EIC 2005 - Ericsson Mikael Prytz2005-02-17 1

Soon, you can do whatever you want, wherever you want

Ericsson and KTH turn Mobile Internet up-side-down

Mikael Prytz, Olof Lundström

Ericsson Research, Wireless Access Networks

Klas Johansson, Miguel Berg, Johan Hultell, Jan Markendahl, KTH

Jonas Lind and Niklas Kviselius, SSE

EIC 2005 - Ericsson Mikael Prytz2005-02-17 2

Mobile Communication Systems

mobile phone, laptop

wireless (mobile) link

base station (BS)

fixed transmission link

terribly complicated magical box

other networks,e.g., Internetservice area = Aservice

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Cost of Mobile Systems

• cost(total) Nuser*cost( ) + cost(system)

• cost(system) NBS *(cost( ) + cost( to BS)) + other( )

NBS

Wuser = average user capacity to produce service

Wsystem = maximum capacity per base station

Rmax = maximum base station cell radius

system

useruserservice

W

WN

R

A,max

2max

Note: cost = PV(CAPEX) + PV(OPEX)

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Future Growth – The Cost Barrier

• Wuser likely grows 10-100’fold for future mobile services

=> NBS increases

=> cost(system) increases

• Who pays for all the fun? Ultimately the end users.Issue: ARPU(future) ARPU(now) (Average Revenue Per User)

=> lower the cost of infrastructure

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Actors in Today’s Mobile Networks

• End users

• Operators– integrated scope: mobile services, mobility, wireless connectivity– wide area coverage (national, multi-national, c.f., Vodafone)

• Regulators

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• Observation: Fixed broadband access penetration in homes, small businesses, building societies, etc. is high

Local Access Points (LAP) Integrated in Mobile Networks:– end users deploy small base stations, Local Access Points (LAP)– LAPs are connected to the existing fixed broadband connections– other operator subscribers are allowed to use the LAPs

• LAPs give mobile network operators extra capacity at low cost for less critical services in densely populated areas

Research Concept: Local Access Points (LAP) Integrated in Mobile Networks

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LAP Deployment

Residential area

Business district

LAP

Macro BS

Micro BS

Micro BS Micro BS

LAP

LAP

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LAP Network Architecture

Business district

Residential area

Micro BS

Micro BS

Micro BS

LAP

LAP

LAP

Internet

Macro BS

Core network

LAP-C

LAP-C

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LAP Technical Features

• LAP cheap, simple to use black box– zero-configuration– automatic integration into operator network on installation– supports multiple radio access technologies (e.g., 3G, WLAN)

• end users supply power and space for the LAP• no or very low quality-of-service guarantees• partly autonomous, but controlled by operator network:

– authentication, authorization, accounting– mobility management– charging schemes

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OK, but...

• LAPs turn end users into operators, or...?– What are the new business roles/actors here?

• Is there a business case for operators and end users?• Incentives and guarantees for end users to let other users

in on the private broadband access?• Is it secure?

– for end users deploying LAP– for other users using LAP– for operator

• OPEX costs, power, space?

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Business Issues

• Role of end user deploying LAP in relation to operator– One possible model: Network Franchising

Operator is franchiser, end user is franchisee

• Value proposition for mobile operators– increased capacity, but no control of where it appears

• Value/Incentives for end users – kickback– lower tariffs when other user’s traffic go through the LAP– Bundled service offerings:

LAP + WLAN access + broadband access + free mobile access when connected through LAP + ...

• Role of / value to broadband provider (are LAPs allowed?)

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Open Issues – Opportunities for Innovation

• complete business case for all actors to be verified– which scenarios / settings?

– ”what’s in it for me?”

• potential market size?• other business models than network franchising?• other, competing solutions that would obviate the LAP concept• quantified examples on incentives for end users, service bundles, etc.

– how big incentive for end user? (assuming today’s expenditures on broadband (€30-40/month) and mobile services (€30-40/month))

• technical challenges (for the brave at heart):– mechanisms for spectrum management (interference control)

– mechanisms for network monitoring

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LAP Concept – Status

• concept investigated from both technical and business perspectives, see references– qualitative and quantitative– cost savings analyzed

• no detailed specifications of mechanisms• no prototype or demonstrator

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Research Projects

• Low Cost Infrastructure– project within Affordable Wireless Services Initiative– Partners: KTH, SSE (Handels), Ericsson– Financing: SSF, KTH, SSE, Ericsson

• Ambient Networks– European Union IST 6th Framework Programme– Partners: KTH, Ericsson– Financing: EU, Ericsson

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Selected References

• “Framtidens mobilnät kan byggas à la Ikea”, artikel i Ny Teknik, 040123.

• K. Johansson, A. Furuskär, P. Karlsson, and J. Zander, “Relation between base station characteristics and cost structure in cellular systems”, Proc. IEEE PIMRC, Barcelona, 2004.

• K. Johansson, M. Berg, J. Hultell, J. Markendahl, J. Lind, N. Kviselius, and M. Prytz, “Integrating User Deployed Local Access Points in a Mobile Operator’s Network,” Proc. WWRF#12, Toronto, 2004.

• F. Loizillon et al., ”Final results on seamless mobile IP service provision economics”, IST-2000-25172 TONIC Deliverable number 11, Oct. 2002.

• N. Niebert et al., ”Ambient Networks: An Architecture For Communication Networks Beyond 3G”, IEEE Wireless Communications, April 2004.