Mixed use of 2 and 3 digit MNCs. Main points from report prepared for the Swedish Post and Telecom Authority (PTS) Copenhagen 4 March 2014
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1 Main points from report prepared for the Swedish Post and Telecom Authority (PTS) Copenhagen 4 March 2014
2 Overview and scope Background Analysis Conclusions 2
3 Overview A study carried out by Cybercom for the Swedish Post and Telecom Authority (PTS). Operators / market participants consulted: MNOs infrastructure based (RAN & Core) Shared infrastructure operators MVNOs traditional services (voice & data) Specialised Service Providers (Telematics/M2M) Operators of private small cell networks (typically for in-house coverage) SMS Service providers (SMS-SP) Telematics equipment developers and solution providers (e.g. automotive sector) Analysis based on consultations with Swedish operators and other market participants Overview of expected demand for MNC resources New services and applications New business models Technology evolution Main focus on mixed use of 2 and 3-digit MNCs Also considered: Shared MNCs (leading digits of MSIN used to designate service provider) MNCs under shared MCCs ( 90X ) Mobile network equipment vendors 3
4 Overview and scope Background Analysis Conclusions 4
5 Developments driving the need for MNC resources The need for more MNC numbering resources is driven by a range of various developments that create opportunities for new service providers. Telematics / M2M Utilities Security Healthcare Automotive etc. Specialised / customised services Special requirements (coverage, network redundancy, etc.) Avoid operator (MNO) lock-in effect Non- Access Unbundling/ decoupling of services SMS Roaming OTT/VoIP Deregulation New technical and market opportunities Small cell networks / private networks In-house coverage solutions Hotspots Private networks Unlicensed / shared spectrum Capacity demands (data) / service quality Technical evolution, adoption of common technologies Access 5
6 Telematics Utilities, Security The need for customised service offerings and support adapted to new business models create opportunities for specialised service providers. Customer Customer Largest telematics (M2M) sector More than 3/4 of cellular connected devices MVNO MNOs MVNO MNOs Require specialised / customised services A different business model Few large customer, large numbers of termination points Telematics focus vs. individual user focus High reliability and coverage requirements Specialised MVNOs will require MNC resources National roaming requirements Devices mostly in fixed locations 6
7 Telematics Automotive ecall will be a catalyst for widespread deployment, but the market will eventually be more than ecall. SIM for Pan-European ecall ecall SIM Telematics SIM In-Vehicle System (IVS) Telematics SIM for: Private value added services (from vehicle manufacturer) Third Party Service (TPS) emergency services Embedded Embedded or Tethered (SIM card slot) Typical IVS might may be dualfunction ecall + Proprietary services ecall mandatory, but telematics module with proprietary premium services could enable car manufacturer to recover cost ecall do not require roaming, but the other services will do Very complex connectivity and provisioning requirements Specialised MVNOs will require MNC resources 7
8 Unbundling/ decoupling of services Technical and regulatory evolution increasingly open opportunities for services to be offered by independent service providers. Roaming MNOs SMS OTT / VoIP MNOs MNCs resources may be required for: traffic termination Billing purposes Services typical international by nature Independent service providers will require MNC resources 8
9 Small cells and private networks Small cell networks are deployed for improved capacity and quality and private networks should also be expected to increasingly deploy 3GPP compatible technology. Public networks Private networks MNO Independent providers MNO operated Independent providers 3GPP technology / spectrum: 3GPP technology / spectrum LTE /LTE Advanced WiMAX / WiFi 9 In-house coverage Hotspots Support high data usage, etc.) Private networks Spectrum Unlicensed Shared, etc. MNC resources required for: Interoperability Various technical reasons New operators may require MNC resources Independent providers Private networks
10 Summary of MNC requirements The list of new potential users of MNC resources can never be complete as service and technology innovation are continuous processes. Commercial and technical trends described here are just examples of developments which may result in growing demand for MNC numbering resources. It is important to ensure that technical aspects such as numbering do not unreasonably constrain competition, service development and innovation. Services without own radio access network (RAN) may represent a very substantial part of demand for new MNC resources 10
11 Increasing MNC resources A number of ways are currently being discussed for creating more MNC resources and to use existing MNC resources more efficiently. Mixed use 2 and 3-digit MNCs Using both 2-digit and 3-digit MNCs under same MCC Will create more MNC resources depending on the amount of still unused 2-digit codes (as 2 and 3-digit codes must not overlap ) Shared MNCs More efficient use of existing MNCs Using leading digits of MSIN to denote operator or service provider An HLR Proxy solution proposed in Netherlands can be used as gateway in order to make the sharing invisible to other operators. MNCs under shared MCCs 90X MCCs may be attractive way to create more MNCs resources 1 Suitable for services which naturally transcend borders MNCs under new MCCs could be 3 digit from start exists already 902 proposed by Sweden for SMS-SPs Embedded SIM More effective management of subscriptions through remote provisioning of SIM profiles Can be used to avoid operator lock-in of M2M customers with large number of connected devices 11
12 Overview and scope Background Analysis Conclusions 12
13 Possible mixed use of 2 and 3 digit MNCs in Sweden The study evaluated a plan for mixed use of 2 and 3 digit MNCs under Sweden s country code (MCC) 240. MNC Sweden s number plan under MCC 240: 00 Not used digit assignments 70 to 99 would be 700 to digit codes already assigned will not change Shared use for closed networks Shared use for test purpose 69 Allocated for crisis management after decision by the Swedish Post- and Telecom Authority For future use 3-digit codes will not overlap with 2-digit codes digit assignments 13
14 Assessment of impact on existing operations The analysis and discussions with Swedish operators and other market participants indicate minor problems, except for issues related to 3GPP specification TS concerning HPLMN matching criteria. Areas of operation Core and access network systems Billing and mediation systems Roaming arrangements and agreements Interconnection arrangements Impact Assessment Compliance of all network components with updated specifications need to be verified Specific issues with terminals need investigation and solution, ref 3GPP spec TS , etc) Expect only minor impact (verification required) Expect in principle no impact (although verification required) Expect no impact 14
15 A change of specifications will be needed Current 3GPP specifications generally assume that a mixture of 2 and 3 digit MNCs within a single MCC area will not occur. TS assume mix of 2 and 3-digit MNCs will not occur under same MCC General assumption is used in various other 3GPP specifications (e.g. TS , HPLMN Matching criteria) 3GPP compliant systems and products are based on these assumptions Mix of 2 and 3-digit MNCs require specifications to be amended Products and systems would need to be updated accordingly Full review of specifications needed to understand exact nature of issues But, some systems and products may potentially require minimal or no changes 15
16 Possible scenarios for further study We might be able to distinguish between two scenarios with regard to potential complexity: operators with own radio access (RAN) versus MVNO/roaming scenarios. Own RAN (MNO, small cells, private networks, etc.) Broadcast of PLMN ID (MCC + MNC) Specific issues related to TS Impact on networks as well as the entire terminal population (new and old terminals) Virtual operator (MVNO, etc.) Essentially similar to roaming Seems less complicated But system compliance need verification Early implementations on local/national basis could be possible 16
17 Scope of the study Background Analysis Conclusions 17
18 Utilize full range of MNC resource alternatives To meet demand for MNC resources, it is important to work with all available alternatives depending on the nature of services and business models. Utilities/security Specialised MVNOs Automotive Specialised MVNOs Public small cell networks Private small cell networks SMS Service Providers Roaming Service Providers OTT VoIP Service Providers 2 digit MNCs / geographic MCC 3 digit MNCs / geographic MCC Shared MNCs ( HLR Proxy ) MNCs /shared MCCs ( 90X ) Embedded SIMs Most suitable for the service/application and efficient use of MNC numbering resources. Possible/suitable for the service/application, but not the most efficient use of MNC numbering resources. Possible alternative, but not best option for service/application. 3-digit MNCs may (at least in the near term) be most suitable for MVNO type operators MNCs under 90X MCCs would be suitable for services that typically transcend borders 18
19 Gradual introduction of 3-digit MNCs Develop guidelines for best use of the (at any time) available MNC resources, while working with standardisation bodies to obtain the specification changes required for mixed use of 2 and 3-digit MNCs under same MCCs. Assignment guidelines per service, application, etc. Manage limited 2 digit MNC resources for operators / service providers which cannot use 3 digit MNCs Aim at introducing 3-digit MNCs for virtual operators (MVNOs) as soon as possible Operators with radio access networks might require 2-digit MNCs for a longer period until 3-digit MNCs can be supported Also create and assign MNC resources under shared MCCs ( 90X ) for services of international nature 3-digit MNC for all new MCCs 19
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