APT Workshop on International Mobile

Roaming
Brisbane, 8-10 June
Session 1
Overview, History and Evolution of Roaming
Session 1: Overview of Roaming

 In this introductory session, delegates will learn about

the beginning of roaming, its maturation, and evolution
as well as some of the market impacts roaming has had
(or created) in different parts of the world.

 In addition, delegates will learn about the fundamental

components of roaming, the operational layers, and
some of the most common roaming processes.

 This module also introduces key roaming vocabulary to

aid delegates in understanding the business as well as its
common terms.

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Module Topics

 What is Roaming

 History and Evolution of Roaming

 Global Roaming Statistics

 Roaming Alliances

 Segments: Post-paid and Prepaid

 Functional Components of Roaming

 Service Differences

 Possible Trends in Roaming

Roaming Is…

 Enabling a subscriber of one operator to use the network services

of another operator
 Inherent mobility of the phone and user to move to an area outside of his/her
“home” area created the need to enable services while travelling
 Locally – domestic roaming
 Abroad – international roaming

 The relationship between operators that enables use of mobile

services for customers of each
 Roaming has become a highly advanced technological, commercial, and (in
some cases) financially attractive proposition for network operators around
the world.
 Enabled via commercial agreements, technical connectivity, and billing
procedures.

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Roaming Vocabulary 1
 Operator = a (licensed) Mobile Network Operator (also called “carrier”) in
a country; owns and operates the network

 MVNO = Mobile VIRTUAL Network Operator = purchases access to an

Operator’s network; doesn’t own or operate a network

 Home Operator = HPMN (Home Public Mobile Network); the home, or

subscribed, network of a customer

 Visited Operator = VPMN (Visited Public Mobile Network); also called the
“serving operator”; the network on which a roamer is registered and
approved (authenticated) to roam

 GSMA = Global System for Mobile Association

 CDG = CDMA Development Group

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Roaming Vocabulary 2
 HLR = Home Location Register; database of customers’ technical
credentials; gives “permission to roam” among other things
 SIM = a smart card which carries the customer’s network identity (IMSI –
see below)
 IMSI = 15 digit code which identifies the customer’s home country
(Mobile Country Code or MCC); home network (Mobile Network Code or
MNC); and identity (random numbers)
 VLR = Visitor Location Register; database of roamers’ technical
credentials; copies the customer’s Home service profile on the Visited
Network (or VPMN) following authentication
 SS7 = Signaling System Number 7 protocol; the “language” used by the
VLR to communicate with the HLR to authenticate a roamer’s identity and
obtain “permission to roam”
 MSC = Mobile Switching Center; associates the IMSI with the mobile
telephone number (MSISDN) among other things; connects to PSTN

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Roaming Vocabulary 3
 TAP = Transfer Account Procedure; common “language” for GSM
operators to exchange settlement and billing information between
roaming partners
 CIBER = Cellular Inter-carrier Billing Exchange Record; common “language”
for CDMA operators to exchange settlement and billing information
between roaming partners
 DCH = Data Clearing House; organizations that, on behalf of mobile
operators, send and receive TAP or CIBER records for the purposes of
inter-operator settlement; some provide additional value-added services
 FCH = Financial Clearing House; organizations that, on behalf of mobile
operators, use data from DCHs about “cleared” TAP or CIBER records to
calculate (net) financial settlement positions between any two roaming
partners

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Roaming Vocabulary 4
 MO = Mobile Originated; calls or texts made by roamers on a Visited Network
 MT = Mobile Terminated; calls or texts received by roamers on a Visited
Network
 PSTN = Public Switched Telephone Network; generally refers to the fixed-line
communication infrastructure within a country such as local and long distance
(and sometime internet) providers
 SMSC = Short Message Service Center; the MSC for text messages; SMSCs rely
on location information obtained from the HLR to direct text messages to
roamers.
 SGSN = Serving Gateway Service Node; Visited Network device that routes
data sessions to/toward the Home Network
 GGSN = Gateway GPRS Service Node; Home Network server that delivers data
sessions received from the SGSN (among other places) to the requested
destination; based on IP addresses (rather than MSISDNs)
 APN = Access Point Name

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The Evolution of Roaming

1980 1985 1990 1995 2000 2010

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Roaming History and Development
Roaming evolved in the 1980s and differently in various parts of
the world:
 Europe: different technologies and radio frequencies within the
“Common Market” (AMPS, TACS, NMT)
(Subscriber from Scandinavia couldn’t use his mobile in Germany)

 North America: local-level spectrum licensing created “pockets of

coverage” between unrelated operators
(Subscriber from New York couldn’t use her mobile in Washington)

 Asia Pacific: different technologies in countries with vastly different

socio-economic strata
(Subscriber from Japan could only use his mobile in Japan)

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Roaming History and Development
GSM was created to facilitate roaming and eliminate the
technology differences globally:

 The GSM standards were created to specifically support roaming

 Regulatory bodies harmonized the spectrum allocations to operators

(especially in Europe: 900 MHz, 1800 MHz)

 The GSM Association established the procedures and legal frameworks for
inter-operator roaming

 In North America, market forces created “National Roaming” and

spectrum licensing helped to harmonize spectrum allocations (although in
a different band than Europe – 1900 MHz!)

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Challenges
The roaming business has had to face many challenges:

 Early differences in network implementation

 Deployment of multiple frequency bands and handset compatibility

issues (900, 1800, 1900, 850 and now 3G!)

 Early solutions for prepaid roaming (USSD, Callback, CAMEL)

 Billing and Fraud

 Data roaming rollout (GPRS, 3G)

 Data pricing and capacity issues

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Roaming Alliances

 The emergence of large, multinational operator groups led to the

creation of roaming alliances similar to airline alliances
 Vodafone, Telefonica, America Movil, Deutsche Telekom each have
operations in more than 20 countries
 Established marketing arrangements with operators in countries where they
don’t have a presence (e.g. Vodafone in Denmark and Hong Kong)
 Value is in the brand
 Alliances created to compete with the large multi-nationals
 Generally failed (or certainly weren’t commercial successes)
 Marketing is easy; execution is not (e.g. airlines!)
 Little interest in long-term commitment required for an alliance
 Alliances may make a come-back as the global market stabilizes

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Roaming Alliances – Vodafone Group Members

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Roaming Alliances – Vodafone Group Alliance

Customer Base: 323 million

Networks with Ownership Interest: 31
Partner Networks: 40

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Roaming Alliances – Telefonica

The purchase of several GSM Networks in Latin America

and Europe - among others the O2 Group – has made
Telefonica one of the major players in the Mobile industry.

Telefonica Telefonica - O2
Brazil Nicaragua Czech Republic - O2
Colombia Panama Germany -O2
El Salvador Peru Ireland - O2
Ecuador Puerto Rico Slovakia
Guatemala Spain UK - O2
Mexico Uruguay
Morocco Venezuela

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Roaming Segments

 Roaming was a natural outcome of mobility

 Professionals and others who travelled for business
 Value from mobility – particularly outside the Home area
 Roaming was a premium service
 Came with a premium price
 More availability = more usage
 Became more “mass market” with interoperability
 GSM enable roaming to work like the Home service
 Users needed/wanted to stay in touch while away
 Demographic shifts as mobile became more affordable
 Suddenly tourists, students, occasional travelers wanted to roam

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Post-paid & Prepaid
 Roaming mirrored the mobile industry in segment reach
 Started as a “post-paid” service – “use now, (hopefully) pay later”
 Exposure from roaming (what one operator’s customers did on another
operator’s network) much greater than home usage
 Operators limited risk by limiting access to roaming
 Geographic and demographic differences
 Europe: Consumers prefer pre-paid or pay-as-you-go options
Greater privacy and anonymity; no contracts
 North America: if the operator wouldn’t accept risk, consumer had to pay a
deposit (up to US$500 in cases) to get service
 GSM enhanced by CAMEL – a technical standard that opened up
roaming to “pre-paid” customers
 Customized Application for Mobile Enhanced Network Logic
 Real-time account balance management while roaming

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Roaming Components
 Commercial Level
 Roaming Agreements (legal contracts) between operators
 Standard document templates, rules, regulations, policies, procedures
for the entire scope of roaming
 Technical Level
 Physical connectivity between operators; enables authentication
 Standard protocols, interfaces, connection mechanisms
 Harmonized testing procedures
 Financial Level
 Ensures the parties (operators) can settle between themselves and
with their customers
 Standard mechanisms for billing record format, exchange rate
conversions, funding for debts, net settlement

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Commercial

 Roaming Agreements
 Legal contracts between operators
o GSM standard documents: AA12, 13, 14
 Defines bilateral services; adherence to standards
o Voice = making and receiving calls
o Text = sending and receiving SMS messages
o Data = sending and receiving emails, internet browsing
 Detailed (wholesale, or inter-operator) costs for services
 Organizational Influence
 Same jobs and responsibilities in every operator on earth
 Non-local focus for companies that traditionally looked after their own
customers only
 Day-to-day operations and maintenance of a “Roaming Business”

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Mobile Network Basics

Mobile user on Home Network

Home network provides all voice, messaging and data services

SGSN
GGSN
Data Server

Data Services

Switch
MSC
Billing Platform International Long Distance Carriers
Voice

Local Interconnect
Roaming Basics
Home Network Mobile user roaming on Visited Network
Visited network provides Voice services
Home network provides Data services
SGSN
GGSN

Data Services

IP Connection
GRX
MSC
Billing
Signaling Data
SS7
SGSN
GGSN

Billing Data
TAP MSC

Voice/SMS
Billing local interconnect
long distance

Visited Network
How It Fits Together
Home Operator
Interconnection
Roaming
Voice

3
HLR MSC
1 SS7 2
VLR
NW 1 2 Provider AUC EIR
MSC
3
Roaming

IP GRX IP
4
Data

Backbone Provider Backbone

Roaming Partner
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Roaming Service Providers

Roaming Vendor Services

Category Service Acronym
Connectivity Roaming Signaling SS7
Roaming IP Connectivity GRX/IPX
Sponsored Roaming/Hubbing Services OC Hub
SMS & MMS Hubbing
Transactional Data Clearing DCH
Financial Clearing FCH
Fraud Reporting NRTRDE
Agreements Support RAEX
Prepaid Top-Up
Value Added Voicemail Completion
Short Codes
Network Steering
Technical
 Roaming Technical Specifications
 Provides identity and routing information
o Required to connect roaming partners
o GSM: IR 21 document
 Technically defines roaming services; adherence to standards
o Radio frequencies and device compatibility
o Air Interfaces (e.g. GSM, CDMA, UMTS, TD-SCDMA, etc.)
 Requirements for technical connection, testing, troubleshooting
 Organizational Influence
 Same jobs and responsibilities in every operator on the planet
 Solely responsible for enabling and supporting roamers on the network
 Responsible to the Commercial team for execution of the technical
aspects of the Roaming Agreement

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Financial
 Wholesale Level
 A visited network (VPMN) will:
o collect roaming data from its network,
o apply rates as agreed in the Roaming Agreement
o convert the records to TAP or CIBER and send to the DCH
 The records sent represent revenue earned for inbound roaming
 The records received (from the other roaming partner) represent the expense
(liability) incurred for outbound roaming
 Retail Level
 A home network (HPMN) will:
o collect and sort roaming records received from the DCH by IMSI
o apply retail roaming rates to each record based on the customer’s chosen
price plan or a standard roaming tariff
o invoice (bill) the customer for roaming charges accumulated during the
billing period

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Roaming – Key Operator Impacts
 Costs apply to both home and visited networks

 Roaming introduces incremental network and third party

vendor costs

 Additional organizational resources are required

 Contract management
 Day to day operations
 Technical/billing testing and coordination
 Reporting and analysis

 Reporting, Billing and Settlement for Roaming is very complex

 Roaming significantly increases the possibility of fraud

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Voice and Text Service Attributes

 Voice Services
 Roamers either make (MO) or receive (MT) calls
 MSCs connect calls to/from roamers via the PSTN or other private
networks (i.e. international long distance providers)
 Calls are sent or received (routed) to a mobile based on the MSISDN
 SMS (Text) Message Services
 Roamers either send (MO) or receive (MT) text messages
 SMS is enabled by S-MSCs which are either
o Directly connected between operators (roaming partners) or
o Connected via an SMS Hub/Gateway with connections to many operators’
SMSCs.

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Data Service Attributes
 Data Services
 “Pull” data services – roamers initiate a session to get data
 Some services, like Blackberry/RIM, “push” data to subscribers whether
they’re roaming or not.
 In the current paradigm, the Home Network is always the link between
the customer (when roaming) and the internet – whether for email
services, browsing, or other application services.
o Therefore, the Visited Network’s SGSN will always deliver a data request to
the Home Network’s GGSN for MO Data services;
o And the Visited Network’s SGSN will always deliver data to the roamer at
the behest of the Home Network’s GGSN for MT Data services
 GGSNs connect data sessions to an APN associated with the customer’s
service
o For example, all Blackberry traffic is directed to/from a Blackberry/RIM APN

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Future Trends 1
 Data, Data, and More data
 Network capacity a major issue for new devices
 “Data Offload” increasingly used by operators to reduce network
congestion including use of UMA services when roaming
 Increase of more “data-hungry” devices
 More data-enabled devices and applications (iPad, Kindle, GPS…)

 Retail Pricing shifts

 Currently, roamers mindful of the costs of roaming, utilize alternative
services (such as Skype) to make calls while travelling abroad
 The European Commission took action to make roaming within the Union
“domestic” rather than “international”
 Pricing is bound to come down for roamers, but when and to what degree?
 Prepaid packages (for example: monthly bundled data packages)

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Future Trends - 2
 LTE
 Enables much more efficient mobile services
 Except for frequency differences, should be a truly global standard

 Open Connectivity Initiative

 GSMA initiative aimed at simplifying the establishment of roaming
services for operators
 Roaming hubbing services using hosting operators
 Simplified roaming agreement management

 3G only operators (for example: late (4th) entrants, CDMA

converts)

 Quality Testing – GSMA Global Roaming Quality Initiative

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Future Trends - 3
 UMA Wi-Fi Roaming

 Alliances, Preferred Partners and Traffic Steering

 3G Roaming and Multi-Band Handsets

 Outsourcing of roaming services (to varying degrees)

 Hosted roaming
 Outsourced operations (negotiations/agreements)
 Technical and billing testing

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How We Got to LTE…

4G
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Mobile Roaming Evolution!

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