Commercial Group

Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 1

ASMS-TF Commercial Group

Date: April 2001 Source: Commercial Group Interim Rapporteur Title: Temporary Commercial Requirements Agenda item: Document for:

Decision X Discussion X Information

This document contains the temporary Commercial Requirements to be drafted during the activity of the Commercial Group of ASMS-TF.

This document was updated with the various contributions received from different sources in order to finalise the drafting of its content. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 2

Internal Report of the Commercial Group of the Advanced Satellite Mobile System Task Force

COMMERCIAL REQUIREMENTS FOR FUTURE MOBILE SATELLITE SYSTEMS Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 3

Table of Contents

1 Introduction...... 10 1.1 Intellectual property rights...... 10 1.2 Scope of the document...... 10 1.3 Definitions, symbols and abbreviations...... 12 1.3.1 Definitions...... 12 1.3.2 Symbols...... 12 1.3.3 Abbreviations...... 12 1.4 Reference Documents...... 12 2 The Role of the Mobile Satellite Systems...... 13 2.1 Terrestrial...... 13 2.1.1 Fixed...... 13 2.1.2 Mobile in Europe...... 13 2.1.2.1 GSM, GPRS, EDGE, T-UMTS networks...... 13 2.1.2.2 Terrestrial broadcasting networks...... 13 2.1.3 Mobile elsewhere (not Europe)...... 13 2.1.3.1 …...... 13 2.2 Lessons learnt from the past...... 13 2.3 Satellite...... 14 2.3.1 Fixed...... 14 2.3.2 Mobile in Europe...... 14 2.3.3 Mobile elsewhere (not in Europe)...... 14 2.4 Markets...... 15 2.4.1 Non-broadcasting...... 15 2.5 Positioning in the mobile communications infrastructure...... 18 2.5.1 Positioning for non-broadcasting satellite networks...... 18 2.5.2 Positioning for broadcasting satellite networks...... 27 2.5.3 Geographical requirements...... 30 2.5.3.1 Regional needs for mobile services...... 30 2.5.3.2 Regional positioning of the satellite infrastructure...... 30 2.6 Users and Applications...... 30 3 Market Requirements...... 32 3.1 User requirements...... 32 3.1.1 User terminals...... 32 3.1.1.1 Introduction...... 32 3.1.1.2 Description of terminal types...... 34 3.1.1.3 Broadcasting...... 39 3.1.2 User interfaces...... 40 3.1.2.1 Non-broadcasting...... 40 3.1.2.2 Broadcasting...... 41 3.1.3 Applications...... 42 3.1.3.1 Non-broadcasting...... 42 3.1.3.2 Broadcasting...... 45 Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 4

3.1.4 Pricing requirements...... 48 3.1.4.1 Non-broadcasting...... 48 3.1.4.2 Broadcasting...... 49 3.2 Service requirements...... 50 3.2.1 Non –broadcasting...... 50 3.2.1.1 Service principles...... 50 3.2.1.2 Service capabilities...... 51 3.2.1.3 Service architecture...... 52 3.2.1.4 Telecommunication services and applications...... 53 3.2.1.5 Location based services...... 56 3.2.1.6 S-UMTS services as a complement to T-UMTS services...... 56 3.2.2 Broadcasting...... 57 3.3 Operators requirements...... 58 3.3.1 General...... 58 3.3.2 Infrastructure operators...... 60 3.3.2.1 Inter-working with PSTN networks...... 60 3.3.2.2 S- UMTS inter-working requirements with GSM (also possibly inserted as paragraph 2.3.5, at the end, as general requirement)...... 62 3.3.2.3 S-UMTS Operator requirements for data networks (Can stay as PARA 2.3.1, GENERAL, provided a) stays as 2.3.5)...... 64 3.3.3 Service operators...... 70 3.3.4 Application operator...... 73 3.3.4.1 Non-broadcasting...... 73 3.3.4.2 Broadcasting...... 73 4 Market Sizing...... 76 5 The Mobile Satellite Business Model...... 78 5.1 General introduction...... 78 5.1.1 Future Generation Mobile Satellite - Value Chain & Business Model...... 79 5.1.1.1 Value chain...... 79 5.1.1.2 Business model...... 82 5.2 Public interest markets...... 84 5.2.1 Traffic Model...... 84 5.2.2 Business Model...... 84 5.2.3 Summary...... 84 5.3 Mass markets...... 84 5.3.1 Traffic Model...... 84 5.3.1.1 Broadcasting-Satellite Networks...... 84 5.3.2 Business Model...... 86 5.3.2.1 Broadcasting-satellite...... 89 5.3.3 Summary...... 94 5.3.3.1 Broadcasting-satellite...... 94 5.4 Niche markets...... 95 5.4.1 Traffic Model...... 95 5.4.2 Business Model...... 95 Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 5

5.4.2.1 Broadcasting satellite systems...... 96 5.4.3 Summary...... 98 5.4.3.1 Broadcasting-satellite systems...... 98 6 History...... 101 Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 6

Table of Figures

Figure 1: MSS User Projections (Source: OVUM)...... 19 Figure 2: Breakdown of Medium Market Projections (Source : OVUM)...... 19 Figure 3: Breakdown of High Market Projections (Source : OVUM)...... 20 Figure 4: Breakdown of Market Projections (Source : OVUM)...... 20 Figure 5: Probable availability of S-UMTS and T-UMTS/GPRS...... 22 Figure 6: The role of S-UMTS as an integral part of the UMTS network (UMTS Forum)...... 23 Figure 7: Coverage extension...... 24 Figure 8: Coverage completion, umbrella cell...... 25 Figure 9: Coverage completion...... 26 Figure 10: Rapid implementation of combined S/T-UMTS...... 27 Figure 11: Disaster-proof availability...... 28 Figure 12: Dynamic capacity allocation...... 29 Figure 13: Overview of Co-operating Networks...... 30 Figure 14: Services per network...... 31 Figure 15: Possible integration at the services level...... 32 Figure 16: Markets and applications mapping...... 34 Figure 17: Example of handheld terminals...... 37 Figure 18: Example of a transportable S-UMTS terminal...... 38 Figure 19: Example of a vehicular terminal...... 40 Figure 20: Type of terminals for broadcasting services and corresponding characteristics....42 Figure 21: Description of 3G devices (source UMTS Forum)...... 43 Figure 22: User interfaces for broadcasting services...... 44 Figure 23: Main categories of applications in the 3G environments...... 45 Figure 24: Applications that represent the majority of the near-term 3G demand...... 47 Figure 25: Basic implementation of applications in network service modes...... 49 Figure 26: Evolution of mobile applications...... 50 Figure 27: Pricing requirements for broadcasting services...... 52 Figure 28: Service architecture...... 55 Figure 29: Basic telecommunication services supported by a PLMN...... 57 Figure 30: Service requirements for broadcasting...... 60 Figure 31: Typical Example for Radio Multiplexes...... 61 Figure 32: The value chain is changing (extracted from UMTS Forum presentation)...... 62 Figure 33: PSTN to S-UMTS Gateway Function...... 63 Figure 34: PSTN to S-UMTS Access Function...... 64 Figure 35: S-UMTS architecture for data services...... 69 Figure 36: Service operator positioning (source UMTS Forum)...... 73 Figure 37: Example of a Portal for different applications (UMTS Forum)...... 74 Figure 38: Forecasted evolution of Mobile Portals (source UMTS Forum)...... 75 Figure 39: S-UMTS Traffic Volumes (Source : UMTS Forum)...... 80 Figure 40: 3GPP Business Model...... 81 Figure 41: Example of generic value chain...... 83 Figure 42: Example of enterprise model...... 83 Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 7

Figure 43: Future mobile satellite (FMS) systems enterprise model...... 84 Figure 44: The business chain (source UMTS Forum)...... 89 Figure 45: Tomorrow's business model (source ESA study)...... 90 Figure 46: Partnership model: UMTS and Internet business roles maintained via co-operation (source UMTS Forum)...... 90 Figure 47: Ownership model: UMTS and Internet business roles in one ownership (source UMTS Forum)...... 91 Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 8

1 Introduction

1.1 Intellectual property rights

[Source : CG Interim Rapporteur]

IPRs essential or potentially essential to the present document may have been declared to ASMS-TF. The information pertaining to these essential IPRs, if any, is publicly available for ASMS-TF members and non-members, and can be found in Reference [TBD].

Pursuant to the ASMS-TF IPR Policy, no investigation, including IPR searches, has been carried out by ASMS-TF. No guarantee can be given as to the existence of other IPRs not referenced in [TBD] which are, or may be, or may become, essential to the present document.

1.2 Scope of the document

[Source: Astrium]

The Commercial Group (CG) of the Advanced Mobile Satellite Task Force (ASMS-TF) has developed this document in accordance with the mandate received in Reference [1].

This document is targeted at:

 Providing the basic material to allow the promotion of services and products in satellite mobile communications and related areas;

 Serving as the basis for flowing the information to all parts of the world concerning mobile satellite communications according to the priorities agreed by the Task Force (TF).

 Developing a common vision of future mobile satcoms and identifying the role of satellites in the broader wireless networks of the third and fourth generation;

The CG also aims this document at being endorsed by the ASMS-TF Steering Panel for further use as an input by the Technical Group (TG).

The following points are addressed in this document:

 Review of the wireless communications and broadcasting markets;

 Definition of a common vision of future mobile satellite communication systems;

 Identification of the role of future mobile satellite communication systems; Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 9

 Identification of the need for new co-operations between the terrestrial and space industry.

This document is organised as follows:

 The market requirements are address from the user point of view (user requirements for user terminals, services and interfaces) as well as from the operators point of view;

 The role of the satellite infrastructure is identified;

 A business model is identified for each of the addressed scenarios (public market, mass market and niche markets);

 Regulatory requirements are also introduced in order to foster the use of such systems;

 Finally spectrum requirements have identified in order to define the need for bandwidth. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 10

1.3 Definitions, symbols and abbreviations

1.3.1 Definitions

1.3.2 Symbols

1.3.3 Abbreviations

[Source: all]

ASMS-TF The Advanced Satellite Mobile Systems Task Force CG The Commercial Group of the ASMS-TF TG The Technical Group of the ASMS-TF

1.4 Reference Documents

[Source: all]

[1] Memorandum of Understanding of the Task Force on Advanced Satellite Mobile Systems (ASMS-TF), Version 2.1 (2001-03-02).

[2] Input document to ITU-R Working Party 8F, Doc. 8F/233-E, 2001-02-16, Alcatel, IMT-2000 Systems and Systems beyond: A Vision of the Satellite Component Role.

[3] Draft ETSI TR 101 865, Satellite Component of UMTS/IMT2000; General Aspects and Principles; TC SES / S-UMTS.

[4] 3rd Generation Partnership Project (3GPP), “Service Aspects, Services and Service capabilities”, TS22.105V3.9.0.

[5] ETSI ETR 279, May 1997, Satellite Personal Communications Networks (S-PCN); Need and objectives for standards in addition to the ETS’s on essential requirements.

[6] Source: IDATE, in “Planning the Next Generation of Satellite Broadcasting Systems” ESTEC study n° 14695/00/NL/DS. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 11

2 The Role of the Mobile Satellite Systems

This section is a summary of the sub-sequent describing a vision of what could the role of the satellite in the next generation of the mobile networks. Schedule considerations shall also be addressed within section.

2.1 Terrestrial

2.1.1 Fixed LMDS, ADSL broadband-like networks are out from the scope of this document because of the higher rate capability. However users will experience new services that should create new expectations that will drive the demand for this new type of services in a mobile environment.

2.1.2 Mobile in Europe 2.1.2.1 GSM, GPRS, EDGE, T-UMTS networks In Europe it is assumed the wireless operators will not develop specific services on T-UMTS different from GPRS services in a first phase. Indeed, GPRS should be used in rural areas and T-UMTS should be the solution for traffic densification in urban areas, offering services at 144kbps rate; in this first phase it is thought T-UMTS will not be used for providing services requiring higher bit rates than GPRS. Data rates of 384kbps will be rolled out in a second phase. Time frame and roll out TBCompleted for next meeting (quantitative inputs expected…). 2.1.2.2 Terrestrial broadcasting networks DVB-T is expected to be the European solution for terrestrial broadcasting, even if it is possible some countries will not implement it, or will only implement partially the technology (fixed services, mobile services, 2k/8k, etc…). The frame of development of DVB-T is heterogeneous in Europe today (politically, economically). Mobile DVB-T is potentially challenging high data rate multicast and also unicast markets.

2.1.3 Mobile elsewhere (not Europe) 2.1.3.1 …

2.2 Lessons learnt from the past

Some history on what happened in the past and analysis of results. To be moved at the beginning of the document.

 Not assume the alternative technologies will remain as they are while you are developing your satellite system. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 12

 Because of time development and uncertainty, the satellite must be flexible enough to be capable of providing different services.  Roll-out services when the market is ready.  Need to manage user expectations.  Delivery of satellite systems will anyway be late => how late will they be and what is the influence on the business?  In assessing the market, a wide range of market segments must be tackled as a further re- orientation of the system targets must be possible.  User terminal:  Commercial availability  Reasonable price  Must actually work !  Appearance and characteristics  How the user interfaces with the terminal  Pricing: satellite services must not be too expensive even there is no terrestrial alternative  Distribution strategy is crucial. Distribution channels must be motivated to sales.  Market access regulation must be addressed, in particular spectrum availability.  Technology: how valid some technologies are to be a commercial success?  Do not be over-optimistic about mobile satellite market size.  Handheld is not the only way.  Do not underestimate the co Action Geoff King: review these inputs together with Telenor and Inmarsat (action for Inmarsat).

2.3 Satellite

2.3.1 Fixed Broadband satellite systems are under development for serving terminals with data rates above 2 Mbps. These types of services are outside the scope of the document. There is a potential market overlap in the range 500kbps to 2 Mbps between HDFSS services and ASMS.

2.3.2 Mobile in Europe For business users, satellite could have an opportunity for providing the same services and bit rates that T-UMTS but outside T-UMTS coverage areas. For mass-market users, this will not be the case as the provided services will not be necessarily the same as the ones provided by T-UMTS under the T-UMTS coverage. Satellite has the opportunity to propose high rate services on a broadcast or multicast mode

2.3.3 Mobile elsewhere (not in Europe) Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 13

2.4 Markets

This section will address the potential market of the satellite networks:  Mass market;  Vertical niche market;  Public markets (such as military, urgency applications, ….).

2.4.1 Non-broadcasting [Source: Astrium]

One useful source of information for the next generation of MSS networks comes from OVUM, which conducted a study for ESA in the year 2000. OVUM presented a number of development scenarios, steady state, medium growth and high growth:

 High growth: based on UMTS Forum projections (See UMTS Forum Report 6), and supposing full alignment with 3G terrestrial mobile.

 Medium growth: OVUM projections, based on development starting to go outside vertical markets and partial alignment with evolving terrestrial mobile systems.

 Low growth: Based on a “static-state”, continuing development of vertical markets.

The medium growth scenario is one which represents an achievable target over the coming decade. It nevertheless requires significant development programmes. The key issue is how far we can move beyond the medium projection, towards the market of 8m users in the high projection.

The OVUM market projections are presented below. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 14

9000 H i g h b a s e d o n U M T S f o r u m 8000 7000 6000 s r e

s 5000 u

0 4000 0

0 ~ 5 1 5 k ' M e d i u m 3000 b a s e d o n O V U M a s s u m p t i o n s 2000 1000 L o w b a s e d o n ‘ s t a t i c s t a t e ’ 0 1999 2000 2001 2002 2003 2004 2005 2006

Figure 1: MSS User Projections (Source: OVUM)

2,000 Others Fleet LANs s

r Vehicular IP/Internet access

e 1,500

s Maritime voice/data u Maritime low speed data 0

0 1,000 Full Multimedia to closed user group 0 ' Multicasting to onboard vehicle systems 500 LAN extension for remote workers Vehicle loc'n with fleet mgmnt - Portable Voice/Low Speed Data 3 4 9 0 1 2 5 6 0 0 9 0 0 0 0 0 9 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2

Figure 2: Breakdown of Medium Market Projections (Source : OVUM) Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 15

9,000 8,000

7,000 Others Multicasting to onboard vehicle systems

s 6,000 r LAN extension for remote workers e

s 5,000 Fleet LANs u Vehicle loc'n with fleet mgmnt 0 4,000 0 Vehicular IP/Internet access 0 ' 3,000 Consumer Multimedia 2,000 Full Multimedia to closed user group Consumer Voice/Low Speed Data 1,000 Portable Voice/Low Speed Data - 9 3 0 2 4 6 1 5 0 9 0 0 0 0 0 0 9 0 0 0 0 0 0 0 1 2 2 2 2 2 2 2

Figure 3: Breakdown of High Market Projections (Source : OVUM)

' 0 0 0 u s e r s E x i s t i n g M S S L o w M e d i u m H i g h e n d 1 9 9 9 2 0 0 6 2 0 0 6 2 0 0 6 P o r t a b l e B u s i n e s s V o i c e / L o w S p e e d D a t a 5 5 2 2 3 6 2 3 2 , 5 0 0 C o n s u m e r V o i c e / L o w S p e e d D a t a - - - 1 , 2 5 0 F u l l M u l t i m e d i a t o c l o s e d u s e r g r o u p - 6 1 1 6 7 5 0 C o n s u m e r M u l t i m e d i a - - - 6 0 0 V e h i c u l a r I P / I n t e r n e t a c c e s s - 0 6 0 6 0 0 V e h i c l e l o c a t i o n w i t h f l e e t m a n a g e m e n t 3 5 0 5 4 5 5 5 0 5 5 0 F l e e t L A N s - - 5 3 5 2 5 L A N e x t e n s i o n f o r r e m o t e w o r k e r s 3 7 3 3 0 0 5 0 0 M u l t i c a s t i n g t o o n b o a r d v e h i c l e s y s t e m s 2 1 5 1 2 4 5 0 0 M a r i t i m e l o w s p e e d d a t a / f l e e t m g m n t 4 5 7 3 7 5 8 0 M a r i t i m e v o i c e / l o w s p e e d d a t a 3 9 6 3 6 6 7 0 B a c k u p 1 5 2 6 2 9 3 2 M a r i t i m e L A N e x t e n s i o n 1 1 5 1 7 2 0 T e m p o r a r y C o r p o r a t e f i x e d L A N 3 1 1 1 3 1 5 D i s a s t e r / A i d / M e d i a 3 7 8 1 0

T o t a l s 5 1 5 1 , 0 5 5 2 , 0 3 3 8 , 0 0 2

Figure 4: Breakdown of Market Projections (Source : OVUM) Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 16

2.5 Positioning in the mobile communications infrastructure

The markets are described in this section. This section will also include a positioning of the satellite infrastructure with respect to the existing infrastructure:  Integration in the terrestrial networks (for instance IMT-2000);  Integration in other satellite networks (for instance into military satellite networks);  Level of integration: services; networks; or physical layer interface (if one considers for instance that the satellite network is a single gap-filler);  Possibly not integrated (niche markets, or satellite specific services).

[Source: Astrium]

2.5.1 Positioning for non-broadcasting satellite networks

Before going on to the role of S-UMTS, the roles of T-UMTS and GPRS will be briefly discussed. Arguably, T-UMTS and GPRS will together as complements serve the market need for UMTS/IMT2000 services. GPRS alone will not give sufficient capacity and the additional spectrum that is assigned for T-UMTS will therefore be needed. It will be expensive to build coverage with T-UMTS but GPRS on the lower GSM band will be a perfect complement for this. Most of the terminals are expected to be dual mode T-UMTS/GPRS. The role of S-UMTS should therefore be studied in relation to the combination T-UMTS/GPRS not only to one of them.

The main role of S-UMTS is as a coverage extension to other alternative bearer services.

There are two main roles that it can play:

1) Complementing Terrestrial bearer services - Extending the availability of a terrestrial bearer service in low density traffic areas.

2) Competing with Terrestrial bearer services - Offering mainly vertical services where outdoor coverage anywhere anytime is crucial but indoor coverage is not required.

The bearer service quality parameters of S-UMTS differ from those of T-UMTS and GPRS. Since S-UMTS will have availability difficulties in indoor environments, the S-UMTS as a competing service can only be considered in applications where Indoor coverage is unimportant. One such an application could be a bearer service for vehicles and various sorts of outdoor equipment. S-UMTS can in other words not be expected to be a competitor to T- UMTS/GPRS in general but maybe in some niche areas. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 17

Most of the users of T-UMTS/GPRS will probably be satisfied with the availability of these systems in the same way as they today are satisfied with the availability of cellular voice. Nevertheless, a proportion of the customers may require availability also in areas where GPRS does not offer any coverage. This is where the S-UMTS can fill a role as a complement to the terrestrial bearer services.

S-UMTS

•Rural Outdoor •Urban/Suburban T-UMTS + GPRS uncovered outdoor spots

•Urban Outdoor •Suburban Outdoor •Rural Outdoor (partly)

•Urban Indoor •Suburban Indoor •Rural Indoor (partly)

Figure 5: Probable availability of S-UMTS and T-UMTS/GPRS

S-UMTS as in integral part of the UMTS network Satellite-UMTS systems may use one of the previously mentioned six radio air interfaces endorsed by the ITU and described in more detail in sub-clause 8.1.1 of this report. Future RTTs, subject to the ITU evaluation process, may also be used. Some of the benefits to be gained from a fully integrated S-UMTS/T-UMTS system are:

 Seamless service provision.  Re-use of the terrestrial infrastructure.  Highly integrated multi-mode user terminals. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 18

The satellite component of UMTS may provide services in areas covered by cellular systems, complementary services, e.g. broadcasting, multicasting, and in those areas not planned to be served by terrestrial systems. This is illustrated in the following figure reproduced from a UMTS Forum Report [6].

Global

Satellite Suburban Urban

In- Building Micro-Cell Home-Cell

Macro-Cell Pico-Cell

Audio/visual Terminals

Inter-Network Roaming Seamless end-to-end Service

Figure 6: The role of S-UMTS as an integral part of the UMTS network (UMTS Forum)

Overview S-UMTS can complement T-UMTS in providing:

 Coverage completion/extension.  Global roaming.  Rapid deployment.  Disaster-proof availability.  Dynamic traffic management.

Coverage extension and completion S-UMTS can cover large areas, regardless of whether they are populated, with operating T- UMTS and other terrestrial services, or whether they are remote with no terrestrial telecommunications services. Consequently, S-UMTS can extend or complement T-UMTS services. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 19

Coverage extension S-UMTS can extend T-UMTS to locations not served by it. For instance, S-UMTS can provide the link to implement T-UMTS in villages and towns too poor or too remote to support wired connection. The services then offered can be the same as in populated areas and may include telephony, fax, messaging and Internet access, all in one system. The principal regions might be Africa, Latin America, India and some Pacific Rim countries, as well as remote regions such as islands, mountains or deserts, regardless of the rest of a country’s infrastructure. Deploying S-UMTS services in remote communities or in poorer areas of the world implies that some of them may not be strictly personal, but rather community-shared, with fixed, not mobile terminals.

S-UMTS can also extend T-UMTS to places it cannot serve when implemented by usual means, such as on board aircraft or ships. The utility of satellite communications at sea has been well proven, and Inmarsat was founded to serve the maritime communications market. One implementation scenario might be for larger ships, such as cruise ships, to be fitted with high gain antennas that compensate for the relatively low capacity per square kilometre of satellites. These in turn can offer communications to each cabin.

Capacity demand varies considerably with regions in the oceans. Today, Inmarsat satellites cover most of the global traffic demand, if not the global geographical coverage as LEO systems. A combined LEO and GEO system could provide global coverage as well as higher regional capacity. Future satellite systems could feature on-board switching to direct their beams on request (signalling calls) instead of inefficiently providing high capacity in wasting a lot of capacity in regions of the oceans where there is no demand for it.

The principle of extension is illustrated in the simplified drawing in the following figure:

S-UMTS Air

ISDN/GSM/ ISDN/GSM/ T-UMTS S-UMTS S-UMTS T-UMTS RNC RNC Poor area S-UMTS Islands, mountains, Connection to deserts terrestrial networks Connection to Ocean/sea terrestrial networks

Figure 7: Coverage extension. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 20

Coverage completion S-UMTS may act as an umbrella cell in a hierarchical cell structure, covering gaps in the T- UMTS network. As shown below, a typical situation might be that part of an area has T-UMTS coverage, and S-UMTS is used to cover the complete area, including remote areas where T- UMTS is not financially viable. By using a local repeater, S-UMTS also could provide indoor coverage. A home network operator can therefore achieve a complete coverage of its regional market.

S-UMTS

T-UMTS T-UMTS village city city

Figure 8: Coverage completion, umbrella cell

Satellites also afford an alternative to fibreglass to connect islands having T-UMTS islands, particularly when small 2 MB/s cells are scattered. The T-UMTS base station radio network controller (RNC) can then be connected via a satellite gateway.

A satellite link may also provide a local area network (LAN) or local multipoint distribution system (LMDS) as a backbone instead of using bandwidth limited cables or expensive fibreglass. An LMDS cell was created using a satellite link during the Advanced Communications Technologies and Services (ACTS) Cellular Radio Access for Broadband Services (CRABS) project.

A satellite link may be used to connect T-UMTS cells with other network cells, as illustrated below. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 21

Connections between scattered T-UMTS and other systems cells

“Umbrella cell”

2048 kb/s T-UMTS 2048 kb/s LMDS, T-UMTS HiperLAN, 802.11, etc.

Figure 9: Coverage completion

Multimedia applications employ broadband asymmetric and symmetric services. However, satellite links are more and more efficient for asymmetric services (higher data bit rates on the downlink, such as downloading) and point-to-multipoint services or broadcasting or multimedia to several cells. The constraint on the high capacity of the link may therefore be more easily realised on the downlink, making multicasting an application of choice for an efficient use of the spectrum.

Global roaming S-UMTS can extend T-UMTS operator coverage, including to areas with incompatible systems. Traveller communications can be connected to a home T-UMTS cell or to other travellers. Such services may be important for international business travellers and for land, sea and air transport businesses, as central offices can then monitor the movements of fleet transportation units. S-UMTS services might be offered on a global scale with higher capacity than the current messaging systems. Hand-over from an S-UMTS or T-UMTS cell to similar cell could be simpler and cheaper to administer than the equivalent hand-over in GSM, as the functions involved all are internal to the service or the service provider involved.

If the S-UMTS includes a connection with position or navigation systems such as the Global Positioning System (GPS), the position or navigation information can be sent along with other types of information. This can be a starting point for location-based services, particularly for road, rail, sea and air transport companies. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 22

Another combination could be S-UMTS and Meteosat for automatic weather update, also of interest for the transport community. The data rates depend on the type of service used, such as posting images at regular intervals or more demanding applications.

Rapid deployment A satellite link can provide the basis for implementing UMTS in areas that are not yet covered by terrestrial systems or that lack infrastructure. The UMTS provided might be S-UMTS directly, or the satellite link could provide a gateway to support a T-UMTS cell, which would provide services to handsets via a base station (BS). Since S-UMTS traffic is expected to decrease in these areas as the T-UMTS implementation progresses, it is important to have the S-UMTS system operative at an early stage compared to T-UMTS. The two deployment situations are described below.

RNC T-UMTS

Optical fibres or cables in S-UMTS RNC construction to other terrestrial networks BS=gateway of S-UMTS with direct connection S-UMTS to MS in areas not yet covered by + connection to T-UMTS T-UMTS terrestrial networks

Figure 10: Rapid implementation of combined S/T-UMTS. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 23

Disaster-proof availability Throughout the world, there are war and other crisis zones that lack terrestrial communications because networks have been damaged or destroyed or, in some cases, have not been built. A political, military or humanitarian group can be interested in renting communications capacity segment to organise the logistics of their mission.

Even the best of terrestrial system (T-UMTS, GSM and others) can be disabled by natural or manmade disasters. Regardless of the reasons, S-UMTS can provide a back-up service.

When using GEOs whose coverage includes the disaster zone an operator can rent a transponder capacity for the critical period and deploy S-UMTS services in the newly created cell. On the other hand, LEO systems provide a more global coverage, which is useful to momentarily provide help in disaster areas not covered by GEOs. Yet reserving a bandwidth of transponder for emergency coverage is expensive.

Another way to provide extra capacity in a cell is to dynamically transfer capacity from another cell via the satellite segment. This can be done by switching a spot beam from one location to the disaster area. Again, broadcasting and multicasting (of news, weather, relief implementation procedures, etc.) are choice applications for satellite communications.

Cell to cell New spot beam capacity transfer

Available ISDN/GSM/T- S-UMTS ground system RNC UMTS ISDN/GSM/ S-UMTS T-UMTS No available ISDN/GSM/ ground system T-UMTS Unavailable systems because of: - war/crisis - natural/man-made disasters

Fig. 1.5. Figure 11: Disaster-proof availability. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 24

Dynamic traffic management S-UMTS can relieve permanent or temporary traffic congestion in T-UMTS. Communications traffic peaks at certain times of the day in some locations, such as city suburbs and public transport services during peak hours, or during certain seasons, such as in holiday resorts. There may also be more business-related communications during the day than in the evening or during the weekends, when it is likely to be more family-oriented. Since business and family communications have different services needs, the capacity and symmetry must be adjusted to the demand on an almost real-time basis. This also implies that dynamic capacity allocation must take into account location changes, for example due to daily commuting.

When there is a capacity conflict between services, the more asymmetric (broadcasting, downloading) should be diverted to the satellite segment as one satellite can serve several T- UMTS cells. Dynamic traffic management is simpler with GEO systems than with LEO/MEO because it avoids the double traffic and handover management. Some configurations of dynamic traffic management, with capacity upgrading or dynamic capacity transfers from one cell to another are illustrated below.

Dynamically allocated more asymmetric services: broadcast / PTM services

Dynamic capacity transfer

Capacity 2048 kb/s upgrade T-UMTS to 2 Mb/s 2048 kb/s BS=gateway of RNC ISDN/GSM/T- T-UMTS S-UMTS UMTSS-UMTS + connection to Dynamic RNC BS=gateway of terrestrial networks capacity ISDN/GSM/ 384 kb/s S-UMTS transfer T-UMTS BS=gateway of T-UMTS + connection to S-UMTS terrestrial networks + connection to terrestrial networks

Fig. 1.6 Figure 12: Dynamic capacity allocation. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 25

2.5.2 Positioning for broadcasting satellite networks There are many scenarios that can be considered for the implementation of a broadcasting satellite network for mobile services. These range from the simple sharing of content, to the sharing of spectrum or to the co-ordinated use of several networks (satellite + terrestrial) for a service.

A basic assumption for the co-operation of mobile networks is that a terminal can interact with several networks (eg. satellite and IMT-2000) simultaneously. Such a co-operation of both networks (see below) can improve the capabilities and varieties of services, the economics for the user and, hopefully, the ease of handling. It combines the network service modes of both networks and thus enables new solutions for applications. Of course, there will still be services which need only one network. Some applications like interactive TV can use also separate terminals, eg. an IRD or a IMT-2000 mobile terminal.

Ground DVB-T Station Transmitters URBAN SUB - URBAN AREA RURAL AREA AREA

Contribution 2G/3G Cellular network network

Figure 13: Overview of Co-operating Networks

1. Integration at the terminal level, no co-ordination on the network level 2. IP services on co-ordinated satellite and IMT-2000 networks 3. IMT-2000 as a return channel for interactive broadcast services 4. Satellite as a technology in IMT-2000 networks

These scenarios will be briefly described and the technical elements required for their implementation will be identified. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 26

Satellite can be envisaged in a global mobile offer, bundled with a pure bi-directional communication services offer (provided by wireless operators), in order to propose these broadcasting services 3rd Generation Mobile networks won’t be able to offer.

The mobile broadcasting satellite services can either be integrated with other networks (IMT- 2000 or S-IMT-2000) or not. Broadcasting satellite mobile services could have to compete with DVB-T, the terrestrial broadcasting system from DVB specifically designed for mobile reception.

In the case satellite services are envisaged to be marketed in a bundled offer with mobile bi- directional services, the integration of networks would enable the joint provision of a full range of integrated services from peer-to-peer to broadcasting.

Individual requests can be satisfied through the IMT-2000 or S-IMT-2000 networks, whereas frequently accessed contents and broadcast transmissions are sent through the broadcasting satellite network to all users.

This integration also requires a unified subscriber care and billing system if we want to provide the subscriber with a unique bill.

Broadcasting of TV programmes + media streams

Antenna

Bi-directional communications

3rd G Mobile Network

Tour radio

Figure 14: Services per network Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 27

Satellite services can also be marketed in a stand-alone offer if sufficient number of subscribers can be ensured with services at a reasonable price for a sufficient park of terminals.

POP Satellite feed

Content is multicast to all Mobile terminal users/to a selection of Individual requests and users data processed through an UMTS connection

Figure 15: Possible integration at the services level Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 28

2.5.3 Geographical requirements

2.5.3.1 Regional needs for mobile services

2.5.3.2 Regional positioning of the satellite infrastructure

2.6 Users and Applications

The type of users is defined (with the aim at defining the main classes of terminals & usage of the services).

The applications will also be defined with respect to the following classifications:  point to point/broadcasting.  data & voice/video/sound services.

The applications may consist for instance (and not limiting this list) to:  E-mail exchanges;  Telemedecine ;  E-commerce ;  Location services;  Mobile broadband services;  “Always-on” features;  Satellite transparency to services;  ….

[Source: Astrium] Traditional markets for Mobile satellite systems are:  maritime.  Trucking.  Media/broadcasters.  Government.  Oil & gas.  Corporate.

For the next generation of MSS market development, there is considerable interest in developing a service offer for a more mainstream market.

Two main user categories are identified:  Businesses and organisations, with high demands regarding reliable and available services; Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 29

 Private users who will be more price sensitive than the first category.

Businesses and organisations can further be divided in two subgroups, depending on the type of usage. That is the remote or mobile office, where the main purpose is to provide the user with the same services as in his home office, i.e. a connection to the main office or intranet. The users own location is irrelevant to the information exchange. The other subgroup is logistics, where the location or position is an important part of the information transferred. Location based services are however also interesting to the private user, not only businesses.

As far as high bit rate services are concerned, the private user is likely to need more download and broadcast than businesses that need more symmetric services such as videoconferencing. Logistics demand is mostly data/video streaming for surveillance and tracking. Examples of location based services for the private user are broadcast of traffic information, download of maps either in a city or when driving between two cities.

In the UMTS Forum report No 9, a definition of applications is proposed :

Applications are service enablers – deployed by service providers, manufacturers or users.

Applications are invisible to the user. They do not appear on a user’s bill. A banking service, for example, would require a secure transaction application to be implemented by the services provider. A unified messaging service would require voice recognition and text-to- speech applications, deployed on the network or in the terminal device. Individual applications will often be enablers for a wide range of services.

Applications which will typically need to be implemented are:

Market Application Maritime e-commerce Trucking Fleet management Media Video compression Government Encryption Energy/Oil & Gas File transfer & LAN access Corporate IP-based LAN/WAN extension Security Consumer Billing Figure 16: Markets and applications mapping Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 30

3 Market Requirements

This section identifies the requirements for addressing the market in a successful manner.

3.1 User requirements

This section will address the requirements from the user point of view. Eg. Cost of the terminals, need for a single interface (in terms of billing, etc), need for specific interfaces (for instance with a PC, etc). One may also think that human safety requirements be addressed under the section “user terminals.”

3.1.1 User terminals

[Source: Astrium]

3.1.1.1 Introduction

IMT2000 “third generation” mobile networks – known as UMTS in Europe – will differ significantly from today’s second generation systems that are built around GSM, TDMA and CDMA technologies.

This implies moving from voice communication to a rich, interactive multimedia-based personal and business environment. The 3G will enable faster data transmission speeds, making mobile access to high-quality video, audio, graphics and multimedia as easy as the actual fixed Internet.

While today’s mobile users must wait minutes just to download a few e-mail messages, tomorrow’s mobile users will use exciting new pocket-able communications devices to view high-quality video clips, work with graphics-rich document files, browse, buy and enjoy a whole new world of information and entertainment services.

This implies that tomorrow’s phones would be much more than just phone. A large number of S-UMTS terminals can thus be envisaged for different applications, services and user groups. On the UMTS Forum web site, examples of different terminal concepts are available.

Four main categories of terminals have been identified:  Handheld terminals.  Transportable terminals (palmtop-sized).  Transportable terminals (laptop-sized).  Vehicular terminals. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 31

It is also important to identify the possible integration between terrestrial and satellite components in a single device. The different terminal types can thus be categorised in different terminal classes in terms of functionality. Single-mode terminals are pure S-UMTS terminals, i.e., they may not be used for communications with any terrestrial system. Multi- mode terminals are capable of communicating with both S-UMTS systems and terrestrial systems.

A wide range of multi-mode terminals can be envisaged:  Single-mode S-UMTS terminals.  Generic multi-mode terminal, capable of connecting to a arbitrary number of systems.  Dual-mode S-UMTS/T-UMTS terminals.  Dual-mode S-UMTS/GPRS terminals.  Tri-mode S-UMTS/T-UMTS/GPRS terminals.

The generic multi-mode terminal may in principle be configured to communicate with any S-UMTS and 3G terrestrial mobile communication system. This approach represents the optimal solution from a flexibility point of view. More realistic terminal solutions will be to limit the number of modes the terminal supports. Multi-mode terminals will most probably be S-UMTS/T-UMTS terminals or S-UMTS/GPRS terminals.

The user terminals may also include other functionalities such as the integration of the reception of Galileo signals for navigation purposes. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 32

3.1.1.2 Description of terminal types

3.1.1.2.1 Handheld terminals Handheld S-UMTS terminals may be similar to current Globalstar or ACeS terminals, or more like a PDA. A display of a decent size is incorporated to show images and video. Examples of such screens are those on camcorders and PDAs. In addition to containing a user interface, the handheld terminal is likely to contain a short-range wireless interface (SRWI) enabling it to connect to other devices like PDA’s or laptop PCs. However, the main usage of the terminal will be via the user interface, not via the SRWI.

Figure 17: Example of handheld terminals The terminal should be multi-mode permitting the terminal to connect to terrestrial networks. In-call handover between satellite and terrestrial might thus be provided.

Degree of user co-operation needed

In areas with terrestrial coverage, little user co-operation is needed when the terminal is in terrestrial mode. The terminal can communicate outdoors and indoors, and the antenna does not need to be pointed in any particular direction.

In S-UMTS mode, some user co-operation is necessary, as LOS to the satellite is required. Hence, the terminal can not be used in buildings except close to windows with a view in the direction of the satellite, under trees or in cars, trains etc. In areas with low elevation angle, mountains and hills may obstruct the LOS. The antenna gain is low, so it is not critical that the antenna point directly towards the satellite. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 33

Services

Maximum data rate will probably be in the order of 16 kbps on the return path. Handheld terminals will not support services requiring high data rates on the return path. As a consequence of this, they are best suited to provide complementary GPRS or low-rate T- UMTS services.

Typical services will include:

 Telephony.  Messaging.  Web/WAP browsing.  Audio streaming.  Low rate video/data streaming (multicast).  E-commerce.  Location-based services.

3.1.1.2.2 Transportable terminals (Palmtop and Laptop Terminals) Transportable (or nomadic) terminals are assumed to be fixed during communications. Two sizes are defined: palmtop-size and laptop-size. The palmtop-sized terminal is about 10 x 17 cm; the laptop-sized terminal is about twice as large (20 x 20 cm).

Figure 18: Example of a transportable S-UMTS terminal. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 34

Terminal characteristics

Compared to the palmtop-sized terminal, the laptop-sized terminal may:  Accommodate higher data rates.  Relax the constraints on the satellite (antenna gain, transmitted power, LNA).  Relax the constraints on the terminal RF front-end.  Allow a combination of the above.

The palmtop-sized terminal is however smaller and easier to take along on trips.

The antenna must be oriented with the proper azimuth and elevation angles to point towards the satellite. A hinged frame may be used to support the terminal with the right elevation angle. The fixed azimuth and elevation angles of GSO satellites simplify significantly the use of such a terminal with respect to NGSO satellite systems.

Both single-mode S-UMTS terminals and multi-mode transportable terminals could be envisioned.

Services

The palmtop-sized terminal will support data rates for instance up to 144 kbps. Its capabilities should include:

 Web browsing.  Audio streaming.  Video/data streaming.  Real-time video.  Data transfer (bulk).  Broadcasting.  E-commerce.

The laptop-sized terminal will support higher data rates (up to 400 kbps) and will thus support all the services provided by the S-UMTS system. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 35

3.1.1.2.3 Vehicular terminals

Figure 19: Example of a vehicular terminal. The car industry is currently very interested in providing Internet and other wireless communications in their cars, and an S-UMTS system could become very important in making this possible. Cars are inherently well suited for satellite communications for several reasons:

 The traditional limitation of satellite communications regarding lack of in-building penetration is not an issue for cars.  When people are moving in rural and remote areas, they are usually using their car. Those areas will be the last to have T-UMTS.  Size of the terminal is not a big issue.  Cost of the terminal is not critical, especially if it is offered as an option similar to a sunroof, hands-free phone, navigation system etc. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 36

This terminal type can be used in personal cars, boats, busses and other means of transportation.

The antenna is fixed to or integrated into the car body. The best position is probably on the roof, although it might be a problem to put a ski box or something else on top of the antenna. Another possibility is to place the antenna on the hood, or to scatter antenna elements over several parts of the car body. At locations where the elevation angle to the satellite is low, the latter alternative has advantages, as one antenna element always would be directed more or less towards the satellite. Several antenna elements would however increase the complexity and cost of the terminal.

The rest of the terminal is located inside the car. The size of the terminal should probably be standardised in the same way as car stereos are standardised today.

One of the biggest challenges when incorporating an extra radio system in a vehicle is to minimise the electromagnetic interference and RF interference between the terminal and the vehicle’s electrical and electronic systems. The ETSI Technical Committee Electromagnetic compatibility and Radio spectrum Matters (ERM) is currently developing a harmonised European standard related to electromagnetic compatibility (EMC). The effort includes communications systems in road vehicles, and a joint work group (ETSI ERM TG4) has been created together with ACEA (Association des Constructeurs Européens d’Automobiles).

The terminal may contain a Short Range Wireless Interface (e.g. DECT, Blue tooth, …) similar to that of transportable terminals. Hence, users inside and in the vicinity of the car may use it to connect their portable PC, T-UMTS terminal of some other device to the S-UMTS system.

Services

The services may include:

 Emergency services, including air bag deployment notification, remote door unlock, theft protection etc.  Convenience services, including listing of hotels, restaurants etc. with online reservation possibilities.  Route support providing customers with directions to find shortest route, closest gas station or ATM, avoiding jams etc.  Radio and possibly TV broadcasting and multicast.  Other Internet or Intranet services, including e-mail and web browsing. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 37

3.1.1.3 Broadcasting

[Source: Astrium]

Terminals designed for broadcasting must be understood as two-fold: “data-processing” part (including antenna, RF front-end, demodulation and decoding) and “data accessing” part. This paragraph will deal exclusively with the “data-processing” part of the terminal while the latter will be discussed in the following paragraph.

Several types of terminals may co-exist for receiving broadcasting satellite mobile services. In the first category lie terminals that can directly receive, demodulate and decode the satellite signal. These are:

 In-car terminals.  Handsets.  Nomadic terminals.

The second category is composed of portable or wearable device equipped with short-range radio access interface or wired interface; these terminals can decode (source decoding) the signal and optionally demodulate the satellite signal. Constraints can be summarized in the following table:

Terminal type In-car handset nomadic wearable Terminal size To be fitted into the radio DIN A5 DIN A4 A few cm x rack (typ. 15x20x8 cm) should be a 10cm maximum Antenna size To be fitted on the roof of DIN A4 - the car (typ. 100x60x1 cm) Weight Not a constraint (typ a few A few Less than A few kgs) hundred g. 1kg hundred g. Cost 500€ 250€ 500€ 300€ Autonomy Always on-battery 5h 10h 3h Figure 20: Type of terminals for broadcasting services and corresponding characteristics Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 38

3.1.2 User interfaces

3.1.2.1 Non-broadcasting

[Source: Astrium]

The high degrees of processing, memory and communications power predicted for handheld and wearable computers –mobile multimedia terminals- in the next ten years would create a step-change in the way information will be accessed and used. The functionality, performance, costs and ease of use of these devices will be largely determined by the human-machine interface and others ergonomic technologies. The reconciliation of friendly visual displays with miniaturised environments, and the replacement of the traditional keyboard as an input device, remains ongoing problems.

Significant progress has been made in these fields with new technologies such as plasma display panels (PDP) and cholesteric liquid-crystal (CLC) screens, voice and man-machine interface such as handwriting and voice recognition. However more developments are needed to satisfy all user requirements for the user interface if a mass market for mobile multimedia is to be achieved.

In the longer term, holographic displays and natural language processing will make devices much more user-friendly but technology are not yet available due to constraints in processing capacity and power consumption of the devices.

Figure 21: Description of 3G devices (source UMTS Forum) Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 39

[Source: Astrium]

The user interface will depend on the type of data that will be broadcast: either sound (music, voice), images (video) or rich media content (text + still images).

As service is broadcasting, the only interaction requirement is the possibility to tune on the desired channel (for music and video programming) or to select the right content to be viewed (for rich media content).

Type of content Sound Video Rich media User interface - Small size Video display Video display loudspeaker either (screen) (screen) integrated in the phone or not; or - Jack phone plug Interaction Selection of the Selection of the “Enhanced requirement channel (tuning) channel (tuning) Programming Guide”- either through a through a scroll menu like presentation of mechanical selector “Programming contents with menus or through a scroll Guide”-like and scroll-up and menu on the screen down bars (if any) Possible connection Possible connection Possible connection Possible connection to other device to a portable music to a PC through radio to a PC through radio device (type MP3 (Bluetooth, 802.11b) (Bluetooth, 802.11b) walkman) or wired (USB) or wired (USB) interface interface Multiple access to the Not a requirement Not a requirement Simultaneous viewing terminal on the terminal and on a PC of different contents should be possible Figure 22: User interfaces for broadcasting services Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 40

3.1.3 Applications This will identify the applications requirements from a user’s perspective. The quantitative business model would be based upon expected demand for these applications.

3.1.3.1 Non-broadcasting [Source: Astrium] Content and applications are the key areas for whether UMTS becomes a success. Rather than the voice centric environment that has dominated the mobile world to date, 3G will enable new data based applications. We may thus categorized the demand for 3G applications into six main areas:

 Mobile Internet Access.  Mobile intranet/Extranet Access.  Customised Infotainment.  Multimedia messaging Applications.  Location Based Applications.  Voice applications.

Figure 23: Main categories of applications in the 3G environments Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 41

Mobile Internet Access: will offer mobile access to Internet services with good transmission quality and functionality including full Web access to the Internet as well as file transfer, electronic mail and streaming audio/video. This is a mass-market oriented application.

Mobile Intranet/Extranet Access: will provide secure mobile access to corporate Local Area Networks (LAN) and Virtual Private Networks (VPN) to offer business 3G applications.

Customised Infotainment: will provide access to personalised content via structured-access mechanisms (e.g. mobile portals).

Multimedia Messaging Application: will offer real-time multimedia messaging capability. This application will enable the opportunity for messaging services amongst closed user group or specific communities of interest. The high data rates available will permit the use of image and video to create multimedia messages thus improving the simple short message service (SMS) mechanism used in actual mobile networks.

Location-based Applications: will allow new business and consumer 3G services taking into account the location of people, vehicles, resources, … Location technology not only enables specific location-based applications but will also enable enhancements of other services (e.g. Customised Infotainments).

Rich Voice: Voice might continue to be an important service offering in the 3G environments. High data rates will allow the addition of new capabilities to the traditional voice services such as videophone and delivery of multimedia communications. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 42

Figure 24: Applications that represent the majority of the near-term 3G demand. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 43

This will identify the applications requirements from a user’s perspective. The quantitative business model would be based upon expected demand for these applications.

[Source: Astrium]

The term “service” means capacities bought or rented by a user from a supplier of services. The service is an abstract view attached to equipments and\or elements of network. Identical services can be offered by different networks. A service relates in a set of applications and of opportunities offered by a supplier to a customer. An “application” corresponds to a set of characteristics integrating information processing and communication which allow an user to perform operations. An application means a set of activities which are aggregated to answer users needs, corresponding to a given situation: business, entertainment, education, … This implies software modules and\or hardware which execute in a automatic way or not, locally or to distance via Telecommunications or Broadcast network services. Four classes of applications are proposed : Real time, Web access, messaging, broadcasting. Network (service) mode refers the way a service is transported in a network. Four main network (service) modes are identified: Distribution, Retrieval, Messaging and Conversational. Several network service modes can be used to transfer information in networks. Each network service mode defines a set of requirement for the network and enables a class of applications. These service modes are (similar to ITU-T I.113): Distribution refers to the broadcasting of information from one source to multiple users. The information flow is uni-directional, point-to-multi-point, mostly real-time. The users have no influence on the source. Each user selects the content locally from the available distribution channels. Example: TV or audio broadcasting, data broadcasting. A special form of distribution is multicasting which devotes all or a part of the channel capacity to a single user or a user group. Example: Data transmission for a closed user group. Retrieval / Interaction refers to the delivery of information on an individual basis, in response to a single user. The information flow is bi-directional, point- to-point, mostly asymmetrical and non-real-time. Examples: Internet access for web surfing, for downloads of files, software, audio, video, remote LAN access. Interaction with a server for ITV. Messaging : The message is stored in a network server or at a service provider, indicated to the user and delivered on request of the user. The information flow is bi-directional, non real-time, point to point, with storage in between. Examples: email, voice mail, multi-media mail. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 44

Conversational refers to a bi-directional service between users (or terminals). Typically a bi-directional, point to point, symmetrical channel with real-time QoS requirements. Examples: voice telephony, video telephony.

Type of application Application Mode Network service mode Entertainment Push Distribution General Information Push Distribution On demand Retrieval Individual Information On demand, PTP Retrieval, messaging,

Conversation? Business and e-commerce On demand Retrieval, messaging,

Conversation

Figure 25: Basic implementation of applications in network service modes

Hereafter are listed applications that are expected to be included in a service offering (from the user’s perspective):

- Mobile communications services (residential and business markets), - Gaming, gambling (residential market), - Remote access for data broadcasting (business market), - Remote access to the Internet (Web browsing, messaging, etc.), - Mobile information broadcasting services, radio, car or travel related: - Car information services, - Travel information services, - Traffic information services, - Truck driver information services, - Segmented news service (sport, current affairs), - Specific services or content for passengers (games, TV programmes, etc.).

Hereafter are presented the expected evolution of mobile applications: Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 45

• M e s s a g i n g

A p p l i c a t i o n s • T r a c k i n g • R e a l t i m ef l e e t m g t • E n t e r t a i n m e n t • I n t e r n e t s e r v i c e s • R e m o t e d i a g n o s t i c s & ( r a d i o ) o n - l i n e m a i n t e n a n c e • M o b i l e c o m m e r c e • V i d e o c o n f e r e n c i n g • E m e r g e n c y ( b o o k i n g , … ) • M o b i l e T V • B r e a k d o w n • M u s i c o n d e m a n d a s s i s t a n c e • I n t e r a c t i v eg a m e s • D a t a b a s e a c c e s s • I n f o t r a f f i c • M o b i l e o f f i c e • P l a y s t a t i o n s • N a v i g a t i o n • D V D r e a d e r s • P h o n e • V o i c e r e c o g n i t i o n • P r e t r i p p l a n n i n g

T i m e

N o w T o m o r r o w F u t u r e

Figure 26: Evolution of mobile applications Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 46

3.1.4 Pricing requirements This will identify the expectations of the user of charges (tariffs) for the use of the mobile satellite system. Hopefully the tariffs would be linked specifically to the applications identified above

[Source: Astrium]

Service take-up in the marketplace will be influenced by the affordability of the service, determined by the price of the service and the terminal, and the attractiveness of the service.

The price of the service will be determined by:

 The level of competition in service delivery.

 The cost of network access: depending on the level of competition for the infrastructure deployment and the production volumes (influenced by the degree of standardisation – the more widely adopted the standard, the larger the market and overall levels of service demand. Increasing production volumes will then results in lower unit costs due to economies of scale).

The price of the terminal will be determined by:

 The component costs: technology developments, such as high volume semiconductor manufacturing and new display technologies will have a significant effect on manufacturing costs of multimedia terminals.

 Production volumes: influenced by the level of standardisation and overall levels of service demand.

Attractiveness of services will be determined by:

 Service variety: Competition in service provision will encourage innovation and the development of a wider range of services in order for service providers to differentiate themselves and to meet the growing need for personalised or customised services).

 Service usability: technology developments will influence service design and the man machine interface (MMI) enabling users to personalise, and therefore simplify, the user- interface making the services easier to use. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 47

 Service utility: the value placed on a particular service will depend on how closely the service or application meets the needs of the customer.

Many different models for pricing could be envisaged for a Service Provider depending on users’ profile, usage, etc:  Subscription fees.  Pay-per-view (or consumption based).  Advertisements.  Transaction related model.

[Source: Astrium]

The willingness to pay for the satellite services will depend on the tariffs of similar services with terrestrial networks. In any case the convenience of satellite compared with terrestrial networks -even in the broadcasting arena- could compensate and justify for a significant higher price of services.

It implies that satellite services will have to be marketed at a price similar to terrestrial networks.

Type of content Sound Video Rich media Pricing Business model for Similarity with DTH Can be included in radio programming to offering => basic the video package or be found (as packages about marketed as terrestrial FM 15€/month - premium supplementary programming is for package at 30€ services, about free) Reference model: 10€/month for access DTT pricing policy to basic package Figure 27: Pricing requirements for broadcasting services Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 48

3.2 Service requirements

This will define in general the service requirements. A long list may be defined. It is proposed to follow the ITU-T B-ISDN service classification: - Bearing; - Tele-services; - Supplementary services (including AAC functions, call forwarding etc); - Connected / Non-connected modes; - Access to other infrastructures (IP, …).

[Source: Astrium]

This information is taken from the TC-SES S-UMTS group document “General Aspects”.

3.2.1 Non –broadcasting

3.2.1.1 Service principles

3rd Generation systems will provide integrated personal communications services. They will support different applications, ranging from narrow-band to wide-band communications capabilities, with integrated personal and terminal mobility in order to meet the user and service requirements for the 21st century.

One key aspect of these systems is that they will be based on defined “service capabilities”, rather than on defined services. These standardised capabilities will provide a defined platform enabling the support of speech, video, multi-media, messaging, data, user applications and supplementary services, while enabling the market for services to be determined by users and home environments.

This approach will ensure that operators will be capable of rapid development and deployment of competitive service offerings.

Global roaming will be achieved by means of the Virtual Home Environment (VHE). The VHE concept enables users to obtain services in a consistent way, regardless of their location or the particular terminal used, provided that the necessary service capabilities are available in the serving network. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 49

3.2.1.2 Service capabilities

3.2.1.2.1 Multimedia

3rd Generation systems will support both single-media e.g., telephony, and multimedia services which combine two or more media components e.g., voice, audio, data or video, within one call.

Multimedia services are typically classified as interactive or distribution services. Interactive services are, in turn, typically subdivided into conversational, messaging and retrieval services:

 Conversational services: are real time (no store and forward), usually bi-directional where low end to end delays and a high degree of synchronisation between media components (implying low delay variation) are required. Video telephony and video conferencing are typical conversational services.  Messaging services: offer user to user communication via store and forward units (mailbox or message handling devices). Messaging services might typically provide combined voice and text, audio and high resolution images.  Retrieval services: enable a user to retrieve information stored in one or many information centres. The start at which an information sequence is sent by an information centre to the user is under control of the user. Each information centre accessed may provide a different media component, e.g., high resolution images, audio and general archival information.

Distribution services are typically subdivided into those providing user presentation control and those without user presentation control.

 Distribution services without user control: are broadcast services where information is supplied by a central source and where the user can access the flow of information without any ability to control the start or order of presentation e.g. television or audio broadcast services.  Distribution services with user control: are broadcast services where information is broadcast as a repetitive sequence and the ability to access sequence numbering allocated to frames of information enables the user (or the user’s terminal) to control the start and order of presentation of information.

3GPP specifications support single media services and all calls have the potential to become multimedia calls. It will be possible to reserve resources in advance to enable all required media components to be available. In a similar way to the inter-operation of a multimedia PC Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 50 with the Internet, once a call has been established, via the S-UMTS multi-mode terminal, any number of multimedia components can be added.

3.2.1.3 Service architecture

As multimedia services may involve several parties and connections, flexibility is required in order to add and delete both resource and parties, without compromising the quality of service targets. Services will be integrated in an architecture frame as shown in the following figure.

MMI Suppl. Service Teleservice/ Application UIM

Service Platform

Mobility Call Bearer Man. Control Control

Wired Subnetwork Wireless Subnetwork

Figure 2: Service Architecture

Figure 28: Service architecture A number of bearers will be provided, which may differ in flexibility and offer different capabilities. Bearers can be characterised by parameters such as “throughput”, “delay tolerance”, “maximum bit error rate”, “symmetry”, etc.

These bearers transfer the information necessary for the provision of tele-services, and generally for end user applications, via subnetworks which typically provide different specified qualities of service.

The assignment and release of bearers is provided by the bearer control function. Provision should be made for several bearers to be associated with a call and for bearers to be added to a call and/or to be released from a call following call establishment. The bearers should be independent of radio environments, radio interface technology and fixed wire transmission systems. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 51

Adaptation/Inter-working functions are required in order to take account of the differences between the bearers used for the provision of a teleservice/application in the fixed network and the bearers. Adaptation/Inter-working functions are required which take account of the discontinuous and/or asymmetrical nature of most tele-services/applications.

The service platform shall provide interfaces (to serving networks and home environments) for the creation, support and control of supplementary services, tele-services and user applications. The service platform will also provide interfaces enabling subscribers to control supplementary services, tele-services and user applications.

As far as possible, the service platform is required to enable new supplementary services, tele-services and/or end user applications to be supported at minimum cost, with minimum disruption of service and within the shortest possible time.

Supplementary service provision and control will be independent of radio operating environment, radio interface technology and fixed wire transmission systems.

3.2.1.4 Telecommunication services and applications

3.2.1.4.1 General

Telecommunication services defined by 3GPP specifications are the communication capabilities made available to users by home environment and serving network. A PLMN provides, in co-operation with other networks, a set of network capabilities which are defined by standardised protocols and functions and enable telecommunication services to be offered to users.

A service provision by a home environment and serving network to a user may cover the whole or only part of the means required to fully support the service. The service classification and description that follows are independent of different possible arrangements for the ownership and provision to the user of the means required to support a service.

3.2.1.4.2 Basic telecommunication services

Basic telecommunication services are divided in two broad categories:

 bearer services, which are telecommunication services providing the capability of transmission of signals between access points;  tele-services, which are telecommunication services providing the complete capability, including terminal equipment functions, for communication between users according to protocols established by agreement between network operators. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 52

The communication link between the access points may consist of PLMN, one or more transit networks and a terminating network. The networks between the two access points typically use different means for bearer control. The following figure illustrates these definitions.

Teleservices

Bearer services

possible Terminating TE TAF MT PLMN transit TE network network UE

UE: User Equipment MT: Mobile Termination TE: Terminal Equipment TAF: Teminal Adaption Function

NOTE 1: In order to limit the complexity of the figure, only one transit network is shown. NOTE 2: The terminating network type may include a PLMN, either the originating one or another one. NOTE 3: The bearer service terminates in the user equipment. NOTE 4: The terminating network may be another network such as: PSTN, ISDN, IP networks/LANs and X.25. Figure 29: Basic telecommunication services supported by a PLMN

3.2.1.4.2.1 Bearer services

Bearer services are distinguished by their individual characteristics that apply at the reference point where the user accesses the bearer service.

In general, different networks, connecting two access points, use different control mechanisms. Because of these differences, in order to realise an end-to-end bearer service, the bearer services of each network throughout the communication link have to be translated at the network interfaces. The bearer services are negotiable and can be used flexibly by applications.

3.2.1.4.2.2 Tele-services Because some tele-services are standardised and others are not, a decoupling between the lower layer i.e. bearer attributes and the higher layer capabilities, will be necessary for the development of tele-services. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 53

3.2.1.4.2.3 Supplementary services

A supplementary service modifies or supplements a basic telecommunication service. Consequently, it cannot be offered to a user as a stand alone service. It shall be offered together or in association with a basic telecommunication service. The same supplementary service may be applicable to a number of basic telecommunication services.

Two methods are used for the characterisation of supplementary services:

 The first method is used for the description of existing standardised supplementary services. These services are specified through the detailing of each of the operations involved in service provision and service usage (the provision/withdrawal, registration/erasure, activation/deactivation, invocation and interrogation operations).  The second method enables the provision of HE/SN specific supplementary services. To make this possible, services can be built using service capability features which are accessed via the standardised application interface. A PLMN shall be able to handle multiple supplementary services within a call. Interactions shall be handled when several supplementary services are activated in the same call. When multiple supplementary services can be activated concurrently, some prioritisation of the services will be necessary. Certain services may override or deactivate other services. Interactions between operator specific supplementary services are not defined. The following issues need consideration when interactions between services occur:  Different phases of a call.  A service spanning on more than one network.  Service interactions that may occur between services offered to a single user, as well as between services offered to different interacting users.  NOTE: The methods defined for characterisation of services are description methods. They do not imply or restrict different implementations.

3.2.1.4.3 Quality of Service requirements

Reference [4] presents a detailed description of telecommunication services, including requirements on quality and several examples of possible services built upon these capabilities. In particular, both for connection and connectionless traffic, in a satellite environment, the network shall efficiently guarantee these requirements for bearer services:

- Real time (constant delay): Maximum transfer delay of 400 ms; Bit Error Rate in the range 10-3–10-7. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 54

- Non real time (variable delay): Maximum transfer delay (for 95% of the data) of 1200 ms, or more; Bit Error Rate in the range 10-5–10-8.

As specified in Reference [4], a bit rate of at least 144 kbit/s should be supported in a satellite radio environment in a nomadic operating mode.

3.2.1.5 Location based services

Location Services may be considered as a network provided enabling technology, consisting of standardised service capabilities, which enable the provision of location applications. The application may be service provider specific.

LCS can be offered without subscription to basic telecommunication services. LCS is available to the following categories of LCS clients:

- Value Added Services LCS Clients – use LCS to support various value-added services; - PLMN Operator LCS Clients – use LCS to enhance or support certain Operation &Maintenance related tasks, supplementary services, IN related services and bearer services and tele-services; - Emergency Services LCS Clients – use LCS to enhance support for emergency calls from subscribers; - Lawful Intercept LCS Clients – use LCS to support various legally required or sanctioned services. LCS is applicable to any target UE whether or not the UE supports LCS, but with restrictions on choice of positioning method or notification of a location request to the UE user when LCS or individual positioning methods, respectively, are not supported by the UE.

3.2.1.6 S-UMTS services as a complement to T-UMTS services

S-UMTS services can complement T-UMTS services in two ways:

 Geographic extension services; where the USRAN is used to provide extended geographic coverage for UMTS services. This includes telephony for maritime and aeronautical users, remote surveillance of high value objects e.g. pipelines and industrial plant in hard to access regions, news gathering and database access for journalists operating in remote parts of the world, tele-diagnostic in emergency cases, and many other telemetry applications.  Functional extension services; where the USRAN is used to provide services that extend the functionality of UMTS services. These services may be used to complement Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 55

other services provided by either a USRAN or a UTRAN. This category includes multicast and broadcast services which cannot be efficiently provided by T-UMTS.

In both cases the S-UMTS component can complement T-UMTS in an economic and efficient way.

3.2.2 Broadcasting [Source: Astrium]

Application Frequency of Type of Peak bitrate Mean bitrate Use Connection (kbps) (kbps) Business: (09.00 – 18.00) Residential (19.30– 23.00)  Business market data carroussel Fixed BW 256-2048 64-128 broadcasting (remote access) - push (updates, 256 128 newsgroup, E-mail) - Radio, car or travel 128 64 related - Traffic information, truck 20 < 10 driver information

Figure 30: Service requirements for broadcasting

EUREKA – 147 is a standard that provides compatibility at consumer level (in line with DAB- T). Mobile reception is the primary target, fixed reception is the secondary target. Automotive telematics compatibility is also provided. Interactive mobile services can be provided with IMT-2000 return channels (GPRS not recommended, although for some services possible)

IMT-2000 and GPRS allow “always on”service characteristic due to volume based accounting. High Speed content distribution on the forward link requires return channel data reduction (e.g. through selective acknowledgements or negative acknowledgements).

Bandwidth Utilization AM 16 kbps FM Mono 32 kbps FM Stereo 64 kbps CD 128 kbps Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 56

Pan-European Radio MUX Typical National/Regional Radio MUX No. Bandwidth Equiv Std No. Bandwidth Equiv Std Channels Quality (kbps) Channels % Channels Channels Quality (kbps) Channels % Channels 16 AM 256 2 46% 0 AM 0 0 0% 10 FMM 320 2.5 29% 2 FMM R64 0.5 13% 7 FMS 448 3.5 20% 7 FMS 448 3.5 47% 2 CD 256 2 6% 6 CD 768 6 40% 35 10 100% 15 10 100% Number of MUXs 1 Number of MUXs 1 News, talk, etc. 74% News, talk, etc. 13% Music 26% Music 87%

Figure 31: Typical Example for Radio Multiplexes

3.3 Operators requirements

This section identifies the requirements from the different operators. Three types of operators are identified:

3.3.1 General [Source: Astrium]

The definition and the analysis of the different elements of the new value chain that will appear as a consequence of the evolution in the mobile multimedia services market is somewhat difficult. At present, the mobile network value chain is centred around the network operator which services are dominated from voice-based services.

The development of 3G mobile markets will have an impact on this value chain. The growth of Internet services and new end-user demands are challenging this traditional value chain.

New players and entities may appear on top of the network operator domain, such as service operators and applications operators (e.g. Content providers). Many network operators are already adopting new business strategies to broaden their role and to defend their competitive position. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 57

The figure below underlines the change in the value chain and shows the evolution of the network operator value in the total value of 3G mobile markets. Services and Contents will contribute more and more in the total value.

Figure 32: The value chain is changing (extracted from UMTS Forum presentation).

In the following sections a brief description of three categories of operators (infrastructure, service and application operators) is presented. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 58

3.3.2 Infrastructure operators

These operators provide and maintain the infrastructure upon which the communication links can established.

[Source Alenia Spazio]

3.3.2.1 Inter-working with PSTN networks

S-UMTS integration with the PSTN could be achieved on two level: A) at Gateway level B) at Access Level.

Integration at the gateway level is achieved in order to provide S-UMTS subscriber to PSTN subscriber end-to-end connectivity. At this level it will be necessary to realize a SCSS gateway function (SGCSS) that will be capable of converting the signalling procedures to be employed in the S-UMTS network into those currently defined by SSN7.

SDB SGCSS S-UMTS

Figure 33: PSTN to S-UMTS Gateway Function

The following provides a brief description of the different functional components:

 PSTN Gateway Switching Centre (PGSC): The PGSC is the exchange that provides the PSTN access to the S-UMTS network. All calls destined for the S-UMTS must be routed through this gateway.

 S-UMTS Gateway Cell Site Switch (SGCSS): The SGCSS is an exchange that provides the S-UMTS network access to the PSTN. It will provide the necessary signaling Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 59

conversion & Inter Working Functions (IWF) such as voice encoding and decoding, bit rate adaptation etc. in order to provide terminals interoperability.

 S-UMTS Data Base (SDB): The SDB will house the database containing information on the S-UMTS mobile terminals such as: location, terminal characteristics, service profile, security related parameters.

In addition, the SGCSS will have to provide the necessary IWFs in order to provide compatibility and interoperability between the S-UMTS subscriber terminals and the PSTN subscriber terminals. Due to the analogue nature of the PSTN, the type end-to-end tele- services that can be employed between the S-UMTS subscriber and the PSTN subscriber will be limited to speech and low speed (e.g. 10 kbit/s) data applications. Furthermore, since the signaling systems adopted respectively in the PSTN and in the S-UMTS networks will support different protocols, it is necessary to analyze which level of inter-working can be reached to ensure the addressing and routing functionality in an end-to-end connection between users of different networks.

Secondly at the access level, in order to provide an interconnect capability between the SCSS and the FES. The functionality at this level can be achieved by employing on-demand or permanent type of connections through the PSTN. As with the gateway, the on-demand type of connection will limit the type of the data that can be exchanged between the SCSS and FES as well as the transmission rate due to the fact that all data will have to be exchanged via dial-up modems. In the case of the permanent type of connection the above restrictions are removed as the bandwidth available to interconnect the SCSS and FES can be far greater (e.g. up to 2 Mbit/s).

FES FES SDB

S-UMTS SCSS PSTN

Figure 34: PSTN to S-UMTS Access Function

The following provides a brief description of the different functional components: Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 60

 S-UMTS Cell Site Switch (SCSS): The SCSS is an exchange that provides all the switching, service and management functions between the S-UMTS mobile terminals via the FES. As with the gateway, the SCSS will be coupled to a PSTN exchange and therefore it will have to provide the appropriate PSTN interface functionality. The type of interface functionality required will depend on the connection type employed.

 S-UMTS Data Base (SDB): The SDB will house the database containing information on mobile terminals in the same manner as for the gateway function described in section 1.2.

Fixed Earth Station (FES): The FES provides the terrestrial interface between the S-UMTS mobile subscriber terminal, via the satellite, and the S-UMTS CSS. As with the SCSS the FES is connected to a local PSTN exchange, via one or more POT connections or directly to the SCSS via a permanent leased line connection.

3.3.2.2 S- UMTS inter-working requirements with GSM (also possibly inserted as paragraph 2.3.5, at the end, as general requirement)

The ultimate goal of S-UMTS inter-working with GSM is to achieve full compatibility between both networks. Specific technical aspects will be evaluated by Technical Groups, herein we can focalize our description to the minimum set of requirements needed for the inter-working function between the two systems.

The level of integration is one of the most important factors in determining the system structure. From a user point of view it is important that the system offers the service they want, including value for money. The purpose here is to outline a reasonable level of integration from the users point of view and refer this to S-UMTS in terms of a list of requirements.

Considering that the GSM system has moved beyond the main development phase, solutions for the integrated system which would require significant adaptations to the existing protocols of the GSM mobile terminal or terrestrial infrastructure SHOULD BE MINIMIZED. Modifications should preferably be confined to the dual-mode MT for the integrated system.

The ground segment of the satellite sub-system can contain GSM modifications specific to the satellite network. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 61

The most important user requirements from an integrated S-UMTS and terrestrial mobile systems such as GSM are:

Users require a service that is portable and easy to use; This first requirement is straightforward. Dual-mode terminals should not be heavy and bulky. Of the terminal types envisaged, this condition applies specifically to handheld terminals. As well as being lightweight they must also be low cost.

Users require a service that provides value for money; Users will only subscribe to a service if it is of good value relative to their envisaged usage. A high difference between GSM and S-UMTS charges is likely: initial S-UMTS prices are likely to be high while future GSM prices are likely to be very reasonable. Aspects such as GSM to S-UMTS handover (low to high cost) as well as S-UMTS usage as a GSM backup (again, low to high cost) needs reconsideration in this light.

Availability of service globally; Availability in as many user environments as possible as well as a minimisation in user co- operation requirements are preferable. S-UMTS is extremely unlikely to work from most indoor locations. A user requirement to obtain a maximum sky visibility during a call is almost certain to apply to all S-UMTS terminal types. This needs to be taken into account when describing possible levels of inter-working.

Single contact number; Use of only a single user contact number has effects on the network architecture and on switching. It therefore has implications on network inter-working and the network operator.

Another very important set of requirements comes from the network operator. In general these requirements are necessary in order to allow the network operator to run the network efficiently.

Minimise GSM modifications; This is a straightforward situation. Significant modifications to the GSM system cannot be expected. GSM network operators will want to minimise the number of changes within their network. Therefore the main inter-working functions should be part of the S-UMTS system. Most of the new inter-working procedures must therefore be implemented at the S-UMTS side.

RF power efficiency; For S-UMTS, as with any satellite system, power availability is one of the most important system parameters. This is due to the limited RF transmit power available to satellites. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 62

Because of this satellite systems are very wary of excessive signaling over the air-interface. Not only would this use spectrum, but it would also use satellite power.

Signaling efficiency; An integrated terminal is currently assumed to monitor only one system at a time. This means that in idle mode the terminal monitors only one set of system paging channels in order to detect incoming calls. A registration / deregistration procedure is introduced for terminals which are turned on or off. When a terminal is turned on it registers with one of the systems available - GSM by default and only with S-UMTS if it is outside GSM coverage. Based on this, the network knows the domain over which to page a MT.

Location register inter-working; A MT terminating call initially arrives at a user HLR, or its S-UMTS equivalent. The next stage in the call set up process is to directly page the terminal or involve the users current VLR (or SVLR) and page the terminal from there. Based on the above reasoning, an important inter-working goal is that of providing compatibility between network location registers. In parallel with this examination, a specific examination of the protocols used between location registers is necessary. In the GSM system, MAP protocols are used. In S-UMTS both INAP and BAP protocol use is envisaged. INAP is the Intelligent Network based protocol envisaged to supersede the GSM’s MAP protocol. Specific work on obtaining compatibility between these two is required.

3.3.2.3 S-UMTS Operator requirements for data networks (Can stay as PARA 2.3.1, GENERAL, provided a) stays as 2.3.5)

As far as the UMTS standards are concerned, the current trend in 3GPP environment is to follow an architectural network solution based on the IP (all-IP solution). That means that:  All the information will be transported by IP packets, including the typical circuit switched applications, such as voice and videotelephony.  Mobility management is expected to be performed using IP addresses.  The all-IP solution will ease roaming with different networks  The operators could use standard IP technology to a larger extent, reducing the costs for the deployment and maintenance as a consequence.

Due to the delay in the standards development of the satellite segment in UMTS, all the network solutions and the related protocols for S-UMTS are expected to follow what have been already developed in the terrestrial case (to be evaluated…). Moreover, the all-IP solutions are expected to take in account the requirements raised by the Internet Engineering Task Force (IETF). IETF is strongly active in the definition of the requirements for the third generation of wireless IP. The very first of them says that all the requirements do Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 63 not take into account the access network, including the satellite one. This open platform allows larger economies of scale.

3.3.2.3.1 Description of the technical trend Driving the trend towards third generation wireless IP (3G-IP) technology are users' demand for perpetual ubiquitous access to the Internet, rapid proliferation of mobile Internet appliances, and providers' desire for deploying a flexible wireless IP platform that supports heterogeneous services economically.

The current perception is that the existing circuit switched and 1G/2G wireless systems will eventually evolve and merge into an UMTS solution.

It is envisioned that an end-to-end wireless IP platform comprising 3G wireless access networks IP backbone will support real-time and non-real-time multimedia services in the future. To allow Mobile IP to be a technical solution which supports many different kinds of access networks/technologies, Mobile IP functionality should be independent of the access network technology. For Mobile IP to be deployed in future cellular networks such as UMTS, it needs to interwork with, or operate in co-existence with, existing protocols in the cellular networks.

Emergent Internet quality-of-service (QoS) mechanisms are expected to enable wide spread use of real-time services between stationary nodes, for instance voice over IP and videoconferencing. There will be a demand for using the same kind of services when being mobile. Promising a certain level of QoS to a mobile user should be a firm requirement.

When network resources allow, there should be mechanisms to handle QoS for mobile users, particularly in case of handover and route optimization.

The differences between stationary and mobile nodes making use of QoS mechanisms should also be minimized, and network operators should not need to employ different QoS platforms for stationary and mobile users.

The emerging QoS architectures, Differentiated Services and Integrated Services, do not consider mobile nodes. Additions or changes may be needed. QoS mechanisms enforce a differentiated sharing of bandwidth among services and users. Thus, there must be mechanisms available to identify traffic flows with different QoS attributes, and to make it possible to charge the users accordingly. Thus, supporting roaming users is an essential feature of the end-to-end signalling and control system of IP network.

The development and the integration of the new IP version (IP v6) will allow supporting most part of these functions in a native way. Mobility, QoS and flow control are embedded in the new protocol version. The problem of the limited address space of the actual version (v4) of Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 64 the IP is also resolved in the version 6 though the adoption of a larger bit field for addresses (128 instead of 32).

By the way, it is not easy to foresee when (and if, someone says) the Ipv6 will be widely implemented.

3.3.2.1.1 Network Architecture Description A possible model architecture that can take in account the enhancement of the network performance, as explained above, is shown in the figure below.

UMTS UT MSC

VLR ISN FA HLR S-UMTS Access IP Network R SGCSS ISN HA HA FA IP UT Internet R R filter SVLR SDB SGCS S-UMTS Gateway Cell Site Switch R SVLR S-UMTS VLR SDB S-UMTS Data Base ISN Internet Support Node FA Foreign Agent HA Home Agent R Router UT User Terminal

Figure 35: S-UMTS architecture for data services Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 65

The Figure shows a solution based on client server architecture: the User terminals are the clients of the system whereas the network element, that allows the access to the IP backbone, is the server.

The network elements shown in the figure are now briefly described:

 S-UMTS Gateway Cell Site Switch (SGCSS): Acts as packet router between the S- UMTS access network and the IP backbone. At the S-UMTS access it shall manage the radio resources that are necessary to provide a particular service with its associated grade of service. It shall be able to negotiate all the necessary QoS parameters with the ISN. Using the information stored into the SVLR and SDB, it shall be able to manage the procedures for the Authorization, the Accounting and the Authentication of the mobile user.

 Internet Support Node (ISN): It shall be able to handle a session between the User Terminal and a remote ISN, or in alternative with another User terminal registered into the same domain. That means that it shall: - Be the server for the User Terminal;

- Be able to determine the destination address for the called party either within the same network or towards a remote network connected to the IP backbone.

- Negotiate the necessary QoS parameters with the IP backbone. The fundamental parameters to be negotiated are:

1. Throughput; this parameter determines the average bandwidth for each application.

2. Priority of the packets; voice applications as well as other real time applications need to have high priority in the transfer of the packets carrying the related information.

3. Packet jitter and packet delay; these parameters are strictly related to the priority.

4. Packet loss; again this parameter depends on the application.

 Foreign Agent (FA): this network element has to handle the mobility of the User Terminal by the help of the information stored into the SVLR. The FA shall manage the domain switch when the UT is Idle or the handover if the UT is active, in a hierarchical way by the use of Mobility Agents at different levels.

 S-UMTS Data Base (SDB): Also in this case, the SDB will house the database containing information on the S-UMTS mobile terminals such as: Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 66

- location; - terminal characteristics; - service profile; - security related parameters.

 S-UMTS Visited Location Register (SVLR): Holds information of all the registered Users under the S-UMTS network.

3.3.2.1.1 Requirements on session management in a S-UMTS environment An S-UMTS architecture based on packet switched data network, needs protocols and procedures that can satisfy the two fundamental requirements that define the UMTS: Mobility and wide range of services.

In this context, these two requirements can be translated in the following terms: - Support terminal as well as personal/user mobility. - Satisfy the quality of service (QoS) requirements of services, particularly those of real-time applications for roaming users, - Ensure privacy and security of the users as well as the network resources, - Perform billing and accounting, and - Maintain smooth inter-working with the public switched telephone network (PSTN) and its 1G/2G wireless access networks.

IETF has draft many of the standards that describe the aspects explained above, defining all the protocols capable to manage in a proper way the sessions related to the services foreseen in UMTS environment.

The definition of the UMTS standards by ETSI should take in account of the results given by IETF this will help the convergence between the mobile end the Internet worlds. In any case, the general requirements defined in IETF world shall be taken in account in any process of standardization.

The requirements for the protocols are summarized below:

 All the network elements shall be aware, in such a way, of the type of session is going to be set-up at any time. This aspect is fundamental because it can assure the adequate grade of service associated to each service. In IETF environment, the Session Initiation Protocol (SIP) has been defined for this scope. It assigns, at the different network hierarchies, all the duties that allow the provisioning of the service.

 All the procedures for the Authentication, Authorization and Accounting shall be defined. IETF has defined the AAA procedures for this scope. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 67

 Even when the session has been set-up, some network elements shall manage the mobility of the Users. The Mobility Agents (MA) have been defined by IETF for this scope.

3.3.2.1.1 Handover issues

As far as UMTS requirements are concerned, a mobile user will have the freedom to move from a domain to another without loosing any information in the passage. The maintenance of the integrity of the transferred information in the passage from cell to cell in 2G systems, has been (and still is) the hardest problem to solve. It depends on many factors including the speed and the direction of the Mobile User within the territory. For voice applications some good results have been reached that means that the probability to have a loss of communication is very low. For data applications, the problem still exists, at list for those services that need real time communication.

In a UMTS and S-UMTS viewpoint the problem is even harder because of the difference between the delay patterns (few milliseconds for the terrestrial case, hundreds milliseconds for the satellite one). The theoretical commonality of the radio interface for both systems and the projection of more efficient algorithms for this specific issue are not enough to solve this problem in all its aspects.

An IP based data network, the employment of Foreign Agents to perform predictions about the mobility of the User at various hierarchical levels of the network, can enhance the overall performances of the network in terms of handover.

In any case, also the solutions prepared by IETF in this matter can assure acceptable quality of service only for non-delay-sensitive and loss-tolerant applications.

The present results are not sufficient to deal with real time data or with jitter intolerant applications.

Many studies are on going for this aspect. They foresee algorithms and procedures that use a large amount of signalling to be exchanged among the User Terminal and the various Network Elements involved in the process. On the other hand, the scarce radio resources of the wireless systems, included UMTS and S-UMTS, suggest finding a compromise solution for this matter. In summary, from an Operator point of view the requirements for handover procedures are:

 The optimization of the radio resources; and

 The optimization of the prediction algorithms in the network elements, that means a reduction of inter-node signalling within the network. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 68

3.3.3 Service operators These operators provide user with terminals and with services (help desk, billing, roaming, etc).

[Source: Astrium]

The new business opportunities with UMTS are adding new market segments to the existing and traditional telecommunications market. UMTS will offer new opportunities for service provision, such as:  Fast mobile multimedia capabilities.  Location.  Service portability.  Personalised and ubiquitous communication capabilities.

The question may thus arise about which services will result from UMTS. It is not easy to answer precisely to this question but it is foreseen that most mobile users will use the Internet in different ways from personal computers users: they will go for short messages and quick transactions rather than leisurely browsing. By carefully developing and pre-selecting useful Internet-based mobility services with competitive tariffs, the user will be encouraged to buy into UMTS services.

The convergence point for supply of information and entertainment will be the Mobile Multimedia Portal. As the end-user’s preferred point of entry into all IP-based services and content, the portal is where the customer interacts with the entity that provides the services.

Three main categories of service might be distinguished:  Mobile ISP.  Mobile Portal.  Mobile Specialised Services.

Figure 36: Service operator positioning (source UMTS Forum). Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 69

The most promising service is certainly the mobile portal, which represents the real entry point to the service operator offer. It is thus one of the most important requirements for the service operator.

Defining a Portal:

A portal is an entry point to a wealth of information. It can be personalised, it will deliver content according to device’s characteristics and user’s needs. Success factors:  Find expected information quickly.  Personalisation.  User location + information.  Harmonised user access for global roaming.

Figure 37: Example of a Portal for different applications (UMTS Forum).

Different types of Portal can be envisioned:

 Content oriented Portals: tailored search catalogues, vertical Portals.  End-user oriented Portals: tailored to user groups, to terminal characteristics, Intranet Portals.  Convergence oriented Portals: multi-access Portals, multi-device Portals, multi-lingual Portals. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 70

Figure 38: Forecasted evolution of Mobile Portals (source UMTS Forum). The need of a Mobile Multimedia Portal Platform is a key element for the service operator:  It is a key element in the control chain: o Where the user interacts. o Where Services are managed to users’ needs/profiles. o Where Service Portability is controlled. o Where Application dependent parameters are derived.  Subscriber policy management on the applications level.  Harmonised entry to content based services.

 QoS, Security Control and charging related Applications Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 71

3.3.4 Application operator These operators provide users with applications to be used with the user terminals. For instance this could be internet surfing, gaming, etc. Some could imagine that requirements on the type of embedded software to be run on the user terminals may be imposed.

[Source: Astrium]

Providing the Portal does not imply creating the applications or the content. Content feeds are likely to come from existing content providers but with subscriber data being captured by the Service Operator.

It naturally follows that the first applications should focus on building the subscriber base and increasing airtime. Next should come applications, which drive subscriber profile data capture, such as personalised subscription based content, push and wireless personal information synchronisation. Only after building the profile database can mobile e-commerce and advertising be successful.

[Source: Astrium]

Choice will be key to development of the broadcast business. Broadcast consumers will demand a wide range of services and broadcasters will need to choose delivery methods that suit the circumstances, ranging from sending the same programme to millions, through to delivering personalised multimedia content to an individual mobile user. 3G could deliver the latter, but there are many scenarios in between that serve to illustrate a business driver, from the broadcasters' perspective, for close co-operation between broadcast and cellular networks. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 72 Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 73 Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 74

4 Market Sizing

This section provides volume estimates regarding:  The number of users;  The users distributions in the satellite coverages (it is assumed here that the world market is addressed, not only Europe).  The number of active users (needs an estimate of the daily traffic distribution following time of day and type of users and applications);

Need to be placed in respect to the positioning of the satellite systems wrt to terrestrial ones (volume exercise).

[Source: Astrium]

Traffic volume forecasts for satellite depend upon a number of factors that are influenced to a greater or lesser degree by the perception of the forecaster. Such factors are the perceived user demand for new services, the build out factor of terrestrial networks, and the perceived willingness of the user to accept the cooperativity constraints imposed in communicating via satellite systems.

In this chapter, reference is made to the results given by the UMTS Forum. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 75

Worldwide EU Year 2005 2010 2005 2010

MSS Subscribers (000s) Non-Multimedia 4,875 7,500 609 938 Multimedia 6,585 10,975 395 659 11,460 18,475 1,004 1,596

Average Usage per subscriber (kBs per month) Non-Multimedia Voice 8,709 8,491 8,709 8,491 Low Speed Data 6,208 5,587 6,208 5,587 Multimedia Voice 1,194 1,561 1,194 1,561 Low Speed Data 2,584 3,380 2,584 3,380 Asymmetric 26,154 34,247 26,154 34,247 Interactive 1,781 2,334 1,781 2,334

Total Annual Traffic (Million MB's) Non-Multimedia Voice 509 764 64 96 Low Speed Data 491 736 45 63 Multimedia Voice 94 206 6 12 Low Speed Data 204 445 12 27 Asymmetric 2,067 4,510 124 271 Interactive 141 307 8 18 Total 3,506 6,968 259 486

Annual Traffic (Mill. MB's) - excluding non UMTS/IMT-2000 compliant traffic Non-Multimedia Voice 34 123 4 15 Low Speed Data 33 119 3 10 Multimedia Voice 94 206 6 12 Low Speed Data 204 445 12 27 Asymmetric 2,067 4,510 124 271 Interactive 141 307 8 18 Total 2,573 5,710 158 354

Figure 39: S-UMTS Traffic Volumes (Source : UMTS Forum) Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 76

5 The Mobile Satellite Business Model

Figure 40: 3GPP Business Model

5.1 General introduction

[Source: BT]

A key component of the business plan could be broadcast/multicast services. These services could be a key component of 3G+ services. This type of service may be implemented within the business model in a number of ways depending on the applications & services that are delivered and what platform is used to deliver them.

A broadcast satellite platform could be:

 Stand-alone (e.g. the DAB platforms being deployed now), in which case the customer may have a separate terminal or a dual service terminal. The services could be free (e.g. entertainment services subsidised through advertising revenue), or subscription based (public/private data or entertainment services).

 Integrated with an MSS platform/service. This could be through an agreement between an MSS operator and a DAB operator to support both service types to a single user terminal, or by an MSS platform including a broadcast channel capability. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 77

[Source : Alcatel Bell Space]

5.1.1 Future Generation Mobile Satellite - Value Chain & Business Model We are undergoing a radical change: from the industrial era to the information and tele- activity or e-activity era. Tele-xxx1 (or e-xxx) in terms of e-business hence e-commerce and e- marketplace, tele-education, tele-working, tele-medicine, and tele-trading to name a few; the future tele-activities such as tele-surgery and any other far-reaching ones are only limited by our vision and applications.

The hallmark of this era might be described as "the ability and the freedom to conduct our activities from anywhere and at any time2 while stationary or on the move”. The net effect of e-activity on the service industry is the emergence of user-led service packages, which are “user-friendly”; hence a soaring demand for tailor-made integrated services, where “flexibility” is now the brand name. The quest for such packages is also fuelling the rapid convergence of communications, computing and consumer goods markets into the C3 market, and that of the telecom and IT, in particular Internet. E-activity is in line with the UMTS vision of “anyone, anywhere and anytime”. Satellite, both fixed and mobile, is best placed to cater for the “anywhere and anytime”, but the “anyone” notion needs to be qualified in terms of the cost and ease of usage hence user-friendliness.

5.1.1.1 Value chain

In the mist of this radical change, it is very difficult to separate the user from provider, the producer from consumer, the service from application, the needs from demand, the luxury from necessity.

In such a competitive market, an enterprise model replaces the traditional value chain model for providing more robust and representative state of affairs between providers and customers. The figures below give an indication of such an enterprise model where the service, application and content providers are now considered as customer-facing entities.

Through such a model different business models may emerge.

Wireless data market will sooner rather than later establish alliance with these providers. In this relationship, wireless portals will be key partners, which may also provide the location- based services for the mobile users, and share the advertising revenue with the connectivity providers. In some cases the connectivity provider may also become an ISP (Internet Service Provider).

1 Nowadays market refers to the tele-xxx as electronic or e-xxx, this document uses either or both two terms.

2 i.e., 24 hours a day and seven days a week (or the so-called 24x7). Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 78

Similarly, the billing scenarios, according to the ARC group, may take on a hybrid of flat fee, per-use basis, subsidised pricing for free service. The figure below refers to, and elaborates on, the ING BARINGS path-to-riches model by including the location-based services, and the new venue for advertising revenue. These services will be from the nearest amenities, e.g., nearest petrol station and restaurant, to emergency units and navigation services, e.g., area map. Such a path to “riches” is becoming the norm for operators wanting to be competitive in wireless/mobile Internet.

Revenue capture Operators E-commerce, Fixed, Location-based service, ISP Portal Mobile Advertising source: ING Baring [ING] Figure 41: Example of generic value chain

Figure 42: Example of enterprise model Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 79

The terrestrial mobile operators are trying to preserve their “walled Garden 3” approach of their 2nd generation mobile for offering multimedia. That is, they are trying to be customer-facing providers in terms of content and application as well as their traditional connectivity provider role. In this respect, they are trying to form alliances with content and application providers through co-operation hence MOUs as well as mergers and acquisitions.

The Future Mobile Satellite (FMS) enterprise model can follow suit, but due to the inexperience of the FMS entity in the “customer facing” activities it will probably do best to follow an evolutionary approach, offering its services to these providers. The following figure gives such an approach in terms of the connectivity provider, and the mobile provider, which directly deals with customer-facing entities.

FMS space entity FMS license, orbit, coverage & agree frequency usage Provider

mission provider agree usage P/L provider agree on interface(s) agree on interface(s) Mobile provider Gateway User/ provider subscriber

PLMN or other connectivity off-line interaction & specification providers, off-line interaction on-line interaction e.g., Internet backbone on- & off-line interaction FMS: future mobile satellite, e.g., S-UMTS

Figure 43: Future mobile satellite (FMS) systems enterprise model

3 Captive subscriber hence closed network approach. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 80

5.1.1.2 Business model

The following only reflects the evolutionary approach for the future mobile satellite in terms of the connectivity providers, and that of its relationships with other providers.

5.1.1.2.1 Complementary hence gap-filler In this scenario, satellite is seen as complementary arm of the terrestrial network both fixed and mobile, where the latter is the UMTS vision.

In this respect, depending on the agreement, the satellite access provider may take the role of:

 The traditional capacity, i.e. space segment provider: a mobile connectivity provider, such as Vodafone AirTouch will strategically place and operate satellite gateway(s). It offers mobility and multimedia through both satellite and terrestrial accesses. It is up to this provider to direct the traffic using either access media hence setting the corresponding tariffs. In this scenario, a single connectivity provider may have the exclusive right of offering satellite-based connectivity.

 ‘Managed access’ provider: the satellite access is managed by the satellite and gateway providers. In this respect, the mobile satellite access provider remains as an independent connectivity provider offering its service to multiple connectivity providers in the same or in different regions. These providers will then act as the customer-facing providers.  Others.

5.1.1.2.2 Mobile Virtual Network operators Mobile virtual Network operators (MVNO) refers to the current trends in the terrestrial mobile environments. In this scenario, a 3rd party service provider, through an (individual) agreement, uses the already in-place mobile infrastructure for offering its services to its customers, E.g., Virgin in UK uses the One-2-One network for its service offering.

This is going to become a norm since the number of the 3 rd generation licences is very small in comparison to those who want to benefit from such a licence. In this respect, an operator with, for instance, the 3rd generation licence will be in position to serve the needs of multiple 3rd party operators hence leveraging the high cost of its network(s) and that of the 3rd generation Licence fee. In this scenario, the licensee may solely remain as “managed connectivity” provider, and the MVNOs will be the customer-facing entities having agreements with the application, content, and mobile providers. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 81

In so many respects, such a scenario may be the business model for the mobile satellite both current and future, that is:

 A small number of licences will be awarded in view of (available) satellite frequencies,

 The cost of having space segment in place is quite high,

 The satellite infrastructure, i.e., space and ground segments, is normally managed by a single entity,

 This entity is comparatively lacking in experience of access market hence customer-facing know how.

This scenario may also suit the emerging wireless portals and content providers such as location based services and so on. The most important issue and key advantage of the MVON offering by FMS (Future Mobile Satellite) is that it can offer services to:

 operators adopting the “Walled Garden” business model, and

 operators adopting “open” business model, which is in line with the Internet concept –e.g., to (wireless) portals and content providers.

5.1.1.2.3 Specific market As mentioned already, e-activity is in line with the UMTS vision of “anyone, anywhere and anytime”. Satellite, both fixed and mobile, is best placed to cater for the “anywhere and anytime”, but the “anyone” notion needs to be qualified in terms of the cost and ease of usage hence user friendliness.

The cost remains the main factor in the uptake of the mobile satellite based access. This cost is much due to the transponder cost as well as the terminal cost. The ease of usage has much to do with size and weight of the terminal, and that of user friendliness of the offered services. The user friendliness can be similar to that of the terrestrial mobile service. In addition to high service cost due to transponder, the size and weight of the terminal will add to user hesitancy hence a slow uptake of the service in both horizontal and vertical markets.

Mobile satellite will therefore do best to find an evolutionary access market in which users will use it in a transparent mode aboard a high-speed train, ship and plane. This has been termed as “collective configuration” (see Reference [2]).

In this scenario, the satellite will provide access to a ‘picocell’ base station which is housed within a train, plane, and ship – i.e., mobile base-station where users use its terrestrial mobile Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 82 terminal. In this respect, the train, plane, and ship operating companies may offer such connectivity, and therefore form a new breed of providers, or they offer their services to other connectivity providers such as Cellnet. In the former case, Virgin is well placed to be both the train operator and connectivity provider.

The so-called “individual configuration” (see Reference [2]), is considered for the commercial trucks, vans and buses as well as cars (e.g., Mercedes) with a similar approach. In this scenario, the car, truck and bus manufacturers may well integrate the in car/truck/bus navigation, entertainment and communications (NEC) offering simple yet effective service for the driver and passengers. These manufacturers and/or their dealers may have alliance with mobile connectivity providers, and therefore become part of the value chain of mobile satellite/terrestrial connectivity providers.

Through such specific markets, the uptake of the mobile satellite business may be improved. At the same time, the advent of new access technologies may bring down the size and the weight of the terminal as well as transponder costs.

Please note that the specific markets above can also be served by the business models of sections 5.1.1.2.1 & 5.1.1.2.2.

5.2 Public interest markets

5.2.1 Traffic Model

5.2.2 Business Model

5.2.3 Summary

5.3 Mass markets

5.3.1 Traffic Model

[Source: Astrium]

5.3.1.1 Broadcasting-Satellite Networks

Traffic modelling (from Reference [6]) inputs are three fold:

1. Service requirements (data rate); 2. Number of transmission channels estimates; 3. Hourly distribution of transmissions. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 83

The first point is treated in section 2 of the present document.

The second point implies that traffic model can only be valid on a given area as estimates are necessarily regional figures.

The following figures result from an analysis for fix-reception services based on primary research and analysis of existing services. For Western Europe : - number of digital television channels: 1200 in 2005 to 1700 in 2010. - number of rich media services transmissions: 1500 in 2500 to 3000 in 2000.

The figures given hereabove would have to be corrected for a mobile reception modelling as the demand for number of channels would certainly be lower.

Finally, for hourly distribution of transmissions, we can consider the following model whose source is newsgroups traffic analysis on the Internet, that is supposed to be a good reference for broadcasting on mobile terminals: - 2 peak days per week (Saturday and Sunday), representing double the traffic than an off peak day - 4 peak hours per peak day during which 50% of traffic is carried

This gives the following breakdown of live broadcast per peak day / peak hour :

Peak day (Saturday Off Peak days and Sundays) (week days) Peak hour (4 hours per day) 27,5% 22,5% Off Peak hour (20 hours per day) 27,5% 22,5% Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 84

5.3.2 Business Model [Source: Astrium]

The figure below illustrates the different elements in the value chain of third generation mobile market.

Figure 44: The business chain (source UMTS Forum) In the 2G mobile markets, operators were focused on the network infrastructure and network applications.

In 3G, new elements will appear such as service operators (SP), portals and content providers. An evolution of the value chain may thus be foreseen with less value to the network operator and more value for the service provision and content provision as illustrated in the figure below.

Figure 1: Changes in the value chain (extracted from UMTS Forum presentation) Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 85

The business model of mobile operators may evolve to take into account these modifications. A more complex model including partnership between several operators (infrastructure operators, services operators and applications operators) may emerge:

Tomorrow´s Business Model

Access Network Operator

Service Content Providers Broker

Service Providers Value Added ISP or Corporate Service Providers

Subscriber Core Network /User Operator

Figure 45: Tomorrow's business model (source ESA study). It is thus very complex to build a precise business model but it is possible to underline some business plan guidelines. The UMTS forum has distinguished two business models: the partnership model (where roles are maintained via cooperation) and the ownership model (where a single operator mix two roles: network operator and service operator).

Figure 46: Partnership model: UMTS and Internet business roles maintained via co-operation (source UMTS Forum). Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 86

Figure 47: Ownership model: UMTS and Internet business roles in one ownership (source UMTS Forum). The 3G Mass Market will be based on many different services such as:  Entertainment (Audio streaming, video streaming, web browsing).  Information (information push, broadcasting).  E-commerce.  Location based services (Navigations and maps, local information).  Customer service and remote diagnosis (Information, file transfer).

This mass market will certainly be a highly competitive one and an operator may thus prefer the second business model (ownership model) in order to increase its assets and reach more potential users. In this case, the satellite component of UMTS might be integrated with the terrestrial component to provide added services or complement the terrestrial offer. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 87

5.3.2.1 Broadcasting-satellite [Source: Astrium]

We will consider in this chapter the provision of integrated services through satellite to either car or handheld/portable device (see Reference [6]). Possibility for bundled offering of satellite services with terrestrial services will be contemplated.

5.3.2.1.1 In-car terminals

A unique service provider packages the combined in-car satellite + IMT-2000 offer, manages telecommunications resources including the lease of satellite capacity, markets the service and possibly subsidises the terminal.

Two major categories of market organisations are likely to develop:  Scheme 1: Open access The in-car Internet terminal does not come bundled with an Internet access service, leaving all freedom to consumers to choose an ISP for their in-car Internet access. In this scheme, the service provider is an ISP.

 Scheme 2: In-car Internet access in control of car manufacturers The in-car Internet access terminal is bundled with an Internet access service. In this scheme, the service provider is either an ISP, either the car manufacturer itself, either a joint venture between both.

In both schemes, the Internet access service is a car-only service or a customisation of a multi-platform service.

It is the role of the service provider to:  Contract single services on a flat fee or revenue sharing basis  Rent satellite capacity  Manage the complementarities between IMT-2000 and satellite. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 88

Consumer

Marketing of service Sale/ Subsidiation of terminal

Terrestrial Service Satellite capacity telecoms operator provider operator Provision of telecoms resources Lease of satellite capacity Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 89

3 different major market organisations can therefore be contemplated:

Market Service Description Business Restraints Enablers organisation provider models Scheme 1: Multi- The customer In-car Internet No incentive of Strong Open access networks has one access ISPs to subsidise advantage to in-car ISP unique bundled in the the terminal for terminal provider for all general Value added of customers to its Internet Internet satellite+IMT-2000 use one accesses access solutions Vs IMT- unique ISP service 2000 only solutions for the customer ? Scheme 2 Multi- Choice of an Free Multiple Possibility of (1): bundled networks ISP is access+time subscriptions for ISPs to Internet ISP mandatory to Flat fee Internet access subsidise the access and use the in-car No strong terminal in-car Internet involvement of car terminal access manufacturers in service. the launch of service Value added of satellite+IMT-2000 solutions Vs IMT- 2000 only solutions for the customer ? Scheme 2 In-car Choice of an Free Multiple Strong (2): bundled manufactur ISP is access+time subscriptions for involvement Internet er mandatory to Flat fee Internet access of car access and use the in-car Value added of manufacturer in-car Internet satellite+IMT-2000 s in the terminal access solutions Vs IMT- launch of service. The 2000 only solutions service ISP is the car for the customer ? manufacturer itself.

In all cases, satellite transmission capacities are provided on a lease basis. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 90

5.3.2.1.2 Mobile handset and portable device

In this case, satellite is used to push any Web content to specific IMT-2000-based mobile handsets. The service is either operated in co-operation with IMT-2000 operators, either without any commercial co-operation.

 In a first scheme, a stand-alone operator markets an Internet access service combining broadcast satellite (for push rich media) and IMT-2000 (for full Internet access). The operator: *0 Markets a specific IMT-2000-based mobile handset; *1 Lease satellite capacity *2 Leases IMT-2000 capacity (mobile virtual network operator concept: an operator can operate IMT-2000 services without having obtained a licence b by renting capacity from the licence owners).

 In a second scheme, a stand-alone operator markets a satellite only service.  In a third scheme, an IMT-2000 operator markets a specific service / handset combining terrestrial and satellite networks, providing improved Internet access functionalities. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 91

Scheme Service Description Enablers Restraints provider Scheme 1: New Satellite+lease of High quality High cost of entry stand-alone entrant IMT-2000 attractive to market specific service (1) service for push programming on handsets and two-way high quality Higher cost for services terminal specific handsets for uncertain customer advantages. Scheme 2: New Satellite only High quality Higher cost for stand-alone entrant service for push attractive specific handsets service (2) only services programming on for uncertain high quality added-value for terminal customers Scheme 3: co- IMT-2000 IMT-2000 Easier marketing Higher cost for operation operator operator lease of specific specific handsets additional handsets for uncertain capacity for added-value for specific IMT- customers 2000 service Incentive for IMT- 2000 operator to market the new services ? Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 92

5.3.3 Summary

[Source: Astrium]

5.3.3.1 Broadcasting-satellite We can make a distinction between on the one hand provision of services to cars and on the other hand provision of services to handsets and portable device.

In the first case, the service provider can either be the same ISP as for at-home access that uses the satellite for the continuity of services (this option is only possible if open access to the terminal is ensured) or a specific service provider for in-car services. In this latter case the car manufacturer is involved in the service provision (as it “owns” the access to the terminal).

Billing is different in both cases as the at-home ISP can include fees for access from cars in its tariffs (for a premium) whereas dedicated in-car Service Providers can sell the service for a flat fee. In this latter model the main enabler is the possibility for subsidising the terminal that should ensure rapid growth of park of terminals. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 93

5.4 Niche markets

5.4.1 Traffic Model

5.4.2 Business Model [Source: Astrium]

Two niche markets seems interesting for satellite:  vehicular market.  business market.

Example of vehicular market services:  Message services (broadcasting, mail)  Internet and web browsing (including e-commerce)  Entertainment (audio streaming, video streaming, information, web browsing)  Location Based services (Navigation and maps, traffic information)

Example of Business market services:  Company intranet access (mail with attachments, multimedia)  Message services (broadcasting, mail)  Internet and web browsing  Customer service and remote diagnosis (information, file transfer)

In this two niche markets, the operator will provide some specific services to the final customer thanks to particular assets of the satellite component of UMTS (such as large coverage, broadcasting capabilities,…).

As the targeted market is very different from the mass market, the business model may also be different. This niche market may not be a highly competitive one compared to the mass market and highly specific services is maybe one of the key success factors.

Thus, in this particular case, the two business models (partnership and ownership model) might be envisaged.

On the one hand, the service operator may develop specific services for the satellite component and may rely on the network operator to deliver its services to the final customer. On the other hand, the network operator would rely on a few number of service operators to fill the satellite capacity. There is thus a natural relation of partnership between service and network operators. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 94

5.4.2.1 Broadcasting satellite systems

Broadcasting content to mobile LANs (Local Area Networks) as e.g. coaches and trains can be considered as a potentially interesting niche market for satellite (from Reference [6]). As a matter of fact, travellers in these transport means remain unconnected to the outside world during the transportation time as IMT-2000 and DVB-T networks are likely not to ensure mobility services at high speed with indoor coverage.

A package of content (TV programming and travel-related services) could be proposed to passengers of long distance trains and coaches as an in-board television channel. Passengers access the service on individual in-board terminals, or on their personal IMT- 2000 terminals.

The broadcast content to mobile LAN is likely to be specific to the mobile/travel context and therefore similar to some of the services described for the direct to in-car market. The following examples give an idea of the main services than could be delivered to mobile LAN:

- Traffic information services, - Travel information services, - Segmented news services (sport, current affairs),

Additionally, a broadcast TV programming service could be envisaged, either on a download basis or a broadcast basis (equivalent to an in-flight service). But the service should be able to compete for existing videotape based services in coaches.

In terms of technical configuration, services to mobile LAN are very close to cable networks head-ends feeding services for satellite operators. Satellite will address IMT-2000 points of presence for instance, located in terrestrial mobile LAN (any collective transport vehicles).

This kind of services will likely be a niche market for the broadcasting satellite in the next few years. Broadcast content will have to be as generalist as possible, as the satellite will cover a wide geographical area. It will not be economically viable to broadcast local information ant that will reduce the range of potential services. Indeed, the most interesting traffic or travel information services which may be proposed to consumers on mobile LAN will be local information, i.e. content linked to a limited geographical area. On this market, it will certainly be very difficult for broadcasting satellites to compete with IMT-2000 or LMDS technologies. Big media companies, who have a multi-support development strategy, may be interested in developing some services dedicated to these mobile LAN. Meanwhile, the development of this market may be low as content providers could be reluctant in creating new services for mobile LAN if the technical infrastructure is not yet very deployed. At the same time, mobile LAN operators may hesitate to develop many points of presence if no content services are available. Moreover, specific terminals have to be designed. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 95

As in the case of in-flight services, we envisage the following market organisation: a service provider manages the fleet of embarked terminals, assemble a programming and market the service. Transportation companies may be a part to the service provision, assuming that in- board entertainment could be a competitive advantage. Services may be advertising-funded or pay-services, provided that individual reception is available. However, of note is the fact that in-flight pay-per-view services have not experienced any strong development, air-planes companies tend to consider in-flight entertainment as a "goodie" for their customers. Satellite capacity may be provided on a lease basis. Satellite operators may also be a part of the service provision operations. Ref : Doc AMSF-TF/CG(01)/T/001 Issue : 1 Rev. : 4 ASMS-TF / CG Date : April 26th, 2001 Page : 96

5.4.3 Summary

[Source: Astrium]

5.4.3.1 Broadcasting-satellite systems

A package of content (TV programming and travel-related services) could be proposed to passengers of long distance trains and coaches as an in-board television channel (see Reference [6]). Passengers access the service on individual in-board terminals, or on their personal IMT-2000 terminals.

A service provider manages the fleet of embarked terminals, assemble a programming and market the service. Transportation companies may be a part to the service provision, assuming that in-board entertainment could be a competitive advantage. Services may be advertising-funded or pay-services, provided that individual reception is available.

Satellite capacity may be provided on a lease basis. Satellite operators may also be a part of the service provision operations.

6 History

Document history March 2nd 01 ToC Creation Issue 1 Rev 0 March 30th 01 ToC Update Issue 1 Rev 1 April 10th 01 Content created from various inputs Issue 1 Rev 2