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Why go to LTE? By 2010 mobile broadband (700M users) will surpass fixed broadband (500M users) (Source: Ovum, Strategy Analytics). Mobile Broadband increase is being driven mainly by HSPA with over 80% of the world Mobile broadband connections being HSPA in 2013 (Average of ABI (Q3 2008) and In-Stat (June 2008) and to a lesser extent EVDO. LTE will be adopted by greater than 80% of wireless carriers leading to a thriving eco-system and massive economies of scale evolving from today’s 525 EV-DO devices (100 Rev A ) and > 1400 HSPA devices (240 HSUPA). Thanks to adoption of new smart phones such as iPhone the data market is growing fast. Usage of applications from the mobile like video, music MMS and games is much more important and the network should follow this new trend to cope with the new demand in data traffic. The cost per Byte will be key to maintaining competitiveness. LTE technology is the most Cost effective Radio access technology for the operator. What is needed to launch an LTE network? 1. Sufficient spectrum is needed, LTE supported frequencies range from 700 MHz to 2.6 GHz. The country specific regulator will determine what frequencies can be used for LTE. 2. LTE will be first targeted at Data Hot Spots (locations of very high mobile broadband penetration) currently served by HSPA. At some stage, the business case will become very attractive to shift to LTE due to the lower Cost per Byte of LTE. 3. Even for hot spot zones where LTE will be deployed, a fallback network will also be required. Launching LTE is about establishing complementary networks: HSPA coverage is a success enabler for LTE. 4. Device availability is a key factor to come to success. The ecosystem should be ready meaning that you should get devices supporting planned voice and data services for low cost. The price should be part of the business plan as they may defer to HSPA devices. Alcatel-Lucent 2G - W-CDMA Smooth Migration to LTE – Fact Sheet 2G and W-CDMA Smooth Migration to LTE LTE: Innovative, cost-effective and future-proof technology Protecting service providers’ investments as they evolve from 2G/3G

2g Wcdma to Lte June2009

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Why go to LTE?

By 2010 mobile broadband (700M users) will surpass fixed broadband (500M users) (Source: Ovum, Strategy Analytics). Mobile Broadband increase is being driven mainly by HSPA with over 80% of the world Mobile broadband connections being HSPA in 2013 (Average of ABI (Q3 2008) and In-Stat (June 2008) and to a lesser extent EVDO.

LTE will be adopted by greater than 80% of wireless carriers leading to a thriving eco-system and massive economies of scale evolving from today’s 525 EV-DO devices (100 Rev A ) and > 1400 HSPA devices (240 HSUPA).

Thanks to adoption of new smart phones such as iPhone the data market is growing fast. Usage of applications from the mobile like video, music MMS and games is much more important and the network should follow this new trend to cope with the new demand in data traffic.

The cost per Byte will be key to maintaining competitiveness. LTE technology is the most Cost effective Radio access technology for the operator.

What is needed to launch an LTE network? 1. Sufficient spectrum is needed, LTE

supported frequencies range from 700 MHz to 2.6 GHz. The country specific regulator will determine what frequencies can be used for LTE.

2. LTE will be first targeted at Data Hot Spots (locations of very high mobile broadband penetration) currently served by HSPA. At some stage, the business case will become very attractive to shift to LTE due to the lower Cost per Byte of LTE.

3. Even for hot spot zones where LTE will be deployed, a fallback network will also be required. Launching LTE is about establishing complementary networks: HSPA coverage is a success enabler for LTE.

4. Device availability is a key factor to come to success. The ecosystem should be ready meaning that you should get devices supporting planned voice and data services for low cost. The price should be part of the business plan as they may defer to HSPA devices.

5. Unlike GSM and HSPA, LTE does not support a circuit switch voice offering. LTE supports Voice services through a VoIP solution utilizing IMS

Alcatel-Lucent’s LTE solution is cost-effective for both CAPEX and OPEX

Benefit from a CAPEX-contained deployment, with LTE from Alcatel-LucentWith our pioneering multi-standard BTS in the 620,000 multi-standard cabinets we’ve shipped since 1999, our hardware is already ready for LTE. We have driven many “smooth evolution” success stories, for example in China.

We have a single solution for both LTE FDD and TDD, with a software-only upgrade to LTE FDD for customers with existing W-CDMA modules and high levels of investment protection for our GSM and CDMA customers

Alcatel-Lucent 2G - W-CDMA Smooth Migration to LTE – Fact Sheet

2G and W-CDMA Smooth Migration to LTELTE: Innovative, cost-effective and future-proof technology Protecting service providers’ investments as they evolve

from 2G/3G

Our converged RAN strategy and Software Definable Radio (SDR) products allow for maximum reuse of existing radio equipment. Assuming the same frequency (e.g. 900MHz) it is possible to software upgrade our new radio Modules (MC-TRX/MC-RRH) from GSM to WCDMA and to LTE.

Our mastery of a variety of flexible deployment scenarios allows for a “pay as you grow” approach which streamlines spending

Reduce OPEX, with LTE from Alcatel-Lucent Our Extended Management Solution (XMS) leverages Alcatel-Lucent’s comprehensive field-proven

wireless common OAM applications o Single operational experience for 2G-3G-4G wireless network o Single-point first-alert and service assurance, including true end-to-end IP/MPLS service

management With the SON (Self-Organizing/Self-Optimizing Network) innovations leveraging Alcatel-Lucent Bell

Labs expertise, operators are enabled with plug & play eNode B, self-organized and self-optimized RAN for rapid roll-out and tuning, as well as automatic neighbor list configuration and optimization mechanisms.

Alcatel-Lucent’s LTE offer is end-to-end

The Alcatel-Lucent LTE RAN solution fits into a complete LTE end-to-end offer, which can include:

IP-enabled mobile transport: All-IP, high QoS, flexible and integrated solution for converged, cost-efficient 2G + 3G + LTE transport based on Mobile Evolution Transport Architecture (META)

Evolved Packet Core: Service-aware EPC with advanced QoS and best in class scalability for dynamic IP, mobility and policy management

Service Delivery Environment: Open and field-hardened SDE including IMS Service Delivery Platform to efficiently blend telecom with web 2.0

ngConnect Program : by founding the ng Connect Program, Alcatel-Lucent has brought together device, application and content companies to create an end-to-end ecosystem with all the resources and expertise required to rapidly deliver next generation services and applications to service providers, enterprises and consumers.

Services: Ranked N° 2 worldwide in the Services segment, Alcatel-Lucent has experienced project teams in most countries who can provide top quality project management, installation, integration, optimization and maintenance services, which are so essential for telecom projects to succeed. We also have the processes in place so that our experiences with one customer benefit all of the others.

Spectrum refarming is key LTE standards define a new radio access and flat-IP core, which enhances performance and

operating costs, based on three technology pillars: Flat-IP, OFDM and MIMO. Beyond that, LTE is characterized by its ability to be deployed on various bandwidth (from 1.4MHz to 20MHz) and in different frequency bands, from 700MHz to 2.6GHz, including all of the 3GPP bands. This flexibility enables many deployment scenarios, including spectrum re-farming, i.e. re-allocation of spectrum used for GSM or W-CDMA to LTE. Lower frequency bands, which benefit from excellent propagation properties, can for instance be re-allocated for LTE coverage.

Beyond the re-use of the cabinets, the value of co-locating GSM/W-CDMA and LTE equipment also lies in the ability to share or re-use the radio equipments, hence further

Alcatel-Lucent 2G – W-CDMA Migration to LTE 2

900MHz spectrum refarming for coverage enabled by SDR assets (Software Defined Radio)

reducing the CAPEX and OPEX. This flexibility is possible thanks to Software Defined Radio (SDR) equipment which has the ability to support different radio access technologies, and jumping from one technology to another via simple software upgrade. In advanced markets, GSM/WCDMA operators will initially deploy LTE in new bands (e.g. 2.6GHz in Europe) to cover hot zones. In a second step, re-farming of part of the GSM/W-CDMA spectrum, especially in the 900MHz band allows for a broadband coverage in rural environment and better in-door penetration. Ideal case for an operator is obviously to have additional spectrum in the 800MHz band (digital dividend) for example to be able to cover Rural areas or use this spectrum for umbrella cells in Urban environment.

Inlay or overlay?The operator has two options: deploy LTE in the same band as GSM (/WCDMA or in another band. In the first case, or inlay deployment, some of the W-CDMA spectrum is allocated to LTE. SDR modules initially operate in W-CDMA and the operator can dynamically allocate part of the spectrum resource to LTE. The LTE capacity grows while the W-CDMA capacity decreases.

In the second case, LTE equipments hosted in the W-CDMA cabinets operate in another band, therefore not impacting the W-CDMA capacity.

Converged RAN: Alcatel-Lucent solution for migration from GSM / WCDMA to LTE

Alcatel-Lucent has developed the Converged RAN, an end-to-end approach to enable resources optimization, to accelerate your radio access network deployments together with QoS continuity over a cheaper transport network. With Alcatel-Lucent Converged RAN you not only protect your GSM and W-CDMA investments, but also ensure a simple path as you evolve your network to LTE. In this brief paper we will focus on the Converged BTS.

Alcatel-Lucent 2G – W-CDMA Migration to LTE 3

Converged RAN: The Converged BTS

Since 1999, Alcatel-Lucent’s Multistandard strategy means that multiple different technologies (i.e. radio access standards) can be hosted in the same cabinet. As a result, the Alcatel-Lucent Multistandard Base Station adapts to your requirements, as you move from GSM to GPRS, EDGE, GERAN evolution, W-CDMA, HSPA, HSPA+, and LTE and so on.

Our Software Defined Radio (SDR) technology makes it possible to support GSM. WCDMA and/or LTE simultaneously with the same Radio modules through network reconfiguration only and will not require costly on-site intervention to deploy new radio modules.

The figure below show the Alcatel-lucent converged BTS solution, consisting of radio modules (RRH, TRDU and MC-TRX) and Digital modules (BBU for WCDMA/LTE) and SUMx (GSM controller). Alcatel-lucent is the only vendor offering a totally software upgrade solution of our digital BTS from WCDMA to LTE. All other equipment vendors require the addition of plug in modules (controller and modem cards) to move from WCDMA and LTE. Another key difference of the Alcatel-lucent solution is to ensure that GSM control is independent from WCDMA/LTE to avoid a single point of failure in case the BTS fails.

Alcatel-Lucent 2G – W-CDMA Migration to LTE 4

InternetInternetC DNC DN

C ontrol

C ircuit C ore

Multi-L ayer T ransport &Aggregation

C ell S ite Access

The Converged RAN

P acket C ore & E volved P acket C oreP acket C ore & E volved P acket C ore

S DR S DR

E thernet

C onvergedR adio

C onvergedMobility

F eatures

C onvergedT ransport

C onvergedManagement

2G , 3G & L T E Network and

S ervice Manager

Alcatel-Lucent 2G – W-CDMA Migration to LTE 5

Remote Radio Heads

zero foot-print solutionsPlug-in radio modulesfor GSM or WCDMA cabinets

TRDUWCDMA

LTE

MC-RRHMC-TRX

GSMWCDMA

LTE

GSMWCDMA

LTE

Single PA Dual PA

WCDMALTE

900MHz 1800 MHz

900MHz 1800 MHz

WCDMALTECommon Base

Band Unit (d2U)GSM+

GSM Controller SUMX

Single PA

Dual PA

RRH

Single PA

BBU

GSM

W-CDMA

LTE

GSM

W-CDMA

LTE

LTE Migration Example A: Existing GSM 900/1800MHz and UMTS 2100MHz network

2009: Installed base with GSM twin TRX 900/1800 MHz and UMTS/LTE TRDU 2100MHz

2010: Replace GSM Twin TRX with GSM/UMTS/LTE MC-TRX. Perform existing 900/1800MHz spectrum refarming and activate by SW only UMTS 900 MHz and LTE 1800 MHz. Increase BBU capacity to absorb LTE traffic.

2011: Activate all MC-TRX in multi-mode by SW only

2012: Convert one GSM+UMTS MC-TRX 900 into UMTS 900MHz only as well as one GSM+LTE MC-TRX 1800 MHz into LTE 1800 MHz only. Activate LTE 2100 MHz by SW upgrade only and introduce dedicated LTE 2600 MHz module.

LTE Migration Example B: GSM BTS renovation to LTE

2010:Deployment with GSM/UMTS/LTE MC-TRX 900/1800 MHz and UMTS/LTE TRDU 2100 MHz

2011: Convert all MC-TRX into multi-mode by SW only

2012: Convert some MC-TRX into UMTS only and LTE only by SW. Activate LTE 2100 MHz by SW and introduce LTE 2600 MHz.

Conclusion

Alcatel-Lucent will ensure that its wireless strategy leads you to a long term success. Alcatel-Lucent Portfolio enables a seamless upgradeable path from existing Wireless networks to LTE for all of its current wireless customers in order to take advantage and protect its embedded base. Alcatel-Lucent has the scale and expertise to drive the evolution from any technology and spectrum and to 3G, 4G and beyond, making the company an ideal partner for operators as they pursue their competitive transformation initiatives.

Alcatel-Lucent 2G – W-CDMA Migration to LTE 6

GSMGSM900900

GSMGSM18001800

UMTSUMTS21002100

GSMGSM900900

GSMGSM18001800

UMTSUMTS21002100

UMTS/LTE BBUUMTS/LTE BBU

Installed base 2010 2011 2012+

GSMGSM18001800

GSM GSM ++

LTELTE18001800

GSMGSM900900

UMTS/LTE BBUUMTS/LTE BBU

UMTSUMTS21002100

GSMGSM++

UMTSUMTS900900

UMTSUMTS21002100

UMTSUMTS21002100

UMTSUMTS21002100

GSMGSM++

LTE LTE 18001800

GSM GSM ++

LTELTE18001800

GSMGSM++

UMTSUMTS900900

GSMGSM++

UMTSUMTS900900

UMTS/LTE BBUUMTS/LTE BBUUMTS/LTE BBUUMTS/LTE BBU

UMTSUMTS21002100

UMTSUMTS++

LTELTE21002100

LTELTE26002600

GSMGSM++

LTE LTE 18001800

LTELTE18001800

GSMGSM++

UMTSUMTS900900

UMTSUMTS900900

UMTS 2100 MHzGSM 1800 MHzGSM 900 MHz

UMTS 2100 MHzGSM 1800 MHzGSM 900 MHz

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 2600 MHzLTE 2100 MHzLTE 1800 MHz

UMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 2600 MHzLTE 2100 MHzLTE 1800 MHz

UMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

GSMGSM18001800

UMTSUMTS21002100

UMTS/LTE BBUUMTS/LTE BBU

2010 2011 2012+

GSM GSM ++

LTELTE18001800

GSMGSM900900

GSMGSM++

UMTSUMTS900900

UMTSUMTS21002100

UMTSUMTS21002100

UMTSUMTS21002100

GSMGSM++

LTE LTE 18001800

GSM GSM ++

LTELTE18001800

GSMGSM++

UMTSUMTS900900

GSMGSM++

UMTSUMTS900900

UMTS/LTE BBUUMTS/LTE BBUUMTS/LTE BBUUMTS/LTE BBU

UMTSUMTS21002100

UMTSUMTS++

LTELTE21002100

LTELTE26002600

GSMGSM++

LTE LTE 18001800

LTELTE18001800

GSMGSM++

UMTSUMTS900900

UMTSUMTS900900

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 1800 MHzUMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 2600 MHzLTE 2100 MHzLTE 1800 MHz

UMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

LTE 2600 MHzLTE 2100 MHzLTE 1800 MHz

UMTS 2100 MHzUMTS 900 MHzGSM 1800 MHzGSM 900 MHz

Alcatel-Lucent 2G – W-CDMA Migration to LTE 7