1. A Paradigm Shift in
Future Mobile Networks
Dr Shahram G Niri
Global LTE/SAE Strategy & Solution - NEC Europe

2. Towards True Mobile Broadband
Voice Internet Broadband Mobile Broadband for
everywhere mainly in buildings Everywhere & affordable Connected Digital World:
Mobile Broadband Mobile
Internet  A reality today
Telephony Broadband
 A dominant means of global
broadband connectivity in the
Today ~ 1.2 Billion 2015: 2.1 Billion (?)
Today ~ 4 Billion near future
<80% 3GPP family> 2013: 1 Billion
400+ million 3G/WCDMA subs Today ~140 Million
(including HSPA)
New services are being introduced with the Internet at the heart the services
More powerful and enabled devices are becoming available
Digital content and in particular Digital Home continues to grow
Traffic and data volume is increasing significantly
Customer delight is absolutely essential
 Users are adopting new habits
 They are becoming more demanding on the quality and price
From Kilo (103 ) bytes to Tera (1012 ) and Zeta (1021 ) bytes
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3. Telecom Industry and Economy
Worldwide Mobile Service Annual Growth Rate
14.0
13.0
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
2006 2007 2008 2009F
The Telecom / mobile business rather crowded sector
Europe in lead in mobile services: 119% in Europe, 87% in US and 84% in Japan
Telecom sector growth is slowing but still stronger than rest of economy
 The sector growth in EU 26 (down from ~5% in 2004 to less ~ 1% in 2008, down to ~ 0 in
2009 and expected up to more than 1% in 2012)
Telecom sector share of GDP: ~ 3% in EU in comparison to other sectors, e.g. 11% of
transportation
Golden days of Telecom is over
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4. Deflationary Prices in Telecom Sector!
Average household monthly spend on telecom services
50
Telecoms Price Development
40
Mobile Broadband
30
20
Euro/Month
10
0
2002 2003 2004 2005 2006 2007 2008 2009
Users are spending more time on the phone and internet
Traffic and data volume is increasing significantly
Average household spending on communication falls
 Consumer pay less while getting better value -> they pay ~30% less than 5 years ago
Telecom seems to be the only sector delivering price decrease
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5. Significant Growth in Traffic While Slow in Revenue
Traffic
Mobile Network
Traffic Growth
Gap
Revenue
Time
* Revenue of 1 Mb voice is 25-40 times more than 1 Mb of data
Cost Vs Revenue does not add up Cap in flat rate
Lower revenue and margin  Optimizations and other means
of traffic handling
User experience at risk
New revenue streams and
sources
Limit/control it More efficient deliveries in radio,
Turn it to revenue transport and core network
Bring the cost of it down  Lower Capex and Opex
Lower Cost & Better Performance and New Revenue Streams Needed
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6. Telecom Sector Dynamics Are Changing
Diverged traffic and revenue growth
 Converged networks
New ecosystem & new players
Trends toward being “Bit pipe provider” Mobile
 Change in revenue models Operators
Shift in revenue stream
Change in differentiation
Walled Garden Open Access
Coverage Map
Traditional Money Flow
Customers Platforms
Partners
• Consumers Service • Service provides
• Enterprises Identity • Content provides
Capacity Map
• SMEs •Developers
• SOHOs
QoS
• Advertisers
Security
• Retailers
Billing
Traditional Service Flow Quality Map
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7. Telecom in Need of Reform Towards More Sustainability
Operators
 Cost optimization Vendors
New business models Innovative solutions
Customer satisfaction E2E with lower TCO
 Revenue generation True convergence of IT and Telecom
Alternative deployment
scenarios & more NW Sharing
intelligent and efficient •Site sharing to spectrum
networks sharing and eventually fully
shared NW
LTE • Differentiation through
Bigger, Smarter & Cheaper pipe service, CRM, branding
Cheaper NW operation
Higher performance Carrier Cloud
• True convergence
Femto • New service & revenue model
•Intelligent Indoor Solution • Service differentiation
• New services & applications •Cost optimization
•Cost saving and revenue
generation
Innovation and new business models
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8. LTE and 2G/3G Coexistence
With LTE Femto/small cells Mature
LTE Data traffic to increase exponentially
Mature
3G/HSPA The data traffic and the revenue is
generated mainly in hotspots & in-
Mature
GSM building
The cost of outdoor/macro radio is high
Problematic indoor coverage at high
frequencies using macro
Early GSM
Early 3G Early LTE
 2.6 GHz not suitable for indoor and
costly for coverage (macro)
1990 2000 2005 2010 2015 2020 2025
Public
transport
Need to operate 3 NWs for some time
Public 4%
outdoors
40% 35% 10%
Site Public
indoors 10%
41%
BUT managing 3 NW will be costly and
Radio Home
25%
Private
transport complex
Backhaul 12% Work
The 3rd NW will need to be cheap, easy
23%
TCO breakdown to manage and fast to deploy
Mobile usage in Western EU
LTE to start in hotspots, high traffic zones & enterprise/residential Femtocells followed by
nationwide coverage at later stages
8 NEC Confidential

9. LTE Small Cells; Smart Way to Future Networks
LTE and HSDPA performance relative to Theoretical Limits
30.00
6.00
Specturm
5.00 25.00 MIMO
Achievable Efficiency (bps/Hz)
shannon limit Modulation & Coding
HSDPA
4.00 20.00
LTE
3.00
15.00
2.00
10.00
1.00
5.00
0.00
-10.00 -5 0 5 10.00 15.00 0.00
Required SNR (db) GSM GPRS EDGE WCDMA HSDPA HSPA+ LTE
Small cell
LTE and HSPA link level spectrum efficiencies • Operate at higher SNR, hence improve
close to theoretical limits the achievable spectrum efficiency
 Other factors such as Coding & Modulation, • Also improves the QoS in the network –
MIMO and more spectrum contribute towards better user experience
higher capacity – Spectrum highest contributor! • Allows for faster, more felxible, cheaper
 Spectrum is scarce and number of antennas is and easier deployment and operation
also limited
Frequency reuse is the key to keep up with exponential increase of traffic in the future
with limited spectrum availability
9

10. Think Big – Deploy Small Cells
 2G and 3G networks (already provide macro coverage) LTE deployment drivers
 LTE on 2.6 Ghz initially for high data traffic hot spots
 Overlay micro/pico: fast to deploy and cheap and easy to install and operate
 Address indoor coverage and capacity with LTE Femto enterprise 1 4
 Improve macro (HSPA) coverage by overflowing the traffic to LTE
 Use Digital Dividend later on & when the older technologies phase out for 2
3
LTE macro
1 Capacity Driven
 Invest where the traffic and hence the revenue is Hotspots and high traffic zones
 Improve your overall data traffic capacity and performance
 Start small and build as your number of users / traffic increases 4
3
Future Outlook
2
1
2G&3G for ubiquitous voice 2G/3G
2 New Business Driven
& HSPA mainly data Femto and hotspot islands
HSPA
2G&3G for Voice & HSPA LTE
for ubiquitous data & LTE
for data 1
LTE 3
2G / 3G for voice , HSPA for
LTE 4
ubiquitous data & LTE for Femto 2
data
3 Coverage Driven
4G LTE
Macro deployment
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11. Lower TCO: A Key to Successful LTE Small Cell
NEC’s Hybrid SON Server NEC’s Green Mobile
Commitment to the Environment
SON a key feature for improving & reducing the cost of operation
and enhancing user experience • Power; efficient hardware
Customer's
•Self Planning Management System
North bound
interface
• Intelligent energy efficient software
•Self-configuration
Client for • Reduced CO2 emissions with state of the
Main Server
•Self-optimization & Self-healing art devices & chipsets
•Energy Saving • Fan-less cooling system design
South bound
•Planning Tool Optimization interface
PA efficiency
•SON for LTE Femto eNB & ePC LAN
From 20% to 45% power efficiency!
Reduced TCO with NEC’s Small Cell Deployment
OPEX – 70% of TCO CAPEX – 30% of TCO
LTE PA
Transport Equipment
3G PA
15% 5% 20%
Civil Works
Hardware of TCO
Software Manpower 30%
10% 5% Operation
Leased 15%
Line 30%
Power consumption
Accessory
20%
75% less power
Power
Site Rental consumption!
30%
Consumpti
on NEC’s 3G
10% Installation, Antenna
(Source: 40% 10% Site 5%
In-Stat 2008/6) of TCO Acquisition
NEC’s LTE
10%
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12. Cost Effective & Flexible Deployment - eNB
Indoor & Outdoor Distributed BBU and RRH Macro Macro Rectifier,
Micro /Pico
BBU RRH Battery
Combined BBU & RRH
Outdoor
RRH SECU
Indoor Femto
BB unit RF unit
• Most compact BB unit • High capacity
• Flexible in mount • Lower power
• Various form factors consumption
• Zero Foot print • Flexible and scalable
• Scalable with high capacity • Wall & Pole mountable
Small cell eNB & LTE Femto Wall Install
Classic outdoor
• All in One for micro Installation
• Residential / SOHO & pico deployment
• Enterprise for indoor private
• Outdoor Public 420x230x130 mm
12 kg RRH
125 W
Pico eNB BBU
Femto Femto (BB+RF) Ladder
Residential Enterprise Installation eNB
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13. Summary
Mobile Broadband is a reality and potentials are huge
There is a need for a new paradigm in mobile NW for cost effective
realisation of a true mobile broadband
 LTE as a cost effective and future proof technology is a key to future mobile
broadband
 New innovative solution, lower TCO, flexibility and scalability in the
deployment, simplicity and ease of operation will be key to the success of
LTE for mobile broadband
An overlay network with small cell deployment is the way forward
 NW Sharing from site to spectrum sharing and eventually fully shared NW
with new differentiations will be the way forward
 Cloud Computing for bringing the TCO down and creating new revenue
models
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