Voice and Data Roaming CDMA Americas 03/04 Mark Fruehan May 26, 2004
The VeriSign Journey Build and operate transformational infrastructures that become indispensable to society 19 th Century 20 th Century Railroads, Telegraph Networks Interstate Highway System, Telephone Networks 21 st Century Internet 2
VeriSign Solution Intelligent Infrastructure Services Networks Content & Applications wireless broadband WAN LAN video music messaging collaboration commerce Devices Users phones modems PCs RF tags server government businesses service providers routers/switches consumers 3
VeriSign s Portfolio of Services Internet Services Group Network Addressing Directory Authentication Payments Network Monitoring Communications Services Group Network Connectivity Database Network Mediation Billing and Payments Network Monitoring Find Connect Secure Transact 4
VeriSign Communications Services Value Proposition VeriSign is the only partner that delivers the intelligent infrastructure services, expertise and business model that Communications Service Providers (CSPs) need to solve today s cost and complexity challenges. So they can expand into new markets created by the convergence of communications, commerce and content. 5
IC3 Services Where we are going leading the way to Intelligent Communications, Commerce, and Content 6
1 Wireless consumer data services is a 1.7bn market with a 40% expected 5-year CAGR in Europe alone Strong growth of wireless content revenues (Western Europe) (in bn) 10 8 6 4 2 0 1.7 0.5 0.4 0.8 3.1 1.0 0.9 1.2 4.9 1.7 1.4 1.8 CAGR 40% 6.6 2.3 1.9 8.0 2.9 2.4 9.1 3.3 2.8 2.4 2.8 3.0 2003E 2004E 2005E 2006E 2007E 2008E Music/Ring tones Graphics Emerging Applications (1) Emerging applications include wireless gaming, wireless alerts, other content and services Source: Jupiter Research, January 2004 (1) 7
Expanding product offerings leading to increased ARPU ARPU Monophon ic ring tones Black and white logos Polyphonic ring tones Colored logos/ screensaver s MMS Standard games High quality/top branded wireless games MP3 Dating Ring back tone Video tones Video clips Streaming Movie Full music album LBS games 1G 2G 2.5G 3G 8
Roaming Landscape is Evolving, More Complex Voice + PSTN + Traditional carrier-operators + Licensed spectrum + Well-established stable network protocols - CDMA, TDMA, GSM, Analog - Inter-standard roaming + Well-established signaling and OSS support systems - SS7 - CIBER/TAP - Postpaid/PrePaid Data + PSTN plus Internet + Traditional carrier-operators plus nextgen greenfield operators plus content owners/brokers + Well-established plus new network protocols - CDMA, TDMA, GSM plus 802.x - More robust inter-standard roaming requirements + New signaling and OSS requirements - SS7 plus RADIUS - CIBER/TAP plus RADIUS Accounting, IPDR, etc. - PostPaid, PrePaid plus Stored Value 9
Network Convergence is Here Internet PSTN + Cheap + Intelligent endpoints + Transaction oriented + Open + TCP/IP + Intelligence, control,& bandwidth at the edge + Unregulated + Reliable + Intelligent networks + Connection oriented + Secure + SS7 + Intelligence, control,& bandwidth at the core + Regulated 10
Where the subscribers are going Technology Evolution Broadband Networks Music Interactive Messaging Video messaging games applications Objects commerce documents Content & Applications Service Provider Download Services Mobile Services VeriSign will be the Trusted Middleware to enable the Distribution, Management and Payment of digital content 11
Exchange Hub for Messaging: SMS/MMS/PTT Originating Carrier Networks SUBSCRIBER MOBILE DEVICE VeriSign INTER -CARRIER GATEWAY US MOBILE CARRIERS Other Networks CDMA CARRIER NETWORK TDMA CARRIER SERVERS MESSAGING INFRASTRUCTURE SMPP CIMD UCP SNPP SS7 MM4 SMPP CIMD UCP SNPP SS7 MM4 INTERNATIONAL CARRIERS GSM i-mode MM7 PTT MM7 PTT PAGING NETWORKS INCLUDING RIM iden IM CLIENT Reflex MSN YAHOO ICQ 12
Revolutionary Technologies Mobile Content on the go---wherever, whenever Personal Mobile Web Pages / Blogs Mobile Commerce + Mobile Payment Systems + Stored Value Accounts 13
Revolutionary Technologies: Personal Mobile Web Pages / Blogs Send Message Box Inbox Compose Outbox SMS Keyword Home Enter Keyword 972-555-1212 Send Home Welcome! Visit often For friends only Work: 212-123-4567 Call me where I am Favorite site: Yahoo E-mail me Send message Welcome!! to me Next page Mark s Site Visit Often for latest Pix & Updates Next Page End Just Do It! For friends only Work: 469-675-8460 Call me where I am Favorite site: Yahoo E-mail me Send SMS to me More Pix Next Page End For my next trick: I will saw the little girl in half Next Page End 14
Revolutionary Technologies: Mobile Commerce Integrated Mobile Commerce + Enable Secure Payment - Digital Content - Event Tickets - E-Commerce Site Payment - Utility Payments - Brick & Mortar (Real World) 15
Revolutionary Technologies: Mobile Commerce Integrated Mobile Commerce + Stored Value Accounts - Tied to Prepaid Telephone Service Accounts - Safer for Subscriber Than Cash - Larger Balances in Prepaid Account - Less Prepaid Churn - Allows Operators to Participate in Large Value Chain 16
Content is the Driver Content will drive: + Technology adoption + Usage + Revenue + Demand for Data Roaming Data Roaming will drive: + Customer satisfaction + Reduced churn + Incremental Revenue Users Devices Commerce Content speedsuite Provisioning Customer Mgmt Risk Mgmt Payment Options Device Configuration Strong Authentication Security SS7 Network Databases Roaming & Mediation Messaging Authentication Security Billing & Payment Fraud Settlement Audit Trail On-boarding Formatting Publishing Aggregation Mediation Transformation Billing & Pmt 17
Wireless Data Roaming Key Benefits Generates incremental income from data services + Expands subscriber usage of data services to roaming partner networks + Earns additional roaming revenue from visiting data subscribers Faster revenue collection process + Minimized delay in subscriber payment for data services + Records immediately available for subscriber billing via home proxy server + Streamlined management of subscriber data roaming records ensures timely and accurate billing + Eliminate the need to individually invoice roaming partners 18
Wireless Data Roaming Service Key Benefits Creates competitive differentiator and preserves market position + Develop and entrench brand positioning as a market leader + Increase operational efficiency - Maximum throughput with carrier-class scalability and performance + Faster deployment of new data services - Simple network design and deployment for quicker time to market 19
Wireless Data Roaming Components Roamer Authentication, Authorization and Accounting (AAA) + Central point to validate and report data events for home and visiting subscribers for reconciliation with roaming partners + Data records immediately available for subscriber billing via carrier s proxy server Network Usage Mediation + Access to all subscriber records via one simple connection + Real-time usage processing using industry standards for delivery to billing systems and settlement (TAP and CIBER) + Flexible rating and taxing for serving operators Clearing and Settlement + Track and analyze financial position with roaming partners and perform financial settlement + Financial settlement reporting and invoices for roaming partners Reporting Tools + Secure access to data roaming usage information 20
Wireless Data Roaming Optional Components Roamer Visibility Tools + Successfully and quickly troubleshoot roamer problems + Improve roamer satisfaction + Reduce churn Fraud Management Tools + Subscriber Fraud + Usage Fraud 21
Example CDMA1x Roaming Architecture 22
Wireless Data Roaming Design Criteria + Protect against any single point of failure within the network or application components + Maintain redundant copies of all external data (user, system, accounting) + Support automatic failover among network and application components + Support load-balancing to distribute the network load + Scale to meet customer growth requirements + Provide performance and fault-management metrics for network usage, planning + Compliance to the minimum industry standards 23
Inter-work with other clearing house VeriSign Other Operator A Roamer View Reconcile & Settlement Clearing House Operator B Rating & Billing Revenue Collector?? Rating & Billing AAA Service Controller AAA Service Controller AAA proxy proxy proxy Auth & Acct Auth & Acct Auth & Acct AAA Server 24
Accounting Flow Operator A Roamer View Reconcile & Settlement Sorted & Formatted records Push or Pull Operator B Rating & Billing Optional flow Revenue Collector Rating & Billing push AAA Service Controller RADIUS Acct Proxy push AAA Service Controller RADIUS Acct Proxy push AAA Service Controller 25
CDMA Roaming Exchange (CRX) A CDMA Roaming Exchange backbone is the connection between networks that allows roaming with mobile Data services. Instead of building bilateral links between the operators, they can make use of specialised agents that provide a hubbing function. These agents are called a CRX. 26
CDMA Roaming Exchange Operator A CDMA Roaming exchange Operator D Operator B CRX CRX Operator E Operator C CRX Operator F Operator G 27
Why CRX? + Uses successful and proven GRX model (GPRS Roaming exchange) + Major carriers considering near-term deployment + Significant Carrier and Subscriber benefits 28
CRX Carrier Benefits + Reduce OPEX One connection to plan/ monitor, deploy, troubleshoot, manage vs. many connections + Routing efficiency One data transport solution to scale vs. many + Look & feel for end-user User receives same service at home and while roaming + Security + QoS control on roaming leg Assured delivery of valuable wireless data bits/content + Fast and easy to implement and grow GRX has proven this works 29
CRX Subscriber Benefits + Instant and seamless connectivity to the CDMA2000 community + Basis for quick delivery of future services: MMS, PTT, BREW, JAVA, etc. 30
May 2004 Europe s leading wireless data services company February 2004 Acquired Unimoble: A leading Enterprise messaging entity with the ability to reach over 500 carriers 31 October 2003 Acquired UNC-Embratel: Clearinghouse Division of Embratel
VeriSign - Where It All Comes Together Intra-enterprise. Inter-enterprise. Across the Internet. Find. Connect. Secure. Transact. Internet. Telecom. Security. Products. Protocols. Providers. Credit card, Pre-pay, Post-pay. On-line, over-the-air Any User. Any Device. Any Network. Total Security. Rich communications. Commerce. Content 10 Billion Internet Transactions. 2.7 Billion Telecom Transactions. 99.999% Reliability. Trucks. Tags. Supermarket Suppliers. 5 gtlds 190 cctlds 1 Global Brand 32