Moving Forward to 3G Era

CMPak Regional HQ Lahore, Pakistan

July 19th ,2012

Content

Introduction to 3G

3G Standardization
3G Business Model

3G Market in Pakistan

Global Mobile Industry Analysis

Global mobile Subscribers keep fast growing since 2004, and the trend of the whole mobile communication industry is still going on. Global mobile subscribers will reach to 6.2 billion by 2014

July 23, 2012

Telecoms Golden Age The Broadband Drive!

3G

July 23, 2012

Customer Expectations: Better Experience

Simple and Convenient

At anywhere On anytime With any terminal Multi-media Personalized Quality Privacy Security

Content

Enjoyable User Experience

My

July 23, 2012

What comes with 3G?

Mobile Internet

Users in 2010 5,300,000,000

Users in 2010 2,000,000,000

In 2015, 80% internet users will use mobile handset to visit the internet.

Mobile Internet

Users in 2010 46,000,000

Prediction: Users in 2015 3,400,000,000

Huge market potential in Mobile Internet Era

July 23, 2012 6

Fast Growth of Mobile Broadband

Simple Application Rich Mobile Internet Applications

Simple Data Terminal

Powerful Intelligent Terminal Fast Access

2G

~200k

Low Access

3G LTE

2M/100M

Dumb Pipe

Smart Pipe
July 23, 2012 7

Subscribers Expectations: Enhance User Experience

Mobile streaming based Traffic Monitor Web CAM video message video mail Download based Mobile Game Mobile Download Music full track download Voice based Missed call alert IVR Access Call LBS based APP Mobile MAP Mobile following Area SMS RBT based Music Platform RBT Copy Time RBT Message based APP Message forwarding AD in-messaging Mobile News Paper Message signature MMS Album Convergent APP Mobile search MAP search Picture search RBT search Video search E-ticket Mobile payment Ticket booking Mobile bank SMS Weather forecast Register to hospital Remind on calendar Mobile Stock Recommend marketplace

payment

Search engine

LBS

IM

Presence

SS

SMSC

MMSC

WAP GW

Streaming

MSC/CSCF

USSD

Facebook 8

VMS

Twitter

Monitoring Web Cam

July 23, 2012

Important Role of Multimedia Services

Advantage of Multimedia services

helping increase ARPU Keeping customer loyalty and avoid user churn when combined with voice services Communication

Personalized services and multimedia content ensures a better

user experience

July 23, 2012

Development Situation of Mobile Broadband

Broadband Bandwidth: Fixed vs Mobile 1000
FTTH Fixed Mobile LTE+

Throughput(M bps)

100 VDSL ADSL2+ 10 HSPA7.2 1 ISDN 0.1 ADSL HSPA3.6

LTE HSPA+

UMTS
GPRS EDGE

Cable modem

Past

Today

Future Subscribers of mobile broadband will increase at 400 million each year After 2009 , total number is large than fixed at 2010 and will reach 1200million on 2012 --OVUMStrategy

Bandwidth of mobile reach 100 Mbps today, it is equal to fixed access, which is still growing with new radio access technology such as HSPA+ LTE, LTE+

Analytics & Internal

MBB development is more fast than the fixed one

July 23, 2012 10

Broadband Trend in Wireless Technology

WCDMA Evolution GSM/GPRS EDGE 171/384kbps CDMA2000 Evolution CDMA 1X 153kbps 1xEV-DO Rev. 0 DL: 2.4Mbps UL:153.6kbps 1xEV-D0 Rev. A DL: 3.1Mbps UL: 1.8Mbps DO Rev. B (MC DO) DL46.5Mbps UL: 27Mbps WCDMA R99/R4 384kbps HSDPA Phase I 1.8M/3.6Mbps HSDPA Phase II 7.2/14.4Mbps HSUPA 2M/5.76Mbps HSPA+ DL >40Mbps UL >10Mbps LTE DL:100Mbps UL:50Mbps IMT -Advance

4G

WiMAX Evolution IEEE802.16d 20Mbps IEEE802.16e 70Mbps IEEE802.16m DL:100Mbps UL: 50Mbps 2009 2010 2011

2001-2005

2006

2007

2008

Bandwidth in wireless network is increasing 10k100k1M10M100M The interval of 10 times the bandwidth is getting shorter and shorter. The increasing in system capacity and frequency spectrum decreases the bearer cost of packet service every bit. Many kinds of wireless technology co-exists at the same time

July 23, 2012 11

Voice Revenue Down vs. Data Revenue UP

Worldwide Mobile Revenue Forecast
(2011~2014)

Data as % of Total Mobile Revenue

(2011~2015)

Source: Ovum 2009

Voice revenue shows continuous decreasing

while the data revenue keeps stable increasing worldwide

Asia Pacific Mobile Revenue Forecast
Data Revenue will hit 32.86% of total Revenues worldwide in 2014 The ratio of voice revenue of China Telecom was 74% in 2005 and it lowered to 43.2% at the end of 2010 In some developed market , the portion of voice revenue falls to a lower level such as 35% by NTT in 2009

(2011~2014)

Tips

CMPak should focus on non-voice service such as data communication , broadband access and other IP/Packet based services
July 23, 2012 12

Telecom Developing Trend

Explosive growth of PS

In 2010 the global data was 60Billion Bytes that is expected to be double every two year. Packet Data traffic will grow 50 times in 5 years 95% of radio network will be bearing packet traffic.

Voice service goes on

Voice service will be no more dominant position in total revenue Voice service will last for quite a long time Pe

Internet pipe is still the key!

Pipe will contribute much to the income. MBB is the future of telecom industry

With the IT and telecommunication revolution, core network should evolve accordingly

July 23, 2012

13

GSM and UMTS are the Most Popular Technology

531 GSM/EDGE Networks Launched 410 UMTS/HSPA Commercial Networks Launched

100% WCDMA Operators Have Upgraded to HSPA

GSM/UMTS/HSPA have already been the global mainstream of mobile standard

GSM/EDGE: > 4940 Million WCDMA: > 697 Million HSPA: > 450 Million

July 23, 2012

14

UMTS/HSPA is the First Choice of Mobile Operator

Mobile Carrier AT&T NTT DoCoMo China Mobile T-Mobile Telefonica FT

Network GSM/UMTS/HSPA PDC/UMTS/HSPA GSM/TD-SCDMA GSM/UMTS/HSPA GSM/UMTS/HSPA GSM/UMTS/HSPA GSM/UMTS/HSPA GSM/UMTS/HSPA CDMA1x/EV-DO/WiMax GSM/UMTS/HSPA

HSPA is the first choice for mobile data services.

8 operators of Global TOP10 select UMTS/HSPA as its 3G mobile data network

Vodafone TIM Sprint Nextel BT

July 23, 2012

15

HSPA/HSPA+ Dominates the Wireless Broadband

HSPA/HSPA+ dominates in broadband market

HSPA+ era is coming

The worlds first HSPA+ system was launched by Telstra in Australia on February 23rd, 2009.

170 HSPA+ Networks has Been Launched at The End of 2011

Wireless broadband customers worldwide, by technology, 20082015

182 HSPA+ Devices Launched

July 23, 2012

16

Trend: HSPA+ /LTE Will Be The Future of Mobile Evolution

Future
Now Yesterday
UMTS

HSPA

HSPA+

LTE

GSM/EDGE

170 HSPA+ Networks Launched in 69 Countries

2G/3G coexistence is mainstream

182 HSPA+ Devices Launched by 11 Suppliers

July 23, 2012

17

Key Points Of Global Telecom Industry Trend

1. Mobile Broadband: Voice revenue shows continuous decreasing while the data revenue keeps stable increasing worldwide. 2. Key Drivers of MBB: The of fast deployment 3G, 4G and LTE networks,. Innovative subscription plans, Huge shipment of smart terminals and rich multimedia services are the key drivers. 3. Data Service: Global Accelerating Trend of data service, Evolution to high speed data service in some countries may be earlier than we can imagine.

July 23, 2012

18

Content

Introduction to 3G

3G Standardization
3G Business Model

3G Market in Pakistan

Vision For Future Architecture

Current Architecture
Next Generation Architecture

Internet, CP & SP

LE TG/SGAG/IAD Fixed Voice & Data

Switch

Internet WIFI/LAN/xDSL/xPON 2. Access BRAS/SR/Router 3. Switch MSCe MSCs

HLR/AuC AAA

1. Terminal POTS

4. Service & Management Unified Bearer Storage & CDN

BSC/RNC nodeB Mobile Voice & Data

MGW BSC/PCF AC/WAG SGSN

VAS/Service Management Internet

BTS AP

GGSN

PDSN/AGW
3. NSS / MSS

HA
4. OSS/BOSS

Users, Machines

1. UE, MS & ME

2. BSS

Vertical Independent Subsystems

July 23, 2012

20

Unified

Multiple Accesses Access Layer Fix & Mobile Access Layer

All-IP, Open, Flat & Converging Layers

Data

Base

Unified Control

Center

Data Base SHLR

Management

Applications & Rich Services

Standardization Organization of 3G

GSA

ITU-R WP8F
GSMA

MWIF

MSF

ETSI

ITU-T SSG

TTA

ARIB
TTC

UWCC WAPForum TIPHON

IPv6 3G.IP MPEG Forum

TIA
3GPP2

3GPP

CWTS TTC

TTA CWTS T1P1

IETF
LIF

Parlay

ARIB
W3C

3GCF

July 23, 2012

21

International Standardization

ITU (International Telecommunication Union)

Radio standards and spectrum ITUs umbrella name for 3G which stands for International Mobile Telecommunications 2000

IMT-2000

National and regional standards bodies are collaborating in 3G partnership projects

ARIB, TTA, TTC, T1, ETSI .. etc

3G Partnership Projects (3GPP & 3GPP2)

Focused on evolution of access and core networks

July 23, 2012

22

3GPP

The 3rd Generation Partnership Project (3GPP) is a collaboration between groups of telecommunications associations, known as the Organizational Partners. The initial scope of 3GPP was to make a globally applicable 3G mobile phone system specification based on the GSM specifications within the scope of the IMT-2000 project of ITU. Later on GPRS, EDGE, IMS was also included.
3GPP standardization encompasses Radio, Core Network and Service architecture.

The project was established in December 1998.

July 23, 2012 23

3GPP Organizational Partners

The six 3GPP Organizational Partners are from Asia, Europe and North America.
Their aim is to determine the general policy and strategy of 3GPP. Approval and maintenance of the 3GPP scope. Take the decision to create or cease a Technical Specification Groups and so on.

3GPP Organizational Partners Organization Association of Radio Industries and Business(ARIB) Alliance for Telecommunication Industry Solution (ATIS) China Communication Standard Association (CCSA) Base region Japan

USA

China

Europe Tlcommunication Standard Institue(ETSI)

Telecommunication Technology Association (TTA) Telecommunication Technology Committee (TTC)

Europe

Korea

Japan

July 23, 2012

24

3GPP Standards
21 series 22 series 23 series 24 series 25 series 26 series 27 series 28 series Requirements specifications Service aspects Technical realization Signalling protocols UTRA aspects Codecs Data Reserved for future use 29 series 30 series 31 series 32 series 33 series 34 series 35 series Signalling protocols (NSS) Programme management UIM (User Identity Module) Operation and Maintenance Security aspects Test specifications Algorithms

July 23, 2012

25

Specification groups

3GPP specification work is done in Technical Specification Groups (TSGs) and Working Groups (WGs).

There are four Technical Specifications Groups:

GERAN (GSM/EDGE Radio Access Network): GERAN specifies the GSM radio technology, including GPRS and EDGE. RAN (Radio Access Network): RAN specifies the UTRAN and the E-UTRAN. SA (Service and System Aspects): SA specifies the service requirements and the overall architecture of the 3GPP system. It is also responsible for the coordination of the project. CT (Core Network and Terminals): CT specifies the core network and terminal parts of 3GPP. It includes the core network - terminal layer 3 protocols.

The 3GPP structure also includes a Project Coordination Group, which is the highest decision-making body. Its missions include the management of overall timeframe and work progress.
July 23, 2012 26

Project Coordination Group

July 23, 2012

27

Technical Specification Group

TSG CN (Core Network)

TSG SA
WG1 (Services) WG2 (Architecture) WG3 (Security) WG4 (Codec) WG5 (Telecom Management)

WG1 (MM/CC/SM) (Iu) WG2 (MAP/GTP/CAMEL) WG3 (Interworking with external networks)

TSG RAN

WG1 (Radio Layer 1) WG2 (Radio Layer 2 and Radio Layer 3 RR) WG3 (Iub, Iur, Iu, UTRAN O&M requirements) WG4 (RAN performance, protocol aspects) AHG1 (Ad-hoc group on ITU (internal) coordination)

TSG CT
WG1 (Mobile Terminal Conformance testing) WG2 (Terminal Services & Capabilities) WG3 (USIM)`

July 23, 2012

28

Spectrum Allocations for Third-Generation Systems

Work started in 1992 by World Administrative Radio Conference (WARC) of ITU. A band around 2GHz was identified for the future IMT-2000. Five air interfaces were defined for 3G based on either CDMA or TDMA. The original target of the third-generation process was a single global IMT-2000 air interface. The same WCDMA air interface is deployed in Europe, Asia, Australia, in North and South America and in Africa. Most of the WCDMA deployments use the identified IMT-2000 spectrum around 2 GHz.

19201980 MHz for uplink 21102170MHz for downlink.

The first licences for that spectrum were granted in Finland in March 1999, followed by Spain in March 2000. WCDMA will also be deployed in the existing second-generation frequency bands currently used by GSM or CDMA. That approach is called refarming.
July 23, 2012 29

3G Spectrum Definition in 3GPP

Band 1 2 3 4 5 6 7 8 9 10 -Uplink 1920 MHz 1980 MHz 1850 MHz 1910 MHz 1710 MHz 1785 MHz 1710 MHz 1755 MHz 824 MHz 849 MHz 830 MHz 840 MHz 2500 MHz 2570 MHz 880 MHz 915 MHz 1749.9 MHz 1784.9 MHz 1710 MHz 1770 MHz -Downlink 2110 MHz 2170 MHz 1930 MHz 1990 MHz 1805 MHz 1880 MHz 2110 MHz 2155 MHz 869 MHz 894MHz 875 MHz 885 MHz 2620 MHz 2690 MHz 925 MHz 960 MHz 1844.9 MHz 1879.9 MHz 2110 MHz 2170 MHz -Duplex Mode FDD FDD

FDD
FDD FDD FDD FDD FDD FDD FDD --

July 23, 2012

30

Standards
Version Phase 1 Phase 2 Release 96 Release 97 Release 98 Release 99 Release 4 Release 5 Release 6 Released 1992 1995 1997 Q1 1998 Q1 1999 Q1 2000 Q1 2001 Q2 2002 Q1 2004 Q4 Info GSM Features GSM Features, EFR Codec, GSM Features, 14.4 kbit/s User Data Rate, GSM Features, GPRS GSM Features, AMR, EDGE, GPRS for PCS1900 Specified the first UMTS 3G networks, incorporating a CDMA air interface Originally called the Release 2000 - added features including an All-IP Core Network[ Introduced IMS and HSDPA Integrated operation with Wireless LAN networks and adds HSUPA, MBMS, enhancements to IMS such as Push to Talk over Cellular (PoC). Focuses on decreasing latency, improvements to QoS and real-time applications such as VoIP . This specification also focus on HSPA+ (High Speed Packet Access Evolution). First LTE release. All-IP Network (SAE). Introduce OFDMA and MIMO based radio interface, not backwards compatible with previous CDMA interfaces. Dual Cell HSDPA. SAEs Enhancements, WiMAX and LTE/UMTS Interoperability. Dual-Cell HSDPA with MIMO , Dual Cell HSUPA. LTE Advanced fulfilling IMT Advanced 4G requirements. Backwards compatible with release 8 (LTE). Multi-Cell HSDPA (4 carriers). Advanced IP Interconnection of Services. Service layer interconnection between national operators/carriers as well as third party application providers. Content still open (as of January 2012). July 23, 2012
31

Release 7

2007 Q4

Release 8 Release 9 Release 10 Release 11 Release 12

2008 Q4 2009 Q4 2011 Q1 Planned to 2012 Q3 Planned

3GPP Versions Released Records

3GPP Frozen Time WCDMA Mbps LTE/LTE-A Mbps SF DL UL DL R99 Dec 99 0.384 0.384 Rel-4 Mar 01 0.384 0.384 Rel-5 Mar 02 14.4 0.384 Rel-6 Mar 05 14.4 5.76 Rel-7 Dec 07 21.6/28.8 * 11.52 100+ Rel-8 Mar 09 42 or 84** 11 or 22 1000 Rel-9 Mar 10 Rel-10 Mar 11

UL
HSDPA, IMS 16QAM DL BPSK UL 2ms TTI DL 10ms TTI UL HSUPA, MBMS, WiLANUMTS 16QAM DL 2 ms TTI 2 SF2 + 2 SF4 UL

50
HSPA+ Phase I, LTE/SAE Feasibility Started 2X2 MIMO DC HSPA+ Phase II, LTE/SAE 1st Version
EPC Basic Framework defined

500
LTE/SAE Enhance, LTE-Adv Feasibility Study Started

Main Function

CS & PS, R99 Radio Bearers 10ms TTI

BICC, TDSCDMA QPSK DL BPSK UL

LTE-Adv

* 21.6Mbps using 64QAM and 28.8Mbps using 2*2 MIMO or DC * * HSPA+ = 42 Mbps @ 64QAM + MIMO, 84 Mbps @ DC-HSDPA via change MIMO from 2X2 to 4X4 or use 4 Carriers .

July 23, 2012

32

Network Evolution
2G 2.5G R99 R4 R5 R6 R7

First digital Cellular Technology deployed in 1991 Pure CS like POTS/ISDN in Land Line world Offer CSD services similar to analog modem Offers data rates 2400/4800/9600/14400bps
HLR DB MAP Other PLMN GMSC MAP HLR

HSCSD is Channel Bundling CSD Bundles up till 4 GSM TS to achieve 38.4Kbps

MSC/VLR A

BSS

BSS

July 23, 2012

33

Network Evolution
2G 2.5G R99 R4

(Cont..) R5 R6 R7

First deployed in 1999. A separate independent network to GSM using the same modulation/Channeling and Time Slot structure.

Packet Switched not Circuit Switched , no need dedicated channel for bandwidth transmission.
Provide a IP bear for mobile network
CS Domain HLR DB MAP Other PLMN GMSC MAP MAP GGSN GTP PS Domain MAP HLR IP Internet

MSC/VLR A Gb

SGSN

BSS

EDGE use the same channel/bandwidth /TDMA as GPRS. Physical layer uses 8PSK instead of GMSK
BSS

July 23, 2012

34

Network Evolution
2G 2.5G R99 R4

(Cont..) R5 R6 R7

Iu-CS interface based on ATM and Iu-PS interface based on ATM/IP Air interface adopts WCDAM interfaces providing higher access rates. AMR introduces as voice codec. CS network adopts TDM as inter NE interface
CS Domain HLR DB MAP Other PLMN GMSC MAP MAP GGSN GTP PS Domain MAP HLR IP Internet

MSC/VLR Gb

SGSN Iu-PS Iu-CS

BSS

BSS

RNS

July 23, 2012

35

UMTS Network Architecture

Core Network

Radio Network System

RRC

User Equipment

UMTS System is consisting of Core Network (CN), UMTS Terrestrial Radio Access Network (UTRAN) and User Equipment (UE)

July 23, 2012

36

Network Structure of R99

1. Brand UTRAN is introduced in initial phase of 3GPP R99, to reduce the influence of UTRAN on CN. Introduction policy of CN is developed from GSM/GPRS CN. 2. In 3GPP R99, one RNC can only connect one MSC or SGSN, resulting in low utilization ratio of resources. 3. UTRAN is based on WCDMA radio interface technology. Its signal bandwidth is 5 MHz. Its code chip rate is 3.84 Mbps. Its cell downlink service bandwidth is about 2 M 4. From R99 version, WCDMA has differences from GSM/GPRS in mobile management, including soft handover, Iur interface, re-positioning, handover and reselection between 2/3G. 5. UTRAN in R99 versions adopts TDM and ATM.
July 23, 2012 37

Network Evolution
2G 2.5G R99 R4

(Cont..) R5 R6 R7

Control and bear separate in CS domain. CS domain adopts IP and ATM apart form TDM interface BICC introduced QPSK DL and BPSK UL

CS Domain MAP HLR DB MAP Other PLMN GMSC Server HLR MAP MAP IP Internet

GGSN GTP PS Domain

MGW MGW

MSC Server SGSN Iu-PS

BSS

Iu-CS

BSS

RNS

July 23, 2012

38

R4 Changes
1. During the evolution from R99 to R4, CN realizes the separation of CS domain control layer and transmission layer. 2. R4 version has no large change in radio access. 3. UTRAN in R4 versions adopts TDM and ATM.

PSTN PSTN

PSTN

Gi

Gp

T-SGW
Mc

R-SGW GGSN

CSMGW

GMSC server
C
Nc Mh

Gc Gn

PSTN Nb

HSS(HLR) H AuC
D

EIR
F Gf Gs

Gr

VLR
B

E Nc

VLR
B

MSC server
Mc

MSC server
Mc

SGSN CN

CS-MGW
Nb

CS-MGW
A Gb IuPS

4. In 3GPP R4, one RNC can only connect one MSC or SGSN, resulting in low utilization ratio of resources.
5. CN in R4 version successfully introduces the base of IP transmission technology.

IuCS

BSS BSC
Abis

RNS RNC
Iub
Iur

RNC Node B

BTS Um

BTS

Node B
cell

Uu ME
SIM-ME i/f or Cu

SIM

USIM
MS

July 23, 2012

39

Network Evolution
2G 2.5G R99 R4 All IP Interfaces PS domain overlaid with IMS HSDPA introduced

(Cont..) R5 R6 R7

IMS Domain SLF S-CSCF MRFC

CS Domain

HSS DB MAP

MGCF MAP IM-MGW P-CSCF

MRFP Internet IP

Other PLMN

GMSC Server

HSS MAP MAP

GGSN GTP PS Domain

MGW MGW

MSC Server SGSN Iu-PS

BSS

Iu-CS

BSS

RNS

July 23, 2012

40

Network Structure of R5

R5 CN adds IMS (IP Multimedia Subsystem)) basing on SIP (Session Initiation Protocol)
In R5, Iu-Flex is introduced between CN and UTRAN, realizing the UTRAN resources sharing among several nodes of one operator. It saves the cost on UTRAN and substantially develops the network sharing technology.
CS MGW

IMS

CSCF

SGW

NO.7

PSTN

IMS-MGW

MGCF

PS GMSCS/ VLR HSS GGSN Internet

In R5 version, HSDPA is introduced. It adopts 16 QAM modulation mode, which greatly increases spectrum utilization ratio. Cell downlink peak rate reaches 14 Mbps. In the field, the system support. 3GPP UTRAN in R5 version also introduces IP transmission technology. IP transmission is a selective technology of UTRAN and it makes UTRAN transmit based on IP core switching network. As a result, flexibility of transmission networking is increased and construction cost of operators is reduced. IP transmission is also UTRAN transmission development trend.
July 23, 2012 41

MGW

MSCS/ VLR

SGSN

RAN

Network Evolution
2G 2.5G R99 R4

(Cont..) R5 R6 R7

I-WLAN WAG WLAN PDG CS Domain Other PLMN GMSC Server HSS MAP MAP AAA AAA Server HSS DB MAP MGCF MAP IM-MGW P-CSCF IP SLF S-CSCF MRFP MRFC

IMS Domain

Internet

GGSN GTP PS Domain

MGW MGW

MSC Server SGSN Iu-PS Iu-CS

Interworking with WLAN and other multimedia network. HSUPA & MBMS Services introduced Capability of IMS network enhances to support conference Services.

BSS

RNS

July 23, 2012

42

Unified Packet Core Network Structure

2/3G Core Network
1 Two level architecture of user plane i.e. SGSN & GGSN plane. 2 control plane and user plane together 3 TDM /ATM adopted 1 Flat core network 2 control and bearer separated partially 3 ALL IP bearer 1 Flat Core Network 2 Control and bearer separation 3 ALL IP bearer

3G DTS Mode Core Network

EPC Architecture

ATM /TDM

SGSN GGSN

GGSN

SAE-GW MME
eUTRAN

SGSN
UTRAN

GERAN /UTRAN

IP
ATM/ TDM

IP

IP

SGSN 2/3G GGSN 3G-DTS SAE-GW LTE/EPC

Unified IP bearer mode Unified flat network Unified control and bearer separation

GSM

Non-3GPP TDSCDMA LTE

Unified Core Network

July 23, 2012

43

Flatter Architecture
GGSN GGSN GGSN/ SAE-GW

SGSN SGSN

SGSN /MME

RNC

RNC RNC

RNC

eNodeB

NodeB NodeB NodeB NodeB eNodeB

Step 1 DTS is introduced in PCN: SGSN is in charge of signaling processing only, packets are transferred from GGSN to RNC directly. Step 2 Flatter architecture in RAN: RNC and NodeB is integrated to eNodeB for LTE and HSPA+

July 23, 2012

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Smooth Evolution of Mobile Network

Service Network Voice Service Network (PSTN etc.) Packet Service Network (Internet, Operator data service)

Core Network IMS

Circuit Core

Legacy Packet Core

Evolved Packet Core

2G

3G Phase Out over time

LTE

Non-3GPP

LTE 3G 2G To pure EPS

July 23, 2012

45

Leverage Existing Equipment for Smooth Migration via ZTE Uni-RAN and Uni-Core Solution
ZTE MSCS ZTE MGW ZTE MSCS ZTE MGW ZTE MGCF ZTE IM-MGW

CS

CS Core

IMS Core
SGi ZTE uMAC: MME ZTE HSS ZTE xGW: SAE-GW

Core
EPC+2/3G PS
ZTE GGSN ZTE HSS/HLR ZTE uMAC: SGSN+MME ZTE xGW: GGSN+SAE-GW

ZTE HLR
ZTE SGSN

PS
Core
Gb/A Iu

EPC

Gb/A

S1

Iu

S1

UTRAN/GERAN

LTE

UTRAN/GERAN

LTE

IP is supported by legacy network, Multi-access is supported by EPC,

Resource is shared by each RAT flexibly, Dynamical capacity transfer from 2/3G to LTE.

July 23, 2012

46

The Future Belongs to Mobile Broadband

1. Open Standard: 3GPP is focusing on 3G evolution of GSM & UMTS standardization. 2. Future is All-IP : Open, Flat & Converging Layered Architecture.

3. Smooth Evolution to the future Network: This can be guaranteed by unified hardware platforms providing smooth evolution to the future network architecture.

July 23, 2012

47

Content

Introduction to 3G

3G Standardization
3G Business Model

3G Market in Pakistan

Overview of 3G Business Model Evolution

Phases
3G Business Model Revolution New Opportunity

Mobile Handset Apps Application Business Model

Cloud Computing Internet of Things

Internet Access on Laptop

Mobile VoIP

Access Charge Service Charge

Portal of Digital-to-real Cloud Computing Connection Revenue Sharing M2M Connection

00:00

Terminal
App 1

USB Dongle 3G Module Inside

App 2

App 5

Smart phone

Thin Terminal

M2M
Time

July 23, 2012

49

Telcos Role in the Coming 3G Era: Pipe + Platform

IT Industry
PC PC Game Web E- commerce WLAN Internet LAN Film Telco Relevant Industries SP/CP

Media Industry
Newspaper TV
Integration of Developers

Music

Terminal

2G
PSTN 3G Agriculture Finance Government

Transport

Telecom Industry

Broadband

Manufacture

Integration of Customers

Others

Telco would be an open platform for telecom services instead of Dumb Pipe. Telco would integrate unique abilities of SP/CP, terminal vendors, relevant industries to develop service timely. Telco would integrate customer segmentations by understanding different customer patterns
July 23, 2012 50

New Business Model : Supermarket

SP, CP =Vendors Operator = Supermarket Brands Users

Consumers

SP

CP

Enterprises

Partners

July 23, 2012

51

Challenge Faced by the Operator and Vendors

P2P Throughput

Other Services

Simple monthly charging drives P2P applications, which are occupying lots of Internet bandwidth. So, only expansion does not solve the problem. Few subscriber use most of the network resource . Some P2P abuse users affect other user's experience. Service traffic control becomes the key of success for operators. refined management of different users is inevitable.

To be a dump pipe Need to seek a new operation mode

July 23, 2012 52

Reconstruct the Value Chain

Value
Indispensable sector Terminal Provider Operator Service Provider

Tri-polarized Value Chain

Portal of Digital-to-Real

Dual-polarized Value Chain

Pipe

Industry Chain

With own portal, telecom operators would have the same on value distribution, so that enable introducing new revenue model

July 23, 2012

53

Take Control Of Value Chain

Users

LTE

Operator
Enterprise

ISP

PCRF/SPR
Gx CDMA /EVDO

UBAS
Reporting Interface

OCS/OFCS
Gy/Gz WAP/MMS

Users

ISP

Users

UMTS/ GPRS ZXUN xGW(GGSN/PDSN/HA/SAE-GW)

ISP

Deep Packet Inspection

Users
Fixed/ WiMAX/ WLAN In-Built High Performance DPI Engine Other Services

ISP

GW/DPI
PDSN/SAE-GW Integrates dedicated DPI chips for content charging and service control, and provides PCC features.

PCRF/SPR
PCRF and SPR provide dynamic policies management and decision based on subscriber and service information.

UBAS
UBAS analyze user service behavior and statistics of SP and services to provide the information for Fine operation.

OCS/OFCS
OCS/OFCS provide charging management based on L3~L7 service content.

July 23, 2012

54

Fair Usage of the Network Resource Policy

User 2 8% User 3 12% User 4 10%

User 3 20% User 2 19%

User 4 19%

FUP
User 1 52% Other 18%

User 1 24%

Other 18%

Few user Occupy Most Resource

Fare Usage of the Network Resource

Issues Faced
PCRF Usage Policy

Normal Solution

Some time based package without throughput limit attract lots of user for operators. Few users occupy most network resource by some service(like P2P) Operators faced huge pressure for n/w expansion, but with almost no revenue increase

When user consumed less than threshold ,user got his/her pre signed Qos Level User 1 Internet/ISP GW User 2 By ZOOM, Operator can dynamic adjust user QoS level by usage of the network resource, realize the FUP When the usage more than the threshold ,lower the user Qos Level so as to control the usage of the resource

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Known the Network Better Know Your Users Better

Busy cell detection

Service Control

Finding hot spot by cell analysis

Provide Qos indication to PCC according to cell state

Expansion more Precisely

PCRF Policy: Limit P2P service in cell A CELL A UBAS Analysis 1: Location: Cell A-Business Center P2P consumes too much bandwidth interfering work efficiency UBAS Analysis 2: Location: Cell A-Business Center Network is in a light load CELL B UBAS Analysis 3: Location: Cell B-Square Traffic congestion affects user experience UBAS Report: Expand Capacity in cell B GW: Limit P2P service in cell A

PCRF Policy: Allow P2P service in cell A GW: Allow P2P service in cell A

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July 23, 2012

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How To ZOOM In to Your Network?

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How To ZOOM In to Your Network?

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How To ZOOM In to Your Network?

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Optimize and Accelerate Your Contents

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3G Providing A New Business Model

1. Operate Network Like Super Market: Provide Unified Vendor Management , Unified Portfolio, Unified Brand. 2. Operate the Network Intelligently: Know your internet pipe, share the revenue with the SP/CP.

3. Implement Police control : Fair Usage for Every one, Treat VIP as VIP. Make the contents as close as possible to access.

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Content

Introduction to 3G

3G Standardization
3G Business Model

3G Market in Pakistan

Basic Information of Pakistan

Population : 190,291,129 (July 2012 est.) Annual growth rate: 1.551% (2012 est.) Age structure 0-14 years: 35.4% 15-64 years: 60.4% 65 years and over: 4.2% Religions : Muslim 95% (Sunni 75%, Shi'a 20%), other (includes Christian and Hindu) 5%
Source: CIA World Factbook Graphs to be substituted by specific case

Population grows very fast, youth is still the important group Mobile penetration has a large potential space. In Asia, penetration in a lot of countries have exceed 100%
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UMTS Subscription Potentials in Pakistan

Million

Source: Ovum, ZTE Analysis, 2012

Rapid growth from the second year, reaching to 13.78 million in 2017

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Market Share of Mobile Subscribers in the Country

3G will be the key driver for CMPak to be the leading operator in Pakistan.
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Decreasing Mobile ARPU

Annual Mobile ARPU Trend
$250
233 200 182 168 156 158 150 143

$200

$150

128 112

138

Pakistan Asia-Pacific World

$100

100

93

88

85

82

$50

39

35

28

24

22

21

21

21

$0
2008 2009 2010 2011 2012 2013 2014 2015
Source: Ovum, 2012

ARPU decreased fast, 3G service can prevent the drop of mobile blended ARPU, and may improve ARPU after 3 years
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Competitors analysis for CMPak

Operators
Cover

Market Position
Market Leader all segmentation high-end market

Competition Advantages

Good coverage and network quality Good services Strong brand influence Low tariff Attractive promotion

Dominate Widely

expand in middle-low end market

Market Challenger
Go

all out to snatch incremental low-end market

Penetrate

into middle-end market

Market Challenger
Low

market share

Low tariff Launched Big Promotion

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SWOT of CMPak
Opportunities & strengths

Weaknesses & Threats

Fastest subscriber base Fast growing mobile needs . Emerging Broadband data market with the auction of 3G license in the near future.

Low ARPU market Investment pay-off pressure

Market Growth

The 4th position in market share, but user are increasing very rapidly.

Pakistan is one of the most vibrant and competition telecom market in the world

Competitive Environment

Fixed local loops for data service are not prevalent

Competitors3G to be launched, time window is short

Stable regulatory environment with a clear licensing framework

Same environment to competitors

Regulation

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To be or not to be , 3G is Coming!!!
1. 3G has Huge Potential in Pakistan: Pakistan being a young nation provides great opportunities for 3G. Big competition expected among Telecom operators.

2. 3G improve ARPU: Operators can provide MBB services that will help them to control the churn and stabilize ARPU.

3. 3G can increase user base for CMPak : The operator can increase its subscriber base via providing innovative MBB services.

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Thanks!

ZTE Corporation. All rights reserved.