Corporate Planning & Monitoring Cell, 614, Bharat Sanchar Bhavan, Janpath New Delhi: 110001 sanjeevverma@bsnl.co.

in

No: 1-196/2010 CP&M/FMC/Imp/1 To,

Dt: 15/09/2010

CGM (Karnataka Circle) / CGM (Maharashtra Circle) / CGM (Punjab Circle) / CGM (Kolkatta Telecom District) CGM (QA) / CGM (Inspection Circle) / CGM (BNW) / CGM(STR) Sub: Proof of Concept (PoC) of Fixed Mobile Convergence (FMC) in BSNL Network 1. This is with reference to the EOI floated by the Corporate office for initiating Proof of Concept (PoC) of Fixed Mobile Convergence (FMC) in BSNL Network. 2. The EOI has been finalized. The details of bidder shortlisted through this EOI for initiating PoC of FMC along with distribution of Zone and current status are give below.

3. The Advance Work Order has been accepted by the first three bidders and the Work Order is expected to be issued by Sept 2010. 4. The broad details of the EOI are given in Annexure I. As part of the EOI, the PoC is categorized into two phases with each phase having a converged voice and converged messaging component. BSNL has to provision for requisite space, power, connectivity with existing mobile and broadband / IP network. The time lines for each phase is (i) Installation and testing within 90 days of issue of Work Order (ii) Offering beta service to end customer along with their usage and feedback in the next 90 days 5. The focus, to start with, is on converged voice using existing mobile switching network as it will pave way for seamless handover of voice calls across both GSM and IP network (DSL, FTTH, Wi-Max etc). This will also provide insight into the migration of our existing TDM based PSTN network to IP based Next Generation Network. 6. The diagrammatic representation of the same is indicated at Figure 1A. a. As the network indicates, the existing MSC (combination of MSC-Server and Media Gateway) deployed as part of GSM network will be leveraged for providing seamless voice connectivity to

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the IP customers provisioned through DSL, FTTX, Class V NGN Switches, Soft client working in Laptop etc. b. The key element is a SIP-BSC device also called FMC Server which interacts with the IP network on SIP and with existing MSC on standard A interface, working like any other BSC. c. The IP landline customer will reap the similar benefits as is available to any mobile customer for voice service. d. The network shall also support seamless call handover between mobile and IP device using Virtual Call Continuity (VCC)

Figure 1A: Converged Voice Core for GSM and Landline Network
IN SMSC Other Applications

Application Layer, independent of Core

Voice Core
HSS MSC - Server

Media Gateway

SIP BSC

BSC

BSC

RNC

NIB II MPLS Network + Multiplay Network

Communicating on SIP protocol

DSLAM/ LMG

BTS + Node B

GSM set Can communicate with CPE on Wi-Fi For voice and data

Landline customer using GSM mobile voice core. To be extended for Wi-Max, FTTX etc

7. The important value proposition that is expected from the said convergence as part of Phase I is given below: a. Effective utilization of Spectrum leading to optimization of CAPEX and OPEX: An independent study has revealed that in 60% of voice calls are made from office or residence i.e. customer is not really mobile. Through a converged core, one can transport such calls using huge BSNL DSL infrastructure thereby catering to more number of users. This leads to better utilization of spectrum and also increasing the efficiency of BTS as BTS shall be effectively carrying only true mobile calls. This will obviate the need for planning of more BTS and other associated infrastructure with increase in traffic thereby optimizing the CAPEX and OPEX as around 85% of the GSM network cost is associated with access infrastructure.

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b. Increase in Quality of Service: The voice quality inside building (office or residence) is still below the desired level. By transporting all such calls through the alternate DSL infrastructure, BSNL can offer landline voice quality even to the mobile customer. c. Seamless Call handover: The SIP-BSC and / or FMC Server in conjunction with existing MSC-Server also facilitate seamless call handover in Dual Mode GSM Handset (GSM with WiFi capability) between GSM radio network and IP network for voice calls. d. Enhanced broadband capability for GSM customer: The Wi-Fi capability in Dual Mode GSM handset can also be used for offering enhanced broadband capability to GSM customer using our DSL network as is available to any other wireline broadband network, e. Migration path of legacy PSTN Network: The converged core will also provide platform for migration of around 28 Mn landline customers being served through legacy network to NGN platform. 8. Action From Field Units: a. Constitution of Task force: The PoC will start in Bangalore, Pune and Chandigarh on immediate basis. The CGMs of respective Circle is requested to constitute a task force comprising of following members and communicate to this office. i. PGM / GM level officer of Consumer Mobility as Chairman ii. DGM (NWO-GSM) - CM as member iii. DGM (NWP / NWO BB) as member iv. DGM (EB) as member v. One DGM Level Officer from BBNW Circle as member - To be nominated by CGM (BBNW) for Bangalore and communicated to CGM (Karnataka) vi. One DGM Level Officer from CGM (STR) responsible for MPLS operation at bangalore as member - To be nominated by CGM (BBNW) for Bangalore and communicated to CGM (Karnataka) vii. One DGM level officer from Inspection Circle as member To be nominated by CGM (Inspection Circle) for each Zone /City and communicated to respective CGM. viii. One DGM level officer from QA Circle as member To be nominated by CGM

(Inspection Circle) for each Zone /City and communicated to respective CGM b. Discussion with respective SI / Technology Partner: On constitution of task force, this office will direct the concerned SI / Technology partner to have a one-to-one discussion with the said

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task force to understand the ground level situation and work out the detailed plan with timelines for PoC including integration with the existing GSM, broadband, MPLS Network elements c. Finalization of Test Cases: The detailed EOI document is uploaded in the Intranet, along with this letter. There are various sets of functionalities that have been specified for both Converged Voice and Messaging as part of both Phases. To test those functionalities, the shortlisted bidder shall be submitting detailed test cases to the Chairman of the task force thus constituted. The same needs to be finalized by the task force in discussion with the concerned bidder / technology partner. d. Testing the PoC related to various functionalities: Once the Installation of the various Network elements are completed by the bidder, the task force has to carry out test of the various functionalities as per the test cases mutually agreed upon and record the observation e. Offering of Beta Service to end Customer: On satisfactorily completion of the Installation and testing, the beta service is also planned to be offered to end customers. The task force, during the course of testing, has to also deliberate on the services with significant value proposition, that can be offered to end customer. f. Periodic feedback to Corporate Office: Each Nodal Circle / SSA shall furnish periodic report on a fortnightly basis to this office on the progress made in the said PoC. Any Issues / Clarifications may also be referred either telephonically or through e-mail or through letter, as deemed necessary. The periodic review of the same shall also be conducted at the Corporate Office at the level of CMD / ED (CA). Encl: 1. Annexure I (Through Intranet) 2. EOI terms and Conditions (Through Intranet)

(SANJEEV VERMA) Dy, General Manager (Corporate Planning & Monitoring II) Copy To: [1] CMD for information please [2] Directors (CFA, CM, Enterprise) for information please [3] EDs (CA, NB, CN, Finance) for information please [4] All CGM (Telecom Circles / Metro District / Project /Region/Training Centres) for information please [5] PGM (CP&M) / PGM (Regulation) / GM (NWP CFA) / GM (NWP-BB) / GM (NWP-GSM-I) / GM (NWP-GSM-II) / GM (NWO-GSM) / GM (CNP) / GM (CNO) for information please [6] M/s TCIL / M/s Sterlite / M/s TeraComm for information and necessary action please

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Annexure I Broad Details of the PoC of Fixed Mobile Convergence in BSNL Network 1. EOI Objective: 1.1 The express objective of the Pilot is to evaluate the offered FMC solutions and shortlist those that meet BSNLs requirement. Short listed bidders meeting the said criteria shall be eligible to participate in tenders for large scale FMC roll out in BSNLs network. 1.2 The offer of pilot deployment for up to 10,000 customers in each PoC site shall be evaluated for well defined criteria. The criteria will be defined in consultation with the shortlisted bidders before the award of PoC. 1.3 The results of the pilots shall help in finalization of the scale-up model for large scale deployment. Hence, the operations-wise objective of the pilots is to help the duly constituted BSNL Task Force team to learn the intricacies of the technology and establish all processes on an end-to-end basis as a model for large scale deployment for purposes of subsequent tendering. 1.4 The proposed pilot shall be deployed without any direct upfront costs to BSNL. The bidder will have to bear all the cost including applicable taxes and levies, if any. 2. PoC phase: There are four Phases / Sub-Phases in the PoC 2.1 Phase I: 2.1.1 Trial Requirement Phase I for Converged Voice as detailed in Para 11.1, 11.2 & 11.3 AND/OR 2.1.2 Trial Requirement Phase I for Converged Messaging as detailed in Para 11.4 and 11.5 2.2 Phase II: 2.2.1 Trial Requirement Phase II for Converged Voice as detailed in Para 12.1, 12.2, 12.3 & 12.4 AND/OR 2.2.2 Trial Requirement Phase II for Converged Messaging as detailed in Para 12.5, 12.6 and 12.7 3. Background: 3.1 Wireless spectrum shortage has been faced by all wireless carriers with a perceptible reduction in the QoS with increasing deployment. Due to customer preference and ease of use the focus is only on Wireless growth and rapid expansion of Mobile services across India. The spectrum crunch is seriously affecting the quality of service and slowing down further market growth in personal communications area. 3.2 In-building solution assumes importance as it is estimated that up to 60% of the Mobile calls are either originated or terminated within the premises, be it home or office or a public place. 3.3 BSNL is the only Service Provider in India who has significant deployment in the fixed line segment. Fixed Mobile Convergence (FMC) technologies provide BSNL with an opportunity to link and synergize the capabilities of the Fixed and Mobile services, while providing the solution to the spectrum as well as the churn issues. For instance, when a mobile subscriber comes within the building premises, the in-building signal losses cause a drop in voice quality and consequent call drop. The FMC solution allows the calls on the mobile network to be automatically

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transferred to the landline using technologies such as the Unlicensed Mobile Access (UMA) for dual band devices, or provide the same single number service to multiple devices including the mobile, the home phone, a new Centralized communication pivot or a SIP PC client while retaining the toll quality in the speech. This enables BSNL to reverse churn up to 12% of traffic from its competitors, assuming that about 20% of its landline customers use mobiles from its competitors. The area of indoor coverage shall be provided by the WiFi/Bluetooth for UMA, SIP or IMS enabled mobiles and traditional coverage extensions with backhaul over wired broadband. These shall be bundled with BSNL Wireline and broadband phone to offer better coverage and new always connected services to its subscribers, independent of device. 3.4 Telecom operators the world over plan to leverage emerging IP Multimedia Subsystem (IMS) service platforms to deliver true one phone, one number telephony over both fixed and mobile infrastructure. This means that a mobile handset will use 2G/3G mobile infrastructure when it is operated outdoors and VoIP over WiFi or Bluetooth when it is operated indoors at work or at home. Global standards for IMS and associated FMC have been developed by the 3GPP Standards body and ratified by 3GPP2, ITU, ETSI, TISPAN and others. It is clear that the immediate benefactors shall be those operators who already have both fixed and mobile deployments in good measure. 3.5 Since BSNL presently has 100% deployment of TDM based PSTN, it could as an immediate measure bring about convergence between PSTN landlines and the 2G mobiles. However, BSNL plans to immediately put in place an NGN migration plan whereby the TDM Switches would be replaced entirely in a three year time frame by VoIP switches and the next generation FMC relying on broadband Internet access for the fixed part and wireless LANs to enable converged handsets. The timing is right as wireless LANs cover many enterprises today and home WiFi setups are spreading rapidly. Broadband Internet access is also available in public hotspots. 4 Fixed Mobile Convergence Concept: 4.1 The vision of FMC can be stated as delivery of any service to any device. End users are driven by key communication trends that will define the future of service delivery across traditional fixed, mobile and internet worlds. Technology has empowered users with differentiated values for each of the mediums, rendering each one of them equally important in its own way and irreplaceable. Users enjoy the rich features and low cost of VoIP on a PC, mobility from their mobile and reliability of a home phone service. 4.2 The core element of FMC is the use and migration of existing voice services in the home and the office. The days for separate service providers providing the same voice services across multiple domains are numbered users increasingly expect bundled, if not converged voice services whether they are in the home, in the office or on the go. Today, the mobile operator has the edge over competing service providers since mobile operators are the only ones that can provide mobility. FMC is about transforming the mobile operator network to enable service delivery to the home and office, and to provide unique and compelling converged services, such as single number dialing and reachability, single voice mail, multi-device mobility, etc. 4.3 FMC is also about new services fueled today by the growth of Social networking. Multimedia asynchronous communications is a wild fire trend that leverages the mobiles and internet to meet the very basic human need to connect. Mobiles provide one dimension of interaction, which is one-to-one, while the web provides an added dimension of many to many interactions. This is demonstrated by the growing use of near real time communications via messaging SMS, MMS, emails and presence-enabled IM and notifications. These are media rich and typically associated with services such as photo and video sharing (cricket clips), music downloads which offer chargeable value to the end user. 4.4 The network architecture for Phase I FMC Voice and FMC Messaging are shown in Figure 4A and 4B respectively. The components within the FMC network are designed to provide converged services to multiple devices across disparate access networks any to any service

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delivery. The capability set of the functionality provided by the FMC core network is diverse and consists of a broad array of voice and messaging solutions.

Figure 4A: FMC (Voice) Phase I - Options

Mobile Core Service (MSC-S & Apps) UNC/ SIP BSC
CCS No.7 Media Gateway LMG IAD SBC SoftPhone

FMC 2 Server

Fixed Core Service (Soft Switch & Apps) RNC IP Transport

BSC/ RNC Mobile Backhaul

100M/ GbE

BTS/ Node B
PSTN

Broadband Aggregation Network

DSL Access PBX

Wireless Access options MSAN 1. Bluetooth 2. WiFi WiFi Mobile Seamless Call Handover Handset

Private Network

WiFi

Figure 4B: FMC (Messaging) Phase I

Mobile Core Service Data Base and Applications SMS FDA Router MSC-S BSC/ RNC Mobile Backhaul
100M/ GbE

Fixed Core Service (Soft Switch & Apps) RNC IP Transport

Media Gateway SoftPhone

IP SM

LMG

IAD

SBC

BTS/ Node B
PSTN

Broadband Aggregation Network

DSL Access MSAN WiFi WiFi PBX

Wireless Access options 1. Bluetooth 2. WiFi Mobile Handset

Private Network

4.5 The FMC core network is designed to support broadly all existing devices in the market across multiple BSNL access networks while introducing new devices and enabling new services. The broad array of device types supported are: 4.5.1 Wi-Fi / Blue tooth-enabled Dual mode mobile handsets 4.5.2 SIP-enabled PSTN devices (SIP ATAs , SIP phones & SIP Clients) 4.5.3 3G mobile devices and data cards

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4.5.4 SIP / IMS-enabled devices 4.6 The underlying business case for FMC is enabling new services and extending existing services by transforming the Service Providers core network. Rather than having to build out and maintaining parallel core networks for introducing and supporting new devices and new services, FMC transforms the existing traditional core networks to an evolved, multi-domain consolidated core network. The FMC transformation reduces costs for operating existing services, removes traditional barriers to entry for new services by evolving towards a converged core network. The access networks which can converge under the FMC network are the existing GSM mobile network, the Voice over Broadband (DSL) network and the PSTN network. 5 Fixed Mobile Convergence Solutions: 5.1 FMC Network Components: The Transformed FMC network contains the components illustrated in Figure 4A and Figure 4B above. 5.2 Converged Voice: The Converged Voice Core extends existing MSC/HLR voice core services to new device types and new business models while smartly enabling the migration towards the FMC core by ensuring complete service parity as the network is transformed. Figure 4A illustrates the essential components of the Converged Voice Core. 5.2.1 In order to facilitate the introduction of new device types and new business models for voice services, the Converged Voice Core takes the approach of leveraging the existing MSC for its mature and rich set of voice services, including all mobile Telephony, IN and regulatory services, as far as possible. A second key factor to the strategy driving the converged voice core is to enable the converged voice services with complete service parity for all devices types, including mobile and SIP-enabled IP devices. 5.2.2 The transformation towards the Converged Voice Core network is achieved in a series of logical steps as described below. 5.2.2.1 In the first phase, existing MSC mobile services are extended to new SIP enabled devices whereby new and differentiated rate plans can be offered. (i) WiFi/ Bluetooth enabled Handsets: The introduction of WiFi/ Bluetooth-enabled 2G/3G mobile handsets Bluetooth Class 1.5 technology delivering 2 Mbps for operation at 40 meters range between handset and landline device where the latter depends on the exchange for power in case it is a standalone device. The solution therefore, shall not require external power management since it works on PSTN line power. Therefore, it shall not be impacted from local power failure. Dual Mode Handsets (DMH) that allow users seamless roaming between WiFi and GSM macro-cellular coverage areas, with the benefit of discounted VoIP calling rates while using cheap (free) WiFi coverage, providing the benefit of combining premium mobility services and discount VoIP rates (ii) SIP-enabled IP devices and Soft Clients: The support for new business models leveraging the existing MSC/HLR core network to provide primary and/or secondary line service employing VoBB (Voice over BroadBand) technology

5.2.2.2 In the second phase, the existing MSC core network is transformed with the introduction of the FMC core infrastructure. The MSC core evolves towards

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IMS with the introduction of a surrounding IMS network in compliance with 3GPP Releases 5, 6, 7 & 8 thereby enabling the introduction of IMS devices and support for additional access technologies. This is illustrated in Figure 5. The following voice services can be added.

Figure 5: FMC Phase II 3 Stage Migration to IMS

MSC Mobile TAS
SMSC IN

UNC/ SIP BSC

UNC/ SIP BSC

S-CSCF I-CSCF

2
BGCF

HSS

XDMS

AAA

HLR

SBC

ICS GW

P-CSCF

MGW

3
BSC RNC UMA WiFi LTESAE DSL/ CABLE

PSTN

Note: The MSC is replaced in stage 3 by Mobile Telephone Application Server (TAS) and IMS Call Server Access Gate Way (ICS GW)

5.2.2.2.1 IMS-enabled IP devices: The introduction of IMS-enabled devices facilitates the introduction of enriched voice calling by blending multimedia services into the call, such as adding mediasharing capability. IMS clients can be installed on a broad array of device types, allowing for compelling user benefits such as ubiquitous communication and reachability using a single identity or number independent of the device 5.2.2.2.2 Enterprise Solutions: The ability to provide a mobile centrex user experience to the enterprise user while in Enterprise Femto coverage, where the GSM/UMTS handset becomes a virtual PBX extension. The enterprise user has the benefit of simultaneous ringing across multiple devices types, active call transfer between GSM and SIP devices, on-net calling, and handout to macrocellular GSM coverage. 5.2.2.2.3 Centralized Communication: The introduction of a new fully integrated communications pivot in the home that provides centralized communication services for the residence. The voice services provided by the pivot are IMS-enabled and designed to support multiple devices, and unique conferencing capabilities for family line services. The communications pivot is a multimedia device designed to simplify and bundle multiple communication services to the residential user, whereby IMS is considered a key enabler for bundled service delivery 5.2.2.3 In a final step for transforming the Converged Voice Core, the FMC network becomes the single and consolidated core network, whereby eventually the following steps are taken:

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5.2.2.3.1 Telephony Application Server: A new Mobile Telephony Application Server (TAS) is introduced that provides complete service parity with the existing MSC. Most importantly, the TAS supports the legacy IN interfaces to interwork directly to the existing SCPs over CAMEL, whereby popular and essential mobile features, such as prepaid and ring-back tones, are re-used within the context of the newly transformed FMC network. 5.2.2.3.2 ICS Gateway: The IMS Centralized Services (ICS) Gateway enables the direct connectivity of legacy radio access networks to the IMS core network, essentially bypassing the legacy MSCs. The ICS Gateway (defined in 3GPP R8 standards) ensures that all legacy GSM/UMTS CS services are supported and delivered to GSM/UMTS devices. This last step in the Converged Voice Core networks enables the consolidation of all access networks to one Fixed Mobile Core network. 5.3 Converged Messaging: 5.3.1 The Converged Messaging Core leverages existing subscriber assets, network investments and future investments to both spur adoption and offer any-to-any services. The Converged Messaging Core bridges the gap between next generation, legacy messaging and content services by extending the reach of new services to existing clients/devices and enabling new clients/devices to reach existing communities and services; seamless communication without barriers. 5.3.2 The Converged Messaging Core shown in Figure 4B delivers a seamless and intuitive subscriber experience that empowers, engages and interconnects the complete subscriber base without mandating that all parties share common technology. It also enables subscribers to use different devices with different capabilities during their day and to have messages to follow them to the device they are currently using. The Converged Messaging Core brings services together and offer blended services regardless of current or emerging technology. 5.3.3 The Converged Messaging Core provides a logical step in the evolution path towards IMS. This allows gracefully offloading SMS traffic from legacy domain to IMS domain. With the evolution to a centralized IMS core network with dedicated application servers, legacy traffic is offloaded from the SMSC to IMS Application Server(s) and bypasses the SMSC with the advent of an IMS based Messaging architecture. 5.3.4 The Converged Messaging Core is achieved in a series of logical steps, as outlined below: 5.3.4.1 SMS FDA (First Delivery Attempt) Router: An intelligent SMS Router designed to deliver messages near real time, without the need for permanent storage before delivery. The permanent storage is needed only when the immediate delivery of the message fails for any reason (subscriber not reachable, not registered etc). This shall be applicable for both SMS and MMS. The FDA Engine can be leveraged to offload existing SMSC and MMSC, thereby eliminating the need for additional storage capacity in existing platform. 5.3.4.2 Premium SMS Services: An IP-SMSC capable of storing messages where FDA was not successful, but also providing the ability for advanced new SMS services, such as 5.3.4.2.1 SMS Forwarding (to Cell Number & to Email)

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5.3.4.2.2 SMS Copy (to Cell Number & to Email) 5.3.4.2.3 SMS Auto-Reply 5.3.4.2.4 SMS Personalized Blacklist 5.3.4.3 IP-SM Gateway: The bridging functionality of messaging between multiple messaging domains, such as legacy SMS/MMS, IMS, Email, etc enabling messaging between different devices types. The IP-SM Gateway facilitates the introduction of new SIP-enabled devices by merging legacy SMS/MMS messaging and next-generation IM messaging to a single SIP-enabled client on the handset. 5.3.4.4 IM Server: The Instant Messaging Server is an OMA IM server that provides both page-mode and session-mode IM services, and enables a rich messaging experience by supporting multimedia sharing, such as the sharing of audio and video files. The IM server supports the RCS feature set as defined by the GSMA RCS initiative. 5.3.4.5 Presence: The Presence Server is an OMA v1.1 compliant Presence Server that provides both Hard State (persistent) and Soft State (transient) management, presence rules, watcher authentication & willingness, and supports essential communicative features such as tagline and icon changes. The Presence Server supports the RCS feature set as defined by the GSM RCS initiative. 6 FMC Requirements: 6.1 The technology shall support most of the 2G/3G Mobile phones used in the network it shall typically utilize two classes of handset devices explained in this document. 6.2 The technology shall be independent of the Mobile service provider. 6.3 The Convergence solution shall provide seamless roaming across fixed and mobile networks using technologies such as Virtual Call Continuity (VCC), etc. 6.4 The Convergence solution shall provide single number reachability across mobile and fixed network (TDM/ SIP enabled IP devices, etc.) 6.5 The Convergence solution shall provide necessary provisioning, service registration, monitoring functions including self diagnostic capability, prediction of failure providing statistical data analysis, etc. along with standard interface to Mobile Prepaid billing and CDR based billing platforms for billing of new services. 6.6 The convergence solutions shall support standard interface with the existing mobile network such as GSM A interface between the SIP- BSC and MSC etc and SIP interface to other SIP aware network elements

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