cmd2011 - joachim horn - network operations
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Capital Markets Day 2011
Network OperationsJoachim Horn
2
Tele2’s Infrastructure across Europe and Eurasia
+ 16 000 GSM (2G) sites
+ 9 000 UMTS (3G) sites
+ 700 LTE (4G) sites
70 Mobile switches
50 Fixed switches
+ 20 000 km fiber
+ 20 000 Transmission Equipment
+ 30 000 Routers
3
Netherlands
Kazakhstan
Russia
Norway
Croatia
Lithuania
Latvia
Estonia
Sweden *
Strategy2600 Mhz2100 Mhz1800 Mhz900 Mhz800 Mhz
Tele2’s Frequency Portfolio
2G
3G
4G***
20 20 20 40
11
11
11,2
5
5
11
1-2
5
15-20
12
24,2
24,8
16 15**
20
20
15
15
20
20
20 2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
2G, 4G
2G, 3G
4G
Tech neutral
20
*** some regions** Estonia also has 5 Mhz TDD
* Share portfolio in Joint Ventures with Telia 900/2100 and Telenor 800/1800/2600
4
Mobile Data Evolution Progressing for All Standards
EDGEDL: 474 kbpsUL: 474 kbps
Evolved EdgeDL: 1,89 MbpsUL:947 kbps
HSPADL: 14.4 MbpsUL:5.76Mbps
In 5 MHz
Rel 7 HSPA+DL: 28 MbpsUL:11.5Mbps
In 5 MHz
Rel 8 HSPA+DL: 42 MbpsUL:11.5Mbps
In 5 MHz
Rel 8 HSPA+DL: 84 MbpsUL:23MbpsIn 10 MHz
LTEDL: 326 MbpsUL: 86 Mbps
In 20 MHz
LTE(Rel 9)
LTE advancedDL: > 1 Gbps
0132006 2009 2010 2011 2012 2013
2G
3G
4G
5
2G Data Grows More than 5x in One Year
>5x
Throughput Sweden 2G (Mbit/s)
6
GSM Traffic to Grow by 2.6x in Five Years
Sou
rce:
Nok
ia S
iem
ens
Net
wor
ks G
SM
traf
fic fo
reca
st, J
une
2011
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
2
4
6
8DataVoice
Global GSM Traffic
Exa
Byt
es /
Ann
ual
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20150
2
4
6GSM GPRS
EDGE
GSM Subscriptions by Technology
Bill
ions
Data traffic is expected to exceed voice traffic by 2013. 6x data traffic growth dominated by smart devices. 40% increase in voice traffic driven by end user pricing. Subscription growth is driven by M2M segment.
7
Current EDGE Systems have Greatly Improved End-User Performance and Network Efficiency
Sou
rce:
Eric
ssonLatency ...
0
100
200
300
400
500
600
700
User bit ...0
50
100
150
200
250
Web down-load time
(sec)
0
10
20
30
40
50
60
GPRS EDGE1st release
EDGEState of the art
Typical live network
performance indicators and
application performance
8
There is still Potential: EDGE Evolution
Sou
rce:
Eric
sson
, Nok
ia S
iem
ens
Net
wor
ks
0
200
400
600
800
1000
Peak
bit-
rate
s (kb
ps)
Downlink Dual Carrier (DLDC) can be achieved with SW upgrade to legacy EDGE BTS’s
Further improvements might need HW upgrade in legacy BTS’s
9
20
100
200
300
Tera
byte
(TB
)Data Consumption in Sweden Grows Substantially
10
HSPA: Continuous Evolution of Peak Data Rates ahead
Sou
rce:
Nok
ia S
iem
ens
Net
wor
ks
Release 11+
14 Mbps
28 Mbps
42 Mbps
84 Mbps
168 Mbps
336 – 672 Mbps
40 MHz2x2 / 4x4 MIMO
20 MHz2x2 MIMO
10 MHz2x2 MIMO
10 MHzNo MIMO5 MHz
2x2 MIMO5 MHz No MIMO
Release 5Release 7
Release 8
Release 9
Release 10
Dow
nlin
k
5,76 Mbps
11.52 Mbps
23 Mbps
70 Mbps
10 MHz64 QAMMIMO10 MHz
16QAM5 MHz16QAM5 MHz
QPSK
Release 6Release 7
Release 9
Release 11+
Upl
ink
11
Transition to LTE Offers Improved Customer Experience, Scale & Economy
LTE’s strengths (vs. HSPA+) Freq. span 700 MHz→ 2.6 GHz
3G HSPA HSPA+ LTE0
20
40
60
80
100
120
140
160
180Latency (ms)
- 87%
UMTS Release
Downlink SpeedUplink Speed (Mbps)5 MHz 10 MHz 20 MHz
R6 HSPA 14.4 - - 5.76
R7 HSPA+ 21.6 - - 11.5
R7 HSPA+2x2 MIMO 28.8 - - 11.5
R8 LTE2x2 MIMO 43 86 173 58
R8 LTE4x4 MIMO 82 163 326 86
Peak Throughput (Mbps)
Sou
rce:
Cap
gem
ini T
ME
Stra
tegy
Lab
Ana
lysi
s; M
otor
ola
Whi
tepa
per,
Upg
rade
Stra
tegi
es fo
r Mas
s M
arke
t Mob
ile B
road
band
, 200
9;
3G A
mer
icas
, HS
PA to
LTE
Adv
ance
d, S
epte
mbe
r 200
9; M
orga
n S
tanl
ey R
esea
rch
12
Much Higher Efficiencies will be Achieved:
Sou
rce:
Cap
gem
ini T
ME
Stra
tegy
Lab
Ana
lysi
s; M
otor
ola
Whi
tepa
per,
Upg
rade
Stra
tegi
es fo
r Mas
s M
arke
t Mob
ile B
road
band
, 200
9;
3G A
mer
icas
, HS
PA to
LTE
Adv
ance
d, S
epte
mbe
r 200
9; M
orga
n S
tanl
ey R
esea
rch
3G HSPA HSPA+ LTE0
10
20
30
40
50
60
70
80
90
100
Relative Cost per bit of Transmitted Data
HSDPA HSPA+ 2x2
Mimo
HSPA+, SIC,
64 QAM
LTE 2x2
MIMO
LTE 4x2
MIMO
LTE 4x4
MIMO
0
0.5
1
1.5
2
2.5
Downlink Spectral Efficiency (bits/sec/Hz/sector)
13
800-900 MHz Offer Significant Coverage Advantages
Sou
rce:
Kim
Kyl
lesb
ech
Lars
en, 4
G W
orld
Chi
na 2
011,
May
20t
h, 2
011,
Bei
jing
800 MHz2.6 GHz
x9 x6 x4.5 x12.6 GHz 2.1 GHz 1.8 GHz 900 MHz – 800 MHz
Very small Large
UL power (typical limitation for coverage)
DL power
Coverage area
14
Current Technologies Give Maximum Flexibility in Broadband Upgrade PathExample of Refarming Strategies
10 MHzLTE = 1.2 MHz= 6 GSM carriers
LTE = 2.8 MHz= 14 GSM carriers
LTE = 4.6 MHz= 23 GSM carriers
LTE Refarming Example for 1800 MHz
Choice of GSM/HSPA/LTE defined by software download (same frequency band)
Scalable bandwidth of LTE allows spectrum migration in line with capacity requirements
15
Technology Roadmap – 3G and 4G H1 2010 H2 2010 2012H1 2011 H2 2011 2013
3G 210028 Mbps
3G 210042 Mbps*
4G 900 80 Mbps
4G300 Mbps
3G 210028 Mbps
3G 210042 Mbps
4G 900Commercial
modems
4G 900/2600Commercial
routers
Available Planned Indicative
3G Network
4G Network
3G Devices
4G Devices
Coverage & capacity roll-out
Coverage & capacity roll-out
4G 2600160 Mbps
4G 2600Pre release
modems
4G 2600Commercial
modems
4GCommercial
handsets4G
300 Mbps
Tele2 Sweden
16
High Level Tele2 IT Road Map Leveraging Group Synergies
2011 2012 2013 2014 2015
SWE: MBB SWE: Residential
mobile
SWE: Businessmobile
SWE: Fixed
Market Area Nordic:• Overhaul of billing
systems• Converged CRM
solution
Market Area Central:• Converged CRM• Billing systemCroatia:
CRM only Latvia Lithuania Estonia Croatia
B2B billing Financial System
Market Area Russia:• B2B CRM solution• B2B Billing system
NL: Mobile residential NL: Fixed residential NL: Business
SWE: Online charging
Tele2 Group:• New enterprise data
warehouse platform• Global HR system
HR solution EnterpriseData Warehouse
SWE: prepaidBuckets data& mms
HR< LV&EEPrepaid buckets
data & MMS
basis for group wide use
Netherlands:• CRM Solution
17
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