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2.5G to 3G Migration

2.5G to 3G Migration. Critical Success Factors. Presented by: Moheb Adel Ramses Technical Director, Mobile Networks MENA Region. The 8th Arab Telecom and Internet Forum Shangri-La's Resort, Muscat - Oman 24 -25 May 2006. Reachable. Integration. Best Connected. Coverage Capacity.

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2.5G to 3G Migration

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  1. 2.5G to 3G Migration Critical Success Factors Presented by: Moheb Adel Ramses Technical Director, Mobile Networks MENA Region The 8th Arab Telecom and Internet Forum Shangri-La's Resort, Muscat - Oman 24 -25 May 2006

  2. Reachable Integration Best Connected Coverage Capacity User needs and Services oriented New Services Broadband Non-Voice operation $ Transfer to content Voice operation Pay for Content Pay for media access Medium=Service M2M etc. ~2002 2010 1990 Overall Evolution and Industry Trend Access business and Services business break up Source: HUAWEI

  3. IMS IP UTRAN Enhanced IMS E2E IP RNC LTE Soft-switch IP CN Unified Flat Converged ALL IP Converged Intelligent Integration Ultra-high speed Ubiquitous coverage Higher Spectrum efficiency Various access technology Low Cost Indoor coverage UMA WiMAX OFDM MIMO HSDPA HSUPA WIFI Radio Access Multi Band Multi Mode Multi Media Software Defined Radio Online Reconfigurable Dual Band Dual Mode Terminal Time Network Architecture Wireless Network Trends • The wireless networks converge in the core network and the terminal. • Wireless access adds value to services, and users will choose best value connection. • Usage goes indoor! More than 70% traffic has moved from highway to hallway

  4. RAN Evolution Trends WiFi UMA/WiMAX 3GPP WCDMA and CDMA2000 have very similar RAN migration roadmaps. UMTS 3GPP2 CDMA2000 Source: Qualcomm

  5. CS (+ PS) CS + IMS (+ PS) IMS (+ PS) Core Network Evolution Trends Softswitch MSC (R4)/LMSD IMS/MMD (R5/R6) Legacy MSC (R99) CSCF MSC Server MSC Server MGCF MGCF MISUP SIP MSC MSC SIP-T Divided into MSC Server & MGW H.248 H.248 H.248 H.248 TDM IP TDM/IP MGW MGW MGW MGW PSTN CDMA BSS/ UMTS RAN CDMA BSS/ UMTS RAN CDMA BSS/ UMTS RAN PSTN PSTN • UMTS and CDMA2000 also have very similar core network migration roadmaps. • Soft-Switch is the optimum structure for voice • IMS is the optimum structure for multimedia service • SoftSwitch and IMS will coexist for a long time

  6. GSM Market Growth Source: Informa Source: EMC World Cellular Database, Dec 2004 • The number of GSM subscribers will exceed 2 billion by the end of 2007 • Lower End-to-End cost is the main strength of GSM networks • ME&NA is still the fastest growing mobile market • Voice and SMS are and will still be the main source of revenue for quite a long time

  7. Number of Subscribers Number of Networks 3G, a new engine to improve ARPU Subscribers (Million) Number of networks UMTS subscribers number hit 44.6 million worldwide by the end of 2005, an increase of161%on the figure at the end of 2004. 44.6 millions Subs 83UMTS networks Source: www.3gtoday.com • Today, there are 108 commercial WCDMA operators in 47 countries. The majority are enabling HSDPA in their networks as the new baseline for 3G globally (www.gsacom.com ) • Green field UMTS networks are still facing relatively high price terminals • GSM operators in MENA launch UMTS networks focusing on data services for high end users, despite the poor take-up of their 2.5G data services • There is generally a limited amount of money available from users to increase the total revenues of operators • HSDPA availability is currently boosting the 3G deployment, allowing a net differentiation between 2.5 and 3G services. • HSDPA gathers momentum in the MENA, especially in the Gulf countries like UAE, Kuwait, Bahrain, Oman, etc …

  8. Migration Opportunities and Challenges • How to balance 2G Network Expansion versus New 3G Service Launch? • How to deploy UMTS step by step ? • How to reduce TCO to optimize the revenues of the resulting network. GSM operators should plan to make 3G an “Evolution” rather than “Migration”

  9. TCO Saving in Lifecycle (k EUR) • OPEX represents more than half of the total cost of ownership. • Rental, power consumption, leased lines and human resources are major parts of OPEX TCO reduction is generally “Crucial”, especially at this stage of 3G deployment

  10. Optimized Migration Plan Shared Core Networks save CAPEX, OPEX and Improve Quality • As a considerable step towards 3G deployment, we recommend GSM operators to adopt R4 Soft-switch architecture whenever they are: • Deploying a new GSM network for a new license • Expanding the core network for an existing GSM network • Swapping legacy GSM MSC Huawei Mobile Soft Switch and Packet CN achieve 2G/3G Convergence

  11. Optimized Migration Plan New Technologies Reduce TCO in Node B • Making maximum use of advanced Node B technologies considerably reduce TCO: • Integrated Digital PA; higher power efficiency with lower power consumption • Multi Carrier Transceivers; software capacity expansion • Full HSDPA performance; lower cost per bit. • Open CPRI interface; lower industrial chain cost • Distributed Node B; easier site acquisition, installation and transportation Macro indoor Macro Outdoor Pico Node B Mini Node B Distributed NodeB RRU Optical Fiber CPRI BBU 19 inch box

  12. Optimized Migration Plan Balanced Transmission Cost and QoS with Hybrid Transmission E1 for CS Services and High QoS PS services E1 Node B IP network RNC IP Network for best effort PS services • Balance of transmission cost saving and QoS guarantee • Most efficient transmission solution for HSDPA • 40%-80% Transmission rental can be saved!

  13. Optimized Migration Plan Go Broadband today with HSDPA Peak data rate: HSDPA = 700% Cost per MB: HSDPA =35% HSDPA provides lower cost per bit, clearly differentiate 3G from 2G services to the end user.

  14. Optimized Migration Plan Speed Up Introducing Attractive 3G based Applications TV Programs Example: Mobile TV Huawei Cell Multimedia Broadcast (CMB): • All users share a common channel (FACH) • Fewer resources occupied but higher revenue for operators • Low cost and good experience for end users • Smooth evolution to MBMS • CMB allows a pre-MBMS cost effective solution for Mobile TV and other broadcasts.

  15. At this stage, it is strongly recommended that operators cooperate closely with terminals’ suppliers to provide affordable customized handsets. Huawei has focused on designing chipsets for Multi-platform solution to reduce the cost of low end terminals Cooperate closely with operators for customized handsets Optimized Migration Plan Cooperation with suppliers for Affordable and Customized User Terminals U526 E620(HSDPA) E618 customized for Vodafone U626 U636 U526 E600

  16. NTS P4 About Huawei 3G:Global UMTS Applications Area Contract Reference Europe 12 …… Asia Pacific 9 …… Middle East 7 & Africa …… • Achieved 28 UMTS commercial contracts by the end of April 2006 • Deployed over 50 pilot networks worldwide. • 22% Market share of Total Awarded Contracts in 2005.

  17. Russia About Huawei 3G:Global CDMA2000 Applications Global Footprint of Huawei CDMA Thailand China Pakistan Bangladesh Mexico Nigeria Yemen • Over 40 M subscribers • 19 CDMA2000 1xEV-DO commercial applications • 15CDMA SoftSwitch commercial applications serving 10 M subscribers • over 65% global market share in CDMA450 • 68% global market share in CDMA WLL

  18. Conclusion • The trend of telecom industry is evolving from Network Based to Customer and Services Based. • Despite the competition between UMTS and CDMA2000 as the two favorite 3G technologies, they do share a lot of similarities in their Capabilities and Roadmaps. • Shared Core Networks for 2G and 3G – whether Circuit core based on R4 softswitch or Packet core - is a major step towards a smooth migration, optimizing CAPEX and OPEX as well as improving QoS. • A set of new advanced technologies in the 3G Node B’s considerably help the operators to reduce the TCO while improving the overall performance. • Hybrid TDM/IP transmission is currently the favorite solution to balance the high speed data transmission requirements and the cost of transmission resources. • Huawei strongly encourages operators to differentiate their 3G capabilities with innovative and attractive applications (especially with HSDPA mature availability), and to cooperate with handsets suppliers for affordable and customized user terminals. • Huawei has achieved a remarkable global presence and leadership in the mobile industry, witnessed by the wide global applications of Huawei GSM/GPRS/EDGE/UMTS/CDMA2000 1x/DO networks.

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