Alcatel-Lucent LTE RAN Value Proposition

January, 2012

Agenda
1 | Macro Cells Solution 2 | Small cells deployment 3 | lightRadio homogeneous networks 4 | Excellent Field performance 5 | AWS deployments

Agenda
1 | Macro Cells Solution 2 | Small cells deployment 3 | lightRadio homogeneous networks 4 | Excellent Field performance 5 | AWS deployments

Architecture Principle 3 Key Elements

Antenna System
RF Cable

Cross Polar Antennas

Radio Units

RRH (Remote Radio Head) or TRDU (Tx/Rx Duplex Unit)

Optical Fiber

Base Band Unit

Backhaul

CCM - Core Controller Module CEM - Channel Element Module

Macro Cells Portfolio

Available today for converged/overlay deployment
MC-TRX plug in module TRDU 1x / 2x plug in module RRH Single/Dual PA MC-RRH Single/Dual PA

RF modules

GSM WCDMA LTE

WCDMA LTE

WCDMA LTE

GSM WCDMA LTE

GSM

9926 Digital 2U eNodeB

WCDMA LTE

9412 eNodeB compact 9100 MBI

Distributed
9412 eNodeB compact

9100 MBO

Indoor

Outdoor

LTE product performance validated in world largest commercial networks (Verizon, AT&T..)

Alcatel-Lucent LTE is the second most deployed solution in the world

One of the most field-hardened, highest performing portfolio in the world

ALCATEL-LUCENT BTS SOLUTION RADIOS AND REMOTE RADIO HEADS (PARTIAL LIST)
Band 2.6 GHz Band 7 Nomenclature RRH2x40-26 TRDU2x60-26 TD-RRH2x20-2600 TD-RRH8x5-2600 TD-RRH2x20-2300 RRH2x40-AWS RRH4x40-19 MC-TRX1x60-18 TRDU2x40-08U RRH2x40-08U TRDU2x40-08L RRH2x40-08L TRDU2x40-07PS TRDU2x40-07U RRH2x40-07U RRH2x40-07L Description 2x40 watt RRH 2x60 watt radio module 2x20 watt RRH TD-LTE 8x5 watt RRH TD-LTE 2x20 watt RRH TD-LTE 2x40 watt RRH 4x40 watt RRH 1x60 watt multi-carrier (2G,3G,LTE) radio module 2x40 watt radio module 2x40 watt RRH 2x40 watt radio module 2x40 watt RRH 2x40 watt radio module 2x40 watt radio module 2x40 watt RRH 2x40 watt RRH Availability Current LA4.0 Current Current Current Current LA4.0 LA4.0 LA4.0 LA4.0 LA4.0 Current LA4.0 Current Current Current

2.6 GHz Band 38 2.3 GHz Band 40 AWS 1700/2100 MHz PCS 1900 MHz Band 2 1800 MHz

800 MHz EDD Upper

800 MHz EDD Lower 700 MHz Public Safety Band 14 700MHz Upper Band 13 700MHz Lower Bands 12,17

9926 DIGITAL BASEBAND UNIT HIGHEST CAPACITY MULTI-TECHNOLOGY BBU TODAY

Bandwidth Options All bandwidths from 1.4MHz to 20 MHz All bands from 450Mhz to 2600MHz

1x1, 1x2 SIMO, 2x2 MIMO, 4x4 MIMO Airlink Configurations BPSK, QPSK, 16QAM, 64QAM LTE FDD, TD-LTE

ready

Agenda
1 | Macro Cells Solution 2 | Small cells deployment 3 | lightRadio homogeneous networks 4 | Excellent Field performance 5 | AWS deployments

Why small cells?

Increase Network Capacity/Coverage Additional capacity to address hotspot demands and enhanced radio link quality

Solve the Cell Edge Challenge Improve user experience across the cell, not just centre of the cell

Improve TCO Small Cells provide up to 55% TCO gain over Macro Cells

Bringing the signal closer to users

MACRO-ONLY IS SUB-OPTIMAL SOLUTION Coverage and capacity limitations
OUTDOOR HOT-SPOTS RESIDENTIAL COVERAGE RURAL ACCESS

INDOOR HOT-SPOTS

IN-BUILDING PENETRATION

SMALL CELLS PROVIDE THE NEXT LEAP IN PERFORMANCE (METRO AND FEMTO) Higher capacity Higher spectral efficiency

BETTER QoE

MACRO ONLY
Macrocell layer

MACRO+SMALL CELL

Metrocell layer

LEVERAGE MULTI-LAYERS ENVIRONMENT Applications, network automation (SON, ICIC, etc.), and inherent capacity relief will drive more small cell deployments

SEAMLESS INTERWORKING ACROSS MACRO/SMALL CELLS

INTERFERENCE MANAGEMENT

Enabling the delivery of a differentiated user experience

Femto/Metro Cells portfolio

9361 HOME CELL 9362 ENTREPRISE CELL 9363 METRO CELL INDOOR 9364 METRO CELL OUTDOR

WCDMA 4 to 8 users

WCDMA 8 to 16 users

WCDMA 8 to 32 users
METRO CELL PRODUCT FAMILY

WCDMA 16 to 32 users

INTEGRATED

DISTRIBUTED

Multi-technos 1x2 WCDMA 2x2 LTE 2x2 LTE 8x8 LTE

Agenda
1 | Macro Cells Solution 2 | Small cells deployment 3 | lightRadio homogeneous networks 4 | Excellent Field performance 5 | AWS deployments

lightRadio: Next Generation Radio

Technology Agnostic
Active antennas and MB-RRH RF in all bands 700-2600 MHz SoC-based BBU (2G/3G/LTE)
Co-Creation Partners

Flexible and Scalable

Different deployment options (conventional, clustered or pooled) Virtualization and processing aggregation

Ultra-compact

Near zero footprint BTS New generation cabinets

RADIO INNOVATION

SOFTWARE DEFINED

CLOUD

lightRadio: A new product family

Metro cells

MB-RRH: Multi-Band Remote Radio Head

Controller

lightRadio

Digital Baseband Pooling

...
Cabinets

Typical CALA Scenario LightRadio Current Network

GSM in 850 and/or 1900 UMTS in 850 and/or 1900

XXpol 850/PCS XXpol 850/PCS

RRH 3G 1900 Per sector Per site

RRH 3G 850

GSM 850/ 1900 Macro

UMTS BBU

Legacy 2G BSC Legacy 3G RNC

IP RAN

Typical CALA Scenario LightRadio Ph1: LTE Macro Overlay Introduction

GSM in 850 and/or 1900 UMTS in 850 and/or 1900 LTE introduced in a new band

2012

XXpol 850/PCS XXpol 850/PCS

Xpol New Band

RRH 3G 1900 Per sector Per site

RRH 3G 850

LTE 2x40 RRH AWS

GSM 850/ 1900 Macro

UMTS BBU
d2Uv5

Legacy 2G BSC Legacy 3G RNC

IP RAN

2012/2013 Typical CALA Scenario LightRadio Ph2: Network Densification for Capacity Growth
GSM in 850 and/or 1900 UMTS in 850 and/or 1900 LTE introduced in a new band Metro Cells

XXpol 850/PCS XXpol 850/PCS

Xpol New Band

RRH 3G 1900 Per sector Per site

RRH 3G 850

LTE 2x40 RRH AWS DSL GPON Etc..

GSM 850/ 1900 Macro

UMTS BBU
d2Uv5

Legacy 2G BSC Legacy 3G RNC

IP RAN

2012/2013 Typical CALA Scenario LightRadio Ph2: Network Densification for Capacity Growth
GSM in 850 and/or 1900 UMTS in 850 and/or 1900 LTE introduced in a new band Metro Cells

XXpol 850/PCS

Xpol New Band

LTE 2x40 RRH AWS Per sector Per site DSL GPON Etc..

d2Uv5

LR controller with RNC/BSC/ Small Cell Gateway application

IP RAN

Agenda
1 | Macro Cells Solution 2 | Small cells deployment 3 | lightRadio homogeneous networks 4 | Excellent Field performance 5 | AWS deployments

Fueled with Our Key Technology Differentiators

Bell Labs Innovations

Interference Management
ICIC

FDD and TDD

Common Platform

3G 2G

Advanced Scheduler
Alpha-Fair Scheduler

Loadsharing
eMCTA

All main Frequencies

700MHz, 800MHz, AWS, 2.3GHz, 2.6GHz

Multi-technology RAN LightRadio

LightRadio Cube and SoC
2G and 3G ePC Innovation

MC-TRX, MC-RRH.

LTE-Advanced
COMP, Active Antenna

Small Cells
SNAP, W-CDMA expertise

Intelligent Traffic Management

Going beyond 3GPP (PCMD, WNG)

LTE Scheduler
Channel Status Indicators
(RI/PMI/CQI for DL and SRS for UL)

Power restrictions ICIC restrictions Buffer UL occupancy

Packet Scheduling & Resource Assignment

Link adaptation & Power Control

Selected UEs, BW, MCS, TB size, MIMO mode, PC

UL Scheduling Request QoS Requirements ACK/NACK feedback

HARQ

Basic time-frequency resource unit = Resource Block (RB) (A RB corresponds to 12 sub-carriers in freq (180 KHz) over 1 subframe in time (1ms = 14 OFDM symbols)) The total number of available RBs depends on the bandwidth (from a minimum of 6 PRBs for 1.4 MHz up to a maximum of 100 PRBs for 20 MHz)

LTE Scheduler Functions

Resource Assignment: it allocates air interface resources to selected active users (on per TTI basis) Packet Scheduler: it arbitrates access to air interface resources (on 1ms-TTI basis) amongst all active users Link Adaptation: it selects the optimal combination of parameters, i.e. modulation, channel coding & transmit schemes as a function of the radio conditions Power Control: it not only provides the desired SINR level for achieving the desired data rate, but also a method to control the interference to the neighbouring cells HARQ: it allows recovering from residual errors by link adaptation

Aims to maximise air interface resource usage while minimise interference to neighbouring cells & distribute resources fairly across different users

Alcatel-Lucent unique scheduler design

Alpha fair dynamic scheduler
Advantages over simpler schedulers*
+30% to 60% cell throughput 2x to 40x cell edge throughput 60% more users reaching required QoS Best trade off between fairness & cell throughput Increase max VoIP users per cell +30% to 40% performance

Alpha fair scheduler abilities

UL Fractional Power Control Full QoS (QCI) support Proportional Fair (UL & DL) Multiple Users per TTI (UL & DL) Frequency Selectivity (UL & DL)

ALU

Configurable (alpha) by the Operators on a per cell basis Provides fair resource allocation to users in different RF conditions Best QoS in networks with mixed traffic (eg voice/video and HTTP/FTP traffic)
*Simple schedulers (fixed target SINR) providing good performance under isolated cell / single user drive test scenarios

Agenda
1 | Macro Cells Solution 2 | Small cells deployment 3 | lightRadio homogeneous networks 4 | Excellent Field performance 5 | AWS deployments

Espectros dominantes LTE por regin

Europa: Norte Amrica:
FDD: 700MHz, AWS, 2.6GHz TDD: 2.6GHz (TBD) FDD: 2.6GHz, 1.8GHz, 800MHz FDD TDD: 2.6GHz

Asia:
FDD: 2.1GHz, 2.6GHz, 1.8GHz TDD: 2.3 & 2.6GHz

Latinoamrica
FDD: 700MHz, AWS, 2.6GHz TDD: 2.6GHz

Evolucin del espectro LTE en LATAM

Current Situation Short Term Medium Term

850/1900
850/900/1800*/1900/2100 * : Brazil only

850/900/1800/190 0

AWS 700MHz 2.6GHz TDD: 2.3/2.5

LTE FDD 700MHz to 2.6Ghz Comparison

Urban Environment

UL Data Rate: 128Kbps

2.6 GHz
0.52 Km

AWS
0.71 Km

700 MHz
1.44 Km

Rural Environment

2.6 GHz
3.45 Km

AWS
4.74 Km

700 MHz
9.8 Km

Comparison of quantity of sites required for coverage in DU

x7 sites in 2600 MHz compared to band 700 Mhz

LTE Spectrum Recommendation

AWS/2.6 GHz
Hot spots

700 MHz
Umbrella cells

Smaller cells at AWS/2.6GHz best suited for hot spots 700MHz can be used as umbrella cells 700MHz can be used to provide good indoor coverage 700MHz can be used for rural coverage

700MHz provides very good coverage but is capacity/interference limited (1500 subscribers for BW=10MHz) Reommendation is a combination of both AWS/2.6GHz ideal for hot spot & 700Hz for umbrella cells, indoor and rural coverage

Ecosistema LTE

Realidad de dispositivos mviles LTE entre 2010-2013 Primeros terminales en nuevas bandas

LTE TDD
Band 40 2300 Band TBD 3500 Band TBD 700 APAC Band 38 2600 Band TBD 2500

LTE FDD
Band 7 2600 Band 5 850 Safety band 700 Band TBD 700 APAC Band 13 VZ 700 Band 17 ATT 700 Band 12 700 Band 10 1.7-2.1 Band 4 AWS 3 Band 3 1800 Band 8 900 Band 1 2100 Band 20 800ED Band 2 1900

H22010~2011 2011~2012 2013~2014

Licitacin de Espectro AWS

Banda AWS:
EEUU: banda ya licitada (AT&T, Verizon, COX, T-Mobile) Canada: banda ya licitada Mxico: 30MHz ya licitados (TELCEL, Movistar y Nextel) 2012: licitacin de los 15MHz disponibles Uruguay: banda ya licitada (ANTEL) Argentina, Colombia, Per, Paraguay: 2012 licitacin de la banda

AT&TS Launch of 4G LTE 74M POPS AND 26 MARKETS COVERED TO DATE

26 74

HTC Jetstream Tablet Cost: $ 699 (2 yr contract) USB Connect : Momentum, Adrenaline 4G Device Cost: $50 (2yr contract) Typical plans start at $50 per month for 5 GB of data

Sources: AT&T company data

E2E LTE DEPLOYMENT WITH ANTEL

FIRST COMMERCIAL 4G/LTE NETWORK IN LATIN AMERICA
Launched on December 13, 2011
Contract included: LTE RAN (AWS) IP Backhaul All-IP Wireless Packet Core Converged E2E Management Professional Services

Carolina Cosse, Antels president

Alcatel-Lucents combination of global experience and LTE track record, allow us to bring very high speed mobile broadband services into our subscribers homes and offices, unlocking a wealth of services to enrich their mobile broadband experience,

Alcatel-Lucent leadership in LTE

ONE OF THE MOST FIELD-HARDENED, HIGHEST PERFORMING LTE SOLUTION IN THE WORLD

Cost-effective, scalable and smart 4G LTE networks covering FDD & TDD variants LTE product performance validated in major commercial networks

ALCATEL-LUCENT LTE IS THE SECOND MOST DEPLOYED SOLUTION IN THE WORLD

+26% of 4G LTE eNodeB deployed worldwide is from Alcatel-Lucent* Worlds largest commercial 4G LTE network with Verizon Wireless and AT&T

3
*according to DellOro 3Q11

lightRadio NETWORK NOW DEFINING THE WIRELESS ARCHITECTURE OF THE FUTURE AT MINIMUM COST
Converged 2G, 3G, 4G platform, small/macro cells, invisible footprint, energy efficient, performance optimized lightRadio is advancing LTE-Advanced