3. Page 3
Changing of Service & Behavior Leads to Traffic Pulse
From voice era to data era: 4000 times traffic growth per unit
Benchmark throughput
[Kbps]
128
256
512 512 512
2000
300 384
4000
1000
Music
VOIP
M-blog
SNS
WWW
Gaming
240Pvideo
480Pvideo
360Pvideo
Cloud/FTP
Bad Good
Excellent
720p
2.4Mbps
1080p
5.4Mbps
2160p
21.6Mbps
2160p
10.3Mbps
(H.265)
12kbps->2.4M bps <5% online ->nearly 100% online
200X 20X
0
15
30
45
0hr
1hr
2hr
3hr
4hr
5hr
6hr
7hr
8hr
9hr
10hr
11hr
12hr
13hr
14hr
15hr
16hr
17hr
18hr
19hr
20hr
21hr
22hr
23hr
Airport
Hospital
Hotel
Macro
Mall
Subway
Office
Other
School
Active User number
Voice traffic ->Video traffic :
200X
Synchronous voice ->Asynchronous data:
20X
4. Page 4
Micro Can Improve User Experience Wherever It is Needed
On Demand EnterpriseDigitization
Macro sites only is not enough for coverage
in LTE era
Micro is the key to hotspot and week coverage
spot in urban area
Macro Capacity
Traffic Demand
Capacity
/Traffic
Micro is needed for quick and cost effective deployment to guarantee user experience
Hotspot
Weak
coverage spot
CoverageMassive weak coverage points(red) after 10,000+ LTE
macro sites deployed in Shenzhen City
Shenzhen, China
5. Page 5
Indoor Coverage Digitization: Capture Traffic Pulse to Guarantee Experience
Indoor coverage solution need to be redefined
On Demand EnterpriseDigitization
Capacity
of DAS
n Capacity of traditional analog coverage
solution is fixed
n Capacity demand at peak time is suppressed
Capacity demand
Peak time Peak time
Indoor
12400 stadium
1665* airport
2250 train station
49400 shopping mall
…… hospital/campus..
Hot zone with high traffic need to be on load
* Data from Google and Wikipedia
DAS cannot capture the traffic pulse
6. Page 6
Enterprise Mobilization: Application Move from PC to Smart Phone
BYOD Drives Enterprise Mobile Service Market Growing Quickly
With the development of smartphone, BYOD
is becoming the main work style
More and more employees Prefer to BYOD
for work
On Demand EnterpriseDigitization
Smartphone
82% 82%
80%
74%
50%
55%
60%
65%
70%
75%
80%
85%
90%
choose own smartphone for work choose own tablet for work
adoption among director-level and above employees
adoption among below director-level employees
8. Page 8
Increase ROI by Increasing Revenue and Decreasing TCO
Revenue - TCO
TCO
ROI =
9. Page 9
Outdoor On Demand Network with Small Cell
Revenue - TCO
TCO
ROI =
Revenue = Traffic + New Service
TCO = Site + Backhaul + BOX+ Others
On Demand EnterpriseDigitization
21%
15%
5%35%
15%
9%
TCO Analysis of Micro
BTS in Europe
Site BOX NRO Backhaul Maintenance Others
10. Page 10
“Site Crowd Sourcing” Reducing Site Cost Enables Scaled Deployment
On Demand EnterpriseDigitization
Higher Coverage & Capacity efficiency
• Multi-RAT & multi-band box for site &
backhaul saving
• Improving ROI with higher power
transmission for larger coverage
• Powerful baseband for higher capacity
Hot-Zone&NotSpotCoverage
Hot-SpotCoverage
Higher Capacity
• Higher Integration & heat dissipation for
deployment in confined space
• Lower power transmission for limited coverage
• Optimizing for wired backhaul
Lamp pole,Power pole… Bus Stop,AD Box, Phone Booths,MFC …
11. Page 11
l Development of small cell fast, where P2P fiber/PON is rich
Relay is the appropriate wireless backhaul in early stage
l No dedicated spectrum for backhaul
l Low installation cost
l Low volume and power consumption
Wireless Backhaul Reduce Transmission Cost Accelerates Deployment
Wired transmission on-site Wireless transmission on-site
smallcell
smallcell
smallcell
Relay
Relay
Relay
F1
F1
F1
F1/F2
F1/F2
F1/F2
On Demand EnterpriseDigitization
Economical wireless backhaul: Relay
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Europe China Japan &
Korea
North
America
APAC
Proportion of Fiber On-site (Macro)
Source: Huawei Survey
12. Page 12
Revenue - TCO
TCO
ROI =
Revenue = Traffic + New Service
TCO = Site + Backhaul + BOX+ Others
On Demand EnterpriseDigitization
Digitization Releases Indoor Traffic Demand
13. Page 13
On Demand EnterpriseDigitization
LampSite Captures Traffic in Indoor Hot Zone: Flexible Cell Split for
Traffic Pulse and Smooth Evolution
Capacity evolution management
Cell Split
Cell 4
Cell 3
Cell 2
Cell 1
Cell 5
Cell 6
BBU
Cell 1
Cell 2
Cell 3
BBU
ü Real-time tide traffic monitoring
ü Dynamic capacity adjustment
ü Dynamic share of baseband resource
ü Reduce initial investment
PCell1
PCell3PCell2
PCell 4
Dinning Area
Office Area
PCell1
PCell3PCell2
PCell 4
Dinning Area
Office Area
Working
Hours
Dinner
Hours
Automatic Tide-effect Traffic Management
14. Page 14
On Demand EnterpriseDigitization
Pico BTS Captures Traffic in Indoor Hot Spot: Fast Fill “Capacity Not spot”
Left by High Band LTE
12kbps XMbps
Low band coverage in voice time
High band coverage in MBB time
Gap 1: Higher Traffic
Requirement at Cell
Edge
Gap 2: Smaller
coverage with higher
frequency band
Poor deep indoor coverage with Macro due
to high band LTE
“Capacity Not spot” due to the gaps between
requirement and coverage
15. Page 15
New Service Helps Carrier Entry Enterprise Market
Revenue - TCO
TCO
ROI =
Revenue = Traffic + New Service
TCO = Site + Backhaul + BOX+ Others
On Demand EnterpriseDigitization
16. Page 16
Enterprise Service based on Digitized Cellular Network
Service
Anchor
3rd APP Server
API
Wi-Fi AP Pico LampSiteWi-Fi AP Fixed Line
Local voice &
data service
BYOD expansion from fixed IT System
to cellular network
Enterprise service moving to cellular
network for low cost and new value
On Demand EnterpriseDigitization
17. Page 17
A Win-Win Business Model Ripening Industry Chain
Operator Enterprise Subscriber
App
Supplier
Telecom
Vendor
APP
Wireless
Solution
Host & Sell system Sell the service or product
Pay for Value-added service
Equipment
fees
App fees
Pay for service or product
On Demand EnterpriseDigitization
New Service Site Cost
19. Page 19
Case1: Pole Acquisition for Scaled Micro Deployment
“Mobile
operator
T
uses
small
cell
to
break
the
frequency
resource
limita8on
…
60%
Micro
/
macro
in
2013
Number
of
Micro
will
Surpass
Macro
in
2014
2012 2013 2014 2015 2016 2017
Volume
Macro
Micro
l
10,000+
pole
acquisiBon
for
Micro
deployment
l
U/L,
Co-‐carrier
deployment
92.22
69.38
53.18
before after
macro only Hetnet macro
Hetnet micro
(Gbit)
Traffic
on
load
33%
• Onload
33%
traffic
• Offload
43%
for
macro
• Reduce
congesBon
risk
Co-Channel / continuously deployment
Page 19
On Demand EnterpriseDigitization
33%
21. Page 21
Case 3:Shanghai Service Live Demo --Navigation
Map View Video View
RHUB
BBU
pRRU pRRU pRRU
RTMap Application
User Cell Phone
Page 21
On Demand EnterpriseDigitization