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San Francisco

WBA Q3/2012

Introduction of Nanocell

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Outline

Motivation of Nanocell

Introduction of Nanocell

Architecture of Nanocell

Key Features and Unsolved Problems

Way Forward and Summary

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Data Traffic Increasing Dramatically

Data traffic load is exploding User number of global mobile broadband is increasing at 45%per year in the last 4 years Global wireless data traffic increased is increasing at >100%per year, and future increase forecast is 40X

in 5 years, 1000Xin 10 years

New type terminals accelerate explosive increase of data traffic, percentage of smart phone is still low

nowadays, potential increase will be great

Growth rate of user number

of global mobile broadband

Data traffic brought by

different type of terminals

Source fromITU Source fromCisco

Smart phone

Pad

Laptop

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Challenges to operators

2,000

3,000

4,000

5,000

1,000

Q2:06 Q4:06 Q2:07 Q4:07 Q2:08 Q4:08 Q2:09

0

($M) TB

Source fromAT&T

2,000

0

3,000

4,000

5,000

1,000

Mobile data traffic growth Vs. Network carrying capacity growth

Global mobile data traffic annual compound growth rate is 92% Mobile network capacity annual compound growth rate is 60%

Mobile data traffic growth Vs. Operators revenue growth

Global mobile data traffic increased 280%in last 2 years

Operators revenue annual compound growth rate is decreasing

Operators need low cost and high spectrum efficiency technology to meet thechallenges

0.24 EB0.6 EB

1.2 EB

2.2 EB

3.8 EB

6.3 EB

0

1

2

3

4

5

6

7

2010 2011 2012 2013 2014 2015

1 ExaByte = 10 18Byte

Revenue of data traffic ($M) Total data traffic (TB)

Revenue ofdata traffic

Total data traffic

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Smallcell and WLAN is considered to be lowcost broadband access schemes for hotspots

New frequencybandXX2

Spectrumefficiency gainYX2

Cell densitygain ZX8

Hard to fulfill future capacity demandonly with macro cells, future networkneed small cells with high capacity, lowcost and low power consumption

WLAN is low cost wirelessbroadband access technology

802.11n

802.11g

802.11ac

20 Mbps

100 Mbps

300 Mbps

Higher throughput

Cellular network structure is changingfrom macro cells to small cells

WLAN technology is developing

Radio network capacity gain schemes

Total capacity gainX*Y*Z=2X2X8=32X

CMCC is making great effort on WLANnetwork construction2012-6 2.83 millionWLAN APsNext 3years, achieve 6millionAPs

Small cell and WLAN integration can further decrease operatorsCPAEX/OPEXand helpful on inter-system interference control

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Outline

Motivation of Nanocell

Introduction of Nanocell

Architecture of Nanocell

Key Features and Unsolved Problems

Way Forward and Summary

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NanocellThe Cost Effective Solution forMobile Broadband

Microcell

Nanocell

Nanocell

NanocellNanocell

NanocellMacrocell

Nanocell

Microcell

Macrocell

Microcell

Nanocella smallcelle.g. picocell, femtocell etc.integrated with carrier grade

WLAN AP, generally deployed in enterprise, hot spots and home scenarios

1. Cellular + carrier grade WLAN

2. Low CAPEX/OPEX: SoC chip solution,

high integration, small size, low power

consumption

3. One node dual coverage &

guaranteed interference control

offloading macro cellular network,

good inter-system interference control

between cellular and WLAN

4. Flexible and cost effective backhaul

may use wireless/xPON for backhaul

5. Trust environment with guaranteed

security

ScenariosNotebeside LTE, Nanocell may also support 2G/3G/LTE

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Candidate Scenarios on the Introduction ofNanocell

Scenario with existing WLAN and need introduce or enhance LTE Use Nanocell to replace existing indoor/outdoor WLAN AP

Use the footprint, backhaul and power supply of existing WLAN , offer

cellular and WLAN network access simultaneously

Scenario wo existing WLAN and LTE capacity need enlarge Use Nanocell to construct bottom layer LTE coverage, compose a multi-

layer network with macro cells to enlarge the total capacity

Integrated WLAN can offload the traffic further, and support more types

of access terminals

Scenario wo existing WLAN nor LTE User Nanocell to construct LTE and WLAN network simultaneously

Enhance LTE coverage and carrier grade WLAN coverage with low

CAPEX/OPEX solutions

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Outline

Motivation of Nanocell

Introduction of Nanocell

Architecture of Nanocell

Key Features and Unsolved Problems

Way Forward and Summary

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Nanocell ArchitectureAccess to Cellular Corenetwork and WLAN Core Network

Nanocell Architecture Requirement

Leverage Smallcell and WLAN similarities on network architecture and backhaul

WLAN module can provide the same carrier-grade function such as Portal and EAP-SIM/PEAP authentication

Functional Requirement

Nanocell shall support CAPWAP protocol to be connected with AC

Backhaul

Portal AAAAC

Nanocell

GWS-GW P-GW

MME

HSS

Internet

Nanocell

OAM

EPC

WLAN Access & Control

Nanocell related

Existing network element

LTE

WLAN

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Nanocell Fallback to Smallcell ArchitectureWithout WLAN EnableOnly Access to Cellular Core Network

UE Nanocell Backhaul

Nanocell

GWS-GW P-GW

MME

HSS

Internet

Nanocell

OAM

EPC

Local-GW

Besides NanocellNanocell Gateway and Nanocell OAMarenewto existing network

New Nanocell

Existing network element

Nanocell Fallback to Smallcell ArchitectureWithout WLAN Enable

Only Access to Cellular Core Network

i k i h

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New Requirement on Network withthe Introduction of Nanocell

No requirement on existing network architecture

Shall introduce Nanocell gateway and authentication network

element

Authorization and authentication of Nanocellprotection on signaling and data

transmission As the boarder to the core network, routing for signaling and traffic

Introduce Nanocell OAM system

Nanocell OAM can be standalone at the initial stage, can be integrated with the

current Macro network OAM later

Nanocell OAM mainly responsible for the cellular module, the WLAN module

can be managed by existing WLAN OAM

Standardize and Open the interface of WLAN AP and AC

Make the CAPWAP protocol complete and standardize

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Outline

Motivation of Nanocell

Introduction of Nanocell

Architecture of Nanocell

Key Features and Unsolved Problems

Way Forward and Summary

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Enhancement of Nanocell for Selected IP TrafficOffload

Nanocell

Nanocell

OAMMME/SGW

WLAN

AC

IPSec

Tunnel

CAPWAP

Tunnel

Internet traffic offload to

reduce pressure on backhauland core network

Based on local WLANarchitectureachieve thelocal IP access

Access local IP resourcessuch as campus andenterprise local IP server

Way to realizebased onNAT and replace the IP

address assigned by thecellular network with the IPaddress assigned by theWLAN SrcCellular IP SrcWLAN IP

Dest.IP2 Dest.IP2

InternetServer

IP2

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Standardization Enhancement of CAPWAP Protocol

Switch

Internet

BRAS

WLAN

CellularWLAN

AC

MME

PGW/SGW

SecurityGW

PGW AssignUE Cellular IP

Assign UEWLAN

IP AddressIPSec Tunnel

Solution Design PrincipleProvide multiple vendor interaction

Nanocell

Shared Backhaul

Problems to be Clarified

Local MAC and Split MAC Clarification

Encapsulation of EAP in CAPWAP-CTL

plane

New Elements needed802.11n support

Channel auto reconfiguration

Power auto reconfiguration

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Outline

Motivation of Nanocell

Introduction of Nanocell

Architecture of Nanocell

Key Features and Unsolved Problems

Way Forward and Summary

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Nanocell Whitepaper V1.0 Has Been Released

1. Introduction

Future network vision, Nanocell definition,

development stages

2. System Architecture

3. Functional Requirements

3.1 Radio access equipment

RF, hardware, SON, Synchronization, airlink

security, LIPA

3.2 Network element requirements

Requirements on EPC, gateway, AC, OAM,security gateway, WLAN authentication

4. Important Issues

Cost, synchronization, interworking

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Summary

Nanocell increase the LTE coverage and capacity Reduce the interferences between LTE and WLAN

The converged architecture of the network to reduce the CAPAX andOPEX

The scenario of Nanocell deployment WiFi hotspot exist: introduce Nanocell to upgrade the existing AP to

provide LTE and WLAN coverage

Without WiFi hotspotneed to improve LTE capacity: using Nanocellto build the hierarchical network and using WiFi for offloading

Without WiFi hotspotwithout LTE good coverage: using Nanocell tobuild the WLAN and LTE with low cost

Next Step Further analysis and improvement on the overall solution

Perform TD-LTE Nanocell/Smallcell corporation work and testing