The Best That LTE Can Be


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Presented at FemtoZone at CTIA 2011. Entitled, "The Best That LTE Can Be, Why LTE Needs Femtocells".

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The Best That LTE Can Be

  1. 1. White paper from www.femtoforum.orgTodd MerschFemto Forum - Promotional CouncilDirector, Continuous Computing © Femto Forum Ltd. 2010 © Femto Forum Ltd. 2011 1
  2. 2. Overview• About Femto Forum• Motivations for femtocells• Industry support for LTE femtocells• The case for LTE femtocells • Business Case • Performance • Services • Deployment Approaches• Conclusions © Femto Forum Ltd. 2011 2
  3. 3. The Femto Forum Aims• Promoting & enabling femtocells Ecosystem Development• Not-for-profit, founded in 2007 Market Education• Independent, Inclusive, International Driving open standards End to end system providers Other Network enablers Elements Products Components and So ware 60 operators covering 1.7 billion mobile  74 providers of femtocell technology subscribers – 33% of total © Femto Forum Ltd. 2011 3
  4. 4. Why Femtocells? • Dramatic growth in mobile broadband • Consumers increasingly sensitive to coverage for both voice and data– especially at home and in the office • Operators need to meet this demand – but quickly and at reduced cost- per-bitExplosion of internet Exponential growth of Traffic increasingly connected devices mobile data traffic indoors On the move Out of home / office >80% indoors Office Source: Signals Research Group Home Source: Informa © Femto Forum Ltd. 2011 4
  5. 5. Shannon vs. Moore The Shannon – Moore Divide: Moore Shannon channel capacity • Reaching limits with LTE Divide Moore‟s Law: still doubling • Data-hungry devices Shannon • MIMO LTE LTE-Advanced • Carrier aggregation • Spectrum?Exponential Problem NEEDS Exponential Solution
  6. 6. What are femtocells?• Low-power access points… …using mature mobile technology …in licensed spectrum …generating coverage and capacity …over internet-grade backhaul …at low prices …with full operator management …self-organising, self-managing Generic Femto Network Architecture Standards in place for:• Applications include: • UMTS • Residential • LTE • Enterprise • CDMA • Hot spot • WiMAX • Metro © Femto Forum Ltd. 2011 6
  7. 7. Cell Size Shrinkage! MacrocellCapacity Microcell / Picocell Greater Femto Femtocell Coverage
  8. 8. Macro Topology Hierarchical Cell Structure Courtesy AirHop Communications Coverage Era Capacity Era1990 2010 “The need for 4G picocells and femtocells to enhance coverage and boost capacity in hotspots is one of the important principles for Verizons LTE Network” -- Verizon Wireless CTO
  9. 9. LTE Femtocells: Meeting NGMN Recommendations Cost-optimised indoor node design - “The NGMN RAN shall be designed in a way that it allows a large-scale deployment of Virtually a cost-optimised plug-and-play femtocell NGMN-only indoor radio equipment at a price level of definition commercial quality WLAN components. ” Self-organising networks: Self- Femtocells are the planning…, Self- first commercial Configuration…, Self- optimisation and self- instance of a true tuning…, Self-testing SON and self-healing…Femto Forum is working with NGMN Alliance to create the conditions to complywith these recommendations © Femto Forum Ltd. 2011 9
  10. 10. LTE Femtocell Standards• In 3GPP terminology, LTE femtocell = Home eNode-B• Femtocells have been included from the beginning of LTE standards, supported by close partnership between 3GPP and Femto Forum• The first LTE standards release (3GPP Release 8, completed April 2009) included support in user equipment for femtocell-specific features such as Closed User Groups• 3GPP Release 9 (completed April 2010) added full definition of the RF and OAM aspects, thereby providing full end-to- end support for LTE femtocells © Femto Forum Ltd. 2011 10
  11. 11. Option 1: No HeNB Architecture Gateway• Femto/ HeNB fits well with flat Enhanced Packet Core architecture• HeNB Gateway is optional and transparent, delivering concentration Option 2: HeNB and scalability without sacrificing Gateway aggregates all architectural simplicity traffic• Reusing standardised open management approach• Femtocells form an essential element in the heterogeneous network „toolkit‟ for LTE operators (no more Option 3: HeNB VPLMN HPLMN Gateway aggregates one-size-fits-all approach) CSG HSS control traffic only ListSrv C1(OMA DM /OTA) S6a S1-MME MME S1-MME HeNB U GW S11 HeNB E LTE -Uu S-GW S1-U © Femto Forum Ltd. 2011 11
  12. 12. The Case for LTE Femtocells Performance Business Case LTE Femtocells Deployment Services Approaches © Femto Forum Ltd. 2011 12
  13. 13. Business Case Business Case Revenue impact Time-to-market Cost savings• New revenue • Rapid deployment • Optimised macro streams from value- of NGN roll-out added services • Operational savings – • Rapid provisioning• Location-specific especially tariffs without of new services power, backhaul, site leakage rental• Family contracts • Churn reduction – contract extension Substantial value to be created, challenging preconceptions of cellular economics © Femto Forum Ltd. 2011 13
  14. 14. Business Case Business Case• New business case analysis completed by Signals Research Group, accounting for the continued and forecasted growth in mobile broadband• Includes two major studies of the business case for LTE and LTE/HSPA femtocells © Femto Forum Ltd. 2011 14
  15. 15. Business Case Dual Mode Femtocell Business Case• Add dual mode HSPA/LTE femtocells to existing network: • Macro-offload savings easily exceed the femtocell cost • Customer lifetime value increases by 2-10 times in representative scenarios • Operator with 10 million subscribers deploying to 10% of their base gains a return on investment of more than 10x +232% Increase in Household ~ € 500 million network cost saving Lifetime Value © Femto Forum Ltd. 2011 15
  16. 16. Business Case New LTE network business case• Modest delay to small proportion of macrocell build: 4-10% of sites, by few years depending on scenario• Opex savings sufficient to fully fund subsidized offer: free femtocells plus superior indoor user experience © Femto Forum Ltd. 2011 16
  17. 17. Performance Capacity – Reaching Limits?• Next-generation system performance is • Cooper‟s Law suggests that increasing close to the Shannon bound the number of cells has always been the main means of adding capacity Approaching the limit Most gain from frequency re-use• Need more cells and tighter interference control to continue to increase capacity © Femto Forum Ltd. 2011 17
  18. 18. Performance Higher Rates from Lower Interference• High SNR and low contention deliver near-peak rate performance throughout coverage area 50 Throughput 45 (Mbps) Typical femtocell geometry 40 factor in this range 35 LTE Throughput (DL, 4x4, 10 MHz) 30 Substantial 25 increase in 20 throughput 15 Typical macrocell geometry 10 factor in this 5 range, depending on loading 0 -15 -10 -5 0 5 10 15 20 Signal-to-noise plus interference ratio (SINR) © Femto Forum Ltd. 2011 18
  19. 19. PerformanceLTE Femtocell Performance • Detailed study of the most challenging scenarios for LTE femtocell deployment: closed user groups, co-channel with macrocell etc. • Addition of femtocells to the network allows femtocell users to consistently receive much closer to the headline LTE/WiMAX data rates than those connected to macrocells. • Femtocells can achieve this even when using the same channel as the macro network when suitable mitigation techniques are adopted. • Addresses a significant spectrum challenge for LTE deployment See © Femto Forum Ltd. 2011 19
  20. 20. Performance LTE in femtocell environments• Propagation environment: • Home provides site shielding from macrocell • Rich angular multipath and high SNR, maximising gains available from MIMO • Delivers high geometry factor (own : other cell interference)• Allows LTE to work at its highest modulation rates and spectral efficiency, delivering great services to a large number of high-usage customers © Femto Forum Ltd. 2011 20
  21. 21. Performance Backhaul Availability & Bit Rates Growing Rapidly• In all regions, progressive evolution to higher rates is predicted, with major growth in the period for LTE introduction• This will differentially favour early adopters of LTE• Air interface rates exceeding backhaul rates are important to deliver responsive user experience (cf demand for 11n Wi-Fi)• Increasing proportions of traffic expected on home LAN, not involving backhaul © Femto Forum Ltd. 2011 21
  22. 22. ServicesFemto Enabling Customer Propositions With full operator management, in existing spectrum, at reduced cost-per-bit © Femto Forum Ltd. 2011 22
  23. 23. Services Enabling Next-Generation Services• Femtocell acts as a portal to in-home services and automation• High-bandwidth connected-home services• Femtocells deliver presence, context & location• A powerful operator opportunity for mobile presence in the home © Femto Forum Ltd. 2011 23
  24. 24. Deployment Femtocells beyond the home• Not only for the home!• Femtocell economies of scale can deliver cost-effective deployments in offices and in high-traffic or low coverage locations• Femtos in the enterprise and metrozone• Scope for cost-effective access to rural and developing markets via appropriate backhaul solutions © Femto Forum Ltd. 2011 24
  25. 25. Deployment Self-Organizing Networks• Self-organizing network capability is crucial to meet the economics of mobile broadband demand growth with realistic revenue growth• Femtocells deliver SON capabilities with 3G today: • Open interfaces • Standardised management protocol • No need for site-specific radio planning or optimisation – but always within operator-set limits and with full control in extreme situations• Enables delivery of many more cells in the network without increasing operational overhead © Femto Forum Ltd. 2011 25
  26. 26. Deployment New Deployment Approaches Femto-centric NGN femto quick- Match costs toNGN Introduction start package revenues• Build femto first • Provide NGN • Avoid „build it user device and and they will femto to early come‟ adopters Revenue Costs + Time © Femto Forum Ltd. 2011 26
  27. 27. Femto Forum LTE Special Interest Group• Chaired by Vodafone• Mission: To ensure that the LTE femtocell requirements, specifications, product recommendations, and guidelines are delivered to allow operators to offer compelling new LTE services• Some goals in 2011: • Provide clarity on choice of architectures according to operating environment • LTE femtocell service requirements and concepts • Use of spectrum bands for LTE femtocells • Assessment of LTE multiradio combinations • High level LTE femtocell product specification • LTE femtocell deployment guidelines 27
  28. 28. Conclusions• There is a compelling case for LTE femtocells• Femtocells have a key role in LTE services: • Speed-up launch • Enabling services to encourage adoption • Delivering performance• The key launch pad for new services, building demand beyond the home and supporting business case for wider roll-out• Enabling factors being addressed via co-operation in standards bodies and the Femto Forum• Femtocells used in harmony with macrocell networks represent the best that LTE mobile networks can be! © Femto Forum Ltd. 2011 28