Moderator:

Dr. Philip Marshall, Senior Research Fellow, Technology

Research, Yankee Group
Speakers:
Nishant Batra, Senior Director, Wireless Solution Sales,
Ericsson Inc.
Bob Gessel, Head of Network and Technology Strategy,
North America, Ericsson Inc.

ATIS Webinar: Realizing the Benefits of LTE
October 13, 2009
LTE Webinar

Nishant Batra
Sr. Director, Wireless Solutions
Ericsson
Mobile Broadband Speed Evolution
LTE

LTE

HSPA+

Market impact 2009 2010 ~2014

Peak rate 42 Mbps ~150 Mbps ~1000 Mbps
Typical user rate downlink 1-10 Mbps 10-100 Mbps Operator dependent
Typical user rate uplink 0.5-4.5 Mbps 5-50 Mbps Operator dependent

3
Mobile System Evolution

GSM Track (3GPP)

GSM WCDMA HSPA
TD-SCDMA
LTE
FDD and TDD
CDMA Track (3GPP2)
CDMA One EVDO Rev A

2001 2005 2008 2010

Strong industry drivers for LTE – FDD and TDD

4
Reduced Total Cost of Ownership

All-IP
architecture

Wider pipe
advantage

Self Organizing Networks

5
Key LTE Radio Access Features
› LTE radio access
– Downlink: OFDM OFDMA
– Uplink: SC-FDMA
SC-FDMA

› Advanced antenna solutions

– Diversity
– Beam-forming TX TX
– Multi-layer transmission (MIMO)

› Spectrum flexibility
– Flexible bandwidth
– New and existing bands 1.4 MHz 20 MHz
– Duplex flexibility: FDD and TDD

6
Summary: Cell Peak Rate vs Radio BW
Radio Bandwidth Downlink Cell Peak Rate* Uplink Cell Peak Rate*

(50 % of DL peak rate)

20 MHz 150 Mbps 75 Mbps

15 MHz 113 Mbps 57 Mbps

10 MHz 75 Mbps 38 Mbps

5 MHz 38 Mbps 19 Mbps

3 MHz 23 Mbps 12 Mbps

1.4 MHz 9 Mbps 5 Mbps

* User data (payload)

** Add TN overhead

7
 SON: Configuration Management
Base Station Integration
Manager - BSIM
<15 minutes

• BSIM, is a new view in CEX. All 5s 90s 40s 90s 20s 30s 5s 5s
OSS data required to perform the Preparation Integration Configuration Activation

create data
Auto-Integration is entered in BSIM IP conn
Optional steps may be added;
site data
software upgrade = 3-6 minutes
IPsec IRAT neighbours = 4 minutes
O&M acc.

S1 data

RN/TN data
unlock cells
backup

8
 Configuration Management
SON:
Automated Neighbor Relations

OSS support of ANR:

• Control On/Off (eNB, Cluster or
Network level)
• Set/Change ANR Parameters
• Manage Black and White list
• Support for ANR Policies
• Shows ANR Events with time
stamps
• Event/Data Filtering
• Neighbour Add/Remove Counter
• Supported in Common Explorer A B
X2

Cell A Cell B

9
 SON: Fault Handling
Inter-RBS
network
› Correction; correlation
...Plug’n Play on boards
...software corrections with upgrade
...error logs for deep analysis alarm Presentation
...action suggested in aalrm
› Notification;
...alarms (remote at NOC) predefined Intra-RBS
...LEDs on front panels (at site) rules correlation
› Correlation;
...internal rules
...correlation info in alarms
predefined Service supervision
› Recovery;
...automated resolution recovery rule and recovery
...blocking hirearchy per fault type
...restart ranking
...restart domains
...repeated and high intensity faults will be
treated with tougher and tougher actions in Resources
escelation steps.
...automated reconfiguration of resources
› Detection;
...software; errors, parity checks and failing
processes
...hardware; self tests,
10
 LTE All-IP RAN Overview
RBS site Mobile backhaul Switching site

All-IP, 3..4 CoS classes

Microwave
2G
BSC

Copper IP/MPLS
3G (metro ethernet) RNC

Fibre
SGW
LTE Metro, HRAN
Access, LRAN

eNodeB LRAN HRAN SGw

• Peak rates: 150..300 Mpbs • L2 recommended by /// • Likely L3, IP/MPLS • Located at Sw Site
• Fibre/microwave to site • Router somewhere in the • Redundancy
LRAN/HRAN network
• E-LAN or PTP • Security GW, if IPsec used

No Revolution - Just Evolution of Existing Infrastructure

11
LTE: New Revenues; Less OPEX & CAPEX
2. Mobile Internet 1. Mobile Broadband

Any service
anywhere
One network
one investment

3. Mobile Voice 2. Wireless Broadband

12
Differentiated Service to End Users
CS Bearer
Voice › Legacy: Traffic Differentiation split
Circuit
into Packet Switched and Circuit
Domain Switched
2G/3G RAN
Packet
Domain

Internet Access
PS Bearer › LTE: Traffic Differentiation in Packet
Switched
– Up to 8 simultaneous bearers per user
with different QoS classes
– Optimized in advanced scheduler
implementations
– Managed and monitored by operator
LTE RAN
Packet
Domain

Voice or TV
Internet Access
PS Bearers

13
LTE Webinar

Bob Gessel
VP, Head of Technology
Strategy, North America
Broadband Market Forecast
North America
Broadband Subscribers

350,000

300,000

250,000
Other (e.g. FWA, Wimax, satellite)
Thousands

200,000 Mobile broadband

FTTH/B
150,000 Cable modem
DSL

100,000

50,000

-
2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Ovum Broadband forecast pack: 2009–14, June 2009

Fixed Access is Churning to Higher Speed, Mobile Broadband is Organic Growth

15
Multiple Pressures Shaping Future

LTE
LTE Trends
Trends In
In
Capabilities
Capabilities Adjacent
Adjacent
Industries
Industries

LTE
LTE New
New LTE
LTE Competitor ’s
Competitor’s
Economics
Economics Experiences
Experiences Actions
Actions

Device
Device Application
Application
Availability
Availability &
& Evolution
Evolution
Proliferation
Proliferation

Each Operator Must Position According to the Strength of the Pressures

16
Revenue Growth CHALLENGE
n s
io ud
at o try
t om Cl m e
Au & ele
Enterprise
Enterprise &
& Device
Device driven
driven e als
rs
,T
Revenue or Connections x ARPU

m ti c
o r a
“thousands
“thousands of
of verticals”
verticals” H Ve C .
2 M, r Elec
M e
sum
Co n
ules
100% Population Penetration Market Embedded Mod
Inflection

Personal Devices
Or
People

Communication
Communication driven
driven
“Single
“Single vertical”
vertical”

Time
Now 2012 2020
Illustrative Purposes Only
50 Billion Connected Devices by 2020
17
 Towards 50 Billion Connected Devices
Connected Devices 2020
50,000

45,000
Other Niche Connected Devices, not M2M
40,000
M2M
Millions of Devices

35,000 Broadband Modems

*
WiFi Home Connected Devices
30,000
Enterprise DSL Subscriptions
25,000 Enterprise Switched Access Connections

20,000 Consumer Switched Access Connections

Consumer PC Connections
15,000
Digital TV Connections
10,000 Mobile Consumer Electronics
Cellular Wireless Modems
5,000
Ultra-Mobile Devices
0
Wireless Handsets
20

20

20

20

20

20

20

20

20

20

20

20
09

10

11

12

13

14

15

16

17

18

19

20
* This Category Includes:
• Computing
• Handsets
• TV
• Gaming
• Audio
• Imaging
Source: Ericsson, ABI, Yankee Group, Strategy Analytics, Berg Insight

18
 Device Type Impact on Data Growth
Mobile Network Data Traffic By Device Type North America

6,000.0

5,000.0
Petabytes (1000 GB)

Consumer
4,000.0
Electronics (PB)
Embedded
3,000.0
Computing (PB)
Modems and
2,000.0 Routers (PB)
Handsets (PB)
1,000.0

0.0
2008 2009 2010 2011 2012 2013 2014

Source: ABI Research

While a Smaller % in Numbers, Embedded Computing Drives Data Growth

19
 Mobile Data Growth Dominated by Web/OTT + Video
Mobile Network Data Traffic by Traffic Type North America
Video and Internet Dominate
6,000.0 Management & Optimization
Strategies Important

5,000.0
Petabytes (1000 GB)

4,000.0 Web/Internet (PB)

VoIP (PB)
*
3,000.0 Video Streaming/TV (PB)
P2P (PB)
*
2,000.0 Audio Streaming (PB)

1,000.0

0.0
2008 2009 2010 2011 2012 2013 2014

* Mobile P2P and VoIP do not register on this scale

Source: ABI Research 2009

Near-term Need to Address OTT and Video Solution Strategies

20
3GPP LTE Performance Targets

› High data rates

– Downlink: >100 Mbps
– Uplink: >50 Mbps
– Cell-edge data rates
2-3 x HSPA Rel. 6

› Low delay/latency
– User plane RTT: <10 ms
– Channel set-up: <100 ms

› High spectral efficiency

– Targeting 3 X HSPA Rel. 6

› High Performance Broadcast services

Target Services to Leverage the Characteristics

21
Key LTE Advantages: Speed, Latency
Other Advantages Inherent in Architecture

ILLUSTRATIVE
› Technically, near-mid term applications

3GPP R8 (<X msec)

High Perf VGA-quality
could be delivered via HSPA PTT Video Chat
Wireless DSL
– “Long format” video streaming at
Monitoring PC-quality
moderate bitrates Low Apps Online
Latency 3D Nav
– Wireless broadband that is competitive M2M
Gaming

with existing wired broadband

Alt TV
Proximity Experience
› End-user experience and/or economics Couponing
QVGA VGA Video
of the service improves greatly with R8 Video
CE
(LTE in particular), making them more

3GPP R6 (X msec)
Full Video DL
Rural BB Devices (VOD/PPV)
practical to deploy Home
Full Web surveillance
› All-IP facilitates enabling converged Experience
services lowering cost of core network Latency
Mass Market
Streaming Home Media
› Improved cell-edge performance Music Sharing

improves customer experience

3GPP R6 (7.2 Mbps) 3GPP R8 (43 Mbps)
› High spectral efficiency enables more
users to be served within a constrained Peak Downlink Bandwidth *
amount of spectrum * Key assumptions: HSDPA R6 in a 5 MHz carrier; LTE in a 5 MHz carrier

22
Interest in Future Mobile Services
Highlights Demand for Mobile Extensions of the Familiar PC Experiences
Positioning Service (Like Gps) 39%

Automatic Mobile Phone Backup Service 36%

Current Availability 34%

Access To Home Computer 31%

Sharing Pictures/Live Videos/Video Telephone Calls 30%

Instant Product Info 29%

Email 29%

Information Search 28%

Mobile TV 28%

Mobile Browsing of The Internet 26%

Small Payment Service 26%

Tickets In Your Mobile Phone 26%

Storage/Saving Of Material On Network 26%

Access to Instant messaging e.g.MSN Chat 20%

Access to communities e.g. Facebook, Myspace 19% HUGE GROWTH

Access To Blogs 17%
Source: Global Infocom study 2008

Interesting Services where LTE Can Have An Obvious Impact

23
LTE Applications
End-to-end
End-to-end Video
Video and
and Internet
Internet Apps
Apps
are
are extremely
extremely important
important

LTE Business Case Device Roadmap – July 2009

Traditional Applications Move Forward into LTE, Video and Internet Most Important

24
Connected Lifestyles 2.0
City, State Rich Home Key
Social Caregiver Delivery Corporate Telco TV
School, Comms Automation Retail &
Nets Services Services Apps Services Video
Gov’t Services & Security Online

“Connected Lifestyle 2.0”

50B Device Connections

by 2020

Connected
Connected Connected Devices,
Family Connected Connected
Life Machines,
Friends Work Citizen
Services Home, Car

Connection Persona

25
Connected Home, Family
Info & Services Channels

Home Mobile

Family

Steve Louise
Common or Personal View

Marie

Mark

Active Address Connected

E-mail SMS/MMS Calendar Book Voicemail Home Social Nets
Communication Channels

26
 OTT Video Growth Across All Networks

Large Usage, but small # of minutes

Small but growing, BW and

Devices Will Evolve

Est. 80% of iPhone mobile data is video download today

Revenue Models Will Evolve, Operators Need To Position With Smart Pipes (LTE) to Monetize

27
 TV Over LTE
› LTE has the throughput characteristics to provide TV services, but network build-
out, network dimensioning and service penetration need to be considered
› Focus on mobility aspect – start with laptops and netbooks, evolve to mobiles
› Get creative with opportunistic data downloads for VOD services
› Market alternative type services to digital natives who will go elsewhere for their
content anyway
Video Streaming Bandwidth
› Mobile/Nomadic Add-on service to subscription TV
6,855

estimated bit rate, kbps

3,047

1,016
508
128 254

Feature QVGA HVGA VGA 720P 1080i

phone

Alternative TV Models Emerge, LTE Adds Capacity And Spectrum Flexibility

28
High Quality Communications Services
LTE’s High Bandwidth Low Latency, Lower Cost/Bit characteristics enable
a new generation of High Quality rich communication services
› Rich Communications Services
› Video Share 2.0/3.0
› MMtel & Mass Rich Media and Video Calling
› HQ Voice (AMR-WB or beyond)
› Real-time Video Gaming With Built-in Communications Support
› Opportunistic Data Applications, leveraging low cost bits
› Content delivery in off-peak and low utilization bandwidth conditions
– Alternate TV Models Emerge
– Education Training Content Distribution
– Digital Signage
– UGC Upload/Download
– Home Network Synch to remote devices
– In-car downloads (VOD)
› Ultra Mash-Ups
– Multiple apps/widgets combined for a new experience enabled by bandwidth availability
– Ericsson bio-sensor demo

Superior, Personal Multimedia Experience Anywhere, Anytime

29
 Subscription Tiers Scenario
› Service revenue structure is based on subscription tiers based on capabilities plus value
add services.
› Lower ARPU tiers are driven towards off-peak utilization of the network for data hungry
applications

Tiers Example: Bandwidth

5GB Fair use

level reached New Billing
Billing
period
period
starts

QoS High Latency Voice Grade Low Latency “7.2” Mbps limit

1 GB Lowest $Tier 40% 40% Experienced Average

Throughput even with
5 GB 40% 40% 40% congestion at times

20 GB 40% 40% 40%

100 GB 40% 40% 40%
Value add Internet centric; Realtime requirements; Ultra fast response;
capabilities surfing, ftp, file push, VoIP, handoff, Gaming, M2M
transactions (POS, etc..)

Future Services Need to be Assesed Relative to Bandwidth and Performance Needs

30
Converting Trends into Growth Opportunities

Imperative Major Impact Strategy

Establish
Establish End-
End -to-
to-end Innovation
End-to-end Innovation
LTE
LTE Ecosystem
Ecosystem More
More Digital
Digital Creation
Creation And
And Management
Management
Diversification
Diversification And Consumption
And Consumption
Innovate
Innovate In
In Business
Business Models
Models

OPEX
OPEX Reduction
Reduction Increased
Increased BWBW && Capacity
Capacity
Data
Data Growth
Growth & & Data
Data Plan
Plan Flexibility
Flexibility New
New Subscription
Subscription models
models
Subscription
Subscription QoS
QoS Pay
Pay for
for Performance
Performance & & Capacity
Capacity
Video
Video Stresses Limits
Stresses Limits

Innovate
Innovate in
in Smart
Smart Pipes
Pipes
Apps
Apps Drive
Drive Data
Data Plas
Plas TV/Video
TV/Video Differentiate
Differentiate Experience
Experience
Application
Application Evolution
Evolution Push Limits
Push Limits Prepare
Prepare for
for Increasing
Increasing
Bandwidth
Bandwidth && Diversity
Diversity in
in Apps
Apps

31
 Moderator:
Dr. Philip Marshall, Senior Research Fellow, Technology
Research, Yankee Group
Speakers:
Nishant Batra, Senior Director, Wireless Solution Sales,
Ericsson Inc.
Bob Gessel, Head of Network and Technology Strategy –
North America, Ericsson Inc.

ATIS Webinar: Realizing the Benefits of LTE
October 13, 2009
Save the Date for the ATIS Technology Conference at SUPERCOMM 2009!
During the two-day Conference, senior industry executives will examine
how IPTV, LTE and Service Oriented Networks will impact the
communications’ ecosystem status-quo.

To learn more, visit www.atis.org/supercomm

ATIS Webinar: Realizing the Benefits of LTE
October 13, 2009