Mobile Data Networks – today and tomorrowJørgen Grinnes | Telenor Norway

Agenda

1 Mobile broadband growth

2 Value proposition

3 Today’s network

4 Trends and challenges

5 Tomorrow’s network

6 Timeline

Incredible growth in the mobile broadband market

Source: PT

Telenor estimates after Q209

Mobile broadband: a great value prop

• Plug & play

• Works first time and every time Easy

• Mobile internet throughout the country

• Mobile broadband where people live and holiday Anywhere

• Predictable prices for all segments

• All you can eat – but with fair usage cap’Affordable

• A broadband experiece

• 0,5 – 1,5 mbps Broadband

Telenor offers nationwide internet coverage and broadband where people live and holiday

Coverage

Area >23%

Households >87%

WiFi hot spots >400

Our customers want to use the internet wherever they are. Rich media is growing fast

KONKURRANSEN PRESSER HASTIGHET OPP

TEKST BLIR RIK MEDIADIREKTE TV, ARKIV TV OG VIDEOKONFERANSE

ØKER I BRUK

REKLAME BLIR VIDEO NYE TJENESTER

SOSIALE MEDIER BLIR EN NATURLIG DEL AV HVERDAGEN

VG forside 25/9 2003: 115kB

VG forside 8/10 2008: 1,4MB

Nett-TV, VOD, arkiv-TVVideokonferanser

Tekst, bilde video

?

Tekst, bilde videoSymmertri uplink og nedlink

Tekst, bilde video

GGSNSGSN

GnIuPS Gi

RNCNode B

Iub

HLR

PS CORE

UTRAN

SASN FW

Gi

Gr

Radio

Core

Transmission

OSS

The traffic increase strains all parts of our network

We cannot allow network costs to grow linearly with capacity requirements

Network cost (technology improvements)

Profitability

Voice dominated

Data dominated

Traffic volume

Revenue

Time

Network cost (existing technologies)

– Flexible spectrum usage

– Higher eNodeB capacity

– Flat architecture and IP connectivity

– Theoretical max-speed 160 Mbps

– Practical speeds up to 20-30 Mbps

– Better user experience

– Quicker response times

– Primarily a data carrier for a long time

– Still a shared resource

9

Long Term Evolution (LTE) will become the next mainstream broadband technology

Better user experience

HSPA HSPA+ LTE

Throughput Latency

HSPA HSPA+ LTE

3G HSPA HSPA+ LTE …

Cost per Mbyte

Lower production-cost per bit

Sou

rce:

NS

NS

ourc

e: N

SN

Download speed is a function of the distance to the base station and the number of users in one cell

10 Mbit/s

5 Mbit/s

2 Mbit/s

0.5 Mbit/s

TotalCapacity

10 Mbit/s

2.5 Mbit/s

5 Mbit/s

7.5 Mbit/s

1 Mbit/s

0.5 Mbit/s

0.2 Mbit/s

0.05 Mbit/s

• High poulation density – high density of base stations

• Small cells in urban areas; large cells in rural areas

Deploying LTE for added capacity A gradual add-on in areas with heavy traffic

Source: Ericsson

LTE is not Short Term Evolution

Summary: mobile broadband users want coverage and capacity; they will get it through HSPA and LTE

• Customers are more concerned with coverage than peak data rates

Not just speed

• LTE is the new standard for mobile broadband

• LTE will offer more capacity and less latency

Improved user

experience

• Evolution – not Revolution LTE, not LTR

• Users will be served by many parallel technologies for years to come

3G and LTE side by side