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FEBRUARY 2012
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
AGENDA
Market Landscape
Next Generation HetNet
More Choices for Coverage and Capacity
Small Cells Business Cases
Alcatel-Lucent Small Cell Solution Architecture
Small Cell Access Points
Key Features
Small Cell APIs and Application Ecosystem
Small Cells a Major Part of our Mobile Broadband Future
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
406
394
171
118
77
15
iPhone
3
Blackberry
22
Android
Datacard
Source: Alcatel-Lucent analysis of various customer networks using Bell Labs tools
3
COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Play games
Watch videos
250 million
Facebook
mobile subs
2 billion videos
per month
watched on
Facebook
2 billion videos
per day watched
on YouTube
Surf Internet
Watch TV
0%
20%
40%
60%
80%
Outdoor
Hot Spots
Indoor Hotspots
Poor in-building
Penetration RF penetration through
Rural Access
Poor Residential
Coverage
6
COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Do you Experience?
Dropped Calls:
Poor voice quality:
Slow Internet:
Slow email:
16-47%
19-49%
32-72%
21-61%
A good experience
A bad experience
LTE
SHANNON-BOUND
HSDPA
2
EV-DO
-5
+5
+15
Signal-to-noise ratio (dB)
HETNET COORDINATES
WITH MACRO NETORKS
Ubiquitous coverage
Mitigate interference
SMALL CELLS
MORE CHOICES FOR COVERAGE AND CAPACITY
9361
Home Cell
9362
Enterprise
Cell
9362
Enterprise
Cell
9363
Metro Cell
Indoor
9364
Metro Cell
Outdoor
9363
Metro Cell
Outdoor
MS/Wi-Fi
9768 Metro
Radio
Outdoor
9764 Metro
Cell
Outdoor
LTE 2X1W
3G/4G Macro
WiFi
Enterprise Small Cell
Distributed
Antenna
3G/4G Macro
Metro Cell
WiFi Hotspots
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
9764
Metro Cell
Outdoor
LTE 2X5W
$160
$80
$240
($50)
$190
80%
70%
60%
50%
20%
10%
0%
Market Share
Gain (50%)
40%
30%
Positive NPV
90%
Incremental
ARPU (26%)
DPP =
IRR =
NPV =
25
194%
21,595
months
M
Femto fees 3%
Churn
Churn reduction savings/
Reduction
13%
Secured revenue 13%
Macro offload savings (OPEX) 3%
Macro offload savings (CAPEX) 6% Macro Offload
Savings (9%)
Revenue/Savings
Expenses
12
COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
250
200
Enterprise Cells 8 users
Enterprise Cells 16 users
Pico cell
DAS
150
100
50
0
SOHO
SME
Corporate
Source: Bell Labs business modeling Mar 2010
Enterprise Cells, the Most Cost-effective Solution for All Business Sizes
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Year 2
>10 Mb/s
>10 Mb/s
Year 3
90% Coverage
1,200
>10 Mb/s
1,000
800
<10 Mb/s
<10 Mb/s
600
400
<5 Mb/s
<5 Mb/s
<5 Mb/s
200
0
<10 Mb/s
<3 Mb/s
Macro
BTS
OPEX
Metro
Cells
CAPEX
Macro
BTS
Metro
Cells
Macro
BTS
Metro
Cells
<3 Mb/s
<3 Mb/s
<10 Mb/s
<5 Mb/s
Backhaul
YEAR 2
YEAR 3
Source: Bell Labs analysis based on dense urban area using dedicated carrier
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
YEAR 4
GGSN
3GPP
UMTS Core
Network
MSC
Server
HLR
Presence/
Application
Server
SGSN
Small Cell
Management
System
AAA
NTS
IPC
SeGW
9365 BSR
Gateway
SCMS
Motive
HDM
WPS
WMS
3GPP Iuh or Iu
IPSEC Tunnel
Small
Cell
Access
Points
Small Cell
Gateway
9362
Enterprise
Cell
9363
Metro Cell
Indoor
9364
Metro Cell
Outdoor
9764
Metro Cell
Outdoor
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
9361
HOME CELL
W-CDMA
Integrated
omni
directional
antenna
4 to 8 users
9362
ENTERPRISE
CELL
W-CDMA
Integrated or
external omni
directional
antennas
Rx diversity
Small cell net
8 to 32 users
9363 METRO
CELL INDOOR
W-CDMA
Tamper resistant
Integrated or
external omni
directional
antennas
Rx diversity
HSDPA 64 QAM
Small cell net
16 to 32 users
9364 METRO
CELL OUTDOOR
9764
METRO CELL
OUTDOOR
9768
METRO RADIO
OUTDOOR
LTE
Outdoor for indoor
W-CDMA
or outdoor coverage
Outdoor for indoor
W-CDMA
2 integrated
Ruggedized design or outdoor coverage
directional lightRadio
2 integrated
External omni
cube antennas
directional antenna directional lightRadio Distribute BBU
cube antennas
Rx diversity
RX diversity
Integrated BBU
HSDPA 64 QAM
2X2 MIMO
RX diversity
Range 2 KM at
Modular metro dock CPRI
120m/h
Up to macro-like
design
16 to 32 users
capacity daisy
Optional Wi-Fi AP
chaining
Up to 32 users
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ALCATELLUCENT
9361 HOME
CELL SW
TECHNOLOGY
REFERENCE
DESIGN
THIRD
PARTY CPE
VENDOR
HW & SW
HOME CELL
INTEGRATED
RESIDENTIAL
GATEWAYS
FROM 3rd PARTY
CPE VENDOR
17
COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
NETGEAR
9361 HOME CELL
SW ENABLED
HOME GATEWAY
Delivers
Green bandwidth
Reduced network TCO
RF
Box
Metro
Dock
Assembled
Metro Cell
2 integrated directional
MIMO-enabled cross-polarization
for improved RF performance
Provides High Bandwidth to Stadiums, Malls, Convention Centers, Large Enterprises, etc.
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
CPRI
CPRI
daisy
chaining
BBU or
BBU cluster
SGW
PGW
Offers Deployment Flexibility Coupled with Optimized Use of BBU Digital Assets
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
New Business
Models
Market Conditions
9363
Metro Cell
Indoor MS
Smartphone
Popularity
Cellular Data
Growth
Wi-Fi
Popularity
New Opportunities
Integrated Residential
Gateway based on 9361
Home Cell SW Licensing
9764
Metro Cell
Outdoor
Expanded
Capacity
Expanded
Enterprise
Business
Plus
Alcatel-Lucent
Wi-Fi Integrated Small Cells
Reduced TCO with 1 Site Location, 1 Installation, 1 Backhaul and Daisy Chaining
24
COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
MOTIVE HDM
PART OF THE AWARD-WINNING DIGITAL HOME CARE SOLUTUION
IPTV
HSIA
SSC
VoD
Firewall / Security
CSR
CSC
SMP
Application
Lifecycle
Manager
(ALM)
Home
Device
Manager
(HDM)
Activation
Devices
Applications
Services
Home Networking
Security
TR-69
Devices
Other
Devices
Assurance
Network
Analyzer
(5530 NA)
management, including:
zero-touch provisioning
configuration updates
software upgrades
problem diagnosis & troubleshooting
Support
Call Center
Operations
Marketing
Maintenance
Proven solution
Over 80 global customer references
More than 40 million CPE under
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
management
Integration
Optimization
Continuous
optimization
Site acceptance
Self-configuration
Plug & Play
Automatic Neighbor
Relation
Reduced
Handover Failure
Interference
Management
Painless Network
Densification
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COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Load Balancing
Optimized
Resource Usage &
Improved QoE
OAM
Handover
Optimization
Minimized
Call Drops
SECURITY
THREE LAYERS OF SECURITY
3GPP W-CDMA Network
3GPP subscriber authentication
3GPP ciphering for air interface
security
SMALL CELLS
FOR DEDICATED AND SHARED CARRIER DEPLOYMENT
INTERFERENCE MANAGEMENT
Automatic power control
Increased innovation
Carrier #1 (macro)
Carrier #2 (small cell)
Shared multi-carrier
9 Better coverage
9 Improved spectral
efficiency
9 Reduced
unnecessary
handovers
9 Reduced signalling
load
HANDOVERS
SEAMLESS MOBILITY WITH MACRO AND OTHER SMALL CELLS
Small Cell to Macro Handovers
ALCATEL-LUCENT
EXPERIENCE AND EXPERTISE
Layer 2 QoS
Queue management
#1 in GPON
Traffic shaping
Leading position in IP
CAC
31
COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
ENTERPRISES
HOMES
Auto-configuration
Self-optimization
Handovers to/from macro
Automatic carrier selection
Apps API
Time
Identity
Service provider
Location
Status
Developers
Payment
Security
Rich Location
Bcast/multicast
33
COPYRIGHT 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
Subscribers
Revenues
Services
Small Cells