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5G to 3G Migration
Critical Success Factors
www.huawei.com

Presented by: Moheb Adel Ramses Technical Director, Mobile Networks MENA Region

The 8th Arab Telecom and Internet Forum Shangri-La's Resort, Muscat - Oman 24 -25 May 2006

Overall Evolution and Industry Trend

Reachable
Coverage Capacity

Integration
New Services Broadband

Best Connected
User needs and Services oriented
Non-Voice operation

$
Voice operation

Transfer to content

Pay for Content

Pay for media access


Medium=Service

M2M etc.
1990 ~2002 2010

Access business and Services business break up


Source: HUAWEI

HUAWEI TECHNOLOGIES CO., LTD.

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Wireless Network Trends


Unified
Network Architecture Soft-switch IP CN IMS IP UTRAN Enhanced IMS E2E IP RNC LTE Flat Converged ALL IP

Ultra-high speed Radio Access HSDPA HSUPA WIFI Indoor coverage UMA WiMAX Ubiquitous coverage OFDM MIMO Higher Spectrum efficiency Various access technology Low Cost

Terminal

Dual Band Dual Mode

Multi Band Multi Mode Multi Media

Software Defined Radio Online Reconfigurable

Converged Intelligent Integration

Time
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
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RAN Evolution Trends


WiFi UMA/WiMAX

3GPP

UMTS

WCDMA and CDMA2000 have very similar RAN migration roadmaps.

3GPP2

CDMA2000

Source: Qualcomm

HUAWEI TECHNOLOGIES CO., LTD.

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Core Network Evolution Trends


Legacy MSC (R99) Softswitch MSC (R4)/LMSD
MSC Server MSC Server

IMS/MMD (R5/R6)
CSCF MGCF MGCF

MISUP
MSC MSC

TDM

Divided into MSC Server & MGW

H.248
MGW

SIP-T

SIP

H.248
MGW

H.248
MGW

H.248 IP
MGW

TDM/IP

PSTN

CDMA BSS/ UMTS RAN

PSTN

CDMA BSS/ UMTS RAN

PSTN

CDMA BSS/ UMTS RAN

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

CS (+ PS)

CS + IMS (+ PS)

IMS (+ PS)

HUAWEI TECHNOLOGIES CO., LTD.

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GSM Market Growth


Forecast of MENA Subs
140 120
Subs(Million)

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2004 2005 2006 2007 2008 2009 Total Subs Annual Change
Annual Change(%)

100 80 60 40 20 0

Source: Informa

Source: EMC World Cellular Database, Dec 2004

The number of GSM subscribers will exceed 2 billion by the end of 2007 Lower End-to-End cost is the main strength of GSM networks ME&NA is still the fastest growing mobile market Voice and SMS are and will still be the main source of revenue for quite a long time

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3G, a new engine to improve ARPU


Subscribers (Million)
350 300 250 200 200 150 100 50 0 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08

Number of networks
400

Number of Subscribers Number of Networks

350 300 250

44.6 millions Subs 83 UMTS networks

150 100 50 0

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.
Source: www.3gtoday.com

Today, there are 108 commercial WCDMA operators in 47 countries. The majority are enabling HSDPA in their networks as the new baseline for 3G globally (www.gsacom.com ) Green 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 their 2.5G data services There 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 gathers momentum in the MENA, especially in the Gulf countries like UAE, Kuwait, Bahrain, Oman, etc

HUAWEI TECHNOLOGIES CO., LTD.

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Migration Opportunities and Challenges

How to balance 2G Network Expansion versus New 3G Service Launch? How to deploy UMTS step by step ? 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 8

TCO Saving in Lifecycle


80000 70000 60000 50000 40000 30000 20000 10000 0

CAPEX OPEX
(k EUR)

CAPEX 38% OPEX 62% CAPEX OPEX

year 1

year 2

year 3

year 4

year 5

year 6

year 7

year 8

OPEX represents more than half of the total cost of ownership. Rental, power consumption, leased lines and human resources are major parts of OPEX

TCO reduction is generally Crucial, especially at this stage of 3G deployment


HUAWEI TECHNOLOGIES CO., LTD. Page 9

year 9

Optimized Migration Plan


Shared Core Networks save CAPEX, OPEX and Improve Quality

As a considerable step towards 3G deployment, we recommend GSM operators to adopt R4 Soft-switch architecture whenever they are: Deploying a new GSM network for a new license Expanding the core network for an existing GSM network

Swapping legacy GSM MSC

Huawei Mobile Soft Switch and Packet CN achieve 2G/3G Convergence


HUAWEI TECHNOLOGIES CO., LTD. Page 10

Optimized Migration Plan


New Technologies Reduce TCO in 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
Pico Node B Mini Node B
Distributed NodeB

Macro indoor

Macro Outdoor

RRU

Optical Fiber CPRI BBU 19 inch box

HUAWEI TECHNOLOGIES CO., LTD.

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Optimized Migration Plan


Balanced Transmission Cost and QoS with Hybrid Transmission
E1 for CS Services and High QoS PS services

E1

RNC

IP network

Node B

IP Network for best effort PS services


Balance of transmission cost saving and QoS guarantee Most efficient transmission solution for HSDPA
Transmission Resource Whole price 19200/year 5760/year

E1 Transmission Hybrid IP Transmission Unit Price: E1: 4800/year, ADSL:480/year

4E1 2*ADSL + 1E1

40%-80% Transmission rental can be saved!


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Optimized Migration Plan


Go Broadband today with HSDPA

Cost per MB: HSDPA =35%

Peak data rate: HSDPA = 700%

HSDPA provides lower cost per bit, clearly differentiate 3G from 2G services to the end user.

HUAWEI TECHNOLOGIES CO., LTD.

Page 13

Optimized Migration Plan


Speed Up Introducing Attractive 3G based Applications

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.
HUAWEI TECHNOLOGIES CO., LTD. Page 14

Optimized Migration Plan


Cooperation with suppliers for Affordable and Customized User Terminals

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

U526
U626 U636 U526 E600 E618 customized for Vodafone
E620(HSDPA)

HUAWEI TECHNOLOGIES CO., LTD.

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About Huawei 3G:Global UMTS Applications


Area Contract Reference

Europe

12
P4

Asia Pacific

NTS

Middle East & Africa 7

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.
HUAWEI TECHNOLOGIES CO., LTD. Page 16

About Huawei 3G:Global CDMA2000 Applications


Global Footprint of Huawei CDMA

China

Thailand

Pakistan

Bangladesh

Russia

Mexico

Nigeria

Yemen

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
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HUAWEI TECHNOLOGIES CO., LTD.

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 Bs 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.
HUAWEI TECHNOLOGIES CO., LTD. Page 18

Thank You
www.huawei.com