addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ......

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LTE / EPC Vivek Badrinath executive vice president networks, carriers, platforms and infrastructure France Telecom June, 29 th 2009 addressing the broadening of the mobile data market

Transcript of addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ......

Page 1: addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ... LTE / EPC is the new horizon for ... Universal Mobile Telecommunications System . UTRAN.

LTE / EPC

Vivek

Badrinath

executive vice president networks, carriers, platforms and infrastructure

France Telecom

June, 29th

2009

addressing the broadening of the mobile data market

Page 2: addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ... LTE / EPC is the new horizon for ... Universal Mobile Telecommunications System . UTRAN.

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agenda

2France Telecom timeline for LTE3conclusion

LTE is part of our mobile broadband strategy1

4

LTE main characteristics

Page 3: addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ... LTE / EPC is the new horizon for ... Universal Mobile Telecommunications System . UTRAN.

3services delivered through a consistent utilization of single technology family: GSM, EDGE, 3G (UMTS phase 1), HSDPA and HSUPA

France Telecom Orange has successfully delivered mobile broadband in Europe1

3G coverage of population, end of 1Q09

HSDPA launch date

HSUPA launch date

1Q0794%

1Q09

Orange UK

3Q0680%

2Q08

Mobistar

3Q0675%

1Q08

Orange France

2Q0683%

1Q08

Orange Spain

2Q0789%

4Q08

Orange Switzerland

4Q0653%

2Q08

Orange Poland

3Q0661%

4Q07

Orange Slovakia

4Q08

launched 4Q08

4Q08

Orange Moldova

2Q0747%

4Q07

Orange Romania

2Q07~70%

3Q08

Orange Austria

Page 4: addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ... LTE / EPC is the new horizon for ... Universal Mobile Telecommunications System . UTRAN.

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coverage and technology rollout for mobile broadband resulted on a rapid rise of multimedia usage

cumulated mobile data traffic in France, UK, Spain & Poland

data AUPU in mbytes

per month

1

10

100

1000

2G 3G/3G+

datacard

consumerdatacard

businessiPhone3G+ handset &unlimited

option

3G/3G+ handset

iPhone

EDGEonly handset

source: Orange France, 11/2008, active customers

penetration of broadband in mobile customer base

1

22

6

2

 0

 5

 10

 15

 20

 25

140

160

100

0

120

2008

122

2007

110

2005

14

98

2006

84

180

broadband out of total mobile (%)

mobile customers (in million)

note: broadband is EDGE / 3G / HSPA

mobile data traffic was multiplied by more than 5 over 2008 in the four major Orange countries

traffic growth driven by new HSPA capable devices and video / Internet based services

x ~ 5.5

12 / 2007 12 / 2008

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5

10

100

1 000

10 000

100 000

1 000 000

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

mobile: capacity shared by users in a cell

moreover, fixed broadband capacity is dedicated to each line, whereas mobile broadband capacity is shared by all customers located in same cell

max. theoretical throughput (in kbps)

FTTH

VDSL2

ADSL2+

ADSL

GSM

GPRS

EDGE

UMTS

HSDPA

HSPA+

LTE

ISDN

mobile broadband is continuously advancing to cope with new usages, however always trailing behind fixed broadband1

fixed: dedicated capacity per line

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within next 3 years, a combination of levers will help absorb mobile data traffic growth

corebackhaulradio access

beyond 2012, LTE offers an opportunity to benefit from higher spectrum efficiency, leveraging refarming and new allocation

higher spectral

efficiency

spectrum refarming

new spectrum

migration to IP

new routing

algorithms

RAN sharing

1

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specification of a new standard required by

operators as early as 2004

technology requirements for mobile broadband beyond 20121

LTE / EPC is the answer to the new requirements

improved spectrum performance whatever the

band

increased throughput and reduced latency

converged voice and data all-IP end to end network

best use of all spectrum resources

current GSM and UMTS bands, but also new bands such as UMTS extension bands and digital dividend band

increased bandwidth requires new backhaul and core economics optimized for IP traffic

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agenda

2France Telecom timeline for LTE3conclusion

LTE is part of our mobile broadband strategy1

4

LTE main characteristics

Page 9: addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ... LTE / EPC is the new horizon for ... Universal Mobile Telecommunications System . UTRAN.

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2G 3G LTE

packet

circuit

flat architecture

backward terminal compatibility

accessnetwork

core

network

packet

circuitpacket

RNC

nodeB

BSC

BTS

LTE eNodeB

LTE will bring significant improvements2

new radio interface, with —

various bandwidth (from 1.4 to 20 MHz)

improved efficiency compared to 3G (high throughput UL&DL, lower latency, higher cell capacity), providing tens of Mbps for a 20 MHz channel

packet only, no circuit mode in the standard

circuit : dedicated path between two terminals over which a communication session is established

packet : shared network which routes each packet independently from all others and re-assembles them at both terminals

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radio efficiency is one key landmark of LTE

R99

2004

R5 3.6 Mbps

Rake

2006

R5.1 1.8 Mbps

Rake

2005

R5 3.6 Mbps

Rake

2007

R6 7.2 Mbps

LMMSE

2008

R6 14.4 Mbps

LMMSE

2009

R7 28 Mbps

MIMO 2X

2010

R8 LTE

MIMO 2X

2012

2

average carrier capacity multiplied by ~15 for higher throughput per user

round trip time divided by 5, allowing better response time and application interactivity

x ~ 15

÷ 5

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yet, peak theoretical radio throughput does not directly translate into end user bandwidth experience

14.4

170

peak theoretical

radio throughput –

headline advertised rate

HSDPA 14.4

LTE R8in 20 MHz band ~ 1 -

35

2in Mbps

practical data rate

for a user, depending on: distance from transmitter*number of active users in the cell profile of services used

* higher data rates can be achieved if user is closer to the transmitter

~ 1 -

6

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LTE is widely adopted by operators

supported by GSMA as the natural evolution for GSM/UMTS operatorsdeclared by NGMN as the technology closest to objectiveschosen by many EVDO operators, such as Verizon and KDDI

2only GSM and UMTS operators in Europe, committed to LTE

ongoing migration from GSM to UMTS, easily upward compatible with LTE

LTE is natural evolution path for current GSM / UMTS operators; furthermore significant EVDO operators (e.g. Verizon) are rolling out LTE, as there is no evolution path beyond EVDO

mostly GSM and / or UMTS operators, easily upward compatible with LTE

LTE will extend the GSM / UMTS world footprint, with greater economy of scale and wider roaming

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delivering voice to LTE customers 2

target architecture

VoIP is to be steered by IMS, with efficient use of radio resources and IMS-enabled support of advanced servicesrich communication suite (RCS) trial in France

handover at the border of LTE coverage, SRVCC will provide hand-over with 2G and 3G coverage by same operator

roaming international roaming with 2G-3G networks is warrantedall LTE terminals will be multimode terminals, therefore at least benefit from voice service on legacy networks

interim solution

if LTE handsets were available before IMS deployment, interim solution would be to fall back on 3G network for voice, as standardized by 3GPP (use of CSFB)

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impact on CAPEX and OPEX

reuse of radio site power and infrastructure

2flexibility of the roll out thanks to the fall back

on HSPA layer

HSPA coverage

flexibility on CAPEX for rollout

initial LTE rollout can focus on dense areas, on existing sites (co-sited with 3G), with an order of magnitude of €50-100 m CAPEX (excluding licence) for inner districts of two major French citiesfurther rollout will be driven by market demand

reduced OPEX

self-optimized network (SON)improved spectral efficiencyIP induced lower cost of transport per bit

LTE coverage

Page 15: addressing the broadening of the mobile data market · PDF fileGPRS. EDGE. UMTS. HSDPA. ... LTE / EPC is the new horizon for ... Universal Mobile Telecommunications System . UTRAN.

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agenda

2France Telecom timeline for LTE3conclusion

LTE is part of our mobile broadband strategy1

4

LTE main characteristics

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timeline for LTE deployment: current view for commercial launch around 2012

spectrum allocations

network equipment readiness

terminal equipment readiness

end-to-end quality of service

capacity constraints on

existing networks

2009 2010 2011 2012 2013

trialcommercial hardware &

software

3

early

devices data centric

devices smartphones

lab

tests commercial launch

for data services

customer

tests

datacard

base seeded with LTE compatible devices

network roll out

3GPP standards finalised

2.6 GHz awards

across

Europe digital dividend

available

release 8 release 9 release 10

marketing and economic requirements will drive commercial launch

Ora

nge

fact

ors

indu

stry

fact

ors

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impact on CAPEX: typical phasing in European countries

3

2009 201120052003 2007

only maintenance

CAPEX on 2G

initial roll-out at 2.1 GHz, coverage extension with UMTS-900

2G

3G

LTE

CAPEX to sales ratio for mobile to remain approx. constant

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4 conclusion

commercial launch only when LTE end to end customer experience

superior to the one with

HSPA+

LTE / EPC is the new horizon for mobile technology

on going efforts to resolve outstanding issues

higher spectrum efficiency

reduced latency

reduced costs thanks to flat architecture

compatibility with the GSM/UMTS family

modular roll out on the back of HSPA+

technology adopted by both GSM/UMTS and EVDO worlds

multimode device availability

open interfaces

SON features availability

easy roll-out of network equipment

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glossary

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glossary

(1)

3G UMTS Rel. 993G+ HSDPA, HSUPA, HSPA+AUPU Average Usage Per User BSC Base Station Controller BSS Base Station Sub-system CAPEX Capital ExpenditureCSFB Circuit Switched Fall-Back EDGE Enhanced

Data GSM EnvironmentEVDO Evolution Data Optimized (same family as IS95 and cdma2000)GSM Global System for Mobile communicationHSDPA High Speed Downlink Packet AccessHSPA High Speed Packet AccessHSUPA High Speed Uplink Packet AccessIMS Internet Protocol Multimedia

SubsystemIP Internet ProtocolLTE / EPC Long Term Evolution / Evolved Packet CoreLMMSE Linear Minimum Mean Square Error HoM/MIMO High-order modulations /Multiple-Input Multiple-Output NGMN Next generation mobile NetworksOPEX Operational ExpenditureRAN Radio Access Network

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glossary

(2)

RNC Radio Network Controller

SON Self Optimized Network

SRVCC Single Radio Voice Call Continuity

UMTS Universal Mobile Telecommunications System

UTRAN UMTS Terrestrial Radio Access Network

VoIP Voice over Internet Protocole

WiMAX Worldwide Interoperability for Microwave Access