GREEN GROWTH AND
NETWORK QUALITY IN A
HIGH-GROWTH MARKET
           Martin bäckström,
   Vice president Technology,
   Eri...
Customer demands are changing


                     Mobile Voice User
                          10 kbps
                 ...
Network modernization drivers

› Consumer demand boosting
  mobile data traffic


› Increased quality demand


› Cost effi...
Modernization meets demand

Many operators’ equipment older than 2004:


                     › Not possible to upgrade to...
5 million base stations installed
Radio Base Stations (3GPP)
       (thousands)
    5 000


                              ...
Modernization cost savings
   1
       RBS 6000 reduction
       in cabinets (3 to 1)                           ~30%
     ...
e1



     Improved quality drives top-line
                                                                        Speech...
Slide 7

e1        Remove % signs.
          ekariha; 2010-05-07
Complete modernization approach


                                     Project Management




                     Plannin...
Vodafone essar, india
 Customer Challenges                                 "Swapping a commercially live network with
 › U...
TCO2 Approach to
Energy efficiency
Challenge: Realize Telecom CO2
Potential and Manage Energy cost
               GLOBAL CO2 CHALLENGE                       ...
CARBON INTENSITY


                                   Tonnes CO2e
       CARBON        Revenue
                           ...
Drivers for telecom SECTOR




                                                              Brand image
     Energy Cost
...
TCO2




      TCOTCO2 CO2
          CO

© Ericsson AB 2010   14   2010-02-16
TCO and CO2
› TCO2 is an approach to optimize CO2 and cost at the same
  time using TCO techniques



            CO2 modu...
Power in – traffic out




     less energy, more traffic        optimize kWh/sub

© Ericsson AB 2010               16    ...
Energy efficient business
 solution: The Complete picture
                                  Network energy consumption
Ene...
TELSTRA’S CARBON CHALLENGE
TELSTRA IS CHALLENGED TO REDUCE ITS CARBON INTENSITY IN A
LARGE, RAPIDLY EXPANDING NETWORK.

  ...
Telstra Potential REDUCTION IN
CARBON EMISSIONS BY 2014

                     Radio Access        Core
                   ...
Conclusion

› Consumer demand forces operators to
  continuously evolve their networks

› Network modernization enables be...
© Ericsson AB 2010   21   2010-02-16
References

› China Unicom 3G Roll-Out 2009
      – World’s largest green-field network deployment


› AT&T Broadband Acce...
3G NETWORK Upgrade
China Unicom, china
Customer Challenges
› Tight deadline for fast time-to-market
› Fierce competition
›...
Continent-wide HSPA Upgrade
Telstra, Australia

Customer Challenges                                 ”This project allows u...
Network Modernization
O2, Ireland

Customer Challenges                                ”A dedicated team, fully committed t...
Green growth and network quality in a high-growth market - Martin Backstrom - Ericsson Business Innovation Forum 2010 - Sh...
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Green growth and network quality in a high-growth market - Martin Backstrom - Ericsson Business Innovation Forum 2010 - Shanghai

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Green growth and network quality in a high-growth market - Martin Backstrom - Ericsson Business Innovation Forum 2010 - Shanghai

  1. 1. GREEN GROWTH AND NETWORK QUALITY IN A HIGH-GROWTH MARKET Martin bäckström, Vice president Technology, Ericsson APAC Innovation§
  2. 2. Customer demands are changing Mobile Voice User 10 kbps 10-50 MB/month 1 Smartphone User 100-1,000 kbps 100-500 MB/month 10 Mobile Broadband User >1 Mbps 1-5 GB/month 100 © Ericsson AB 2010 2 2010-02-16
  3. 3. Network modernization drivers › Consumer demand boosting mobile data traffic › Increased quality demand › Cost efficiency › Energy efficiency © Ericsson AB 2010 3 2010-02-16
  4. 4. Modernization meets demand Many operators’ equipment older than 2004: › Not possible to upgrade to EDGE, HSPA or LTE › Poor energy efficiency € € € € € › Higher costs for operation and maintenance € €€ € © Ericsson AB 2010 4 2010-02-16
  5. 5. 5 million base stations installed Radio Base Stations (3GPP) (thousands) 5 000 3G RBS 4 000 3 000 1.5 million would benefit from being 2 000 modernized 2G RBS Ericsson RBS represent only 25% of installed base 1 000 in need of modernization 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: Ericsson All vendors © Ericsson AB 2010 5 2010-02-16
  6. 6. Modernization cost savings 1 RBS 6000 reduction in cabinets (3 to 1) ~30% 2 More 3 6 100 efficient HW Less staff, 5 site visits and Investment Total 9 O&M 4 (HW/SW + roll-out Investment Fewer units depreciated 8 years) 8 to support 10 70 9 2 72 Legacy cost Site rental Power Operation & Fewer units & New cost Investment Maintenance less spares level (HW + roll-out) © Ericsson AB 2010 6 2010-02-16
  7. 7. e1 Improved quality drives top-line Speech Quality Index 80 – 100 % Good 60 – 80 % Poor 0 – 60 % Bad >20% longer average calls in this example Before Modernization After Modernization Bad Poor Good Traffic Speech Quality Speech Quality © Ericsson AB 2010 7 2010-02-16
  8. 8. Slide 7 e1 Remove % signs. ekariha; 2010-05-07
  9. 9. Complete modernization approach Project Management Planning & Operations Consulting Build Integration Optimization Design & Support Turnkey Network Rollout © Ericsson AB 2010 8 2010-02-16
  10. 10. Vodafone essar, india Customer Challenges "Swapping a commercially live network with › Unequalled growth of new subscribers near zero service deterioration is a very › Technological limitations of installed base demanding task. I am pleased that Ericsson managed to undertake and complete such a › Deteriorating performance of old network challenging project in record time." Ericsson Solution Naresh Gupta, › Replacement of 10,500 GSM sites at Technical Director at Vodafone Essar peak-rate of 1 site per minute! › Delivery of 16,000 RBS and 250 BSCs › 13 months (2 months ahead of schedule) Customer Benefits › Improved network performance › Near zero interruption in network services › Improved cost efficiency and sustainability The worlds largest replacement of a live network – performed at record pace! © Ericsson AB 2010 9 2010-02-16
  11. 11. TCO2 Approach to Energy efficiency
  12. 12. Challenge: Realize Telecom CO2 Potential and Manage Energy cost GLOBAL CO2 CHALLENGE COMMITTED CO2 REDUCTION Global CO2 ICT Industry Emissions footprint, 2% BT 80% by 2018 Vodafone 50% by 20201 20% by 2020 Orange 15% by 2020 Telefonica 1800 1850 1900 1950 2000 2050 Note 1. excluding Turkey and India What we have › ICT have limited CO2 footprint itself but is a critical enabler to others observed in › Reaching CO2 targets may demand use of expensive green energy the market and taxations have potentially very high cost impact Source: ABI Research, Ericsson © Ericsson AB 2010 11 2010-02-16
  13. 13. CARBON INTENSITY Tonnes CO2e CARBON Revenue $M Revenue INTENSITY A MEASURE OF CO2E Tonnes CO2e EMISSIONS Traffic MB RELATIVE TO BUSINESS OUTPUTS Kg CO2e Subscribers Subscriber © Ericsson AB 2010 12 2010-02-16
  14. 14. Drivers for telecom SECTOR Brand image Energy Cost Government Directives Power disturbances Off-grid sites © Ericsson AB 2010 13 2010-02-16
  15. 15. TCO2 TCOTCO2 CO2 CO © Ericsson AB 2010 14 2010-02-16
  16. 16. TCO and CO2 › TCO2 is an approach to optimize CO2 and cost at the same time using TCO techniques CO2 module CO2 TCO model CO2 TCO TCO NW design alt 1 NW design alt 2 © Ericsson AB 2010 15 2010-02-16
  17. 17. Power in – traffic out less energy, more traffic optimize kWh/sub © Ericsson AB 2010 16 2010-02-16
  18. 18. Energy efficient business solution: The Complete picture Network energy consumption Energy efficient Network Design Radio (coverage & Modernisation Capacity) energy Saving Energy Control Features identify and re-deploy redundant equipment Optimized Power Alternative Supply Energy Sources Energy Efficient Cooling concepts Site Design © Ericsson AB 2010 17 2010-02-16
  19. 19. TELSTRA’S CARBON CHALLENGE TELSTRA IS CHALLENGED TO REDUCE ITS CARBON INTENSITY IN A LARGE, RAPIDLY EXPANDING NETWORK. “Telstra is committed to assisting Australia in reducing its carbon emissions by aspiring to reducing its own carbon intensity by at least 10% and up to 15% by 2015” 3G Data Driving Traffic Growth 6th largest land mass Australia 9th lowest population density1 Annual MB 06/07 07/08 08/09 09/10 10/11 11/12 FINANCIAL YEAR Source: Telstra › >100% mobile penetration › Driven by broadband-enabled PCs › Single national network: and content > 2.1 million km2 > 99% population › Data traffic doubling every 8 month © Ericsson AB 2010 18 2010-02-16
  20. 20. Telstra Potential REDUCTION IN CARBON EMISSIONS BY 2014 Radio Access Core Network Network -11% -22% -30% -31% -56% © Ericsson AB 2010 19 2010-02-16
  21. 21. Conclusion › Consumer demand forces operators to continuously evolve their networks › Network modernization enables better quality, increased revenues and reduced cost › Combine TCO and CO2 › Ericsson offering: Efficient Energy Business Solution › Ericsson in a prime position to address the market © Ericsson AB 2010 20 2010-02-16
  22. 22. © Ericsson AB 2010 21 2010-02-16
  23. 23. References › China Unicom 3G Roll-Out 2009 – World’s largest green-field network deployment › AT&T Broadband Access 2009 – Full systems solution for fixed broadband access › Telstra 3GSM National Network 2007 – Largest geographic WCDMA network deployment › Metro PCS / USA 2009 – Mobile Broadband (LTE) deployment › Eco-smart for TIM in Italy 2009 – Solar-powered sites – up to 100% of energy needs © Ericsson AB 2010 23 2010-02-16
  24. 24. 3G NETWORK Upgrade China Unicom, china Customer Challenges › Tight deadline for fast time-to-market › Fierce competition › Large geographical area (15 provinces) Ericsson Solution › High speed 3G coverage to tens of millions of subscribers › 31,000 RBS’s in 7 months › 200 RNC’s in 3 months Customer Benefits › Commercial launch on time Oct.1 › Enabling 3G high-speed communications › Nationwide commercial launch of 3G Massive turnkey network rollout at record pace © Ericsson AB 2010 24 2010-02-16
  25. 25. Continent-wide HSPA Upgrade Telstra, Australia Customer Challenges ”This project allows us to take our services › Broadband connectivity in rural areas a step further and provide a comparable › Vast geography of Australia level of service to all of our customers.” › Low subscriber density in those areas Mike Wright Ericsson Solution Executive Director, Telstra › Countrywide HSPA network deployment › Ericsson’s Mobile Broadband Router as alternative to traditional copper lines › Coverage for 99% of population Customer Benefits › Providing wireless broadband to areas where it previously was impossible › Fast time to market › Cost efficient solution enabling a rural subscriber offering equivalent to the city Groundbreaking 3G rollout across the whole continent of Australia © Ericsson AB 2010 25 2010-02-16
  26. 26. Network Modernization O2, Ireland Customer Challenges ”A dedicated team, fully committed to the › Strong customer demand for broadband project and led by a team of specialists › Interoperability quality issues meant that services were maintained › Gaining overall leadership in the market throughout.” Karim Benabdallah, Ericsson Solution Advisor to CTO and CEO office, O2 Ireland › Full Service Broadband solution (2G & 3G) › Swap of 2,500 radio base stations › Accelerated 3G network deployment Customer Benefits › Improved network quality › IP migrated future-proof network › Improved competitive position Live network swap replacing two existing vendors with Ericsson network © Ericsson AB 2010 26 2010-02-16
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