UMTS Deployment, Version 3.1.3 1 DG/Slide of 24 UMTS Deployment UMTS Deployment Issues and Economics Issues and Economics Overvieweing key options and economic aspects of UMTS deployment Davide Grillo UMTS Task Force ITU Sub-Regional Seminar on IMT-2000 Warsaw, 2-4 October 2001
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UMTS Deployment, Version 3.1.3 1DG/Slide of 24
UMTS Deployment UMTS Deployment Issues and EconomicsIssues and Economics
Overvieweing key options and economic aspectsof UMTS deployment
Davide GrilloUMTS Task Force
ITU Sub-Regional Seminar on IMT-2000Warsaw, 2-4 October 2001
UMTS Deployment, Version 3.1.3 2DG/Slide of 24
UMTS DeploymentThe operator’s decisions
! “Entry level” network
! Timing of functional enhancements
! Timing of capacity increases
! Tariff policy and its evolution
UMTS Deployment, Version 3.1.3 3DG/Slide of 24
UMTS Deployment
Rel-5" IP real time application support
Rel-4" More reliable packet transfer
in the core network" Evolution from GPRS
and « best effort »
Rel-99" Full set of WCDMA technology
" Evolution of the core networkfrom GSM to support the new RAN
Features of UMTS releases (1)
UMTS Deployment, Version 3.1.3 4DG/Slide of 24
UMTS DeploymentFeatures of UMTS releases (2)
• Services as availablewith GSM
• Multimedia messaging
• Authentication algorithm• Transcoder-Free
Operation (TrFO)• Tandem Free aspects for
3G and between 2G and3G systems
• Development/Selectionof a Multi-Rate WidebandSpeech Codec (50Hz-
7kHz)for Wideband SpeechTelephony in multipleradio environments
• IP-based multimediaservices
• Virtual HomeEnvironment (VHE) andOpen Services
Architecture(OSA) evolution
• Location Services (LCS) in
Circuit Switched andPacket Switched domains
• Push Services• Enhancements to:
− Security− VHE− OSA− Global Text Telephony− Location Services− 3G radio access
Services & System AspectsRelease 1999 Release 4 Release 5
UMTS Deployment, Version 3.1.3 5DG/Slide of 24
UMTS DeploymentFeatures of UMTS releases (3)
• Completely new RadioAccess Network (UTRAN),built “from scratch”
• Different base technologycompared to GSM:Wideband CDMA insteadof TDMA
• New TDD mode (1,28 Mcps)for narrowband applications
• Intra-domain connection ofRAN Nodes to Multiple CoreNetwork Nodes
• High Speed DownlinkPacket Access
• FDD and TDD(both 3.84 Mcps)
• Adopted by ITU as partof the IMT 2000 family
• Radio interfaceimprovements, e.g.:
− UTRA repeater• Radio Access Network
improvements, e.g.:− Robust Header
Compression (first useof IETF RFC 3095)
• Evolution of UTRANtransport:support of IP and radiobearers for efficient IP-basedmultimedia services• Separation of resourcereservation and radio linkactivation benefits to highbit-rate users
3G Radio AccessRelease 1999 Release 4 Release 5
UMTS Deployment, Version 3.1.3 6DG/Slide of 24
UMTS DeploymentFeatures of UMTS releases (4)
• CAMEL Phase 2 and 3• Basic UMTS Security issues
• Enable Bearer IndependentCS Architecture
• Provisioning of IP-BasedMultimedia Services (SIP CallControl protocol)
Service & Home Environment PlaneMultimedia Session Control Plane
ApplicationServer
IM Domain
MGCF
CSCF T-SGW
MRF MGW
IuPS
MGCF: Media Gateway Control FunctionCSCF: Call State Control FunctionT-SGW: Transport-Signalling GatewayMRF: Multimedia Resource FunctionMGW: Media Gateway
UMTS Deployment, Version 3.1.3 9DG/Slide of 24
UMTS DeploymentUTRAN transport solutions
Hub Node
Hub Node
Hub Node
Hub Node
Node B
Node B
Node B
Node B
Node B
Node B
Node B
RNC
RNCBackhaul Network
UMTSAccess Network
UMTS Deployment, Version 3.1.3 10DG/Slide of 24
UMTS DeploymentRAN: Key options
! Physical media and the transport technique# Low capacity microwave (PDH)
# High capacity microwave or optical links (SDH STM-1/STM-4)
# ATM, LMDS, XDSL, leased lines
! Topologies# Tandem
# Ring
# Star
UMTS Deployment, Version 3.1.3 11DG/Slide of 24
UMTS DeploymentArchitecture for core network transport
MSC
ControlPlane
Region 1
UserPlane
RNC
RNC
RNC IuIur
GGSN GGSN
Gn
SGSN
UserPlane
ControlPlane
RNC
RNC IuIur
SGSN
Region 3
MSC
IP & ATM/SDH-WDM
GGSN
RNC
RNC
RNC
MSC
UserPlane
ControlPlane
IuIur
Gn
SGSN
Region 2
Iucs
Gn
Gn
UMTS Deployment, Version 3.1.3 12DG/Slide of 24
UMTS DeploymentCore Network: Key options
! Different types of UMTS terminals
! Multimedia services
! UMTS standards with respect to IP Multimedia aspects
SM: Service Mix SP: Service Penetration TE: Tariff Erosion
UMTS Deployment, Version 3.1.3 23DG/Slide of 24
UMTS DeploymentNPV: Alternative business plan
2000
4000
6000
8000
10000
12000
14000
16000
-6000
-4000
-2000
0
-8000
[MEu
ro]
[time]
Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10
Reference offering
Reference scenario
SM+ & SP+ & TE+
SM- & SP- & TE-
Alternative offering
Alternative scenario
UMTS Deployment, Version 3.1.3 24DG/Slide of 24
UMTS DeploymentConclusions
! Strategic, market and economic decisions play a fundamental role in planning investments for phased functional and capacity enhancements along the economic life of the network
! A balance has to be striven between actions decided in the early stages of the network deployment and actions which may be deferred
! Whatever deployment policy is chosen, a significant margin of flexibility for adjusting the deployment plan has to be factoredfrom the outset