1. 12. juni 2014 Mobile broadband network principles EBU workshop May 12 th 2011 Stein Erik Paulsen Radio Technology Manager Corporate Development Telenor stein-erik.paulsen@telenor.com CONTEST

2. 12. juni 2014 CONTENTS How to avoid interference? How can capacity be increased? Why use indoor antennas? Why do we need so much spectrum? What about the future? How to build a mobile network?

3. 12. juni 2014 -The journey has just started Radio access network evolution

4. 12. juni 2014 The future contains frequent Techno-strategic decisions

5. 12. juni 2014 Ericsson: In 3 years network traffic has increased by a factor of 10… …and revenue increased by 35%...

6. 12. juni 2014 Example of establishing a GSM radio network

7. 12. juni 2014 The base stations (BTS) are distributed to give RADIO COVERAGE En

8. 12. juni 2014 The base stations (BTS) are distributed to give RADIO COVERAGE – and Capacity En

9. 12. juni 2014 Requested traffic Phase 2: Capacity limited network Phase 1: Coverage limited network Larger spectrum Smaller spectrum Challenge! Network cost Start-up cost Increased traffic drives cost

10. The challenge of mobile broadband COST Revenue $ Traffic

11. 12. juni 2014 With boosting data traffic there is a need for more frequent network updates than before Traffic load Basic 3G HSPA HSPA+ LTE = Resulting network cost Network cost

12. 12. juni 2014 Area= 50km2 Population= 1 M Subscribers= 346k 15 mErl/sub (*) Tot. traffic= 5190 Erl 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 total traffic of 5190 Erlang Country 2: 4,4 MHz band -> 22 channels –=>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. For illustration purpose only – the conclusions and calculations are simplified (*) Meaning that the average customer calls for 1,5% of the most busy hour of the day

13. 12. juni 2014 Frequency spectrum for mobile communication CDMA Digital Dividend 3G (UMTS2100) GSM1800 GSM900 Mobile broadband extension band 2500 MHz 500 MHz 2000 MHz1000 MHz 1500 MHz 3000 MHz Getting more spectrum essential for meeting future service demand

14. 12. juni 2014 3G in new frequency bands - refarming In-Building coverage area for suburban terrain (Source: Nokia Siemens Networks & Elisa) (WCDMA = UMTS/HSPA = 3G) (HSPA)

15. 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

16. => A fair amount of low-frequency spectrum per operator is a prerequisite. Digital Dividend band: A desire and a curse: Too little of something good can be bad! 2600 MHz 11% 800 MHz 800 MHz: Very attractive for coverage, but how to avoid traffic congestion if 89% of all users only have coverage from the 800 MHz system?

17. 12. juni 2014 Network capacity is hard to predict 10 Mbit/s 5 Mbit/s 2 Mbit/s 0.5 Mbit/s Total Capacity 10 Mbit/s 2.5 Mbit/s 5 Mbit/s 7.5 Mbit/s 1 Mbit/s 0.5 Mbit/s 0.2 Mbit/s 0.05 Mbit/s

18. 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

19. 12. juni 2014 The future

20. 12. juni 2014 -Is the path towards LTE evident?

21. 12. juni 2014 -or will we need proper guidance?

22. 12. juni 2014 Mob. WiMAX Low Frequency Long range High Frequency Short range CDMA Fixed WiMAX 3G (UMTS2100) EDGE1800 EDGE900 Mobile WiMAX/ 3G extension band 2500 MHz 500 MHz 2000 MHz 3500 MHz 1000 MHz 1500 MHz 3000 MHz LTE Digital Dividend LTE Adv. LTE is defined for all relevant frequency bands

23. 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.

24. 12. juni 2014 Speed is not the motivation… 3G HSPA HSPA+ LTE … Cost per Mbyte Lower production cost per bit Source: NSN

25. 20 MHz 10 MHz Competitive power -Determined by spectrum LTE deployment strategy must be tuned to our relative ability to compete. Fakecom 2600 800 MHz 2600 MHz

26. 26 To summmm up…

27. 12. juni 2014 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.

28. LTE: Customers expect high performance

29. …and they expect coverage

30. Thank you for your attention!

31. 12. juni 2014 Backup slides

32. 12. juni 2014 Abbreviations BSCBase Station Controller BSSBase Station Subsystem BTSBase Transceiver Station CDMACode Division Multiple Access CSDCircuit Switched Data CNCore Network D-AMPSDigital-Advanced Mobile Phone System EDGEEnhanced Data rates for GSM Evolution E-GPRSEnhanced - GPRS ERANEDGE Radio Access Network ETSIEuropean Telecommunications Standards Institute FDDFrequency Division Duplex FDD-DSFrequency Division Duplex – Direct Spread FDD-MCFrequency Division Duplex - MultiCarrier GGSNGateway GPRS Support Node GERAN GSM EDGE Radio Access Network GMSKGaussian Minimum Shift Keying (Modulation) GPRSGeneral Packet Radio System GSMGlobal System for Mobile communication HLRHome Location Register HSCSDHigh Speed Circuit Switched Data INIntelligent Network IPInternet Protocol ISDNIntegrated Services Digital Network ITUInternational Telecommunication Union IMT-2000International Mobile Telecommunication MSCMobile Switching Center PLMNPublic Land Mobile Network PSKPhase Shift Keying (Modulation) PSTNPublic Switched Telephone Network RNCRadio Network Controller SCPService Control Point SGSNServing GPRS Support Node TDDTime Division Duplex TDMATime Division Multiple Access UMTSUniversal Mobile Telecommunications System UTRANUMTS Terestrial Radio Access Network VHEVirtual Home Environment VLRVisitor Location Register VoIPVoice over Internet Protocol WAPWireless Application Protocol W-CDMAWideband -CDMA 2G2nd Generation (mobile network) (2,5GGPRS) 3G3rd Generation (mobile network) 3GPP3rd Generation Partnership Project

33. 12. juni 2014 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 cells coverage footprint. Each cell has 1-12 TRXs depending on the capacity need.

34. Typical user data rates 3G basic HSPA LTE LTE- Advanced 100 kbps1 Mbps10 Mbps100 Mbps 150-350 kbit/s 1.0 – 5 Mbit/s 5 – 60 Mbit/s 30 – 300 Mbit/s

35. Target for the network evolution: All IP broadband network

36. network domain user domain I n t e r n e t Fixed network C o r e T r a n s p o r t Packet Switch Serving Node Media Gateway Packet Switch Gateway B a c k h a u l Base station Base Station Control Basic network interfaces MarieAnne Service Platform Subscriber profiles Authentication Charging Intelligent Network Core Network Radio / Access Network Transport Network

37. 12. juni 2014 BSC Backbone network Hub ISP internet connection Core MSC MGW BTS n*E1 m*E1 Backhaul E1 CAPEX share for greenfield voice 30%20%50% Access network CAPEX share for greenfield MBB 10%45% Cost distribution in mobile networks Core & Backbone networkTransport networkRadio Access network