1. Where Are We Going?
Broadband/Mobile Broadband
the 4th Utility
LTE North America
Dallas – 10th and 11th Nov 2010
Dr Shahram G Niri
Director of LTE/SAE Global Strategy & Solution – NEC Europe

2. Table of Content
Changing telecom industry (Services & Users, Networks)
Diverged traffic and revenue growth
Innovation & Reform Towards More Sustainability
The need for Small Cells for capacity and performance in the future NWs
Concluding remarks
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3. Changing Telecom Industry
Users will grow in importance
 Customer delight is absolutely essential
 Adopting new habits (e.g. social media, video addiction, ...)
 More demanding on the quality, interactivity, personalisation
Services will grow in multiplicity, diversity and richness
 New services with the Internet at the heart the services
More powerful and enabled devices
Networks will grow in complexity
 Hyper connectivity and increasing demand for capacity
High capacity pipes with intelligent plumbing
Self managed and automated networks
Communication delivered through SW on standards / generic HW
New business models will be in place
New ecosystem & new player, and revenue models
Communication networks to improve in intelligence, flexibility,
automation, resilience, efficiency, speed, security, privacy, latency
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4. Diverged Traffic & Revenue Growth
50 Telecoms Price Development
Significant growth in traffic while slow in revenue 40 Mobile
Broadband
 Ubiquitous Internet-based in hyper connected NWs 30
 Hundred-fold increase in network flow brought by mass
Euro/Month
terminals and mass digital content 20
 Users are spending more time on the phone & internet 10
 Average household spending on communication falls
 Consumer pay less while getting better value -> they 0
pay ~30% less than 5 years ago 2002 2003 2004 2005 2006 2007 2008 2009
 Significant growth in traffic while slow in revenue
Traffic
Broadband/Mobile Broadband the 4th Utility
Ubiquitous , high quality and affordable inter-based
broadband essential to the functioning of modern life &
society Gap
Revenue
From Kilo (103 ) bytes to Tera (1012 ) and Zeta (1021 ) bytes
Time
YET lower delivery cost per bit/per sub/per sq km
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5. Innovation & Reform Towards More Sustainability
Cost Vs Revenue does not add up
User experience at risk
Limit/control it (e.g. Cap in flat rate)
Bring the cost of it down (e.g. More efficient deliveries in radio, transport and core
network, Optimizations and other means of traffic handling
Turn it to revenue (e.g. Innovative solutions, New revenue streams and sources)
Small Cell Deployments
Alternative NW topologies
LTE Small Cells
Bigger, Smarter & Cheaper pipe Relay xG
Cheaper NW operation
Higher performance Femto 4G
Pico 3G
LTE Femto
Intelligent Indoor Solution
Micro 2G
 New services & applications Macro 1G
Cost saving and revenue generation
Carrier Cloud
 New service & revenue model
 Service differentiation
Cost optimization
Lower cost & better performance and new revenue streams needed
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6. Small Cells; Smart Way to Future Mobile Broadband
LTE and HSDPA performance relative to Theoretical Limits
6.00
Spectrum is a finite resources, scarce & expensive 5.00
Achievable Efficiency (bps/Hz)
LTE/HSPA link level spectrum efficiencies close to
shannon limit
HSDPA
4.00
theoretical limits LTE
 Other factors such as Coding & Modulation, MIMO and
3.00
more spectrum contribute towards higher capacity – 2.00
Spectrum highest contributor! 1.00
0.00
-10.00 -5 0 5 10.00 15.00
Alternative LTE deployments (Small Cell - Pico Required SNR (db)
/Femto cells) needed to avoid capacity shortfalls
30.00
Specturm
Frequency reuse is the key to keep up with exponential 25.00 MIMO
Modulation & Coding
increase of traffic in the future with limited spectrum 20.00
availability
Improves the QoS in the network – better user 15.00
experience 10.00
Allows for faster, more flexible, cheaper and easier 5.00
deployment and operation
0.00
GSM GPRS EDGE HSDPA HSPA+ LTE
New network topologies and deployment strategy offer more gain than
new technologies and HW
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7. More Capacity & Better Performance (HSPA+ Vs LTE)
3G based NW could run out
of capacity in 2010+ Network Capacity offered per device V.S.
HSPA
Forecast Traffic per device
Network Capacity/Forecast Traffic (MB/month)
HSPA+ needs major H/W 3000
upgrade to offer satisfactory
performance & capacity;
HSPA+
HSPA+ will not have 2500
More usage due to
considerable improvements over improved performance
HSPA and will have short life time
2000
LTE &
HSPA
LTE as an essential upgrade
for all 3G operators will offer 1500
LTE with small
better user experience (lower cells & Femto
LTE &
HSPA &
latency, higher data rate, 1000 Femto
better availability of higher
data rate, better QoE at cell Traffic
per
edge) 500
device
Alternative LTE 0 Potential
deployments (Small Cell - Pico 2008 2009 2010 2011 2012 2013 2014 traffic
/Femto cells) needed to avoid
capacity shortfalls
A constant challenge to keep ahead of future traffic increase
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7 © NEC Corporation 2009

8. Think Big – Deploy Small Cells LTE
LTE Macro deployment is not an option Coverage Layer
 Will not offer the necessary capacity and performance 1
with large /macro cells
 High cost of outdoor/macro radio 2
3 4
 Data traffic /revenue mainly in hotspots & in-building
 2G and 3G networks (already provide macro coverage)
1 Coverage Driven
Macro
LTE Small Cell as Overlay capacity and performance layer Macro deployment
Micro
 A sustainable solution towards ever increasing capacity

Pico
demand Capacity Layer
 Fast to deploy, cheap and easy to install and operate Femto
 Start small and build as your number of users / traffic (Residential /SME) 4
increases 2
1 3
 Revenue generation where the traffic is
HSPA & LTE (Coverage Layer) LTE (Capacity Layer) 2
2G/3G Capacity Driven
Hotspots and high traffic zones
4
LTE Hot spot/Metro
3
2 1
LTE Femto
3 New Business Driven
LTE Femto Femto and hotspot islands
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9. More Network Capacity by LTE Small Cells
Comparison of small Vs medium cell (DL)
For the same traffic density, ISD 200m
OMNI offers x 2.5 (x 3.5 in UL) user data rate
on average, or x3 (x8 in UL) user data rate
for cell edge user
If targeting mean user data rate 10Mbps,
5%-tile user data rate 2Mbps, ISD 200m 2
OMNI offers ~4x system throughput
The figures are MUCH higher if compared
with larger cells
Comparison of Macro & Macro+ Small (DL)
 for the same traffic density mixed
deployment offer ~2.5 x user data rate or ~2.4x user data rate
If targeting mean user data rate of 10 Mbps,
~1.7x
the mixed deployment scenario offer ~1.8 x Capacity
capacity
The figure are even higher for uplink (6X and
2.5 times)
Significant improvement by deploying small cells in terms of cost per bit per Km2
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10. High Performance yet Cheap, Easy and Fast deployment
High capacity and performance
Zero foot print, Wall/Poll Mount Indoor deployment
No site acquisition necessary
Flexible and fast deployments
Self configuration & one-touch by SON
Indoor & outdoor installation
Cascade
Fan less and air-cooling
Green & low power consumption
• 420mm x 230mm x 130mm, ~12kg
Outdoor
deployment Pole installation 3 x4W all-in-one S1
Distributed
Antenna
S1
Wall installation 1x4W all-in-one
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11. LTE Small Cells for Operators & End Users
 Savings due to power, site  Faster data rates at high traffic
rental, operation manpower locations
 Saving in site acquisition,  Better and higher availability
installation and civil work of high data rate multimedia
 Build as you grow where the services
investment needed User  Longer terminal battery life
Cost
 Cost efficient capacity Experience due to lower transmit power
provision to high traffic areas requirement
 Fast LTE deployment
 More capacity at reduced  Target high revenue locations
cost per bit NW Business
 New revenue streams from
 Higher average and peak cell Peformance Opportunities
Pockets of Services with Cloud
edge throughput Computing
 Last mile broadband solution
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12. Concluding Remarks
Mobile broadband is a reality, potentials are huge but challenges are huge too
Broadband/mobile broadband as the 4th utility will be an integral part of modern life
& society
Spectrum is a finite, scarce and expensive resources
New innovative solution will be key to the success of mobile broadband (lower TCO,
flexibility and scalability in the deployment, simplicity and ease of operation)
New network topologies and deployment strategy offer more gain than new
technologies and HW
Small cells as a cost effective and future proof technology is a key to future mobile
broadband
An overlay network with LTE small cells and LTE Femto deployment is the way
forward
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