1 Mobile Broadband Telefónica Technological Strategy Jaime Lluch New Access Networks Technology Manager Sept 2010
Mobile broadband is crystallizing as a huge opportunity…
Mobile broadband is joining the two main engines of growth for telco of the last years: Internet and Mobile
Some conditions have changed for this expectations to start becoming reality:
UMTS evolution towards HSDPA (mainly SW evolution) allows for datarates that are perceived as broadband by the customers
Excess of capacity has led to aggressive commercial offering
Radio Access Technology Evolution
Higher number of available connectivity terminals (dongles, PCMCIA, integrated) with reduction on cost
Smartphones - Disposal of new handset concepts like iPhoneor Mobile Internet Device (MID)
Pure connectivity (for PC) is becoming the main mobile data service
Services more adapted to mobility & continuity on the connection like email, social networks, etc.
Video component is taking more part of mobile services.
The launching of flat rates for mobile data traffic has triggered the increase of data traffic on mobile networks.
Tariffs evolution 2
3 …opportunity that is becoming a reality in terms of adoption… Mobile Data Traffic explosion is a reality… Mobile Data traffic growth of between x2 and x3 YoY in higher traffic Operations (*) …that reflects not only in terms of mobile data growth but also in terms of mobile data adoption (number of customers) Similar multiplying factors in terms number of Mobile Broadband customer evolution (*) Customernumberfor >100MB monthlyconsumption
4 … and the Network must undergo fundamental changes to face these requirements MULTIACCESS CUSTOMER OPEN NETWORK CORE Bluevia Large developer community: One development, Global applications Service Platforms Digital Home & Enterprise MBB 3G / LTE / WiFi FLAT IP NETWORK DEVICES HOME NETWORKING Bandwidth Mobility Network Cloud Smartphone PC Connected TV WiFi Wired Simple & ubiquitous customer experience ≈100 % New copper Fiber Intelligent network <10 %
Interconnection UBB OTHERS’ NETWORKS High capacity: “video enabled” End to End QoS End to End Security … and provide a superior Customer Experience
Voice-designed networks and operations must be turned into voice, data and video enabled network
Customer’s life cycle (delivery, service activation, home networking, devices) must be remotely manageable
Telecommunication industry is now in a key period in which technology will continue being differentiating Narrowband era Broadband era Ultra-Broadband era Speed per Customer DSL+UMTS x10 Fiber+LTE x100 Dial-up + GSM
To lead change of model with internet players increasing network intelligence
Managed Services (QoS)
IPTV, OTT, HD, 3D
Technological innovation when fundamental changes in the industry happen may represent a competitive advantage between 3 to 5 years
Internet (Best Effort)
To lead over other traditional operators
2000-2015 2010-2040 Today Both capabilities in access evolution and allowing deliver new kind of services will be key differentiators in next years 5
6 Network evolution do needs to address specific key requirements within highest priority Novel Deployment Strategy based on small-cell capacity layers +
Extension to rural areas based on lower frequency bands – Spectrum requirements.
Ubiquity – MBB everywere
Macro layer network is not able to cope with mobile data traffic and customer experience demand on the long term (10 years time), even evolving towards LTE.
It shall be complemented with small-cell topologies to allow for meeting MBB customer needs and expected QoE.
Network Capacity Enhancement
Enhanced focus on customer experience and satisfaction, also from network perspective.
Evolution towards services based and segmented experience.
Ensure MBB profitability on the long term requires to enhance focus on customer segmentation, that also implies strategic actions within network
Intelligent resource allocation from network perspective – provide the end customer the right experience based on customer segmentation, service requirements and subjective quality perception, terminal based differentiation, etc.
Evolution from flat-tariffs towards customer specific service proposals
7 Radio Access Network Evolution Strategy Radio Access Network Architecture
Macro network is capable of handling MBB traffic for the short/medium term, but not on the longer term.
Technology & spectrum evolution only is not enough to cope with MBB customer expected needs
Progressive evolution towards multi-layer mobile data network with higher relevance of micro/pico/femto cells.
Radio Access Network Technology
HSPA macro network will keep on evolving and carrying MBB traffic for some years…
…while evolving towards LTE on 2011-13 timeframe.
3GPP-Cellular technologies and its evolution to drive network evolution. Limited opportunity for offloading to WiFi technologies in specific scenarios.
Digital Dividend and 900MHz refarming as key enablers for MBB ubiquity proposal.
Additional spectrum for LTE (2.6GHz band) to provide the required capacity and customer experience.
Evolution towards a customer centric network operation.
Higher level of customer segmentation by end to end QoS & differentiated commercial propositions.