2G-3G Conversion Huawei

7/30/2019 2G-3G Conversion Huawei

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www.huawei.com

Critical Success Factors

2.5G to 3G Migration

The 8th Arab Telecom and Internet ForumShangri-La's Resort, Muscat - Oman

24 -25 May 2006

Presented by: Moheb Adel Ramses

Technical Director, Mobile Networks

MENA Region


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HUAWEI TECHNOLOGIES CO., LTD. Page 2

Overall Evolution and Industry Trend

Access busin ess and Services business break up

Source: HUAWEI

Best ConnectedReachable Integration

User needs and

Services oriented

Coverage

CapacityNew Services

Broadband

M2M etc.~2002 2010

$

Medium=Service

Pay formediaaccess

Voice operation

Transfer to content

Non-Voice operation

1990

Pay for Content


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Wireless Network TrendsUnified

Flat

Converged

ALL IP

Time

Network

Architecture

Radio

Access

Terminal

IMSIP UTRAN

Enhanced IMSE2E IP

RNC LTE

Soft-switchIP CN

Ultra-high speed

Ubiquitous coverage

Higher Spectrum efficiency

Various access technology

Low Cost

Indoor coverageUMA

WiMAX

OFDMMIMO

HSDPAHSUPA

WIFI

Multi BandMulti ModeMulti Media

SoftwareDefined Radio

OnlineReconfigurable

Dual BandDual Mode

Converged

Intelligent

Integration

The wireless networks converge in the core network and the terminal.

Wireless access adds value to services, and users will choose best value connection.

Usage goes indoor! More than 70% traffic has moved from highway to hallway


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RAN Evolution Trends

Source: Qualcomm

3GPP

2

3GPP

WCDMA and CDMA2000 have very

similar RAN migration roadmaps.

UMTS

CDMA2000

WiFi UMA/WiMAX


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Core Network Evolution Trends

UMTS and CDMA2000 also have very similar core network migration roadmaps.

Soft-Switch is the optimum structure for voice IMS is the optimum structure for multimedia service

SoftSwitch and IMS will coexist for a long time

TDM/IP

MSC Server

PSTN

MGW MGW

H.248 H.248SIP-T

Softswitch MSC (R4)/LMSD

MSC Server

TDM

MSC

PSTNCDMA BSS/UMTS RAN

MISUP

Legacy MSC (R99)

MSC Dividedinto MSCServer &

MGW IP

MGCF

PSTN

MGW MGW

H.248 H.248

SIP

MGCF

CSCF

CDMA BSS/UMTS RAN

CDMA BSS/UMTS RAN

IMS/MMD (R5/R6)

CS + IMS (+ PS)CS (+ PS) IMS (+ PS)


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GSM Market Growth

Forecast of MENA Subs

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009

Subs(Million)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

AnnualChange(%)

Total Subs

Annual Change

Source: EMC World Cellular Database, Dec 2004

The number of GSM subscribers will exceed 2 billion by the end of 2007

Lower End-to-End cost is the main strength of GSM networks

ME&NA is still the fastest growing mobile market

Voice and SMS are and will still be the main source of revenue for quite a long time

Source: Informa


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3G, a new engine to improve ARPU

UMTS subscribers numberhit 44.6 million worldwide

by the end of 2005, an

increase of161%on the

figure at the end of 2004.

Today, there are 108 commercial WCDMA operators in 47 countries. The majority are enabling HSDPA in their networks as

the new baseline for 3G globally (www.gsacom.com )

Green field UMTS networks are still facing relatively high price terminals

GSM operators in MENA launch UMTS networks focusing on data services for high end users, despite the poor take-up of

their 2.5G data services

There is generally a limited amount of money available from users to increase the total revenues of operators

HSDPA availability is currently boosting the 3G deployment, allowing a net differentiation between 2.5 and 3G services.

HSDPA gathers momentum in the MENA, especially in the Gulf countries like UAE, Kuwait, Bahrain, Oman, etc

0

50

100

150

200

250

300

350

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08

0

50

100

150

200

250

300

350

400

Subscribers (Million) Number of networks

44.6 millions Subs

83UMTS networks

Number of Subscribers

Number of Networks

Source: www.3gtoday.com
http://www.gsacom.com/http://www.gsacom.com/http://www.gsacom.com/


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Migration Opportunities and Challenges

How to balance 2G Network Expansion versus New 3G Service Launch?

How to deploy UMTS step by step ?

How to reduce TCO to optimize the revenues of the resulting network.

GSM operators should plan to make 3G an

Evolution rather than Migration


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CAPEX

38%

OPEX

62%

CAPEX OPEX

TCO Saving in Lifecycle

OPEX represents more than half of the total cost of ownership.

Rental, power consumption, leased lines and human resources are major

parts of OPEX

0

10000

20000

30000

40000

50000

60000

70000

80000

year

1

year

2

year

3

year

4

year

5

year

6

year

7

year

8

year

9

CAPEX

OPEX

(k EUR)

TCO reduction is generally Crucial, especially atthis stage of 3G deployment

O ti i d Mi ti Pl


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Optimized Migration PlanShared Core Networks save CAPEX, OPEX and Improve Quality

Huawei Mobile Soft Switch and Packet CN achieve 2G/3G Convergence

As a considerable step towards 3G

deployment, we recommend GSM

operators to adopt R4 Soft-switch

architecture whenever they are:

Deploying a new GSM network for

a new license Expanding the core network for an

existing GSM network

Swapping legacy GSM MSC

O ti i d Mi ti Pl


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Macro indoor

Optimized Migration PlanNew Technologies Reduce TCO in Node B

Macro Outdoor

Mini Node B

Pico Node B

Making maximum use of advanced Node B technologiesconsiderably reduce TCO:

Integrated Digital PA; higher power efficiency with lowerpower consumption

Multi Carrier Transceivers; software capacity expansion

Full HSDPA performance; lower cost per bit.

Open CPRI interface; lower industrial chain cost

Distributed Node B; easier site acquisition, installation and

transportation

Optical FiberCPRI

BBU19 inch box

RRU

Distributed

NodeB

O ti i d Mi ti Pl


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E1 for CS Services and High QoS PS services

IP Network for best effort PS services

40%-80% Transmission rental can be saved!

RNCNode BIP network

E1

Balance of transmission cost saving and QoS guarantee Most efficient transmission solution for HSDPA

Transmission Resource Whole price

E1 Transmission 4E1 19200/year

Hybrid IP Transmission 2*ADSL + 1E1 5760/year

Unit Price: E1:4800/year, ADSL:480/year

Optimized Migration PlanBalanced Transmission Cost and QoS with Hybrid Transmission

Optimized Migration Plan


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Peak data rate:HSDPA = 700%Cost per MB:HSDPA =35%

HSDPA provides lower cost per bit,

clearly differentiate 3G from 2G services to the end user.

Optimized Migration PlanGo Broadband today with HSDPA



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TV Programs

Example: Mobile TV Huawei Cell Multimedia Broadcast (CMB):

All users share a common channel (FACH)

Fewer resources occupied but higher revenue for operators Low cost and good experience for end users

Smooth evolution to MBMS

CMB allows a pre-MBMS cost effective solution for Mobile TV andother broadcasts.

Optimized Migration PlanSpeed Up Introducing Attractive 3G based Applications



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At this stage, it is strongly recommended that

operators cooperate closely with terminalssuppliers to provide affordable customized

handsets.

Huawei has focused on designing chipsets for

Multi-platform solution to reduce the cost of low

end terminals

Cooperate closely with operators for customized

handsets

U626 U636 U526 E600

E618 customized

for Vodafone

U526E620(HSDPA)

Optimized Migration PlanCooperation with suppliers for Affordable and Customized User Terminals


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About Huawei 3G:Global UMTS Applications

Achieved 28 UMTS commercial contracts by the end of April 2006

Deployed over 50 pilot networks worldwide.

22% Market share of Total Awarded Contracts in 2005.

P4

NTS

Europe 12

Asia Pacific 9

Middle East 7

& Africa

Area Contract Reference

Ab t H i 3G Gl b l CDMA2000 A li ti
http://www.pccw.com/


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Over40 M subscribers

19 CDMA2000 1xEV-DO commercial applications

15 CDMA SoftSwitch commercial applications serving 10 M subscribers

over 65% global market share in CDMA450

68% global market share in CDMA WLL

Mexico Nigeria

Pakistan

Yemen

BangladeshThailand

Russia

China

Global Footprint of Huawei CDMA

About Huawei 3G:Global CDMA2000 Applications
http://www.skylink.ru/default.aspx


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Conclusion The trend of telecom industry is evolving from Network Based to Customer and Services

Based.

Despite the competition between UMTS and CDMA2000 as the two favorite 3G technologies,they do share a lot of similarities in their Capabilities and Roadmaps.

Shared Core Networks for 2G and 3G whether Circuit core based on R4 softswitch orPacket core - is a major step towards a smooth migration, optimizing CAPEX and OPEX aswell as improving QoS.

A set of new advanced technologies in the 3G Node Bs considerably help the operators toreduce the TCO while improving the overall performance.

Hybrid TDM/IP transmission is currently the favorite solution to balance the high speed datatransmission requirements and the cost of transmission resources.

Huawei strongly encourages operators to differentiate their 3G capabilities with innovative

and attractive applications (especially with HSDPA mature availability), and to cooperatewith handsets suppliers for affordable and customized user terminals.

Huawei has achieved a remarkable global presence and leadership in the mobile industry,witnessed by the wide global applications of Huawei GSM/GPRS/EDGE/UMTS/CDMA20001x/DO networks.


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Thank You

www.huawei.com

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2G-3G Conversion Huawei