Executive Summary (Final Report)

For LTE Deployment Strategy, Planning & Designing Project

Project : Consultancy Service for Design and Planning of Mobifone 4G Network (17.1.11)

May 12, 2017

Table of Contents

1. LTE Designing & Planning Summary

1.1 Current Status Analysis
1.2 LTE Design Process & Methodology
1.3 LTE Design Criteria Setup
1.4 LTE eNB Dimensioning
1.5 LTE EPC Dimensioning
1.6 LTE Backbone & Backhaul Dimensioning

2. Innovative Service to get competitiveness

2.1 Mobile Broadcasting Platform
2.2 IoT Tech & Platform
2.3 700MHz Spectrum Reuse

3. Suggestion: Long Term Partnership

3.1 K-EXIM Loan Program
3.2 Integrated NMC Deployment

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I. LTE Designing & Planning Summary 1.1 Current Status Analysis
3 major operators in Vietnam are leading mobile market and are building a concrete market position

Geographical Information Mobile Subscriber , Market Share & ARPU

Concrete mobile market share by major 3 operators
- 3 Leading Players: Viettel, Mobifone, VinaPhone

Subscriber Financial
Operator
(Mil, 2016E) M/S ARPU
Viettel 51.3 37.3% US3.7
Mobifone 46.5 33.8% US3.9
Vinaphone 31.7 23.1% US3.9
Vietnamobile 4.5 3.3% -
Gmobile 3.6 2.6% US1.9
Total 137.6 - -
Vietnam Statistics
Source: GSMA Intelligence (2017.2), SKT Analysis
Area (Km2) 330,967
Mobile Spectrum
Region 6
Province/City 63
Pop.(1,000) 91,713
Source: Statistical Yearbook
of Vietnam (2015)

Leading 3 operator total spectrum volume is similar

New Spectrum for 4G/5G 2.6GHz band will be auctioned in 2017.3Q
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I. LTE Designing & Planning Summary Traffic & Subscriber 1.1 Current Status Analysis
Ho Chi Minh and Southern region are very important in terms of traffic and no. of subscriber.
Mobifone needs to keep no. 1 subscriber status in these areas with asymmetric investment (Need high investment)
3G UMTS Data Traffic Analysis Subscriber Distribution Analysis

Mobifone has 22,027 sites for 3G service Mobifone Subscriber is 22.4 million (active user)
- Total HSDPA data during busy hour is 206.9 TB in Mobifone 3G network - It is 24% of total Vietnam population which is 92.5 million
Traffic per subscriber is high in Northern 1 and South west Subscriber/Population in Ho Chi Minh is 71%
- HSDPA data per cell : 1.63 GB, HSDPA data per subscriber : 9.7 MB - Main cities in middle and south area have high subscriber/population

Site HSDPA_DATA HSDPA_Data/Subs. Region Name Pop(1,000) Subs. Sites Subs./Pop

Region Name
Count (TB) (MB) Northern 1 12,179 1,397,505 3,257 11%
Northern 1 3,096 14.9 11.2 Northern 2 29,262 2,489,413 4,764 9%
Northern 2 3,954 18.9 8.0 Midle 13,553 3,993,147 3,892 29%
Midle 3,693 33.3 8.7 South east 12,697 3,907,679 3,889 31%
South east 3,788 31.6 8.5 HCM 8,317 5,915,184 3,936 71%
HCM 3,746 55.6 9.9 South west 16,507 4,706,957 4,007 29%
South west 3,750 52.6 11.7 Total 92,515 22,409,885 23,745 24%
Total 22,027 206.9 9.7

Site HSDPA_DATA HSDPA_Data/Subs. Region Name Pop(1,000) Subs. Sites Subs./Pop

Region Name Middle Da Nang 1,014 825,927 470 81%
Count (TB) (MB)
Ha Noi 2,341 11.7 11.7 Middle Quang Nam 1,462 609,045 437 42%
Northern 1 South east Ba Ria Vung Tau 1,100 576,055 423 52%
Quang Ninh 319 2.7 12.7 HCM Tp Ho Chi Minh 8,317 5,915,184 3,936 71%
Ben Tre 275 3.1 10.2 South west Can Tho 1,301 671,871 408 52%
Ca Mau 300 1.3 13.5 South west Dong Thap 1,730 706,418 412 41%
South west Can Tho 404 7.6 11.9 South west Hau Giang 800 369,817 254 46%
South west Vinh Long 1,058 596,315 310 56%
Dong Thap 413 6.8 10.0
Total 16,782 10,270,632 6,650 61%
Hau Giang 252 5.0 14.2
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[Back-up] Case Study: LTE Market Impact
LTE commercialization is so fruitful in terms of ARPU uplift and Subscriber churn-in

LTE ARPU Uplift Effect Subscriber Churn-In

SKT restored its ARPU to pre-2011 tariff cut levels, In an intense competition, LG U+ get subscriber increase
largely thanks to growth of the higher ARPU LTE subscriber in LTE with aggressive initial coverage roll-out

(Unit: 1,000 won)

National LTE Coverage

Tariff Cut

LTE ARPU is significantly higher that of 2G & 3G.

(Unit: 1,000 won, 13.3Q)
ARPU increase (22%) : 23.2(11.6) 28.3 (12.12)
* LTE ARPU: 43.6(End of 2012) 54% higher compared to average ARPU
1.6 times 1.9 times Market Share Increase(1.7%): 17.7% (11.6) 19.4%(13.06)
44.6 CapEx to Revenue Ratio in 2012: 24% (CapEx 1.7, Revenue 7.0 KRW trillion)
27.7
23.9

LTE 3G 2G
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I. LTE Designing & Planning Summary 1.2 LTE Design Process & Methodology
SKT performed mobifones LTE network design from market forecasting to network entity dimensioning.

LTE Network Design Process

Optimization
Legacy Network Analysis
General Info. analysis Pop. & Area
Current Network Status Acceptance Test
Current Network Configuration
PAT/FAT
Spectrum Allocation
Traffic/subscriber distribution Site Selection
Design Criteria Setup No. of Coverage Site Parameter Design
Competitors status & Simulation
Regulation or Government policy Coverage & Capacity Criteria Yearly Investment Plan PCI, RSI, TAL/TAC
Minimum QoS setup Candidate site
Paging, etc
Call Model for EPC Site Selection
Scenarios for
Backbone/Backhaul No. of Capacity Site
4G LTE Market Forecasting Yearly Investment Plan

LTE Subscriber Forecasting

LTE Data Usage Forecasting
Marketing Polygon & Priorities EPC Dimensioning VoLTE & Virtualization
Service Provisioning Plan
Yearly Investment Plan (EPC) Optional Investment
- VoLTE, IoT, mobile IPTV, etc.

Transport
Dimensioning
Yearly Investment Plan
(BB/BH Router & Switch)

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I. LTE Designing & Planning Summary 1.3 LTE Design Criteria Setup
Mobifone needs to consider multimedia service category as a target service QoS based on user behaviors

Mobile traffic by application category Top 5 Smartphone App. (Southeast Asia)

Needs to know which service is main target to define QoS Top 5 smartphone apps per country based on number of
monthly active users
Mobile traffic by application category
(CAGR 2016 2022) No. Indonesia Malaysia Philippines Singapore Thailand

1 YouTube WhatsApp Facebook WhatsApp LINE

2 WhatsApp Facebook Facebook Messenger YouTube YouTube

3 BBM YouTube YouTube Google Chrome Facebook

4 Google Google Chrome Google Chrome Facebook Google Chrome

5 LINE Google Google Google Google

Top 5 in 2016, 50% mobile traffic has occurred by video

Mobile traffic by application category Per Month (ExaBytes)
category and will be increased to over 70% in 2022
considering 50% CAGR (Compound Annual Growth Rate)

It is reasonable to set multimedia category as a target service

based on user behavior SNS (Facebook, Line, WhatsApp, ..)
service occurs lots of connection but traffic is low Video, SNS,
Web/Portal are main service that users utilize

Vietnam market also shows similar trend:

Multimedia(Youtube, Facebook, Bigolive) and SNS
(Zalo, Facebook Messenger, Viber) are popular in Vietnam

Source: Ericsson Mobility Report -7-

I. LTE Designing & Planning Summary Minimum QoS @ Cell Edge 1.3 LTE Design Criteria Setup
The required minimum Qos for supporting streaming in LTE is DL 2Mbps, UL 256kbps based on SKTs trial test
But it requires 5Mbps DL throughput to provide Full HD streaming service
Required Minimum QoS (based on SKTs test)
Webpage QoS: Initial capacity of pages of representative portal Streaming QoS
Initial Page Capacity (kByte) Services Rate (PHY) Rate(APP)
Service Remark
No Cache Cache SD Level 1.1 0.9
Naver 1,272 166 Local web page BTV
Mobile HD Level 2.1 1.8
(Mobile IPTV)
Web Daum 695 337 Local web page
FHD Level 4.3 3.6
Portal
Nate 823 320 Local web page
360p 0.8 0.6
Afreeca TV
- Required QoS for each loading time in downloading the initial page (Live streaming 720p (HD) 1.5 1.2
social media app)
1024p (FHD) 4.4 3.5
QoS for initial load downloading time (Mbps)
Service Normal 1.5 1.2
2s 3s 4s 5s 6s 7s
Naver 5.0 3.3 2.5 2.0 1.7 1.4 YouTube 720p (HD) 1.9 1.6
Mobile
Web Daum 2.7 1.8 1.4 1.1 0.9 0.8 1080p (FHD) 5.8 4.8
Portal
Nate 3.2 2.1 1.6 1.3 1.1 0.9 * QoS demand for streaming: 2Mbps for HD level (app. layer)

According to research, 80% of subscribers are willing to wait Required UL throughput to support minimum DL throughput
under 5s for a site to load Required
No. DL Throughput Remark
Initial connection time is significant in customer experience UL Throughput
for a web page. 1 10Mbps 1Mbps

Based on that customers feel okay with 5s for a mobile web, 2 5Mbps 512kbps
DL 2Mbps is required on worst case 3 2Mbps 256kbps

* 8 ~ 12% of throughput is required according SKT internal trial

-8-
I. LTE Designing & Planning Summary LTE Subscriber Forecasting 1.3 LTE Design Criteria Setup
Subscriber forecasting is like below based on GSMA intelligence data. But SKT thinks that Mobifone needs to
accelerate subscriber migration from 2G to 3G/LTE network
LTE Subscriber Forecasting: Most Likely Case Optimistic Case vs. Pessimistic Case
Subscriber Forecasting of Mobifone Unit: 1,000 person
Optimistic Case (Aggressive)
Subscriber Y2015 Y2016 Y2017 Y2018 Y2019 Y2020 Subscriber Y2015 Y2016 Y2017 Y2018 Y2019 Y2020
2G 38,219 38,758 38,061 34,640 27,779 22,051 2G 38,219 38,758 36,158 31,176 23,612 17,641
3G 7,105 7,701 8,358 10,740 14,724 16,145 3G 7,105 7,701 10,079 13,535 17,686 17,225
LTE - - 888 2,569 5,985 10,763 LTE 0 0 1,070 3,237 7,189 14,093
% of LTE 1.9% 5.4% 12.3% 22.0% % of LTE 0.0% 0.0% 2.3% 6.8% 14.8% 28.8%
SUM 45,324 46,459 47,307 47,949 48,487 48,959 SUM 45,324 46,459 47,307 47,949 48,487 48,959

When forecast LTE subscriber, SKT use Indonesia case Pessimistic Case
Subscriber Y2015 Y2016 Y2017 Y2018 Y2019 Y2020
Unit: 1,000 person 2G 38,219 38,758 38,061 34,640 27,779 22,051
3G 7,105 7,701 8,358 10,740 14,724 16,549
LTE 0 0 888 2,569 5,985 10,360
% of LTE 0.0% 0.0% 1.9% 5.4% 12.3% 21.2%
SUM 45,324 46,459 47,307 47,949 48,487 48,959

Assumptions
Optimistic Pessimistic
Total Subs Same as Most-Likely Case Same as Most-Likely Case
Mobifone needs to migrate 2G subscriber to
2G Migration Higher than Most-Likely Case Same as Most-Likely Case
3G/LTE quickly
% LTE Up to 28.8% Up to 21.2%
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I. LTE Designing & Planning Summary Data Usage Forecasting 1.3 LTE Design Criteria Setup
LTE data usage is forecasted based on Philippine case (SKT provided LTE consulting service in 2016)
Philippines market is similar to Vietnam in terms of prepaid market, total subscriber and slow migration speed
Data Usage Trend in Korea Data Usage (Mobifone) - Estimated
In Korea, LTE data usage grows 1.6x 10.5x compared to 3G Original data of Philippines operators POU forecast
- 3G traffic decrease slowly due to subscriber migration to LTE - Globe wants to provide high speed data service (DL 4Mbps, UL:
- New traffic in LTE make data usage per subs. high rapidly - Globe forecasts that LTE user will use huge data volume
due to wide-spectrum and LTE CPE for Home subscriber

LTE 2016 2017 2018 2019

New Tariff
Required THP(subs, kbps) 14.45 21.51 29.98 41.81
[Unit: MB/Month] Impact
Data usage (GB/Month) 2.66 3.96 5.51 7.69

10.5X() Revised data usage: considered Korea 3G/LTE POU trend

- Case #1: Considered growth rate in Korea LTE traffic
- Case #2: Considered Korea LTE traffic trend (same as in Korea)
1.6X()
Data POU (GB/Month) 2017 2018 2019 2020
Case #1 2.66 3.27 4.79 6.34

Data POU Case #2 1.79 2.20 3.23 4.28

12.12 13.12 14.12 15.12 16.12
(MB/Month)

3G 1,180 1,195 1,064 751 559

LTE 1,836 2,256 3,312 4,381 5,885

LTE/3G (times) 1.6 1.9 3.1 5.8 10.5

SKT will use Case #1 POU for capacity site design
(May change according to Mobifones requirements)
LTE Growth (%) 22.9 % 46.8 % 32.3 % 34.3 %

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I. LTE Designing & Planning Summary 1.4 LTE eNB Dimensioning
SKT calculated no. of coverage sites, no of capacity sites based on various scenarios as a initial dimensioning result

LTE Subscriber & POU Forecasting Dimensioning Result (Coverage/Capacity)

Subscriber Forecasting of Mobifone (Most-Likely Case) Initial Site dimensioning result (Coverage)
Unit: 1,000 person, Ref: GSMA intelligence
Subscriber Y2015 Y2016 Y2017 Y2018 Y2019 Y2020 Cell Edge Required Investment
Subscriber
2G 38,219 38,758 38,061 34,640 27,779 22,051 QoS No. of Site Rate
3G 7,105 7,701 8,358 10,740 14,724 16,145 Option 1 DL 2Mbps 22,470 100%
LTE - - 888 2,569 5,985 10,763 Option 2 DL 5Mbps 32,713 146%
% of LTE 1.9% 5.4% 12.3% 22.0% Hybrid
Option 3 26,362 117%
5Mbps & 2Mbps
SUM 45,324 46,459 47,307 47,949 48,487 48,959
There are 3 scenario for LTE subscriber estimation (Optimistic, Most-Likely, Pessimistic)

POU (Packet of Usage) Forecasting of Mobifone Initial Site dimensioning result (Capacity)
- SKT makes 3 scenarios of subscriber forecasting and 2 cases of data
Data POU (GB/Month) 2017 2018 2019 2020 usage trend
Case #1 2.66 3.27 4.79 6.34
Data Sub. No. of
2017 2018 2019 2020
Case #2 1.79 2.20 3.23 4.28 Usage Scenario Coverage Site
Most-Likely 26,362 - - 189 7,507
Minimum QoS (Throughput) Case #1 Optimistic 26,362 - - 466 13,235
Pessimistic 26,362 - - 189 6,825
No. DL Throughput Required UL Throughput Remark
Most-Likely 26,362 - - 2,478
1 10Mbps 1Mbps
Case #2 Optimistic 26,362 - - 1 5,492
2 5Mbps 512kbps
Pessimistic 26,362 - - - 2,141
3 2Mbps 256kbps
* 8 ~ 12% of throughput is required according SKT internal trial
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I. LTE Designing & Planning Summary Coverage Rollout Plan (Y2017 ~ Y2018) 1.4 LTE eNB Dimensioning
SKT considered 3 priority criteria to build a yearly eNB deployment plan and now is determining no. of required
coverage site in Y2017 and Y2018 with mobifone engineers
Priority Consideration
Administration zone
- Administration : Municipality Province
- Urbanization : Urban(Dense urban) Rural

Market Size
- High population area low population area
- High subscriber area Low subscriber area
- High data traffic area Low data traffic area

Investment Efficiency
- High population density Low population density
- High data traffic/cell area Low data traffic/cell area

Rollout Scenario Plan in Phase I & II

Phase I (Y2017) Phase II (Y2018) Rollout Scenario Plan Phase I (Y2017) Phase II (Y2018) Total
Plan 5 Municipality + Binh Duong TT-Hue, Khan Hoa Plan No. of Site 11,687 14,673 26,362
#1 Capital cities of other provinces Remained provinces #1 No. of Province 63 63 63
5 Municipalities + Binh Duong Plan No. of Site 12,482 13,880 26,362
Plan
Khanh Hoa, TT-Hue, Dong Nai Remained provinces #2
#2 No. of Province 51 63 63
Capital cities of other provinces
Fine-tuned in no. of coverage site
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I. LTE Designing & Planning Summary eNB Investment Cost 1.4 LTE eNB Dimensioning
SKT calculate eNB Investment cost depends on deployment scenarios considering asymmetric minimum QoS and
spectrum expansion plan
Investment Cost according to scenarios
Year Y2017 Y2018 Subtotal Y2019 Y2020 Subtotal Total
Type Coverage Expansion Capacity Investment
No. of Required Sites 12,482 13,880 26,362 189 7,318 7,507 33,869

Case #1 1.8GHz 10Mhz Bandwidth 1.8GHz 10MHz (Add new sites for capacity) 1.8GHz 10MHz

Case #2 1.8GHz 10Mhz Bandwidth 1.8GHz Bandwidth Expansion (10MHz --> 20MHz) 1.8GHz 20MHz

1.8GHz 10Mhz Bandwidth

Case #3 1.8GHz 10MHz + 2.6GHz 20MHz
2.6GHz 20MHz bandwidh
Frequency
1.8GHz 10Mhz Bandwidth 1.8GHz Bandwidth Expansion (10MHz --> 20MHz)
Case #4 1.8GHz 20MHz + 2.6GHz 20MHz
2.6GHz 20MHz bandwidth : Priority Group 1 (22 Provinces Whole Area)

1.8GHz 15Mhz Bandwidth

Case #5 1.8GHz 15MHz + 2.6GHz 20MHz
2.6GHz 20MHz bandwidh

Unit : Thousand USD

Case #1 187,230 208,200 395,430 2,835 109,770 112,605 508,035
Case #2 187,230 208,200 395,430 478 18,295 18,768 414,198
187,230 208,200 395,430 - - -
Case #3 508,035
Investment 2,835 109,770 112,605
Cost 187,230 208,200 395,430 478 18,295 18,768
Case #4 644,628
134,880 134,880 95,550 95,550

187,230 208,200 395,430 - - -

Case #5 508,035
2,835 109,770 112,605

Assumptions for Unit Price

- New Site (1.8GHz, 2.6GHz): 15,000 USD
- Adding a Physical site for a Capacity: 15,000 USD
- Expand Frequency Bandwidth for a Capacity Site: 2,500USD - 13 -
I. LTE Designing & Planning Summary Coverage Simulation 1.4 LTE eNB Dimensioning
SKT performed cell coverage simulation: DL RSRP, RSCP, DL & UL Throughput of 63 province capital

Simulation Example
Downlink RSRP Downlink Throughput

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I. LTE Designing & Planning Summary EPC Topology & Differences 1.5 LTE EPC Dimensioning
SKT checked differences between Mobifone and SKT LTE core topology

Mobifone LTE network Model

Different
things

Differences between Mobifone and SKT Mobifone use S-GW and P-GW together
[ Mobifone ] [ SKTelecom ] - Strong: Network topology will be simple and reducing cost (CapEx)
P-GW P-GW
- Week : Risk management (do not distribute traffic )
P-GW
S-GW S-GW S-GW
P-GW P-GW P-GW Mobifone use MME with SGSN and PGW with GGSN
S-GW S-GW S-GW
- Strong: reducing cost and sharing capacity each systems
- Week: Risk management (if system has failure, 2G/3G/4G systems will
be out of service like below
S/P-GW GGSN
MME S/P-GW
(with SGSN) (with GGSN)
MME SGSN
MME
MME SGSN (with SGSN)

Our of service Out of service 4G

3G 2G/3G/4G But in service 2G/3G
LTE
LTE 3G
LTE 3G/2G LTE 3G/2G
DRA: Diameter Router Agent - 15 -
I. LTE Designing & Planning Summary EPC Site Position for Efficiency 1.5 LTE EPC Dimensioning
SKT recommend 2 EPC center in Ha Noi and Ho Chi Minh to reduce EPC investment cost

Change location & numbers (SKT case) Recommendation for EPC Site Position
SKT changed EPC site position and merged
to reduce cost and increase investment efficiency

14 core center for 2G / 3G

2 core center for LTE
LTE core center (remain 5 legacy core center)

2G/3G core center

Reason for reducing Core Center

Y2010 Y2016 Benefit Recommendation for Mobifone:

Need to centralized EPC systems due to cost efficiency
Core center Reducing property cost
14 7 Location: Ha Noi & Ho Chi Minh
numbers Work efficiency for management
* Internet G/W and almost core network systems in there)
Can use human resource to other part Why dont need EPC in Da Nang?
Working
200 90 like new business development 1) Da Nang doesnt have OCS, HSS, OFCS that is connected with EPC
members
( or Reducing personnel expenses) 2) IX systems (to connected PDN)is not located in Da Nang
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I. LTE Designing & Planning Summary EPC Dimensioning 1.5 LTE EPC Dimensioning

Expect Mobifone EPC investment base on subscribers like below;

and Scenario 2 is good for Mobifone due to ecause efficiency for manage and investment
EPC Dimensioning [ S/P-GW & MME ]
Class City Y 2017 Y 2018 Y 2019 Y 2020

Hanoi 154,021 445,584 1,038,078 1,866,806

Subscribers number
Danang 158,230 457,762 1,066,448 1,917,825
(expected)
HoChiMinh 575,750 1,665,654 3,880,474 6,978,369

Hanoi 2 2 2 2
Necessary Number
Scenario1 (N+1, 3 city, 3 pool) Danang 2 2 2 2
One system capacity = 1.5M
HoChiMinh 2 2 4 6

Necessary Number Hanoi 2 2 4* 6*

Scenario 2
(N+1, 2 city, 3 pool )
(One system capacity
= 1M(Hanoi), 1.5M(Hochiminh) HoChiMinh 2 3 4 6

Necessary Number Hanoi 2 2 4* 4*

Scenario 3 (N+1, 2 city, 3 pool )
One system capacity = 2M HoChiMinh 2 2 3 5

[ Scenario 2 Necessary condition ]

1) Need to centralized EPC systems (in Hanoi & Ho Chi minh)
2) One city use 1 vendor system
3) Number of equipment will be calculate base on subscribers. (check other condition like Throughput, TPS and so on)
4) One MME & S/P-GW capacity : In Hanoi = 1M, In Hochiminh = 1.5M
5) Hanoi and Ho Chi Minh has one MME & S/P-GW pool each other , but after 2019, honoi has two pool (northern / middle)) for management
6) N+1 topology for Risk management

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 I. LTE Designing & Planning Summary EPC Dimensioning 1.5 LTE EPC Dimensioning

That picture is EPC topology for Mobifone in 2020 (case2)

It have 3 Pool for each region, different capacity EPC, adjusting call model
EPC topology in 2020 (Scenario 2)

Use one vendor per one city (not multi vendors)

[ In Ha noi ]
The Vendors said that it is possible to connect with
heterogeneous network. But when SKTelecom try to
MME
HaNoi connect A vendor with B vendor, it make many problem for
network quality. We do not recommend that.
S/P-GW
[the north]
[the north] [the central] Having Dierent capacity each city
- Using 1M subscribers per one equipment in hanoi
- Using 1.5M subscribers per one equipment in HoChiMinh

Hanoi have 2 pools.

1 pool for the north, another pool for the central from 2019
Da Nang Due to network management

Call model and Throughput model

[the central] Mobifone will need make call model and throughput model
for Mobifone network. We suggest our call model that can be
list of reference for mobifone.

[ In Ho Chi Minh ]

MME
Ho Chi Minh
[the south]
S/P-GW
[the south]

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I. LTE Designing & Planning Summary Call Model (MME) 1.5 LTE EPC Dimensioning
The EPC are have various factors to determine capacity like subscribers, TPS, session, throughput and so on.
In order to determine and calculate EPC, need to set call model to check not only subscriber but also other factors
MME call model
MME capacity usually can be calculated by subscribers. adjust call model for example. If one MME have Capacity like
But need to check no. of transaction in call model like below that, check TPS base on subscribers
Total transaction
- Subscribers capacity = 1,500,000
Standard Call Model
Protocol Message
Transaction (BHCA)
(1 hour per 1 person)
(BHCA X Standard TR)
- TPS capacity = 500,000
Mobility Attach 10 0.07 0.70
management Detach Reason 4.5 0.06 0.27
need to check it
1.5M 1.5M 59714
PDN connectivity 5 0.23 1.15
Multiple PDN 750000

Over
PDN disconnectivity 4 0.17 0.68
MAX TPS
MO Service Request 2.5 14.45 36.13
Data MT Service Request 2.5 3.83 9.58 Using MAX 1.5M Max TPS
S1 Release 2 22.36 44.72 subscribers subscribers Subscriber TPS For 1.5M subs.
MO Extended SR 3.5 0.46 1.61 (Vendor)
CSFB
MT Extended SR 3.5 0.44 1.54
Activate Dedicated Be
2.5 0.02 0.05
arer We can calculate TPS by call mode like below
Dedicated Bearer Delete Dedicated Bear 2.5 0.03 0.08
er BHCA x Standard TR = Total 1 hour transaction per 1 user = 186
TAU 5.5 1.96 10.78
Call model / 3,600(total second per 1 hour) x subscribers
X2 Based Handover 2 4.99 9.98
Handover = 186 / 3,600 *1,500,000
S1 Based Handover In
4.5 0.03 0.14
tra = 79,714 TPS (when 1,500,000 subscribers using LTE)
CSFB CS Paging 1 0.69 0.69
PS Paging 1 4.08 4.08
Data
Paging Signal 0.12 503.53 60.42
SMS 2 2.07 4.14
CSFB
Authentication 2 0.05 0.10
Total (1 user an
hour)
Call model result 186
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I. LTE Designing & Planning Summary Call Model (S/P-GW) 1.5 LTE EPC Dimensioning
The EPC are have various factors to determine capacity like subscribers, TPS, session, throughput and so on.
In order to determine and calculate EPC, need to set call model to check not only subscriber but also other factors
S/P-GW Throughput model S/P-GW Call model
Need to check required throughput and subscribers in Protocol Message Total TR
S/P-GW call model to check capacity.
Rx_Crt_Sess_Req 0.22

[ Required Throughput each year ] Rx_Mod_Br_Req 42.03

S5 Rx_Del_Sess_Req 0.20
Y2017 Y2018 Y2019 Y2020
CRTE_BR_REQ
Throughput / User
14.45 21.51 29.98 41.81 DEL_BEARER_RQ 0.02
(kbps)
GxDiaApp0_txCCR 24.82
PCRF
Throughput(GB) RAR
13.8 20.5 28.6 39.9
(1M subscribers) START 22.18

Throughput (GB) RADIUS INTERIM 1.24

20.7 30.75 42.9 59.85
(1.5M subscribers) STOP 22.18

Throughput (GB) GnGtpcRx_Crt_Pdp_Cxt_Req 0.06

27.6 41.0 57.2 79.7
(2M subscribers) Gn GnGtpcTx_Upt_Pdp_Cxt_Req 4.21
GnGtpcTx_Del_Pdp_Cxt_Req 0.05
OCS CCR 0.24
[ Example ] S/P-GW have capacity like that Total
117.45
( 1 user an hour )
Subscribers throughput
Capacity 1.5M 45G
Call model / 3,600(total second per 1 hour) x subscribers
Subscribers number is 1.5M per one systems in 2020,
= 117 / 3,600 *1,500,000
Throughput will be about 60G. Subscribers will have been bottleneck
Before 2019. But throughput will be bottleneck after 2020. = 48,750 TPS (when 1,500,000 subscribers using LTE)

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I. LTE Designing & Planning Summary EPC Dimensioning Result (Scenario #2) 1.5 LTE EPC Dimensioning
SKT calculate EPC investment cost based on roll-out plan, required traffic, transaction and throughput like below.

Dimensioning for EPC

[ Expansion and subscribers ] 17.4Q 18.4Q 19.4Q 20.4Q
Expansion 63provinces Capacity deployment + Nationwide

Subscribers 0.88M 2.59M 5.98M 10.7M

[ EPC numbers] 17.4Q 18.4Q 19.4Q 20.4Q

2 MME 6 MME
Hanoi
EPC 2 S/PGW 6 S/PGW
Numbers
( totally ) 2 MME 3 MME 4 MME 6 MME
6 S/PGW
Ho Chi Minh
2 S/PGW 3 S/PGW 4 S/PGW

[ Yearly CapEx] 17.4Q 18.4Q 19.4Q 20.4Q Total(necessary)

CapEx 0
(USD)
+ 3.3M +13.3 M +6.6 M 23.2M USD
(it is not include upgrading investment.)

Necessary MME 2 + MME 1 + MME 5 + MME 2 Add MME 8

System numbers S/PGW 2 + S/PGW 1 + S/PGW 5 + S/PGW 2 Add S/PGW 8

Using EPC system that was introduced last year. it is not include license upgrade investment for capacity [ Investment conditions ]
Hanoi need to have 2 MME pool due to network management from 2019. (Hanoi pool / Danang pool) MME (for 1.5M subs.) = 1.3M USD
it is not include license upgrade investment for capacity MME (for 1M subs.) = 1M USD
S/P-GW (for 1.5M subs.) = 2M USD
S/P-GW (for 1M subs.) = 1.5M USD

- 21 -
I. LTE Designing & Planning Summary EPC Dimensioning Result (Scenario #3) 1.5 LTE EPC Dimensioning
SKT calculate EPC investment cost based on roll-out plan according to scenario 3
[ Scenario 2] one systems capacity : 2M
Dimensioning for EPC

[ Expansion and subscribers ] 17.4Q 18.4Q 19.4Q 20.4Q

Expansion 63provinces Capacity deployment + Nationwide

Subscribers 0.88M 2.59M 5.98M 10.7M

[ EPC numbers] 17.4Q 18.4Q 19.4Q 20.4Q

2 MME 4 MME
Hanoi
EPC 2 S/PGW 4 S/PGW
Numbers
( totally ) 2 MME 3 MME 5 MME
Ho Chi Minh
2 S/PGW 3 S/PGW 5 S/PGW

[ Yearly CapEx] 17.4Q 18.4Q 19.4Q 20.4Q Total(necessary)

CapEx 0
(USD)
+ 12 M +8M 20M USD
(it is not include upgrading investment.)

Necessary MME 0 + MME 3 + MME 2 Add MME 5

System numbers S/PGW 0 + S/PGW 3 + S/PGW 2 Add S/PGW 5

Using EPC system that was introduced last year.

[ Investment conditions ]
Hanoi need to have 2 MME pool due to network management from 2019. (Hanoi pool / Danang pool)
MME (for 2M subs.) = 1.6M USD
it is not include license upgrade investment for capacity
S/P-GW (for 2M subs.) = 2.4M USD

- 22 -
[Back-up] Traffic Path Optimization & Caching 1.5 LTE EPC Dimensioning
It is possible to save IP backbone investment by re-routing through EPC-Site and when Mobifone uses the TP cache,
Mobifone can save the internet exchange fee and apply own policy
Re-routing of Internet Interworking International Contents Cache

Internet Internet SKB SKT SKB SKT

Domestic Domestic
IX Backbone traffic IX Traffic Traffic
is increased
directly
core core Non Non
connected TP Cache
google google
S1/EPC S1/EPC
To Internet
PE P P PE P P
Internet Google Google
S2/EPC
PE PE IX
Google Cache
Capital area Capital area
(6 regions) (6 regions)
Cache Amount of Traffic

Simplify internet route (Capital: IX-1, Non-capital: IX-2) Decreased in international internet access cost
2 PGW sites (Capital : S1, Non Capital : S2) -using TP and Google Cache.
Non-capital area access internet through new IX-2 directly TP Cache targeting non-google traffic.
(Save backbone investment and improve internet quality) -Save internet access fee and improve internet quality

SKT save 120Gbps of Backbone traffic a year SKT save 10Gbps a year by using TP Cache
USD 12M / 3 years USD 2M / 3 years
- 23 -
[Back-up] Traffic Path Optimization & Caching Network Virtualization 1.5 LTE EPC Dimensioning
The virtualization technology is developed for securing performance and stability in EPC & IMS of telco.

Network Virtualization Progress

NFV SDN NFV SDN NFV

Access Equipment in ICT equipment IP backbone Service server

(BTSDU) transmission (EPC, IMS, etc.) (switch, router)

Maturation Technology is Technology is Early stage of Technology is Technology is

developed developed commercialization developed mature

Save TCO

Reduce TTM

Issue A Technical/business issue B Technical issue C Business issue B Technical issue N.A.

A (Business) Need to open interface only for RU~DU B C

manufacturers Need to develop/verify technology on the entire Need to select the legacy EPC already received
(Technology) Make up for performance/ stability of transmission section for N/W flexibility. investment and a new investment into virtualization
LTE-A commercial N/W level

- 24 -
[Back-up] Virtualization & VoLTE Roadmap 1.5 LTE EPC Dimensioning
SKT suggested virtualization roadmap to increase network investment efficiency especially in EPC/IMS system

EPC Virtualization & VoLTE Roadmap

Upgrade legacy 3G core network in 2017 Introduce VoLTE with virtualization technology All entity virtualization
- Provide CSFB voice service with 3G - vIMS for VoLTE in 2018, vEPC in 2019 - vRAN introduction in 2020

2017 2018 ~ 2019 2020 ~

Internet Internet Internet Internet

vIMS vIMS Service Service virtualization

PGW PGW PGW vPGW PGW vPGW vPGW PGW vPGW vPGW vPGW
GGSN Upgrade
(S/P-GW)
SGW SGW vSGW SGW vSGW SGW vSGW vSGW

SGSN Upgrade MME Dedicated Service MME vMME MME vMME vMME
MME ( IOT or VoLTE)
(MME)

eNB eNB eNB eNB eNB

B2C B2B IOT B2C B2B IOT B2C B2B IOT B2C B2B IOT

- 25 -
[Back-up] SMS in LTE 1.5 LTE EPC Dimensioning
Need to consider change in SMS design according to the evolution of network. SKT recommend to consider
SMS over SGd methods in future
SMS over SGd Overview & Feature
Transmit SMS by enhancing the existing equipment without
SMC
S6c
HSS interconnecting to IMS Infra.
(MAP-Diameter)
Adding a diameter stack to SMSC or protocol conversion equipment
S6d
is necessary.
(MAP-Diameter)
N/W structure and transmission path is simple,
and a terminal operates the same as the current CSFB.
MME
Need to receive origination supplementary service for MME and
price plan related VLR function.
Manage the condition of a terminal at HLR
eNB by using the terminals LTE location registration information (S6a).
SMS origination: Terminal MME(IWF)SMSC
SMS Over SGd SMS termination: SMSC check subscriber of HLR termination IWFMME terminal
Terminal Do not need to change
Standardization Rel. 12 (TS 23.272) SMS over SGs
Cost n/a Need to review measures to transmit SMS within
HLR the LTE N/W autonomously in relation to long-term
No need to change terminal VLR legacy N/W removal issue
N/W structure is simple. and ways to transmit SMS of LTE-only terminal.
Pros In the current SMS method, SMSC Sigtran WMSC
possible to open OTA. VLR of 3G MSS is expected to increase continuously
SGs due to combined attach of LTE subscribers along with
Cons MME the increase in the no. of 3G subscribers.
Few reference
& Issues Standard completeness For subscribers using VoLTE, need to consider
eNB securing 3G capacity through VoLTE-only attach.
- 26 -
I. LTE Designing & Planning Summary Transport Strategy & Plans 1.6 LTE Backbone & Backhaul Dimensioning
Based on the estimated traffic(Most-likely case) and LTE cell site deploying plan(Phase 1/2/3, the market size &
investment efficiency), annual investment will be needed in the End-to-End Transport Network

Two Key Factors Evolution of the Transport Network Structure

The estimated LTE traffic(GB, Most-likely case)
226.7 PE Router PE Router
The number of PEs are
95.3 increased every year
27.9 Transport eNB Switch
7.8
Center
'17 '18 '19 '20 (PE/P /IBC IBC#1 IBC#2
site)
LTE Coverage Rollout Plan(Plan#2)
Y 2017 Y 2018
Cell Site 12,482 13,880 26,362 IP Backhaul
(10G)

0 10000 20000 30000 PTN IBR#1 IBR#2 IBR#3 IBR#4

District Center (OSN6500)
Strategy & Plan (IBR/IBRR)
Integrated
IBRR#1 IBRR#2 Ring MUX DU
Backbone COT
Switch Ring 1G
LTE PE should be separated from 2/3G PE for QoS (1G)
Management Switch L3 Switch
1G Ring
Minimum 2 PEs per site for redundancy MUX
DU
Cell Site RT
Backhaul RU Repeater
eNB RU Repeate
It leverages the existing networks to provide the LTE
r
service by 2017 -Current - IP Backhaul with - IP Backhaul with
N/W- Switch Ring - Ring MUX -
Deploy the High Capacity IP Backhaul System in 2018
[D-RAN : 2017~] [2018~] [C-RAN : 2020~]
with consideration of C-RAN Front haul

- 27 -
I. LTE Designing & Planning Summary 1.6 LTE Backbone & Backhaul Dimensioning
Derive the required PE routers for the next four years from 2017, based on the annual basis of Estimated Traffic
(GB) in BHCA(Most-likely Case) and then, calculate the cost of investment applied SKT PE price

Status of forecasted PE traffic LTE Backbone Structure Adding LTE PE

Comparison between PE vs. Non PE traffic PE#1 NB-SW

Y2017 Y2018 Y2019 Y2020

Legacy
Total 7,848 27,911 95,251 226,721 Backhaul
NB
PE Province 6,478 23,040 78,625 187,148
PE#2
Non PE Province 1,370 4,872 16,626 39,573
P Router PE#3
% of Non PE 17% 17% 17% 17%

PE Province traffic is 83% of the total traffic ,and Non PE LTE

Province traffic belong to the nearest PE Backhaul
Non PE Province(33 regions) traffic is locally spread and eNB
the average traffic is relatively low(19%) to PE Province PE#4
New LTE PE

Basic Conditions of deploying PE

LTE PE Capacity Focus on the PE Province traffic Risk Management
based on the current PE Capacity [ 83% vs. 17% ] Failure
17% P PE
Current total Traffic core eNB
Non PE Province P PE
40,833 GB 83%
1,361 GB PE Province
per PE Deploy two more PEs when the traffic is
164 PEs
over 2,600GB in 2 PE Province, Y2020
Current no.of PE '17 '18 '19 '20
( Ready to redundant PE failure)

- 28 -
I. LTE Designing & Planning Summary Yearly Investment (Backbone) 1.6 LTE Backbone & Backhaul Dimensioning
As we consider basic condition and yearly traffic increase, New 180 PEs will be needed and the total investment
costs are 12.8 million dollars until 2020 year

Calculation Investment amount Yearly Investment amount

Increasing PEs per year Investment amount (thousand dollars)
Process of derivation Province
2017 2018 2019 2020 2017 2018 2019 2020
Ha Noi 2 - 2 6 142 - 142 427
Study the current (2G+3G) PE Traffic Hai Duong 2 - - 2 142 - - 142
Hai Phong 2 - - 2 142 - - 142
Nam Dinh 2 - - - 142 - - -
Analyze the four years estimated Traffic Ninh Binh 2 - - - 142 - - -
Quang Ninh 2 - - 2 142 - - 142
Calculate the capacity of LTE PE Binh Dinh 2 - - 2 142 - - 142
Binh Thuan 2 - - 2 142 - - 142
Da Nang 2 - 2 2 142 - 142 142
Calculate the required no.of PE Khanh Hoa 2 - - 2 142 - - 142
Nghe An 2 - - 2 142 - - 142
Ninh Thuan 2 - - 2 142 - - 142
Calculate annual Investment amount of LTE PE Dak Lak 2 - - 2 142 - - 142
Lam Dong 2 - - 2 142 - - 142
Draw a Conclusion Ba Ria Vung Tau 2 - - 2 142 - - 142
Binh Duong 2 - - 4 142 - - 285
Binh Phuoc 2 - - 2 142 - - 142
180 12.8 Dong Nai 2 - 2 4 142 - 142 285
new LTE PEs million dollar Tay Ninh 2 - - 2 142 - - 142
Tp Ho Chi Minh 2 4 14 26 142 285 996 1,850
An Giang 2 - - 2 142 - - 142
Bac Lieu 2 - - 2 142 - - 142
Yearly increment trend
Ca Mau 2 - - 2 142 - - 142
Can Tho 2 - 2 4 142 - 142 285
Y 2017 Y 2019
Dong Thap 2 - - 4 142 - - 285
PE 60 4 22 94(70+24) Kien Giang 2 - - 4 142 - - 285
Y 2018 Y 2020 Long An 2 - - 2 142 - - 142
Soc Trang 2 - - 2 142 - - 142
70 PEs are needed when LTE traffic explosion in 2020 Tien Giang 2 - - 2 142 - - 142
Extra 24 PE systems are needed more in 2020 for RM Vinh Long 2 - - 2 142 - - 142
sub Total 60 4 22 94 4,269 285 1,565 6,687
Total 180 12,806
- 29 -
I. LTE Designing & Planning Summary Yearly Investment (Backhaul) 1.6 LTE Backbone & Backhaul Dimensioning
SKT has 3 types of Backhaul Network for LTE service(PTN, IP Backhaul, IP Backhaul with Ring MUX Front haul Link)
To obtain the nationwide LTE transmission coverage, the following IP Backhaul Modeling, Case scenarios were
employed as follows

3 Types of IP Backhaul in SKT Cascade Structure of IP Backhaul

Comparative analysis
IBC#1 IBC#2
IBC#1 IBC#2
1st 10G Xnd 10G
(10G) (10G) (10G) Ring Ring

IBR#1 IBR#2 IBR#3 IBR#4 IBRR#3 IBRR#4

Switch Ring
Switch Ring IBR#Y IBR#Z
(1G) IBR#1 IBR#2
(10G) (1G)
1G
1G DU
IBRR#1 IBRR#2 DU
Switch Ring Xnd 10G
(1G) 1st 10G
RU Repeater Ring
RU Repeater Ring
1G
DU
IBRR#1 IBRR#2 IBRR#Y IBRR#Z
RU Repeater Switch Ring Switch Ring
[ Type #1 ] [ Type #2 ] [ Type #3] (1G) (1G)
IBC IBR IBRR - L3 S/W IBC IBR - L3 S/W IBC IBRR - L3 S/W
L3 Switch L3 Switch
Type Type #1 Type #2 Type #3 1G 1G
DU DU
Coverage High Low Low
Capacity Very High High Low RU Repeater RU Repeater
CapEx High Medium Low
OpEx High Low Low IBC : IP Backhaul COT, IBR : IP Backhaul RT, IBRR : IP Backhaul RT RT
Region Rural Urban Metropolitan (COT : Central Office Terminal, RT : Remote Terminal)

- 30 -
I. LTE Designing & Planning Summary Yearly Investment (Backhaul) 1.6 LTE Backbone & Backhaul Dimensioning
SKT would like to suggest the IP Backhaul(IBC/IBR/IBRR/L3 Switch) system for the backhaul solution of Mobifone
LTE service, considering your LTE coverage, capacity plan and IP Backbone Network status(P/PE Router Location &
Link connection etc.)

Basic Conditions of IP Backhaul Modeling Building IP Backhaul Model

Basic Conditions Four IP Backhaul Model
Considering the available backhaul structure, capacity, and regional
1 Using SKT engineering/operation criteria
conditions(PE vs. Non PE Province)
2 All systems applied are currently operating in SKT Based on the forecasted market size & investment efficiency according
We used the Cisco IBC/IBR and Huawei IBRR/L3 Switch to the proposed plan in access area

3 Fiber optic distance limited 80km(Max. 120km) Node to Node Network Structure & Target
Supposed that there is no long distance solution in Backhaul Another Province IBC(PE site)
IBC#1 IBC#2 IBC#1 IBC#2 IBC#1 IBC#2
(DWDM, ROADM etc.)
(10G) (10G) (10G) (10G)
4 Only focus on the IP Backhaul System deployment
IBR#1 IBR#2 IBR#1 IBR#2 IBR#1 IBR#2 IBR#1 IBR#2
optical fiber deployment does not considered
(10G) (10G)
Switch Ring Switch Ring
SKT IP Backhaul Spec. (1G) (1G)
IBRR#1 IBRR#2 IBRR#1 IBRR#2

Nokia Cisco Huawei 1G 1G Switch Ring Switch Ring

DU
Main Spec. L3 DU (1G) (1G)
IBC IBR IBC IBR IBCIBR IBRR Switch RU Repeater 1G 1G
DU DU
Switching
2T 500G 1.28T 640G 7.68T 160G 128G
Capacity
[Case #1] [Case #2] [Case #3] [Case #4]
No. of I/O slot 10 5 8 4 8 2 0 41 Province
22 Province
Buffer Size 768MB 400MB 3GB 2GB 2MB Capital Except Capital PE Province Non PE Province
Applied Tech. MPLS VPN, TE-FRR, Multicast, CES etc. Y2018(5 Province) Y2018(17 Province) Y2019(13 Province) Y2020(28 Province)

- 31 -
I. LTE Designing & Planning Summary Yearly Investment (Backhaul) 1.6 LTE Backbone & Backhaul Dimensioning
As we consider IP Backhaul Modeling and yearly LTE coverage increase, totally 89.1 million dollar will be needed
until Y2020 to deploy the nationwide IP backhaul system

Calculation of each Modeling case Yearly Investment amount

The required no.of systems for each Model case Calculate the money for each Province
Modeling Case#1 Case#2 Case#3 Case#4 Ex.) Case#1_Capital Province_Y2018
IBC 2 2 2 Province Total no. of sites (Y2018) dollars
IBR 8 8 8 8 Ha Noi 2,044 6,260,772
Multiply
IBRR 8 8 Hai Phong 537 1,644,831
3,063 dollar
L3 Switch Ring 72 72 72 72 Da Nang 634 1,941,942
(Unit Price)
Switch Ring node 288 576 576 576 Tp Ho Chi Minh 3,646 11,167,698
eNB 288 576 576 576 Can Tho 499 1,528,437

L3 Switch Ring capacity is 1G but SKT Engineering rule is 80% of that, Total Investment amount each year [Million dollar]
the real capacity of switching is limited 0.8G(800Mbps) Province Year 2018 2019 2020 SUM
Each node of Case#1 offer 200Mbps to eNB in capital province and Cell Site 7,360 4,200 11,560
Capital
the others case are 100Mbps because of eight node Switch Ring Capital 22.5 12.9 35.4
Except Cell Site 7,907 336 2,596 10,839
Calculation each case applied SKT unit price [Dollar]
Capital Capital 17.4 0.7 5.7 23.8
Modeling Case#1 Case#2 Case#3 Case#4 Cell Site 4,529 4,529
PE
IBC 142,285 142,285 142,285 - Capital 12.5 12.5
IBR 355,714 355,714 355,714 355,714 Cell Site 6,941 6,941
Non PE
IBRR - - 320,142 320,142 Capital 17.4 17.4
L3 Switch 384,171 768,341 768,341 768,341 Cell Site 15,267 4,865 13,737 33,869
Total
Capital 39.9 13.2 36.0 89.1
Total 882,170 1,266,341 1,586,483 1,444,197
Calculation one eNB investment money of each case 89.1 To support 33,869
Each eNB 3,063 2,199 2,754 2,507 million dollar Coverage Cell Site (eNB)

- 32 -
I. LTE Designing & Planning Summary LTE Packet Quality Analysis (in SKT) 1.6 LTE Backbone & Backhaul Dimensioning
The packet quality of the wired section depends on the change in Delay, Jitter, Loss and also affects the throughput
In LTE service. SKT have managed the packet quality by using TWAVE solution a few years ago as we proposed.

Packet Quality Correlation between parameters TWAVE(TWAMP Solution) in SKT

Lab Test Result in SKT Deployed 22,000 license in LTE End-to-End Network
Packet Delay, Jitter, Loss vs. Throughput Now weve covered 97% of LTE Network expanding the coverage
When the Loss exceeds every 0.2% or Delay 5ms or Jitter 1ms, to the server based IMS, L3/L4 Switch and etc.
throughput going down more than 10% of that(Max. 150Mbs condition) SKT LTE Network
Measurement
System using
TWAMP Support MPLS B/B,
TWAMP IP Backhaul, DUs
T-wave VNID VNID
Manager Actuator NANONID
Not Support SFP
NMS Server Data Collection TWAMP
Server
PTS,L2 Switch etc.
[Main Center] [Local Center]

Delay/Jitter Measurement Sample

10~20% degradation Above 20% degradation

HDV MOS in TWAMP wire line vs. HDV MOS in R-ENQA Radio quality check
As the Loss rate and delay increase, both MOS values are decreased
in a similar pattern

Packet quality improvement case study(SKT whole network)

No.of Alarm In May 2015 No. of Alarm in March 2016
Remark
Delay Jitter Loss SUM Delay Jitter Loss SUM
517 88 12 617 113 31 50 194 69%

Loss Rate Delay - Alarm Threshold : Delay/Jitter 4ms, Loss 0%

- 33 -
II. Innovative Service to get competitiveness 1. Mobile Broadcasting Platform
Mobifone provides mobi TV service to subscriber and mobi TV content can be used in LTE as a One Source Multi-Use

Mobifone TV Mobile IPTV in SKT (Oksusu)

Mobi TV is a service that helps MobiFone customers watch SKTs Oksusu Service (mobile IPTV) is provided to our
live television channels, watch on-demand contents subscriber in LTE/ Wi-Fi network environment, supports
right on smart devices like phone, tablet N-screen feature and serves as an ad platform
Mobi TV is providing a various packages for users Play Service Free Service
Live 100 Channel
Packages Play Service Rate(VND) Right of Use Channel (News, Sports, Entertainment, Kids, )
Daily Package 3K/Day Free for Audio 20 Channel
General Weekly Package 15K/7 Days watching all Channel (Classic, Jazz, Club music, Dance, )
television CH 13K 4K
Monthly Package 30K/30 Days VoD
(SVoD 9K+TVoD 4K) (TVoD 4K)
Free for SVoD: Subscription VoD, TVod: Transactional VoD
On Sports Daily/Weekly 3K/15K
watching all
Demand Film Daily/Weekly 3K/15K
contents in
(VoD) Entertainment - Weekly 3K/15K
the package
Fee for buying single contents
3K/content
(watch/download/give content)

Service target users

Target users: All subscribers using two-direction service of MobiFone NW
Equipment used: Mobile phone, tablet with iOS, Android systems
SKT introduced independent Media N/W to improve service
Usage conditions: Subscribers use Mobile Internet service and must be in
Control QoS in network easily (set the preferred QCI for mobile TV)
range of EDGE/3G services of MobiFone or use Internet, Wi-Fi connection
Protect media network from other network failure
and use account to log in.

Technology: 700MHz DVB-T (32MHz BW = 4 CH x 8MHz)

- 34 - Oksusu Switch PE Router P Router
II. Innovative Service to get competitiveness Cloud Streaming STB 1. Mobile Broadcasting Platform
SKTs cloud streaming solution allows significant reduction in costs & more rapid deployment of new VAS through
the virtualization of STB functions
Before Cloud Streaming After Cloud Streaming

IPTV Service IPTV Service

Provider Provider
User STB User STB

Head-end Processing Head-end

System Unit System Processing
Receives content from UI / Menu Processing Unit
broadcasters
Value-added
Value-added
Services
User Input
UI Video
Codec
+ Services
User
Input UI Video
Decoder
Content
UI Video
Casual Games Transfer Decodes & encodes Decodes UI
YouTube/Netflix
Encoder STB UI Mgmt.
STB UI UI
Subscriber Optimization, Encodes UI
Mgmt.
etc.

UI / Menu processing & UI video encoding / decoding
are done by the STBs
Existing STBs need to be upgraded physically, or brand-new STBs
need to be provided to accommodate changes in UI,
firmware upgrade, etc.
STB model fragmentation makes efficient device management
difficult
Content Slow to introduce new & value-added services
Content Transfer
Most of the STB functions are virtualized & provided at the
server level no need to physically upgrade STBs:
Existing STBs are now much less costly (lower CAPEX), have longer
lifespan & need less care/upgrades (lower OPEX)
STB model fragmentation is no longer a critical hurdle
in terms of cost & time
Faster & more flexibility in customer care & improved user experience
More advanced value-added services (i.e. network console games)
are made possible & rapidly deployed

- 35 -
II. Innovative Service to get competitiveness SKTs IoT Strategy (1) 2. IoT Tech. & Platform
SKT deployed hybrid IoT network (LoRa + Cat.1/Cat.M1) to support all kinds of IoT services. SKT also operates
IoT platform Thing Plug to be IoT platform player
Service Group and Supporting System SKT IoT network and IoT platform

Cellular

LTE-M

NB-IoT, LoRa

SKT completed hybrid nationwide coverage on June 2016

SKT operate our own IoT platform ThingPlug to get massive
SKT provides all of IoT connectivity that market requires data and market leadership in terms of service level

SKT selected LoRa network since it was the NB IoT: KT and LGU+ will commercialize NB-IoT on june 2017
Why
technology that we can implement network SKT will wait and see NB-IoT market
LoRa?
earliest to get market leadership
In case of Mobifone, NB-IoT can be applicable by upgrading BBU license
Launch 22 New service in 1Q 17 and allocating certain spectrum for it
868 IoT service partner SKT needs to replace old BBU to new BBU to support nation-wide
100,000 free IoT module provide NB-IoT coverage (it was a burden for SKT to deploy NB-IoT network)
- 36 -
II. Innovative Service to get competitiveness SKTs IoT Strategy (2) 2. IoT Tech. & Platform
NB-IoT will be commercialized soon in Korea with in-band technology. Mobifone can commercialize it with S/W turn
on even it will take 1 RB for it. SKT selects 6 focus area with core technology such as AI, Energy, Car, Home, Media
Technical Roadmap for IoT network SKT IoT focus area
NB-IoT will be commercialized in 2017 SKT focus area

Car
Energy Maker
Company ICT
Infra company
structure
MNO
Company Autonomous
Energy driving/
Management Connected car
Construction
CP
IoT device category & Target Services AI
AI Smart company
Media
- Depend on required throughput and service type Service
Home
Electronics
Data Devices, Smart Devices, Wearable/Meters & Sensors MNO company
Global
Contents Commerce,
ICT O2O
company
Global
CP OTT
Individual
Producer

1.Utility, 2.Public safety, 3.Manufacturing,

4.Automotive, 5.Home, 6.Primary Industry

- 37 -
II. Innovative Service to get competitiveness Marketing Case Study 2. IoT Tech. & Platform
SKT customers can be able to access certain content over 4G data networks for free. SKT has contract called
Sponsored data with OTT or co-marketing and provide benefit to both subscribers and OTT
Sponsored Data Case Study Co-marketing with OTT
MNO can offer free bytes outside of subscribers plan's
monthly cap for completing tasks such as filling out surveys, SKT offline shop = Poket stop, Gym
watching videos or buying items.

That free data will be paid for by a third party (sponsor),

who typically wants some form of engagement with new customer.
This can be playing an ad or making subscriber download an app.

Do not charge
for the data
Payment for
data usage
instead of
customer

Free data for Pokemon Go Tech cooperation for AR

Access and SKT cooperate with OTT to boost marketing

consumes SKT network supports to make it possible by notice and separating data
data on App. produced by target app or service and
treat is differently such as charging
No.1 e-commerce in Korea
- 38 -
II. Innovative Service to get competitiveness 3. 700MHz Spectrum Reuse
Mobifone needs to keep 700MHz spectrum for mobile network due to 700MHz LTE coverage is much wider than
1.8GHz and 2.6GHz in theoretical link budget analysis.
Cell Radius of 700MHz LTE No. of coverage sites Comparison
Mobifone has 700MHz spectrum band for mobi TV Due to spectrum characteristics,
It has so good spectrum characteristics for mobile network No. of required coverage site is compared to 1.8GHz

700MHz cell radius is 2.1 times larger than that of 1.8GHz Target QoS
No. of
and 700MHz is better for coverage expansion, Required Sites 2Mbps 5Mbps
Asymmetric
especially low traffic area QoS
1.8GHz 22,621 32,423 26,362

700MHz 5,754 8,351 6,766

700MHz LTE is better to secure coverage.

But there is a weak in inter-cell Interference compared to
high spectrum band such as 1800MHz and 2600MHz
2.6GHz LTE
In High Traffic Demand

1.8GHz LTE 700MHz LTE

(Baseline Spectrum) In Low Traffic Demand

Dense Urban Suburban Rural

Urban
There is uncertainty in using 700MHz spectrum
- 39 -
III. Suggestion: Long Term Partnership 3.1 K-EXIM Loan Program
SKTd like to suggest new Investment model to deploy LTE and integrated NMS for long-term partnership
Mobifone can reduce financial burden to deploy 4G LTE network
Investment Model /Structure Benefit & Money Transfer Process

Loan Program
Entity Benefit or Effect
K-EXIM Mobifone
Reduce financial risk
Negotiate & Support Main
Mobifone Proceed aggressive LTE coverage roll-out
to get Loan Program Expect stable O&M with SKTs help
Contract
for Mobifone Support global business for Koreas
K-EXIM enterprise by operating Loan program with
SKT SKTNS low interest
Outsourcing Support Mobifone to get Loan Program
SKT Provide total consulting service with long-term
partnership
Provide competitive network materials
SKTNS
Manage LTE deployment process

Consulting Engineering Procurement Project Managing O&M

Frame Agreement for Loan Program
SKT (Active) SKTNS SKT/SKTNS
SKT SKT Apply Loan Program
SKTNS (Passive) (Vendor Control) (Integrated NMS)
Mobifone K-EXIM
eNode-B procurement, delivery, deployment Money Transfer
Target
including small-cell & repeaters if any (Turn-key)
Suggestion Payment Invoice
Condition
Deployment of integrated NMS & Security Center
- 25% of Korea content
Target USD $10M ~ $200M SKT
Cost (Depending on frame agreement)

K-EXIM: Korea Export & Import Bank - 40 -

III. Suggestion: Long Term Partnership Example: SKT NMC Overview 3.2 Integrated NMC Deployment (1)

This is SKTs Central Emergency Center running for 24hrs, 365days.

Wall boards are divided into: center(voice service), left(data service/YTN), and right (SKB IPTV, monitor Voice of Customer(VoC)) areas.
[Center] I-MAP monitors performance/failure of the quality of each BTS on the national map for every 5 minute.
TPANI monitors E2E and is able to check each section when failure is found.
RNMS monitors the quality of roaming subscriber .
(In overseas, through the quality monitoring, if a certain operator breaks down, SKT changes to another operator to allow customers
to enjoy services.
[Left] Monitor data traffic. (Consider the status of traffic surge or no traffic as a failure, and upon detected, it takes measure.)
YTN real time news
[Right] Monitor SKB IPTV and sense failure by using VoCs received from the customer center.
- 41 -
III. Suggestion: Long Term Partnership Intelligent O&M Platform 3.2 Integrated NMC Deployment (2)
Integrated NMC is Collecting big data from E2E areas (access, core, transport & UE), Effectively supporting MNO biz. process
via real-time, correlative & predictive analytics, Detecting & resolving the customers inconvenience in advance of perception

T-WAVE

Transport quality monitoring

SDN-NMS

Suggestion for Mobifones Integrated NMC

Y2017 Y2018
(Introduce Basic NMC solution) (Enhance & Enforce NMC Solution with Big Data)
XRO, XCAL Field quality measurement, Deployment
CellPLAN/CISS/T-EOS: Network Design & Optimization Apollo: Access Analytic Platform of Intelligent Operation
Suggested
ITM/DPI: Intelligent Traffic Management T-PANI: Customer Experience Management
Solutions T-WAVE: Backhaul quality Management VoLTE NMS: VoLTE quality Management
SDN-NMS: IP Backbone Network Management
- 42 -
The Future is not to predict but to achieve