Wireless Broadband Technology Drivers and Choices

OPASTCO 2008 Technical and Marketing Symposium

Howard J Sears Senior Wireless Technology Consultant CTO Office US Strategic Accounts howard.j.sears@alcatel-lucent.com (804)334-0151

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Agenda

1. Wireless Market - Drivers and Trends 2. Technology - Evolution, Key Drivers, and Performance 3. Business Drivers and Current Wireless Landscape 4. Technology Comparisons 5. Backhaul 6. Generic Network Architectures

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Wireless Market - Drivers and Trends

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Wireless Market Trends / Drivers

Global Subscriber Growth (CAGR=8%)
4,000 3,500
Subscribers Millions
Wireless Subscribers

Market evidence shows 4 clear trends:

increasing Subscribers worldwide increasing Network Usage (Voice minutes & Data traffic) increasing Bandwidth / Frequency increasing Dependence on wireless networks, by individuals enterpriseemerging industries, ALL requiring different business models

3,000 2,500 2,000 1,500 1,000 500

2006 2007 2008 2009 2010

Source: Pyramid Research

CAGR 2006-10 (Source: Ovum

Research, CIBC) SMS & MMS Mobile TV, Video, Music 3G handsets Mobile emails 98% 55% 50% 43%

The global wireless market is set to continue with solid subscriber growth & a substantial increase in mobile data application usage
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Wireless Industry Trends Proliferation Terminals Mobile Multimedia Applications Social Networking Web 2.0/Pervasive

Bandwidth Revenues TCO CAPEX

Increased Network Bandwidth & Cost-Efficiency (TCO) Key and must be managed properly in order to match end-user expectations, while managing expected Revenues
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Technology - Evolution, Key Drivers, and Performance

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Technology Evolution - Required to Meet Market Demand

Mobile Market Trends

Bandwidth Hungry Applications (Real-time, Interactive, High Resolution) Context Awareness & Personalization Social Networking & Content Sharing Immediacy Wireless/Wireline Convergence

Technology Requirements
Higher data rates & spectral efficiency Improved OFDMA air-interface Reduced latency Flatter IP networks Seamless handover between various wireless technologies Support a range of cell deployment scenarios MIMO antennas

Next Generation Next Generation Wireless (4G) Wireless (4G)

100 Mbps speed 100 Mbps speed Full mobility Full mobility Any network Any network Any terminal Any terminal All-IP All-IP QoS control QoS control High QoE High QoE

As bandwidth becomes ever faster and cheaper, ubiquitous broadband coverage becomes a reality
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Next-generation technologies all rely on similar standards/techniques

More Mobile

WiMAX 802.16e-2005 WiMAX enhanced

IP Transport OFDM All-IP MIMO

CDMA2000 EV-DO Rev.A

IP Transport

More Broadband OFDM

UMB
All-IP MIMO

GSM/ EDGE, HSPA, HSPA+

IP Transport

More Broadband OFDM

LTE
All-IP MIMO

OFDM, IP, MIMO are vital components of any next-generation technology..

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All Delivering Similar Speed and Performance

1000 Mbps 100 Mbps

Today Peak rate doubles every year

UMB LTE WiMAX TDD/FDD

WiMAX TDD HSPA+ 1xEVDO 1xEVDO

Rev. B

10 Mbps

1xEVDO
1 Mbps
Rev. 0

Rev. A

HSDPA UMTS Alcatel-Lucent wireless portfolio supports all mobile broadband evolution paths

EDGE GPRS CDMA 2000

100 Kbps

CDMA 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

10 Kbps

Peak rates are the maximum under a perfect RF condition. Actual rates may be much lower depending on RF conditions

As bandwidth becomes ever faster and cheaper, ubiquitous broadband coverage becomes a reality
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 And Provide Similar Improvements in Spectral Efficiency

Spectral Efficiency in bits/s/Hz

2.0 Bits/ S/Hz

Today

1.5 Bits/ S/Hz

Average spectral efficiency doubles every two years and 3 months

Multiple Antenna Solutions WiMAX TDD HSDPA 1xEVDO Rev. A

UMB LTE WiMAX TDD/FDD

1.0 Bits/ S/Hz

HSPA+ 1xEVDO
Rev. B

0.5 Bits/ S/Hz

GPRS CDMA

EDGE UMTS CDMA2000

Conventional Solutions

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Whatever technology choice , You need to have a vendor that can provide the network intelligence, performance, speed and throughput required to deliver next generation, high speed mobile data services
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Business Drivers and Current Wireless Landscape

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Key Attributes Driving Operators Technology Choice

Sensitivity Analysis on Operator Business Case Implications
Ecosystem:
Applications/Content Devices (Diversity, Availability & Pricing)

Mature ecosystem will take 2+ years to develop. Understanding peer Operators decision is critical for Roaming. Inter-working within Standards may be more tightly integrated. Efficient spectrum needed, requiring less cell sites.
. .

Roaming / Inter-working
Partnership to provide adequate coverage/Inter-working with existing network and subscriber base

Adequacy with Spectrum

Availability/Frequency (No. of Cell-sites)

Time to Market Infrastructure CapEx & Capacity

Follower vs. Leader strategy manages risk and ensures stable ecosystem. Migration strategy to NG technology vs. fork-lift upgrades.

While technology is important, a developed eco-system is crucial for success.

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Major North American Wireless Operator Landscape (Current View)

Size of Bubble = # of subs Advanced

Operator

Technology Deployed
GSM, GPRS/EDGE UMTS, HSDPA (HSUPA currently deploying on PCS Spectrum) CDMA IS-95 CDMA2000 1X & DOrA

Future 4G Technology Strategy

LTE; Lower 700MHz & AWS spectrum LTE; Upper 700MHz and AWS spectrum WiMax TDD in 2.5 GHz BRS & EBS spectrum (95% of all licenses with Clearwire Partnership) Unknown

Services

iDEN CDMA IS-95 CDMA2000 1X & DOrA GSM, GPRS EDGE (HSPA currently deploying on AWS Spectrum) GSM, GPRS CDMA IS-95 CDMA2000 1X & DOr0

LTE; Pending Sale to Verizon

Basic

CDMA IS-95
10 20 30 40 50 60 70 80

CDMA2000 1X & DOr0

Unknown; AWS Spectrum

Average Spectrum Holdings (MHz)

The top 3 Wireless Operators will deploy next generation wireless technologies in new spectrum Smaller operators will need to follow the lead of the larger operators
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CDMA IS-95 CDMA2000 1X & DOr0 CDMA IS-95 CDMA2000 1X & DOr0

Unknown; AWS spectrum

Unknown; AWS spectrum

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Technology Comparisons

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Technology Comparisons
Standard Family Radio Tech Downlink Peak (Mbit/s) Uplink Peak (Mbit/s) Notes

802.16e

WiMAX*

MIMO-SOFDMA

70

70

Quoted speeds only achievable at very short ranges, more practically 10 Mbit/s at 10 km. 3GPP Rel 99 HSDPA widely deployed. Typical downlink rates today 12 Mbit/s, ~200 kbit/s uplink Only requires 5MHz of spectrum

EDGE UMTS W-CDMA

GSM

TDMA/FDD

0.53 2

0.21 0.385

CDMA/FDD HSPA UMTS/3GSM 14.4 5.76

HSPA+

CDMA/FDD/MIMO OFDMA/MIMO /SC-FDMA CDMA

42

22

LTE

UMTS/GSM

>300

>80

LTE-Advanced update to offer over 1 Gbit/s speeds.

1xRTT EV-DO 1x Rev. 0 EV-DO 1x Rev.A

CDMA2000

0.614 2.45 3.07

0.153 0.153 1.8

Succeeded by EV-DO

CDMA2000

CDMA/FDD

Currently being deployed throughout the US. N is the number of 1.25 MHz chunks of spectrum used. Not yet deployed.

EV-DO Rev.B

4.9xN

1.8xN

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Last but not less Backhaul

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Mobile Backhaul Vision: Mobile Evolution Transport Architecture (META)

End-to-end services and network integration

Enabling the profitable evolution from TDM to all-IP transport

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Generic Network Architectures

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UMTS Solution Architecture

UMTS Network Architecture

WMS XMC

CORE
circuit voice
O O

NodeB UE Uu

RNC ATM / IP

WCS
Iu-CS /WCS

PSTN

MGW

Iu-PS

HLR

UE

NodeB
O

Gn

GGSN

Gi

IP

SGSN

UTRAN
W-CDMA Air Interface Fundamentals 5 MHz carriers. Data/voice on same carrier. High Speed Downlink Packet Access (HSDPA) High Speed Uplink Packet Access (HSUPA)
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packet data

Internet

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CDMA2000 1X & 1xEV-DO Solution Architecture

EV-DO Access Network
MLS Channelized DS3 DO RNC Wireless IP GigE
(PCF)

RAN

Core

T1

Transport Network and DACS

Network

PM Client

1X&DO BTS

OMP FX/ OMCOMC -RAN

4401

RCS AP & OA&M Proxy

MC

OA&M Network

IP Network

AAA
O

PDSN LTDU

PSC

1X Access Network

PSTN/ PLMN

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DHCP

DNS

Transport Network and DACS

T1 T1

MM C

WiMAX Solution Architecture WiMAX Network Architecture

Billing Center

9710 C-WBS / 9715 L2-WBS Indoor

O&MC
HSS / AAA AAA server Server

WiMAX RAN
Ethernet

WAC WiMAX Access Control

Services
9700 M-WBS Outdoor
HA

RAN CORE
INTERNET Service Edge Packet Session Border Gate

NGN VoIP PSTN PLMN MGW

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UMTS-LTE Solution Architecture

Add LTE to the existing network by leveraging current BTS Investment & common backhaul. Add SGW/PDN GW to SR, Add MME to SGSN. Share Common IMS.
IMS
HSS CSCF *MSC SGSN GGSN PCRF MGW MGCF

MSC

ALU 7750 PDN GW ALU 7750 SR SGW

MME

MRF

CORE

Opportunities to Share HW/SW Platforms & Services

Time-to-Market Advantage Transition Flexibility RF and Footprint Investment Protection Backhaul 4G Ready Now Investment Protection Common IMS services

UTRAN

RAN
UTRAN + eNodeB
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eNodeB LTE-RAN

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Network Evolution to Mass Broadband

Universal solution serving all end users needs in high-growth economies
Wireless multi-standard access
GPRS/EDGE/1xRTT Backhauling Metro aggregation
ALU 9900 WNG Detector

nt anageme r data m Subcribe

8650/8750 SDM 8660 Data grid

META/TPSDA

3G HSPA/EvDO
9400 AWY/9500 MPR

MTSO
Microwave
9500 MPR

8610 suite

Microwave packet ring

9900 WNG Network Guardian 8750 SSC

IPTV

9500 MPR

BSC MFS
A9130

MULTICORE
Option: IMS core and applications 5060 WCS (GSM/UMTS)
5060 ICS (POTS, VoIP, etc.) TV head end

Hosted 6020 Cross Media: 5920 Multimedia Content Manager MiTV, VoD 5930 Interactive Ad selection Media Manager

7705 SAR

RNC
1850 TSS-3/ 1850 TSS-5 7710 SR/ 7450ESS
A9370

7500 SGSN 7549 WMG 7510 MGW

5910 Video Streaming Ad selection server Videophony

5910 Mobile Interactive TV

IP/MPLS And optical core

7500 GGSN

SDE network
Enterprise LAN/WAN

Affordable broadband

WiMAX
ADSL/ ADSL2+

7705 SAR/ 7450 ESS

IP/MPLS
7750 SR/ 7450ESS 7710 SR/ 7450 ESS 9740 WAC

Home agent

1675 1850 LU MSS/ 1678 MCC TSS BSR (7750 SR)

Video RBT Multimedia IM 5430 MIM

Copper Urban with copper

VDSL2/ ADSL2+

7302 ISAM 1540 Litespan

Mobility: 5420 VCC Enterprise VPN:5430 ECN 5100 messaging suite c-VoIP 5420 CTS PCM Mobile e-mail with RIM 5620 Service Presence and Aware Visual address book Manager voice mail 5410 presence, XDMS

7330 FTTN Street Cabinet

Central office Fiber

7342 ISAM FTTU OMSN + ISA-ES

Hybrid optical/packet T-MPLS

1850 TSS DMX

1850 TSS

PSTN

Greenfield areas
GPON Ethernet GPON ONT

IP COM

FTTH/FTTB optical splitter

Wireline access
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End-to-end network and services integration End- to-

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Questions?

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www.alcatel-lucent.com

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