Mobile broadband is crystallizing as a huge opportunity…<br /><ul><li>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</li></ul>Radio Access Technology Evolution<br /><ul><li>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)</li></ul>Handset Evolution<br /><ul><li>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. </li></ul>Services Evolution<br /><ul><li>The launching of flat rates for mobile data traffic has triggered the increase of data traffic on mobile networks.</li></ul>Tariffs evolution<br />2<br />
3<br />…opportunity that is becoming a reality in terms of adoption…<br />Mobile Data Traffic explosion is a reality…<br />Mobile Data traffic growth of between x2 and x3 YoY in higher traffic Operations<br />(*)<br />…that reflects not only in terms of mobile data growth but also in terms of mobile data adoption (number of customers) <br />Similar multiplying factors in terms number of Mobile Broadband customer evolution<br />(*) Customernumberfor >100MB monthlyconsumption<br />
4<br />… and the Network must undergo fundamental changes to face these requirements<br />MULTIACCESS<br />CUSTOMER<br />OPEN NETWORK<br />CORE<br />Bluevia<br />Large developer community:<br />One development,<br />Global applications<br />Service Platforms<br />Digital Home & Enterprise<br />MBB<br />3G / LTE / WiFi<br />FLAT IP<br />NETWORK<br />DEVICES<br />HOME <br />NETWORKING<br />Bandwidth<br />Mobility<br />Network<br />Cloud<br />Smartphone<br />PC<br />Connected TV<br />WiFi<br />Wired<br />Simple & ubiquitous customer experience<br />≈100 %<br />New copper<br />Fiber<br />Intelligent network<br /><10 %<br /><ul><li>Identity management
QoS</li></ul>Interconnection<br />UBB<br />OTHERS’ NETWORKS<br />High capacity: “video enabled”<br />End to End QoS<br />End to End Security<br />… and provide a superior Customer Experience<br /><ul><li>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</li></li></ul><li>Telecommunication industry is now in a key period in which technology will continue being differentiating<br />Narrowband<br />era<br />Broadband<br />era<br />Ultra-Broadband<br />era<br />Speed<br />per <br />Customer<br />DSL+UMTS<br />x10<br />Fiber+LTE<br />x100<br />Dial-up + GSM<br /><ul><li> To lead change of model with internet players increasing network intelligence</li></ul>Managed<br />Services (QoS)<br /><ul><li>IPTV, OTT, HD, 3D
…</li></ul>Technological innovation when fundamental changes in the industry happen may represent a competitive advantage between 3 to 5 years<br /><ul><li>IPTV</li></ul>Internet (Best Effort)<br /><ul><li> To lead over other traditional operators</li></ul> 2000-2015<br /> 2010-2040<br /> Today<br />Both capabilities in access evolution and allowing deliver new kind of services will be key differentiators in next years<br />5<br />
6<br />Network evolution do needs to address specific key requirements within highest priority<br />Novel Deployment Strategy based on small-cell capacity layers<br />+<br /><ul><li>Extension to rural areas based on lower frequency bands – Spectrum requirements.
It shall be complemented with small-cell topologies to allow for meeting MBB customer needs and expected QoE.</li></ul>Network Capacity Enhancement<br /><ul><li>Enhanced focus on customer experience and satisfaction, also from network perspective.
Evolution towards services based and segmented experience.</li></ul>User Experience<br /><ul><li>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</li></ul>Profitability<br />
7<br />Radio Access Network Evolution Strategy<br />Radio Access Network Architecture<br /><ul><li>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.</li></ul>Radio Access Network Technology<br /><ul><li> 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.</li></ul>Spectrum evolution<br /><ul><li> 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.</li></ul>Customer-centric Operation<br /><ul><li> Evolution towards a customer centric network operation.
Higher level of customer segmentation by end to end QoS & differentiated commercial propositions.
Increasing focus on customer experience tracking</li></li></ul><li>