Transcript Slide 1

2.5G 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
Integration
Coverage
Capacity
New Services
Broadband
Best Connected
User needs and
Services oriented
Non-Voice operation
$
Transfer to content
Voice operation
Pay for Content
Pay for
media
access
Medium=Service
M2M etc.
~2002
1990
2010
Access business and Services business break up
Source: HUAWEI
HUAWEI TECHNOLOGIES CO., LTD.
Page 2
Wireless Network Trends
Unified
Network
Architecture
Soft-switch
IP CN
IMS
IP UTRAN
Flat
Enhanced IMS
E2E IP
RNC LTE
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
Converged
Software
Defined Radio
Online
Reconfigurable
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
HUAWEI TECHNOLOGIES CO., LTD.
Page 3
RAN Evolution Trends
WiFi
UMA/WiMAX
3GPP
UMTS
WCDMA and CDMA2000 have very
similar RAN migration roadmaps.
3GPP2
Source: Qualcomm
CDMA2000
HUAWEI TECHNOLOGIES CO., LTD.
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Core Network Evolution Trends
Softswitch MSC (R4)/LMSD
Legacy MSC (R99)
IMS/MMD (R5/R6)
CSCF
MSC Server MSC Server
MGCF
MGCF
MISUP
MSC
MSC
TDM
Divided
into MSC
Server &
MGW
CDMA BSS/
UMTS RAN
PSTN
H.248
MGW
PSTN
SIP-T
TDM/IP
SIP
H.248
MGW
CDMA BSS/
UMTS RAN
H.248
MGW
H.248
IP
PSTN
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)
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IMS (+ PS)
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MGW
CDMA BSS/
UMTS RAN
GSM Market Growth
140
35.00%
120
30.00%
100
25.00%
80
20.00%
60
15.00%
40
10.00%
20
5.00%
0
0.00%
Annual Change(%)
Subs(Million)
Forecast of MENA Subs
2004 2005 2006 2007 2008 2009
Total Subs
Annual Change
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)
Number of networks
350
400
300
250
Number of Subscribers
350
Number of Networks
300
250
200
200
150
150
44.6 millions Subs
83 UMTS networks
100
100
50
50
0
0
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
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
Dec-08
 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 …
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Page 7
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”
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TCO Saving in Lifecycle
80000
70000
60000
50000
40000
30000
20000
10000
0
CAPEX
OPEX
CAPEX
38%
OPEX
62%
(k EUR)
OPEX
year 9
year 8
year 7
year 6
year 5
year 4
year 3
year 2
year 1
CAPEX

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
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Page 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.
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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.
Macro indoor
Macro Outdoor
•Open CPRI interface; lower industrial chain cost
•Distributed Node B; easier site acquisition, installation and
transportation
Pico Node B
Mini Node B
Distributed
NodeB
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
Node B
IP network
RNC
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
E1 Transmission
4E1
€ 19200/year
Hybrid IP Transmission
2*ADSL + 1E1
€ 5760/year
Unit Price: E1: €4800/year, ADSL:€480/year

40%-80% Transmission rental can be saved!
HUAWEI TECHNOLOGIES CO., LTD.
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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.
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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.
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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
HUAWEI TECHNOLOGIES CO., LTD.
E618 customized
for Vodafone
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E620(HSDPA)
About Huawei 3G:Global UMTS Applications
Area
Europe
Contract
Reference
12
……
P4
Asia Pacific
9
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
Mexico
Russia
Pakistan
Nigeria
Bangladesh
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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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.
HUAWEI TECHNOLOGIES CO., LTD.
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Thank You
www.huawei.com