SMS Roaming Opportunities
Signaling and Reporting Requirements
Presented by
Lara Valverde & Ann Munno
Agenda
I. Introduction
II. Current Trends in Global Roaming & SMS
III. Critical Functionality for SMS Roaming
IV. Conclusion
2
VeriSign is a Global Company
+ Global Presence
▪
▪
▪
51 Offices located in 14 countries
Asia: Australia, Hong Kong, India, Japan
EMEA: France, Germany, Switzerland, and United
Kingdom
▪ S. America: Brazil
▪ US
+ Employees
▪
4000 Worldwide
+ Financials
▪
▪
▪
$1.66B Revenue (2005)
$760M cash/assets
Profitable
+ Investments
▪
3
$103.4M in R&D (2005)
Our Mission
Enable and Protect
the World’s
Networked Interactions
4
Agenda
I. Introduction
II. Current Trends in Global Roaming & SMS
III. Critical Functionality for SMS Roaming
IV. Conclusion
5
Global Roaming Market Size
The total worldwide mobile roaming revenue for 2006 was $104B and
expected to grow to $146B by 2010.
Worldwide Mobile Roaming
Revenue 2006
17.1%
+ International roaming represented
17% of total mobile revenues in 2006
▪
Other
International
Roaming
▪
82.9%
Worldwide Mobile
Roaming 2006
Other
$503
International Roaming
$104
Source: Vision Gain, 2006.
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Revenue ($B)
It contributes a much higher
percentage of profit for many
operators.
Market and regulatory pressures will
create price declines, but International
roaming capability will continue to
increase in importance.
+ Mobile operators that have
succeeded in providing seamless and
cost effective voice roaming will find
themselves in a stronger position for
growing SMS roaming revenues and
new mobile data services.
Global Roaming Subscriber Forecast
Global Roam ing Subscribers Forecast 2006-2011
Subscribers in Millions
1200
952
848
800
600
674
534
425
400
+ Growth will come from:
Roaming Subscribers
 Growth in international travel
 Declining roaming rates will
encourage use by in-frequent
travelers
200
0
2006 2007 2008 2009 2010 2011
Source: visiongain, 2006
7
+ International roaming
subscribers will more than
double by 2011
1055
1000
+ Only 5-6% of subscribers
currently roam (2006)
Global Roaming Usage by Region
Global Roaming Usage by Region 2006
Asia Pacific,
18%
South America,
6%
Western
Europe, 44%
Asia Pacific,
24%
Eastern
Europe, 18%
North
America, 10%
Africa / Middle
East, 5%
Source: visiongain, 2006
+ Bulk of growth will come from Asia Pacific region
+ Europe declining in usage revenues due to regulatory
impacts and price decrease
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Western
Europe, 32%
South
America, 7%
North America,
8%
Africa / Middle
East, 6%
Global Roaming Usage by Region 2011
Eastern
Europe, 22%
Roaming Market Revenues by Service Type
Roaming Market Share by Product Usage 2006-2011
Roaming Market Revenues by Service Type 2006
100
90
Data, 2%
Voice, 89%
% of Total Roaming
SMS, 9%
80
70
60
Voice
50
SMS
40
Data
30
20
10
0
2006
2007
2008
2009
2010
2011
Source: visiongain 2006
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+
In 2006, SMS usage represented 9% of roaming revenues and is expected to grow
to 14% by 2011 while data usage grows to 6%
+
Roaming data usage is more profitable for operators, however, will remain
secondary over the forecasted period
+
Voice and SMS will continue to be the preferred communication method for
international travellers
SMS Roaming Revenue Forecast 2006 - 2011
SMS Roaming Revenue Forecast
+ Increasing roaming traffic
combined with increasing
SMS usage creates a ripe
opportunity to capture
significant incremental
revenues for SMS roaming
for CDMA operators
SMS Roaming Revenue in Billions $
25
20
15
10
5
0
2006
Source: visiongain, 2006
10
2007
2008
2009
2010
2011
Agenda
I. Introduction
II. Current Trends in Global Roaming & SMS
III. Critical Functionality for SMS Roaming
IV. Conclusion
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Cashing In on the SMS Roaming Opportunity
+ Options to implement an SMS Roaming solution:
▪
Develop in house solutions and bilateral roaming relationships
▪ Work with a Roaming Services Provider (RSP) to expedite
implementation of SMS roaming
+ RSPs are working to:
▪
Support SMS roaming today
▪ Identify any technical barriers present for optimal performance of SMS
▪ Facilitate features to assist the increase in usage
+ Cost-efficient solutions are available today
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SMS Roaming for CDMA Operators
The Problem:
ANSI-41 was not designed for international roaming and the use
of ANSI-41 to deliver SMS does not provide operators with the
ability to properly bill for international SMS. In many cases, even
the delivery of SMS is not possible due to incompatibility in
routing mechanisms.
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Key Components of an SMS Roaming Service
+ SMS Routing
▪
Intelligent SS7 message processing and routing to CDMA service
providers to extend SMS usage to roaming scenarios - internationally and
within your own country
+ SMS Rating & Reporting
▪
Wholesale reporting & billing for SMS usage
▪ Retail rating of SMS usage based on Serving Operator
+ Automatic SMS Roamer Greeting
▪
Enables an operator to send SMS messages to its roaming subscribers
automatically upon roaming into a new country/region
– Notify the subscriber of how to dial local and international numbers
– Inform the subscriber how to reach local help such as embassy, customer care,
etc.
– Provide tourist tips and local advisory information, etc.
▪
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Informs a roamer that SMS is functioning in a roaming environment
Current Issues in SMS Roaming
+ Unlike voice calls, no SMS CDR/MDRs are generated by switches
▪
▪
▪
Serve Carriers not able to invoice roaming partners for this value add service
Home carriers not able to retail bill their roaming subscribers
Both home and serve carriers not able to tap the potential revenue due to lack of
billing mechanism
+ Over-length SMS messages can cause difficulties while subscribers
roam
+ International access numbers are not populated in SMS voicemail
notification message – making voicemail access difficult
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How it Works
SMS Delivery
RSP
Home Carrier
SMDPP (MT) Request
Serve Carrier
SMDPP (MT) Request
SMDPP (MT) Resp
SMDPP (MT) Resp
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How it Works
SMS Origination
Home Carrier
RSP
Serve Carrier
SMDPP (MO) Request
SMDPP (MO) Request
SMDPP (MO) Resp
SMDPP (MO) Resp
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Solution Availability
+ RSPs can return a “cause code” when SMS messages exceed a
predefined length
+ It is possible for RSPs to manipulate the SMS bearer data for voice
mail notifications, thus allowing easy voicemail access
+ RSPs can enable serve carriers to “wholesale bill” the home carriers
based on SMS sent and received by the roaming Subscriber.
+ RSPs also enable home operators to pass that “wholesale bill” to
their roaming subscribers (retail bill)
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Reporting Tools – What to Look For
+ A single portal (one login) to
access all of your traffic types
will make it easier to manage
your business




ANSI-41
GSM
RADIUS (data)
SMS Wholesale Financial
Reports
+ Near real-time access to
roaming messages in human
readable format
+ Roaming Partner statistics
 Inbound / Outbound SMS MO,
MT by Roaming Partner
+ Data export functionality
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Critical Trouble Shooting Functionality
+ Advanced trouble shooting tools will help you rapidly identify the
scope of a subscriber and/or network problem:
▪
Subscriber only problem?
▪ Market only problem?
▪ Roaming Partner problem?
▪ Service Provider problem?
+ Monitor all subscriber activity
▪
SS7, SMS and data messages
▪ Your subscribers in home and roaming markets, including international
▪ Foreign roamers visiting your network
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Critical Rating & Reporting Functionality
+ Retail Rating
▪
Differentiated rating by operator and/or region
+ Wholesale Rating & Billing
+ Financial Reporting
▪
Daily Receivable, Daily Payable
▪ Monthly Receivable, Monthly Payable
▪ Net Settlement
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SMS Wholesale Rating Financial Report Example
Financial Reporting
for your Int’l SMS
Roaming traffic
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Agenda
I. Introduction
II. Current Trends in Global Roaming & SMS
III. Critical Functionality for SMS Roaming
IV. Conclusion
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Why Implement SMS Roaming?
$ Simple, consistent customer experience
(Deliver ubiquitous SMS MO and MT service)
$ Increased SMS revenue
from serving SMS by Roaming subs
$ Increased SMS revenue
from use of SMS by Home subs when roaming
(by enabling SMS Roaming)
$ Increased Voice MOU
(triggered by receiving SMSs)
$ Revenue from services that use an SMS Bearer for transport
$ Increased customer satisfaction leading to reduced churn
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Conclusion
+ Critical business issues have been addressed and successful SMS
roaming solutions are available today
▪
$9B SMS Roaming Revenues generated in 2006
+ Outstanding issues are being actively worked co-operatively by
Operators and RSPs to benefit CDMA subscribers worldwide
+ Estimated $21B SMS Roaming Revenues by 2011
▪ Will any share of this be yours?
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