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DATA OFFLOAD APPROACHES FOR MOBILE OPERATORS
Improving Network Efficiency And Strengthening Quality Of Service
www.wipro.com
Devaraj Srinivasan
Jayanta Dey
Santhosh Kumar M
Romendra Nath Mukherjee
Table of contents
1. Data Traffic Challenges And The Need For Data Traffic Offload
03
2. Data Traffic Offload Options
04
3. Comparison Of Data Offload Solutions
11
4. Recommendations To Manage Mobile Data Offload
12
5. Conclusion
12
The popularity of video, social media and Internet gaming across a range of new devices such as smartphones and
tablets has created a surge of network data traffic. Device to device connectivity – commonly referred to as M2M – will
give rise to a new universe of applications that will further stress network capacity.
In the next three years alone, data traffic is expected to grow tenfold creating a tremendous capacity crunch for
operators. While data revenues are expected to only double during this period creating a huge monetization gap1.
Therefore, telecom operators need to constantly review their data traffic patterns and implement traffic offloading
mechanisms that can help them manage their network load and capacity more efficiently.
In addition, the rise of OTT players who are capturing a growing share of the value of the data that flows over the
network, combined with declining Telco margins, stipulates that all this should be done in a more cost efficient manner.
This paper describes various data offload strategies and considers the challenges and benefits associated with each of
them.
Data traffic challenges and the need for data traffic offload
Due to the rapid growth of smartphones and tablets, data traffic on the
networks is on the rise and mobile connections are expected to reach the
7.4 billion mark by 2015 — surpassing the global population2. The
popularity of data guzzling applications, social networking, video and online
gaming will further drive data consumption creating tremendous strain on
the networks. Next-generation network deployments promise to deliver
higher bandwidth and speed but they also introduce new challenges for
service providers such as a high cost of deployment and operations. The
cost of delivering data continues to rise more rapidly than revenues, and is
expected to grow seven fold from $53 billion in 2010 to reach $370 billion
(USD) by 2016.3
Some of the levers that operators have at their disposal to better manage
their networks include:
ŸRadio Spectrum Utilization. Spectrum for operators is both limited
as well as expensive. As the number of connected devices continues
to increase, operators need to plan the effective utilization of their
radio resources by offloading data between licensed and unlicensed
spectrum.
ŸControlling CAPEX. To meet the growing data needs of consumers
operators are already investing heavily in upgrading their networks.
03
However, their incremental revenues are not commensurate with
the increase in data traffic. Hence, operators need to focus on core
and access network investments only in those areas that offer the
strongest potential returns.
ŸBackhaul Network Optimization. The increase in data traffic is not
only causing strain to the operator radio access networks, it is also
creating backhaul bottlenecks. As the traffic from wireless devices
continues to increase, operators also need to design and implement
an efficient backhaul system to transport the data from the access to
the core network.
ŸTransactional
Load Management.
With increasing number of
devices, it is important for operators to keep the signaling and
transactional load to a minimum, so that bandwidth is optimized.
In addition, data traffic patterns depend upon the type of device, its form
factor, time of the day, type of application and even the density of users in a
particular location. For devices, the largest data consumption spread is for
3G routers, falling in the range of 1-16 GB per month. Even for PCs, the
variation is large, in the 1-7 GB per month range, followed by tablets at
300-1600 MB per month and mobile phones at 30-230 MB per month,
while M2M average volume traffic is below 10 MB per subscription4. All
these factors combined with the increasing device diversity makes network
capacity planning and load management even more complex. In order to
optimize the usage of the network elements and the traffic flow, mobile
data offload solutions that can enable the optimum utilization of network
resources are required.
Data traffic offload options
There are six different options to offload data from the mobile network at
either the access or the core network level. Each of these options can
co-exist and the operator will have to determine the best option based on
multiple factors such as current infrastructure, customer usage patterns,
associated costs, deployment and maintenance complexities and user
density in a particular location.
Data traffic offload can help operators reduce the traffic on their radio
spectrum lowering the operating load on base stations. It also provides an
opportunity for service providers to charge users for offload solutions such
as small cells, while helping customers reduce their usage costs by
offloading data to alternate networks.
Figure 1 explains the six different approaches that extend across the
unified network access ring and core. Different access network elements
are connected to the access gateway which gets aggregated through
an aggregation box to a unified transport ring. Different core network
elements are connected to the IP MPLS or optical ring through
edge routers.
According to ABI Research, in 2010, about 16% of mobile data was
diverted from mobile networks; this is expected to grow to 48% by 2015.
Since, data offloading can help operators avoid signal choking and revenue
loss, it is emerging as one of the best options to manage network capacity
and load.
A robust data offload solution can provide telecom operators with the
flexibility to control data flow across the network based on traffic patterns,
class of service and type of customers – enabling a better quality of service.
The six different mobile data offload options are
1.
2.
3.
4.
5.
6.
In addition, users can also have the flexibility to control the data traffic that
they wish to offload based on the type of applications, their location or
service type, helping them manage their data allowances better. In the
subsequent sections, we will discuss various data offload solutions.
Wi-Fi Hotspot
LTE Small Cells / Relay nodes
Integrated Femto / Wi-Fi
Direct Tunnel
Internet offload Gateway (IOGW)
M2M Gateway
WLAN
Controller
To Other Unified
Access Network Ring
Unified
Access
Network
Ring
Wi-Fi
Hotspot
AG
AG
Smart Devices,
Tablets, Phones
4G LTE EPC
MME / SGW/ PGW
ER
GSM BTS 3G Node B
LTE eNodeB
Unified
Transport
Ring
ER
GSM Base
Station Controller
PCU
ER
Aggregation
box
ER
Fiber
Ethernet
Microwave
LTE Small Cells /
Relay Node
AG
IP MPLS,
Ethernet,
Optical
Packet Data
Gateway
AAA Radius
Server
MSC
ER
AG
Intergrated
Femto WiFi
M2M Devices
BRAS /
BSER
To Other Unified
Transport Ring
M2M Gateway
SGSN
IOGW
3G Radio
Network Controller
Femto
Gateway
Internet
GGSN
AG - Access Gateway
ER - Edge Router
Figure 1: Mobile Data Offload Options, Source: Wipro Technologies
04
Figure 2 depicts the data flow in a Wi-Fi hotspot solution. Data
offloading can be initiated in two ways. First, it can be accomplished by
the operator based on the type of data flow. Secondly, it can be
initiated by the user to reduce subscriber utilization charges.
The following sections will explain each of the options in detail.
Wi-Fi Hotspot
Wi-Fi is a low cost, easy to install solution that can help operators manage
data traffic growth at reduced costs. The demand for Wi-Fi technology in
mobile networks will continue to grow over the coming years as Tier-1
Telecom vendors upgrade their Wi-Fi portfolio.
The key advantage of Wi-Fi hotspot is that they operate over unlicensed
spectrum. In addition, building Wi-Fi hotspot is easier and cost effective
than large network deployments and upgrades. However, as the coverage
of a Wi-Fi hotspot is limited, its effectiveness depends upon the duration
for which the user remains in the coverage area. The longer a user stays in
Wi-Fi coverage area greater the benefits are of data offload.
The number of Wi-Fi hotspots is increasing across the world and many
enterprises are setting up their own. In addition, a number of operators
have already rolled out Wi-Fi hotspot solutions. For instance AT&T has
forged partnerships with public and private entities to offer Wi-Fi services
across thousands of locations.
WLAN
Controller
To Other Unified
Access Network Ring
Unified
Access
Network
Ring
1
Wi-Fi
Hotspot
AG
AG
Smart Devices,
Tablets, Phones
4G LTE EPC
MME / SGW/ PGW
ER
GSM BTS 3G Node B
LTE eNodeB
Unified
Transport
Ring
ER
GSM Base
Station Controller
PCU
ER
Aggregation
box
ER
Fiber
Ethernet
Microwave
LTE Small Cells /
Relay Node
AG
IP MPLS,
Ethernet,
Optical
Packet Data
Gateway
AAA Radius
Server
MSC
ER
AG
Intergrated
Femto WiFi
M2M Devices
BRAS /
BSER
To Other Unified
Transport Ring
M2M Gateway
SGSN
Femto
Gateway
Internet
GGSN
AG - Access Gateway
ER - Edge Router
Figure 2: Mobile Data Offload Using Wi-Fi Hotspot
05
IOGW
3G Radio
Network Controller
LTE Small Cell and Relay
Nodes Underlay Network
The concept of small cells is similar to Wi-Fi, the only difference is that these
connect to the radio network and provide higher coverage. This works
both on licensed as well as unlicensed spectrum by offloading data traffic
from the core network and saving radio spectrum. These low powered
radio nodes are very useful to offload data in high density and high traffic
areas. Since this solution is deployed and managed by the operator it fits
well with long-term strategy of mobile operators. But it has its own
challenges in terms of installation complexities which can adversely impact
capital and operating expenditures.
An advantage of LTE small cells is that they can be easily deployed with low
skilled workers. But they are in the early stages and not yet ready for mass
deployment.
In Figure 3 gives a view of data flow in a LTE small cell / relay node
deployment. Wi-Fi hotspots and LTE small cells will co-exist to address
selective offload of data from various devices.
WLAN
Controller
To Other Unified
Access Network Ring
Unified
Access
Network
Ring
Wi-Fi
Hotspot
AG
AG
2
Smart Devices,
Tablets, Phones
4G LTE EPC
MME / SGW/ PGW
ER
GSM BTS 3G Node B
LTE eNodeB
Unified
Transport
Ring
ER
GSM Base
Station Controller
PCU
ER
Aggregation
box
ER
Fiber
Ethernet
Microwave
LTE Small Cells /
Relay Node
AG
IP MPLS,
Ethernet,
Optical
Packet Data
Gateway
AAA Radius
Server
MSC
ER
AG
Intergrated
Femto WiFi
M2M Devices
BRAS /
BSER
To Other Unified
Transport Ring
M2M Gateway
SGSN
IOGW
3G Radio
Network Controller
Femto
Gateway
Internet
GGSN
AG - Access Gateway
ER - Edge Router
Figure 3: Mobile Data Offload Using LTE Small Cells and Relay Nodes
06
Integrated Femto and Wi-Fi
Integrated Femto and Wi-Fi will be a solution which will be deployed
indoor in a residential or enterprise environment and outdoor in a metro
environment. This is a hybrid solution that utilizes both small cell and Wi-Fi
hotspot concepts for data offloading. Access points in a residential or
enterprise environment will be managed by consumer or enterprise, while
the WLAN access manager and Femto gateway will be managed either
by the Internet service provider or a mobile operator.
Figure 4 gives an overview of the Integrated Femto and Wi-Fi solution.
Due to its distinct advantages over other solutions, it is expected that
this solution this will become the long term data offload option for
the operators.
WLAN
Controller
To Other Unified
Access Network Ring
Unified
Access
Network
Ring
Wi-Fi
Hotspot
AG
AG
Unified
Transport
Ring
ER
GSM Base
Station Controller
PCU
ER
Aggregation
box
ER
Fiber
Ethernet
Microwave
LTE Small Cells /
Relay Node
Smart Devices,
Tablets, Phones
4G LTE EPC
MME / SGW/ PGW
ER
GSM BTS 3G Node B
LTE eNodeB
AG
IP MPLS,
Ethernet,
Optical
Packet Data
Gateway
AAA Radius
Server
MSC
ER
AG
3
Intergrated
Femto WiFi
M2M Devices
BRAS /
BSER
To Other Unified
Transport Ring
M2M Gateway
SGSN
Femto
Gateway
Internet
GGSN
AG - Access Gateway
ER - Edge Router
Figure 4: Mobile Data Offload Using Integrated Femto and Wi-Fi
07
IOGW
3G Radio
Network Controller
Direct Tunneling
In the direct tunneling method, data flow in a 3G network flows from the
base station to the radio network controller (RNC), GGSN and then
directly to the Internet avoiding the SGSN network element. This implies
that service providers utilizing this offloading solution would require much
lesser SGSN nodes, which would result in reduced capital and operating
expenses.
Figure 5 below explains explains the data flow in the direct tunneling
approach.
WLAN
Controller
To Other Unified
Access Network Ring
Unified
Access
Network
Ring
Wi-Fi
Hotspot
AG
AG
Smart Devices,
Tablets, Phones
4G LTE EPC
MME / SGW/ PGW
ER
GSM BTS 3G Node B
LTE eNodeB
Unified
Transport
Ring
ER
GSM Base
Station Controller
PCU
ER
Aggregation
box
ER
Fiber
Ethernet
Microwave
LTE Small Cells /
Relay Node
AG
IP MPLS,
Ethernet,
Optical
Packet Data
Gateway
AAA Radius
Server
MSC
ER
AG
Intergrated
Femto WiFi
M2M Devices
BRAS /
BSER
To Other Unified
Transport Ring
M2M Gateway
SGSN
3G Radio
Network Controller
Femto
Gateway
4
Internet
GGSN
AG - Access Gateway
IOGW
Direct
Tunnel
ER - Edge Router
Figure 5: Mobile Data Offload Using Direct Tunneling
08
Internet Offload Gateway
This solution provides the option to selectively offload data traffic between
the Radio Network Controller in a 3G network and the SGSN. Revenue
generating applications can be taken through the core network SGSN and
GGSN while non-revenue generating applications such as free videos and
web browsing are offloaded from the RNC to the Internet directly.
By implementing this solution in the network, the operator would not
require to upgrade SGSN/GGSN to support the increased data growth.
Both SGSN and GGSN are offloaded in this solution but the challenge of
restricted radio spectrum continues, since the solution is implemented in
the core network.
Figure 6 Mobile Data Offload Using Internet Offload Gateway gives the
view of data flow in the Internet Offload Gateway solution
WLAN
Controller
To Other Unified
Access Network Ring
Unified
Access
Network
Ring
Wi-Fi
Hotspot
AG
AG
Smart Devices,
Tablets, Phones
4G LTE EPC
MME / SGW/ PGW
ER
GSM BTS 3G Node B
LTE eNodeB
Unified
Transport
Ring
ER
GSM Base
Station Controller
PCU
ER
Aggregation
box
ER
Fiber
Ethernet
Microwave
LTE Small Cells /
Relay Node
AG
IP MPLS,
Ethernet,
Optical
Packet Data
Gateway
AAA Radius
Server
MSC
ER
AG
Intergrated
Femto WiFi
M2M Devices
BRAS /
BSER
To Other Unified
Transport Ring
M2M Gateway
SGSN
IOGW
Femto
Gateway
Internet
GGSN
AG - Access Gateway
ER - Edge Router
Figure 6: Mobile Data Offload Using Internet Offload Gateway (IOGW)
09
5
3G Radio
Network Controller
M2M Gateway
With M2M devices gaining momentum, operators should start looking at
offloading the data content from these devices through a dedicated M2M
gateway to reduce the strain on their core networks and improve
operational efficiency. In this solution, M2M devices get connected to the
unified access network ring either through macro, small cell or W-Fi
wireless networks or through a wired access M2M gateway.
Figure 7 explains the data flow from M2M devices to the internet.
The M2M gateway connects the M2M devices and the operator’s wireless
and wireline networks. The M2M gateway also provides localized value
added services and acts as a proxy for device management. The converged
M2M gateway reduces the signaling load on the core network and helps
manage mobility and session control.
M2M traffic routing capabilities can be built into a service delivery platform
providing intelligent offload decisions based on the traffic patterns. M2M
networks will overlay with the existing 3G/LTE network and enable
operators to selectively offload the data from different devices.
WLAN
Controller
To Other Unified
Access Network Ring
Unified
Access
Network
Ring
Wi-Fi
Hotspot
AG
AG
Smart Devices,
Tablets, Phones
4G LTE EPC
MME / SGW/ PGW
ER
GSM BTS 3G Node B
LTE eNodeB
Unified
Transport
Ring
ER
GSM Base
Station Controller
PCU
ER
Aggregation
box
ER
Fiber
Ethernet
Microwave
LTE Small Cells /
Relay Node
AG
IP MPLS,
Ethernet,
Optical
Packet Data
Gateway
AAA Radius
Server
MSC
ER
AG
Intergrated
Femto WiFi
6
M2M
Gateway
M2M Devices
BRAS /
BSER
To Other Unified
Transport Ring
SGSN
IOGW
3G Radio
Network Controller
Femto
Gateway
Internet
GGSN
AG - Access Gateway
ER - Edge Router
Figure 7: Mobile Data Offload using M2M Gateway
10
Comparison of data offload
solutions
Operators can chose and deploy one or more of the data offload options
based on the data traffic growth, subscriber base and the time frame of
deployment. Figure 8 provides an overview of the advantages and
challenges in each of the data offload options.
DATA OFFLOAD
OPTIONS
WiFi Hotspot
ADVANTAGES
w Usage of unlicensed spectrum
w Marketing tool to promote
additional business
CHALLENGES
w Limited coverage, interference
management and coverage
OPERATOR BENEFITS
w Selective data offloads
w Lower setup amd
w Security challenges
Maintenance costs
w Low Power consumption
LTE Small cells
and Relay Nodes
w Increases coverage and capacity
w Easy to install and manage
w Low Power consumption
w One box for both WiFi and
Femto
Integrated Femto
and WiFi
w Increases coverage and
capacity
w Spectrum scarcity to support
many devices
w Interference migration
w Security
w Integration challenges
w Spectrum scarcity
w Interference Management
w Security
w Lower cost of deployment
and maintenance
w Flat architecture. Direct
Direct Tunneling
access to the core network
from core network
w No additional management
w Only SGSN is offloaded.
GCSN still carries the traffic
w Lower Integration costs
w Lower setup and
Maintenance costs
w Faster deployment
w
w
w
w
Lower Opex and Capex
Lower power consumption
Easy to install and manage
Improved Service
Performance
w No additional capex and
network devices
w Spectrum scarcity to support
many devices
system
w Operator can control
selective data to offload
Internet offload
Gateway
w Need fewer core network to
support data growth
w Addition on new boxes &
management software
w Lower Capex and Opex
w Selective offload of data
w Integration costs to support
LI and Charging
w Spectrum scarcity to
support many devices
w Easy to setup
w Leverages existing access
network system
M2M Gateway
w Gets connected either on
WiFi Macro network
w Reduces interferences
w Management of multiple
devices on the network
w Security features across
devices
w Overlay of M2M network
reduces signaling load,
efficient management of
data exchanges
w Bandwidth and traffic
management
w Reduced cost of operation
and capex
Figure 8: A comparative analysis of the various data offload options, Source: Wipro Technologies
11
Recommendations to manage
mobile data offload
Service providers can select any option or a combination of options to
offload data and reduce the strain on access networks depending upon the
specific challenges in radio access, backhaul and core network.
Availability of spectrum, capacity and in-building coverage are the typical
challenges faced by the operators that offloading solutions can help
address. However, appropriate offloading strategies would depend upon
operators priorities, expansion plans and many other factors. Some
solutions that operators can evaluate include:
ŸShort Term Solution. Deployment of Wi-Fi hotspots as they are
commercially available, cost effective and easy to manage. However,
as it is not a carrier grade solution and has limited coverage, it can only
be utilized as a supplementary solution.
ŸMedium Term solution. Deployment of LTE small cells as a carrier
grade option in the licensed spectrum. A well-planned small cell
deployment can prove effective in managing data growth, providing a
long-term data offloading solution.
ŸPotential Long-Term Solution. Deployment of an integrated, hybrid
Conclusion
It is quite evident that service providers are struggling to manage the data
traffic explosion. There are already many commercially available offloading
options such as Wi-Fi offload, Internet offload gateway and direct tunneling
that can help address the immediate needs of the operators.
However, data traffic is expected to continue to grow and to manage this
growth efficiently, it is extremely important that operators start evaluating
their capacity and networking requirements now. Operators should also
start planning for network upgrades, and develop a roadmap for
deployment and roll-out of LTE small cells / relay nodes and integrated
Femto Wi-Fi solutions to address their medium to long-term needs. As the
number of M2M devices is expected to skyrocket in the coming years, it
would be ideal for operators to also plan for M2M gateway, an overlay
network to offload the data traffic.
Service providers must also note that different types of offload solutions
will continue to co-exist, therefore they need to carefully evaluate each of
these options, or a combination of these based on their requirements,
customer demographics and business objectives. A successful offload
strategy will not only help operators minimize capital and operating
expenditures, but also heighten quality of service while improving customer
experience.
Femto/Wi-Fi solution will utilize both licensed and unlicensed
spectrum to address the capacity issues. However, it is still in the
development stage. Operators can explore this as a potential
solution for the future.
In addition to the above mentioned data offload strategies; operators must
also look at alternative efficiency measures to improve their network
performance and management of data traffic. For instance, introducing
data analytic engines in the core network and building intelligence for local
break out of data traffic will help ease data traffic flows within the cities and
improve efficient routing. Migrating to an intelligent core network with
deep packet inspection and packet routing capabilities will help understand
customer behavior, enable differentiated services and help improve
customer experience.
While, introduction of multicast system- overlaying with existing 3G/4G
systems will help manage the data traffic efficiently.
Apart from the technical offload solutions implementation, it is also very
critical from a data monetization perspective to introduce class of service,
pay per use models, manage connection speed and download capacity
based on the application type and subscription fee.
12
Glossary
OTT: Over The Top
M2M: Machine To Machine
GGSN: Gateway GPRS Support Node
SGSN: Serving GPRS Support Node
IOGW: Internet offload Gateway
RNC: Radio Network Controller
3G: 3rd Generation
LTE: Long Term Evolution/ 4GLTE
CAPEX: Capital Expenditure
OPEX: Operating Expenditure
References / Citations
1. Ericsson report
2. computerweekly.com/news/2240105255/Smartphones-and-tablets-drive-mobile-data-traffic-up-23-says-Gartner
3. http://www.juniperresearch.com/viewpressrelease.php?pr=254
http://www.ericsson.com/res/docs/2012/traffic_and_market_report_june_2012.pdf
4. http://insaviewpoint.blogspot.in/
13
About the author
Devaraj Srinivasan is the General Manager & Head of Telecom Technology & Strategy in Wipro's Global Media and Telecom business unit. Dev has been
working in the IT & Telecom Industry for more than 24 years. Dev has performed various technology and business roles in Wipro's Telecom Engineering
group and has worked with leading telecom equipment vendors across the world. His areas of interest are broadband wireless technologies, service
management and wireless backhaul solutions.
Jayanta Dey is currently Vice President for Wipro's telecom equipment vendor business unit where he heads the Consulting, Solutions and Practice unit.
Jayanta has over 23 years of experience in the telecommunication industry. He is involved in providing advisory services to various telecom clients on their
product strategy and roadmap, process optimization, strategy for service roll out and on innovative out-sourcing/partnerships models. Jayanta holds a BE
(Hons) Electronics Engineering from BITS Pilani and a MBA from North Eastern University Boston.
Santhosh Kumar M is as a Technology Consultant in Wipro's Global Media and Telecom business unit. In this role he is responsible for re-badging deals and
Telecom partner engagement programs. He has over 13 years of experience in IT & Product Engineering domain in various technical & business roles, across
service providers & telecom equipment vendors.
Romendra Nath Mukherjee is currently working as a business analyst in Wipro's Global Media and Telecom business unit. In this role he is responsible for
analyzing Telecom technology and strategy. Prior to this he was working as a client relationship representative, front-ending sales in Utility domain for Wipro
Infotech.
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