CONTEST

1. CONTEST Mobile broadband network principlesEBU workshop May 12th 2011Stein Erik PaulsenRadio Technology ManagerCorporate Development Telenor stein-erik.paulsen@telenor.com

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

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

4. The future contains frequent Techno-strategic decisions

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

6. Example of establishing a GSM radio network

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

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

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

10. $ COST Revenue Traffic The challenge of mobile broadband

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

12. 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. Area= 50km2 Population= 1 M Subscribers= 346k 15 mErl/sub (*) Tot. traffic= 5190 Erl (*) Meaning that the average customer calls for 1,5% of the most busy hour of the day For illustration purpose only – the conclusions and calculations are simplified

13. Getting more spectrum essential for meeting future service demand Frequency spectrum for mobile communication Digital Dividend 3G (UMTS2100) CDMA Mobile broadband extension band GSM900 GSM1800 1500 MHz 500 MHz 1000 MHz 2000 MHz 2500 MHz 3000 MHz

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

15. 2600 MHz 900 MHz 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. Digital Dividend band: A desire and a curse:Too little of something good can be bad! 800 MHz 2600 MHz 11% 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? => A fair amount of low-frequency spectrum per operator is a prerequisite.

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

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. The future

20. -Is the path towards LTE evident?

21. -or will we need proper guidance?

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

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

25. To summmm up…

26. 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.

27. LTE: Customers expect high performance

28. …and they expect coverage

29. Thank you for your attention!

30. Backup slides

31. Abbreviations BSC Base Station Controller BSS Base Station Subsystem BTS Base Transceiver Station CDMA Code Division Multiple Access CSD Circuit Switched Data CN Core Network D-AMPS Digital-Advanced Mobile Phone System EDGE Enhanced Data rates for GSM Evolution E-GPRS Enhanced - GPRS ERAN EDGE Radio Access Network ETSI European Telecommunications Standards Institute FDD Frequency Division Duplex FDD-DS Frequency Division Duplex – Direct Spread FDD-MC Frequency Division Duplex - MultiCarrier GGSN Gateway GPRS Support Node GERAN GSM EDGE Radio Access Network GMSK Gaussian Minimum Shift Keying (Modulation) GPRS General Packet Radio System GSM Global System for Mobile communication HLR Home Location Register HSCSD High Speed Circuit Switched Data IN Intelligent Network IP Internet Protocol ISDN Integrated Services Digital Network ITU International Telecommunication Union IMT-2000 International Mobile Telecommunication MSC Mobile Switching Center PLMN Public Land Mobile Network PSK Phase Shift Keying (Modulation) PSTN Public Switched Telephone Network RNC Radio Network Controller SCP Service Control Point SGSN Serving GPRS Support Node TDD Time Division Duplex TDMA Time Division Multiple Access UMTS Universal Mobile Telecommunications System UTRAN UMTS Terestrial Radio Access Network VHE Virtual Home Environment VLR Visitor Location Register VoIP Voice over Internet Protocol WAP Wireless Application Protocol W-CDMA Wideband -CDMA 2G 2nd Generation (mobile network) (2,5G GPRS) 3G 3rd Generation (mobile network) 3GPP 3rd Generation Partnership Project

32. 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 cell’s coverage footprint. Each cell has 1-12 TRXs depending on the capacity need.

33. Typical user data rates LTE- Advanced 30 – 300 Mbit/s LTE 5 – 60 Mbit/s HSPA 1.0 – 5 Mbit/s 3G basic 150-350 kbit/s 100 kbps 1 Mbps 10 Mbps 100 Mbps

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

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

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