2.5G to 3G Migration
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Transcript of 2.5G to 3G Migration
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Critical Success Factors
2.5G to 3G Migration
The 8th Arab Telecom and Internet ForumThe 8th Arab Telecom and Internet ForumShangri-La's Resort, Muscat - OmanShangri-La's Resort, Muscat - Oman24 -25 May 200624 -25 May 2006
Presented by: Moheb Adel RamsesTechnical Director, Mobile Networks
MENA Region
HUAWEI TECHNOLOGIES CO., LTD. Page 2
Overall Evolution and Industry Trend
Access business and Services business break up
Source: HUAWEI
Best ConnectedReachable Integration
User needs and
Services oriented
Coverage
CapacityNew Services
Broadband
M2M etc.
~2002 2010
$
Medium=Service
Pay for media access
Voice operation
Transfer to content
Non-Voice operation
1990
Pay for Content
HUAWEI TECHNOLOGIES CO., LTD. Page 3
Wireless Network TrendsUnified
Flat
Converged
ALL IP
TimeTime
Network
Architecture
Radio
Access
Radio
Access
TerminalTerminal
IMSIP UTRAN
Enhanced IMSE2E IP
RNC LTE
Soft-switchIP CN
Ultra-high speed
Ubiquitous coverage
Higher Spectrum efficiency
Various access technology
Low Cost
Indoor coverageUMA
WiMAX
OFDMMIMO
HSDPAHSUPA
WIFI
Multi BandMulti ModeMulti Media
SoftwareDefined Radio
OnlineReconfigurable
Dual BandDual Mode
Converged
Intelligent
Integration
The wireless networks converge in the core network and the terminal. Wireless access adds value to services, and users will choose best value connection.Usage goes indoor! More than 70% traffic has moved from highway to hallway
HUAWEI TECHNOLOGIES CO., LTD. Page 4
RAN Evolution Trends
Source: Qualcomm
3GP
P2
3GP
P
WCDMA and CDMA2000 have very similar RAN migration roadmaps.
UMTS
CDMA2000
WiFiWiFi UMA/WiMAXUMA/WiMAX
HUAWEI TECHNOLOGIES CO., LTD. Page 5
Core Network Evolution Trends
UMTS and CDMA2000 also have very similar core network migration roadmaps. Soft-Switch is the optimum structure for voice IMS is the optimum structure for multimedia service SoftSwitch and IMS will coexist for a long time
TDM/IP
MSC Server
PSTN
MGW MGW
H.248 H.248SIP-T
Softswitch MSC (R4)/LMSD
MSC Server
TDM
MSC
PSTN CDMA BSS/UMTS RAN
MISUP
Legacy MSC (R99)
MSC Divided into MSC Server &
MGW IP
MGCF
PSTN
MGW MGW
H.248 H.248
SIP
MGCF
CSCF
CDMA BSS/UMTS RAN
CDMA BSS/UMTS RAN
IMS/MMD (R5/R6)
CS + IMS (+ PS) CS (+ PS) IMS (+ PS)
HUAWEI TECHNOLOGIES CO., LTD. Page 6
GSM Market Growth
Forecast of MENA Subs
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20
40
60
80
100
120
140
2004 2005 2006 2007 2008 2009
Sub
s(M
illio
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0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Ann
ual C
hang
e(%
)
Total SubsAnnual Change
Source: EMC World Cellular Database, Dec 2004Source: EMC World Cellular Database, Dec 2004
The number of GSM subscribers will exceed 2 billion by the end of 2007The number of GSM subscribers will exceed 2 billion by the end of 2007Lower End-to-End cost is the main strength of GSM networksLower End-to-End cost is the main strength of GSM networksME&NA is still the fastest growing mobile marketME&NA is still the fastest growing mobile marketVoice and SMS are and will still be the main source of revenue for quite a long time Voice and SMS are and will still be the main source of revenue for quite a long time
Source: InformaSource: Informa
HUAWEI TECHNOLOGIES CO., LTD. Page 7
3G, a new engine to improve ARPU
UMTS subscribers number hit 44.6 million worldwide by the end of 2005, an increase of 161% on the figure at the end of 2004.
Today, there are Today, there are 108 commercial WCDMA operators in 47 countries108 commercial WCDMA operators in 47 countries. The majority are enabling HSDPA in their networks . The majority are enabling HSDPA in their networks as the new baseline for 3G globally (as the new baseline for 3G globally (www.gsacom.com )
Green field UMTS networks are still facing relatively high price terminalsGreen field UMTS networks are still facing relatively high price terminals GSM operators in MENA launch UMTS networks focusing on data services for high end users, despite the poor take-up of GSM operators in MENA launch UMTS networks focusing on data services for high end users, despite the poor take-up of
their 2.5G data services their 2.5G data services There is generally a limited amount of money available from users to increase the total revenues of operatorsThere is generally a limited amount of money available from users to increase the total revenues of operators HSDPA availability is currently boosting the 3G deployment, allowing a net differentiation between 2.5 and 3G services.HSDPA availability is currently boosting the 3G deployment, allowing a net differentiation between 2.5 and 3G services. HSDPA gathers momentum in the MENA, especially in the Gulf countries like UAE, Kuwait, Bahrain, Oman, etc …HSDPA gathers momentum in the MENA, especially in the Gulf countries like UAE, Kuwait, Bahrain, Oman, etc …
0
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350
Dec- 03 Dec- 04 Dec- 05 Dec- 06 Dec- 07 Dec- 08
0
50
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150
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Subscribers (Million) Number of networks
44.6 millions Subs
83 UMTS networks
Number of Subscribers
Number of Networks
Source: www.3gtoday.comSource: www.3gtoday.com
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Migration Opportunities and Challenges
How to balance 2G Network Expansion versus New 3G Service Launch?How to balance 2G Network Expansion versus New 3G Service Launch? How to deploy UMTS step by step ?How to deploy UMTS step by step ? How to reduce TCO to optimize the revenues of the resulting network.How to reduce TCO to optimize the revenues of the resulting network.
GSM operators should plan to make 3G an
“Evolution” rather than “Migration”
HUAWEI TECHNOLOGIES CO., LTD. Page 9
CAPEX38%
OPEX62%
CAPEX OPEX
TCO Saving in Lifecycle
OPEX represents more than half of the total cost of ownership.
Rental, power consumption, leased lines and human resources are major
parts of OPEX
01000020000300004000050000600007000080000
year 1
year 2
year 3
year 4
year 5
year 6
year 7
year 8
year 9
CAPEXOPEX
(k EUR)
TCO reduction is generally “Crucial”, especially at this stage of 3G deployment
HUAWEI TECHNOLOGIES CO., LTD. Page 10
Optimized Migration Plan Shared Core Networks save CAPEX, OPEX and Improve Quality
Huawei Mobile Soft Switch and Packet CN achieve 2G/3G Convergence
As a considerable step towards 3G As a considerable step towards 3G deployment, we recommend deployment, we recommend GSM GSM operators to adopt R4 Soft-switch operators to adopt R4 Soft-switch architecturearchitecture whenever they are: whenever they are:
• Deploying a new GSM network for Deploying a new GSM network for a new licensea new license
• Expanding the core network for an Expanding the core network for an existing GSM networkexisting GSM network
• Swapping legacy GSM MSCSwapping legacy GSM MSC
HUAWEI TECHNOLOGIES CO., LTD. Page 11
Macro indoor
Optimized Migration PlanNew Technologies Reduce TCO in Node B
Macro Outdoor
Mini Node B
Pico Node B
Making maximum use of advanced Node B technologies considerably reduce TCO:
•Integrated Digital PA; higher power efficiency with lower power consumption
•Multi Carrier Transceivers; software capacity expansion
•Full HSDPA performance; lower cost per bit.
•Open CPRI interface; lower industrial chain cost
•Distributed Node B; easier site acquisition, installation and transportation
Optical FiberCPRI
BBU19 inch box
RRU
Distributed NodeB
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E1 for CS Services and High QoS PS services
IP Network for best effort PS services
40%-80% Transmission rental can be saved!
RNC Node BIP network
E1
Balance of transmission cost saving and QoS guarantee Most efficient transmission solution for HSDPA
Transmission Resource Whole price
E1 Transmission 4E1 € 19200/year
Hybrid IP Transmission 2*ADSL + 1E1 € 5760/year
Unit Price: E1: €4800/year, ADSL:€480/year
Optimized Migration PlanBalanced Transmission Cost and QoS with Hybrid Transmission
HUAWEI TECHNOLOGIES CO., LTD. Page 13
Peak data rate:HSDPA = 700%
Cost per MB: HSDPA =35%
HSDPA provides lower cost per bit, clearly differentiate 3G from 2G services to the end user.
Optimized Migration PlanGo Broadband today with HSDPA
HUAWEI TECHNOLOGIES CO., LTD. Page 14
TV Programs
Example: Mobile TV Huawei Cell Multimedia Broadcast (CMB):
All users share a common channel (FACH)
Fewer resources occupied but higher revenue for operators
Low cost and good experience for end users
Smooth evolution to MBMS
CMB allows a pre-MBMS cost effective solution for Mobile TV and other broadcasts.
Optimized Migration PlanSpeed Up Introducing Attractive 3G based Applications
HUAWEI TECHNOLOGIES CO., LTD. Page 15
At this stage, it is strongly recommended that
operators cooperate closely with terminals’ suppliers
to provide affordable customized handsets.
Huawei has focused on designing chipsets for Multi-
platform solution to reduce the cost of low end
terminals
Cooperate closely with operators for customized
handsets
U626 U636 U526 E600E618 customized
for Vodafone
U526E620(HSDPA)
Optimized Migration PlanCooperation with suppliers for Affordable and Customized User Terminals
HUAWEI TECHNOLOGIES CO., LTD. Page 16
About Huawei 3G:Global UMTS Applications
• Achieved 28 UMTS commercial contracts by the end of April 2006• Deployed over 50 pilot networks worldwide.• 22% Market share of Total Awarded Contracts in 2005.
P4P4
NTSNTS
……
……
……
Europe 12
Asia Pacific 9
Middle East 7& Africa
Area Contract Reference
HUAWEI TECHNOLOGIES CO., LTD. Page 17
Over 40 M subscribers
19 CDMA2000 1xEV-DO commercial applications
15 CDMA SoftSwitch commercial applications serving 10 M subscribers
over 65% global market share in CDMA450
68% global market share in CDMA WLL
MexicoMexico NigeriaNigeria
Pakistan
Yemen
BangladeshThailandThailand
RussiaRussia
ChinaChina
Global Footprint of Huawei CDMA
About Huawei 3G:Global CDMA2000 Applications
HUAWEI TECHNOLOGIES CO., LTD. Page 18
Conclusion The trend of telecom industry is evolving from Network Based to Customer and Services Based.
Despite the competition between UMTS and CDMA2000 as the two favorite 3G technologies, they do share a lot of similarities in their Capabilities and Roadmaps.
Shared Core Networks for 2G and 3G – whether Circuit core based on R4 softswitch or Packet core - is a major step towards a smooth migration, optimizing CAPEX and OPEX as well as improving QoS.
A set of new advanced technologies in the 3G Node B’s considerably help the operators to reduce the TCO while improving the overall performance.
Hybrid TDM/IP transmission is currently the favorite solution to balance the high speed data transmission requirements and the cost of transmission resources.
Huawei strongly encourages operators to differentiate their 3G capabilities with innovative and attractive applications (especially with HSDPA mature availability), and to cooperate with handsets suppliers for affordable and customized user terminals.
Huawei has achieved a remarkable global presence and leadership in the mobile industry, witnessed by the wide global applications of Huawei GSM/GPRS/EDGE/UMTS/CDMA2000 1x/DO networks.
Thank You
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