sms network handbook final.6.23.09

8/14/2019 Sms Network Handbook Final.6.23.09

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www.tekelec.com | 1

SMS Network ApplicationHandbook

The exclusive guide for optimizingand securing SMS infrastructure

Optimize Your SMS Architecture Today


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Tekelec, a global leader in core multimedia session control, mobile messaging and

network intelligence, ensures scalable, secure and highly available communications.

The companys market-leading signaling solutions enable the interworking o

dierent network applications, technologies and protocols, providing a smooth

transition to next-generation networks. Tekelec has more than 20 oces around the

world serving customers in more than 100 countries, with corporate headquarters

located near Research Triangle Park in Morrisville, N.C., U.S.A.

For more inormation please call

888.628.5521 or +1.919.460.5500

Visit our web site at www.tklc.com

The inormation presented is or demonstration purposes only and is not intended to represent any particularcompany. Any similarities are purely coincidental. Actual perormance results depend on particular networkcongurations, capacity and other technical requirements.


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Introduction

When short message service (SMS) debuted more

than 15 years ago, ew could have guessed that a

160-character message exchanged between mobilesubscribers was destined or such great success.

According to Portio Research estimates, global texters

sent nearly 3.5 trillion messages in 2008. To put that

gure in perspective, that is roughly ve-hundred times

the global population. And, all those messages are

creating impressive returns; SMS generates more

revenue than all other data services combined (Frost& Sullivan, 2008). While operators have welcomed this

dramatic growth, they are beginning to discover that

success has a downside.

www.tekelec.com | 3

Tbl o Contnt

Introduction 3

Revenues Fall Behind Trac Growth 4

Networks Under Attack 4

Increasing Trac Loads 5

The Limits o Legacy SMSCs 5

A New SMS Network Model 7

Use Case 1: Optimizing the Existing SMS Inrastructure 10

Use Case 2: Managing Application-Originated Trac 12

Use Case 3: Protecting the SMS Business 14

Use Case 4: Delivering Mobile Advertising 17

Use Case 5: Oering SMS Personalized Services 19

Conclusion 21

About Tekelec 22

Appendix: Acronyms Used in this Document 23


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Rnus Fall Bind Trac Growt

SMS message volume is orecasted to expand at

a compound annual growth rate (CAGR) o 15.6

percent rom 2007 to 2011, but SMS revenues areonly expected to grow at a CAGR o 5.9 percent over

that same period (Frost & Sullivan, 2008). That SMS

trac growth is not translating into comparable

revenues is largely due to commoditization. Operators

have rolled out bundled and fat-rate billing plans

to maintain a competitive edge. That strategy has

boosted SMS usage but also has driven down theaverage revenue per user (ARPU).

Ntworks Undr Attack

The enthusiastic response to mobile messaging has

attracted the unwanted notice o raudsters and

opportunists. Advances in messaging and mobile

devices have created a ertile new rontier or

perpetrators o spam, malware and viruses. In March

o 2008, a tidal wave o SMS spam hit nearly hal o

Chinas mobile users. Seven online advertising rms

were able to launch unwanted junk messages to

more than 200 million subscribers. And, or some

Indian operators, 30 percent o trac is spam.

Once considered purely a nuisance, raud is evolving

into a dangerous threat to operators and subscribers.

Attackers are becoming more sophisticated and have

learned to monetize mobile spam. Users are beinglured into divulging sensitive personal data and

duped by raudulent schemes. Mobile messaging

abuse directly impacts operators OPEX and CAPEX.

It consumes valuable network resources, decreases

network eciency and increases subscriber churn.

4 | SMS Network Application Handbook


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Incrasing Trac Loads

As the global SMS market evolves, it is expanding

beyond simple person-to-person (P2P) text messaging

to person-to-application (P2A), application-to-person(A2P) and even machine-to-machine (M2M) services.

The growing use o SMS or applications beyond

simple texting is increasing trac loads, creating

network bottlenecks and crippling SMS service.

T Limits o Lgacy SMSCs

The unbounded growth o the SMS market is

exceeding the technological capability and capacity

o rst-generation short message service centers (SMSCs).The current SMS delivery architecture is built on legacy

SMSCs, which support an antiquated store-and-orward

delivery model. Operators have pushed these systems to

their limit. They have allen behind in cost, perormance

and operating eciency. The SMS message is routed

initially to the SMSC, where it is stored and then orwarded

to its recipient. Since 85 to 95 percent o SMS messagescan now be delivered on the rst attempt, most o the

initial processing that the SMSC does to store, query and

orward messages is largely wasted. The architecture

does not scale cost eectively, and the store-and-

orward delivery mode causes latency and ineciencies.

Outdated, hard-coded logic employed by SMSCs does

not easily support new delivery models and the creationo advanced messaging services.

www.tekelec.com | 5


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Mobile Network

SMSApplication

SMSApplication

Low-speed SS7 Links

Poor OAM capabilities

Dicult to operate

Limited scalability

Unnecessary store and forward of all trac

Stats

CDRs

OAM

WAN

SMSC SMSCSMPPGateway

Figur 1: Lgacy SMSC Ntwork Arcitctur



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A Nw SMS Ntwork Modl

Tekelec developed its SMS Network solution to help

operators deliver advanced messaging without costly

network over-engineering or complete network

overhaul. With the solution, operators can create a

scalable messaging architecture. The carrier-grade

SMS Network is built with modular components that

replace the traditional SMSC. It provides a new way

or operators to capitalize on their investments; the

solutions products can be deployed in conjunction

with the existing SMSC inrastructure to grow capacityand capabilities incrementally or to create a complete,

end-to-end SMS network.

The unctional components o the SMS Network include:

SMS Router: eatures rst delivery attempt (FDA)

technology, advanced load balancing, throughput

controls, and rules-based routing to deliver messages

eciently to their intended destination. Flexible

routing paths expand the ways in which SMS

messages are sent and received. An open interace

enables operators to quickly introduce new SMS-based

services developed by Tekelec or third parties.

SMS Store: provides fexible message interception,

handling, and FDA with storage in the event that the

message cannot or should not be delivered immediately.

SMS Firewall: supports advanced ltering and

screening to prevent unwanted SMS messages and

provides overload protection rom denial o service

attacks originating in signaling system 7 (SS7) and

Internet protocol (IP) networks. Application Gateway: intelligently distributes application-

originated and terminated trac to/rom SMS routers

and legacy SMSCs to optimize application connections.

Advertising Insertion Center: enhances SMS messages

with relevant, personalized advertising such as sponsored

text messages or voicemail message enrichment.

SMS Personalized Services: provides a portolio o

advanced SMS services that can be customized by the

subscriber to generate new revenue and increase loyalty.

www.tekelec.com | 7


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SubscriberDatabase

SMSNetwork

MessageScreening

PersonalizedServices

AdInsertion

Security

Charging

Store and Forward

Message Routing

ApplicationManagementand Control

MT AT

SMSApplication

MO MT MO AO AT AO

SMSApplication

Stats

SNMP

OAM

CDRs

Logs

NMS

Prepaid

Foreign

SMSCSMSC

Figur 2: T SMS Ntwork Conct and Functionality



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This handbook presents the toughest inrastructure

challenges and demonstrates how Tekelecs SMS

Network solution is helping operators address them.

OptimizingtheExistingSMSInfrastructure ManagingApplication-OriginatedTrac

ProtectingtheSMSBusiness

DeliveringMobileAdvertising

OeringSMSPersonalizedServices

www.tekelec.com | 9


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Use Case 1:

OpTIMIzING The exISTING

SMS INFRASTRUCTURe

Problm:

Operator As legacy SMSC inrastructure, which uses

store-and-orward technology, is being strained by

increasing volumes o SMS trac. All o the home

network or local messaging trac must pass through

the SMSCs, even though only approximately 15 percent

o that trac actually needs to be stored or retry later.That means that most o the initial processing that the

SMSC does to store, query and orward messages is

largely unnecessary.

To improve network perormance and increase overall

network capacity, Operator A needs to:

ReduceSMSCloadsbydecreasingthenumberofmessages that have to be stored; and

Reducecostsbyimprovingmessage-deliveryeciency.

Operator A could solve these challenges by adding

additional message centers, but thats not a cost-

eective approach.

solution:A smarter method is to deploy Tekelecs SMS Router.

The solutions FDA capability reduces the need to

store and orward messages, easing the load on

SMSCs and improving overall network perormance.

The SMS Routers versatile and fexible routing rules

enable trac to be routed on virtually any SMS messageparameter, including: sender; recipient; SMSC address;

data coding scheme (DCS); mobile switching center

(MSC); and message content. The SMS Routers SS7

routing capabilities are based on operator-dened rules

that route an incoming message to any destination.

Messages can originate rom SS7 networks via an

SMSC, MSC or signal transer point (STP), or roman IP connection via an SMS application or inter-

carrier gateway.


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www.tekelec.com | 11

The SMS Router delivers the mobile-originated (MO)

message as soon as it arrives bypassing the SMSC.

Placing the SMS Routers closer to the mobile switching

centers balances the signaling load on the network. I

the FDA cannot be completed, the message is sent to

the SMSC or traditional store and orward with retry

at a later time.

SMS

Router SMSC

SMSC

MO

MT

Figur 3: First Dliry Attmt (FDA) ia SMS Routr

Bnft:

TheSMSCloadisreducedby85to95percent

depending on the FDA success ratio virtually

eliminating capacity bottlenecks.

ThegeographicallydistributedSMSRouter

architecture balances the signaling load by

placing the SMS Routers closer to the MSC.

ByfreeingupcapacityontheSMSCs,theSMS

Routers can help the operator delay the purchase

o additional legacy SMSC capacity, or

SomeoftheexistingSMSCscanbedownsizedor decommissioned, creating a much smaller

ootprint, reducing power requirements and

simpliying overall operations.


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Use Case 2:

MANAGING AppLICATION-ORIGINATeD TRAFFIC

Problm:

Operator Bs SMSC inrastructure is being overloaded

by increasing trac loads generated rom applications,

paralyzing the networks capacity and crippling the

overall SMS service. Legacy SMSCs were originally

designed to handle the relatively predictable trac

created by simple texting, not the spikes created by

bulk-load generators used or marketing campaigns.

All o the trac must pass through SMSCs. Once an

SMSC reaches ull capacity, it cannot process any more

text messages. This situation results in subscribers and

applications receiving error messages, which can cause

message retransmissions that urther compound the

overload problem.

Operator B needs to solve two challenges to get SMS

service back on track:

Costeectivelymanagethelargevolumesoftrac

generated by applications; and

Maintainqualityofservice(QoS)duringsurgesin

messaging trac.

solution:

One possible solution is or Operator B to deploy more

SMSCs to essentially over-engineer the network

to handle the trac spikes. But, thats a costly and

inecient approach.

A better approach is to deploy Tekelecs SMS Store to

handle the trac surges generated by applications.

ThesolutionsenhancedQoScapabilityallocates

network resources or dierent services. Operators

can dynamically throttle low-priority SMS trac to

deliver committed bandwidth or higher-priority

applications like bulk messaging.


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Bnft:

Using the SMS Store, Operator B is able to:

ImprovenetworkperformanceandapplicationQoS;

ReduceSMSCoverloadandbottlenecks;and Enhancemessageroutingeciency.

SMS

Store SMSC

SMSC

AO

MT

SMS Application

AO trac is delivered

through the SMS Store

Figur 4: Using t SMS Stor to Manag

AlicationOriginatd Trac


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Use Case 3:

pROTeCTING The SMS BUSINeSS

Problm:

Like many SMS providers, Operator Cs network and

subscribers are being threatened by increasing levels o

unsolicited messages such as spoong, aking, fooding,

phishing and attacks rom IP and SS7 networks.

With no way to screen incoming messages or validity,

Operator C has only two options to thwart SMS attacks.

The rst line o deense is to shut down SMS service to

the aected subscribers, but even taking that drastic

measure does not totally oil attacks. Foreign SMSC

emulators can still deliver raudulent messages to

Operator Cs subscribers. To counter that measure,

Operator C must shut down international SS7 links.

Neither option is viable since each negatively impacts

QoS,subscribersatisfactionandoperatorrevenues.

Spooers, pretending to be mobile subscribers roaming

in another country, are bypassing Operator Cs MSC

authentication processes. This allows spooers to send

messages that appear to be rom someone else.

Operator C has several dicult problems to solve,

including how to:

Blockunsolicitedand,insomecases,potentially

dangerous messages rom the network and,

ultimately, the subscribers;

Protectthenetworkfrompossibleoodingwhen

large numbers o messages are sent to one or more

locations; and,

Guardthenetworkfromhostiledenial-of-service

(DoS) attacks.


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Figur 5: protcting t SMS Ntwork, Subscribrs and Businss rom MO Soofng Attacks

Foreign SS7

SS7 Network

HomeSubscriber? SS7

MO

1SMS

Firewall

LoggedMessages

KilledMessages

SS7MO

2

HLRQuery

3

SS7

MO

4

Foreign Network

Home Mobile Network

?

SMSC


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solution:

Tekelec created the SMS Firewall specically to meet

these challenges. The SMS Firewall provides advanced

ltering and screening to prevent unwanted SMS

messages rom entering the network. Transparent

home routing enables the operator to protect

subscribers rom unwanted messages, regardless

o the source. With the systems user-denable SS7

and IP routing and screening capabilities, Operator C

can lter any incoming SMS message.

In addition to the basic SS7-level detection and ltering

unctions, the SMS Firewall also provides protection

with optional, modular lters that provide deep SMS

message inspection capabilities, such as content

ltering, anti-fooding and pattern detection.

To protect the network and its subscribers rom MO

spoong attacks, the SMS Firewall intercepts the MOmessage, generated by a roaming subscriber o the

home mobile network. The SMS Firewall compares

the MSC location rom which the message originated

to the MSC location stored in the subscribers prole,

which is housed in the home location register (HLR). I the

comparison shows two dierent locations, the message

is considered to be an MO-spooed message. It can be

blocked or simply logged and then orwarded to the

SMS network or delivery.

Bnft:

Protectsthenetworkfrompotentialooding,

spoong and spam attacks;

Securesthenetworkwithcongurablescreening

parameters;

Protectsrevenuebypreventingcontentproviders

rom bypassing network channels; and,

Reduceschurnbyimprovingsubscribersatisfaction.


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Use Case 4:

DeLIveRING MOBILe ADveRTISING

Problm:

Operator D aces a problem common to many operators

today; the popularity o SMS messaging is increasing, but

the revenue per SMS is not growing at a proportional

rate. To remain competitive, Operator D introduced a

fat-rate billing plan or SMS messaging, which has

reduced the average revenue per subscriber.

Operator Ds challenge: How to leverage the existing

SMS architecture to generate new revenue?

solution:

Operator D can tap into the lucrative mobile advertising

market with Tekelecs SMS Network solution. With the

solutions Advertising Insertion Center, Operator D

can create advertising programs by inserting text,

such as sponsored text, voicemail enrichment or sports

and news fashes, into mobile-terminated (MT) SMS

messages. The content can be added beore (prologue)

and ater (epilogue) the existing message. To create a

clear and consistent end-user experience, the Advertising

Insertion Center application congures a system-wide

text separator to dierentiate between original and

inserted text. And, by using subscriber proles, the

content can be targeted to match individual preerences

and behavior.

The Advertising Insertion Center receives the MT

message rom the home or oreign SMSC (using the

systems home-routing capabilities). It examines thecontents o the incoming message to determine i

text needs to be inserted, and, i so, selects the text

to be applied rom a pool o active text messages or

a third-party ad server. The message is transparently

orwarded to the destination, and acknowledgement

o successul delivery is then sent to the originating

SMSC. I delivery is unsuccessul, the SMSC or TekelecsSMS Store perorms a retry based on its delivery

schedule. On each retry, the sequence repeats, and


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the text insertion is perormed again. The latest

inormation is inserted in every delivery attempt.

This ensures that a message submitted the previous

day will have the current days news inserted on retry.

Bnft:

With Tekelecs Advertising Insertion Center, Operator D

is able to:

Enhancesubscriberloyaltywithrelevantandtargetedcampaigns that add value to their experience;

Expandmarketopportunity;and,

LeveragetheexistingSMSinfrastructuretogenerate

new revenue.

AO

MO

MT

Foreign

SMSC

SMSApplication

Flat File Ad Server

HTTP

SS7 NetworkSS7 Network

MSC

SMS Store

MTSS7

MTSS7

SMSCSMSC

AdvertisingInsertion

Center

Figur 6: Incras Rnus

wit Mobil Adrtising


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Use Case 5:

OFFeRING SMS peRSONALIzeD SeRvICeS

Problm:

Operator Es SMS protability is declining. Subscribers

have moved to other operators with more innovative

messaging programs. To remain competitive,

Operator E introduced a fat-rate billing plan or

SMS messaging, which has increased customer

loyalty but has reduced ARPU.

Operator E aces a dual challenge:

IncreaseARPU;and

Reducesubscriberchurn.

solution:

With Tekelecs innovative SMS Personalized Services,

Operator E can enrich SMS service to create more

communication choices or subscribers that increase

usage and interest.

The portolio o advanced SMS services includes:

SMScopy:sendsacopyoftheSMSmessageto

another destination.

SMSforward:divertsincomingtextmessagesto

an alternate mobile destination.

Black-whitelist:allowssubscriberstopersonally

screen and block incoming messages. Ideal or

parental control.

SMSdistributionlist:allowssubscriberstocreate

in-network distribution lists to send text messages

to groups o riends or co-workers.


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SS7 NetworkSS7 Network

MSC

SMS

Personalized

Services

MT

SS7

AO

MO

MT

MT

SS7

ForeignSMSC

SMSApplication

Service Data

SMS Store

SMSC

Bnft:

With Tekelecs SMS Personalized Services, Operator E can:

Increaserevenueswithinnovative,value-added

communication choices that boost subscriber

interest and usage; and

Figur 7: Incras Subscribr Usag, Intrst, and Loyalty wit SMS prsonalid Srics

Reducesubscriberchurnbyenhancingbrand

appeal and improving subscriber satisaction

and loyalty.


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Concluion

The messaging market continues to grow and represents

a very protable piece o mobile operators revenue

opportunity. I industry projections are on the mark,

SMS trac and revenues will continue to expand or the

oreseeable uture, though pricing pressures will have

an impact on the protability o the SMS business.

Legacy SMSCs are no longer meeting operator needs.

Operators need to deploy a more cost-eective SMS

network architecture to maintain protability while

handling increasing SMS trac loads and rolling outadvanced messaging applications.

Tekelecs SMS Network solution solves legacy

SMSC challenges, enabling operators to fexibly

and economically meet the demands o the

rapidly changing SMS market. It reduces the cost

o operation by maximizing network resources,

simpliying administration, and enabling providers

to grow capacity and unctionality at their own

pace. Employing a modular approach, operators

can adapt the network as their needs evolve and

technology advances.


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about Tklc

Tekelec, a global leader in core multimedia session

control, mobile messaging and network intelligence,

ensures scalable, secure and highly available

communications. The companys market-leading

signaling solutions enable the interworking o dierent

network applications, technologies and protocols,

providing a smooth transition to next-generation

networks. Tekelec has more than 20 oces around the

world serving customers in more than 100 countries,

with corporate headquarters located near Research

Triangle Park in Morrisville, N.C., U.S.A. For more

inormation, please visit www.tklc.com.


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Andi: Acronyms usd in tis documnt

AO Application originated

AT Application terminated

A2A Application to applicationARPU Average revenue per user

CAGR Compound annual growth rate

DCS Data coding scheme

DoS Denial o service

FDA First delivery attempt

GPRS General packet radio service

HLR Home location registerIP Internet protocol

M2M Machine to machine

MSC Mobile switching center

MO Mobile originated

MT Mobile terminatedOAM Operations, administration and maintenance

P2A Person to application

P2P Person to person

QoS Qualityofservice

SGSN Serving GPRS support node

SMS Short message service

SMSC Short message service centerSS7 Signaling system 7

STP Signal transer point


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Cororat inquiris:

Tekelec

5200 Paramount Parkway

Morrisville, North Carolina 27560 (USA)

Phone: 888.628.5521Phone: +1.919.460.5500

FAX: +1.919.460.0877

euro, Middl east and Arica inquiris:

Tekelec

Katherine House

85 The High Street

Egham, SurreyTW20 9HF

United Kingdom

Phone: +44.1784.437000

FAX: +44.1784.477121

Asiapaciic inquiris:

Tekelec Singapore Pte Ltd

15 Hoe Chiang Road

#06-06 Tower 15

Singapore 089316Phone: +65.6796.2288

FAX: +65.6796.2299

Caribban and Latin Amrica inquiris:

Tekelec Caribbean & Latin America (CALA)

5200 Paramount Parkway

Morrisville, North Carolina 27560 (USA)

Phone: +1.919.460.5500FAX: +1.919.460.0877

All sales related inquiries contact: [email protected]

www.tklc.com

2009 Tekelec. All rights reserved. Printed in U.S.A. TKLC-HB-002-NA-05-2009

sms network handbook final.6.23.09

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