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EDGE – Workshop The Powerful Upgrade of Your GSM Network for High-Speed Mobile Data Siemens AG , Munich
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  • EDGE WorkshopThe Powerful Upgrade of Your GSM Network for High-Speed Mobile Data

    Siemens AG , Munich

  • Siemens mobile - Networks, September 2003 Page 2 Siemens, 2003

    Agenda

    Welcome, introduction of participants

    Small introduction of Telenor

    EDGE at a Glance Basics, current market position

    Mobile Data Market and EDGE Business Drivers

    Operator Business Drivers The Need to ActSiemens EDGE Solution & USP Our Powerful Solution

    AMR presentation Today, future, with voice demo

    EDGE Live on Air Introduction

    EDGE applications Live demonstration

    Siemens Your Partner, Wrap up

  • Siemens mobile - Networks, September 2003 Page 3 Siemens, 2003

    Agenda

    Welcome, introduction of participants

    Small introduction of Telenor

    EDGE at a Glance Basics, current market position

    Mobile Data Market and EDGE Business Drivers

    Operator Business Drivers The Need to ActSiemens EDGE Solution & USP Our Powerful Solution

    AMR presentation Today, future, with voice demo

    EDGE Live on Air Introduction

    EDGE applications Live demonstration

    Siemens Your Partner, Wrap up

  • Siemens mobile - Networks, September 2003 Page 4 Siemens, 2003

    EDGE At A Glance

    EDGE = Enhanced Data rates for the GSM Evolution

    EDGE is a high speed mobile data bearer Built on top of the GSM / GPRS Network

    EDGE boosts additional revenue New multimedia applications Better multimedia applications

    EDGE increases network efficiency Increases network capacity Frees up time slots for voice traffic

    EDGE is easy to upgrade with low investment EDGE ready base stations already installed today Simple and fast upgrade

  • Siemens mobile - Networks, September 2003 Page 5 Siemens, 2003

    EDGE Creates Mobile Data Revenue by Offering High Speed Data For The End User

    Maximum Handset Application Throughput EDGE vs. GPRS*)

    40

    75

    220

    GPRS CS2 GPRS CS4 EDGE MCS9EDGE MCS9

    k

    b

    p

    s

    EDGE generates additional Revenue by Growth of Mobile Data Traffic New & better Multimedia Applications Churn Reduction by fast time to market

    *)Device data speed 4+1 MS; good radio conditions assumed

  • Siemens mobile - Networks, September 2003 Page 6 Siemens, 2003

    EDGE is 2.5 to 3 Times More Efficient than GPRS

    Use of timeslots in GSM vs. EDGE transceiver

    Voice Voice Voice Voice Voice GPRS GPRS GPRS

    Voice Voice Voice Voice Voice FreeTSFreeTS EGPRS

    Standard GSM Transceiver

    EDGE Transceiver

    EDGE Value Creation: Increase network capacity Reduce radio timeslots needed Gain additional radio time slots for voice

  • Siemens mobile - Networks, September 2003 Page 7 Siemens, 2003

    EDGE is Not An Additional Network Technology Like UMTS, CDMA 2000 etc.

    Contrary to typical misunderstandings..

    EDGE is easy to implement: No new license No new frequencies No new network components No new radio planning No new sites No new subscriber processes No new supplier nomination

    You only need

  • Siemens mobile - Networks, September 2003 Page 8 Siemens, 2003

    Many Operators have EDGE Ready Base Stations Today Implement EDGE by Replacing CU and SW Upgrade

    EDGECarrier Unit

    Insert

    SoftwareUpgrade

    GSM / GPRS BTS(Siemens BTS+)

    Siemens GSM Network Upgrade for EDGE

  • Siemens mobile - Networks, September 2003 Page 9 Siemens, 2003

    Siemens has already eight EDGE Contracts All over the Globe!

    Siemens was the first vendor who has shown live EDGE calls worldwide with live data rates up to 400kbps

    Status: August 25, 2003

    Colombia Mvil (COL)

    TIM (Italy)

    Cingular (USA)

    Digi (Malaysia)

    Telecom Americas (BRA)

    2 Contracts in Europe / MEA

    Confidential Status

    TIM (Brasil)

  • Siemens mobile - Networks, September 2003 Page 10 Siemens, 2003

    EDGE Worldwide Uptake as of July, 2003

    S

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    .

    2

    0

    0

    3

    )

    EDGE

    EDGE EDGE committed

    EDGE considered EDGE

    EDGE

    North America Rogers Wireless (CAN)Microcell (CAN) AWS (US) Cingular Wireless (US) T-Mobile USA (US) Cellular One (US) Dobson ( US)

    Latin AmericaTelcom Personal (Arg.)Telecom Americas (Brazil)Telemar Oi (Brazil)BTC Mobility (Bermudas)Comcel (Columbia)Occel (Columbia)Colombia Mvil (Columbia)Conecel (Ecuador)Telcel (Mexico)

    Western EuropeTIM (Italy)*)

    mmO2**) Orange**)

    Middle EastBatelco (Bahrain)Etisalat (VAE)

    Eastern EuropePannon (Hungary)***)

    APACPeoples Telephone (Hong Kong)Hong Kong CSLDTAC (Thailand)DiGi (Malaysia)

    Telstra (Australia)

    Source: Siemens ICN N EDGE Volume Push Project, 24.6.03

    EDGE

    EDGEEDGE

    EDGE

    EDGE

    EDGE

    *) Refer to Mobile Communications; Issue 350; March 18th 2003**) Refer to BWCS; Feb. 20th 2003***) Press-release Heise Online; 14.5.03

    Actual Status of public EDGE Commitments / Plans in the World

  • Siemens mobile - Networks, September 2003 Page 11 Siemens, 2003

    Agenda

    Welcome, introduction of participants

    Small introduction of Telenor

    EDGE at a Glance Basics, current market position

    Mobile Data Market and EDGE Business Drivers

    Operator Business Drivers The Need to ActSiemens EDGE Solution & USP Our Powerful Solution

    AMR presentation Today, future, with voice demo

    EDGE Live on Air Introduction

    EDGE applications Live demonstration

    Siemens Your Partner, Wrap up

  • Siemens mobile - Networks, September 2003 Page 12 Siemens, 2003

    Demand for Mobile Data Capacity - The Take-off Is Happening!

    Live Measurement of a W-European Incumbent Operator GPRS Downlink Data Volume By Day 2002/3

    1 Jan 031 Jan 2002

    X 28 !

    Mobile Data Market The Demand

    Traffic Volume Growth: Year 2002: increase by factor 11 Year 2003, Jan-Mid March: increase by factor 2,6 Average monthly growth for the past 6 months: 30 %

  • Siemens mobile - Networks, September 2003 Page 13 Siemens, 2003

    Example Multi Media Messaging: Increase of Messages Sent by 2 From Dec 2002 To Jan 2003

    Example Germany: MMS Traffic from Dec2002 to Jan 2003 Mobile Data Market The Demand

    Multimedia Messages

    #

    i

    n

    m

    i

    o

    . x2

    1 1 121

    2

    Oct 02' Nov 02' Dec 02' Jan 03'

    Launch of MMS was Oct 2002 MMS in Oct/Nov/Dec 2002 was 3 mio. 10.000 users with smart phone end of 2002 Duplication in January 2003 First significant sales of smart phones in Christmas business

    Source: Focus 2/8/2003

  • Siemens mobile - Networks, September 2003 Page 14 Siemens, 2003

    End-User Application Evolution

    Messaging Rich Call ServicesContent to Person

    E-MailMore than 160characters,with attachments

    SMSBasic text

    messaging

    Video-conferencing

    Video-telephony

    Audio-StreamingInstant connectivity, color screen

    Video-Streaming

    WAPRing-tones, logos, simple graphics

    Audio-DownloadApplications,games, MIDI sounds

    Video-DownloadVideo clips, movie-trailers

    Multimedia MessagingSending picturesand video

    Internet AccessSurfing withISDN+ quality

    Voice & data multi tasking

  • Siemens mobile - Networks, September 2003 Page 15 Siemens, 2003

    Exponential Increase Of Mobile Data Traffic- Caused by 3 Key Drivers

    Driver 1: Data Phones Sales**)(enhanced phones + smart phones + PDAs)Data Phone Sales World 2001: 243 mio.Data Phone Sales World 2005: 456 mio.Growth factor: 1,9

    Key mobile traffic drivers:

    *) Source:Siemens Marketing

    **) Source:Gartner Dataquest; January 2003; replacement quote 2001 ~26 %; 2005~28 %

    Driver 3: Usage*)(eMail + SMS + MMS)Messages / user / month B2003: 41Messages / user / month B2005: 77 Growth factor: 1,9Figures are for Western Europe

    Growing Need for High CapacityRadio Networks

    (e.g. Messaging)Volume / MMS B2003: 5 kBVolume / MMS B2005: 500 kBGrowth factor: 100Figures are for Western Europe

    Driver 2: Bandwidth Needs*)

  • Siemens mobile - Networks, September 2003 Page 16 Siemens, 2003

    In 2005 Almost 90% Of The Handsets Sold Will Be Mobile Data Capable Phones

    Source: Gartner Dataquest, January 2003*) Including: Enhanced Phones (GPRS); Smart Phones & PDAs

    Driver 1: Sales of Data Phones

    2001 2002 2003 2004 2005

    243

    456

    169

    59-

    100200300400500

    Basic Phones

    Data Phones *)

    Data Phone Sales Forecast (World) 2001-2005

    Mio. x1,9

    90%

    10%

  • Siemens mobile - Networks, September 2003 Page 17 Siemens, 2003

    Bandwidth Demand of Applications

    W-CDMA

    EDGE

    GPRSAudio download

    E-mail

    MultimediaMessaging Service

    Audio Streaming

    Video download

    Video Streaming

    Video conferencing

    75 kbit/s 220 kbit/s 2 Mbit/s

    Video Telephony

    40 kbit/s

    SMS

    Rich call services Content to Person Messaging

  • Siemens mobile - Networks, September 2003 Page 18 Siemens, 2003

    Extrapolating Past Growth Rate: GPRS CS1/2 (1 TS) Network Capacity Is Reached in Q2 2004

    Source: Siemens AG, Mnchen 2003*) assumption: all traffic through 1/3 of all cells during 10 hours per day

    Live data !

    10

    30

    50

    70

    k

    b

    p

    s

    /

    c

    e

    l

    l

    Mobile Data Volume Downlink

    2003 2004

    3

    60

    0,006 0,123

    Capacity Extrapolation of a Western European NW*)

    GPRS CS 1/2GPRS CS 3/4

    Typical throughput

    1 PDCH (TS):

    2002

    Estimated Factor/Yearx22 (extrapolated over

    2002)

    Mobile Data Market The Demand

    Typical Throughput per PDCHGPRS CS1/2 = 8kbps/cellGPRS CS3/4 = 13kbps/cell

    TS = timeslot

  • Siemens mobile - Networks, September 2003 Page 19 Siemens, 2003

    Operator Business Drivers The Need to Act

    End-User Benefits

    Operator Benefits

    Operator Strategies

  • Siemens mobile - Networks, September 2003 Page 20 Siemens, 2003

    End-User Quality of Service, e.g. Download Times

    480 kBytes

    GPRS CS 4 GPRS CS 4 -- EDGE Saving:

    EDGE Saving:35 sec (64%)35 sec (64%)

    Profile 2: High Resolution Image

    125 kBytes

    Profile 3: Video Clip Download

    GPRS CS 4 GPRS CS 4 -- EDGE Saving:

    EDGE Saving:9 sec (56%)9 sec (56%)

    24 sec

    10 15 20 25 sec

    GPRS CS 1/2 GPRS CS 3/4EDGE MCS9

    16 sec7 sec

    sec1 2 3 4 5 6 7 8

    10 20 30 40 50 60 70 80 sec

    GPRS CS 1/2 GPRS CS 3/4EDGE MCS9

    55 sec90 sec

    20 sec

    Application Data Size:

    20 kBytes

    Profile 1: Low Resolution Image GPRS CS 4 GPRS CS 4 -- EDGE Saving:

    EDGE Saving:1 sec (25%)1 sec (25%)

    GPRS CS 1/2 GPRS CS 3/4EDGE MCS9

    7 sec

    3 sec4 sec

    Estimated download time using 4+1 MS; 4/12 reuse & low load

  • Siemens mobile - Networks, September 2003 Page 21 Siemens, 2003

    End User Benefits, e.g. Affordability Of Handsets

    Affordability of Handsets (03)*)

    2003

    EDGE ~ GPRS EDGE

  • Siemens mobile - Networks, September 2003 Page 22 Siemens, 2003

    Operator Business Drivers The Need to Act

    End-User Benefits

    Operator Benefits

    Operator Strategies

  • Siemens mobile - Networks, September 2003 Page 23 Siemens, 2003

    EDGE Provides a 2,4-fold Number of Active Users Per Cell with a Triplication of User Throughput

    GPRS & EDGE Performance Comparison*)

    X 2,4 X 3

    GPRS EDGE

    36

    110

    GPRS EDGE

    16

    39

    Active Users Throughput Kbps

    EDGE Usage Model: 10% of users >164 kbps Mean user throughput 110 kbps 90% of users >52 kbps

    *) Assumptions: GPRS CS 1/2; EDGE MCS1-9; 4TS MS; 4/12 TRX; 8 PDCH; load 50%, HTTP model 3GPP 30.03)

  • Siemens mobile - Networks, September 2003 Page 24 Siemens, 2003

    Capacity Enhancements for Voice AND Data

    Typical Throughput per PDCH

    GPRS CS1/2 = 8kbps

    GPRS CS3/4 = 13kbps

    EGPRS = 30kbps

    Voice(FR)

    Voice(FR)

    Voice(FR)

    Voice(FR)

    GPRSCS 1/2

    GPRSCS 1/2

    GPRSCS 1/2

    Freetimeslot

    Voice(FR)

    Voice(FR)

    Voice(FR)

    Voice(FR)

    GPRSCS 3/4

    GPRSCS 3/4

    Freetimeslot

    Freetimeslot

    Voice(FR)

    Voice(FR)

    Voice(FR)

    Voice(FR)

    EGPRS

    Freetimeslot

    Freetimeslot

    Freetimeslot

    Freetimeslot

    VoiceVoiceVoiceVoice

    EGPRS

    EDGE AMR HR

    Capacity Enhancements

    Tim

    eslo

    ts

  • Siemens mobile - Networks, September 2003 Page 25 Siemens, 2003

    Quality of Service Is a Key Factor of Success for the Mobile Data Business

    If End User Quality of Service is not provided

    Expectations

    Disappointment

    Failure

    .. Mobile Data Business is endangered

  • Siemens mobile - Networks, September 2003 Page 26 Siemens, 2003

    Usability Requirements for Applications

    *) Estimated download time using 4+1 MS for GPRS & EDGE; 4/12 reuse & low load

    Poor Fair Excellent

    EDGE provides Usability and Quality of Service for the Consumer

    Source: Siemens mobile

    EDGEGPRS UMTS

    Internet AccessVideo Telephony

    Rich DownloadSmall Download

    (ring tones,logos etc.)

    EDGE !

    EDGE !UMTS !

    GPRS !

    40 75 110 300220kbps

    Video Clip (480kBytes*)

    GPRS CS 2EDGE MCS9 20 sec

    90 sec

  • Siemens mobile - Networks, September 2003 Page 27 Siemens, 2003

    EDGE Will Provide The Expected Handset Data Rates For Successful Mobile Data Applications

    Maximum*) User Data Throughput of Different Handsets (down-link, in Kbps)

    400

    75 120175

    380

    EDGE 1st EDGE 2nd EDGE 3rd

    2+1 MSAvailablefor US &

    World

    3+1 MSAnnouncedFor H203

    4+1 MSAnnouncedFor H104

    EDGE300

    200

    220100

    400

    GPRS CS1/2 GPRS CS3/4 WCDMA

    4+1 MSAvailable

    4+1 MSAvailable

    384 kbps DL,64 kbps ULAvailable

    *) under ideal radio conditions

  • Siemens mobile - Networks, September 2003 Page 28 Siemens, 2003

    EDGY - First Siemens EDGE TerminalHighlights

    Elegant clamshell phone Extraordinary, high value design

    EDGE (EGPRS) MS Class 10 GPRS Class 10 (4Rx, 2Tx) 850/900/1800/1900 quad-band Bluetooth PIM Integrated SVGA camera

    (800x600) Camcorder functionality 132x176 pixels, 64k TFT colour

    display

    Push to talk Social noises Instant messaging Photo messaging/album/ editor Car Kit Bluetooth Car Kit Easy Premium Headset PTT Action BT Stereo Headset Classic Bluetooth Headset

    Design

    Key Features

    Camera & Display

    Applications

    Accessory Devices

  • Siemens mobile - Networks, September 2003 Page 29 Siemens, 2003

    Operator Business Drivers The Need to Act

    End-User Benefits

    Operator Benefits

    Operator Strategies

  • Siemens mobile - Networks, September 2003 Page 30 Siemens, 2003

    3 Operator Business Scenarios for EDGE

    EDGE Scenario Operator Licenses Strategy

    GSM / GPRS onlyLaunch high speed data services; be competitive against other operators

    1. EDGE Only

    Offer full service portfolio; avoid churn; create synergies 2G/3G

    2. UMTS & EDGEParallel GSM / GPRS & UMTS

    Save CAPEX in 2G Greenfield roll out situation or completion of coverage over the country

    3. GSM Only Not relevant

    Depending on the regional circumstances (3G license available or not)

  • Siemens mobile - Networks, September 2003 Page 31 Siemens, 2003

    The 1st Scenario Is Suited for Markets with High Mobile Data Potential And Operators w/o UMTS License

    EDGE onlyScenario Description EDGE only

    Operator Situation

    Deploying GSM/GPRS network Not owning an UMTS license Data market with high potential CDMA 2000 competitors

    Strategic Goals

    Business Goals

    Offer high speed services Be innovator Increase market share Develop existing subscriber base

    Additional data revenue Relatively low investment for high speed mobile data

    REVENUE

    COST

    PROFIT

    EDGE

    Business Case

  • Siemens mobile - Networks, September 2003 Page 32 Siemens, 2003

    Roll out Scenario Proposes An Equal User Throughput Over the Whole Country

    EDGE onlyEDGE is rolled out in the whole GSM/GPRS Network

    Rural Sub-urban Urban RuralSub-urban

    GSM/GPRS Network

    EDGE Upgrade (100% coverage)

    30 kbps 30 kbps 30 kbps 30 kbps 30 kbps*)

    Full EDGE coverage Same user throughput in all regions

    *)Note: typical throughput per time slot

  • Siemens mobile - Networks, September 2003 Page 33 Siemens, 2003

    EDGE only End User Segmentation Marketing (At EDGE Launch Date)

    1 Premium Budget - Users Early adopters, status seekers Post paid users High End EDGE handsets High speed data applications

    EDGE

    EDGE only

    2 Medium Budget Users Cool followers, balanced enjoyers Prepaid/post paid users Medium level handsets Using mobile data applications sometimes

    GPRS

    3 Low Budget - Users Social nesters, family oriented Prepaid users Low end handsets Mainly SMS oriented

    GSM

  • Siemens mobile - Networks, September 2003 Page 34 Siemens, 2003

    EDGE only Operator Business Case

    EDGE onlyCumulated EDGE Case Increments

    NWUpgrade

    O

    P

    E

    X

    C

    A

    P

    E

    X

    SACs*)

    EDGEData

    Revenue

    Revenue Cost Profit New Data service revenue Moderate SACs*) because handset price Depending on % of EDGE ready equipment fast return on

    investment*) SAC = Subscriber Acquisition Cost

  • Siemens mobile - Networks, September 2003 Page 35 Siemens, 2003

    The Model Is Suited for Markets with High Data Volume and 3G Roll Out In Parallel

    Scenario Description UMTS & EDGE Parallel UMTS & EDGE Parallel

    Owning an UMTS license License coverage requirements Insecure uptake of UMTS Relatively high GSM market share

    Strategic Goals

    Business Goals

    Offer full service portfolio Reduce churn (defensive strategy) Create synergies between 2G/3G Prepare UMTS business (migration)

    Optimize mobile data revenueOptimize UMTS roll out CAPEXShort pay back period for investmentsReduce SACs

    Business Case

    Operator Situation

    REVENUE

    COST

    PROFIT

    EDGE UMTS

  • Siemens mobile - Networks, September 2003 Page 36 Siemens, 2003

    End User Segmentation (At Launch Date)

    1 Premium Budget - Users Early adopters, status seekers Post paid users Premium priced handsets Highest speed data / video telephony

    UMTS UMTS & EDGE

    Parallel

    2 Medium Budget Users Cool followers, balanced enjoyers Prepaid/post paid users Medium level handsets Using rich mobile data applications

    EDGE

    3 Low Budget - Users Social nesters, family oriented Prepaid users Low end handsets Mainly voice + SMS oriented

    GSM/GPRS

  • Siemens mobile - Networks, September 2003 Page 37 Siemens, 2003

    Operators Maximise Mobile Data Business: Parallel Roll Out Of EDGE & UMTS

    usingPremium budget Users High price UMTS Handsets Premium services Highest ARPU

    GPRSGPRS

    EDGE UpgradeGPRS GPRS

    UMTS Overlay NW

    Rural RuralUrban

    UMTS

    usingMid budget Users Medium / low price handsets Medium / low end services Medium ARPU

    GSM / GPRS Network

    EDGE

    Business Case Levers : Additional revenue by large number of mid-budget users (EDGE) Churn reduction by offering a complete service portfolio Prepare mobile data mass market for UMTS

  • Siemens mobile - Networks, September 2003 Page 38 Siemens, 2003

    The Business Case Shows An Improved EBITDA-Margin Compared to UMTS/GPRS Case

    Revenue Cost Profit

    Comparison UMTS/GPRS vs. UMTS/EDGE/GPRS Case with equal coverage

    NW investment

    *) SAC = Subscriber Acquisition Cost

    UMTS/GPRS

    UMTS/EDGE/GPRS

    O

    P

    E

    X

    C

    A

    P

    E

    X

    UMTS & EDGE Parallel

    O

    P

    E

    X

    C

    A

    P

    E

    X

    Flexible EDGE roll out

    Mixed SACs*)

    Mixed calculation of SACs per subscriber (UMTS+EDGE) Flexible EDGE & UMTS roll out (aligned EDGE/UMTS investments)

    EBITDA

    Improved EBITDA (higher return with EDGE) Positive cash flow from EDGE investment after 2-3 years

    Benefits of UMTS/EDGE/GPRS Case: 3 Revenue leverage effects: larger market, rural usage, lower churn

    Larger addressable market

    Data Users in rural areas (YE 2004)

    Churn defence byservice differentiation

  • Siemens mobile - Networks, September 2003 Page 39 Siemens, 2003

    Agenda

    Welcome, introduction of participants

    Small introduction of Telenor

    EDGE at a Glance Basics, current market position

    Mobile Data Market and EDGE Business Drivers

    Operator Business Drivers The Need to ActSiemens EDGE Solution & USP Our Powerful Solution

    AMR presentation Today, future, with voice demo

    EDGE Live on Air Introduction

    EDGE applications Live demonstration

    Siemens Your Partner, Wrap up

  • Siemens mobile - Networks, September 2003 Page 40 Siemens, 2003

    A short EDGE description

    EDGE = Enhanced Data rates for the GSM Evolution

    EDGE introduces new Modulation and Coding Schemes (MCS1-9)

    The new modulation is called 8-PSK

    Main application for EDGE will be EGPRS

    EDGE is fully compatible to GSM / GPRS

  • Siemens mobile - Networks, September 2003 Page 41 Siemens, 2003

    EGPRS provides threefold data rates compared to GPRS

    T

    h

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    Radio link quality is rewarded with EGPRS data boost Average EGPRS throughput 30kbps per timeslot (C/I=18dB),

    maximum throughput is 60kbps per timeslot

  • Siemens mobile - Networks, September 2003 Page 42 Siemens, 2003

    More and faster coding schemes

    T

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    EDGE offers 9 Coding Schemes instead of only 4 in GPRS Much faster link adaptation and retransmission with EDGE MCS 9-5 utilize 8-PSK, MCS4-1 use GMSK

  • Siemens mobile - Networks, September 2003 Page 43 Siemens, 2003

    EGPRS standardized data rates, TS combining

    MCS 1TS 2TS 3TS 4TS 5TS 6TS 7TS 8TS9 59,2 118,4 177,6 236,8 296,0 355,2 414,4 473,68 54,4 108,8 163,2 217,6 272,0 326,4 380,8 435,27 44,8 89,6 134,4 179,2 224,0 268,8 313,6 358,46 29,6 59,2 88,8 118,4 148,0 177,6 207,2 236,85 22,4 44,8 67,2 89,6 112,0 134,4 156,8 179,24 17,6 35,2 52,8 70,4 88,0 105,6 123,2 140,83 14,8 29,6 44,4 59,2 74,0 88,8 103,6 118,42 11,2 22,4 33,6 44,8 56,0 67,2 78,4 89,61 8,8 17,6 26,4 35,2 44,0 52,8 61,6 70,4

    = comparable to GPRS with 1-4 time slots= above GPRS with 4 time slots= above GPRS with 8 time slots= above 3G data rates

    realistic datarates for 2003/04

    8PSK

    GMSK

    TS = timeslot

  • Siemens mobile - Networks, September 2003 Page 44 Siemens, 2003

    Introduction of EDGE

    Ok, I am interested in EDGE. But what about...

    ... radio planning? ... cell radius? ... compatibility to GPRS? ... footprint? ... capacity in my transport network?

  • Siemens mobile - Networks, September 2003 Page 45 Siemens, 2003

    Prerequisites for Siemens EDGE deployment

    MSC / HLR

    SGSN / GGSNBTS BSC

    ECU & SW

    Dyn. Abis(SW)

    HCBSC/72

    GR3.1 (SW)

  • Siemens mobile - Networks, September 2003 Page 46 Siemens, 2003

    Siemens EDGE guarantee the coverage -Cell size is same as existing GSM cell size!

    Siemens EDGE EDGE CU in 8PSK 8PSK transmit power similar to standard GSM CU Siemens EDGE cell size same as existing GSM cells No additional BTS sites for EDGE required Best in class data rates even at the cell border

    EDGEGSM

    GSM EDGE

    EDGEGSM

    EDGE CU in 8PSKGSM CU

  • Siemens mobile - Networks, September 2003 Page 47 Siemens, 2003

    Outstanding Siemens EDGE Solution Lowest Deployment Cost For Operators

    Siemens EDGE TRX**)

    EDGE cell = GSM cell !

    EDGEEDGE

    GSM EDGE

    GSM

    Save investments & reduces operational cost with Siemens No radio re-planning, no additional sites necessary No additional components like power amplifiers or boosters necessary Optimise space in the BTS rack with Siemens TRX (config. 24/24/24 possible*) !)

    Reason: Siemens ECU has highest Output power (68W in GMSK mode)*) with FlexCU in combination with SW release BR 8.0 **) CU = carrier unit

    Other vendor TRX

    EDGE cell < GSM cell !

    EDGEGSM

    GSM

    EDGE

    EDGEOperator needs: Additional booster ? TRX combining ? Additional sites ? Radio Re-planning ?

  • Siemens mobile - Networks, September 2003 Page 48 Siemens, 2003

    EDGE from Siemens We offer a complete GERAN product family with Mainline BTS+ BS40, BS41, BS240, BS241, BS240XS, BS240XL, eMicro II Common Software Optimized spare part pool Comprehensive feature set Mixed mode operation (GSM TRX / EDGE TRX)

    Ultimate performance with latest features Multi band: GSM 850 / 900 / 1800 / 1900 EDGE, GPRS, HSCSD, AMR EDGE on demand by SW download, BTS can

    be delivered with GCU and/or ECU Dynamic Abis

    Highest EDGE power per footprint on the market 12 high power EDGE TRX in a single rack 72 high power EDGE TRX in a cell (24/24/24) Footprint only 60 x 45 cm

    eMicro II BS-240XS BS-240/241 BS-240XL

    ECU

  • Siemens mobile - Networks, September 2003 Page 49 Siemens, 2003

    Siemens ECU the most powerful TRX on the market

    Highest RF output power GMSK: 68W 8PSK: 43W

    No external booster required! Compatible to Standard TRX (GCU) Available in all frequency bands 850 / 900 / 1800 / 1900MHz

    Best in class architecture Latest DSP/ TI ASICs Large memory banks Fully prepared for future services/protocols

    - Incremental redundancy- Interference cancellation- VoIP- EDGE AMR

    EDGE TRX

  • Siemens mobile - Networks, September 2003 Page 50 Siemens, 2003

    Carrier Unit types and their key parameters

    22111111Number of TRX

    220 W

    -114,5 dBm

    45,3 dBm(34 W)

    +48,3 dBm(68 W)

    GSM1800

    BR6.02

    220 W

    -114,3 dBm

    46,3 dBm(43 W)

    +48,3 dBm(68 W)

    GSM900

    ECU

    +47 dBm(50 W)

    +47 dBm(50 W)

    +47,3 dBm(54 W)

    +47,3 dBm(54 W)

    +45,7 dBm(37 W)

    +47,3 dBm(54 W)

    Output Power/GMSK

    SW Support by

    Typ. Power Consumption

    Typ. RX Sensitivity(Speech, Div., TU50FH)

    Output Power/8-PSK

    Frequencyband

    BR5.5

    150 W

    -114,0 dBm

    Mode notsupported

    GSM900

    CU

    BR 8.0 BR5.5 / load #28 BR5.5 / load #78

    ~400 W~400 W220 W220 W140 W

    -114,5 dBm-114,3 dBm-114,5 dBm-114,3 dBm-114,8 dBm

    44 dBm(25 W)

    44 dBm(25 W)

    Mode notsupported

    Mode notsupported

    Mode notsupported

    GSM1800GSM900GSM1800GSM900GSM1800

    FlexCUGCUNote: Typical values shown (minimum guaranteed values are slightly lower)

  • Siemens mobile - Networks, September 2003 Page 51 Siemens, 2003

    Siemens EDGE Key Features Dynamic AbisResource Allocation - IP-grade performance on PCM!

    Dynamic assignment of radio timeslots to transport network time slots (PCM) Dynamic Abis is introduced in Radio infrastructure simply by SW download! Mandatory when running EDGE Optional when using GPRS evolution towards packet based transport (ATM or IP)

    Gives up to 71% additional transport capacity on E1/T1 Siemens implementation offers 30% more data throughput than other vendors

    dynamic Abis for comparable scenarios No time slot assignment restrictions works for CS and PO

    Node B

    GE-BTS

    All-IP RANdistributed

    architectureBTS BSC

    AbisBSC

    DynamicAbis

    BTS BSCIP transport

    BTS

  • Siemens mobile - Networks, September 2003 Page 52 Siemens, 2003

    Siemens BR 7.0 EGPRS Key Features Multiplexing of GPRS and EGPRS on the same TS

    Time slots

    Minimum CAPEX and OPEX No additional O&M as you grow:

    Flexible and modular time slot assignment

    Carrier Unit GSM

    Carrier Unit EDGE

    GPRS channel

    GSM/CSD channel

    GSM/CSD channel

    GPRS/EGPRS channel

    0 1 2 3 4 5 6 7

    CSD Circuit Switched Data

    EDGE CU

  • Siemens mobile - Networks, September 2003 Page 53 Siemens, 2003

    Evolution of GSM / GPRS / EDGE continues

    Enhancements for voice services, e.g.

    AMR over GMSK Echo Canceling/Noise

    suppression Seamless UMTS and GSM

    interworking Enhancements for data

    services, e.g. EDGE Streaming, conversational

    bearer services Cell reselection for packet

    services Seamless UMTS and GSM

    interworking

    Capacity enhancements and solutions to minimize TCO, e.g. AMR over 8-PSK Interference cancellation Smart antennas Network synchronization IP based transmission

    Platform enhancements Double TRX with FlexCU 24 TRX per BTS cabinet eMicro II HighCapacity BSC Footprint optimization

    TCO:total cost of ownership

  • Siemens mobile - Networks, September 2003 Page 54 Siemens, 2003

    Cingular View On EDGE

    Expects to pay about 3 billion USD in total for upgrading the TDMA network to GSM/GPRS/EDGE

    Expects the activation of EDGE to cost a maximum of 10-15 percent in addition to the overall upgrade cost to GSM/GPRS i.e. 300-450 million USD 22 mio subscriber => 13-20 USD per subscriber

    "EDGE is more evolutionary than revolutionary change from GSM.

    The cost of upgrading an existing GSM network to EDGE relative to the capacity increase is ridiculously low

  • Siemens mobile - Networks, September 2003 Page 55 Siemens, 2003

    Siemens is the first of the 3 vendors to finish the field trial phase by mid of July (current status as of 7/03)

    Currently 3.000 EDGE capable Siemens BTS installed More than 20.000 EDGE carrier units shipped so far

    Lab Tests: BR7.0 tests in the Cingular lab in Pleasanton Field Trial: BR7.0 (EDGE related features) trial in St. Louis

    to be finished by mid July Live First Office Application: use of full BR7.0 feature set

    in Wisconsin area in August and September 2003 EDGE Commercial launch: After successful FOA (planned

    for 1. Oct. 2003) All Siemens markets will be launched with EDGE for the

    Christmas Holiday Season in December.

  • Siemens mobile - Networks, September 2003 Page 56 Siemens, 2003

    Conclusion

    EGPRS provides threefold data rates compared to GPRS Siemens EDGE rollout possible today Siemens EDGE cell size is same as existing GSM cell size Real life scenario shows broad MCS9 Coverage Siemens ECU the most powerful TRX on the market with the

    highest EDGE power per footprint EDGE fully supported by Siemens Mainline BTS+ Proven Siemens experience in swap projects

  • Siemens mobile - Networks, September 2003 Page 57 Siemens, 2003

    Agenda

    Welcome, introduction of participants

    Small introduction of Telenor

    EDGE at a Glance Basics, current market position

    Mobile Data Market and Operator Business Drivers

    Operator Business Drivers The Need to ActSiemens EDGE Solution & USP Our Powerful Solution

    AMR presentation Today, future, with voice demo

    EDGE Live on Air Introduction

    EDGE applications Live demonstration

    Siemens Your Partner, Wrap up

  • Siemens mobile - Networks, September 2003 Page 58 Siemens, 2003

    EDGE Live on Air Introduction

    SIEMENS EDGE Live on AirMunich Field Deployment

    GPRS CS3/4 and EGPRS

    The TeamDr. Carsten Ball, Dr. Kolio Ivanov

    Systems Engineering: GERAN Radio & Simulations

    Peter Stckl, Lothar BuglSystem Test: GPRS & EDGE

  • Siemens mobile - Networks, September 2003 Page 59 Siemens, 2003

    Siemens EDGE Live on Air Location in Southern Munich, Zoom to SIEMENS Headquarters

    Excellent MCS-9 IndoorCoverage in the SIEMENS

    Customer InformationCenter (300m distance)

    SIEMENSEDGE on Air

    Site

  • Siemens mobile - Networks, September 2003 Page 60 Siemens, 2003

    SIEMENS EDGE "Live on Air" Installation

    EDGE on Air launched at SIEMENS Headquarters in Munich

    on Top of Building 1767

    Two Omni Antennas on the Siteenabling TX/RX Diversity !

    We keep it simple ! EDGE introduction in existing

    deployments requires: no new Sites no new Antennas no new Frequency Planning.

  • Siemens mobile - Networks, September 2003 Page 61 Siemens, 2003

    SIEMENS EDGE Live on Air Configuration

    GSN GR 3.1Gb

    GiInternet

    PSTN

    ISDN Bridge1 x 64kbps / 2 x 64kbps

    MSC

    BTS: SIEMENS BS240 with EDGE-CU / G-CU Mixture,2 omni-directional Antennas

    BSC with PPXU Cards

    A int.

    Dynamic Abis

    (BR7.0 BSS, GR3.1 Core):

    10 Mbps LAN

    Client: Laptop or PDA

    GPRS or EDGE MS, Alternative PCMCIA Card

    Internal Test-Lab Server

  • Siemens mobile - Networks, September 2003 Page 62 Siemens, 2003

    SIEMENS EDGE Live on Air Performance Expectation

    ON AIR measured / expected Application Throughput

    ~ 110kbps

    ~ 35kbps

    ~20kbps

    2TS MS

    ~ 220kbps~ 170kbpsEDGE

    ~ 75kbps~ 55kbpsGPRS CS3/4

    ~ 40kbps~ 30kbpsGPRS CS1/2

    4TS MS3TS MS

    Good Radio Conditions assumed.

  • Siemens mobile - Networks, September 2003 Page 63 Siemens, 2003

    SIEMENS EDGE Live on Air High Bit Rate e2e Applications which may be demonstrated

    File Transfer via FTP (DOS Shell)

    E-Mail

    HTTP Download and Web-Browsing

    Audio Streaming via Internet (Web-Radio)

    Video Download & Video Streaming

    via Internet or Lab-Server with Windows

    Media Player / RealPlayer (Web-TV)

    Solutions: SIEMENS Media Mall

    Netmeeting incl. Web-Cam

  • Siemens mobile - Networks, September 2003 Page 64 Siemens, 2003

    SIEMENS EDGE Live on Air Test: FTP Download with GPRS CS3/4 and EDGE

    EDGE 2+1 TS MS (2 DL Timeslots), Perceived Application Throughput with 12.2kByte/s = 98kbps

    @ 200kByte File 13.2kByte/s = 106kbps

    @ 500kByte File 13.4kByte/s = 108kbps

    @ 1000kByte FileSequence: 2 x FTP 200kByte and 1 x FTP 500kByte Downloads over TCP/IP

    FTP 1000kByte Download over TCP/IP

  • Siemens mobile - Networks, September 2003 Page 65 Siemens, 2003

    SIEMENS EDGE Live on Air Test: Mobile Internet Web Browsing

  • Siemens mobile - Networks, September 2003 Page 66 Siemens, 2003

    SIEMENS EDGE Live on Air Test: Mobile Internet Audio Streaming and Web Radio

  • Siemens mobile - Networks, September 2003 Page 67 Siemens, 2003

    SIEMENS EDGE Live on Air Test: Mobile Internet Video Streaming (Web TV)

  • Siemens mobile - Networks, September 2003 Page 68 Siemens, 2003

    SIEMENS EDGE Live on Air Test: Video Streaming and Video Download from Siemens Media Mall

    Huge Information Content:Location Dependent Services, Mobile Messaging, Packet Video, News, Sports, Finance and Lifestyle

  • Siemens mobile - Networks, September 2003 Page 69 Siemens, 2003

    Agenda

    Welcome, introduction of participants

    Small introduction of Telenor

    EDGE at a Glance Basics, current market position

    Mobile Data Market and Operator Business Drivers

    Operator Business Drivers The Need to ActSiemens Network Evolution & USP Our Powerful Solution

    AMR presentation Today, future, with voice demo

    EDGE Live on Air Introduction

    EDGE applications Live demonstration

    Siemens Your Partner, Wrap up

  • Siemens mobile - Networks, September 2003 Page 70 Siemens, 2003

    Siemens offers EDGE Partnering in various levels

    EDGE Demo EDGE Live on Air in Munich Lab Trial Field Trial

    Network simulations Business cases

    HW / SW partnering

    Soft partnering

  • Siemens mobile - Networks, September 2003 Page 71 Siemens, 2003

    Siemens is the only vendor who has shown live EDGE calls worldwide

    EDGE demo systems with live data rates up to 400kbps, e.g. full screen video

    Shown in Cannes, February 02 Singapore, September 02 Sao Paulo, December 02 Malaysia, January 03 Cannes, February 03 New Orleans, March 03 Moscow, May 2003 Jakarta, May 2003

  • Siemens mobile - Networks, September 2003 Page 72 Siemens, 2003

    EDGE "Live on Air" at Siemens headquarter, Munich

    EDGE "Live on Air" Demo offered for customers EDGE on Air Installation and Configuration (next slide) GPRS and EDGE MS available for Testing High Bit rate E2E-Services presented HTTP Download and Web-Browsing Audio Streaming via Internet (Web-Radio) Video Download & Video Streaming via Internet and/or Lab-

    Server with Windows Media Player / RealPlayer (Web-TV) Netmeeting including Web-Cam File Transfer via FTP

    Applications, Tests and Measurement Resultsavailable

    Optional Lab visit Comprehensive workshop

  • Siemens mobile - Networks, September 2003 Page 73 Siemens, 2003

    SIEMENS EDGE "Live on Air" Configuration

    GSN GR 3.1Gb

    GiInternet

    PSTN

    ISDN Bridge1 x 64kbps / 2 x 64kbps

    MSC

    BTS: SIEMENS BS240 with EDGE-CU / G-CU Mixture,2 omni-directional Antennas

    BSC with PPXU Cards

    A int.

    Dynamic Abis

    (BR7.0 BSS, GR3.1 Core):

    10 Mbps LAN

    Client: Laptop or PDA

    GPRS or EDGE MS, Alternative PCMCIA Card

    Internal Test-Lab Server

  • Siemens mobile - Networks, September 2003 Page 74 Siemens, 2003

    Siemens EDGE Lab Trial

    Lab Trials are offered starting from A09/03 Average duration: 1 week Dedicated EDGE show cases are executed by Siemens staff

    at customer site Trials are working stand alone, i.e. they are not connected to

    live networks EDGE trial consist of a standard configuration

    Configuration and show cases are pre-defined and should not bechanged.

    "Full blown" field trials can be offered upon request / case by case Configuration and show cases to be defined in mutual agreement.

  • Siemens mobile - Networks, September 2003 Page 75 Siemens, 2003

    Siemens EDGE Soft partnering

    Business Cases CAPEX OPEX Revenues

    Network simulations with Tornado / Gepard

  • Siemens mobile - Networks, September 2003 Page 76 Siemens, 2003

    More than an equipment supplier .Siemens supports across all levels of the value chain

    Siemens Reference Projects

    Levels of Responsibility

    Equipment /Solutions Provider

    Network Operation- O&M

    Turnkey Supplier- Site acquisition- Site preparation- Network Planning

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    EDGE WorkshopThe Powerful Upgrade of Your GSM Network for High-Speed Mobile DataEDGE At A GlanceEDGE Creates Mobile Data Revenue by Offering High Speed Data For The End UserEDGE is 2.5 to 3 Times More Efficient than GPRSEDGE is Not An Additional Network Technology Like UMTS, CDMA 2000 etc.Many Operators have EDGE Ready Base Stations Today Implement EDGE by Replacing CU and SW UpgradeSiemens has already eight EDGE Contracts All over the Globe!EDGE Worldwide Uptake as of July, 2003Demand for Mobile Data Capacity - The Take-off Is Happening!Example Multi Media Messaging: Increase of Messages Sent by 2 From Dec 2002 To Jan 2003End-User Application EvolutionExponential Increase Of Mobile Data Traffic - Caused by 3 Key DriversIn 2005 Almost 90% Of The Handsets Sold Will Be Mobile Data Capable PhonesExtrapolating Past Growth Rate: GPRS CS1/2 (1 TS) Network Capacity Is Reached in Q2 2004End-User Quality of Service, e.g. Download TimesEnd User Benefits, e.g. Affordability Of HandsetsEDGE Provides a 2,4-fold Number of Active Users Per Cell with a Triplication of User ThroughputCapacity Enhancements for Voice AND DataQuality of Service Is a Key Factor of Success for the Mobile Data BusinessUsability Requirements for ApplicationsEDGE Will Provide The Expected Handset Data Rates For Successful Mobile Data ApplicationsEDGY - First Siemens EDGE TerminalHighlights3 Operator Business Scenarios for EDGEThe 1st Scenario Is Suited for Markets with High Mobile Data Potential And Operators w/o UMTS LicenseRoll out Scenario Proposes An Equal User Throughput Over the Whole CountryEDGE only End User Segmentation Marketing (At EDGE Launch Date)EDGE only Operator Business CaseThe Model Is Suited for Markets with High Data Volume and 3G Roll Out In ParallelEnd User Segmentation (At Launch Date)Operators Maximise Mobile Data Business: Parallel Roll Out Of EDGE & UMTSThe Business Case Shows An Improved EBITDA-Margin Compared to UMTS/GPRS CaseA short EDGE descriptionEGPRS provides threefold data rates compared to GPRSMore and faster coding schemesEGPRS standardized data rates, TS combiningIntroduction of EDGEPrerequisites for Siemens EDGE deploymentEDGE from Siemens We offer a complete GERAN product family with Mainline BTS+Siemens ECU the most powerful TRX on the marketCarrier Unit types and their key parametersSiemens EDGE Key Features Dynamic Abis Resource Allocation - IP-grade performance on PCM!Evolution of GSM / GPRS / EDGE continuesCingular View On EDGESiemens is the first of the 3 vendors to finish the field trial phase by mid of July (current status as of 7/03)ConclusionEDGE Live on Air IntroductionSiemens EDGE Live on Air Location in Southern Munich, Zoom to SIEMENS HeadquartersSIEMENS EDGE "Live on Air" InstallationSIEMENS EDGE Live on Air ConfigurationSIEMENS EDGE Live on Air Performance ExpectationSIEMENS EDGE Live on Air High Bit Rate e2e Applications which may be demonstratedSIEMENS EDGE Live on Air Test: FTP Download with GPRS CS3/4 and EDGESIEMENS EDGE Live on Air Test: Mobile Internet Web BrowsingSIEMENS EDGE Live on Air Test: Mobile Internet Audio Streaming and Web RadioSIEMENS EDGE Live on Air Test: Mobile Internet Video Streaming (Web TV)SIEMENS EDGE Live on Air Test: Video Streaming and Video Download from Siemens Media MallSiemens offers EDGE Partnering in various levelsSiemens is the only vendor who has shown live EDGE calls worldwideEDGE "Live on Air" at Siemens headquarter, MunichSIEMENS EDGE "Live on Air" ConfigurationSiemens EDGE Lab TrialSiemens EDGE Soft partneringMore than an equipment supplier .Siemens supports across all levels of the value chain