White Paper

Understanding Connectivity Models for SMS Interoperability

This white paper: Provides an overview of SMS interoperability, interworking and roaming. Illustrates the elements an effective SMS interoperability solution should support. Describes current SMS interoperability connection options, including peering, hubbing and a hybrid model, and the pros and cons of each.

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Table of Contents Executive Summary....................................................................................3 SMS Interoperability Description..................................................................4 SMS Interoperability Connection Models. ......................................................6 Peering Model (GSM Legacy Bilateral Model)..........................................6 Hubbing Model (GSM Open Connectivity Model).....................................7 Hybrid Model.......................................................................................8 Comparison of SMS Interoperability Models..................................................9 Conclusion...............................................................................................10 Syniverse NEXTSM SMS Open Connectivity Hub. ...........................................11

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Executive Summary
Todays mobile operators know that to provide seamless messaging services, they need simple ways to interconnect and interwork with one another. This ability can boost subscriber satisfaction and reduce churn by enabling subscribers to: Send SMS messages to family, friends and colleagues around the globe. Access messaging services in any market where they roam. Seamlessly use messaging services no matter what network, technology or device the message recipient is using.

While it is important for operators to keep subscribers satisfied, it also is vital for them to have reliable connections with one another. The three connection models currently used today by mobile operators include: 1. Peering model Operators have multiple bilateral agreements that support point-topoint connections among peering partner networks. 2. Hubbing model Operators have a single connection to a centralized hub that supports point-to-multi-point connections to reach all operator partners. 3. Hybrid model Operators have mixed clusters of point-to-point and point-to-multipoint connections, and are connected to a hub provider and other selected operators. No matter which model an operator chooses to employ, the connection should support a number of requirements, including: Quality of service for connectivity, service availability and message latency Security Anti-SPAM Character length and message concentration SMS classes of service and character set conversion Confirmation and notification of message delivery and/or read receipt

Moreover, in todays global economy, operators must realize the cost savings and efficiencies available to them for SMS. One way to accomplish this is via open connectivity (OC) SMS hubbing services. OC hubbing models provide economical and extensible solutions for all operators and can support unplanned traffic peaks, simple customer care and network operation processes.

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SMS Interoperability Description

SMS interoperability enables operators (regardless of network technologies and geographic regions) to offer their subscribers the ability to easily send and receive SMS messages to friends, family and colleagues who are on a different operators network. SMS interoperability commonly refers to the SMS interworking service that provides the connection and routing of SMS messages between two operator networks. One element of SMS interoperability is SMS interworking, an arrangement between operators that allows an operators subscribers to send and receive SMS messages to and from any other operators subscriber using the subscribers mobile number as the address (e.g., an AIS (GSM) subscriber originates an SMS that terminates on a Sprint (CDMA) subscribers handset). Another service is SMS roaming, an arrangement by operators to allow their roaming subscribers to exchange SMS messages with other operators subscribers using a subscribers mobile number as the address. Both originating and terminating subscribers can send and receive SMS messages, whether one or both are on their home operators network or roaming on a partner network. (e.g., an AIS subscriber roaming on AT&T can send an SMS message to a Sprint subscriber roaming on the Telus network). An effective SMS interoperability solution should support the following requirements: 1. Quality of service for connectivity, service availability and message latency: Provide effective connectivity and system capacity with a high level of reliability (georedundant system) to support traffic growth (both planned and unplanned) to each operator or to the operators third party vendor of choice that hosts SMS traffic. Need scalable connections to quickly handle increases in volume. 2. Security: Build in security to ensure third party intermediaries or other operators are unable to access subscriber information or messaging not required to support SMS interoperability. As security needs increase for services like banking, the SMS interoperability hub environment also should support security and fraud protection requirements. 3. Anti-SPAM: Build in an anti-SPAM program to deny the opportunity for spammers from other operators to affect subscribers and the home network. Take all precautionary means to control and eliminate SPAM for all SMS traffic. 4. Character length and message concentration: Work to reconcile the maximum message length of different operators and network technologies (for example, 150 characters for CDMA and 160 characters for GSM). All operators will need to be profiled in order to serve other operators with smaller message lengths (e.g., Korean operators support only 80-character SMS messages). 5. SMS classes of service and character set conversion: Support all text bases, international characters and binary content. Provide character set mapping from IA5 (GSM) to ASCII (TDMA/CDMA).

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6. Confirmation and notification of message delivery and/or read receipt: Provide support to handle message delivery confirmations to another operators subscribers. This function may be a requirement by some international operators to satisfy their local regulators. 7. Traffic report, message detail record (MDR) and billing relationship: Provide meaningful MDRs and traffic reports to support engineering planning, operation, care and billing settlement with other operators. 8. Mobile number portability: Access mobile number portability (MNP) for all outbound SMS messages to determine correct operator destinations. 9. Message delivery, queue period and re-try schedule: Negotiate with other operators to determine an acceptable timeframe for message delivery, including the re-try schedule, and the queue or priority standards. Provide the capability to offload traffic from an originating operators SMSC to defer costly system-capacity upgrades. The queue should be large enough to support network or system congestion. 10. Large-scale hubbing network: Provide more destinations to achieve full network effect for operator traffic exchange, and improve costs and efficiencies. 11. Support of next generation message service: Support for advanced (SIP-based) messaging and interoperability between 2, 2.5 and 3G network messaging services.

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SMS Interoperability Connection Models

There are three basic connection models to support SMS interoperability: peering, hubbing and hybrid. Peering Model (GSM Legacy Bilateral Model) The peering model, as seen in Figure 1, employs multiple bilateral agreements that support point-to-point connections among peering partner networks. In this model, onboarding of new operators is the responsibility of the individual operator and can only be used in a homogeneous network environment (e.g., GSM). The model works well for a small number of operators offering simple text messaging service. However, the model is problematic for a large number of operators offering complex service and business arrangements. Many GSM operators have used this model with the complex billing and settlement (AA.19) over GSM MAP (SS7) connections. The GSMA has been working with the industry to recommend migrating from the peering to the hubbing model through open connectivity (OC) SMS hubbing services. The model may not work over SS7 connections across network technologies because inter-system mobile application parts (MAPs) between ANSI-41 and GSM have not been developed and ratified. There also may be requirements to implement new network entities to support this serving arrangement. Alternatively, if operators want to connect their SMSC network using IP connections such as SMPP, they will need to provide the SMS interoperability hub network functions to support SMS interoperability traffic exchange properly. FIGURE 1 Peering Model (GSM Legacy Bilateral Model)

Technical implementation varies with each partner, no WNP solution, difficult to support interworking across different network technology Bilateral negotiations with 400+ partners: No standard SLA Still requires third party settlement service Huge overhead to maintain many bilateral connection and transactions
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Engineering Business Settlement Operation

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Hubbing Model (GSM Open Connectivity Model) The hubbing model, shown in Figure 2, provides a single agreement and point to multi-point connection to enable full SMS interoperability regardless of network technologies or specific operator network configurations. An individual operator is connected to a hub provider using a single connection, SLA and billing relationship (to the hub provider only) to reach all operator partners. The onboarding of new operators is the responsibility of the hub provider, including testing, profiling and other capability adaptations. This serving arrangement works for a large number of operators with complex service and business relationships. The GSMA has recommended using the requesting party pay (RPP) model with cascade billing, which has been employed by hub providers in the United States. The hubbing model can use either SMPP (IP) or SS7 connections, though it is recommended to use SMPP over IP because of the effectiveness and expandability of this protocol for SMS hub connections. FIGURE 2 Hubbing Model (GSM Open Connectivity Model)

One-time hub setup to reach all partners, WNP solution, interworking with different network technology Single contract with aggregated volume power: SLA Settlement provided by hub Professional management under SLA and 24x7 support

Engineering Business Settlement Operation

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Hybrid Model The hybrid model is a complex configuration with mixed clusters of point-to-point and point to multi-point connections. As shown in Figure 3, an individual operator is connected to a hub provider and other selected operators. Onboarding of new operators may be the responsibility of the hub provider or the operator, depending on the destination operators. This model can be used to enable SMS interworking across different network technologies. It also works for a large number of operators with complex service and business arrangements. The serving arrangement supports both simple billing and SLA relationships with operators behind a hub as well as complex bilateral relationships with direct connect operators. Operators that employ this model will need to operate a complex routing gateway and operation support (with the full capability and function as a hub provider). FIGURE 3 Hybrid Model

Technical implementation varies with each partner, no WNP solution, difficult to support interworking across different network technologies Bilateral negotiations with fewer operators but may still be large number of partners: No standard SLA Still requires third party settlement service Huge overhead to maintain many different connections and transactions

Engineering

Business Settlement Operation

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Comparison of SMS Interoperability Models

Table 1 below summarizes the pros and cons associated with SMS interoperability serving models. TABLE 1 Comparison of SMS Interoperability Models

Pro
Low latency End-to-end delivery confirmation (possible in GSM only)

Con
Complex MDR, billing and settlement - Complex routing and connection management - Implementation and testing (new partners) - SPAM control - High capital (SMSC for store and forward) - MNP - Multiple SLAs, subscriber care and operation support - Character mapping (converting between IA5 and ASCII) and possibly other more complex character sets Perceived high expense (outsourcing)

Peering Model

Hub Model

Simple billing and settlement Simple routing management Single SLAs and connection Flexible routing and control

Complex MDR, billing and settlement - Complex routing and connection management - SPAM control

Hybrid Model

- High capital (hub for store and forward) - MNP - Subscriber care and operation support - Character mapping (converting between IA5 and ASCII) and possibly other complex character sets

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Conclusion
With the growth and proliferation of operators, as well as voice and data services, the exchange of international data has become highly complex, onerous and resource intensive. The bilateral and hybrid agreement models are costly and can restrict operators from realizing their interoperability footprint goals and objectives for a number of reasons: (1) desired roaming partners already have multiple agreements in their service area; (2) the operator does not rank high enough on the selected partners priority list; (3) the prospective partner is busy implementing other technologies or services (CAMEL/WIN, IMS, etc.). Furthermore, there are significant costs associated with the coordination of global service and implementation of each interoperability partner. In some cases, it may not be commercially viable for an operator to have certain destinations available due to the financial and operational outlay required to implement an agreement with a particular partner. Syniverse recommends the OC hubbing model for operators looking for the most costefficient, simple way to implement agreements and interoperate with global operators. Global interoperability is made easy with OC because operators only have to manage a single relationship and connection with their hub provider instead of with each partner. And with an ever-growing list of operators entering the mobile space, simplified interoperability is key for operators to realize subscriber satisfaction and revenue gains.

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Syniverse NEXTSM SMS Open Connectivity Hub

The Syniverse SMS Open Connectivity (SMS-OC) Hub helps operators efficiently and reliably exchange SMS messages with other operators, and therefore provide a large messaging reach for their subscribers. In addition to message exchange, this service can provide a majority of the services performed by an operators roaming services group, reducing operating costs. Some of these services are: Traditional operator certification (TADIG and IREG testing) Termination fee and agreement establishment Clearing and settlement of messages exchanged between operators

Syniverse has a strong legacy in the messaging interoperability business, currently reaching more than 770 operators across the globe and processing over 1.3 billion SMS messages per day. Syniverse is unique in its ability to operate in all segments of the value chain, including managing the complex operator interfaces, relationships, distribution, billing, reporting, analytics, clearing and settlement. The Syniverse Advanced Messaging Hub also supports mobile instant messaging (MIM) interoperability and a bridging capability that connects various network domain (2G, 2.5G, 3G and 4G) messaging services. Syniverse SMS-OC provides a single contract and connection to reach all of an operators partners. It is the most economical and extensible solution regardless of an operators size or network coverage. The managed service arrangement eliminates the costly need to over engineer the network and the complex task of managing roaming operator partners, which requires a cross-functional group to manage roaming, SMS interworking services, and complex billing and settlement relationships. Syniverse SMS-OC provides the most effective solution to support unplanned traffic peaks, simple customer care and a network operation process. About Syniverse Technologies Syniverse Technologies (NYSE:SVR) provides mobile technology for the global telecommunications industry, making it possible for disparate data, messaging and voice technologies to interoperate anywhere, any time. Serving more than 800 communications companies in over 160 countries, Syniverse offers market-leading solutions that simplify the complexities of roaming, messaging, network interoperability and business intelligence for mobile operators, MSOs, enterprise verticals and emerging mobile providers. For more information, visit www.syniverse.com.
2009 Syniverse Technologies, Inc. All rights reserved under U.S. and international copyright laws. Rev. 12-09

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