2013 05- ims-mw_en (2)

Copyright © 2013, J’son & Partners Consulting. Copying or distribution in a hard copy or electronic form without written permission of the J’son
& Partners Company is prohibited. Media can use any diagrams, data or forecasts contained in this market review only with giving credit to the
source of information – J’son & Partners Consulting.
™ J’son & Partners [registered trade mark].
1
J’son & Partners Consulting presents the results of the research “Equipment market and prospects of the
implementation of new services based on the technology of transmitting multimedia content on the basis
of the IP protocol (IP Multimedia Subsystem, IMS)”
Definition and Advantages of IMS
IMS is a hardware and software system that constitutes the key component of almost every next
generation IP network (NGN) supporting SIP applications and is intended for the standardization of
multimedia services on all interconnected networks. Owing to its universal architecture, the same IMS
platform may be used for applications and services on mobile networks of every generation (2G, 3G,
4G), as well as fixed networks.
Besides, it was on the fixed communications networks that the concept of IMS originally occurred, meant
as an instrument for reducing the number of major operators’ networks (and, consequently, their
expenses) through migration to IP (British Telecom’s major project in the middle 2000s). Later, with the
dashing start of LTE, the main interest in IMS shifted toward the voice (VoLTE) and rich communication
(RCS) services.
The IMS network enables to create several key mechanisms of networks interconnection instead of
creating a separate agreement for each service. This helps to avoid function doubling and to decrease
operators’ expenses.
One of the most important drivers of IMS implementation is the necessity of supporting voice services in
LTE networks (VoLTE).
Main advantages of IMS:
 Ensuring interaction between networks of different types
 Possibility of development and fast implementation of new services, including VoLTE
 Ensuring quality of service (QoS)
 Accurate billing
 Reducing operation costs
 Scalability of solutions

2
Prerequisites for IMS Implementation:
 Operators’ consolidation and possibility of providing convergent services
The competition between existing mobile operators is still very high; there are active processes of
merger and acquisition (M&A) on the market. It is not infrequent that the consolidating companies prove
to be providers of different services (fixed and mobile communications, mobile telephony and cable
television, etc.). IMS helps them join all network types into one network, realize a complex of services
combining the abilities of mobile and fixed communications based on a single platform (convergent
services), and bring the growth of ARPU and the increase of revenues to the operators.
 OTT services threats
Third-party suppliers of text, voice and video applications (OTT providers)1
cannibalize mobile operators’
traditional services (voice and SMS), on which the major part of the latters’ profits depends. With the
progress of technology (transfer to 4G), OTT providers try to enhance appeal of their services, for
example, provide the support of voice and high definition video (HD), which adds to the problem.
 The need in operators’ expenses reduction
An apparent trend of the world telecommunications market is the increase of operators’ capital
expenses.
In is deemed that IMS in medium-term and long-term prospects will allow the operators to reduce their
capital (CAPEX) and operational (OPEX) expenses using a unified IP network and an open IMS
architecture. Besides, the operators will be able to market new services quickly and with low expenses.
However, it is obvious that at the initial stage of IMS implementation by the operators, they will have to
increase expenses.
 LTE networks occurrence and development
The soaring of the use of data mobile traffic, severe competition and high demand for broadband access
services require the implementation of the high-priced LTE and LTE Advanced technologies. In its turn,
the development of 4G networks creates an incentive for operators to implement the IMS technology, as
it gives the opportunity of implementing voice services on LTE networks (VoLTE), and some other
services.
IMS architecture is commonly divided into three horizontal levels:
 Transport (level of subscriber devices and gateways)
 Call and session control (Call session control function (CSCF) and subscriber data server);
 Applications level.
1
The examples of the most popular OTT providers: Skype, Google Voice, WhatsApp, Viber, communications applications
embedded in popular social networks, etc.

3
Figure 1. Architecture of a standard IMS system
Source: J’son & Partners Consulting
The transport level organizes a communication session through the signalization of a session
initializing protocol and ensures transport services with voice converging from analogous or digital signal
into IP packets by using the RTP protocol.
The call and session control level controls communication sessions.
The service level contains a set of application servers which may already not be IMS components, and
includes both SIP-based IP multimedia applications and the applications realized on mobile networks on
the base of a virtual home environment.
IMS Extension in Russia
In 2004 – 2005, the first demonstrations of abilities of IMS were conducted in Russia (Siemens and
Ericsson companies). In 2006, Siemens opened an IMS demo center in St. Petersburg, where
demonstration of various services (Call&Share, Push-to-Talk over Cellular, Mobile Presence Manager,
Group Management, Instant Messages Center, etc.) took place. In 2009, the MGTS Company (the
Moscow City Telephone Network) planned to implement IMS and complete the project in the analogous
segment in 20112
, but due to the crisis the project was realized only in part. Specifically, in 2010, merely
a part of the analogous telephone exchanges was transferred to digital format, and the network’s core
was installed. Early 2012, the MGTS put the first INS-based corporate service into test operation; it was
planned to start the commercial operation of the service in March, 2012. The first service was a scalable
IP Centrex service.3
Earlier, in 2011, the “South” Macroregional Branch of “Rostelecom” OJSC used the
Alcatel-Lucent IMS solution to transfer the existing fixed network to the IP architecture with the support
of VoIP and other modern services.4
In addition to this, in August, 2012, the “Ural” Macroregional
Branch of “Rostelecom” OJSC requested for quotas for gaining the right of concluding an agreement on
the project “Development of the platform for the development and delivery of services and IMS core
components.”
2
http://www.russianelectronics.ru/leader-r/news/company/2114/doc/22141/
3
http://www.tdaily.ru/news/top-novosti/23843
4
http://technodrive.ru/rostov.php?15543
Content and applications of third-party suppliers
Service level
Transport level
Control level
Access
networks
Access
networks
Access
networks
Individual
subscribers
Business
Public access
areas

4
The World Market if IMS Equipment: Main Trends and Forecasts
There are 7 major vendors on the market of turnkey IMS systems: Acme Packet, Alcatel Lucent,
Ericsson, Genband, Huawei, Nokia Siemens Network (NSN), and ZTE. According to the results of 2012,
the positions of the main manufacturers of equipment for IMS networks slightly changed. For example,
Alcatel-Lucent managed to edge out Genband and get the second place. Huawei remains the market
leader.
Figure 3. Market shares of the world major IMS equipment providers
2011 2012
Source: Infonetics Research (Quarterly Market Share report)
According to Infonetics Research, the sales of the equipment for IMS networks grew by 50% in 2011. A
half of the growth was on the account of North America: the driver of the process was the startup of
LTE networks by the American operator Verizon Wireless, which used the IMS platform by NSN.
Other
companies
Other
companies

5
Main Drivers and Constraints
The ‘2012 survey of service providers conducted by Infonetics Research shows that the key drivers of
IMS implementation were: deployment of LTE networks, the possibility of providing convergent IMS
services and the creation of a unified standard.
Figure 2. Main drivers of IMS implementation
Source: Infonetics Research, 2012
Constraints of the development:
 development of OTT services;
 high cost and long period of the network’s deployment;
 technological issues with the network’s deployment;
 difficulties with the development of FMC, related to the legislative regulation of mobile and fixed
operators’ activities;
 fragmentation of the frequency spectrum of LTE networks.
Forecasts are Prospects
Alan Quayle forecasts that nearly 50% of cellular operators will have implemented the IMS solution by
2015. Mobile operators will prove the most eager companies deploying the IMS network: by 2017 their
share among the companies implementing IMS will grow from 15% up to 50%
Deployment of
LTE networks
Possibility of providing
convergent services
Creation of a unified
standard for the network
infrastructure and services
Share of respondents, %

6
Figure 3. Telecommunications operators having implemented/implementing IMS,
breakdown by types of the services provided, 2011 – 2017
Source: ABI Research
The key factor of stimulating the demand for additional services is the simplicity of use and quality of
connection. According to the survey performed by Cisco in the end of 2011, the most popular services
among subscribers are as follows: speech recognition, media content transmission, translation of voice
messages in real time, etc.
Mobile Convergent Fixed

7
List of contents of the Full Version of the Report
“Equipment Market and Prospects of the Implementation of New Services Based on
the Technology of Transmitting Multimedia Content on the Basis of the IP protocol
(IP Multimedia Subsystem, IMS)”
List of contents of the Report
Vocabulary of terms and abbreviations
Summary
1. Brief history of IMS development and spread
1.1. Brief description of the technology
1.2. History of development
2. Main prerequisites of IMS implementation Ошибка! Закладка не определена.
2.1. Operators’ consolidation, occurrence of large universal operators
2.2. Possibility of convergent services provision
2.3. OTT services threats
2.4. The need in operators' expenses reduction
2.5. LTE networks occurrence and development
3. IMS and used equipment description
3.1. IMS architecture
3.1.1. Access network level
3.1.2. Core network level
3.2. Used equipment
4. IMS extension in Russia and in the world
4.1. IMS equipment manufacturers and their solutions
4.1.1. Acme Packet
4.1.2. Alcatel-Lucent
4.1.3. Ericsson
4.1.4. Genband
4.1.5. Huawei
4.1.6. Nokia Siemens Networks (NSN)
4.1.7. ZTE
4.2. Other manufacturers
4.2.1. Aricent Group
4.2.2. Ecrio
4.2.3. Dialogic
4.2.4. Metaswitch Networks

8
4.2.5. Sonus Networks
4.2.6. Tekelec
4.2.7. Specialized vendors
4.3. Basic projects
4.3.1. In Russia
4.3.2. In the world
5. The world market of IMS equipment: basic trends and forecasts
5.1. Brief description of the market situation
5.2. Basic trends, drivers and constraints of IMS market development
5.2.1. SBC
5.3. Basic drivers and constraints of the development of IMS-based technologies
Ошибка! Закладка не определена.
5.4. Forecasts and prospects
6. New IMS-based services implementation prospects
6.1. IMS and implementation of voice services over LTE networks (VoLTE)
6.2. IMS and rich communication services (RCS)
6.3. IMS and VaaS (Video-as-a-Service)
6.4. Other services: Web RTC
List of Figures
Figure 1. Correlation of the dynamics of the growth rates of mobile devices and IP traffic, 2013-2016
Figure 2. Diagrams of IMS (on the right) and non-IMS (on the left) systems
Figure 3. Mobile communications penetration level in 2012 and 2017, %
Figure 4. History of IMS development
Figure 5. Dynamics of telecommunications operators’ capital expenses (СAPEX) in the world, 2007-2015
Figure 6. IMS as a means of increasing operators’ revenues
Figure 7. Major LTE operators’ subscriber base as for October, 2012
Figure 8. Architecture of a standard IMS system
Figure 9. CSCF structure diagram
Figure 10. Operators’ preferences for selecting an IMS equipment vendor
Figure 11. SMX solution – IMS Core integrated node
Figure 12. PEC solution – diameter routing agent
Figure 13. Market shares of the world major providers of IMS equipment
Figure 14. Market shares of SBC manufacturers, 2012
Figure 15. Matrix of SBC manufacturers’ comparative advantages

9
Figure 16. Main drivers of IMS implementation in 2012
Figure 17. Main drivers of IMS implementation in 2010 (% of respondents)
Figure 18. Share of telecommnications operators having implemented IMS, cumulative
Figure 19. Telecommunications operators having implemented/implementing IMS, breakdown by types
of the services provided, 2011–2017, %
Figure 20. Reduction of expenses when transferring from a fixed network to IMS
Figure 21. Volume of the world market of IMS network equipment, 2008-2015
Figure 22. Number of the users of mVoIP VoLTE and OTT services, 2012-2016
Figure 23. Dynamics of the operating revenue from voice services and data communication services on
mobile networks in the world, 2009-2015
Figure 24. Subscribers’ interest in new services of mobile operators, % from the number of respondents
Figure 25. Main causes of IMS networks deployment, % from respondents
Figure 26. VoLTE basic structure based IMS network
Figure 27. Geographical structure of RCS service consumers in 2013
List of Tables
Table 1. 3GPP releases related to IMS
Table 2. Share of iPhone users utilizing MIM monthly, 2012
Table 3. Additional services on mobile networks
Table 4. Product line of IMS equipment by Huawei
Table 5. Main M&A transactions in 2010-2012
Table 6. Certified operators working in the RCS Alliance
The newsletter was prepared by the J'son & Partners Consulting Company. We exert every effort to provide actual and
forecasting data representing the situation in full and available at the time of the publication of the material. J'son & Partners
Consulting reserves the right of revising the data after publication of some new official information by individual players.
CONTACT FOR MORE INFORMATION:
Pavel Yermolich
Commercial Director
Pavel@json.ru
www.json.ru

2013 05- ims-mw_en (2)

More Related Content

What's hot (20)

Viewers also liked (20)

Similar to 2013 05- ims-mw_en (2) (20)

More from J'son and Partners Consulting (20)

Recently uploaded (20)

2013 05- ims-mw_en (2)