Ml 2010 s niri


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Ml 2010 s niri

  1. 1. A Paradigm Shift inFuture Mobile Networks Dr Shahram G NiriGlobal LTE/SAE Strategy & Solution - NEC Europe
  2. 2. Towards True Mobile Broadband Voice Internet Broadband Mobile Broadband for everywhere mainly in buildings Everywhere & affordable Connected Digital World: Mobile Broadband Mobile Internet  A reality today Telephony Broadband  A dominant means of global broadband connectivity in the Today ~ 1.2 Billion 2015: 2.1 Billion (?) Today ~ 4 Billion near future <80% 3GPP family> 2013: 1 Billion 400+ million 3G/WCDMA subs Today ~140 Million (including HSPA)New services are being introduced with the Internet at the heart the servicesMore powerful and enabled devices are becoming availableDigital content and in particular Digital Home continues to growTraffic and data volume is increasing significantlyCustomer delight is absolutely essential  Users are adopting new habits  They are becoming more demanding on the quality and price From Kilo (103 ) bytes to Tera (1012 ) and Zeta (1021 ) bytes Page 2
  3. 3. Telecom Industry and Economy Worldwide Mobile Service Annual Growth Rate 14.0 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 2006 2007 2008 2009FThe Telecom / mobile business rather crowded sectorEurope in lead in mobile services: 119% in Europe, 87% in US and 84% in JapanTelecom sector growth is slowing but still stronger than rest of economy The sector growth in EU 26 (down from ~5% in 2004 to less ~ 1% in 2008, down to ~ 0 in 2009 and expected up to more than 1% in 2012)Telecom sector share of GDP: ~ 3% in EU in comparison to other sectors, e.g. 11% of transportation Golden days of Telecom is over Page 3
  4. 4. Deflationary Prices in Telecom Sector! Average household monthly spend on telecom services 50 Telecoms Price Development 40 Mobile Broadband 30 20 Euro/Month 10 0 2002 2003 2004 2005 2006 2007 2008 2009 Users are spending more time on the phone and internet Traffic and data volume is increasing significantly Average household spending on communication falls  Consumer pay less while getting better value -> they pay ~30% less than 5 years ago Telecom seems to be the only sector delivering price decrease Page 4
  5. 5. Significant Growth in Traffic While Slow in Revenue Traffic Mobile Network Traffic Growth Gap Revenue Time* Revenue of 1 Mb voice is 25-40 times more than 1 Mb of data Cost Vs Revenue does not add up Cap in flat rate Lower revenue and margin  Optimizations and other means of traffic handling User experience at risk New revenue streams and sources Limit/control it More efficient deliveries in radio, Turn it to revenue transport and core network Bring the cost of it down  Lower Capex and Opex Lower Cost & Better Performance and New Revenue Streams Needed Page 5 5 Page
  6. 6. Telecom Sector Dynamics Are ChangingDiverged traffic and revenue growth Converged networksNew ecosystem & new playersTrends toward being “Bit pipe provider” Mobile Change in revenue models OperatorsShift in revenue streamChange in differentiation Walled Garden Open Access Coverage Map Traditional Money Flow Customers Platforms Partners • Consumers Service • Service provides • Enterprises Identity • Content provides Capacity Map • SMEs •Developers • SOHOs QoS • Advertisers Security • Retailers Billing Traditional Service Flow Quality Map Page 6
  7. 7. Telecom in Need of Reform Towards More Sustainability Operators  Cost optimization Vendors New business models Innovative solutions Customer satisfaction E2E with lower TCO  Revenue generation True convergence of IT and Telecom Alternative deployment scenarios & more NW Sharing intelligent and efficient •Site sharing to spectrum networks sharing and eventually fully shared NW LTE • Differentiation through Bigger, Smarter & Cheaper pipe service, CRM, branding Cheaper NW operation Higher performance Carrier Cloud • True convergence Femto • New service & revenue model •Intelligent Indoor Solution • Service differentiation • New services & applications •Cost optimization •Cost saving and revenue generation Innovation and new business models Page 7 7 Page
  8. 8. LTE and 2G/3G Coexistence With LTE Femto/small cells Mature LTE Data traffic to increase exponentially Mature 3G/HSPA The data traffic and the revenue is generated mainly in hotspots & in- Mature GSM building The cost of outdoor/macro radio is high Problematic indoor coverage at high frequencies using macroEarly GSM Early 3G Early LTE  2.6 GHz not suitable for indoor and costly for coverage (macro) 1990 2000 2005 2010 2015 2020 2025 Public transport Need to operate 3 NWs for some time Public 4% outdoors 40% 35% 10% Site Public indoors 10% 41% BUT managing 3 NW will be costly and Radio Home 25% Private transport complex Backhaul 12% Work The 3rd NW will need to be cheap, easy 23% TCO breakdown to manage and fast to deploy Mobile usage in Western EU LTE to start in hotspots, high traffic zones & enterprise/residential Femtocells followed by nationwide coverage at later stages 8 NEC Confidential
  9. 9. LTE Small Cells; Smart Way to Future Networks LTE and HSDPA performance relative to Theoretical Limits 30.00 6.00 Specturm 5.00 25.00 MIMO Achievable Efficiency (bps/Hz) shannon limit Modulation & Coding HSDPA 4.00 20.00 LTE 3.00 15.00 2.00 10.00 1.00 5.00 0.00 -10.00 -5 0 5 10.00 15.00 0.00 Required SNR (db) GSM GPRS EDGE WCDMA HSDPA HSPA+ LTE Small cellLTE and HSPA link level spectrum efficiencies • Operate at higher SNR, hence improve close to theoretical limits the achievable spectrum efficiency Other factors such as Coding & Modulation, • Also improves the QoS in the network – MIMO and more spectrum contribute towards better user experience higher capacity – Spectrum highest contributor! • Allows for faster, more felxible, cheaper Spectrum is scarce and number of antennas is and easier deployment and operation also limited Frequency reuse is the key to keep up with exponential increase of traffic in the future with limited spectrum availability 9
  10. 10. Think Big – Deploy Small Cells 2G and 3G networks (already provide macro coverage) LTE deployment drivers LTE on 2.6 Ghz initially for high data traffic hot spots Overlay micro/pico: fast to deploy and cheap and easy to install and operate Address indoor coverage and capacity with LTE Femto enterprise 1 4 Improve macro (HSPA) coverage by overflowing the traffic to LTE Use Digital Dividend later on & when the older technologies phase out for 2 3 LTE macro 1 Capacity Driven Invest where the traffic and hence the revenue is Hotspots and high traffic zones Improve your overall data traffic capacity and performance Start small and build as your number of users / traffic increases 4 3 Future Outlook 2 1 2G&3G for ubiquitous voice 2G/3G 2 New Business Driven & HSPA mainly data Femto and hotspot islands HSPA 2G&3G for Voice & HSPA LTE for ubiquitous data & LTE for data 1 LTE 3 2G / 3G for voice , HSPA for LTE 4 ubiquitous data & LTE for Femto 2 data 3 Coverage Driven 4G LTE Macro deployment Page 10
  11. 11. Lower TCO: A Key to Successful LTE Small Cell NEC’s Hybrid SON Server NEC’s Green Mobile Commitment to the EnvironmentSON a key feature for improving & reducing the cost of operationand enhancing user experience • Power; efficient hardware Customers•Self Planning Management System North bound interface • Intelligent energy efficient software•Self-configuration Client for • Reduced CO2 emissions with state of the Main Server•Self-optimization & Self-healing art devices & chipsets•Energy Saving • Fan-less cooling system design South bound•Planning Tool Optimization interface PA efficiency•SON for LTE Femto eNB & ePC LAN From 20% to 45% power efficiency! Reduced TCO with NEC’s Small Cell Deployment OPEX – 70% of TCO CAPEX – 30% of TCO LTE PA Transport Equipment 3G PA 15% 5% 20% Civil Works Hardware of TCO Software Manpower 30% 10% 5% Operation Leased 15% Line 30% Power consumption Accessory 20% 75% less power Power Site Rental consumption! 30% Consumpti on NEC’s 3G 10% Installation, Antenna (Source: 40% 10% Site 5% In-Stat 2008/6) of TCO Acquisition NEC’s LTE 10%Page 11
  12. 12. Cost Effective & Flexible Deployment - eNB Indoor & Outdoor Distributed BBU and RRH Macro Macro Rectifier, Micro /Pico BBU RRH Battery Combined BBU & RRHOutdoor RRH SECU Indoor Femto BB unit RF unit • Most compact BB unit • High capacity • Flexible in mount • Lower power • Various form factors consumption • Zero Foot print • Flexible and scalable • Scalable with high capacity • Wall & Pole mountable Small cell eNB & LTE Femto Wall Install Classic outdoor • All in One for micro Installation • Residential / SOHO & pico deployment • Enterprise for indoor private • Outdoor Public 420x230x130 mm 12 kg RRH 125 W Pico eNB BBU Femto Femto (BB+RF) Ladder Residential Enterprise Installation eNB Page 12
  13. 13. Summary Mobile Broadband is a reality and potentials are huge There is a need for a new paradigm in mobile NW for cost effective realisation of a true mobile broadband  LTE as a cost effective and future proof technology is a key to future mobile broadband  New innovative solution, lower TCO, flexibility and scalability in the deployment, simplicity and ease of operation will be key to the success of LTE for mobile broadband An overlay network with small cell deployment is the way forward  NW Sharing from site to spectrum sharing and eventually fully shared NW with new differentiations will be the way forward  Cloud Computing for bringing the TCO down and creating new revenue modelsPage 13