. The GSM service area increases as more operators sign

contracts agreeing to work together. Currently, the GSM service area spans dozens of

countries across the world from Ireland to Australia and South Africa. International

roaming is the term applied when an MS moves from one PLMN to another

CH 5 - SWITCHING SYSTEM

The Switching System in GSM systems contains the following components:

8/8/2019 nsnreport

26/58

26

MSC Mobile services Switching Center

VLR Visitor Location Register

GMSC Gateway MSC

HLR Home Location Register

ILR Interworking Location Register

AUC Authentication Center

EIR Equipment Identity Register

DTI Data Transmission Interface

MC Message Center

SSP Service Switching Point

SCP Service Control Point

SDP Service Data Point

MSC

The MSC performs the telephony switching functions for the mobile network. It controls

calls to and from other telephony and data systems, such as the Public Switched

Telephone Network (PSTN), Integrated Services Digital Network (ISDN), public data

networks, private networks and other mobile networks.FUNCTIONS

Switching and call routing

Charging

Service provisioning

Communication with HLR

Communication with VLR

Communication with other MSCsControl of connected BSCs

Direct access to internet services

ISDN Primary Rate Access (PRA)

8/8/2019 nsnreport

27/58

27

VLR

The VLR database contains information about all the mobile subscribers currently

Located in an MSC service area. Thus, there is one VLR for each MSC in a network. The

VLR temporarily stores subscription information so that the MSC can service all the

subscribers currently visiting that MSC service area. The VLR can be regarded as a

distributed HLR as it holds a copy of the HLR information stored about the subscriber

When a subscriber roams into a new MSC service area, the VLR connected to that MSC

requests information about the subscriber from the subscribers HLR. The HLR sends a

copy of the information to the VLR and updates its own location information. When the

subscriber makes a call, the VLR will already have the information required for call set-

up.

GMSC

Gateway functionality enables an MSC to interrogate a HLR in order to route a mobile

terminating call. It is not used in calls from MSs to any terminal other than another MS.

For example, if a person connected to the PSTN wants to make a call to a GSM mobile

subscriber, then the PSTN exchange will access the GSM network by first connecting the

call to a GMSC. The GMSC requests call routing information from the HLR which

provides information about which MSC/VLR to route the call to. The same is true of a

call from an MS to another MS.

HLR

HLR is a centralized network database that stores and manages all mobile subscriptions

belonging to a specific operator. It acts as a permanent store for a persons subscription

information until that subscription is canceled. The information stored includes:

Subscriber identitySubscriber supplementary services

Subscriber location information

Subscriber authentication informationFUNCTION

8/8/2019 nsnreport

28/58

28

Subscription database management

Communication with MSCs

Communication with GMSCs

Communication with ALUs

Communication with VLR/ILRs

ILR

It offers roaming capabilities between mobile telephony systems complying with

different standards. The ILR is specific to the CMS 40 product portfolio and enables

AMPS network subscribers to roam to a GSM 1900 network. The ILR consists of an

AMPS HLR, a GSM 1900 VLR and interfacing functions. For AMPS subscribers who

wish to avail of this roaming functionality, their AMPS network subscriptions are copiedinto the HLR side of the ILR. When they roam into the GSM 1900 network, the HLR

copies this information into the VLR side of the ILR, as occurs for normal GSM roaming

subscribers. From the subscribers point of view however, there is only one subscription

AUTHENTICATION CENTER (AUC)

The main function of the AUC is to authenticate the subscribers attempting to use a

network. In this way, it is used to protect network operators against fraud. The AUC is a

database connected to the HLR which provides it with the authentication parameters and

ciphering keys used to ensure network security.

E Q UIPMENT IDENTITY REGISTER (EIR)

The EIR is a database containing mobile equipment identity information which helps to

block calls from stolen, unauthorized, or defective MSs. It should be noted that due to

subscriber-equipment separation in GSM, the barring of MS equipment does not result in

automatic barring of a subscriber.DTI

The DTI implements the GSM Inter-Working Function (IWF). It performs data handling

functions such as data rate conversion and provides the functions necessary for data

interworkingbetween GSM networks and other networks, including:

8/8/2019 nsnreport

29/58

29

Data traffic to /from PSTN

Data traffic to /from ISDN

Data traffic to /from PDNs

Data traffic between mobiles

High speed circuit switched data

MC

An MC may be added to a GSM network to provide one or more of the following

messaging services:

Voice mail

Fax mailShort Message Service (SMS) text messages

SMS Cell Broadcast (SMSCB) text messages

These services can generate considerable revenue for a network operator, as they are

becoming increasingly popular.

SSP

An SSP acts as an interface between the call control functions of the mobile network and

the service control functions of a Service Control Point (SCP). Ericsson's SSP is an AXE- based AM (SSFAM) and may be integrated within an MSC/VLR (recommended) or

stand-alone.

SCP

An SCP contains the intelligence of a MIN service or services. This intelligence is

realized in software programs and data. Ericsson's SCP is also an AXE-based AM

(SCFAM) and the recommended configuration is as a stand-alone node, accessible by all

MSC/SSPs.

SDP

An SDP manages the data which is used by an MIN service. Ericssons SDP is a stand-

alone node based on Unix.

8/8/2019 nsnreport

30/58

3 0

CH 6 - BASE STATION SYSTEM

BSS consists of three components:Base Station Controller (BSC)

Transcoder Controller (TRC)

Radio Base Station (RBS)

fig : BSS in GSM system

6.1 BASE STATION CONTROLLER AND TRANSCODER CONTROLLER

Base Station Controller (BSC)

The BSC is the central node within a BSS and co-ordinates the actions of TRCs and

RBSs.

Transcoder Controller (TRC)

The TRC provides the BSS with rate adaptation capabilities.This is necessary because the

rate used over the air interface and that used by MSC/VLRs are different 33.8 kbits/s and

64 kbits/s respectively. A device which performs rate adaptation is called a transcoder.

There two main options available for implementing the TRC and BSC in a BSSBSC/TRC : A combined BSC and TRC on the same AXE. This is suitable for

medium and high capacity applications, e.g. urban and suburban area networks. The node

can handle up to 1,020 transceivers (TRXs). 15 remote BSCs can be supported from one

BSC/TRC

8/8/2019 nsnreport

31/58

3 1

Stand Alone BSC and Stand Alone TRC : the stand-alone BSC (without

transcoders) is optimized for low and medium capacity applications and is a complement

to the BSC/TRC, especially in rural and suburban areas. It caters for up to 300 TRXs.

The stand-alone TRC is located at the MSC/VLR to increase transmission efficiency. A

stand-alone TRC can support 16 remote BSCs.

Fig: TRC utilization and transmission rates in BSS

6.2 TRC FUNCTIONS:

Transcoding: the function of converting from the PCM coder information

(following A/D conversion) to the GSM speech coder information is called transcoding.

This function is present in both the MS and the BSS.

Rate Adaptation : Rate adaptation involves the conversion of information

arriving from the MSC/VLR at a rate of 64 Kbits/s to a rate of 16 Kbits/s for transmission

to a BSC (for a full rate call). This 16 Kbits/s contains 13 Kbits/s of traffic and 3 Kbits/s

of in band signaling information.

8/8/2019 nsnreport

32/58

32

6.3 BSC FUNCTIONS

Radio Network Management

RBS Management

TRC Handling

Transmission Network Management

Internal BSC Operation and Maintenance

Handling of MS connections

Handling of MS connectionsCall Set Up

Call set up involves the following processes:

1. Paging : the BSC sends paging messages to the RBSs defined within the desiredLA. The load situation in the BSC is checked before the paging command is sentto the RBS.

2. S ignal set up : during call set-up, the MS connection is transferred to an SDCCHallocated by the BSC. If the MS initiated the connection, the BSC checks its

processor load before the request is further processed.3. A ssignment of traffic channel : after SDCCH assignment ,the call set-up

procedure continues with the assignment of a TCH by the BSC. As this takes place, the radio channel supervision functions in the BSC are informed that theMS has been ordered to change channels. If all TCHs in the cell are occupied anattempt can be made to utilize a TCH in a neighbouring cell.

During a Call

The main BSC functions during a call are:

1. Dynamic Power Control In M S C and RB S : the BSC calculates adequate MS andBTS output power based on the received measurements of the uplink anddownlink. This is sent to the BTS and the MS every 480 ms to maintain goodconnection quality.

8/8/2019 nsnreport

33/58

33

2. Locating: the locating function continuously evaluates the radio connection to theMS, and, if necessary, suggests a handover to another cell. This suggestionincludes a list of handover candidate cells. The decision is based on measurementresults from the MS and BTS.

3. H andover: if the locating function proposes that a hand overtake place, the BSCthen decides which cell to handover to and begins the handover process. If thecell belongs to another BSC, the MSC/VLR must be involved in the handover.However, in a handover, the MSC/VLR is controlled by the BSC. No decisionmaking is performed in the MSC because it has no real time information about theconnection.

4. F requenc y H opping: two types of hopping are supported by the BSC:- Baseband hopping: this involves hopping between frequencies on different

transceivers in a cell.

-Synthesizer hopping: this involves hopping from frequency to frequency on

the same transceiver in a cell.

6.4 RADIO BASE STATION

an RBS acts as the interface between MSs and the network, by providing radio coverage

functions from their antennae.

RBS FUNCTIONS

RBS functionality can be divided into the following areas:

Radio resources

Signal processing

Signaling link management

Synchronization

Local maintenance handling

Functional supervision and testing

Fig : Radio Base Station

8/8/2019 nsnreport

34/58

34

CH 7 - NETWORK MONITORING CENTERS

OPERATION AND MAINTENANCE CENTER (OMC)

An OMC is a computerized monitoring center which is connected to other network

components such as MSCs and BSCs via X.25 data network links. In the OMC, staffs are

presented with information about the status of the network and can monitor and control a

variety of system parameters. There may be one or several OMCs within a network

depending on the network size.

NETWORK MANAGEMENT CENTER (NMC)

Centralized control of a network is done at a Network Management Center (NMC). Only

one NMC is required for a network and this controls the subordinate OMCs. The

advantage of this hierarchical approach is that staff at the NMC can concentrate on long

term system-wide issues, whereas local personnel at each OMC can concentrate on short

term, regional issues. OMC and NMC functionality can be combined in the same

physical network node or implemented at different locations.

8/8/2019 nsnreport

35/58

35

CH 8 - MOBILE STATIONS

The MS is the equipment used to access the network. The MS

consists of two independent parts:

Subscriber Identity Module (SIM) card

Mobile Equipment (ME)

8.1. TYPES OF MOBILE STATION

VEHICLE-MOUNTED MOBILE STATIONS

Vehicle-mounted MSs are physically mounted to the dashboard of avehicle. The antenna unit is separately mounted on the outside of thevehicle. These MSs are more powerful than handheldor transportable, therefore offering a greater range and signal quality.

TRANSPORTABLE MOBILE STATIONSIn a transportable MS the antenna is not attached to the hand-set. These MSs support all power levels required in the system and can either be vehicle-mounted or hand-carried.They usuallyconsist of a portable plug-in unit and a vehicle-mounted adapter

HAND-HELD MOBILE STATIONSThe hand-held MS is hand-carried, with the antenna attached to the hand-set. Hand-heldMSs are portable and are usually pocket-sized. Hand-held MSs can also be vehicle-mounted by plugging the MS into an interface inside the vehicle. The vehicle provides battery charging facilities and has an externally mounted antenna connection.

8.2. SUBSCRIBER IDENTITY MODULE (SIM)A key feature of the GSM standard is the Subscriber Identity Module (SIM) card. A SIMcard contains information about the subscriber and must be plugged into the ME toenable the subscriber to use the network. With the exception of emergency calls, MSs canonly be operated if a valid SIM is present. The SIM stores three types of subscriber related information:

Fixed data stored before the subscription is sold: e.g. IMSI,authentication key and security algorithms.

8/8/2019 nsnreport

36/58

36

Temporary network data: e.g. the location area of thesubscriber and forbidden PLMNs.

Service data: e.g. language preference, advice of charge.

TYPES OF SIM CARD

ID-1 SIM: The format and layout of the ID-1 SIM comply with ISO standards for Integrated Circuit (IC) cards (i.e. credit card size).

Plug-in SIM: The plug-in SIM is smaller than the ID-1 SIM. It is intended for semi-permanent installation in the ME.

8.3. MOBILE STATION FUNCTIONS

Transmission and Reception

8/8/2019 nsnreport

37/58

37

8.4. MOBILE STATION FEATURES

MANDATORYDisplay of called number

Dual tone multi frequency function (DTMF)Indication of call progress signals

Counter/PLMN indication

Country/PLMN selection

Service indicator

Subscription identity management

International mobile station equipment identity (IMEI)

Support of A5/1 and A5/2

Short message indication and acknowledgement

Short message overflow indication

Emergency call capabilities

OPTIONALOn/off switchKeypadDTE/DCE interface

ISDN S terminal interfaceInternational access function (+ key)Short message service cell broadcastscreening (SMSCB)

ADDITIONAL

Abbreviated dialing

Fixed number dialing

Barring of outgoing calls

DTMF control digits separator

Call charge units meter

Selection of directory number in short messages

Last number dialed

8/8/2019 nsnreport

38/58

38

CH 9 - GSM NETWORK IDENTITIES

GSM distinguishes explicitly between user and equipment and deals with them

separately. Besides phone numbers and subscriber and equipment identifiers, several

other identifiers have been defined; they are needed for the management of subscriber

mobility and for addressing of all the remaining network elements. The most important

addresses and identifiers are presented in the following:

9.1. INTERNATIONAL MOBILE STATION E Q UIPMENT IDENTITY (IMEI ):

The international mobile station equipment identity (IMEI) uniquely identifies a mobile

station internationally. It is a kind of serial number. The IMEI is allocated by theequipment manufacturer and registered by the network operator and registered by the

network operator who stores it in the EIR. By means of IMEI one recognizes obsolete,

stolen or nonfunctional equipment.

There are following parts of an IMEI:

Type Approval Code (TAC): 6 decimal places, centrally assigned.

Final Assembly Code (FAC): 6 decimal places, assigned by the manufacturer.

Serial Number (SNR): 6 decimal places, assigned by the manufacturer.Spare (SP): 1 decimal place.

Thus, IMEI = TAC + FAC + SNR + SP. It uniquely characterizes a mobile station and

gives clues about the manufacturer and the date of manufacturing.

9.2. INTERNATIONAL MOBILE SUBSCRIBER IDENTITY (IMSI):

Each registered user is uniquely identified by its international mobile subscriber identity

(IMSI). It is stored in the subscriber identity module (SIM) A mobile station can only be

operated if a SIM with a valid IMSI is inserted into equipment with a valid IMEI.

There are following parts of an IMSI:

Mobile Country Code (MCC): 3 decimal places, internationally standardized.

Mobile Network Code (MNC): 2 decimal places, for unique identification of

mobile network within the country.

8/8/2019 nsnreport

39/58

39

Mobile Subscriber Identification Number (MSIN): Maximum 10 decimal

places, identification number of the subscriber in the home mobile network.

9.3. MOBILE SUBSCRIBER ISDN NUMBER (MSISDN):

The real telephone number of a mobile station is the mobile subscriber ISDN number

(MSISDN). It is assigned to the subscriber (his or her SIM, respectively), such that a

mobile station set can have several MSISDNs depending on the SIM.

The MSISDN categories follow the international ISDN number plan and therefore have

the following structure.

Country Code (CC) : Up to 3 decimal places.National Destination Code (NDC): Typically 2-3 decimal places.

Subscriber Number (SN): Maximum 10 decimal places.

9.4. MOBILE STATION ROAMING NUMBER (MSRN):

The Mobile Station Roaming Number ( MSRN) is a temporary location dependent ISDN

number. It is assigned by the locally responsible VLR to each mobile station in its area.

Calls are also routed to the MS by using the MSRN.

The MSRN has same structure as the MSISDN.

Country Code (CC) : of the visited network.

National Destination Code (NDC): of the visited network.

Subscriber Number (SN): in the current mobile network.

9.5. LOCATION AREA IDENTITY (LAI):

Each LA of an PLMN has its own identifier. The Location Area Identifier (LAI) is also

structured hierarchically and internationally unique as follows:Country Code (CC) : 3 decimal places.

Mobile Network Code (MNC): 2 decimal places.

Location Area Code (LAC): maximum 5 decimal places or, maximum twice 8

bits coded in hexadecimal (LAC < FFFF).

8/8/2019 nsnreport

40/58

4 0

9.6. TEMPORARY MOBILE SUBSCRIBER IDENTITY (TMSI):

The VLR, which is responsible for the current location of a subscriber, can assign a

temporary mobile subscriber identity (TMSI) which has only local significance in the

area handled by the VLR. It is stored on the network side only in the VLR and is not

passed to the HLR. Together with the current location area, TMSI allows a subscriber to

be identified uniquely and it can consist of up to 4x8 bits.

9.7. LOCAL MOBILE SUBSCRIBER IDENTITY (LMSI ):

The VLR can assign an additional searching key to each mobile station within its area to

accelerate database access. This unique key is called the Local Mobile Subscriber Identity (LMSI). The LMSI is assigned when the mobile station registers with the VLR

and is also sent to the HLR. An LIMSI consists of four octets (4 x 8 bits).

9.8. CELL IDENTIFIER (CI):

Within an LA, the individual cells are uniquely identified with a cell identifier (CI),

maximum 2 x 8 bits. Together with the global cell identity (LAI + CI) calls are thus also

internationally defined in a unique way.

8/8/2019 nsnreport

41/58

4 1

CH 10 - OPERATIONS IN GSM

10.1. CALL FROM AN MS

Fig: Call setup from MS to PSTN

1. The MS uses RACH to ask for a signaling channel.

2. The BSC/TRC allocates a signaling channel, using AGCH.

3. The MS sends a call set-up request via SDCCH to the MSC/VLR. Over SDCCH all

signaling preceding a call takes place. This includes:

Marking the MS as active in the VLR

The authentication procedureStart ciphering equipment identification

Sending the B-subscribers number to the network

Checking if the subscriber has the service Barring of outgoing calls activated

The MSC/VLR instructs the BSC/TRC to allocate an idle TCH.

The RBS and MS are told to tune to the TCH.

5. The MSC/VLR forwards the Bnumber to an exchange in the PSTN, which establishes

a connection to the subscriber.6. If the B-subscriber answers, the connection is established

8/8/2019 nsnreport

42/58

8/8/2019 nsnreport

43/58

43

10.3. HANDOVER

The process of changing cells during a call is called handover in GSM terminology. To

choose the best target cell, measurements are performed by the MS and the RBS. Because

the MS contributes to the handover decision, this type of handover is often called Mobile

Assisted Hand Over (MAHO).

There are several types of handover, including:

Intra-cell handover

Handover between cells controlled by the same BSC

Handover between cells controlled by different BSCs, but the same MSC/VLR

Handover between cells controlled by different MSC/VLRs

INTRA-CELL HANDOVER

A special type of handover is the intra-cell handover. It is performed when the BSC

considers the quality of the connection too low, but receives no indication from the

measurements that another cell would be better. In that case the BSC identifies another

channel in the same cell which may offer a better quality, and the MS is ordered to retune

to it.

8/8/2019 nsnreport

44/58

44

HANDOVER BETWEEN CELLS CONTROLLED BY THE SAME BSC

When performing a handover between two cells controlled by the same BSC, the

MSC/VLR is not involved. However, the MSC/VLR will be informed when a handover

has taken place. If the handover involves different LAs, location updating is performedonce the call is finished.

1. The BSC orders the new RBS to activate a TCH.

2. The BSC sends a message to the MS, via the old RBS, containing information about

the frequency and time slot to change to and also the output power to use. This

information is sent to the MS using FACCH.

3. The MS tunes to the new frequency, and transmits handover access bursts in the

correct time slot. Since the MS has no information yet on TA, the handover bursts arevery short (only 8 bits of information).

4. When the new RBS detects the handover bursts, it sends information about TA. This is

also sent via FACCH.

5. The MS sends a Handover Complete message to the BSC via the new RBS.

6. The BSC tells the old RBS to release the old TCH.

Fig: Handover: Cells controlled by the same BSC

8/8/2019 nsnreport

45/58

45

HANDOVER BETWEEN CELLS CONTROLLED BY DIFFERENT BSCS BUT THE

SAME MSC/VLR

When another BSC is involved in a handover, the MSC/VLR must also be involved to

establish the connection between the two BSCs.1. The serving (old) BSC sends a Handover Required message to the MSC containing the

identity of the target cell.

2. The MSC knows which BSC controls this cell and sends a Handover Request to this

BSC.

3. The new BSC orders the target RBS to activate a TCH.

4. The new BSC sends a message to the MS via the MSC and the old RBS.

5. MS tunes to the new frequency and transmits handover access bursts in the correcttime slot.

6. When the new RBS sends information about TA.

7. MS sends a Handover Complete message to MSC via the new BSC.

8. MSC sends the old BSC an order to release the old TCH.

9. The old BSC tells the old RBS to release the TCH.

Fig: Handover: different BSC but same MSC/VLR

8/8/2019 nsnreport

46/58

46

HANDOVER BETWEEN CELLS CONTROLLED BY DIFFERENT MSC/VLRS

Handover between cells controlled by different MSC/VLRs can only be performed within

one PLMN and not between two PLMNs. Cells controlled by different MSC/VLRs also

means that they are controlled by different BSCs.

1. The serving (old) BSC sends a Handover Required message to the serving MSC

(MSCA), with the identity of the target cell.

2. MSCA identifies that this cell belongs to another MSC, (MSCB), and requests help.

3. MSCB allocates a handover number to reroute the call. A Handover Request is then

sent to the new BSC.

4. The new BSC orders the target RBS to activate a TCH.

5. MSCB receives the information, and passes it on to MSC A together with thehandover number.

6. A link is set up to MSCB, possibly via PSTN.

7. MSCA sends a handover command to the MS, via the old BSC.

8. The MS tunes to the new frequency and transmits handover access bursts in the correct

time slot.

9. When the new RBS detects the handover bursts it sends information about TA.

10. The MS sends Handover Complete message to the old MSC via the new BSC and thenew MSC/VLR.

11. A new path in the group switch in MSCA is established, and the call is switched

through.

12. The old TCH is deactivated by the old BSC .

8/8/2019 nsnreport

47/58

47

Fig: Handover: Cells controlled by different MSCs

8/8/2019 nsnreport

48/58

48

CH 11 - GSM - USER SERVICES

11.1. Basic services

GSM has much more to offer than voice telephony. Additional services allow you greater

flexibility in where and when you use your phone. You should contact your local GSM

network operator for information on the specific services available to you.

But there are three basic types of services offered through GSM which you can ask for:

Telephony (also referred to as teleservices) Services

Data (also referred to as bearer services) Services.

Supplementary Services

Teleservices or Telephony Services:

A Teleservice utilizes the capabilities of a Bearer Service to transport data, defining

which capabilities are required and how they should be set up.

Voice Calls:

The most basic Teleservice supported by GSM is telephony. This includes Full-rate

speech at 13 Kbps and emergency calls, where the nearest emergency service provider isnotified by dialing three digits. A very basic example of emergency service is 911 service

available in USA.

Videotext and Facsimile:

Another group of teleservices includes Videotext access, Teletex transmission, Facsimile

alternate speech and facsimile Group 3, Automatic facsimile Group 3 etc.

Short Text Messages:SMS (Short Messaging Service) service is a text messaging which allow you to send and

receive text messages on your GSM Mobile phone. Services available from many of the

world's GSM networks today - in addition to simple user generated text message services

- include news, sport, financial, language and location based services, as well as many

8/8/2019 nsnreport

49/58

49

early examples of mobile commerce such as stocks and share prices, mobile banking

facilities and leisure booking services.

Bearer Services or Data ServicesUsing your GSM phone to receive and send data is the essential building block leading to

widespread mobile Internet access and mobile data transfer. GSM currently has a data

transfer rate of 9.6k. New developments that will push up data transfer rates for GSM

users are HSCSD (high speed circuit switched data) and GPRS (general packet radio

service) are now available.

11.2. SUPPLEMENTARY SERVICES

Supplementary services are provided on top of teleservices or bearer services, and

include features such as caller identification, call forwarding, call waiting, multiparty

conversations, and barring of outgoing (international) calls, among others. A brief

description of supplementary services is given here:

Multiparty Service or conferencing: The multiparty service allows a mobilesubscriber to establish a multiparty conversation, that is, a simultaneous conversation

between three or more subscribers to setup a conference call. This service is only

applicable to normal telephony.

Call Waiting: This service allows a mobile subscriber to be notified of an

incoming call during a conversation. The subscriber can answer, reject, or ignore the

incoming call. Call waiting is applicable to all GSM telecommunications services using a

circuit-switched connection.

Call Hold: This service allows a subscriber to put an incoming call on hold and

then resume this call. The call hold service is only applicable to normal telephony.

Call Forwarding: The Call Forwarding Supplementary Service is used to divert

calls from the original recipient to another number, and is normally set up by the

subscriber himself. It can be used by the subscriber to divert calls from the Mobile

8/8/2019 nsnreport

50/58

5 0

Station when the subscriber is not available, and so to ensure that calls are not lost. A

typical scenario would be a salesperson turns off his mobile phone during a meeting with

customers, but does not with to lose potential sales leads while he is unavailable.

Call Barring: The concept of barring certain types of calls might seem to be a

supplementary disservice rather than service. However, there are times when the

subscriber is not the actual user of the Mobile Station, and as a consequence may wish to

limit its functionality, so as to limit the charges incurred. Alternatively, if the subscriber

and user are one and the same, the Call Barring may be useful to stop calls being routed

to international destinations when they are routed. The reason for this is because it is

expected that the roaming subscriber will pay the charges incurred for international re-

routing of calls. So, GSM devised some flexible services that enable the subscriber toconditionally bar calls.

Number Identification: There are following supplementary services related to

number identification:o Calling Line Identification Presentation: This service deals with the

presentation of the calling party's telephone number. The concept is for

this number to be presented, at the start of the phone ringing, so that the

called person can determine who is ringing prior to answering. The person

subscribing to the service receives the telephone number of the calling

party.o Calling Line Identification Restriction: A person not wishing their

number to be presented to others subscribes to this service. In the normal

course of event, the restriction service overrides the presentation service.o Connected Line Identification Presentation: This service is provided to

give the calling party the telephone number of the person to whom they

are connected. This may seem strange since the person making the callshould know the number they dialed, but there are situations (such as

forwardings) where the number connected is not the number dialed. The

person subscribing to the service is the calling party.

8/8/2019 nsnreport

51/58

5 1

o Connected Line Identification Restriction: There are times when the

person called does not wish to have their number presented and so they

would subscribe to this person. Normally, this overrides the presentation

service.o Malicious Call Identification: The malicious call identification service

was provided to combat the spread of obscene or annoying calls. The

victim should subscribe to this service, and then they could cause known

malicious calls to be identified in the GSM network, using a simple

command. This identified number could then be passed to the appropriate

authority for action. The definition for this service is not stable.

Advice of Charge (AoC): This service was designed to give thesubscriber an indication of the cost of the services as they are used. Furthermore,

those Service Providers who wish to offer rental services to subscribers without

their own Subscriber Identity Module (SIM) can also utilize this service in a

slightly different form. AoC for data calls is provided on the basis of time

measurements.

Closed User Groups (CUGs): This service is provided on GSM to enable

groups of subscribers to only call each other. These type of services are being

offered with special discount and is limited only to those members who wish to

talk to each other.

Unstructured supplementary services data (USSD): This allows

operator-defined individual services.

8/8/2019 nsnreport

52/58

52

CH 12 - GSM - SECURITY AND ENCRYPTION

The security methods standardized for the GSM System make it the most secure cellular

telecommunications standard currently available. Although the confidentiality of a call

and anonymity of the GSM subscriber is only guaranteed on the radio channel, this is a

major step in achieving end-to- end security.

The subscriber's anonymity is ensured through the use of temporary identification

numbers. The confidentiality of the communication itself on the radio link is performed

by the application of encryption algorithms and frequency hopping which could only be

realized using digital systems and signaling.

This chapter gives an outline of the security measures implemented for GSM subscribers.

12.1. Mobile Station Authentication:

The GSM network authenticates the identity of the subscriber through the use of a

challenge-response mechanism. A 128-bit random number (RAND) is sent to the MS.

The MS computes the 32-bit signed response (SRES) based on the encryption of the

random number (RAND) with the authentication algorithm (A3) using the individual

subscriber authentication key (Ki). Upon receiving the signed response (SRES) from thesubscriber, the GSM network repeats the calculation to verify the identity of the

subscriber.

Note that the individual subscriber authentication key (Ki) is never transmitted over the

radio channel. It is present in the subscriber's SIM, as well as the AUC, HLR, and VLR

databases as previously described. If the received SRES agrees with the calculated value,

the MS has been successfully authenticated and may continue. If the values do not match,

the connection is terminated and an authentication failure indicated to the MS.

The calculation of the signed response is processed within the SIM. This provides

enhanced security, because the confidential subscriber information such as the IMSI or

the individual subscriber authentication key (Ki) is never released from the SIM during

the authentication process.

8/8/2019 nsnreport

53/58

53

12.2 Signaling and Data Confidentiality:

The SIM contains the ciphering key generating algorithm (A8) which is used to produce

the 64-bit ciphering key (Kc). The ciphering key is computed by applying the same

random number (RAND) used in the authentication process to the ciphering key

generating algorithm (A8) with the individual subscriber authentication key (Ki). As will

be shown in later sections, the ciphering key (Kc) is used to encrypt and decrypt the data

between the MS and BS.

An additional level of security is provided by having the means to change the ciphering

key, making the system more resistant to eavesdropping. The ciphering key may be

changed at regular intervals as required by network design and security considerations. In

a manner similar to the authentication process, the computation of the ciphering key (Kc)takes place internally within the SIM. Therefore sensitive information such as the

individual subscriber authentication key (Ki) is never revealed by the SIM.

Encrypted voice and data communications between the MS and the network is

accomplished through use of the ciphering algorithm A5. Encrypted communication is

initiated by a ciphering mode request command from the GSM network. Upon receipt of

this command, the mobile station begins encryption and decryption of data using the

ciphering algorithm (A5) and the ciphering key (Kc).

12.3 Subscriber Identity Confidentiality:

To ensure subscriber identity confidentiality, the Temporary Mobile Subscriber Identity

(TMSI) is used. The TMSI is sent to the mobile station after the authentication and

encryption procedures have taken place. The mobile station responds by confirming

reception of the TMSI. The TMSI is valid in the location area in which it was issued. For

communications outside the location area, the Location Area Identification (LAI) is

necessary in addition to the TMSI.

8/8/2019 nsnreport

54/58

54

CH 13 - VALUE ADDED SERVICES

Value Added Service (VAS) in telecommunication industry refers to non-core services,

the core or basic services being standard voice calls and fax transmission including bearer

services. The value added services are characterized as under:-

Not a form of core or basic service but adds value in total service offering.

Stands alone in terms of profitability and also stimulates incremental demand for

core or basic services

Can sometimes be provided as stand alone.

Do not cannibalize core or basic service.

Can be add-on to core or basic service and as such can be sold at premium price.May provide operational synergy with core or basic services.

A value added service may demonstrate one or more of these characteristics and not

necessarily all of them.

13.1. DEFINITION: (as per TRAI)

Value added services are enhanced services, in the nature of non-core services, which

add value to the basic teleservices and bearer services, the core services being standard

voice calls, voice/non-voice messages, fax transmission and data transmission.

13.2. DIFFERENT VAS CATEGORIES

1) Entertainment VAS - The key differentiating factor of Entertainment VAS is the

mass appeal it generates. These provide entertainment for leisure time usage. These not

only generate heavy volume (owing to its mass appeal) but also heavy usage. An example

of these kinds of services is Jokes, Bollywood Ringtones, CRBT (Caller Ring Back Tone) and games. These services continue to be popular and have been key revenue

generators for the Indian mobile VAS market. Other popular Entertainment VAS driving

the market are dating and chatting services. To sustain the MVAS growth, it is the

8/8/2019 nsnreport

55/58

55

responsibility of the industry to keep discovering/innovating killer applications like

CRBT (Caller Ring Back Tone) at regular intervals.

2) Info VAS - These services are characterized by the usefulinformation it provides to

the end user. The user interest comes in from thepersonal component and relevance of

the content. Apart from mobile, alternate modes are available to access Information VAS

like Newspaper, TV, and Internet. E.g. of Info VAS is information on movie tickets,

news, banking account etc. They also include user request for information on other

product categories like real-estate, education, stock updates, etc

3) mCommerce VAS (Transactional services)- These are the services which involve

some

transaction using the mobile phone. An example of this kind of service is buying movie

tickets using mobile phone or transfer of money from one bank account to the other.

These can broadly be classified into 2 types - Mobile banking and Mobile payments.

13.3. VAS ECOSYSTEM

Content Aggregators/Developers:

The MVAS growth has given birth to a new entity which aggregates content originally

designed for some other media, from different sources. Some of the content aggregators

also develop content especially for mobile phones for e.g. mobile games. On one hand

they coordinate with operators and on the other, with content owners and smaller

aggregators. Another key role played by them is handling of the IPR related issues - thus

reducing the burden of the mobile operators

Content Owners

These are the actual owners of the content who hold the copyright of the same. Though

the content is developed for some other media, the MVAS has started contributing

8/8/2019 nsnreport

56/58

56

significantly to their overall revenue generation. A good example is of CRBT which is

giving good revenue to the music labels. They mostly provide content to Content

Aggregators but also some times interact directly with the operators. In recent cases,

Content owners sell the content directly to handset manufacturers for e.g. Nokia tied up

with O m S hanti O m providing exclusive songs, wallpapers, games, etc.

Traditional Media Companies

Media companies like TV channels and FM channels have also joined the bandwagon.

All the big TV channels have started selling their content through short codes. STAR has

even launched a mobile division named STAR Mobile Entertainment to provide

mobisodes and mobile related content. The key revenue source for the media channels is

Voting in shows like Indian Idol and contest participation in shows like Paanchvi Paas .

Post the success of talent hunt shows and contests like KBC, the TV slots have been

flooded with such shows and other reality shows. Though the initial euphoria has not

sustained, voting and contest participation continue to contribute significantly.

8/8/2019 nsnreport

57/58

8/8/2019 nsnreport

58/58

BIBLOGRAPHY

1. http://en.wikipedia.org/wiki/Nokia Siemens Network 2. http://en.wikipedia.org/wiki/Value-added_service

3. MOBILE VALUE ADDED SERVICES IN INDIA A Report by IAMAI

& eTechnology Group@IMRB

4. Telecom Regulatory Authority of India, Recommendations on Growth of

Value Added Services and Regulatory Issues, 13th February, 20095. GSM System Survey, Ericsson.