UMTS System Architecture

GSM Products Division

UMTS

Universal Mobile Telecommunications System

System Architecture
Whitepaper

Version 1.0 August 26th 1998

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 UMTS System Architecture

Contents

1 SUMMARY 3

2 THIRD GENERATION SYSTEMS 4

2.1 The IMT-2000 Family 4

3 WHAT IS UMTS? 5
3.1 Overview 5
3.2 GSM Interworking and Migration 5
3.3 UTRA: The UMTS Air Interface. 6
3.4 Timescales 6
3.5 Operator Benefits of UMTS 6
3.6 User Benefits of UMTS 7

4 MARKET ENVIRONMENT 8
4.1 Fixed Mobile Convergence 8
4.2 Industry Convergence on Internet Protocol 8
4.3 Growth in Data Services 8

5 UMTS ENTERPRISE MODEL 9

6 SYSTEM ARCHITECTURE 10
6.1 Architecture Strategy 10
6.2 Service Platform 11
6.3 Transport Network 14
6.4 UMTS Future Vision 18

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 UMTS System Architecture

1 SUMMARY

UMTS (Universal Mobile Telecommunications System) is the European member of the

IMT-2000 family of Third Generation cellular mobile standards. This paper gives a brief
introduction to UMTS and outlines Motorola’s vision of the network architecture that will
support its implementation.

The goal of UMTS is to enable networks that offer true global roaming, and can support a
wide range of voice, data and multimedia services offered at competitive prices in a
dynamic marketplace.

These new UMTS networks will build on the success of GSM and on an Operator's
existing investment in the development of customer base and infrastructure. The first
stage of service and network evolution is from today's GSM systems, through General
Packet Radio System (GPRS) in 1999 and 2000 to commercial UMTS systems from the
end of 2001. UMTS will support full interworking with GSM systems and will reuse
investment in GPRS.

UMTS will enter the market at a time when fixed-mobile integration is becoming a reality, the
telecoms, computer and media industries have converged on Internet Protocol (IP) as a
shared standard and data accounts for a significant proportion of the traffic carried by mobile
networks.

In order to take advantage of this situation and to increase competition in the market, EU
telecoms policy encourages a new commercial model for UMTS where a number of
enterprises work together in both competitive and co-operative relationships to provide
services to the subscriber. The enterprises will include Network Operators handling the core
network provision, Service Providers as a point of contact to the subscriber and Value Added
Service Providers (including content providers), offering improved, information based services
to the user.

There are three independent components of the UMTS Systems Architecture:

• A service platform that offers end-users the same service features regardless of the
underlying access technology, thus providing a "Virtual Home Environment".
• Motorola believes that a Client/Server solution, moving the service control
logic to the edges of the network (handset/SIM card and HLR/server) will meet this
need in the most effective manner, allowing rapid new feature development and thus
promoting competition and increased network usage. UMTS Client/Server solutions
will evolve from Client/Server solutions based on the SIM Toolkit, Wireless
Application Protocol (WAP) and Mobile Execution Environment (MExE) standards.

• A transport network that supports voice and data efficiently and provides mobility
management and other core functions.
• Motorola's UMTS architecture will use packet transport and switching
technologies throughout. The transport network will be a single packet based network
supporting both voice and data services with unified management control.
Interworking functions such as transcoding and data modems will be moved to the
edge of the network thus improving utilisation, management and quality.

• A series of access networks including the new UMTS air interface and other wireless
and wireline interfaces.

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 UMTS System Architecture

2 THIRD GENERATION SYSTEMS

2.1 The IMT-2000 Family

The International Telecommunications Union (ITU) began its Third Generation mobile
communications initiative in 1985 with the vision that there would be a single global
standard. However, market conditions and drivers have proved to vary so widely in
different regions that the ITU have now moved from this concept of one single system to
a vision which accommodates a family of systems. The goal is now to establish global
roaming among the various Third Generation technologies.

This family of systems is known as IMT-2000. The evolution paths from the first two
generations of cellular standards ("1G" and "2G") through intermediate standards
("2.5G") to the Third Generation family of IMT-2000 standards ("3G") is shown below.
1G 2G 2.5G 3G
NTT PDC ARIB W-CDMA*
INODE INODE -> MAP+

JTACS Korea 3G? ?

NAMPS
IS-95 Rev.B CDMA2000
IS-41 IS-41+
IS-41
AMPS
D-AMPS IS-136+ IS-136 HS
IS-41 IS-41 MAP and IS-41
TACS
Phase II+
MAP GPRS UMTS*
NMT MAP MAP+

Regional choice of a Third Generation standard is based on a number of factors including

customer requirements, existing investment in Second Generation systems and desire to
support local industry.

Japan has been very active in Third Generation developments. Capacity is a key driver in
this region, with NTT DoCoMo expecting to run out of spectrum for basic services by
2000. Japan has submitted W-CDMA to the ITU as their proposal for IMT-2000 however
DDI and IDO have been trialling cdma200 as they require a Third Generation system
which will be compatible with their Second Generation cdmaOne system

In Korea, ETRI has established a consortium to develop Korean IMT-2000. There are two
proposals under development: Global CDMA I is similar to cdma2000 and Global CDMA
II is similar to DoCoMo's W-CDMA.

In the Americas, there are three proposals for the Third Generation system - cdma2000
for migration from cdmaOne, UMTS for migration from GSM1900 and UWC-136 for
migration from IS-136 TDMA

In Europe, the technology choice is UMTS with UTRA (UMTS Terrestrial Radio Access)
defined as the air interface. Key Drivers are the implementation of advanced services (to
develop the European Union's concept of the "Information society") and to introduce
increased competition through a new business model.

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 UMTS System Architecture

3 WHAT IS UMTS?

3.1 Overview
UMTS is the European member of the IMT-2000 family of Third Generation standards.
The UMTS standards are being developed within the ETSI SMG committees that
originally developed GSM.

UMTS Requirements include:

• Small, low cost pocket terminals

• Worldwide roaming

• A sngle system for residential, Office, Cellular and Satellite environments

• High Speed Data

• Vehicular 144 kb/s
• Pedestrian 384 kb/s
• Indoor 2Mb/s

UMTS will support data rates of up to 2Mb/s and new multimedia applications over a new
wideband air interface based on CDMA techniques. Services will be supported by a wide
range of terminals tailored to the requirements of voice, data and multimedia services.

UMTS will encompass more than just cellular systems, evolving from GSM and
embracing fixed networks and other wireless and wireline access technologies. Services
will be globally available, delivered over the mobile, satellite or fixed networks that
provides the best accessibility for the consumer's specific location.

The key elements of UMTS are:

• New services including mobile multimedia
• More spectrum (using a new air interface)
• Evolution from and interworking with second generation systems
• A new commercial model to increase competition and increase the range of
services available
• Advanced networking capabilities with PSTN, packet based and advanced
Internet based networks

3.2 GSM Interworking and Migration

UMTS networks will evolve from today's GSM networks, encompassing both existing and
new network elements working together to provide seamless service delivery to customers
whether they are using GSM or UMTS air interface. There will be smooth integration of GSM
and UMTS services with consumers using handsets that automatically switch between the
available networks.

This will enable Operators to build on their existing GSM network investment and customer
base and will provide users with a smooth upgrade path from GSM to UMTS.

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 UMTS System Architecture

3.3 UTRA: The UMTS Air Interface.

In January 1998 a decision was 1850 1900 1950 2000 2050 2100 2150 2200
reached by ETSI on the
technology choice for the UMTS
1 2 3 4 5 6 7
Air Interface.

W-CDMA has been selected for DECT

UMTS
TDD
Satellite
UMTS
TDD
UMTS Core
Allocation
Frequency Division Duplex (FDD) UMTS Core
Allocation
operation and will provide wide
area cellular coverage for voice and data services.
W-CDMA
TD-CDMA will be used for Time Division
January compromise decision on Air Interface
•W-CDMA chosen for FDD use (Paired Spectrum)
Duplex (TDD) operation in the unpaired spectrum. •Wide area cellular, voice & medium rate data
•TD-CDMA chosen for TDD (Unpaired Spectrum)
TD-CDMA •In-Building, asymmetric & high rate data, unlicensed

Both modes are suited to wide area coverage and will have similar ranges and spectral
efficiencies. TD-CDMA is more suited to asymmetrical traffic because different data rates can
be assigned to the uplink and the downlink.

ETSI are developing both the FDD and TDD modes of the air interface. The maturity of the
standards is far higher in the FDD mode, so it is expected that the industry will develop and
roll out W-CDMA before TD-CDMA. In the future, additional frequency allocations are likely to
be in unpaired spectrum, therefore well suited to TD-CDMA.

3.4 Timescales
The first European UMTS spectrum auctions take place in the UK during 1H99. Spectrum
will then become available in 2000 and the first commercial deployments are expected in
late 2001.

3.5 Operator Benefits of UMTS

• New spectrum
• As the demand for data and multimedia services grows, the existing GSM
spectrum available to Operators will not provide sufficient capacity.

• New services
• Rapid service creation, new multimedia and high speed data services all lead
to increased competitive position, increased minutes of use and increased revenues.

• Leverage investment in GSM

• As UMTS builds on both the Operator's investment in GSM and on that in
GPRS, it offers the opportunity to generate new revenue from existing investments
and an existing subscriber base.

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 UMTS System Architecture

3.6 User Benefits of UMTS

In line with subscribers' increasing expectations of GSM systems, UMTS will of course
provide a very high quality of service in all environments. This will be further enhanced by the
implementation of the Adaptive Multi-Rate (AMR) codec.

In addition, users will benefit from:

• Seamless global roaming

• The implementation of the Virtual Home Environment will give users the
same seamless service regardless of serving network type. This means that users
can access their personalised service profile through any network from any terminal,
optimise the display of information and simplify access to the key services that they
use most. This programmable personality will be stored in the SIM card, and this will
allow the same user interface to be available on any phone anywhere in the world.

• High speed data services

• The UMTS network will provide cost-effective data transmission with the
flexibility to remain on-line at all times, whilst only paying for the amount of data
received or transmitted. Terminals will always be connected to the network, e-mails
could be received as soon as they are sent and access to the Intranet and Internet
will be immediately available all the time with no set-up delay. All this will be available
at even higher data rates than those offered by GPRS systems.

• Multimedia services
• New multimedia services will include video conferencing, interactive
entertainment, and video transport in the case of an emergency or disaster.
Multimedia technology will also make it possible to offer electronic magazines or
newspapers complete with graphics and video clips.

• New innovative applications

• The involvement of new Value Added Service Providers in the UMTS
commercial model provides the opportunity for a wide range of new applications to be
offered. Examples are supplementary features for traditional voice callers such as
location based services.

• Telematics
• Building on GPRS services, UMTS will support machine to machine
communications in applications such as vending machine monitoring.

• Increased integration between fixed and mobile telephony services

• The increased integration of these services offers users both an increase in
ease of use and increased affordability.

• Increased choice of services

• The opening up of the market for service provision and the simplification of
service creation will provide users with an increased range of services from which to
select. The increase in competition in the market is also expected to ensure that
these services are offered to the user at an affordable price.

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 UMTS System Architecture

4 MARKET ENVIRONMENT

4.1 Fixed Mobile Convergence

Liberalisation in Europe has already allowed some operators to offer a combined
subscription for fixed and mobile services. Whilst this is primarily limited to billing at
present, we can expect the more innovative Operators and Service Providers to offer
converged services through both access methods.

4.2 Industry Convergence on Internet Protocol

The convergence of the Computer, Media and Telecommunications industries is becoming
apparent, characterised by the adoption of Internet Protocol (IP) as a common standard.

The Computer industry is already extensively IP based, with both business and consumer
applications that are built upon IP. The industry is now looking for mobility to extend the reach
of computing to people on the move, and is also demanding ever-faster access speeds to
allow more complex multimedia data to be
interchanged.
Mobile
Other wideband telecommunication services based Satellite

on IP such as videophone applications using H.323 Mobile

Radio
are becoming more of a business reality as
mobility and higher data rates are introduced into Cellular UMTS ≡
Wireless IP
the mobile marketplace.
Paging
Wireline
Use of IP in the media industry is emerging as Data

technologies such as Real Audio now allow the

use of the net to listen to a local radio station that
may be located on the other side of the globe.

All three industries are looking for mobility services

at increased bandwidth. The UMTS network can
be seen to be more than just another mobile
network - it is really the convergence of these three
industries, and the key enabler to this happening will be IP.

4.3 Growth in Data Services

Demand for GSM data services today is low – between 1% and 3% of operator revenues in
Europe, and significantly less than 1% in most of Asia. Data is, however, considered to be a
‘must have’ capability for most high-end business subscribers. With the advent of GPRS,
several factors will positively impact the demand for data services.

These include :
• New smartphones enabling highly portable and usable mobile data
applications
• Continued growth of the Internet, leading to greater use of data in everyday
life
• Near instant access to data
• Tariffing which can be based on volume and quality of service (QoS) rather
than time.

As a result of these factors, even conservative industry views expect data to reach at
least 20% of an operator’s traffic within five years of GPRS adoption. Several market
forecasts (Ovum, Analysys, Strategy Analytics) support or exceed this figure.

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 UMTS System Architecture

5 UMTS ENTERPRISE MODEL

A key objective of EU telecommunications policy is to increase competition within the

market. UMTS envisages a new commercial model where a number of enterprises work
together in both competitive and co-operative relationships to provide services to the
subscriber as shown in
the UMTS commercial UM TSCom m ercial M odel
model.

This scenario does not Subscriber

& User Database
preclude an enterprise
from fulfilling more than Subscription &
one role i.e. existing service profile management
Service
Billing
cellular Operators can Provider
Value
continue to provide Added
Subscriber Billing
services as they do today. Service
Provider
However the market is User data Accounting
management
opened up to new
entrants to specialise in Network
Usage Usage
one of the roles and offer Operator

services in competition to
those already existing in UMTS Commercial Model
the market. The roles
include:

Network Operators - responsible for the core UMTS network

Indications are that all existing GSM operators are candidates for UMTS spectrum
licenses. The expanded range, and flexibility, of services offered by UMTS to subscribers
will bring increased revenue potential for both Network Operators and Service Providers.

Some Operators may decide to specialise in providing extremely efficient bulk transport -
much like Internet Service Providers today. However most existing Network Operators
are likely to act as UMTS Service Providers in addition to their role as UMTS Network
Operators.

Service Providers - responsible for the relationship with the customer

The Service Provider role in the UMTS commercial role model is quite different from
today’s definition. This is no longer simply a reseller role, but involves developing
products and services to be offered via various different serving networks. Many Service
Providers are expected to be new entrants to the mobile marketplace. These could
include any organisation with good customer care facilities such as Credit Card
Companies, Banks, Supermarket Chains and Utilities.

The Service Provider will issue the Subscriber Identity Module (SIM) card, run their own
Home Location Registers (HLR), and may arrange to have two or more Network
Operators deliver airtime to subscribers. Service Providers may also contract with fixed
line Network Operators to deliver services for those customers wanting to integrate their
mobile and landline services.

Value Added Service/Content Providers - offering new services

Including this role in the UMTS commercial model recognises the importance of additional
services and features to the end user. The new role allows for existing services such as
messaging, but is intended to provide for a vast new range of applications and content
from a wide range of suppliers. The market entry as a Content Provider should therefore
be as easy as setting up a website on the Internet. Many of the concepts and solutions
that are being developed for the Internet may be applied in the UMTS environment.

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 UMTS System Architecture

6 SYSTEM ARCHITECTURE

6.1 Architecture Strategy

The key objectives of the architecture proposal that is outlined here are:
• Smooth, commercially successful migration path for current GSM operators, allowing
for continued interworking with other GSM and fixed networks
• Cost effective implementation (both capital and operating cost)
• Fast, flexible development of distinctive, operator-specific features for market
differentiation

Service
Evolution Service Provider

Network
Evolution Core Network

Air Interface
Evolution GSM UMTS BRAN Wireline

Terminal
Evolution

There are three independent components of the UMTS Systems Architecture:

• A service platform that offers end-users the same service features regardless of the
underlying access technology, thus providing the "Virtual Home Environment".

• A transport network that supports voice and data efficiently and provides mobility
management and other core functions.

• A series of access networks which could include both the new UMTS air interface
capable of supporting high speed data and multimedia services and other wireless and
wireline techniques.

The system outlined here will be built on a common modular high availability hardware and
software platform, creating a distributed peer-to-peer network solution where functions may
be located to best address the needs of a particular network. This will enable features such
as Local PSTN Interconnection, Optimal Routing and advanced wireless enterprise solutions
for corporate customers. The platforms are scaleable allowing Operators to deploy networks
where core equipment is centralised or highly distributed allowing operators to reduce their
backhaul and interconnect charges. Motorola’s cellsite equipment will be designed so that,
over time, operators will be able to deploy both GSM and UMTS radios on the same platform.

Motorola actively supports open standards and our UMTS system is designed so that it can
be blended seamlessly at standardized interfaces with existing equipment from other
suppliers.

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 UMTS System Architecture

6.2 Service Platform

6.2.1 Requirement

• Rapid Service Creation

• Differentiated Services
• Global Roaming

IN solutions deployed in GSM networks today are largely proprietary. These have been
good at offering solutions that involve simple number translation, such as One Number
services or Virtual Private Networks but have been less successful at delivering the wider
variety of services and flexibility originally envisaged. Movement to the CAMEL standard
will improve service portability while roaming but still won't offer Operators the flexibility
they require.

Operators are now keen to buy Service Capabilities, or toolkits, from which they can build
their own unique services, and free themselves from the constraints of new feature
development on the switch itself.

In addition, the Service Provider’s role will require rapid development and deployment of
personalised telecoms services, service management and control and features which are
transparent to the underlying serving network.

Motorola believes that a Client/Server solution, moving the service control logic to the
edges of the network (handset/SIM card and HLR/server) will meet this need in the most
effective manner, allowing rapid new feature development and thus promoting
competition and increasing network use.

6.2.2 Implementation
In this Server-based architecture, the network provides a reliable transmission pipe only. A
common Applications Programming Interface, or API, allows a software program running on
the Service Provider's computer (the Server) to communicate with the User's terminal (the
Client). Services now run at the edge of the network independent of the underlying
infrastructure and new services can be rapidly developed and deployed without the need to
make expensive and time consuming changes to the core network.

The transport pipe can be provided by a mobile network, such as GSM or UMTS, or by the
fixed network. The only requirement is that the network supports the common API. The
same services can then be easily deployed on both fixed and mobile networks facilitating the
transition towards Fixed Mobile Convergence. Enhancements of WAP, the Wireless
Application Protocol can provide this critical enabler for enhanced service delivery on UMTS
networks.

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 UMTS System Architecture

6.2.3 GSM Interworking and Migration

In order to meet requirements for rapid service creation and true global roaming, UMTS
Client/Server solutions will evolve from Client/Server solutions based on the SIM Toolkit,
Wireless Application Protocol (WAP) and Mobile Execution Environment (MExE)
standards.

1998 1999 2000 2001

SIM Toolkit Dynamic /

(proprietary versions) downloadable
SIM Toolkit app’s UMTS
Distributed Networks
Phase 1
E-commerce (Convergence)
(dual-slot support)

WAP Spec’n 1st Products WAP Products

completed (WML & Scripting) (W-TAI support)

SMS USSD GPRS W-CDMA

These standards should be seen as complementary with each having the potential to
fulfill a separate role. SIM Toolkit provides the secure mechanisms for authenticating
applications and content, accessing service profiles and encrypted access to electronic
commerce features, whilst the SIM stores the bookmarks and service parameters for the
VHE. WAP will provide the man-machine interface, phone-control related features and
the language to bind these to the phone. MExE provides the core API hooks as part of
the distributed environment.

• SIM Toolkit
The current SIM toolkit standard (GSM 11.14) allows the SIM to be used to intercept all
calls made from the mobile, and block or change the number dialled. The SIM can also
directly manipulate the menu structure of the terminal’s user interface, adding new menu
options tailored dynamically to the service being used. Over The Air activation and
download are also supported through existing mechanisms.

• Wireless Application Protocol (WAP)

WAP is currently being developed to provide a standardised way for a Server based
application to interact with the terminal user interface. It provides a script based language
which can be downloaded into the mobile to control the terminal's user interface, mostly
for access to information and content services. WAP is not GSM-specific. The scope for
the WAP Forum is to define a set of standards to be used for developing applications
over wireless communication networks.

• Mobile Execution Environment (MExE)

MExE will extend the capabilities of WAP by adding security and flexibility. It is likely to
be based on Java Applets which will enable MExE to offer a more powerful range of
features, a range of security levels and privileges depending on their authorisation and
greater control of the telephony features than currently exist within WAP.

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 UMTS System Architecture

SIM Toolkit, WAP and MExE will be key enablers for UMTS. Migration from GSM is
possible by adopting a migration strategy that does not change the user's perceptions of
their service. In other words by introducing new features as part of a total service
package rather than as mere technological changes. If this service independence can be
offered today many of the goals of UMTS become immediately possible.

A simple example of a Stock Quote application serves to illustrate this. Today, using very
simple SIM Toolkit and short messages a user can be provided with tailored content on
their top five shares of interest. As WAP is introduced, giving more control over the man-
machine interface, and greater bandwidths are available this information can be updated
quicker or more historical information can be provided. And as GPRS and UMTS are
introduced then profit and loss details or even live video feeds can be provided.

As far as the user is UMTS

concerned this is still the Buy / Sell
More Info ?

original stock quote WAP

6 month
Profit & Loss
FTSE-100 5690

program but now with FTSE-100 5690

NYSE

Nortel
6882
Motorola 55.76
20.87
Chairman’s
Speech

greater content depth. To

NYSE 6882 Apple 20.98 Live
SIM Toolkit Nortel
FTSE-100 5700 20.87
NYSE Apple
6899 20.98

the network operator the FTSE-100 5787 19.99

Nortel
NYSE Apple
6934 20.72
FTSE-100 5798 20.23
Nortel

user has been migrated

NYSE Apple
6987 21.02 Month Ago
FTSE-100 5856 23.00
Nortel
NYSE Apple
7000 21.23 Week Ago

towards UMTS seamlessly,

Nortel 23.34
Apple 23.45 Yesterday
Today

via GSM and GPRS, with SMS USSD GPRS WB-CDMA

the operator controlling

when additional features
are provided. The operator
is also attracting more
revenue through the
"depth" of the service not Figure 1 - Service Migration
the merits of the
technology.

6.2.4 Benefits
The real power and inherent flexibility of Client/Server can be seen when considering how
leading edge services are delivered when roaming. Current approaches only deliver the
enhanced service while the user is on the home network. This is due to a dependence
on the specific service logic being implemented in the visited network. The Client/Server
approach is independent of the underlying network and delivers the service in the same
way wherever the user may be.

The benefits offered by the Client/Server approach are:

• Flexible and cost-effective development of distinctive services
• The ability to target the cost of complex features directly to those using them (SIM cards
issued to those who need them).
• Can be implemented as overlay to existing GSM (or other) networks, with minimal
changes to MSC components.
• Excellent response time compared to IN when roaming
• Enables true global availability of services when roaming

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 UMTS System Architecture

6.3 Transport Network

6.3.1 Packet Network

6.3.1.1 Requirement

• Efficient data transport

• Efficient voice transport
• Unified network management
• Smooth migration path for data and voice

6.3.1.2 GSM Integration and Migration

At present GSM supports circuit switched traffic only. The first step in the evolution path
towards packet-switched UMTS networks will be the introduction of the General Packet Radio
Service (GPRS) to GSM.

GPRS is a GSM Phase 2+ PSTN

GMSC
feature that provides a
packet-switched network
architecture to handle data MSC
A
HLR BSC BTS
services in parallel with the AUC

circuit-switched network
Gb
architecture for voice. The VAS
Server Packet
SGSN
network expansion builds Traffic

on many of the best Internet Gn

features of GSM, such as
GGSN
the MAP mobility scheme PSDN

and SIM-based security,

and communicates with
existing GSM network
nodes such as the HLR. It
also uses extended GSM
billing records to allow the
commercial procedures for
roaming, billing and accounting to operate.
Figure 2: GPRS Network

The GPRS Support Node (GSN) provides a packet switching function and is a peer of the
MSC - its circuit switched equivalent.

The GSN is implemented as two components - the Serving GPRS Support Node (SGSN) and
the Gateway GPRS Support Node (GGSN) which connects the GPRS network to the outside
world.

In order to provide interworking with circuit-based networks such as the PSTN for both
voice and circuit data calls, a Shared Interworking Function (SIWF) is connected to both
the circuit-switched and packet-switched networks on the mobile side.

GPRS will provide efficient support for a wide range of data services. As higher network
capacity becomes necessary to support high volumes of data traffic, UMTS
implementation enables Operators to build on the existing investment in GPRS and offer
users higher bandwidth data services with lower delay.

The new UMTS BSS will support an evolution of both A and Gb interfaces and so can
connect to existing GSM/GPRS networks to offer voice and packet data services. This

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 UMTS System Architecture

will also be supported by dual-mode mobiles that can handover seamlessly between the
two air interfaces. Key GPRS enhancements will include support for Quality of Service
and a connection-oriented call control model, thus allowing support for multimedia calls
through the GPRS network.

The underlying transmission protocol used for the new air interface will be ATM-based
rather than Frame-Relay. This will require the low-level transmission systems to be
upgraded or replaced. SGSN and GGSN control nodes can continue to be used to control
this traffic because the control and transmission paths may be separated through the
network.

PSTN GMSC

Circuit Switched up to 64kbit/s

MSC
A
BSC BTS

HLR
AUC
Gb
VAS
SGSN RNC Node B
Server

Packet Switched up to 2 Mbit/s

Internet

GGSN
PSDN

Figure 3: GSM to UMTS Network Evolution

Further enhancements to the GPRS Network will support voice traffic through the packet-
based network, moving the GSM voice transcoding function to the edge of the network.
This "Circuit Gateway" will provide voice transcoding and echo-cancellation functions.

By upgrading the GPRS network to offer quality of service levels appropriate for voice
traffic, Operators will have the choice to migrate some or all of their voice traffic from
circuit-switched equipment to more efficient packet-switched systems over a period of
time. UMTS voice calls could be routed either through existing GSM voice circuits, or
more efficiently through the packet network and the Circuit Gateway.

In the early stages of UMTS, circuit based voice traffic is likely to continue to use the MSC
and, as UMTS matures, voice will also migrate to packet.

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 UMTS System Architecture

6.3.1.3 Benefits
Moving to a packet-based architecture has advantages for both voice and data traffic.

Why packet data?

• Reduced core costs - by enabling multiple users to share a single channel, up to ten
times the revenue, can be generated from the same network resources as would be
generated from a circuit-switched data channel.

• Rapid call set-up - UMTS can provide a permanent virtual connection. This means that
the user can be connected all day without consumption of network resources.

Why packet voice?

• Lower transmission costs - encoded voice is sent through to the edge of the network
(or directly to a target device). There are lower costs for interworking functions due to
aggregation (centralised sharing)
• Reduced network management costs - a single integrated transport network handling
both voice & data is easier to manage and provision than two independent networks (this
is already happened in wired Private Networks)
• Increased network reliability - there is potential to use packet-oriented re-routing
techniques to increase availability due to link failure or equipment outage.
• Improved voice quality - tandem-free operation will be common on all mobile-to-mobile
calls, thus noticeably improving the perceived voice quality.

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 UMTS System Architecture

6.3.2 Use of Broadband Switching Infrastructure

6.3.2.1 Requirement

• Efficient transport network

• Reduced running costs

Existing GSM networks rely on Mobile Switching Centres (MSCs) to provide the platforms for
both switching and services.

As described in section 6.2, in UMTS the rapid creation and deployment of services can
efficiently be implemented through the Client/Server architecture.

Deployment of UMTS will occur in a timeframe where the fixed networks, at least in Europe,
will largely have migrated to broadband with switching networks based on ATM platforms.
This gives the opportunity for the UMTS architecture to take advantage of this broadband
infrastructure with its existing switching system.

UMTS can then reduce GSM’s dependence upon specialised MSCs, separate "Transport"
from "Services" and thus enable the rapid development of rich applications capable of
operating in the same manner on any network in any country in line with the vision of
seamless global roaming.

6.3.2.2 Migration from GSM

A high level view of the migration of today’s GSM network architecture to UMTS is shown
below. The UMTS architecture takes advantage of the broadband core network to create
a distributed solution. The switching functions that are a core aspect of the BSC and
MSC today will be implemented by the broadband network and the control functions will
be implemented by server technology. The Circuit Gateway provides an interface
between the core broadband network and legacy circuit switched networks.

ETSI is arriving at consensus to use ATM for the transport between the UMTS
basestation and the RNC. IP switching products are being announced frequently and
could displace ATM as the transport of choice as the future networks evolve.
Legacy
PSTN Networks

Circuit
OMC-S MSC Gateway
OMC

Broadband UMTS
OMC-R BSC BSC/RNC
Network
Server Server

BTS BTS BTS BTS

Figure 4 Evolution to Broadband Switching

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 UMTS System Architecture

6.4 UMTS Future Vision

The UMTS core network will be based upon a broadband network carrying IP-based traffic.
An ATM network could provide the quality of service necessary for reliable and efficient
transport of multimedia data. Due to the need to support legacy interconnect options to the
cell site for many years, Frame Relay remains an attractive option to maximise the efficiency
of the BTS backhaul links.

The key changes in the UMTS architecture are that:

• The NSS has moved to an efficient packet-based transport, using low-cost standard
packet switches to route the call and signalling traffic. This also requires changes to the
peripherals, such as the voice mail system, which now operates in a packet-based voice-
transcoded (and thus higher voice quality) mode.
• The transcoding and data-interworking functions have moved to the periphery of the
network, where it connects with other networks

In the future UMTS network, the functions required to control the mobile network are
server based and the switching functions are carried out by the underlying broadband
network. The core platforms are built upon a common hardware and software architecture
allowing functions to be distributed as required.

Figure 5 UMTS Future Vision

PSTN PDN TIPHON
Service
Service
Provider Mgmt

Circuit GGSN
HLR, SLR Gateway Packet
GMSC Gateway
CAMEL Server
SIM Server
UMTS
Server

Broadband
NMC Network
BSC/RNC
Application
Server
Server
In-Building
System

BTS
Corporate BTS GSM Dual
UMTS
BTS Mode
BTS
BTS

The Circuit Gateway is located at the edge of the network and is responsible for adapting the
internal voice and data formats of the UMTS system to the external circuit oriented PSTN.
This platform also incorporates the echo-cancelling function.

The GGSN Packet Gateway acts as the gateway to external packet data networks such as
the Internet or X.25 networks. The GGSN is likely to become the interface to new packet-
oriented fixed networks for voice transport such as TIPHON.

The UMTS Server incorporates the call processing and mobility management functionality of
the MSC and SGSN. The Server will support a CAMEL interface enabling supplementary
services to be implemented externally.

The BSC/RNC Server provides similar functionality to the current GSM BSC and also
incorporates the ‘selector function’ required to manage the W-CDMA soft handover process.

The HLR Server provides a platform for enhanced services supporting both CAMEL IN
and Client/Server techniques. This platform will be a core element enabling the Service
Provider role.

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 UMTS System Architecture

Software radio techniques will support the introduction of dual mode BTS that can support
both GSM and UMTS air interfaces.

The key areas not changing, and thus protecting the operators investments include:
• Use of MAP signalling to a central HLR, allowing interworking with pre-UMTS networks
• Use of existing interworking links with other voice and data networks
• Use of existing provisioning, customer care and accounting systems

6.4.1 Benefits
The key benefits of this new architecture are:
• Reduced NSS capital costs, because the core traffic routing functions are now built on
packet routers supplemented by controllers running on industry standard fault-tolerant
computer systems.
• Reduced NSS running costs, because all traffic is now carried in compressed form to the
edge of the network; local interconnect and optimal routing are used where possible; and
NSS resources can be efficiently allocated from any location.
• Higher quality, especially for voice calls, because of tandem-free operation and
transcoding only where required. This also applies to Voicemail etc. where the voice
messages are stored in the same compressed formats.

This architecture for UMTS provides for a smooth, seamless evolution from GSM to UMTS
while protecting the operator’s investment in existing infrastructure. Large GSM cellular
networks represent a significant investment; UMTS would not be successful if it requires a
complete replacement as occurred in the transition from first generation analogue to second
generation digital networks.

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 UMTS System Architecture

GLOSSARY OF ACRONYMS

AMR Adaptive Multi-Rate

API Applications Programming Interface
BER bit error rates
BRAN Broadband Radio Access Network
BSC Base Site Controller
BSS Base Station Subsystem
BTS Base Transceivers Station
CDMA Code Division Multiple Access
EC European Commission
ETSI European Technical Standards Institute
EU European Union
FDD Frequency Division Duplex
GPRS General Packet Radio System
GSM Global System for Mobile communications
IN Intelligent Network
IP Internet Protocol
ITU International Telecommunications Union
MexE Mobile Execution Environment
MSC Mobile Switching Centre
OMC Operations and Maintenance Centre
QoS Quality of Service
RNC Radio Network Controller
SGSN Serving GPRS Support Node
SIM Subscriber Identity Module
TD-CDMA Time Division CDMA
TDD Time Division Duplex
UMTS Universal Mobile Telecommunications System
UTRA UMTS Terrestrial Radio Access
VHE Virtual Home Environment
WAP Wireless Application Protocol
W-CDMA Wideband CDMA

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