Public 10 years of IPX - community.sapmobileservices.com · 10 years of IPX Success or Failure ?...

10 years of IPX

Success or Failure ?Michael VAN VEEN, SAP

September 22, 2016

Public

Introducing SAP Digital Interconnect

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SAP Digital Interconnect – Creating a Better-connected World

IPX:

What has been achieved so far ?


10 year anniversary

“This white paper sets out

the agreed position of GSMA

operators, describing the

commercial and technical

principles of a network

which delivers IP

Interconnect requirements.”


IPX highlights

Technical

A single connectivity model for all interconnect

and roaming services

Three connectivity models

1. Bilateral transport

2. Service aware transport

3. Service

Secure, private, …

Classes of Service, end-to-end KPIs, …

Etc.…

Commercial

Transparency of costs

Break-down: transit plus termination

Cascaded of payments:

SP-A → IPXP → (IPXP →) SP-B

IPX Provider cascade termination charge (and split

transit rate)

Service Provider B keeps termination charge

End-to-end SLAs

Etc.…

In essence: a generalization / upgrade of the GSMA requirements for GRX and MMS hubbing


GRX providers quickly became IPX providers

By simply mapping their data roaming services onto the IPX model …

… and in some cases, by adding voice switching capabilities to their product bag

… as well as QoS for home network routed VoLTE roaming traffic (S8HR)

GRX

MAP signalling connectivityIPX Transport

Diameter signalling routing IPX Hubbing


International Voice carriers followed suit

IP interconnects for international Voice traffic have been common for quite some time

The mobile industry was late in adapting this technology

International Voice carriers made their technology available to mobile service providers using

dedicated IP links

Simply branding this type of interconnect “IPX” made these carriers IPX providers

Adding GRX / MAP signalling connectivity and Diameter signalling hubbing to complete the

product bag


IPX landscape after 10 years

More than 20 IPX Providers

Some independent parties, many group carriers

A crowded market – creating challenges for IPX Providers as well as their customers


Challenge: global reach

No IPX Provider connects to each Service Provider in the world

Global reach is only possible through peering

Contrary to the public Internet, transiting is not allowed – GSMA IPX Rule

Cannot have more than two IPX Providers in a chain between to Service Providers

Motivation: end-to-end quality guaranteed by direct customer accountability for each IPX Provider

But not every IPX Provider is willing to peer with each of their competitors

Trying to protect market position in increasingly competitive environment

Effect: Service Providers cannot assume global reach through a single IPX connection

Result: GSMA IPX Rule is broken, IPX transit does happen, end-to-end quality control at risk


Peering trafficnx10 Gbps

IPX margins $$$

Challenge: peering model collapse imminent ?

LTE is a great hit !

But can it collapse under its own success ?

Fierce competition is driving down the IPX margins

Making it very challenging to cover the cost of increasing

peering bandwidth

We need a more cost-efficient way of dealing with peering

traffic

Can this be done without lowering the IPX quality targets ?


Challenge: Voice over IPX is not a game changer

IPX has not brought us better call quality

Quality has been decreasing together with the rates

Long call set-up times, poor audio quality, bad CLI delivery

Meanwhile OTT Voice quality has improved a lot

Honestly: quite often, the quality is better than a that of a regular

mobile voice call !

IPX has not brought Service Providers cost transparency

Only very few IPX Providers offer separate charging of transit

rates and termination rates

To name a few…

Skype

Google Voice

Viber

Talktone

Whatsapp

So, has IPX failed ?


Too early to tell…

1. Single connectivity model for all roaming / interconnect services delivered

2. The peering model needs to be repaired

3. No value created for Voice

BUT: the real test is yet to come: VoLTE

AND: IPX is an excellent Operator Cloud

An opportunity for unanticipated value propositions


Plenty of reasons to launch VoLTE

Spectrum efficiency, technical efficiency, add-on

features (RCS)

But the first thing that users will notice is

improved call quality

After national VoLTE launches come the

VoLTE interconnects

IMS NNIs

Comes with many specific challenges – best

handled by IPX Providers


IPX – Essential functions for VoLTE interconnects

Managed end-to-endQoS• Guarantee the best possible call quality

Hubbing functionMediation• Correct / normalize differences in protocol implementation – RTP, SIP

Find the best route to the B-endRouting• Find the gateway associated with the B-end number: MNP and ENUM

• Chose the best route – in terms of cost and quality


IPX: Mobile Service Provider Cloud

IPX manages user traffic and protocol traffic

We see it hosting a number of platforms and services

Changing your business from investment based to services based

Reducing costs and other headaches

Some examples

MAP-Diameter interworking – to enable LTE roaming on the back of 3G roaming agreements

Steering of roaming – integrating 2G/3G and LTE steering, managing CSFB scenarios

SMS firewall – identify / monetize inbound A2P SMS traffic

GRX break-out to Internet for selected types of user traffic

And IPX will have a role to play in IoT !

10 years IPX

The best is yet to come !

Thank youContact information:

Michael VAN VEEN

Global Sales Director IPX

e: [email protected]

m: +393 484 090 668

mailto:[email protected]

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