SOLUTIONS BRIEF
Mobile Tethering
Operators need to
understand tethering
usage to ensure
they are managing
capacity effectively to
deliver high Quality of
Experience (QoE)
MARKET OVERVIEW
Mobile smartphone subscribers are buying a variety of devices also designed for mobile
Internet access, such as tablets, eReaders, and ultra-compact notebook computers. Even
though these devices are small enough to take everywhere, most of them do not have
separate cellular data plans that would give their users ubiquitous Internet access. According
to IDC, more than 70% of all iPads sold in 2011 were Wi-Fi-only versions. The number of
iPads used without a cellular data plan exceeds 90% when you factor in owners who never
activated their cellular-ready iPads with a mobile service provider.
Users who own mobile Internet devices in addition to their smartphones are trying to avoid
the expense of paying for multiple, mobile service provider data plans. Besides “free” Wi-Fi
Internet access, their other option is to use their smartphone as a cellular data modem and
connect – or “tether” – to their tablets or notebooks. This allows for a single data plan that can
provide Internet access to any of their mobile devices. This “tethering” is usually charged as
a service feature or bundled with higher monthly smartphone data plan limits. A smartphone
can be tethered to a slave device via cable, Bluetooth, or Wi-Fi connection.
Even though mobile service providers have implemented various pricing models to monetize
tethering, mobile subscribers use many different schemes to evade being charged for it. By
“jailbreaking” or “rooting” their smartphones they are able to install “unapproved” third-party
tethering applications or configure phone settings to enable tethering on lower limit data plans
while avoiding charges. To stop these practices and implement revenue assurance measures
that preserve the profitability of their core services, service providers need to detect when
tethering is occurring and ensure that subscribers are adhering to the terms and conditions
of their service plans. This is also critical for operators, who often use the number of dongles
versus smartphones to forecast network capacity growth, as a tethered smartphone behaves
like a dongle. Even if they are not monetizing tethering, operators need to understand
tethering usage to ensure they are managing capacity effectively to deliver high Quality of
Experience (QoE). Although 100% tethering detection is not possible, detecting tethering
behavior that could cause network problems is possible using Internet Intelligence technology.
MARKET DYNAMICS
There are several key dynamics impacting the market for tethering services:
• Accelerating demand for mobile Internet devices in all form factors
IDC forecasts worldwide shipments in 2012 of more than 600 million smartphones and 100
million tablets, 90% of which are Apple and Android-based tablets. By 2016, IDC expects
global shipments of smartphones and tablets to double, reaching over 1.2 billion units
and 200 million units, respectively. Smartphones are experiencing high growth due to their
versatility and ever increasing applications—including rapid adoption of mobile messaging
and social networking—falling prices, faster 3G and 4G networks, increasing price
competition among service providers, and the ability of mobile device operating systems to
handle newer and faster hardware. Tablets are coming on strong because they offer a more
compelling user experience than PCs, to the point where they are starting to replace
laptop computers.
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PROCERANETWORKS.COM
SOLUTIONS BRIEF
Preventing
unauthorized
tethering or putting
limits on authorized
tethering is the only
way to prevent
excessive, unplanned
network usage.
• Surging use of hotspot-capable smartphones across 3G and 4G markets
Wi-Fi capable smartphones represented 95% of total smartphone sales in 2011 according
to Strategy Analytics. This gives smartphones the capability to tether to multiple devices
at the same time, creating a personal Wi-Fi hotspot. Strategy Analytics forecasts growth
in sales of mobile hotspot handsets will exceed 400% between 2011 and 2016. This
capability is already common in Android 4G LTE smartphones and support for it is expected
in the next iPhone. Hotspot-capable smartphones will become the preferred way to tether
as this capability becomes ubiquitous.
• Adoption of higher limit, 4G LTE data plans
Data service plans on LTE networks are currently following the pricing models established
in 3G networks. The plans are tiered by monthly data limits, currently ranging from 1GB to
10 GB in the U.S. and Asia and up to 30GB in Europe, with data speeds often throttled and
overcharges assessed at different data increments and pricing.
• Unrestricted or unauthorized tethering will continue to strain mobile operator networks
With 4G data speeds and data plan limits increasing, mobile subscribers are more likely
to take advantage of tethering to maximize use of their plan limits. Service provider 3UK
is already reporting that 10% of its network traffic is from tethering and continues to grow
in popularity. In order to stop revenue and profitability erosion, service providers need to
manage tethering usage. Preventing unauthorized tethering or putting limits on authorized
tethering is the only way to prevent excessive, unplanned network usage.
Figure 1
NETWORK USAGE
Smartphone Hotspot
3G / 4G Radio
Access Network
3G / 4G Mobile
Core Network
Policy and
Charging Control
(PCC)
PCRF / OCS
Applications
IDP Subscriber Manager
IDP Real-time Enforcer
Internet
Radio Network
Controller (RNC)
Gateway GRPS
Support Node
(SSGN)
or
or
Serving
Gateway
(S-GW)
IDP Statistics Collector
Content
5
4
Packet Data
Network Gteway
(PDN-GW)
3
2
1
Procera
Intelligence Delivery Platform
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SOLUTIONS
CASE STUDY
BRIEF
Procera’s products
have been deployed
in some of the
world’s largest mobile
operator networks
to monitor, manage,
or monetize network
traffic while attaining
industry-leading
scalability & reliability.
SOLUTION NEEDS
Mobile operators looking to manage and monetize mobile tethering face some
fundamental questions:
• Is unauthorized tethering occurring in their network?
• How much data are authorized tethering subscribers using?
• Which devices are their subscribers tethering?
• Must tethering limits be imposed even in the context of unlimited data plans?
• How are tethering features monetized as part of a service bundle?
As they execute their plans for managing and monetizing tethering, mobile operators must
consider three key success factors.
1
AWARENESS of what is happening in their network is the first step to
understanding tethering usage in their network. Initially, service planning should
be centered around subscriber, device, location, and application awareness in
the mobile operator’s network, helping the marketing team understand tethering
usage characteristics and patterns that can help them define how existing plans
can include tethering. For service providers that have previously allowed “free”
tethering, heightened awareness is critical since subscribers may resort to using
unauthorized tethering schemes to avoid paying fees.
2
BLOCKING tethering, whether or not it is permitted by the subscriber service
plan agreement, is key to protecting mobile operator revenue and profitability.
Highly accurate tethering detection is key to enforcing blocking policies. This
ensures that authorized tethering is readily distinguished from unauthorized use,
minimizing red flags issued for legitimate subscriber tethering, especially when it
causes excessive network usage.
3
Monetization of tethering services can be a significant revenue opportunity for
mobile service providers but it requires flexible service plan implementation to
provide subscriber value. Tethering is typically offered as a feature bundled with
a data service plan, a feature add-on to an existing plan, or as a stand-alone
service. But many variations on these pricing models are possible. A subscriber’s
unlimited data plan service could be modified to allow tethering with a specific
monthly tethering limit, throttle bandwidth under certain conditions, or restrict
tethering usage to specific days and/or times. When unauthorized tethering
usage is detected, service providers could also implement an up-sell strategy.
In this scenario the subscriber is warned, then directed to a captive portal that
allows them to “legitimize” by selecting a service upgrade.
THE PROCERA SOLUTION
Procera’s products have been deployed in some of the world’s largest mobile operator
networks to monitor, manage, or monetize network traffic while attaining industry-leading
scalability and reliability. At the heart of the Procera solution is our Intelligence Delivery
Platform (IDP), comprising:
• IIDP Real-time Enforcer
• IDP Subscriber Manager
• IDP Statistics Collector
These platforms interact with various CDMA, 3G UMTS, and 4G LTE mobile network elements
to provide intelligence delivery and policy enforcement. Together, they help mobile operators
address the three key success factors for managing and monetizing mobile tethering.
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SOLUTIONS BRIEF
Procera Networks,
Red Hat, Intel,
Openet, Amartus,
and Cobham deliver
a fully integrated,
real-world NFV
implementation that
lets you monetize
your virtual network
and transform your
business model to
gain a competitive
advantage.
• Awareness
The IDP Subscriber Manager is the main component in establishing tethering usage
policies. It does this by connecting with 3GPP mobile network Policy and Charging Control
(PCC) components—the Policy and Charging Rules Function (PCRF), Online Charging
System (OCS), and Offline Charging System (OFCS)—to establish subscriber awareness in
the mobile operator’s network. Tethering awareness properties can include subscriber (IMSI)
and device (IMEI) identification, location (ULI), service plan information, and subscriber
session connectivity with network elements such as the GGSN, S-GW, and PDN-GW.
Tethering detection is session based, allowing for detection every time the subscriber
initiates a new PDP context later. This mechanism allows the subscriber to restart their
phone to receive a new PDP context and continue using authorized data services.
All tethering statistics generated by the IDP Real-time Enforcer can be visualized in real
time or sent to the IDP Statistics Collector for further reporting and analysis, using Report
Studio, to support business planning.
• Blocking
The IDP Subscriber Manager feeds the subscriber policies provisioned to the IDP Realtime Enforcer to enforce policies that detect tethering and redirect customers to a portal to
purchase a tethering plan, or block it if the user continues to violate the Terms of Service.
Tethering policies are enforced by the IDP Real-time Enforcer through Procera’s industryleading Datastream Recognition Definition Language™ (DRDL) technology. The system
can also detect illicit modem when a mobile subscriber takes a SIM card provided with an
authorized mobile device and inserts it into a modem or dongle to tether with a laptop or
a PC. Tethering usage reports can be used to identify subscribers that may be tethering
without a service plan and help service providers assess network impacts, aiding capacity
planning.
• Monetization
The IDP Subscriber Manager integrates tightly with PCC components to enable
monetization of authorized tethering services.
Many tethering service personalizations are possible with Procera’s IDP system, including:
• Offer tethering as part of an existing data plan with separate data limits
• Offer tethering as a stand-alone plan
• Direct subscribers engaged in unauthorized tethering to a captive portal to choose
from legitimate tethering options
• Time-of-day based tethering
• Limit tethering bandwidth at specific data plans limits
Contact your Procera sales representative to find
out more about this solution and how it can help
you transform your business.
v20161115
ABOUT PROCERA NETWORKS
Procera Networks, the global Subscriber Experience company, is revolutionizing the way operators and vendors monitor, manage and monetize their
network traffic. Elevate your business value and improve customer experience with Procera’s sophisticated intelligence solutions.
For more information, visit proceranetworks.com or follow Procera on Twitter at @ProceraNetworks.
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