Network Vision:

Preparing Telefónica for the next

generation of services

Enrique Blanco
Systems and Network Global Director
19.09.2017
Mobile Access Vision
Increasing 4G coverage, features and network efficiency while
preparing for 5G
Completing 4G rollouts to reach similar coverages to 2G/3G by
2020 while improving performance and capacity
>90% Europe
Similar to
Towards nationwide LTE coverage
>60% LatAM 2G&3G
LTE coverage 2017 2018 2019 2020

While evolving LTE

Macro
Having Devices
(CA, MIMO, +sectors, new features) Ready
Indoor Small Cells
Assessing our Mobile
Ourdoor Small Cells
Backhaul needs to
New features cope with expected
2
(IoT, FWA, IPComms, etc.) traffic needs
Increasing efficiency by reducing investment in legacy
technologies and dedicating most of spectrum to LTE

Clear plan for total 2G Migrate traffic and

decommission clients to 4G

Considering RAN Dedicating more of our

sharing scenarios spectrum to LTE

Unlicensed spectrum
Acquiring additional
for small cells
spectrum
(LTE LWA, LWIP, MPTCP, LAA)

3 …While preparing for 5G

Transport and Core Network
Major transformation through Telco Cloud, IP and optical
transport optimization
Virtualization technology, as a lever of transformation, will
also be key in deploying 5G

VIRTUALIZATION PATH NETWORK SLICING CONCEPT

5 Network Slicing from Core to NR

Telco Cloud architecture will support new services and
applications, traffic growth and all connected devices

6
5G
Paving the way for 5G
5G is the driving paradigm of the current network change

On the Road to:

5G
VIVO

 QUALITY

 4,5G / 4,9G

 CORE

 SERVICES
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Telefonica is focusing on key features of the network evolution
roadmap following an incremental 5G investment

Coverage

Fiber

Spectrum

Antennas

Densification

Cloud / Virtualization

Services
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New technologies for 5G New Radio to open a new world of
services

Hyper dense Ultra-reliable

deployments Massive
Mobilizing mmWave links
MIMO
Advanced
Beam channel coding
forming e.g. LDPC
Integrated access
and backhaul Redundant Wide
Multi-connectivity links bandwidths
Dynamic
Narrowband Low-latency
Multicast Internet of Things
Coordinated TDD/FDD
V2N
spatial techniques
Multi-hop
Device-centric
New shared spectrum Advanced Grant-free uplink mobility
paradigms receivers transmissions. E.g. V2V
RSMA

New levels of capability and efficiency

10x 10x 10x 3x 100x 100x

Experienced Decreased in end- Spectrum
Connection density Traffic capacity Network efficiency
10 throughput to-end latency efficiency
5G driven by demand and uses cases...
A wide range of consumer and enterprise use cases will be supported by

Ultra-reliable and low Massive machine type

Enhanced mobile broadband
latency communications communications
• Multi-Gbps data rates • Uniformity • Ultra-low latency • High availability • Low cost • Deep coverage
• Extreme capacity • Deep awareness • High reliability • Strong security • Ultra-low energy • High density

Mobile devices Networking Automotive Robotics Health Wearables Smart cities Smart homes

And Fixed-Wireless is emerging as a fourth use case

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 5G
Keep evolving our infrastructure to give
support to the next generation of services
while preparing for 5G
13
 e-MBB will be driven by mass adoption of bandwidth-intensive apps
(although there is a short term opportunity in FWA)…

eMBB (Enhanced Mobile Broadband) use cases are mostly an Fixed Wireless Access economics need further evaluation,
extension of the existing 4G value proposition especially when exploiting higher frequencies (mmWaves)
%Telco Upside Potential (*) • Comms + Services +10,4% %Telco Upside Potential (*) • Comms + Services n.a.
• Comms Only +3,0% • Comms Only n.a.
Demand
(Throughput / DoU per month) // >50 Mbps
20-50 Mbps
Demand
(Throughput / DoU per month)
>50 Mbps
500 GB
10-20 Mbps 100 GB 5-10 Mbps >200GB
Demand 50 GB
and Service • Augmented Reality • Virtual Reality 50GB • Fiber-Like UBB
Evolution 5-10 Mbps • Next-gen Gaming
5-10 Gb • Video (4K) • ADSL-like BB o Max Speed: >10 Gbps per cell (distance,
• Vehicle Info-tainment spectrum and #beams)
• Cloud Gaming
• Programmable VPN o x100-1000 LTE Capacity
• Video (HD)
• Cloud Work Place

Technical
• Increase Throughput
Require-
• Reduce Latency
ments

Network • Current LTE • LTE-A Pro • 5G

• LTE & LTE-A (FDD + TDD • 5G Radio (mmWaves)
Architec- • LTE-A (&Massive
Spectrum)
ture MIMO).
• Initial 5G hotspots

14 2017 - 20 2021 - 25 Beyond 2025 2017 - 20 2021 - 25 Beyond 2025

(*) Incremental revenues over total Telco Sector revenues 2020. Source: Ericsson (“The 5G Business Potential”, 2017) & Team Internal Analysis
… in IoT, technologies like NB-IoT or LTE-M (already in use) could cope with
current demand (many Mission Critical Services are yet to be developed)

In Massive IoT, a radical change in scale is expected in the mid- Ultra-low latency, Ultra-high reliability Use cases are still
term, from thousands to millions of connected devices emerging markets, dependent on innovation across many sectors
%Telco Upside Potential (*) • Comms + Services +15,4% %Telco Upside Potential (*) • Comms + Services 7,0%
• Comms Only +5,7% • Comms Only 2,3%

Demand Density 100Ks // Millions Demand

(#Connected Devices / Km2) devices (Use Cases)
• All things
Demand • Massive IoT Connected • Drones
and Service (Tracking, • Tele-Surgery
10Ks • Augmented Reality • Robotics
Evolution agriculture, • Industry Automation and
devices • Autonomous Vehicles
1Ks Energy, remote Control
devices • Logistics • …
• Smart Cities monitoring…) • Assisted Driving
• Smart Home
• Wearables

Technical • Increase device density per km2 • Increase Throughput

Require- • Reduce Energy consumption • Reduce Latency
ments • Deep coverage • Increase reliability (towards 99,999%)

• Current LTE Networks (leveraging • Continue of NB-IoT • LTE supporting V2X • Future LTE supporting • 5G advanced
Network NB-IoT, LTE-M, D2D…) • 5G IoT (enhanced capabilities) (Vehicle to Aerial Vehicle comms. deployment with
Architec- Everything) • Private deployments edge computing
ture (unlicensed spectrum
with LTE-A Pro or 5G
network slicing)
2017 - 20 2021 - 25 Beyond 2025 2017 - 20 2021 - 25 Beyond 2025
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(*) Incremental revenues over total Telco Sector revenues 2020. Source: Ericsson (“The 5G Business Potential”, 2017) & Team Internal Analysis