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Making the World Smaller

with Small Cell

David Zheng
Vice President, Huawei SmallCell Product Line
4st March 2015

HUAWEI TECHNOLOGIES CO., LTD.


Content
1. Industry & Market Trend

2. Scenario & Solution

3. Successful Cases

Page 2
Changing of Service & Behavior Leads to Traffic Pulse

Voice traffic ->Video traffic : Synchronous voice ->Asynchronous data:


200X 20X
4000 Active User number 0hr  
2000 2160p   2160p   23hr   45 1hr  
Benchmark throughput 10.3Mbps   21.6Mbps 22hr   2hr  
Airport  
[Kbps] (H.265) 21hr  
30
3hr  
1000 Hospital  
20hr   4hr  
15 Hotel  
19hr   5hr  
Macro  
512 512 512 18hr   0 6hr  
Cloud/ FTP
720p   1080p  
240P video

360P video

480P video

384 Mall  
256 300 2.4Mbps 5.4Mbps
Gaming

17hr   7hr  
M-blog

WWW

128
Music

Subway  
VOIP

SNS

16hr   8hr  
Office  
15hr   9hr  
Bad Good Other  
14hr   10hr  
Excellent 13hr   11hr  
12hr   School  

12kbps->2.4M bps <5% online ->nearly 100% online


200X 20X

From voice era to data era: 4000 times traffic growth per unit
Page 3
On Demand Digitization Enterprise

Micro Can Improve User Experience Wherever It is Needed


Macro sites only is not enough for coverage Micro is the key to hotspot and week coverage
in LTE era spot in urban area

Macro Capacity
Capacity
/Traffic Traffic Demand
Hotspot

Weak
coverage spot

Shenzhen, China
Massive weak coverage points(red) after 10,000+ LTE Coverage
macro sites deployed in Shenzhen City

Micro is needed for quick and cost effective deployment to guarantee user experience

Page 4
On Demand Digitization Enterprise

Indoor Coverage Digitization: Capture Traffic Pulse to Guarantee Experience


DAS cannot capture the traffic pulse Hot zone with high traffic need to be on load

1665* airport
Capacity demand

Capacity
2250 train station
of DAS

12400 stadium

Indoor
Peak time Peak time

49400 shopping mall

…… hospital/campus..

n  Capacity of traditional analog coverage


solution is fixed
n  Capacity demand at peak time is suppressed
* Data from Google and Wikipedia

Page 5
Indoor coverage solution need to be redefined
On Demand Digitization Enterprise

Enterprise Mobilization: Application Move from PC to Smart Phone

With the development of smartphone, BYOD More and more employees Prefer to BYOD
is becoming the main work style for work

90%

85% 82% 82%


80%
80%

74%
75%

70%

65%

60%
Smartphone
55%

50%
choose own smartphone for work choose own tablet for work

adoption among director-level and above employees


adoption among below director-level employees

BYOD Drives Enterprise Mobile Service Market Growing Quickly


Page 6
Content
1. Industry & Market Trend

2. Scenario & Solution

3. Successful Cases

Page 7
Increase ROI by Increasing Revenue and Decreasing TCO

Revenue - TCO
ROI =
TCO

Page 8
On Demand Digitization Enterprise

Outdoor On Demand Network with Small Cell

TCO Analysis of Micro


BTS in Europe
Revenue - TCO
ROI = 9% 21%
15%
TCO 15%
35% 5%

Revenue = Traffic + New Service


Site BOX NRO Backhaul Maintenance Others

TCO = Site + Backhaul + BOX+ Others

Page 9
On Demand Digitization Enterprise

“Site Crowd Sourcing” Reducing Site Cost Enables Scaled Deployment

Lamp pole,Power pole… Bus Stop,AD Box, Phone Booths,MFC …


Hot-Zone & Not Spot Coverage

Hot-Spot Coverage
Higher Coverage & Capacity efficiency
• Multi-RAT & multi-band box for site &
backhaul saving Higher Capacity
• Improving ROI with higher power • Higher Integration & heat dissipation for
transmission for larger coverage deployment in confined space
• Powerful baseband for higher capacity • Lower power transmission for limited coverage
• Optimizing for wired backhaul
Page 10
On Demand Digitization Enterprise

Wireless Backhaul Reduce Transmission Cost Accelerates Deployment

Wired transmission on-site Wireless transmission on-site


Economical wireless backhaul: Relay
Proportion of Fiber On-site (Macro)
100% Relay 
F1
90% smallcell 
80% F1 F1/F2
70%
60% Relay 
F1
50% smallcell 
Relay 
40%
F1/F2
30%
smallcell 
20%
F1/F2
10%
0%
Europe China Japan & North APAC Relay is the appropriate wireless backhaul in early stage
Korea America
l No dedicated spectrum for backhaul
Source: Huawei Survey
l Low installation cost
l Development of small cell fast, where P2P fiber/PON is rich l Low volume and power consumption

Page 11
On Demand Digitization Enterprise
Digitization Releases Indoor Traffic Demand

Revenue - TCO
ROI =
TCO

Revenue = Traffic + New Service

TCO = Site + Backhaul + BOX+ Others

Page 12
On Demand Digitization Enterprise

LampSite Captures Traffic in Indoor Hot Zone: Flexible Cell Split for
Traffic Pulse and Smooth Evolution

Capacity evolution management Automatic Tide-effect Traffic Management

Dinning Area Dinning Area

PCell2 PCell3

PCell1 Dinner
Cell 1 Hours
PCell 4
Cell 1
Cell Split Cell 2 Office Area Office Area

Cell 3 PCell2 PCell3 Working


Cell 2 Hours
PCell1
Cell 4
PCell 4

Cell 5
Cell 3
Cell 6 ü  Real-time tide traffic monitoring
BBU BBU ü  Dynamic capacity adjustment
ü  Dynamic share of baseband resource
ü  Reduce initial investment

Page 13
On Demand Digitization Enterprise

Pico BTS Captures Traffic in Indoor Hot Spot: Fast Fill “Capacity Not spot”
Left by High Band LTE

Poor deep indoor coverage with Macro due “Capacity Not spot” due to the gaps between
to high band LTE requirement and coverage

Gap 1: Higher Traffic Gap 2: Smaller


Requirement at Cell coverage with higher
Edge frequency band

12kbps XMbps

High band coverage in MBB time

Low band coverage in voice time

Page 14
On Demand Digitization Enterprise

New Service Helps Carrier Entry Enterprise Market

Revenue - TCO
ROI =
TCO

Revenue = Traffic + New Service

TCO = Site + Backhaul + BOX+ Others

Page 15
On Demand Digitization Enterprise

Enterprise Service based on Digitized Cellular Network

3rd APP Server


BYOD expansion from fixed IT System Enterprise service moving to cellular
to cellular network network for low cost and new value
API
Local voice & Service
data service Anchor

Wi-Fi AP Fixed Line Wi-Fi AP Pico LampSite

Page 16
On Demand Digitization Enterprise

A Win-Win Business Model Ripening Industry Chain

New Service Site Cost

APP Host & Sell system Sell the service or product

Wireless
Solution
App Telecom
Operator Enterprise Subscriber
Supplier Vendor
Equipment
fees
Pay for Value-added service Pay for service or product
App fees

Page 17
Content
1. Industry & Market Trend

2. Scenario & Solution

3. Successful Cases

Page 18
On Demand Digitization Enterprise

Case1: Pole Acquisition for Scaled Micro Deployment

Co-Channel / continuously deployment

33%
Traffic  on  load  33%    
53.18
(Gbit)   •  Onload  33%  traffic    
60%  Micro  /  macro  in  2013   92.22
69.38 •  Offload  43%  for  macro  
•  Reduce  congesBon  risk  
Number  of  Micro  will  Surpass  Macro  in  2014  
before after
Micro   macro only Hetnet macro
Volume  

Hetnet micro
Macro  

2012 2013 2014 2015 2016 2017


“Mobile  operator  T  uses  small  cell  to  break  the  
frequency  resource  limita8on  …  
l   10,000+    pole  acquisiBon  for  Micro  deployment  
l   U/L,  Co-­‐carrier  deployment  

Page 19 Page 19
On Demand Digitization Enterprise

Case2 : Capacity is not Bottleneck Anymore in Indoor Hot zone

Railway Station, Zhengzhou City ROI<2Years


China,China Unicom
Daily Traffic DL+UL(GB) W. LampSite:
70.0 Avg. 64.4GB

60.0

50.0
340%
40.0

30.0 W/O. LampSite


Avg. 18.8GB
20.0

10.0

0.0

Page 20
On Demand Digitization Enterprise

Case 3:Shanghai Service Live Demo --Navigation

RTMap Application

BBU

RHUB

Map View Video View pRRU pRRU pRRU

User Cell Phone


Page 21 Page 21
THANK YOU
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