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    1 Nokia Siemens Networks Customer Confidential

    Innovative GSM Software Solutions

    Gerhard Speckmayr

    Software ValueBusiness ProgramMBB Portfolio Management

    July, 2012

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    2 Nokia Siemens Networks

    Capacity demand is like a wave in modern networksNetwork utilization calls for fluidity

    Capacitydem

    andataagiventime

    Network Coverage

    Time

    Busyhour

    Liquid Radio GSM softwarenetwork resources fluid Capacity dynamically followin

    coming fromfollowing the e Double HSPA/ LTE data throu

    with same GSM services in re

    Capture more revenue while lOwnership

    Busy hour fluctuation

    Morning Aft

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    3 Nokia Siemens Networks Customer Confidential

    Liquid Radio GSM software suitefeatures in nut sh

    With Flexi Multiradio Base Station family

    Orthogonal Sub Channel

    Smart Resource Adaptation

    Precise Paging

    Compressed traffic and signaling resources, same

    capacity and network quality

    SignallingPaging to all cells

    DataMS multislot class

    VoiceHalf Rate

    OSC

    SRA

    PP

    Flexible MCPA

    Dynamic sharing reduc

    providing more power f

    GSM

    HSPA

    52W@GSM12,5W@carrier

    8W@HSPA8W@carrier

    Dynamic Frequency and Channel Allocation

    in spectrum limited cases

    Energy Efficient Coverage

    Minimized network interference, better quality at cell edge, indoors

    and in weak signal conditions, enables tighter frequency re-use

    Less timeslots

    Stati

    GSM resources optimized with Liquid Radio GSM software suite

    Fewer radio timeslots, frequencies and carriers needed for same GSM services

    More carriers, spectrum and RF power can be allocated for HSPA/LTE

    More carriers

    GSM

    HSPA

    More traffic

    DHR DHR

    DHR

    Latest cellpaging

    Single TSL

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    5 Nokia Siemens Networks Customer Confidential

    Financial benefits of Liquid Radio GSM SW SuiteNetwork impact included to financial benefits

    Voice, data and signaling capacityincreased and existing resources are freedup for refarming or for more GSM traffic

    Fewer sites and less equipment requito offer the same GS; capacity

    Number of TRX

    0

    2000

    4000

    6000

    8000

    10000

    12000

    14000

    2012 2013 2014

    No LiquidRadio

    With LiquidRadio

    31% less

    PS territory

    0

    5000

    10000

    15000

    20000

    25000

    30000

    2012 2013 2014

    No LiquidRadio

    With LiquidRadio

    TSL

    21% less

    GSM cell capacity

    0

    20

    40

    60

    80

    100

    120

    140

    160

    2012 201

    Erl

    90%

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    Software Solutions for Operators NeedsGSM Application Software PortfolioOverview

    Smartphone Traffic Signaling capacity

    Parallel voice & data Smart resource allocation

    M2M

    Operational Efficiency Energy saving fundamentals

    Advanced energy saving

    Data Throughput enhancements

    Efficiency enhancements

    PS Mobility enhancements QoS

    W In

    Capacity Spectral efficiency

    AMR solutions

    OSC solutions

    Re-framing

    TD

    Eth

    Loc

    Security Air interface security

    Transport security

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    Capacity

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    Software features enable easier,cheaper and environmentallysustainable capacity expansions

    OSC-HR and DFCA Features can

    improve both capacity and quality

    of existing network

    High quality voice capacity - make the difference

    ExistingBTS site

    Traditional

    Spectrum cap

    Reduce

    High quSW

    Reduced HighInterference

    Traffic

    increase

    Interference

    RX levels

    OSC-HR software feature Four voice calls in one timeslot

    AMR-HR voice codec

    DFCA software feature More voice capacity and higher data

    rates due improved interference

    Spectral efficiency due enabling use ofmore TRX / frequency band

    Traditional way to increase capacity is

    adding new TRXs and BTS sites,

    which is costly and creates

    challenges with network quality

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    BSS Capacity SolutionsVoice Capacity

    GSM Half Rate / AMR Capacity (AMR HR)

    OSC-DHROSC Half Rate with SAIC MS

    OSC-DFROSC Full Rate with SAIC MS

    AQPSK with VAMOS 2 handsets

    OSC support for VAMOS handsets

    OSC capability test for Handsets

    Spectral Efficiency

    Load Based AMR Packing

    Radio Link Timeout Parameters for AMR-HR

    Progressive AMR Power Control

    Robust AMR Signalling

    Single Antenna Interference Cancellation (SAI

    Space Time IRC (STIRC)

    Antenna Hopping (Intelligent) Frequency Hopping

    Dynamic Frequency and Channel Allocatio

    AMR HO Signaling Optimization

    AMR Unpacking Optimization

    SDCCH and PS Data Channels on DFCA TRX

    Merged P- & E-GSM900

    Precise Paging

    EGPRS DL Power Control DFCA minimizes radio network interference Same/More capacity with less frequencies Higher usage of AMR-HR and better MOS

    Orthogonal Subchannel (OSC)

    Dynamic Frequency Channel Allocation

    BTSs with LMU

    GPS

    BSCs withDFCA algorithm

    BSC-BSClink

    Legacymobiles

    AMR-HR OSC-HR

    2 users per TSL 4 users per TSL

    OSC0

    Half Rate voice codec Dual Half Rate voice codes

    Multiplexing/De-multiplexing

    OSC1

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    Nokia Siemens Networks innovationOSC - Orthogonal Sub Channel Half Rate

    Double AMR-HR capacity

    AMR-HR like MOS quality

    Increases voice capacity and reduced

    CS blocking via Software Supported by every 3GPP SAIC handset

    AMR HR OSC-DHR

    2 users per TSL 4 users per TSL

    OSC0

    Half Rate voice codec Dual Half Rate voice codes

    Multiplexing/De-multiplexing

    OSC1

    QPSK in DL

    MIMO in UL

    Q

    Tran

    MRec

    3GPP SAIC MS penetrationpredicted vs. measure

    0%

    20%40%

    60%

    80%

    100%

    2005 2006 2007 2008 2009 2010 2011 20

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    11 Nokia Siemens Networks Customer Confidential

    OSC-HR Field PerformanceAPAC Operator

    OSC-HR field performance is in line with our predictions

    Achievements

    Up to 27% increase in CS traffic

    Reduction of CS-blocking

    High gains supported by good RXdistribution and optimized param

    OSC-HR gains depend on

    SAIC MS penetration

    RXqual distribution

    Selected parameter set

    Removal of all possible bottlenecks (e.g.

    CSDAP capacity, SDCCH capacity)

    Load level

    OSC-HR traffic in different cell

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    12 Nokia Siemens Networks Customer Confidential

    OSC-HR Field Performance

    Quality KPIs improved or maintained

    Quality KPI improvements

    Massive reduction of TCH blocking a

    activation Improved Handover Success Rate

    TCH Drop Rate and other quality KP

    TCH Blocking % Handover Success Rate %

    TCH Drop Rate %

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    13 Nokia Siemens Networks Customer Confidential

    Smartphone Traffic & Data

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    14 Nokia Siemens Networks Customer Confidential

    Smarter GSM Networks - 3G data boom that spreads to your

    Unique quality

    of experience

    Signaling

    Up to five fold

    Up to four fold

    Data

    Simultaneous voice and data calls

    Smart Resource Adaptation(SRA)feature up to 5 folds smartdevice usersfor small packets

    Dual Transenables simand data ca

    Paging co-ordinaenables reception call also during da

    Extended CCCHup to four folds signaling chan

    Unique inefficiency

    Smarter GSM networks launch

    14 Nokia Siemens Networks 2011

    Precisereducesand Abi

    Multislot EDGE (EDA, HDA) andDownlink Dual Carrierimprove throughput and customerexperience

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    15 Nokia Siemens Networks Customer Confidential

    Concurrent Voice &

    Data - Incoming CS callduring PS session

    Subscriber not reachable,and

    CS call diverted to voicemail.

    Notification via SMS (only ifimplemented.)

    CCCH capacity exhausted

    Paging Co-ord

    No service

    (Network Busy)

    Signalingdue

    increased number of

    CS/PS calls

    Extended CCC

    Intelligent Sele

    Precise Pagin

    Dual Transfer MIncoming CS call acceptedbut PS call suspended

    Applications send small packets,and resources are allocatedaccording Terminal multislotcapability

    Traffic LoadBooming

    smart device applicationusage

    Few terminals can causeblocking of service to many

    Smart Resourc

    Instant QoS Si

    GSM Data Traffic Challenges and Solutions

    No CS Paging Coordination

    CS Paging coordinationimplemented

    Smart DSubscriber ImpactNetwork Impact

    EDGEApplications send large packets,resources allocated by Terminalmultislot capability

    Low throughput pertimeslot causes slowservice

    EGPRS capacity too small,causing lower throughputcapacity

    2nd EDGE TR

    AMR-HR and

    Extended Dyn

    High Multislot

    Downlink Dua

    Applications require higherspeed

    Challenge

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    16 Nokia Siemens Networks Customer Confidential

    Smart Phones Friendly GSM NetworkThroughput and Efficiency

    Enhanced Data Rates for GSM (E

    High Multislot Classes (HMC)

    Extended Dynamic Allocation (EDA

    Dual Transfer Mode (DTM)

    Smart Resource Adaptation (SR

    Instant QoS Signalling (IQS)

    Downlink Dual Carrier (DLDC)

    Orthogonal Subchannel HR (OS

    Improve Performance and PS Mob

    Gb over IP

    PCU2 Pooling

    Network Controlled Cell Reselectio

    Inter System NCCR (IS-NCCR)

    Network Assisted Cell Change (NA

    Paging coordination in BSC

    Extended CCCH

    Congestion

    Cell change

    NCCR

    Distributes mobiles among cells to avoidtraffic congestion, when neighboring cells

    have capacity

    1 user gets 5 TS

    Smart Resource Adaptation (SRA)

    Allocation of 1 TSL in DL based on size of data packet, instead ofallocation according MS capability

    Efficient, network controlled use of resources, with short datapackage sizee.g. instant messaging, smart phone apps

    5 users served

    Data volume

    Size of packet250B

    web

    Up to 5 TSL1 TSL

    Si li C it

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    17 Nokia Siemens Networks Customer Confidential

    Signaling CapacityAddressing high traffic loadVoice Calls, Smart Phones, SMS, M2M

    Adapt signaling capacity to the actual

    High capacity signaling links on A Interf

    SIGTRAN over A interface

    (Increased) Dynamic SDCCH Allocatio

    Intelligent Selective Paging

    Extended CCCH

    Precise Paging

    First paging only to the cell+neigbours of last MSlocation

    Paging load decreased by up to 70% Location Area/Routing Area downsizing can be

    avoided

    Precise Paging decreases signaling load

    eCCCH increases the usage of Smart Devices

    MSC

    BSCPaging

    Paging

    SGSN

    Abis/LAPD

    Highest gain with key use cases:Very high number of cells in LA/RAMS is stationary / high penetration of Smart DevicesSmart Devices with high number of transactions

    More radio time slots for CCCH to increase signaling capacity inlarger configurations and heavily loaded cells

    Improve paging success rate and shorten call establishmentsesp. in congested cells Up to 4 times more Smart Device users with extended CCCH

    M2M C ti it

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    18 Nokia Siemens Networks Customer Confidential

    M2M Connectivity

    Address M2M Signaling Load

    Intelligent Selective Paging

    Paging Coordination in BSC

    Extended CCCH (incl. RACH)

    Precise Paging

    Smart Metering creates demanding requirement on

    RACH depending on:

    reading periodicity household density

    Fleet Management creates demanding requirementson RACH, depending on:

    track freight/vehicle location velocity of vehicles typical reporting every 5-15 seconds

    M2M applications send simu

    RACH access bursts.

    M2M makes RACH the bottle

    Cope with Packet Data TCH bloc Priority Class based QoS

    Smart Resource Adaptation

    Enhanced Packet Scheduler

    Admission Control for EGPRS

    Data Volume

    Size of packet250B

    Web

    Up to 5 TSL1 TSL

    M2M

    Smart Resource Adaptation (SRA)

    Allocation of TS to Mobile according to actual size of data packet,instead of Terminal capability

    Efficient, network controlled use of PS resources, with short data

    package size!

    E h d CCCH Fi ld P f

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    19 Nokia Siemens Networks Customer Confidential

    Enhanced CCCHField PerformancePaging deletions almost 0 after activating eCCCH

    Second additio

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    20 Nokia Siemens Networks Customer Confidential

    IP Transport

    A IP

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    21 Nokia Siemens Networks Customer Confidential

    Transport costs savings due to

    lower cost IP transport

    Improved transport efficiency for the

    Transcoder in the MGW scenariothrough standardising TrFO for

    GSM/EDGE

    Better speech quality with A over IP

    Transcoder in MGW

    Simplified system configuration

    in Multipoint A scenarios

    A over IPImproved transport efficiency, simplified Multipoint A configuration, bette

    A over IP

    A over IP Transcoder in BSS

    A over IP Transcoder in MGW

    A over IP Enhancements

    Legacy Abis with for A over IP Transcoder in MGW

    CS Data support A over IP Transcoder in MGW

    P k t Abi TDM d Eth t

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    22 Nokia Siemens Networks Customer Confidential

    Packet Abis over TDM and EthernetImproved transport efficiency

    Bandwidth Optimization

    Improved transport efficiency by more

    than 50%

    Flexible Bandwidth assignment

    Efficient bandwidth allocation

    One resource pool for all traffic: Voice,

    Data, Signaling

    Evolution towards Packet Network

    Common packet transport for GSM,

    WCDMA and LTE

    Packet Abis over TDM

    Re-use of existing Transport Network

    Investment Protectiontransparent to Transport Network

    Packet Abis over Ethernet

    Usage of low cost packet backhaul

    Common transport for 2G and 3G / LTE

    Legacy Abis

    EDGEE

    vo

    Voice

    Voice

    Voice/OSC

    EDGE

    Packet Abis

    Ba

    ndwidth

    Voice/OSC

    EDGE

    Bandwi

    Mo

    Packet Abis for TDM Networks

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    23 Nokia Siemens Networks Customer Confidential

    Maximize Performance

    Local switching for Packet Abis Packet Abis over IP/TDM Aggre

    Packet Abis for inst. Base

    Packet Abis for TDM Networks

    Capacity and Efficiency

    Packet Abis over TDM

    Operability

    Abis Delay Measurement

    Legacy Abis

    EDG

    EPh2

    Voice

    Voice

    Voice/OSC

    EDGE

    Packet Abis

    Bandwidth

    Voice/OSC

    EDGEPh2

    Bandwidth saving

    > 50%

    Aggregation

    siteMLPPP

    Packet Abis

    E1/T1/FB

    IP

    Flexi BTS

    TDM

    BSC

    Eth

    BSC3i 1000/2000

    FlexiBSC or mcBSC

    IPPacket Abis

    EthernetBSC site

    Packet Abis for IP/Ethernet Networks

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    24 Nokia Siemens Networks Customer Confidential

    Packet Abis for IP/Ethernet Networks

    Capacity and Efficiency

    Packet Abis over IP/Ethernet

    Operability

    Abis Delay Measurement

    Maximize Performance

    Local switching for Packet Abis

    Packet Abis Synch. IEEE 1588v Packet Abis synchronous Ethern

    Packet Abis Security

    QoS aware Ethernet switching

    Packet Abis for inst. base

    Legacy Abis

    EDG

    EPh2

    Voice

    Voice

    Voice/OSC

    EDGE

    Packet Abis

    Bandwidth

    Voice/OSC

    EDGEPh2

    Bandwidth saving

    > 50%

    SysMod.

    RF*

    Flexi BSC

    mcBSC

    TDM or ETH

    ETH

    TDM

    or

    Packet Network

    UltraSite

    BS2xx

    Horizon

    UltraSite

    TDM Abis Packet Abis

    Flexi Multiradio10

    Packet Abis vs PWE3 CESoPSN

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    25 Nokia Siemens Networks Customer Confidential

    Packet Abis vs. PWE3 CESoPSN

    If I already have PWE3 CESoPSNw

    Bandwidth efficiency

    Packet Abis is ~50 % more efficient due to

    Optimization

    Aggregation gains achievable

    PWE traffic (like TDM) requires same band

    Traffic does not depend on air interface

    0.00

    0.20

    0.40

    0.60

    0.80

    1.00

    1.20

    Bandwidth

    need

    -50%

    -99%

    Results from commercial networks

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    26 Nokia Siemens Networks Customer Confidential

    Results from commercial networksExpectations exceeded in live implementations

    >60%savings

    Results:

    Typical throughput reduced bymore than 60%, both for Packet

    Abis over Ethernet and TDM All Radio KPI maintained

    Stable synchronization for Ethernetsites withTiming over Packet IEEE1588v2

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    27 Nokia Siemens Networks Customer Confidential

    Operational Efficiency

    Energy Efficiency Software Solutions

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    28 Nokia Siemens Networks Customer Confidential

    Energy EfficiencySoftware Solutions

    Fundamentals to optimize the power consumption

    PA Shutdown for Idle TSLs (Flexi EDGE and Ultrasite) *) Traffic Prioritization to BCCH TRX *)

    Downlink Power Control *)

    Downlink Discontinuous Transmission (DL-DTX)

    Common BCCH

    Single Antenna Interference Cancellation (SAIC)

    AMR HR

    Further enhancements for energy savings

    Adjustable Intelligent Shutdown

    Energy Saving Mode for BCCH TRX

    2G TRX Automatic Power Down (Flexi EDGE)

    Energy Optimized TCH allocation

    Flexible MCPA TX Power pooling

    OSC

    Energy Efficient Coverage

    BTS power consumption

    BTS traffic load

    TS0 TS1 TS2 TS3 TS4 TS5

    competitor

    BTS+

    on on off off on on

    Flexi

    Traditional BTS

    BCCH

    TRX2

    Minimizing usage of PA, and level of power transmitted Minimize n.r of TS used, and power-optimize allocation of traffic to TS

    *****

    **) Features included in basic Operating S

    Energy Efficient Coverage (EEC) ASW feature in nu

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    29 Nokia Siemens Networks Customer Confidential

    Energy Efficient Coverage (EEC) ASW featurein nu

    Improved GSM capacity, coverage and network quality - enabling true re-farming

    Supported by standard MS and core networks

    Requires Flexi Multiradio BTS family with antenna diversity and RG30

    RadioChannel

    RadioChannel

    TX 1

    TX 2Delay + PH

    TXdata

    EEC is similar to 4G MIMO butworks with standard GSM MSs

    Standard GSM mobile stations combinesignals and obtain gainsimilarly to MIMOin 4G

    Typically 4 dB better coverage

    BTS Tx diversity smoothens huge phase diversity rises quality further

    The effective BTS transmitter powe58 dB, but typically 4 dB gains calimited networks

    Overall interference level is reducefrequency re-usee.g. 3+3+3 carrwith BCCH re-use 9 and TCH re-us

    For UL limited networks also 4 wayrequired

    Go+ 20 dB

    - 20 dBBa

    Fastfading

    Multipath fading inurban areas

    BTS Tx diversity

    Highest multipath diversity gain canobtained behind obstacles, wherethe majority of the radio signal is

    reflected from surrounding objects

    BTS transmits signals via two antennas, theother signal slightly delayed and phase shifted

    Space diversity Delay diversity Phase diversity

    Tx 1

    Tx 2

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    Quality

    HD Voice has arrived also to GSM networks

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    HD Voice has arrived also to GSM networksProviding one scale better speech quality

    Orange/France telecom survey

    Longer phone usage by some u

    76% prepared to change mobil

    Frequency spectrum of Narrow Band AMR (NB-AMR)

    Wide Band AMR (WB-AMR)

    50 300 3400 7000 Hz

    Power

    HD Voice enables one scale better speech quality

    Maximizing subscriber growth, usage and retention

    Same HD Voice codecs for GSM, WCDMA and LTE

    Supported by Symbian and Windows Phones as default iPhone and Android support by operator request

    Worlds First HD Voice over GSM n

    Nokia Siemens Networks wiGSM HD Voice customer ref

    Nokia 800

    Nokia

    Nokia 710

    Interworking for GSM-WCDMA and GSM-LTENewRG1

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    Interworking for GSM WCDMA and GSM LTE

    Basic Interworking

    GSM-WCDMA Interworking

    LTE System Information

    Advanced Interworking GSM-WCDMA, Controlled WCDMA

    IMSI based Handover

    Inter System NCCR

    Inter System NACC (if not NSN WC

    Service Quality based WCDMA A

    Inter System NACC for LTE (if not NGSMWCDMA Interworking

    Idle mode

    campingpreference

    Continuous

    coverageprovision

    Data service

    connectivity

    Service

    performanceoptimization

    Load

    balancing

    Load basedhandover

    Load awarecall control

    Cell re-

    selectionPacket

    handover

    Service basedhandover

    Coveragebased handover

    Idle modeparameterization

    Penalty timers, re-selection timers

    Interworking features

    Optimized Multiradio network

    End users expecting full service

    Maximized service experience w

    Optimized utilization of resources

    GSMLTE Interworking

    Increasing need for Advanced GSM-WCDMA Interwo

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    Basic GSM-WCDMA interworking is already implemented inall networks

    The need for advanced interworking features depends on Available spectrum for GSM900/1800 and WCDMA900/2100; re-

    farming from GSM to WCDMA

    3G terminal penetration, Smart Phone penetration

    Coverage of respective layers

    Increasing need for Advanced GSM WCDMA Interwo

    WCD

    GS

    Above factors change over time! Reason to re-evaluate the need for more

    advanced interworking features!

    Advanced GSM/WCDMA Interworking

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    34 Nokia Siemens Networks Customer Confidential

    Advanced GSM/WCDMA InterworkingInter System NCCR and Service Qual ity B ased WCDMA Acc ess

    Inter System Network Controlled Cell Reselection (NCCR)

    Initiates a cell reselection from a GPRS/EDGE cell to a WCDMA RAN cell.

    Service Quality Based WCDMA Access GSM to WCDMA Advanced Cell Reselection

    Received signal code power, RSCP, can be used as an additional 2G to 3G cell re-selection criterion in idle mode to prevent ping-pong effect in 2G-3G cell reselection

    WCDMA neighbor cell reporting enhancement

    Received signal code power, RSCP, can be used as an additional 2G to 3G cell handovercriterion in connected mode to prevent ISHOs and IS-NCCRs from 2G to 3G cell whenthe new cells uplink performance would be poor

    data

    Customer Benefits

    Optimized usage of 2G/3G investments due extended measures tocontrol the data traffic balancing between 2G/3G networks

    Improved Quality of Service due better data performance

    WCD

    GS

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    35 Nokia Siemens Networks Customer Confidential

    Security

    GSM air interface security needs upgradeWe can p

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    36 Nokia Siemens Networks Customer Confidential

    y pg pradio networks !

    Chaos ConfereDefending mo

    GSM security in 1990 was a revolutionand a fundamental success with design

    lifetime of 20 years

    A5/3 ciphering

    Random Fill bits

    SDCCH hand over

    GSM radio network features that make A5/1 cracking method not feasible

    Plaintext

    SDCCH HO

    SI5x message

    SI5x message Non-ciphered plaintexteasier cracking of Kc

    Plaintext, but useless

    New Kc

    A5/1 ciphering SI is ciphered with Kc

    False SI5x message

    Predictable transactions

    Ciphered butpredictable 2b

    Ciphered and

    randomized

    A5/3 is strongKasumi used

    GPencnot

    Packet Abis Security

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    37 Nokia Siemens Networks Customer Confidential

    y

    IPsec Authentication

    IPsec Encryption

    IPsec Integrity

    IPsec

    Internet Protocol Security

    Simplify Network Complexity with IP Security

    public domain

    EthEthPacket Switched

    Network

    IPSecurity

    Gateway

    Integrated O&M in OSS/NetAct

    IPsec integrated in Flexi Multiradio/EDGE

    Any Flexi BTS

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    Roadmap Overview

    GSM Roadmap Overview

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    GSM Suite for Liq uid Netis an integrated part of our

    GSM Application Software Portfolio

    based on market feedbackaddressing typical GSM operator challenges

    Strong GSM software development focus, and valuable solution pac

    Improving voice efficiency and performance

    Leading Spectrum Efficiency as enable for 3G/LTE refarming to GSM frequ

    Coping with high Data & Smart Phones traffic/signaling load

    Operational efficiencytransport evolution to IP, reduced energy consumpSecurity in air interface and transport network

    Single RAN, and interworking with WCDMA & LTE