CHT’s View on B4G:

Towards New Mobile

Broadband Era

Mu-Piao Shih

SEVP/CTO

Chunghwa Telecom

18 Sept. 2012

International Forum on Mobile Communication beyond 4G

2

Contents

Taiwan Mobile Market Update

Mobile Trend and Challenge

Requirement and Potential Technology

Summary

3

Landmass

35,980 sq km, 23.23 mn people

Mobile Penetration Rate

125% (2012 May)

Global Internet Bandwidth

579 Gbps

Government/School Broadband

100%

Business Online

94.3%

FTTx Household Penetration Ranking

No.5

Taiwan Outlook

4

Taiwan Mobile Market

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

2G Mobile (GSM)

Low-tier Cellular (1900MHz PHS)

3G Mobile (4 WCDMA,

1 CDMA)

Wireless Broadband Access

(WiMAX)

A Highly Competitive

Market

5

2G/3G Mobile Subscribers

0

5

10

15

20

25

30

2003 2004 2005 2006 2007 2008 2009 2010 2011

0.1 0.5 1.3 3.4

6.9 11.3

15.8 18.7

20.9 25.1

21.5 19.9 18.5

15.9

12.7

9.8 8.2

7.2 0.6

0.8 1 1.4 1.5

1.5 1.4

0.9 0.8

3G 2G PHS

(million)

Source: NCC

The number of 3G subscribers surpassed that of 2G in 2009

72%

6

Mobile Service Revenue

Source: NCC

Revenue from mobile accounted more than half of total telecom revenue

Mobile data revenue increases remarkably in recent year

7

Mobile Internet Subscribers

Note: Mobile Internet subscribers include the subscribers of WAP, GPRS,

PHS, as well as 3G subscribers that can access data communications

Source: NCC

More than 70% of mobile users have terminals with mobile internet capability

8

Taiwan 4G License Plan (Tentative)

703 718 733 748 758 773 788 803

885 900 915 930 945

1710 1730 1750 1770 1805 1825 1845 1865

Block 1 Block 2 Block 1 Block 2

960

Block 1 Block 2 Block 3 Block 1 Block 2 Block 3

Block 1 Block 2 Block 3 Block 1 Block 2 Block 3

1800MHz : 3 blocks, 2x20MHz/block

900MHz : 2 blocks, 2x15MHz/block

700MHz : 3 blocks, 2x15MHz/block

Spectrum releasing for 4G by the end of 2013

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Contents

Taiwan Mobile Market Update

Mobile Trend and Challenge

Requirement and Potential Technology

Summary

10

Mobile Generation Story

1G

1980~

2G

1990~

3G

2000~

4G

2010~

5G/B4G

2020~

Mobile Phone Everywhere

Data Goes Mobile

Mobile Cloud Era

Billion M2M

Connections

Voice Goes Mobile

11

Mobile Mega Trend

From CT to ICT From Individual to Social

From Bits to Multimedia From Voice to Data

Mobile

Cloud

Third Largest “Country”

1.3 billion 1.2 billion 900 million 300 million

12

Explosive Traffic Growth

Ref: ITU-R M.2243

20102020

3.86

127.82

Traffic Volume (EB per year)

~ 33x

13

Signaling Storm

Always-On Everywhere Frequent “Heartbeat”

Frequent UE State Transition Using Various Application

No Data Transmission

DCH Idle

Feature Phone

Smartphone

f

Voice

Message

Web browsing

Social Network

Video

In CHT the growth rate of PS call setup signaling surpassed that of data traffic in past few years

14

LTE Market Update

89 commercial networks

(2012/7)

TDD

FDD

80

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417 devices & 83 smartphone

(2012/7)

~17 million subscribers

(2012/3)

Ref: GSA Statistics (2012/7)

3%

33%

64%

Europe APAC North America

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LTE-A Technology Toolbox

100 MHz

f

CC

Carrier Aggregation

• Integrate multiple bands into a larger one

88 MIMO

• High order MIMO improves spectral efficiency

eICIC

• Intercell interference coordination enables macro/micro overlay

Relay

• Relay extends coverage with wireless backhaul

LTE/LTE-A technologies alone could NOT fully fulfill the need of 2020. Continued R&D effort beyond 4G is a must

16

Call for Green Radio

Ref: SMART2020 Report

Mobile networks CO2 emission

66MtCO2e (2002) → 179MtCO2e (2020) if BAU

Green Radio

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Who Moved Operator’s Cheese?

OTT Player

Broadband Service

Provider

4G/5G New Network

Investment

Handset

Subsidiary

Legacy Network Expansion

And Maintenance

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Contents

Taiwan Mobile Market Update

Mobile Trend and Challenge

Requirements and Potential Technology

Summary

19

Requirements and Technology

Alleviate Capacity Crunch

• Secure sufficient spectrum • Improve spectral efficiency • Small cell + HetNet • Effective Wi-Fi offload

Lower CAPEX/OPEX

• Cost-effective backhaul • Cloud RAN architecture • Energy-efficient network

Enable Smart Network

• Flexible handling of diverse traffic • Improve QoE & QoS

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Secure Sufficient Spectrum

Spectrum Crunch

Carrier Aggregation

f

Band A Band B

Short-Term Solution

Exploit High Band > 3GHz

Mid-Term Solution

Cognitive Radio

Long-Term Solution

21

Improve Spectral Efficiency

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

GPRS EDGE WCDMA1x1

WCDMA 1x2

HSDPA1x1

HSPA R6 1x2

HSPA+ R71x2

HSPA+ R72x2

LTE1x2

LTE2x2

LTE-A 2x2

bit

s/se

c/H

z

B4G

?

Spectral Efficiency Improvement

Ref: 3GPP & Qualcomm

22

Small Cell + HetNet

3G Macro

LTE Macro

LTE Pico + Femto Inter-layer

Service Continuity

Inter-layer Interference

Management

Inter-RAT Service

Continuity

Pico

Femto Femto

23

Effective Wi-Fi Offloading

3GPP CN Internet

E-UTRAN WLAN

3GPP CN Internet

E-UTRAN WLAN

IP breakout

Cellular/Wi-Fi Loose Coupling Cellular/Wi-Fi Tight Coupling

To achieve effective Wi-Fi offload, we need more ….

• Automatic Network Discovery and Selection • SIM-based Authentication • Seamless Handoff • Service Continuity

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Quick Capacity Budget

~ 33 0.8 0.7 = 18

Supply in 2020

Demand in 2020

affordable ?

• 33-fold traffic volume increase by 2020 • Wi-Fi offload 20% of mobile traffic • Tiered pricing facilitates 30% utilization reduction

3 2 3 = 18

• 3-fold wide bandwidth by 2020 • 2-fold spectral efficiency improvement • 3-fold dense network due to small cells

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Cost-Effective Backhaul

Small Cell

Proliferation of small cells requires

cost-effective backhaul solution

Backhaul Toolbox

Satellite

Free space optics

Multipoint

Mesh

Unlicensed bands

E-Band

Non-LOS

Microwave

NGA (GPON, VDSL)

Multi-hop

Fiber … and others

Topology Toolbox

26

Cloud RAN Architecture

.. ..

BTS Baseband Pooling

Multiple Remote Radio Heads

……

Core

Network

……

Baseband pooling reduces CAPEX and

resolves non-uniform traffic distribution

OPEX (cooling power) is also reduced

due to BTS co-location

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Energy Efficient RAN Network Power Consumption

Monitor & Control

Renewable Energy BTS

New Architecture/Technology

“Earth” Project Goal

Energy Consumption

50%

Reduction

Mobile's Green Manifesto

40%

Reduction

Energy Consumption

per connection

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Flexible Handling of Diverse Traffic

Download

Wi-Fi

RAN

Low-value

Traffic

High-value

Traffic Gold

Silver

Bronze

Platinum

Video

Voice

Web

Browsing

P2P

Building a smart network can improve user’s QoE, increase flexibility for traffic management, and provide a platform to create innovative services

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Contents

Taiwan Mobile Market Update

Mobile Trend and Challenge

Requirement and Potential Technology

Summary

30

Summary

Continued R&D beyond 4G

Support billion connections with diverse devices and applications

Main Requirements for B4G

Alleviate capacity crunch, lower deployment cost, and enable smart network

Efficient Resource Utilization

Use tiered pricing to encourage efficient resource utilization

Smart Regulation

New regulation for ICT convergence to facilitate sustainable and healthy ecosystem

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Thank You !