Analysis of Effectiveness of Open Service Architecture for Fixed and Mobile Convergence
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1 Analysis of Effectiveness of Open Service Architecture for Fixed and Mobile Convergence Kyung-Hyu Lee* Jeung-Heon Hahn* Electronics and Telecommunications Research Institute* {khyulee, stevehahn Abstract The Fixed and Mobile Convergence (FMC) pushes various 3rd party service providers and operators to collaborate with each other actively to provide new converged applications and consistent open service access. The smooth delivery of open FMC services requires securing flexible and open network architecture, open API. This guarantees the interoperability between open network resources of operators, and applications of service providers. This paper explains the structure, and technical characteristics of open service technology for fixed-line and mobile convergence. We also discuss the market outlook, effectiveness, and challenges of Open APIs. Finally, we suggests the necessity of adopting and standardizing the open FMC service resources and also analyzing the effectiveness of open API service market in South Korea. 1
2 Introduction Broadband convergence Network (BcN) is establishing in Korea Internet protocol-based open-source information communication Combine fixed-line, wireless communications and broadcasting Develop the convergence services Standardization of an open service interfaces Open Application Programmable Interfaces (Open APIs) (2) 1. Introduction In recent years, with the convergence between different network types, such as, fixed and mobile, many subscribers wanted to access versatile information services from any place, at any time. For a faster creation of innovative services, multiple vendors hope to deploy open application technologies to have a single converged infrastructure supporting all their service applications and their network capabilities. In Korea, the telecommunications market has been growing tremendously and rapidly compared to the other countries. In 1999, the number of mobile phone subscribers already exceeded that of fixed-line telephone subscribers. Moreover, Korea has gained an advantage from the active implementation of Time Division Exchanger (TDX), and Wireless Local Area Network (WLAN) service. These circumstances in Korea put vendors to seek the technology enabling the integrated service of fixed and mobile for meeting diverse users demands. Currently, the fixed and mobile, internet, and broadcasting network are existing separately to provide each of their own services to its subscribers. However, in the foreseeable future, the open Application Programmable Interfaces (APIs), an access standard used to link a variety of fixed-line, wireless and broadcasting contents service, will be required. To achieve it successfully, Korea is setting up of Broadband convergence Network (BcN), internet protocol-based open-source information communication infrastructure that combines fixed-line and wireless communications and broadcasting. In BcN, the standardization of an open service interfaces is seen as a prerequisite to develop the convergence services without the detailed knowledge about network functions. Moreover, the API requires developing new business models. The provision of standardized open application servers and gateways will induce the implementation of open service by operators. Various communication service providers and Contents Providers (CP) without specific expertise about networks can participate and lead the rapid development in new innovative contents in the open API service market. And, comparing to the saturated telecom equipments market, the current telecom service market is growing continually more than 6% annually and expected to evolve into the open API service market. 2
3 Open Service Architecture for Fixed and Mobile Convergence (3) 2. Open service architecture for fixed and mobile convergence The FMC pushes various 3rd party service providers and operators to collaborate with each other actively to provide new applications and consistent open service access. The smooth delivery of open FMC services requires the information system for managing the open service resources between network operators and the 3rd party service providers by building the status information registry of individual open service participants. To achieve those technical requirements, the open service resources for FMC provide the total management service which can be deployed on the network service control layer by establishing the uniform mechanism. This allows third party providers and multiple fixed and mobile operators to interchange and manage the open APIs resource information. From a technical view point, thus, the objects of the open service resources are: 1) To construct the corporate data center architecture for sharing the open APIs resources between network operators and service providers. 2) To provide the control of the architecture by using the APIs defined in IDL (Interface Definition Language) CORBA (Common Object Request Broker Architecture) or XML (Extensible Markup Language) Web service. As shown the above figure, the conceptual diagram of open FMC network builds the single point for sharing the open APIs resources between service providers and operators. In the open service control layer of the network, the concept fits in the way that the implementation of open service gateway of FMC networks links the application servers of operators to the application servers of 3rd party service providers over a TCP/IP network. In other words, to provide the open API management service to every participant, the open FMC network links applications with the existing network elements by connecting the network operators service gateways with the 3rd party application servers and by collecting the generated information from the implementation of the open API resources. 3
4 Standardization of Open API for Fixed and Mobile Convergence (4) 3. Standardization of open API for fixed and mobile convergence The open APIs standardization started in Parlay group in late Parlay called open API as OSA which stood for Open Service Architecture, but the original meaning has now been changed to Open Service Access. ETSI (European Telecommunications Standards Institute) and 3GPP (Third Generation Partnership Program) also started the OSA work. 3GPP, 3GPP2 (Third Generation Partnership Program 2), ETSI, and Parlay work on the OSA/Parlay interfaces in collaboration as the Parlay Joint Working Group. In addition, the Parlay Joint Working Group collaborates with PAM (Presence and Availability Management) Forum, PayCirlcle and OMA (Open Mobile Alliance) to prevent overlapping or to duplicate specifications or activities. MSF (Multiservice Switching Forum) actively cooperates with the Parlay group and other API standardization agency for creating and standardizing open application interface based on OSA/Parlay interfaces. The agency of Korea industry standardization, TTA (Telecommunications Technology Association) started the standardization for open application interface and completed it as TTA protocol observing Parlay/OSA API 3.1 specification in Currently, as the above figure illustrates, parlay/osa API is formally defined as CORBA (Common Object Request Broker Architecture) IDL (Interface Definition Language). Presently, Parlay 3.3, Parlay 4.1, Parlay 5.0 specifications have been released. Parlay 5.0 specifications is structured in the following parts: Call Control, User Interaction, Mobility, Terminal Capabilities, Data Session Control, Generic Messaging, Connectivity Manager, Account Management, Charging, Policy Management, Presence, Availability Management, and Multi-Media Messaging. The Unified Modeling Language (UML) is used as the means to specify class and to state transition diagrams in Parlay 5.0 specification. Open application interface technologies can be distinguished into two ways: the Parlay CORBA (Common Object Request Broker Architecture) APIs, and the Parlay Web Services. The European network operators and equipment manufacturers at the forefront of open application interface are transferring the Parlay CORBA APIs into the Parlay Web Services, which facilitate the development, production and acceptance. The provision of new services using computing resources within telecommunication environment is expected to be in sight. 4
5 Web Service Service Oriented Architecture (5) 4. Web Service - Service Oriented Architecture In technical perspective, web service can be defined as software components that are accessible by means of data sent or business function provided using standard web protocols. Web Services architecture allows components provided on the Internet to automatically connect with each other in a standards-based way. Ideally, it is a movement to integrate multiple heterogeneous systems seamlessly as a powerful single system. It is the implementation of Service Oriented Architecture (SOA), which is consisted of service provider, service consumer or service requester, and service broker. To provide the use of Web Services within a telecommunication environment, open APIs are expanded to the development of Parlay Web Services API and Parlay X Web Services API. Parlay Web Services API is for developers who want to incorporate telecom network capabilities in their applications using Web Services facilities. The WSDL (Web Service Description Language) defined with XML is used to describe the Parlay API for Web Services. The Parlay X Web Services are for IT developers who are not accustomed to network capabilities, by defining service interface with WSDL that provide a very high level abstraction of the Parlay CORBA API. The interface is being defined with WDSL. The Parlay X Web Services 0.1 specification structured in Third Party Call Control, Network Initiated Third Party Call Control, SMS, Multimedia Messaging, Payment, Account Management, User Status, and User Location were released. The Parlay X Web Services 0.2 specification has been defined in It includes Multimedia Conference, Call Handling, Call, Address List Management, and Presence. The Next Generation Network is expected to generate the diverse applications based on internet. Internationally, operators, equipment manufactures, and IT vendors are concentrating on the open APIs technology development to integrate those applications into the network. The large telecom equipment manufactures, such as Ericsson, have been already in progress to develop OSA/Parlay Gateway or Service Capability Server. The software developers such as Solomio and enterprise application server vendors such as IBM and Sun are entering this market to develop the application servers and applications for OSA/Parlay API. 5
6 Effectiveness of Open API European Open API service Market [Gartner & Infitel, 2002] Korean Open API service Market [KISDI, 2003] (6) 5. Effectiveness of Open API Open API will shorten the development period within 3 month, 80% faster than before; it currently takes 1~2 years to develop a communication application. Open API makes it possible to speed up the time taken to introduce a wide variety of niche market services and applications quickly when compared with traditional service creation tools. A common framework with standardized interfaces of Open API has the benefit to build the national policies for converged communication services in different network environments. Gartner Group has stated that the worldwide market for telecommunications equipment showed the negative growth rate from $302.8 billion in 2001 to $259.4 billion in 2003 and will be almost saturated with $291.7 billion in On the other hand, the worldwide service market for telecommunications is expected to grow strongly from $ trillion in 2003 to $ trillion in 2007 [1, 2]. Northstream forecasts that the worldwide market for Open API applications servers and gateways will show the fast growth from $0.2 billion in 2002 to $19 billion [3]. It also predicts that the number of mobile operators with Open API will increase from less than 50 in 2002 to 340 in 2007 [3]. The above figure shows the Korean Open API service market forecast based on the European Open API service market forecast in figure 7 [4], which could estimate the potential share of global API market and the possibility for creating the new service market. Open APIs has the benefit that an operator with a 2nd generation network is able to migrate the network while the applications largely untouched. This allows 3rd party application provider without network expertise to offer niche market applications. Furthermore, in order to be accessible to wider IT market players, open IT technology will vitalize the whole telecommunications industry by creating new business opportunities. It can help to generate employment and increase the number of highly-educated experts in the information and technology (IT) field. Finally, expanding into overseas markets of telecommunication equipments will enhance national competitiveness, preparing the open market for broadcasting and communications. 6
7 Challenges of Open APIs in Korea (7) 6. Challenges of Open APIs in Korea Korean Fixed-line service provider, Korea Telecom (KT), has built the open service infrastructure for fixed-line and mobile and data convergence by implementing the intelligence network-internet interlocking device to generate a new set of business models and value-added services. Therefore, KT has integrated application server, gateway, and supplementary equipments into its network. Now, the open APIs service as an example is deployed in the network shown in above Figure. Korean mobile service provider, SK Telecom (SKT), has constructed the foundation for convergence network by implementing softswitching concept in Since 2005, SKT has been preparing the IP-based Fixed and mobile convergence network and open mobile service using open APIs. Korean Fixed-line service provider, Dacom, Hanaro Telecom have been put the plan for the VoIP (Voice over Internet Protocol), Multimedia Conference Service in progress. In Korea, the Parlay Web Service technology has not been developed yet, except that some equipment vendors are trying to introduce it. To be successful in deploying Open APIs, incumbent operators should open up their own telecom networks to allow third-party applications to be hosted within telecom networks. Thus, the early open APIs deployments will have to prove technically success, and market interests have to materialize into commercial implementations to convince that operators, service providers, and end users benefit on the open networks. At last, the active participation of large operators who begins to implement open services as a model will let other vendors participate in. The key business issues that faces incumbent operators is how to provide valuable, new and differentiated services that enable the active utilization of the versatile network transport functions. The provision of these services requires increasingly complex applications, which APIs facilitate, so that operator will open their own networks and deploy open APIs. The BcN services need the open networks environment where the 3rd party service providers easily participate in. The operator s migration to a business model based on new value-added service platforms will be delayed unless the government tries to harmonize the present legal system and the business environmental change. 7
8 Conclusion Analyze open APIs for fixed and mobile convergence network Technology, Standardization and Market Push operators and 3 rd party service provider To provide new converged application Versatile open services and more rapid time to market Open APIs can generate more network traffic and revenues Various 3 rd party applications to be hosted within operators network Make a large mass market in a few years with a rapidly growing trend toward international standardization and commercialization BcN open services should make the foundation of improved business circulation (8) 7. Conclusion In this paper, we analyzed open APIs for fixed and mobile convergence network in the perspective of technology, standardization and market. The traditionally separated services such as fixed and mobile communication services were provided on the independent incumbent operators proprietary networks. However, along with the development of fixed and mobile convergence, operator will cooperatively participate with multiple 3rd party providers in the deployment of open APIs to provide versatile open services and more rapid time to market. Currently, most operators are experiencing the deduction of average revenue per user (ARPU) and the saturated subscriber growth. Open APIs can generate more network traffic, revenues and attract new subscribers by allowing various third-party applications to be hosted within operators networks. OSA/Parlay technology is finally here and ready to be used. The products and technology are mature. Time is critical for OSA/Parlay. The telecom market is experiencing one of its most challenging times. If the technology does not take off, it may be judged as old within a couple of years. If it, on the other hand, is deployed as Northstream forecasts and proves successful, it will be a more than a $1B market in a few years. The APIs will be deployed and make a large mass market in a few years with a rapidly growing trend toward international standardization and commercialization. Thus, to secure competitive edge in the world BcN market, Korea should push Industry- Educational-Research to participate in the joint standardization activities to develop interoperability between open interfaces on BcN. Also, the creation of environment and measures for fair competition and methods between stakeholders is required when operators opens up their network. References [1] Gartner, "Global Telecommunications Market Take, 3Q03," [2] Gartner, "Worldwide Switching Market Forecast Update," [3] Northstream "OSA/Parlay Status Report," [4] KISDI, Mid-term Market Forecast of Information and Communications Industry ( )," 2003 [5] Ovum, Market Strategies for Telcos and ISPs,
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