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LTE/SAE – What’s really in it / 15.05.2009 1 © Nokia Siemens Networks
LTE / SAE – What’s really in it?
Michael KrumpeDüsseldorf,15.05.2009
LTE/SAE – What’s really in it / 15.05.2009 2 © Nokia Siemens Networks
Broadband everywhere
Applications predominantly in Internet
Multitude of business
models
Our market vision 2015 – the world connected Major opportunities and challenges for everyone
5 billion people connected
LTE/SAE – What’s really in it / 15.05.2009 3 © Nokia Siemens Networks
General Market and Social Trends
• Wireless industry faces spectrum liberalization
• Subscribers go for predictable communication costs
• Ever increasing device capabilities are moving away from network capabilities
• Green technology for low power consumption
• Minimized changes on sites and antennas
• I&C industry observes a growing trend towards an all-IP architecture
• Operators observe increase in wireless data usage
Device Capabilities
All IP Trends
Spectrum Environmental Aspects
Wireless Data
Flat Rates
IP
€
LTE/SAE – What’s really in it / 15.05.2009 4 © Nokia Siemens Networks
Entering the zeta*-byte era
Mobile data traffic will double each year from now through 2012
* Zeta = 1021
Global IP traffic will double every 2 years through 2012
Global IP traffic
(PB
/mo
nth
)
Mobile broadband traffic
(PB
/mo
nt
h)
Source: CISCO
LTE/SAE – What’s really in it / 15.05.2009 5 © Nokia Siemens Networks
Traffic evolution demands an efficiency boost
>100x data, 2x voice traffic growth
Aging networks
Falling voice ARPU Date revenues compensate on low price/MB
Demanding users
5 Bn people connected
OPEX
Price/ MB
>Internet applications
through mobile
LTE/SAE – What’s really in it / 15.05.2009 6 © Nokia Siemens Networks
Revenue trends do not parallel traffic and cost increases
Source: Light Reading (adapted)
Price per MByte requires low cost/bit technologies to stay profitable
Voice dominated Data dominated
Traffic volume
Revenue
Time
Network cost (required)
Network cost (existing technologies)
Profitability
LTE/SAE – What’s really in it / 15.05.2009 7 © Nokia Siemens Networks
This is where LTE / SAE enters the game …
LTE (Long Term Evolution) designates the evolutionary path of WCDMA / HSPA defined by 3GPP towards the next generation of mobile cellular radio technologies.
SAE (System Architecture Evolution) designates a modified and simplified, all IP based network architecture optimized for packet data transmission.
LTE/SAE – What’s really in it / 15.05.2009 8 © Nokia Siemens Networks
Re-use of• Sites and
infrastructure• Backhauling• Frequency bands
Key benefits for operators and end-user
User experience ARPU
Scalable bandwidthLow cost per Mbyte
Investment Protection
3G HSPA HSPAevo LTE …
Cost per Mbyte Optimized spectrum usage
2006 2008 2010 2012 2014 2016 2018 2020
900 MHz
900 MHz GSM
or
GSM UMTS
LTE
HSPA HSPA LTEevo
Throughput Latency
Low Costs
HSPA HSPA LTEevo
LTE/SAE – What’s really in it / 15.05.2009 9 © Nokia Siemens Networks
3GPP Rel. 8
LTE/SAE4x4 MIMO
UL: 64 QAM
3GPP Rel. 6 3GPP Rel. 7
HSDPA/HSUPA HSPA Evo (step1) HSPA Evo (step2) LTE/SAE2x2 MIMO
UL: 16 QAM
3GPP performance evolution
DL: 4 * 2.5
UL: 4 * 1.5
DL: 14.4 / 10.1
UL: 5.7 / 4.3
Peak rate:gross 3) / CR=3/4 4)
(Mbps)
DL: 36
UL: 18
DL: 173 / 150
UL: 58 / 43.8
DL: 4 * 6.5
UL: 4 * 2
DL: 42 / 35.4
UL: 11.5 / 9.6
DL: 4 * 6.5
UL: 4 * 2
DL: 28 / 23.4
UL: 11.5 / 9.6
Average Capacity:(Mbps/cell) 1)
RTT: 40-60ms
RTT: 10-20msRTT: 25-35ms
25msRTT: 25-35ms
25ms
I-HSPA (Flat Architecture)
DL: 61
UL: 24
DL: 326 /301
UL: 84 / 75.4
RTT: 10-20ms
Average Capacity:(Mbps/cell) 1)
Average Capacity:(Mbps/cell) 1)
Average Capacity:(Mbps/cell) 2)
Average Capacity:(Mbps/cell) 2)
Peak rate:gross 3) / CR=5/6 4)
(Mbps)
Peak rate:gross 3) / CR=5/6 4)
(Mbps)
Peak rate:gross 3) / coded 5)
(Mbps)
Peak rate:gross 3) / coded 5)
(Mbps)
1) HSPA capacity values normalized to 4 carriers (2 * 20MHz in total)2) LTE values according to Nokia and Nokia Siemens Network simulations for NGMN
performance evaluation report V1.33) Un-coded (CR=1) gross bit rate4) Coded data rates acc. to TS 25.306 and TS 25.321 5) Max coded bit rate acc. to TS 36.213
LTE/SAE – What’s really in it / 15.05.2009 10 © Nokia Siemens Networks
High efficiency also at smaller bandwidths
LTELTE
LTE
• Higher spectral efficiency also for smaller bandwidth• Especially useful for low frequency bandwidth refarming
EDGE
HSPA+
1.4 MHz 3 MHz 5 MHz
+200%
+100%
+20%
CDMAEVDO
LTE/SAE – What’s really in it / 15.05.2009 11 © Nokia Siemens Networks
Cost advantages compared to other systems
Due to:
• High radio bandwidth (20MHz compared to e.g. 5MHz)
• Flat IP based network architecture (2 rather than 4 network elements)
• Built-in IP backhaul connectivity (based on Carrier-Ethernet)
• Smooth network & service upgrade(Value proposition of NSN solution: SW upgrade of BTS to eNB)
GGSN
RNC
HSPA R6
= user plane
SGSN
SAE GW
LTE / SAE R8
BTS eNB
LTE/SAE – What’s really in it / 15.05.2009 12 © Nokia Siemens Networks
Flexible spectrum usage
• Diversified frequency bands (700 … 3600 MHz)• Varying bandwidth (1.4 … 20 MHz)• Paired and unpaired spectrum, i.e. FDD and TDD options
Europe
North America
China
Japan
MHz 400 600 1000 1700 27001900 2300 3400 3600
Source: UMTS Forum, internal
25002100800
1111111111111111111111111111111111111111
11111111111111111111
1111111111111111111111111111111111111111
1111111111111111111111111111111111111111
Hot areas of interest for LTE today
LTE/SAE – What’s really in it / 15.05.2009 13 © Nokia Siemens Networks
The Digital Dividend for mobile broadband will bridge the Digital Divide
• Radio signal range @ 800 MHz significantly larger than @ 2100 MHz
• Less cell sites required to achieve area coverage
• Radio networks @ 800 MHz require significantly less investment
0 20% 40% 60% 80% 100%
800 MHz; voice
800 MHz; 1 Mbps
2100 MHz; voice
2100 MHz; 1 Mbps
Cell area (relative), suburban, indoor
Note: figures based on WCDMA as an example
2100 MHz
800 MHz
LTE/SAE – What’s really in it / 15.05.2009 14 © Nokia Siemens Networks
Intensive use of Self Organizing Networks
• Configure & optimize the network automatically• But allow the operator to be the final control instance
• Parallel operation of LTE with 2G and 3G networks• Large number and complex structure
of network parameters• Expanding number of Base Stations• OPEX reduction - Reduce human interaction
LTE/SAE – What’s really in it / 15.05.2009 15 © Nokia Siemens Networks
… but there is more
LTE/SAE – What’s really in it / 15.05.2009 16 © Nokia Siemens Networks
Enhance customer experience and create new value based on NETWORK capabilities
Capture the Internet opportunity – make it mobile
any device
Subscriber data, identity, charging and billing
Traffic optimization, quality of service and policing
Network and service management
any content or application
connected always and everywhere
LTE/SAE – What’s really in it / 15.05.2009 17 © Nokia Siemens Networks
Subscriber data & Identity
New Revenue Potential –monetizing customer data assets
• User profile & context information fortargeted services
• Payment transaction assurance• Operator as Identity Provider
InternetPlayers
Subscriber Data & Identity
Enriched Customer Experience• Single Sign-On:
Simplified, enhanced access• Personalized service provider offerings• Access independence:
‘My services, anywhere’• Increased security (fraud protection, privacy)
EnrichedCustomer
Experience
NewRevenuePotential
LTE/SAE – What’s really in it / 15.05.2009 18 © Nokia Siemens Networks
IMS for enriched IP multimedia services
IP-Transport CSCFPCRF/SPDF
En
rich
ed IP
mu
ltim
edia
ser
vice
s
• Full Multimedia and Rich Communication Services
• Common Session and Policy Control for any access method
• IMS interworking across operators
• Regulatory and standard compliancy
VAS MobileMeeting
Presence
2G/3GRadio Access
LTERadio Access Broadband
SMSC Billing Prepaid O&M LI
LTE/SAE – What’s really in it / 15.05.2009 19 © Nokia Siemens Networks
APIs
Content and applications
Leveraging network assets via ‘Open Telco’ APIs
Unified, horizontal approach beneficial
Multiple potential business strategies
Driving the 3rd party ecosystem
Open Telco APIs
OperatorA
APIs
OperatorB
OperatorC
OperatorD
LTE/SAE – What’s really in it / 15.05.2009 20 © Nokia Siemens Networks
Consumerdevices
USBdongles
EeePC’s, netbooks
Gameconsoles
Smartphones
Idea padsLaptops
& UMPCs
Servicecreation
SecurityUser generated
content & applications
Softwaredevelopment
kits
Open source
OS, UI, browsers
Enterprise users
Consumers
M2M
M2P
Digitalhomes
Back office & enabling systems
Mobiledevices
Mobile network infrastructure
vendors
Applications& content
Other industries
IT
Advertising Automotive
Healthcare
Content
Silicon
Domesticappliances
Testequipment
Verticals
Environmentalawareness
3GPP ecosystem
Mobilenetwork
operators
Mobile Sub-
scribers
LTE / SAE will create new business opportunities and value chains in a dynamic market
LTE/SAE – What’s really in it / 15.05.2009 21 © Nokia Siemens Networks
Leading Mobile Network Operators have expressed their decision for LTE / SAE
LTE ist aus Sicht von Vodafone … die
bevorzugte Technologie für Mobilfunknetze der 4.
Generation. (Hartmut Kremling, Vodafone
Deutschland)
T-Mobile will LTE, sobald es marktreif ist, sofort breit anbieten. (Hamid Akhavan,
T-Mobile)
LTE brings the promise of bringing extra capacity, better spectral efficiency
at an enhanced cost factor. (Jaime Lluch,
Telefonica)
China Mobile, Verizon Wireless and Vodafone Trials Confirm LTE as a
Next Generation Candidate for Seamless Global Mobile Services
Verizon Selects LTE As 4G Wireless Broadband
Direction
LTE/SAE – What’s really in it / 15.05.2009 22 © Nokia Siemens Networks
LTE / SAE is supported by leading CSPs and manufacturer to form a large ecosystem
Many leading mobile network operators have decided to go for LTE / SAE(NGMN alliance)
All leading network manufacturers have their LTE / SAE programs
LTE/SAE – What’s really in it / 15.05.2009 23 © Nokia Siemens Networks
LTE introduction
1st worldwide trialsBerlin, Nov. 2007
Upcoming key technologies
Relaying
MIMO8x
4x
IMT-A / LTE-A
IMT-A
LTE-Advanced: carrier aggregation for optimum spectrum exploitation for highest data rates and diverse spectrum
Global platform for the next
generations of mobile services
Cooperative Systems
BandwidthExtension
IMT-A / LTE-A
LTE/SAE – What’s really in it / 15.05.2009 24 © Nokia Siemens Networks
Nokia Siemens Networks has a strong momentum in the LTE arena
First ever LTE selection - Selected as Radio Access vendor to DoCoMo (in partnership with Panasonic)
Selected Evolved Packet Core vendor to DoCoMo in partnership with Fujitsu
Selected IMS vendor for Verizon Wireless
Successful demonstration on a commercial LTE platform with Vodafone Germany
HSPA Contract with Telus/Bell Canada, to be later upgraded to support LTE
Already delivering LTE ready Flat Architecture - 5 deals including world’s first deal
MIMO/SIMO
DLink
MIMO/SIMO
DLink
Best Technology Advance
Green Network Hardware and InfrastructureWinner 2009
LTE/SAE – What’s really in it / 15.05.2009 25 © Nokia Siemens Networks