Transaction processing is an increasingly big headache for Mobile Operators because it reduces network capacity, erodes revenue potential and adversely affects overall operational profitability - So what is transaction processing and what can be done to minimize its’ impact?

As mobile networks evolve to deliver broadband IP services, the associated technology is becoming ever more complex, resulting in a dramatic increase in the communication that is required between the different elements making up the network. This communication takes the form of signalling messages that are passed between the different elements in the network to support voice, IP and other mobile services.

Although many of the services supported by this messaging are revenue generating, others do not generate any revenue at all and in fact incur a tax on the network that reduces revenue potential. To successfully deliver services to customers all of the messages, whether revenue generating or not must be processed by the different elements comprising the mobile network.

The different services being delivered incur different transactions on the associated central processors that have a varying impact on both element and overall system capacity. The non-revenue generating services with the biggest impact on transaction processing are those associated with subscriber mobility and so it is vitally important to keep these to a minimum.

Subscriber mobility incurs far greater signalling in 3G networks than its 2 or 2.5G predecessors due to the need to support hard, soft and softer hand-off. As a result the capacity tax on the core network elements and the network as a whole increases dramatically. This tax becomes considerably worse in networks that combine 2G and 3G because of the additional mobility-related signalling associated with the hand-off between technologies or I-RAT signalling.

In hybrid 2.5/3G networks this signalling can seriously reduce the ability of key system elements  to process revenue earning services, including the erosion of switch capacity by as much as 50%.

To maximize revenues, minimize network investment and increase ARPU, Mobile Operators must therefore move swiftly to address this issue. They must identify solutions for minimizing mobility related transaction processing while concurrently maximizing end-user performance. Helping them to increase network capacity, boost profits and gain a significant edge over the competition.