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March 15th, 2005
The Great Debate
Switches, Servers, and the World of Prepaid


By Robin Tobias
You purchase a phone card in a store, dial the 800 number, enter the PIN, and voila – you have made a prepaid phone call. Seems simple enough, and is probably the way our industry is viewed from the outside. Those of us who operate on the inside realize that the technology behind that prepaid call is far more complex. The latest and greatest in hardware and software run this operation, and are instrumental to the success of your business. If you are the underlying telecom carrier providing the service, this backbone IS your business.

So, you need a solid, reliable, prepaid platform, where do you go? Just a year or so ago, any techie worth his salt would have recommended a programmable switch, a TDM-based (Time Division Multiplex) legacy platform. In prepaid, we have come to know Excel, NACT, Versatel, and Simplfied as the most common vendors of such platforms. Today, we have several feature-rich server-based systems available, that not only provide significant cost savings over programmable switches, but can process the same call volume. Lately, even some of the programmable switch vendors have started incorporating server-based systems/functionality into their offerings, to meet the needs of a changing telecom landscape.

Switches and Servers Defined
“A server-based prepaid platform is a 100% ‘software platform’ and application utilizing industry standard servers typically running on Linux, Solaris, or other Unix operating system variants,” explains Ken Osowski, VP marketing & product management, Pactolus Communications. “These servers, called application servers, connect to the Public Switched Telephone Network, or PSTN, using media gateways (i.e. the switching fabric) through industry standard IP protocols such as SIP, MGCP, and RTP. These two components – the application server and media gateway - form the basis for a next generation server-based platform.”

A TDM-based legacy prepaid platform is made up of a 1) TDM-based switch and an API for application developers to build prepaid services to (Excel model), or 2) a TDM-based switch with an integrated prepaid application that is supplied by the switch vendor (NACT, Versatel model). In the first case, the applications developed by third party software developers for a particular switch API are tied to that switch. Multiple prepaid applications could be available for that switch from different software developers. When the hardware and software are integrated, as in the second case, all the prepaid software and hardware are from the hardware vendor. Versatel Networks recently acquired Tangerine for its server-based system. Thomas Howe, CTO of Versatel explains that the programmable switch, “can be constrained by the limitations of its custom hardware.”
Inherent Differences

Although the user experience is identical, the architectures of the server-based system and programmable switch are inherently different. For server-based prepaid platforms, the TDM connectivity is provided by a media gateway products such as those supplied by Sonus, Telica/Lucent, Cisco, Sentito and others. The server-based prepaid solution typically connects to these network elements using the IP-based protocols SIP and RTP. This separates the switching fabric from the application giving service providers the ability to choose a server-based prepaid application and switch hardware independently, assuming that both interoperate using these IP-based protocols.

“For TDM-based legacy prepaid platforms, the TDM connectivity is part of the TDM-switch. With the application API tied to the switch platform defined as a proprietary interface, service providers would not be able to source an open application framework down the road that might inter-work with other switch vendors as their needs change,” says Osowski.

The other components of a server-based prepaid solution typically include an IP Media Server for IVR, Database Server for management of subscriber profiles and call record details, and a Web Server for deploying subscriber portals that enable them to manage their service features and options.

Bill Kelly, director of marketing for Excel, says, “Excel has always embraced the app server, media server, media gateway concept. As you know, prior to any of this terminology even being around, Excel was a ‘programmable switch’ – essentially a matrix where all the voice calls, signaling and DSP capabilities were built in (media server). To control the switch, and deliver value added services, Excel’s business model has always been to work with software developers who created applications (like prepaid), and ran them on a host (application server) that connected to the Excel via an API. As an all digital platform based on IP, Excel’s platform evolved to include VoIP (SIP & H.323), as well as TDM, now making it a media gateway as well – bridging TDM and IP, wireless, and wireline.” Excel is of the belief that the “soft” server-based models are best for lower density networks, in more of a large enterprise type of facility. “No heavy lifting, like transcoding, conferencing, and interconnection in the TDM world,” says Kelly.The Benefits

“The primary benefits of server-based systems are that 1) they give service providers more flexibility in choosing the various components for a best-of-breed total solution, 2) they typically embrace Service Creation tools that make it much easier to customize services or add new features, and 3) upgrading the software environment to a new price/performance level does not require a ‘fork lift upgrade’ of the entire system,” explains Osowski. New computer hardware can be used as it becomes available without “fork lifting” the application. Howe adds that another primary benefit is their cost effectiveness in regards to hardware.

“Because server-based prepaid platforms are 100% software environments with advanced service creation environments, these systems have already gone beyond the functionality provided for in TDM switch-based prepaid solutions,” claims Osowski. In the legacy environments, the switch vendors would have to at least add new software interfaces, if not hardware interfaces to help application developers extend their application’s capabilities. “Again, the decoupling of hardware and software in server-based solutions using industry standard IP protocols is a huge step forward in letting service providers and application developers innovate to meet market opportunities.”

Any service provider can take advantage of this technology, whether they are servicing subscribers on the PSTN only or have a business model that also incorporates VoIP. These service providers may offer only prepaid services like many companies do today, or they can become full range service providers also embracing VoIP telephony services, web collaboration with audio conferencing, operator services, and voice messaging. Osowski adds that “server-based prepaid platforms are not a one trick pony that deliver only one service. Service providers can bring many value added services to market with SIP-based application server approach.”

Costs & Capacity
Systems can start with a hardware investment of as little as $20K for the server components plus the server-based prepaid software to form a total solution. Then comes the price of a media gateway, which can vary widely based on the amount of TDM network connectivity required. Depending on the vendor, certain features might be included, with other applications requiring additional licenses.

A single session is required on an application server to support both the A-leg and B-leg of a prepaid long distance call. This translates to 2 TDM ports on a media gateway where the call is hairpinned. Systems commercially deployed have already scaled up to 30,000 concurrent calls that support several hundred millions minutes of prepaid traffic. “But this is not the limit since a single Linux server can support up to 2,000 call sessions and multiple servers can be clustered to support call volumes well over a billion minutes per month in a single node,” adds Osowski.

Words of Wisdom

“It is easy for prospective buyers to get a handle on the technology and how it compares to TDM-based legacy solutions,” says Osowski. “But getting a handle on the flexibility of the software environment, the scalability and reliability of the solution can only be assessed by understanding how this technology is getting deployed in real world deployments.”
Howe offers, “Start small. Watch your costs and conduct rigorous testing before you launch the service.”



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