Cellular Core Enterprise White Paper by Rethink Technology Research

A white paper for Quortus
By Rethink Technology Research Lead Author:
Caroline Gabriel, Research Director

December 2013

Putting cellular
at the core of the
enterprise

Putting cellular at the core of the enterprise

Executive Summary
Enterprises of all sizes are facing unprecedented volume and complexity of both data and
communications traffic, and the challenges only increase when those two converge. Indoor consumption
by enterprises will account for 24% of monthly mobile traffic in 2017, a total of 2234 petabytes a month,
but for many organisations, the biggest challenge is to deliver good coverage, mobile hand-off and quality
for voice. As usage shifts from desk phones to mobile devices, enterprise voice traffic will still be growing
at 12% a year up to 2017.
All this is driving increased investment in wireless networks in the enterprise sector, but there is rising
awareness that existing solutions do not meet the whole range of needs of business users. Key among
these needs are ubiquitous coverage, especially for voice; scalable and affordable data capacity; security;
increasing integration with IT systems, while maintaining clear demarcation between MNO and enterprise
IT; regulatory compliance.
There is rising interest in small cells to help address these needs, and to enable new services with location
or presence awareness, for employees or customers. These cells can work alongside existing Wi-Fi and
PBX systems to enhance coverage, capacity and mobility indoors. The approach has benefits for the
enterprise and the operator, and can drive new business models such as neutral host and cloud-based
approaches.
The enterprise gains dedicated voice capacity, mobile unified communications, scalable capacity targeted
where required, improved quality of service, location aware services and analytics, and better IT
integration. The operator can provide more business critical benefits and improve its strategic
relationship with the enterprise; reduce churn by supporting improved capacity and quality; and offload
significant volumes of data, voice switching and signalling from the macro network to the small cells.
Despite these benefits, first generation small cells have not generally been geared to large-scale
implementations and a new generation of systems is emerging which provides far greater functionality
and manageability, whether via a hosted solution or a local control platform. In particular, they are being
deployed in such a way that a high level of functionality is deployed at the network edge, close to the
users.
This thinking underpins and differentiates Quortus’s solution for the enterprise small cell market, the ECX
Enterprise Concentrator and ECX Enterprise Gateway. This duo implements functionality usually found in
the mobile core in a localised way, supporting network efficiency – offload, local call switching, more
granular analytics – and locally aware services. It can run on standard hardware or the small cell itself, and
can also support a hosted services platform owned by an MNO or other third party. It supports four key
areas of functionality which can significantly enhance the enterprise and operator business case:
•
•
•
•

Iuh aggregation
Mobility offload
Voice and data offload
Local service interaction

The small cell business case for enterprises is compelling, as outlined in Chapter 3 and the SCF’s Release
Two program documents. However, the case becomes even more attractive when an enterprise
controller is implemented. Quortus is taking a pioneering role in the trend to offload enterprise mobile
traffic to the edge of the network where it can support the highest quality and business value.

©Rethink Technology Research Ltd 2013


Contents
1.

Introduction and context

1

a.

The data and communications challenges facing enterprises

1

a.

The need for new network options

2

2.

Key enterprise requirements
a.

3.

Are these being met by current solutions?

3
3

The emerging small cell platforms

5

a.

Small Cell Forum Release Two

5

b.

The new generation of small cell solutions

5

c.

Moving core functionality to the network edge

6

4.

The Quortus solution

9

a.

10

b.
5.

The key functionalities of the Quortus ECX solution
Customer premises or cloud-hosted - where is the edge?

11

Conclusion: The business case summarised:

Figure 1
Figure 2
Figure 3
Figure 4
Figure 5

Table 1
Table 2

13

Forecast growth in mobile voice and data (Sources; Ericsson, Cisco, Rethink Technology
Research)
2
Key activities which can be moved to the edge of the network, to improve efficiency or support
new functionality
6
Deployment of enterprise small cells to 2018, and the number which will feature localized
processing and intelligence (directly or via a controller).
8
The physical edge of the network, where the edge is collocated with the radio but the MNO
boundary remains protected
11
The logical edge, where the enterprise concentrator functionality is deployed in the cloud as a
hosted service. Third party service providers can add value in this model and there is no impact
on the physical edge. The MNO boundary remains protected and this is compatible with legal
intercept requirements
12
Comparison of enterprise and residential environments for wireless systems
Pros and cons of main enterprise wireless options


3
4


1. Introduction and context
a. The data and communications challenges facing enterprises
Enterprises of all sizes are facing unprecedented volume and complexity of both data and
communications traffic, and the challenges only increase when those two converge.
Huge data files and high definition video streaming are no longer the preserve of specialist
applications, but are part of day-to-day work. Employees need to be able to access and exchange
that data from any location in the enterprise as the smartphone replaces the desk phone and even
the PC. Even more urgently than additional capacity, companies’ wireless networks need good
coverage to support high quality voice everywhere – still the ‘killer app’ for many sites as the
majority of voice calling now takes place on smartphones.
Figure 1 indicates the scale of the expected increase in enterprise mobile voice and data usage. In
data, indoor consumption by enterprises will account for 24% of total monthly mobile traffic by 2017,
a total of 2234 petabytes per month. This will be up by a CAGR of 62% from 2012. While this growth
rate is slightly lower than that for total mobile usage, mainly because of high consumer uptake of
video, in voice traffic, enterprise usage continues to grow, largely because of fixed line displacement,
even when the total segment flattens. By 2017, enterprise voice traffic will be about 95 petabytes
per month, 36% of total voice traffic, and still growing – the CAGR since 2012 will be 12%, compared
to 6% for the segment as a whole.

All this is driving increased investment in wireless networks in the enterprise sector. However, many
enterprises are unsure how to rise to the challenge of supporting high volumes of mobile traffic in a
way that enhances their business case while keeping costs manageable. While most have Wi-Fi
networks, which address some of the issues, they increasingly need to have cellular connections
deeply integrated into their environment too, to support greater mobility and new services. This
presents a significant opportunity for mobile operators to support full mobile broadband within
enterprises, in order to address their need for capacity, coverage and QoS (quality of service) most
cost-effectively and scalably.
That process is seeing some new solutions emerging, based around the key concepts of small cells,
localized intelligence and the option for hosted services, all of which will give mobile operators and
their partners much improved tools for taking a strategic role in the wireless enterprise market.
The effort to optimise small cell platforms to meet a complex mixture of enterprise needs is being
spearheaded by the Small Cell Forum’s Release Two program, which aims to define platforms and
best practice in this area, and is being driven by innovative enterprise specialists such as Quortus.
Small cells, as this paper will describe, allow mobile operators to offload 3G/4G voice, data and
signalling traffic to dedicated enterprise cells at the edge of the network. That supports improved
quality and services for the enterprise, and has key benefits for the MNO – improving its strategic
relationship with the business customer, and reducing strain on its macro network.


1


300

10000
9000

250

8000
7000

200

6000
5000

150

Total voice/data
Enterprise voice/data
Voice

4000

100

3000
2000

Enterprise voice

50

1000
0

0
2012

2013

2014

2015

2016

2017

Figure 1 Forecast growth in mobile voice and data (Sources; Ericsson, Cisco, Rethink Technology Research)

a. The need for new network options
The key drivers of demand for a new approach to enterprise wireless networks are:
‘Mobile first’. In many organisations of all sizes, the most commonly used device is the smartphone.
This change of behaviour is encouraged by:
•
•
•
•

Corporate mobile enterprise and flexible working strategies which support most key applications
to be used on the move
Consumer behaviour changes
BYOD (bring your own device) policies, which may be driven by employee preference or corporate
cost savings. Employees who choose their own devices generally use them more heavily
Indoor coverage and quality.The above changes are spelling the end of the desk phone in many
organizations, but that leads to a requirement to support a similar level of voice and data quality,
in every place in the enterprise, and with mobile hand-off. Poor coverage, especially for voice, is
one of the chief reasons why companies churn to a new operator, and in the case of voice, there
is also the need to replicate PBX functionality for cellphone users.

New data applications. The mobile enterprise creates rising levels of data usage and exchange as
applications such as customer response management and salesforce management move from the PC
to the mobile device. In addition, business functions increasingly take advantage of high quality video
in areas such as conferencing and client communications.
Customer-facing applications. Businesses increasingly provide services to add value for partners and
customers on their premises. These range from simple access for guests – outside the company
firewall – to sophisticated personalized promotions to be offered to shoppers in a retail store. Yet
most enterprises do not have inhouse expertise in creating these mobile services.


2


2. Key enterprise requirements
All these examples add up to a complex enterprise wireless environment with a wide range of
requirements, many of them business critical. The key characteristics of the enterprise, as opposed
to the residential or consumer sectors, are illustrated below, and they demand a specific set of
functionality from wireless systems and operator partners
Residential
Single cell, single location
Low user density and traffic load
No or limited mobility
Limited local services
User expectation same as macro
Limited scope for operator to monetize

Enterprise
Multicell, possibly multi-location
Medium to high user density and traffic load
Mobility – internal and out to macro
High level of local services needing to interoperate
Higher user expectations, business critical
Revenue opportunities for operator and enterprise
itself

Table 1 Comparison of enterprise and residential environments for wireless systems

Of course, individual enterprises are very different in size, business case, type of premises, staff numbers
and mobile strategies. This fragmentation is especially visible in the SMB (small to medium business)
segment, which is also the one that has been least well served by existing solutions – most offerings which
support top class coverage/capacity and full IP integration are well beyond the means of the average
SMB.
But while different organisations will use mobile and wireless networks in different ways – varying levels
of adoption of mobile apps and video, for instance; or assorted ways to deliver mobile services to
customers – there are some generic requirements which most companies will have from their wireless
systems. These are the underpinnings of the Small Cell Forums’ Release Two program (see chapter 3).
These include:
•
•
•
•

Ubiquitous coverage, especially for mobile voice
Data capacity sufficient for current requirements and scalable for the future
Cost effectiveness
Security
•
•
•

•
•
•

Full management of mobile devices by IT security policies
Firewalls to prevent IP bridging
Maintenance of IPsec tunnels etc.

Integration with IT systems such as customer relationship management and billing, to support
monetization .
Despite the above, a clear demarcation between MNO and enterprise IT responsibilities in terms
of system management, security, hand-off
Regulatory and legal intercept compliance

a. Are these being met by current solutions?
This complex and broadening set of requirements represents a significant opportunity for operators to
increase their revenues and their strategic role in the enterprise space, if they can provide solutions which
fully meet the above needs.
While there are several well-established wireless solutions already in use in many enterprises, there is no
single approach which ticks all the boxes listed above, as illustrated in Table 1. The main wireless
platforms are:


3


•
•
•
•

Wi-Fi, often integrated with the wireline network and PBX
Reliance on the macro network penetrating indoors, sometimes with the help of repeaters
DAS (Distributed Antenna System), especially in very large premises and public areas
First generation small cells, which have mainly been deployed in small numbers to fill spots of
poor coverage or capacity.
Pro

Wi-Fi

•

DAS

•
•
•
•
•

Macro network only

•

Con
Broad ecosystem drives strong
prices
Large device base
Standards based
High capacity and data rate
Strong on coverage and voice
quality
Usually managed by operator or
integrator
No additional cost

•

Coverage and hand-off limitations
restrict voice effectiveness except
with very expensive specialized
solutions

•
•
•

Very expensive
Only really suited to large premises
Lengthy deployment time

•

In-building penetration often poor,
reducing coverage and capacity
No integration with IT and PBX
systems
Little enterprise control of mobile
costs and usage
Hard to scale
Little integration with IT and PBX
systems

•
•
Standalone small cells

•
•
•

Cost effective
Targeted capacity and coverage
Seamless integration with macro
network

•
•

Table 2 Pros and cons of main enterprise wireless options

All these technologies will continue to have a role in the enterprise, especially Wi-Fi, which provides much
of the data capacity required at affordable cost. Indeed, an important requirement of any cellular option
will be integration with the corporate WLANs, something helped significantly by the proliferation of
multimode devices and of automatic hand-off techniques such as ANDSF and Passpoint. However, there
is a clear gap for a solution which supports broad coverage as well as capacity, voice quality, scalability,
manageability by the enterprise, and integration with both macro and IP/IT systems.
MNOs will not achieve this effectively using just their macro networks (see below). Instead, they need a
platform which can offload the critical enterprise functions to the edge of the network, and can therefore
address the full shopping list of requirements with optimised quality. In particular, an MNO’s solution
needs to support the following four areas of functionality:
•
•
•
•

Flexible scalability using Iuh aggregation to add new small cells as required. This can increase high
quality coverage as required and map it to usage patterns
Mobility offload to support full mobile hand-off indoors, at optimised speed and QoS because it is
managed at the edge
Voice and data offload also improve capacity and quality indoors as enterprise users can take
advantage of a dedicated network and even when they hand off to the macro network outdoors,
it is under less strain
Local service interaction so that small cells and mobile functions can be fully integrated with other
enterprise systems including PBX, WLAN and IT applciations.


4


3. The emerging small cell platforms
As outlined above, operators will increasingly look to solutions based on small cells to enhance the
functionality they can offer to enterprise customers. This is reflected in the most recent work of the Small
Cell Forum (SCF), the industry body which drives ecosystem and standards work for this segment and
feeds into full standards bodies like 3GPP

a. Small Cell Forum Release Two
In response to the growing level of enterprise interest in small cells, the Small Cell Forum (SCF) has
extended its Release Initiative, which aims to provide ‘how-to’ guides for operators in various segments.
Release Two is focused on helping the enterprise segment deploy small cells by creating a deployment
handbook – in effect, a knowledge base of tools and best practice, to reduce risk and promote
understanding. The full Release Two documents are being launched this month (December), based on
input from operators and the industry, and Quortus has taken a major role in the process by contributing
content to Release documents and the Quortus CEO, Andy Odgers, being on the Forum’s Release Steering
Committee.
The program will help to make a powerful case for enterprise small cells. Among the key features and
capabilities identified by the SCF are:
•
•
•
•
•
•
•
•

dedicated voice capacity, identified as the most important application for a majority of
enterprises
mobile unified communications
scalable capacity targeted where it is required
offload of voice and data and local voice switching, improving QoS
network analytics precise to location
context and location aware services for employees and customers
improved manageability and IT integration
better mobile cost control

All these capabilities will ensure small cells an important role in delivering high quality voice and data
services within the enterprise. That, in turn, will greatly strengthen the MNO’s business case by improving
the services they can provide to companies of all sizes, and by offloading traffic from their macro
networks.

b. The new generation of small cell solutions
The Release Two documents will also identify challenges, the main ones being “inter-cell interactions,
larger coverage areas and increased user numbers typically with higher user mobility”.
That points to the need for a new generation of small cells which can radically improve the range and
quality of services MNOs can deliver to enterprise customers. These new platforms need to be optimised
for the enterprise and designed to maximise coverage, high mobility, local intelligence, and integration
with existing systems such as PBX and WLAN.

The gaps in existing solutions are driving an increased interest in the enterprise sector in such
platforms which harness small cell technology, but also provide a strong local or hosted platform for
network functionality, applications and integration. The new wave of small cell systems, when
compared to early standalone offerings, offer the following advantages:
•
•

Can be deployed by the operator or integrator as a coordinated, company-wide network with
central control and management
Support greater local intelligence, enabling a wider range of functionality and services at the
network edge, close to the users.


5


•
•

Support LTE or a migration to LTE for greater capacity and lower latency (higher QoS)
Promise better cost effectiveness as the market achieves scale

c. Moving core functionality to the network edge
A vital element of their ability to deliver all the requirements outlined above is their support for a high
level of intelligence at the edge of the network. In other words, the small cells should have local
processing and functionality, rather than being ‘dumb’ access points which have to communicate
constantly with the macro network and the operator’s central packet core. This is the thinking that
underpins and differentiates Quortus’s solution for the enterprise small cell market, the ECX Enterprise
Concentrator and ECX Enterprise Gateway. This duo implements localised core functionality on a platform
at the edge of the network, delivering all the core services to that company’s small cells.
The core services supported will vary according to the needs of individual enterprises and the particular
balance of voice, packet data and Wi-Fi in use. However, there are two key categories of function which
are traditionally performed by the central packet core, but which can be far more efficient and responsive
if they are offloaded to take place within the enterprise:
Network efficiency: As mobile voice and data traffic rises, there is an urgent need to handle it more
efficiently – analyzing each packet and prioritizing it according to importance, size or location; offloading
some traffic to Wi-Fi or the internet; caching frequently used large files, such as videos, close to the user;
handling call switching, ensuring QoS for voice.
Localised services: Small cells enable the network to know which users are in which location and to
deliver data and services accordingly. This can be used to improve enterprise efficiency and to support
customer-facing applications.
•DPI (deep packet
inspection)
•Network data

•Caching
•Offload
•Social

Network
intelligence

CEM
•New view of the
user
•Responsive

Content and
apps

Personalized
Services
•Augmented
reality
•Video
•Promotions

Figure 2 Key activities which can be moved to the edge of the network, to improve efficiency or support new
functionality

There are many advantages to offloading these categories of function to the edge:
For the enterprise:
The enterprise will have a much improved experience of mobile voice and data, comparable to that on
fixed lines. This will improve its productivity and will enhance its relationship with its MNO provider. It will
benefit from:


6


•
•
•
•

Improved voice and SMS coverage and quality, together with full mobile hand-off
Integration of mobile voice with enterprise systems such as PBX and IT applications
Voice and data capacity that is scalable according to usage changes, at predictable cost that
relates to increased usage
Support for location and context aware services which can improve employee or customer
satisfaction

For the MNO:
The MNO can improve its churn rates and even increase ARPU as its enterprise customers have higher
levels of satisfaction, and become more reliant on the operator for critical business functions. Specifically,
it benefits from:
•
•
•
•
•
•
•

Increased customer satisfaction with improved voice and data quality, leading to lower churn and
a mores strategic relationship
Reduced strain on macro network and backhaul because voice, data and signalling are offloaded
A flexible platform with which to deliver added value to the enterprise, such as the ability to
support location aware promotions.
Scalability at affordable cost as enterprise usage rises
Move security and policy management – such as local offloading based on APN (access point
name) - close to the user, to tailor the network more efficiently to individual or group needs
Reduce latency and congestion with local call handling and switching.
The operator may explore new business relationships with the enterprise, for instance consulting
on mobile applications. It may also be able to pursue new ways of engaging, which reduce its risk
but increase revenue. For instance, some deployments may see the MNO owning and managing
the small cell network, but the enterprise’s own integrators deploying it, thus giving the operator
revenues without the cost and risk of build-out.

This reflects the traditional distributed model of the internet far better than the centralized mobile
approach, and edge-based intelligence is supported by the implementation of a new breed of small cells,
which are optimized for local processing of voice and data, fully integrated with SIP/PBX functions, and
managed by a which performs many of the functions of the mobile core, either on the premises or in the
cloud.


7


4,000
3,500
3,000

,000 units

2,500
Small cells

2,000

Processing

1,500
1,000
500
0
2013

2014

2015

2016

2017

2018

Figure 3 Deployment of enterprise small cells to 2018, and the number which will feature localized processing and
intelligence (directly or via a controller).

Source: Rethink Research forecast June 2013
The attractiveness of this approach in addressing a wider range of enterprise requirements, while
complementing existing Wi-Fi and landline systems, is seen in the expected uptake of intelligent small
cells in the coming years. By 2018, out of a total of 3.4m small cells deployed by enterprise (cellular or
cellular/Wi-Fi), just over half will incorporate local intelligence and processing capability to support some
or all of the functions outlined above.


8


4. The Quortus solution
The Quortus Enterprise Controller solution taps into the need for edge-based processing and core
functionality. It allows the mobile core to follow the same pattern that is seen in access network
hardware – to be distributed away from the center and towards the edge. It implements the voice and
packet core as a lightweight software application which can be run on standard hardware such as an x86based server (it has even been demonstrated on a Raspberry Pi), or can be embedded on a router or on
the small cell itself. It can also be support a cloud-based platform owned by an MNO or other third party,
which can then offer hosted services for enterprise voice, data or other functions. This managed service
approach opens up additional efficiencies and revenue opportunities for MNOs, especially when targeting
SMBs.
Whether on-premises or in the cloud, the Enterprise Controller is run by the MNO or integrator and
supports a group of small cells which deliver localized voice, text and data services over the office LAN.
The software supports local intelligence and many mobile core functionalities, offloaded to the edge. It is
compatible with multiple air interfaces and retains secure links to the main voice and packet core where
required, but reduces the communications with the center,
and therefore the strain on backhaul and gateways. It is
PBX and Ubiquisys
aligned with emerging standards in this area to ensure that
it is future-proof and can integrate with systems that
Quortus and Ubiquisys, now part
evolve in future. As outlined in Chapter 3, Quortus has
of Cisco, have collaborated on
worked closely with the Small Cell Forum on its Release
implementing a complete mobile
Two program for enterprise small cells and supports its
PBX on a small cell, eliminating
ESCC (enterprise small cell concentrator) and ESCG
deskphones but retaining the
(enterprise small cell gateway) specifications as well as
functions of the PBX such as
emerging 3GPP definitions.
conference calling and call
routing. In the demonstration,
This reflects a broader operator interest in virtualising key
the Quortus EdgeCentrix
network functions on standard servers, often in the cloud,
application ran on Ubiquisys’s
rather than relying on dedicated hardware for each
Smart Cell – a companion to a
process. The packet core is expected to be the first
small base station, which
element to be fully virtualised by many operators, but that
provides Intel-based processing
remains some years away because of the complexity and
power close to the user.
risk of migrating the critical central core.
For the enterprise, however, these benefits can be
achieved now without affecting the operator’s central
core. The Quortus system supports the main core functions
which meet the enterprise needs as outlined in chapter 2,
such as local voice, data and mobility offload and PBX integration. They can handle session creation,
switching and hand-off; traffic compression and aggregation; and edge caching and presence information
for mobile apps. The small cells can be run as a complete and self-contained network in their own right,
but can also interoperate with other networks and with local SIP services.
A dedicated enterprise core also supports:
•
•
•
•
•

Aggregation for coverage scaling
Service convergence where the services are used
Better integration with non-cellular systems such as WLANs and PBX
Greater control by the enterprise IT department of its whole network including cellular
Separation of the IT and MNO domains at the point that suits the enterprise’s particular model

In addition, by keeping new services and innovations separate from the MNO’s precious packet core,
enterprises and operators are encouraged to try new and even disruptive approaches, whose impact and
risk is confined to the edge rather than affecting the whole network.

9


a. The key functionalities of the Quortus ECX solution
As outlined, to support the enterprise business case and requirements outlined in the previous sections,
the ECX Enterprise Concentrator and Gateway together support four key areas of functionality:
•
•
•
•

Iuh aggregation
Mobility offload
Voice and data offload
Local service interaction

All these are supported by leveraging standard VoIP protocols such as SIP, allowing the Enterprise
Controller to be integrated with on-premise or hosted IP-PBX voice servers so that smartphones can
appear as local extensions, and be fully integrated with enterprise networks and functions. IP data
sessions initiated by a mobile device can be placed directly on to the enterprise LAN, giving the user direct
IP access to the organisation’s Intranet. They are also in line with the Small Cell Forum’s Release Two
architecture, particularly the ESCC and ESCG elements. ESCC (enterprise small cell concentrator) performs
Iuh aggregation while ESCG (enterprise small cell gateway) is the basis for mobility offload.
Iuh aggregation:
This allows network coverage and capacity to be scaled up flexibly and simply, as enterprise needs grow.
Multiple local cells are aggregated and can behave as a single network, with unified management and
simplified link to the macro network and the enterprise IT systems. As traffic and functions increase,
additional cells can be added in a ‘fan-out’ pattern.
Mobility offload:
The signalling traffic from ‘chatty’ smartphone applications such as instant messaging, which continually
poll the base station, are almost as big a strain on the macro network as data, especially in an enterprise
environment where users may be continuously on the move, handing over multiple times as they walk
along a corridor, for instanceTherefore, there are the same motivations for operators to offload signalling
traffic as data packets, so that it does not all hit the main core, and they can reduce cost and outage risk
in their macro network.
The Enterprise Controller can reduce the burden of signalling on the ‘real’ core (femtocell gateway and
MSC/SGSN), and that also provides the enterprise with higher reliability and QoS, and lower outage risk. It
can also handle explosions in signalling in future as the numbers of calls, and small cells, rises. The
controller ensures continuity of voice and data calls when handed out to the macro network, but the bulk
of signalling will be between small cells in the enterprise network, and so this will be kept away from the
macro network, and will support faster, higher quality handovers.
Voice and data offload:
As noted previously, when voice is offloaded from the macro network it allows mobile devices to take
advantage of IP-PBX functions when in the enterprise, appearing as SIP extensions even while mobile
authentication is still taking place on the carrier’s macro network.
Standard devices can be used, with so software download required, and users may have a separate SIM
for the private network, which can be fully controlled using enterprise policies and rules. The controller,
whether local or hosted, handles functionality such as dialplan management, user identity, emergency call
handling (even if the macro network fails), macro hand-in/hand-out, and local P-CSCF anchoring for VoLTE
calls, when those are supported by the mobile carrier.
Data offload is even more important to reducing the burden on the macro network – and therefore
improving QoS for the enterprise – than voice and signalling. In the Quortus solution, the local or cloudbased controller supports the LIPA (Local IP Access) and Local Gateway concepts, which allow users to


10


access the enterprise network directly without recourse to the main core. Offload can be carried out by
individual access point, enabling services to be personalized and resources distributed according to need.
Local service interaction:
For many enterprises, the business case for small cells will rely on additional value being seen, on top of
improved coverage and capacity. Key to this will be integration of cellular connections and devices into
other enterprise functions, extending unified communications to include cellular, and thus enabling new
ways of working and new services. In particular, the integration of mobile devices into the IT ecosystem
will enable the company to tap into the third party applications base, and there is work being done to
create APIs that are specific to small cells, allowing developers to create apps which harness the cells’
location and context awareness. That location precision also allows for very granular analytics and
targeted services such as promotions to consumers.

b. Customer premises or cloud-hosted - where is the edge?
A key differentiator of the Quortus enterprise solution is that it can be based on a local controller in the
enterprise premises – on a server, a virtual machine or dedicated hardware – or it can be cloud-based.
The latter option offers some interesting opportunities for MNOs, or third party providers, to provide
hosted and SCaaS (small cell as a service) offerings. These are indicated to be particularly appealing to
small and medium businesses which do not have in-house IT and communications resources but have the
same pressures to scale up wireless networks, and improve functionality and services, as their larger
peers.
As Figure 4 and Figure 5 show, the local and cloud models support the same key functions, but with the
Quortus software differently located. In effect, in the cloud model, the edge of the network is a virtual or
logical one, between the MNO central core and the cloud-hosted local core – the latter delivering services
to the enterprise customers. In the hosted model, the Iuh small cells are backhauled through the security
gateway.

Voice
Packet
Data
MNO Core network

Network
edge

Quortus
ECX

Consumer / Enterprise
space

Figure 4 The physical edge of the network, where the edge is collocated with the radio but the MNO boundary remains
protected


11


The ‘cloud’
Voice

Packet
Data

Hosted
PBX

MNO Core network

Quortus
ECX

Hosted
PBX

Hosting SP

Consumer /
Enterprise space

Figure 5 The logical edge, where the enterprise concentrator functionality is deployed in the cloud as a hosted service.
Third party service providers can add value in this model and there is no impact on the physical edge. The MNO
boundary remains protected and this is compatible with legal intercept requirements


12


5. Conclusion: The business case summarised:
The small cell business case for enterprises is compelling, as outlined in Chapter 3 and the SCF’s Release
Two program documents. However, the case becomes even more attractive when an enterprise
controller is implemented. The Quortus Enterprise Controller has been designed to align with the
requirements of wireless businesses, as described in this paper and in SCF’s Release Two documents.
There are different benefits to be derived by the operator and the enterprise.
For the operator:
•
•
•
•
•
•
•

Reduce capex and opex costs of central core and backhaul with offload of significant volumes of
voice, data and mobility signalling to the edge
Reduce cost and risk of upgrading central core by enabling software-based upgrade for enterprise
customers only.
Can extend the usable life of the current core functionality and support a clear migration path to
LTE, giving the operator the flexibility to move to 4G at the right moment for the business.
More strategic role in enterprise communications, which may enable additional future revenues
and services
Improve customer satisfaction, reduce churn
Opportunity to provide hosted small cell services especially for SMBs
Support new engagement models eg where the MNO owns the managed service but the
enterprise’s own integrators supply and install the equipment, opening up an MNO revenue
stream with limited deployment cost and risk.

For the enterprise:
•
•
•
•
•
•

Access enterprise PBX services from mobile handsets without proprietary downloads, potentially
enabling costly landline phones to be eliminated
Greater control over mobile charges, usage and security, important in a BYOD environment to
reduce cost and risk
Improve user experience with mobile hand-off, better coverage and PBX functions, leading to
improved employee satisfaction and retention, and more efficient working and productivity
Supports new ways of working such as hotdesking
Improve data capacity and QoS with dedicated cellular bandwidth. Better data access improves
business processes and competitiveness
Support value added services which may drive loyalty and/or revenues from customers and
partners

This indicates the reasons why enterprises are increasingly looking to implement more advanced small
cell solutions, which will work with and enhance their existing Wi-Fi and IP systems. It also highlights why
operators are keen to move more functionality to the edge and offer enterprises a managed solution
which can greatly improve their ability to win corporate business.
The SCF Release Two architectures will help them in this process by encouraging the development of
interoperable solutions based on these specifications, and providing best practice. That, in turn, reduces
cost and risk for MNOs and their enterprise customers. By aligning its solution clearly with the SCF’s
platform, Quortus is future-proofing its offering even while it takes a pioneering role in the trend to
offload enterprise mobile traffic to the edge of the network where it can support the highest quality and
business value.


13


About Quortus:
Quortus is changing the nature of mobile networks by taking core network functionality and distilling into
cost-effective software applications that can be installed anywhere including on small cells, off the shelf
commodity hardware and in the cloud. Adaptable and deployable in a variety of settings, Quortus'
solutions allow voice and data requests to be handled locally where possible saving on backhaul costs.
They can be used in conjunction with small cells such as in enterprises to create all-mobile PBXs in remote
locations to significantly reduce the cost of deploying cellular services. Operators can also run Quortus'
Soft Core Network technology on third party data centres to enable a hosted core network model which
slashes the CAPEX of building out a core network. The company is headquartered in the UK.
Quortus Limited
3000 Cathedral Hill
Guildford GU2 7YB
United Kingdom
Tel: +44 (0)1483 243536
Email: enquiries@quortus.com


14


About Rethink Technology Research:
Rethink Technology Research is a research firm and consultancy specializing in business models and
technologies for mobile and wireless service providers. It carries out extensive surveys about the
deployment plans, and business strategies, of mobile, fixed/mobile and Wi-Fi operators. It also works
closely with the vendor community, regulators, standards bodies and investment companies to monitor
the upcoming trends in wireless networks.
Its joint venture, Maravedis-Rethink, offers the leading research services focused specifically on mobile
operators’ infrastructure, from RAN to core to backhaul. These include MOSA (Mobile Operator Strategy
Analysis). The company publishes news and analysis of mobile broadband issues on a weekly basis in its
Wireless Watch product, as well as regular research notes to clients and financial analysts.
Rethink also engages regularly as a consultant with operators, suppliers, regulators and the financial
community, usually advising on next generation wireless business models, and so has a deep insight into
the real issues in the market, as opposed to the hype.
As well as collecting knowledge and intelligence through constant contact with the vendor, operator and
financial communities, Rethink has a unique database of operators and service providers worldwide and
collects data from them on a quarterly basis.
Caroline Gabriel
Research Director
Rethink Technology Research Ltd
caroline@rethinkresearch.biz
Tel: +44 (0)207 450 1230
www.rethinkresearch.biz


15

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