COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 1 COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. SMALL CELLS FOR HOME, ENTERPRISE AND METRO FEBRUARY 2012
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. 1
COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED.
SMALL CELLS FOR HOME, ENTERPRISE AND METRO
FEBRUARY 2012
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AGENDA
• Market Landscape
• Next Generation HetNet
• More Choices for Coverage and Capacity
• Small Cells Business Cases
• Alcatel-Lucent Small Cell Solution Architecture
• Small Cell Access Points
• Key Features
• Small Cell APIs and Application Ecosystem
• Small Cells – a Major Part of our Mobile Broadband Future
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DEVICE TYPE AND NETWORK LOAD30x GROWTH EXPECTED IN NEXT 5 YEARS!
Source: Alcatel-Lucent analysis of various customer networks using Bell Labs tools
iPad is 2x that of iPhone!
406394
171
118
223
77
15
iPhone Blackberry Android Datacard
Data Calls per Day (signaling)
Megabytes per Day (bandwidth)
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A SIGNIFICANT DEVICE AND USER SHIFTFROM CIRCUIT TOWARD IP AND MULTIMEDIA
Source: iGR Inc., June 2011 and available industry statistics
• 250 millionFacebookmobile subs
• 2 billion videos per month watched on Facebook
• 2 billion videos per day watched on YouTube
From basic communicationsto entertainment
and social networking
What would you like to do?
0% 20% 40% 60% 80%
Watch TV
Surf Internet
Watch videos
Play games
Talk
Text
What do you currently do?
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KNOWN CURES FOR IMPROVING USER EXPERIENCE
• Introduce LTE / 4G technology- Upside: Raises the amount of network capacity and
improves the user experience (similar to improvements made in wired networks of DSL or cable data)
- Downside: Requires more equipment, usually in another band (which can have worse loss characteristics)
• Move antennas closer to user to decrease over-the-air loss
- Upside: Improves network capacity
- Downside: Requires even more equipment (more transmitter / receiver combinations; small cell sites)
The Industry Goal is to Become Less-Obtrusive while using Less Power
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ADDRESSING AN EXPLODING MARKET POTENTIALISSUES WITH A MACRO-ONLY APPROACH
Poor in-building Penetration
• Data loads can exceed capacity, necessitating new carriers or new sites / cell splits
Rural Access
Poor Residential Coverage
• RF penetration through glass, steel and concrete
Indoor HotspotsOutdoorHot Spots
• Expensive for rural coverage
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CELLULAR COVERAGE IS NOT CREATED EQUALDISTANCE = LOSS = LESS RELIABLE THROUGHPUT
60% of Broadband Subscribers are Interested in Small Cells!
Do you Experience?• Dropped Calls: 16-47%• Poor voice quality: 19-49%• Slow Internet: 32-72%• Slow email: 21-61%
Source: Parks Associates data commissioned by Femto Forum
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THE LIMITS OF MACRO BTS-ONLY STRATEGYCLAUDE SHANNON PREDICTED OUR DILEMMA
Source: Bell Labs analysis
2
4
-5 +5 +15
Peak
dat
a ef
ficie
ncy
(bps
/Hz)
Signal-to-noise ratio (dB)
Limits of 2G, 3G, 4G
SHANNON-BOUND
Infeasible region
EV-DO
LTE
HSDPA
A good experience
A bad experience
Network load, frequency band, and distance all make a difference
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WHAT’S REQUIRED IS A NEW KIND OF NETWORKTHE NEXT GENERATION HETNET
• Support a multi vendor environment
• Mitigate interference
• Incorporate intelligent traffic management features
• Provides a seamless end user experience
HETNET COORDINATES WITH MACRO NETORKS
• Ubiquitous coverage
• High bandwidth capacity
• Superior QoE
• Cost efficient capacity and coverage in all environments
HETNET PROVIDES
Small Cells Are a key Component of Any HetNet
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SMALL CELLSMORE CHOICES FOR COVERAGE AND CAPACITY
Enterprise Small Cell
Home Small Cell
Metro Cell
Enterprise Small Cell
WiFi Hotspots
DistributedAntenna
3G/4G Macro3G/4G Macro
WiFi
9361 Home Cell
9362 Enterprise
Cell9363
Metro Cell Indoor
9364 Metro Cell Outdoor
9764 Metro Cell Outdoor
W-CDMA (Wi-Fi optional)
9362 Enterprise
Cell
Private Small Cells Public Small Cell
9768 Metro Radio
Outdoor
9764 Metro Cell
Outdoor LTE 2X1W
9764 Metro Cell Outdoor
LTE 2X5W
9363 Metro Cell Outdoor
MS/Wi-Fi
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THE HOME CELL BUSINESS CASERETENTION & PERFORMANCE IS OFTEN STEP 1
The simple case- First costs
- Subscriber remarketing and acquisition costs: $250-400*
- A retained revenue stream
Femtocell $160Other costs $80Sub-total $240Paid by customer ($50)
Net first costs $190
* new equipment included
• Up to 60% downlink improvement• Up to 26% uplink improvement• 20-50% network traffic offload
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HOME CELL BUSINESS CASEGAINS IN SEVERAL DIMENSIONS
Macro offload savings (CAPEX) 6%
Churn reduction savings/ Secured revenue 13%
Additional ARPU 15%
Market share gain (3G ) 26%
Macro offload savings (OPEX) 3%
Femto fees 3%
Value added services 11%
Market share gain ( xDSL) 24%
Femto network CAPEX 15%
Femto OPEX 17%
Other expenses (G&A, Bad debt) 4% DSL network (CAPEX/OPEX) 2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Revenue/Savings Expenses
Market Share Gain (50%)
Churn Reduction 13%
Macro Offload Savings (9%)
Incremental ARPU (26%)
Posi
tive
NPV
Home Cells Business Case Revenue and Expense Split
DPP = 25 monthsIRR = 194%NPV = 21,595 M€
Source: Bell Labs analysis
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ENTERPRISE CELL BUSINESS CASEMORE BUSINESSES COVERED FOR LESS
Enterprise Cells 8 usersEnterprise Cells 16 usersPico cellDAS
50 €
100 €
150 €
200 €
250 €
0 €
SOHO SME Corporate
Cos
t pe
r Em
ploy
ee (
in E
uros
)
5 Year Total Cost of Ownership
Enterprise Cells, the Most Cost-effective Solution for All Business Sizes
Source: Bell Labs business modeling Mar 2010
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METRO CELL BUSINESS CASEBETTER COVERAGE, HIGHER THROUGHPUT, LESS TCO
Source: Bell Labs analysis based on dense urban area using dedicated carrier
Year 1 Year 2 Year 3
Macro BTS
MacroBTS
MacroBTS
Metro Cells
Metro Cells
Metro Cells
OPEX CAPEX Backhaul
Total cost of ownership (000 Euros)
0
200
400
600
800
1,000
1,200
640K€ vs. 1.4M€!
<3 Mb/s
<5 Mb/s
<10 Mb/s
>10 Mb/s
YEAR 1
<3 Mb/s
<5 Mb/s
<10 Mb/s
>10 Mb/s
YEAR 2
<3 Mb/s
<5 Mb/s
<10 Mb/s
>10 Mb/s
YEAR 3
<5 Mb/s<10 Mb/s
>10 Mb/s
YEAR 4
USER THROUGHPUT BASED ON LTE MODEL
NUMBER OF SIMULTANEOUS USERS
90% Coverage
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ALCATEL-LUCENT SMALL CELL SOLUTIONSOLUTION ARCHITECTURE
• Alcatel-Lucent pre-integrated E2E solution
• Highly scalable, high capacity solution
• True flat IP architecture
• Bell Lab’s SON innovation
• 3GPP standards compliant, including IuhRelease 8 interface
• Proven comprehensive security mechanisms
• Applications enablement with APIs and SIP interface to presence/application server
• Internet traffic offload, minimizing impact on SGSN and GGSN
• SCMS OA&M solution integrates both with macro network OA&M and customer care
Small Cell Access Points
Small Cell Gateway
Small Cell Management System
3GPP UMTS Core Network
Small Cell Gateway SCMSWPS
Motive HDM WMS
9365 BSR Gateway
SeGW
IPC
AAA
NTSALSMS
MSC Server SGSN
GGSNPresence/ Application
ServerHLR
3GPP Interfaces (IuCS, IuPS, MAP and SIP)SNMP and TR069
3GPP Iuh or Iu’IPSEC Tunnel
9361 Home Cell
9362 Enterprise
Cell
9363 Metro Cell
Indoor
9364 Metro Cell Outdoor
9764 Metro Cell Outdoor
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SMALL CELLS - FOR HOME, ENTERPRISE AND METRO
9361 HOME CELL
9362 ENTERPRISE
CELL
9363 METRO CELL INDOOR
9364 METRO CELL OUTDOOR
9764 METRO CELL
OUTDOOR
• W-CDMA• Integrated
omnidirectional antenna
• 4 to 8 users
• W-CDMA• Integrated or
external omnidirectional antennas
• Rx diversity• Small cell net• 8 to 32 users
• W-CDMA• Tamper resistant • Integrated or
external omnidirectional antennas
• Rx diversity• HSDPA 64 QAM• Small cell net• 16 to 32 users
• W-CDMA• Ruggedized design• External omni
directional antenna• Rx diversity• HSDPA 64 QAM• Range 2 KM at
120m/h• 16 to 32 users
• W-CDMA• Outdoor for indoor
or outdoor coverage• 2 integrated
directional lightRadiocube antennas
• Integrated BBU• RX diversity• Modular metro dock
design• Optional Wi-Fi AP• Up to 32 users
9768 METRO RADIO
OUTDOOR• LTE• Outdoor for indoor
or outdoor coverage• 2 integrated
directional lightRadiocube antennas
• Distribute BBU• RX diversity• 2X2 MIMO• CPRI • Up to macro-like
capacity daisy chaining
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HOME CELL SW LICENSING FOR MORE DEVICE CHOICES
WHAT IT MEANS FOR END USERS WHAT IT MEANS FOR OPERATORS
• More device choices for home coverage
• Less home networking devices
• Reduces complexity of home networks
• Easier installation, operation and maintenance of home networking devices
• Enables operators to maintain or extend existing relationships with CPE vendors
• Enables operator customized designs
HOME CELL INTEGRATEDRESIDENTIAL GATEWAYS
FROM 3rd PARTY CPE VENDOR
NETGEAR 9361 HOME CELL
SW ENABLED HOME GATEWAY
THIRD PARTY CPE VENDOR HW & SW
ALCATEL-LUCENT
9361 HOME CELL SW
TECHNOLOGY REFERENCE
DESIGN
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INTRODUCING THE NEW 9362 ENTERPRISE CELL V2.2 WITH PAY-AS-YOU GROW CAPACITY
• 16 users upgradable to 24 & 32 with licensing
• 100 mW upgradable to 250 mW with licensing
• Rx diversity for improved RF performance
• Minimum to no radio planning: SON & small cell net
• Free standing or wall mountable
• Flexible power: AC/DC power adaptor or Power over Ethernet+
• Ethernet backhaul with pass-through Ethernet RJ45 for additional device
Pay for Only What You Need When You Need It
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INTRODUCING LIGHTRADIO CUBE-BASED METROS 9764 METRO CELL OUTDOOR AND 9768 METRO RADIO OUTDOOR
• 3G metro trials under way in Europe
• 4G trials in the US and Europe
• Commercial 3G and 4G products available in 2012
• Delivers
− Optimized service delivery and installation
− Green bandwidth
− Reduced network TCO
LightRadio Cube-Based Metro Cells and Radios Are Here
lightRadio Cube Inside
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9764 METRO CELL OUTDOORPROVIDES INDOOR COVERAGE FROM AN OUTDOOR LOCATION
• W-CDMA all-in-one metro cell operating in 2100 MHz
• 38 dBm (6W) EIRP transmit power
• 2 integrated directional lightRadio cube antennas for higher throughput, lower interference, and greater power efficiency
• Rx diversity for improved RF performance
• Offers integrated Wi-Fi access point with optional Wi-Fi module
• One person install on lamp post, pole, or side of a building
• Installed outdoors for coverage indoors or out
• Fully compatible with Alcatel-Lucent 9360 Small Cell solution
Easily Accessible for Installation, Operations, and Maintenance
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9764 METRO CELL OUTDOOR SERVICE MODULE INNOVATION
Metro Dock
RF Box
Assembled Metro Cell
ALCATEL-LUCENT SERVICE MODULE DESIGN
Co-Created with Customers to Meet Customers’ Needs
• Modular metro docks support multiple backhaul options
• Thin metro dock - GigE, GPON, Wi-Fi
• Thick metro dock –DOCSIS, DSL
• Deployment flexibility - site may be prepared separately from technology rollout
• Easier frequency swaps and technology upgrades - just replace RF module
• Investment optimization – LTE only when and where needed
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Provides High Bandwidth to Stadiums, Malls, Convention Centers, Large Enterprises, etc.
• LTE distributed Metro Radio operating in 2.6 GHz
• 2 integrated directional lightRadio cube antennas
• 34 dBm EIRP at each antenna
• 2-path Rx diversity and 2x2 MIMO-enabled cross-polarization for improved RF performance
• One person install on lamp post, pole, or side of a building
9768 METRO RADIO OUTDOORDELIVERS MACRO-LIKE CAPACITY TO WHERE IT IS NEEDED
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9768 METRO RADIO OUTDOORDISTRIBUTED eNodeB ARCHITCTURE
Offers Deployment Flexibility Coupled with Optimized Use of BBU Digital Assets
• Reduces costs by leveraging same BBU resources as macro network
• Deployment flexibility - works with conventional and clustered BBUs
• CPRI daisy chaining enabling multiple MROs to share same backhaul to BBU
• Fully compatible with Alcatel-Lucent 9926 d2U
BBU orBBU cluster
SGW PGW
CPRI
CPRI daisy chaining
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WI-FI INTEGRATED SMALL CELLSLEADS TO NEW OPPORTUNITIES
Smartphone Popularity
Cellular Data Growth
Wi-Fi Popularity
New Business Models
Expanded Capacity
Expanded Enterprise Business
Reduced TCO with 1 Site Location, 1 Installation, 1 Backhaul and Daisy Chaining
Market Conditions
New Opportunities
9764 Metro Cell Outdoor
9363 Metro Cell Indoor MS
Plus Alcatel-Lucent
Wi-Fi Integrated Small Cells
Integrated Residential Gateway based on 9361 Home Cell SW Licensing
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9365 BSR GATEWAYA POWERFUL PERFORMER
• Single gateway for Home, Enterprise and Metro Cells
• High capacity – 6X more capacity
• Highly scalable with pay-as-grow capacity
• Based on Alcatel-Lucent field proven ATCA v2 platform
• Carrier grade reliability with no single point of failure
Ready for Massive Small Cells Rollout
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• Handles every task related to Small Cell management, including:‐ zero-touch provisioning‐ configuration updates‐ software upgrades‐ problem diagnosis & troubleshooting
• CPE-vendor-agnostic system capabilities based on the Broadband Forum TR-069 standard
• Proven solution‐ Over 80 global customer references‐ More than 40 million CPE under
management
MOTIVE HDMPART OF THE AWARD-WINNING DIGITAL HOME CARE SOLUTUION
Home Device Manager(HDM)
Customer Service Management
CSR CSCIPTV VoIP HSIA Firewall / Security …VoD
Network Analyzer
(5530 NA)
DevicesApplications
ServicesHome Networking
Security…
Call CenterOperationsMarketing
TR-69 Devices
Other Devices
Support
Maintenance
Activation
Assurance
SSC
Application Lifecycle Manager(ALM)
SMP
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SELF-CONFIGURING AND SELF-OPTIMIZINGAVOIDING OPERATIONAL COMPLEXITY
Interference ManagementSelf-configuration Automatic Neighbor
Relation Handover
Optimization Load Balancing
Minimized Call DropsPlug & Play Reduced
Handover FailurePainless Network
Densification
Optimized Resource Usage &
Improved QoE
Integration
Optimization
Site acceptanceContinuous
optimizationOAM
Bell Labs SON Innovation
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SECURITYTHREE LAYERS OF SECURITY
3GPP W-CDMA Network• 3GPP subscriber authentication• 3GPP ciphering for air interface
security
Small Cell Gateway• Network firewall• Authentication of small cell
signaling messages• Enforcement of ACL based on
operator consent
Small Cell Access Points• Sealed tamper-evident unit• Secure boot and upgrade procedure• Integrity checking of critical stored
data• Embedded network firewall
• IPSec Tunneling• Small cell authentication
‐ Shared secret based authentication
‐ Certificate-based authentication
‐ Dual certificate and USIM authentication (Future)
Between Small Cell Access Points and Small
Cell Gateway
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SMALL CELLSFOR DEDICATED AND SHARED CARRIER DEPLOYMENT
Carrier #1 (macro)
Carrier #2 (small cell)
Shared single carrier
Shared multi-carrier
Increased in
novation
INTERFERENCE MANAGEMENT
Automatic power control
Automatic code allocation
Automatic coverage optimization
Network listening techniques
Automatic carrier selection
Optimized access point selection
Idle mode distribution
eICIC & frequency selective scheduler
Better coverageImproved spectral efficiencyReduced unnecessary handoversReduced signalling load
Directional and multi-array antenna technologies
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HANDOVERSSEAMLESS MOBILITY WITH MACRO AND OTHER SMALL CELLS
Small Cell to Small Cell• Handovers supported for all calls (CS, PS and CS+PS)• Small cell to small cell within the same group• Small cell to small cell within different groups (future)
Small Cell to Macro Handovers• Handovers supported for calls (CS, PS and CS+PS)• Small cell to 3G macro• Small cell to 2G macro• UE assisted small cell to macro (increases success rate)• Intra-frequency small cell to 3G macro Mobile Assisted
Handover ( MAHO) (shared carrier deployment)
Macro to Small Cell Handovers• Handovers supported for all calls (CS, PS and CS+PS)• 3G macro to small cell• 2G macro to small cell
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END-TO-END QUALITY OF SERVICEASSURING END USER SATISFACTION
SMALL CELL SOLUTION FEATURES
• DSCP QoS classification and Marking• Layer 2 QoS• Queue management• Traffic shaping• CAC• Backhaul bandwidth measurement• Dynamic MTU size adaptation• 2 IPSec tunnels• Real-Time Monitoring of backhaul bandwidth• RTCP for IuCS over IP
ALCATEL-LUCENT EXPERIENCE AND EXPERTISE
• Full End-to-end QoS Management Mastery• #1 in DSL - > 215 M lines shipped• #1 in GPON• Leading position in IP• Full ecosystem testing capabilities
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FEATURES PER MARKET SEGMENTFOR ENHANCED HOME, ENTERPRISE AND METRO DEPLOYMENTS
HOMES• Access Control (Open,
Prioritized Open, close)
• Auto-configuration
• Self-optimization
• Handovers to/from macro
• Automatic carrier selection
• Continuous Coverage Optimization Based on Admission
ENTERPRISESHome feature set plus:
• Up to 32 Users per Enterprise Cell
• Small Cell Group Support
• Joint Coverage Optimization (future)
• Auto-configuration of Small Cell Neighbor List
• Small cell to Small Cell Handovers
• Extended ACL Size (up to 10K)
METROEnterprise feature set plus:
• Indoor and Outdoor Metro Cells
• Up to 32 Users per Metro Cell
• Service Based Redirection
• Increased paging Capacity for Large Metro Deployments
• Extended Cell and Speed Range (Rural)
• Enhanced Fault and Performance Management
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SMALL CELL API AND THE APPLICATION ECOSYSTEMCAPTURING ADDITIONAL VALUE
• Rapidly create new services
• Provider-based apps or OTT/App content providers
- Enable location-aware services, personalized content push, and interaction with the environment based on proximity
• Blend the power of a trusted network with the innovation of the web
• From years to weeks, while controlling costs
Time
Identity
Location
Status
Apps API
Revenues
Services
Subscribers
Service provider
Developers
Payment
Security
Rich Location
B’cast/multicast
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SMALL CELLS BASED APPLICATIONSARTGUIDE – AN EXAMPLE OF MUSEAM APPLICATION
Small Cells
Provides presence and location information via APIs to application server
Provides access control and facilitates user verification
Enables push personalized content and user interaction with the environment.
Museum ticketing service
User presence detection
Automatic Gate
Museum-Backend Systems
Content download and interaction
Software Provisioning
1
2
3
4a
4b
5
6
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SMALL CELLS BASED APPLICATIONSEXAMPLE OF PRESENCE APPLICATIONS
Sally moves intogeo fence
•“Try the Pizza there. It’s Great!”
- Mike
•“Try the Pizza there. It’s Great!”
- Mike•I’m @ Club54
•C U there!” – Jen(social networking)
•I’m @ Club54•C U there!” – Jen
(social networking)
• Buy 1 cup get 2nd half off! -[coffee shop](mobile marketing)
• Buy 1 cup get 2nd half off! -[coffee shop](mobile marketing)
• Get 15% off @ -
[show store]
• Get 15% off @ -
[show store]•Antiques show 1 block North –
[show organizer]
•Antiques show 1 block North –
[show organizer]
Geo Fence
•Scorsese filmed “Taxi Driver”
here! – [movie trivia]
(premium content)
•Scorsese filmed “Taxi Driver”
here! – [movie trivia]
(premium content)
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SMALL CELLS SERVICESSERVICES FOR FASTER MORE SUCCESSFUL MARKET LAUNCHES
• Market Entry Strategy
• Pricing Strategy• Financial Impact• Sensitivity Analysis• Network
Deployment• Risk Identification
• BSS integration for self-care, billings, and customer support
• OSS integration for simplified provisioning and troubleshooting
• RF planning and design services customized to meet enterprises’coverage and capacity needs
• Locates data traffic hotspots
• Calculates macro offload potential
• Performs economic modeling
• Makes recommendation
OPTIMAL HOTSPOT COVERAGE WITH
METRO CELL SERVICES
OPTIMIZED IN-BUILDING
COVERAGE WITH ENTERPRISE RF
SERVICE
IT INTEGRATION FOR SIMPLIFIED
SERVICE INTRODUCTION
DE-RISKED MARKET LAUNCH WITH
BUSINESS MODELING
Macro
Small CellMacro Only
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Small Cells
1
3
2
WE ARE NEARING THE PRACTICAL LIMITS OF INFORMATION THEORY
• Small cells will become an absolute necessity
TODAY’S APPLICATION FOR COVERAGE AND CAPACITY IS JUST THE TIP OF THE ICEBERG
• Further development of the application ecosystem will yield additional value
ALL “SMALL CELLS” ARE NOT THE SAME• Omni and directional• Big and small• Full solutions versus point products• Diffusion of technology
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