Operators strategy for supporting the ‘Mobile Data Explosion’

Operators strategy for supporting the ‘Mobile

Data Explosion’

Zahid Ghadialy

Managing Director, eXplanoTech Ltd.18/04/2012

Briefly about eXplanoTech

Non-Confidential

© eXplanoTech Ltd.2

Technical Consulting

• Requirement Analysis

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Agenda

� Statistics and the Problem(s) summarised

� A look at ‘Network Capacity’ calculation

� Small Cells

� WiFi

� New features in 3GPP Standards

� Spectrum Issues

� TV White Spaces (TVWS)

� Carrier Aggregation

� Dynamic Spectrum Management (DSM)

� Case Study of a US Operator

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Mobile data exploding – Random scary stats

� Median smartphone data usage at

AT&T was up 888% and up 551% at

Verizon this past year.

� In 2009, the top 3% of heavy users

generated 40% of wireless

network traffic. Now, these users

account for 70% of the traffic.

� The heaviest users of mobile data

watched videos 40% of the time,

surfed the Web an additional 20%,

and used up the rest of their

online time in e-mails, social

networking, file sharing and

software downloads.

Non-Confidential

© eXplanoTech Ltd.4

Data Explosion: Myth and Reality

� The mobile data is not growing

as fast as was initially expected.

� This does not mean that the

operators do not have to

worry about coping with the

data demand

� Data traffic vs Revenues may

not be as bad as initially

thought

Non-Confidential

© eXplanoTech Ltd.5

Time

Traffic

Revenues

Time

Traffic

Revenues

Initial Prediction

Based on current data

The Good News

Non-Confidential

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� There is still a huge market for accessing internet/data on the phones

The Bad News

Non-Confidential

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� Infograph Source: http://www.localytics.com/blog/2012/only-6-of-ipad-app-

sessions-on-cellular-connection/

� Users want ‘true unlimited’ data plans from

their operators

� WiFi is always the preferred choice of the users

to access data:

� Its easy to setup and use in the modern devices

� Different reports point out that most of data from the

tablets do not go through the operators networks

� More phone users are switching on WiFi for data

usage

� Localytics, an App analytic company found in

the USA that 89.7% of iPad sold are WiFi only.

Among iPad’s with 3G connectivity 55% usage

is over WiFi and in LTE iPad’s, 64% usage is

WiFi

The problems summarised

Operators

� How to generate more revenue

and recoup investment in Next-

G networks

� How to get more users to use

the mobile networks

� How to optimise the networks

so there are no bottlenecks

� Increase network capacity to

handle more users

� Better cell edge coverage for

the users

� How to monetise the usage of

WiFi

Users

� How to get cheapest possible

(unlimited) data plan with

fastest possible access (4G)

� How to avoid ‘Bill shock’ and

reduce network usage

� How to get better coverage

and reduce latency

� Why does the loading of pages

fail sometimes

� Why does loading of pages take

too much time

� How to get access to more WiFi

hotspots without paying and

worrying about login & security

Non-Confidential

© eXplanoTech Ltd.8

‘Network Capacity’ calculation

Non-Confidential

© eXplanoTech Ltd.9

Network

Capacity

= Quantity of

Spectrum

x Cell

Spectrum

Efficiency

x Number of

Cells

(bps) (Hz) (bps Hz-1)

Since 1947 ‘Network Capacity’ has increased

by a Million

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© eXplanoTech Ltd.10

But Data Usage has exploded as well

� The easiest way to increase the

number of cells is to have more

small(er) cells.

� The easiest way to cope with

this explosion is to increase the

number of cells

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© eXplanoTech Ltd.11

‘Small Cells’ to the rescue

� Small Cells has to happen:

� To improve speeds for users on Macro and on ‘small cells’

� To offload traffic and improve capacity of the network

� To improve coverage by reducing interference

Non-Confidential

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But other problems may arise

� Operators expect users to pay for the ‘Small Cells’ but

most users expect them for free, especially business users

� If ‘Small Cells’ are not planned properly then they can

cause interference with the network and create coverage

black holes

� The data traffic still has to go through the operators

network and handling high amounts of data can still be a

problem for the operator

� The ISP’s are not happy with carrying operator traffic and

may cause problems or ask for compensation

� Even though the Access security is improved for the user,

the operator is exposing the network to potential hackers

Non-Confidential

© eXplanoTech Ltd.13

‘WiFi’ – The real saviour?

� Over 1 billion units of WLAN chipsets are expected to ship this year

� Expected to double by 2014

� Operators that have deployed Carrier WiFi

� China Mobile – 1 million hotspots by end of 2013

� China Telecom – 1 million hotspots by end of 2012

� SK Telecom – 60,000 hotspots by end 2011

� Korea Telecom – 100,000 hotspots by end 2011

� KDDI, Japan – 90,000 by Q2 2012

� Skyhook (a company that pioneered WiFi based positioning system)

has already have over 250 million access points in its database [June

2011]

� Australian operator Telstra closed their Carrier WiFi network in Feb.

as they rolled out ‘Mobile WiFi’ based on LTE.

Non-Confidential

© eXplanoTech Ltd.14

WiFi v/s Small Cells

WiFi (802.11n)

� No Spectrum constraints

� 40MHz available in the 2.4GHz

band

� Latency is better than mobile

networks

� Throughput upto 600Mbps in

40MHz BW using 4x4 MIMO

� Radio cheap and already in

most new mobiles, laptops and

tablets.

Small Cells (HSPA+/LTE)

� Licensed Spectrum only

� Large bandwidths not always

possible

� Latency not as good as WiFi

� HSPA+ DL in Rel-11 upto

672Mbps and LTE DL in Rel-10

upto 600Mbps in 40MHz BW

using 4x4 MIMO.

� Radio expensive and not as

easily available in laptops and

tablets.

Non-Confidential

© eXplanoTech Ltd.15

Benefits of Carrier WiFi

� ‘Offload’ mostly at traffic

hotspots like airports,

shopping malls, etc.

� Reduced price data on ‘Pay as

you use’ schemes.

� Reduced price data roaming

internationally. MVNO’s can

cash on this big time.

� ‘Onload’ when the data speeds

are low due to network

congestion.

� Can be offered to subscribers

using non-cellular devices as

‘perk’.

Non-Confidential

© eXplanoTech Ltd.16

New features in 3GPP standards

� New features are being developed by 3GPP that are

intended to provide a value addition to the Mobile

Broadband offering and making it more integrated with

WiFi for value addition

� Local IP Access (LIPA) – Release 10

� Selected IP Traffic Offload (SIPTO) – Release 10

� IP Flow Mobility (IFOM) – Release 10

� Continuity of Data Sessions (CSN) – Study item in Release 12

Non-Confidential

© eXplanoTech Ltd.17

Local IP Access (LIPA)

Non-Confidential

© eXplanoTech Ltd.18

IP Core Network

Residential/Enterprise

IP Network

Scope for Local

IP Access

Logical connection for

mobile operator IP trafficHeNB

Selected IP Traffic Offload (SIPTO)

Non-Confidential

© eXplanoTech Ltd.19

IP Core Network

Residential/Enterprise

IP Network

Logical connection for

mobile operator IP trafficHeNB

Internet

Data Traffic

IP Flow Mobility (IFOM)

Non-Confidential

© eXplanoTech Ltd.20

IP Core Network

Residential/Enterprise

IP Network

Data Traffic Path 1

Internet

Data Traffic Path 2

Continuity of Data Sessions (CSN)

Non-Confidential

© eXplanoTech Ltd.21

HeNB

IP Core Network

Residential/Enterprise

IP Network

Scope for Local

IP Access

Logical connection for

mobile operator IP traffic

TV White Spaces (TVWS)

� Main driver for TVWS is that they are in the sub 1GHz

band that can increase coverage significantly

Non-Confidential

© eXplanoTech Ltd.22

Sub 1GHz band is ‘Platinum Band’ in Japan

Non-Confidential

© eXplanoTech Ltd.23

Interference is the biggest Issue

Non-Confidential

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Carrier Aggregation (CA)

� Contiguous and Non-Contiguous

� Multi-carrier

� Two 5MHz carriers in 2100MHz to make a 10MHz carrier

� Multi-band

� For example 5MHz from 2100MHz and another 5MHz from 900MHz

� LTE Inter-mode Carrier Aggregation

� Aggregating FDD and TDD bands

� Inter-technology Carrier Aggregation

� For example LTE & HSPA+

� Licensed-Unlicensed Carrier Aggregation

� LTE + WiFi

Non-Confidential

© eXplanoTech Ltd.25

Dynamic Spectrum Management (DSM)

Non-Confidential

© eXplanoTech Ltd.26

Things to remember for any Dynamic

Spectrum Management Techniques

� The operator network would have to implement the

technology but the devices would have to support the

bands

� The Spectrum would be generally available for use by all

operators and maybe other devices/technologies and it

would also vary from one area to another. As a result a

central authority would be required to handle this

� The government/authorities would not let this spectrum

be used for free, forever. As soon as a workable solution is

available they are bound to ask for some kind of fees.

� The whitespaces would be auctioned or sold in future and

it would have to be decided in advance if there is a case

for using them for a certain duration of time.Non-Confidential

© eXplanoTech Ltd.27

Case Study of a US Mobile Operator

Non-Confidential

© eXplanoTech Ltd.28

Data reproduced with kind permission of Keima Wireless

using the ‘Overture’ tool

Non-Confidential

© eXplanoTech Ltd.29

D.H. Ring, Bell Labs - Telephony - Wide Area Coverage, 11 December 1947D.H. Ring, Bell Labs - Telephony - Wide Area Coverage, 11 December 1947

1947

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2012

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2012

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Putting it all together

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