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The challenge of mobile broadband $ COST Revenue Traffic
With boosting data traffic there is a need for more frequent network updates than before Network cost LTE HSPA+ HSPA Basic 3G = Resulting network cost Traffic load4. april 2012
Limited spectrum drives cost! Example: Two operators with very different spectrum size •Country 1: 8,8MHz band ->44 channels – =>132 Erlang per base station – => 40 base stations needed to handle Area= 50km2 total traffic of 5190 Erlang Population= 1 M • Country 2: 4,4 MHz band -> 22 Subscribers= 346k 15 mErl/sub (*) channels Tot. traffic= 5190 Erl – =>29 Erlang per base station – => 179 base stations needed to handle total traffic of 5190 Erlang => Having only half of the spectrum can mean 4,5 times the cost.(*) Meaning that the average customer calls for 1,5% of the most busy hour of the day For illustration purpose only – the conclusions and calculations are simplified 4. april 2012
Getting more spectrum essential formeeting future service demand Frequency spectrum for mobile communication Digital Dividend 3G (UMTS2100) CDMA Mobile broadband GSM900 GSM1800 extension band 500 MHz 1000 MHz 1500 MHz 2000 MHz 2500 MHz 3000 MHz 4. april 2012
3G in new frequency bands - refarming (WCDMA = UMTS/HSPA = 3G) (HSPA) In-Building coverage area for suburban terrain4. april 2012 (Source: Nokia Siemens Networks & Elisa)
Access to low frequency spectrum: -High impact on mobile broadband• Profitable coverage even outside the urban areas• Potential for saving 50-70% of site costs
Digital Dividend band: A desire and a curse: Too little of something good can be bad! 800 MHz 2600 MHz 11% 800 MHz:Very attractive for coverage, but how toavoid traffic congestion if 89% of allusers only have coverage from the 800MHz system?=> A fair amount of low-frequencyspectrum per operator is a prerequisite.
Network capacity is hard to predict Total Capacity 10 Mbit/s 7.5 Mbit/s 5 Mbit/s 2.5 Mbit/s 10 Mbit/s 1 Mbit/s 0.5 Mbit/s 5 Mbit/s 0.2 Mbit/s 2 Mbit/s0.05Mbit/s0.5 Mbit/s4. april 2012
Growing need for indoor coverage systems• Urban building walls block 99% of the outdoor signal• Safe to re-use the same carriers indoors• Buildings with heavy data traffic: Use indoor antenna systems, WiFi or femtocells• Need fixed broadband lines to provide connection and offload mobile network
-Is the path towards LTE evident?4. april 2012
-or will we need proper guidance?4. april 2012
LTE is defined for all relevant frequency bands Digital Dividend 3G (UMTS2100) CDMA Mobile WiMAX/ Fixed EDGE900 EDGE1800 Mob. 3G extension band WiMAX WiMAX 500 MHz 1000 MHz 1500 MHz 2000 MHz 2500 MHz 3000 MHz 3500 MHz LTE LTE LTE LTE LTE LTE LTEAdv.Low Frequency High FrequencyLong range Short range 4. april 2012
Evolution in site capacity from GSM to LTE - Downlink, sum of voice and data Disclaimer: Values should be taken as indicative. Performance will vary greatly with deployed solution,surrounding environment, terminal penetration and size of frequency spectrum. HSPA assumes 14,4 Mbps version. HSPA+ assumes 64QAM feature, not MIMO or Dual Carrier. Source: CONTEST, Telenor.
Speed is not the motivation… Lower production cost per bit Cost per Mbyte 3G HSPA HSPA+ LTE …4. april 2012 Source: NSN
Competitive power -Determined by spectrum 10 2600 MHz 2600 20 800 MHzFakecom LTE deployment strategy must be tuned to our relative ability to compete.
Key take-aways • Convergence: Usage and interactions between mobile and fixed networks will continue to grow to ensure optimum service offerings • Cost curves: Mobile technologies are much less suited for flat-rate subscriptions than fixed broadband technologies • Hybrid networks: Operators need to utilize more than one mobile technology to secure cost-effective deployments • Mobile Broadband: Mobile networks keep offering higher data rates but within limited coverage range, especially indoor • Indoor coverage: Indoor mobile broadband users represent majority of the traffic and should to a larger extent be connected via indoor antenna solutions. • New spectrum: Mobile Broadband at low frequencies is a cost-effective solution for areas with lower population density, as long as a healthy traffic balance is maintained.4. april 2012
AbbreviationsBSC Base Station Controller IP Internet ProtocolBSS Base Station Subsystem ISDN Integrated Services Digital NetworkBTS Base Transceiver Station ITU International Telecommunication UnionCDMA Code Division Multiple Access IMT-2000 International Mobile TelecommunicationCSD Circuit Switched Data MSC Mobile Switching CenterCN Core Network PLMN Public Land Mobile NetworkD-AMPS Digital-Advanced Mobile Phone System PSK Phase Shift Keying (Modulation)EDGE Enhanced Data rates for GSM Evolution PSTN Public Switched Telephone NetworkE-GPRS Enhanced - GPRS RNC Radio Network ControllerERAN EDGE Radio Access Network SCP Service Control PointETSIEuropean Telecommunications SGSN Serving GPRS Support Node Standards Institute TDD Time Division DuplexFDD Frequency Division Duplex TDMA Time Division Multiple AccessFDD-DS Frequency Division Duplex – UMTS Universal Mobile Telecommunications Direct Spread SystemFDD-MC Frequency Division Duplex - MultiCarrier UTRAN UMTS Terestrial Radio Access NetworkGGSN Gateway GPRS Support Node VHE Virtual Home EnvironmentGERAN GSM EDGE Radio Access Network VLR Visitor Location RegisterGMSK Gaussian Minimum Shift Keying VoIP Voice over Internet Protocol (Modulation) WAP Wireless Application ProtocolGPRS General Packet Radio System W-CDMA Wideband -CDMAGSM Global System for Mobile 2G 2nd Generation (mobile network) communication (2,5G GPRS)HLR april 2012 4. Home Location Register 3G 3rd Generation (mobile network)HSCSD High Speed Circuit Switched Data 3GPP 3rd Generation Partnership
Sites, BTSs and cells… • A SITE is the physical location of which a base station is placed. Includes all equipment put up by the operator (mast, antennas,cabin, base station rack etc.) • A BTS is the base transceiver station, normally just called base station, i.e. the cabinet(s) containing the 1-3 cells belonging to a site. • A NodeB is the term used for BTS in UMTS • A CELL is each uniquely identified GSM or UMTS capacity source in a BTS or NodeB, defined by its own coverage footprint (or coverage cell) • A TRX is a single transmitter/receiver unit able to provide one single GSM frequency to the cell’s coverage footprint. Each cell has 1-12 TRXs depending on the capacity need.4. april 2012
Target for the network evolution: All IP broadband network
Basic network interfaces Fixed network Authentication Media SubscriberCore Gateway profiles Charging Service PlatformNetwork Intelligent Network Core Packet Transport Switch Internet Base Gateway Statio Packet n Switch Contro ServingTransport Backhaul l NodeNetwork Base stationRadio / network domainAccessNetwork user domain Marie Anne
Cost distribution in mobile networks Core & Backbone network Transport network Radio Access network BTS MSC BSC ISP internet connection BTS Hub Core Backbone network Access network m*E1 n*E1 E1 BTS MGW BackhaulCAPEX share forgreenfield voice 30% 20% 50%CAPEX share forgreenfield MBB 10% 45% 45% 4. april 2012