The Market forecast of HLR (English version)

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The Market forecast of HLR (English version)

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<p>The Market perspective and forecast of HLR(Home Location Register) and NPDB(Number Portability DB)</p> <p>For futher Information, Contact ysyeon@dreamwiz.com</p> <p>1</p> <p>Table of ContentsExecutive Summary............................................................................................... ...............4 1. Introduction of CDMA network subsystem.................................................................... ............5 1.1 CDMA system............................................................................................. ....................5 1.2 Overview of Number Portability.......................................................................... ...........11 1.2.1 The concept of number portability.................................................................... ...11 1.2.2 Technical solution............................................................................. ..................12 1.2.3 Policy........................................................................................................... .......13 2. Forecasts of CDMA Infrastructure Demand................................................................ ............14 2.1 2.5G Coverage Analysis .............................................................................................. .16 2.2 Total subscriber forecast .......................................................................... ....................18 2.2.1 Forecast of provincial subscribers..................................................... .................19 2.2.2 Forecast of SKTs MSC/HLR demand.................................................. ..............21 2.2.3 Forecast of KTFs MSC/HLR demand............................................ ....................23 2.2.4 Forecast of LGTs MSC/HLR demand.................................................. ..............25</p> <p>2</p> <p>List of Figures</p> <p>List of Tables</p> <p>3</p> <p>Executive SummaryThe launch of IMT-2000(CDMA2000 and W-CDMA) commercial service is scheduled to begin in the 3rd quarter of this year in South Korea. Currently, a couple of companies which produce Telco S/W products, are preparing to apply to be listed in KOSDAQ. Discussed in this report, will be first, an estimate of the companies potential market size, such as HLR(Home Location Register), NPDB(Number Portability DataBase) etc. Second, It will be demonstrated which area the companies should pay attention to, to build a roadmap of technology development to achieve both the technology and market needs. The methodology used in this report is as follows</p> <p>1.</p> <p>Subscribers ForecastingSince the number of Telco S/W is highly connected to the number of subscribers, a forecast of the coming five years subscribers will be undertaken by province and technology</p> <p>2.</p> <p>BTS, BSC and MSCAlthough there is no mathematically exact relation between the number of BTS(Base station Transciever Subsystem), BSC(Base transceiver System Controller) and MSC(Mobile Switching Center), the portion of BTSs capital expenditure to total infrastructure capital expenditure is known as about 50%. So it is possible to forecast how many BTS will be installed from the total capital expenditure announced by the carriers.</p> <p>3. Telco S/W adoptionAn analysis of the portion of Telco S/W to the total capital expenditure will enable us to forecast the market size of Telco S/W by linking the two results.</p> <p>4</p> <p>1. Introduction of CDMA network subsystem1.1 CDMA systemCDMA infrastructure A CDMA network is composed of several functional entities, whose functions and interfaces are specified. Figure 1-1 shows the layout of a generic CDMA network. The CDMA network can be divided into three broad parts. The Mobile Station is carried by the subscriber. The Base Station Subsystem controls the radio link with the Mobile Station. The Network Subsystem, the main part of which is the Mobile services Switching Center (MSC), performs the switching of calls between the mobile users, and between mobile and fixed network users. The MSC also handles the mobility management operations. The Mobile Station(terminal) and the Base Station Subsystem communicate across the Um interface, also known as the air interface or radio link. The Base Station Subsystem communicates with the Mobile services Switching Center across the A interface.</p> <p>Figure 1. CDMA network subsystem</p> <p>5</p> <p>This BTS transmits on a regularly base the frequencies of neighbor BTS's so the MS can try if one of those cells gives better reception. It will not decide anything, the MS just transmits the measurements back to the BTS allowing the BSC to determine if a BTS change is wanted (called a hand-over). The reason that the BSC decides is that it has a wider view on what's going on with the network. If the new BTS is one from the same BSC, the BSC will initiate the handover. If the new BTS is under control of another BSC the MSC will take care of contacting that other BSC because a BSC can not talk directly to another BSC. In both cases, the MS and the BSC/MSC are working together to make the hand-over as smooth as possible. The network reserves a channel on the new BTS, so the hand-over can take place even in the middle of a call. For an incoming call it is necessary for the network to know where the MS is, so the call can be routed to the correct MSC. This is where the HLR and VLR play an important role. The HLR tells us what VLR knows where the MS is. In the VLR there's a LAC (Location Area Code) linked to the phone that correspondents to a physical location. The VLR initializes a page to the MS by sending a page to the MSC that the VLR thinks is where the phone is. The MS is always listening to it's PCH (Paging Channel) and therefore sees the call. The MS responds and callsetup can take place. So, an incoming call always starts at the HLR. This is rather easy to do because the network knows where it's own HLR is and the phone number of MS remains the same, no matter what country the phone is. The routing that other networks have to do is not determined by the location of the MS, the network the phone is on will take care of that. When the MS is switched off, the network will remember where the phone was last 'seen'. When no 'switch-off' signal is received the network thinks the phone is still listening to it's paging channel. To be sure the phone is really turned on the network expects every couple of hours a message from the phone telling it's still there. The time between these messages can be set by the network.</p> <p>6</p> <p>The CDMA(Code Division Multiple Access) network is consisted of transmitting network which deals with call transmitting, call-processing network, intelligent network and managing network. Transmitting network is consisted of MSC(Mobile Switching Center), IGS(Inter-Gateway Switching System), BTS(Base Station Transciever Subsystem) and Mobile staton(Cell phone). Call-processing network is consisted of MSC and STP(Signal Transmitting Processor) which connects MSC and Intelligent network through SS7(Signaling No.7). Intelligent network is consisted of DB(DataBase) system such as subscribers information and control logics. Managing network is consisted of NMS(Network Management System) and CCBS(Consumer Care and Billing System). Transmitting layer The transmitting network includes MSC, IGS, IWF, BTS and MS. The transmitting network manages call-processing according to the data of the intelligent network.</p> <p>Intelligent Network</p> <p>MSC</p> <p>BSC BTS IGS</p> <p>BTS</p> <p>BSC</p> <p>IWF</p> <p>Otheroperators Mobilenetwork</p> <p>Figure 2. Transmitting layer</p> <p>7</p> <p>1) Mobile Switching Center(MSC) The central component of the Network Subsystem is the Mobile services Switching Center (MSC). It acts like a normal switching node of the PSTN or ISDN, and in addition provides all the functionality needed to handle a mobile subscriber, including registration, authentication, location updating, inter-MSC handovers, and call routing to a roaming subscriber. These services are provided in conjuction with four intelligent databases, which together with the MSC form the Network Subsystem. The MSC also provides the connection to the public fixed networks. Signaling between functional entities in the network subsystem uses Signaling System Number 7 (SS7), used for trunk signaling in ISDN and widely used in current public networks. The main function of the mobile services switching center (MSC) is used to co-ordinate the setting-up of calls to and from CDMA users. On one end of the MSC, it is connected to the BSS, while the other end is connected to the external networks for communication with users outside CDMA, such as subscribers in the local phone system network. When a mobile user wants to make a phone call to a local phone user, the MSC acts as the virtual connection node that passes the voice signal between the two users. On the other hand, if the mobile user wants to phone to another CDMA user, the MSC will locate the MSC that handles the MS of the other CDMA user. Subsequently, the two resulting MSC's will act as the virtual path that passes the voice signal between the two CDMA users. 2) Base Station Transceiver System (BTS) BTS, a system which performs wireless interface with mobile terminals, exchanges wireless data and signal data with mobile terminals pursuant to the standards of IS-2000 and IS-856. BTS transmits the data and the signal data received from mobile terminals to the core network through BSC and, conversely, transmits the data and the signal data received from the core network to the mobile terminals through BSC. Serving as a wireless transceiver, BTS performs wireless resource management functions, RF scheduling and power control. BTS in the CDMA2000 1xEV-DO network only adds the channel cards for 1xEV-DO, while the hardware configuration of BTS in the CDMA2000 1x network is maintained intact to enhance packet data service functions. BTS is referred to as ANTS (Access Network Transceiver System) in a single CDMA2000 1xEV-DO network. 3) Base Station Controller (BSC)</p> <p>8</p> <p>BSC is a system that performs call processing, controls BTS, and provides an interface with the core network. It also redirects packet data calls from mobile terminals to the DCN network in the CDMA2000 1xEV-DO network. BSC processes calls, SF (Selector Function) and RLP (Radio Link Protocol), and controls BTS in both of the CDMA2000 1x network and the CDMA2000 1xEV-DO network. BSC is referred to as ANC (Access Network Controller) in a single CDMA2000 1xEV-DO network. 4) IWF (Inter-Working Function) The IWF (Inter-Working Functions) for wireless Internet service is an equipment designed to provide data service as an infrastructure facility. It is an integral equipment for Wireless Internet that connects wireless networks to wired networks, allowing Cellular and PCS subscribers to transmit message, data and fax and get Internet services not only via telephone but also from mobile communication terminals. 5) AuC (Authentication Center) Authentication Center. The AuC database contains the subscriber authentication keys and the algorithm required to calculate the authentication parameters to be transferred to the HLR Intelligent layer 1) Home Location Register (HLR) The Home Location Register (HLR) is the main database of permanent subscriber information for a mobile network. The HLR is an integral component of CDMA (code division multiple access), TDMA (time division multiple access), and CDMA (Global System for Mobile communications) networks. Maintained by the subscriber's home carrier (or the network operator where the user initiated the call), the HLR contains pertinent user information, including address, account status, and preferences. The HLR interacts with the Mobile Switching Center (MSC), which is a switch used for call control and processing. The MSC also serves as a pointof-access to the Public Switched Telephone Network (PSTN - the fixed network). The third integral element is the Visiting Location Register (VLR), which maintains temporary user information (such as current location) to manage requests from subscribers who are out of the area covered by their home system. When a user initiates a call, the switching equipment determines whether or not the call is coming from the device's home area. If the user is out of the home area, the area VLR sends</p> <p>9</p> <p>out a request for information required to process the call. An MSC queries the HLR identified by the call for information, which it relays to the appropriate MSC, which in turn relays it to the VLR. The VLR sends routing information back to the MSC which allows it to find the station where the call originated, and, finally, the mobile device to connect. Communications between the elements are based on Signaling System (SS7) protocols and signaling. 2) Visitor Location Register (VLR) The VLR contains a copy of most of the data stored at the HLR. It is, however, temporary data, which exists for only as long as the subscriber is "active" in the particular area covered by the VLR. The VLR database will, therefore, contain some duplicate data as well as more precise data relevant to the subscriber remaining within the VLR coverage. The VLR provides a local database for the subscriber whenever he is physically located within a PLMN (Public Land Mobile Network. The mobile communication network), this may or may not be the "home" system. This function eliminates the need for excessive and time-consuming references to the "home" HLR database.</p> <p>10</p> <p>1.2 Overview of Number Portability1.2.1 The concept of number portabilityThe term "Mobile Number Portability (MNP)" refers to facilities enabling a customer to change his mobile network operator and/or service provider while retaining his number. In other words a customer can move or port their mobile number from one mobile phone company to another mobile phone company on a different network and keep the same number. However in the process of changing network operator and/or service provider the customer may lose supplementary services related to the basic service. Number portability is being demanded by customers and mandated by regulators. For end users, number portability is a breakthrough in convenience - the freedom to change wireless or wireline operators without changing phone numbers. At the same time, the addition of new customers means revenue growth for operators. For operators, number portability is now a required core competency that presents enormous technical and operational challenges. Portability increases the complexity of call processing, number administration, service provisioning, service assurance, and network operations, requiring changes in virtually every major operation from call processing and routing to customer care, billing, and inter-company data exchange. As the world continues to change and new technologies and regulatory mandates are introduced, number portability solutions also will need to interface and work with operators...</p>