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Fi t 4G LTE N t k L h iFirst 4G LTE Network Launch in the Americas: Challenges,
Opportunities, and Lessons learned
Ken GeisheimerKen GeisheimerCTO Organization
November 16 2010November 16, 2010
DisclaimerAny statements not of historical fact are forward-looking statements within the meaning of federal and state securities laws. Forward-looking statements can be identified by words such as “anticipates,”
projects,” “plans,” “believes,” “estimates,” “expects,” and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make regarding the future opportunities for our business, the challenges and opportunities facing our business, our strategy, and the benefits of LTE to our business, availability of LTE handsets and pricing, the ability of our networks to handle traffic, and when we will launch LTE in our remaining markets . Statements made during this presentation that
are forward-looking statements and projections are subject to various risks assumptions andare forward-looking statements and projections are subject to various risks, assumptions and uncertainties. These risks and uncertainties include, but are not limited to the ability of our suppliers to
deliver LTE products and services and developments by our vendors and suppliers, and risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 31, 2009,
which is on file with the SEC, and may be obtained free of charge through the SEC’s website at f th C ’ b it t t d th i t l ti t bwww.sec.gov from the Company’s website at www.metropcs.com under the investor relations tab, or
from the Company by contacting the Investor Relations department. Such forward-looking statements are made based on management’s experience in the industry, as well as its perceptions of historical
trends, current conditions, expected future developments and other factors management believes are appropriate under the circumstances as of the date of this presentation unless specified as of some
earlier date. MetroPCS undertakes no duty to update or supplement any forward-looking statements, except as required by law.
Unless otherwise noted, all information presented herein is taken or derived from publicly available information.
2
MetroPCS is a service mark of MetroPCS Wireless, Inc. Other service marks or trademarks made herein are the property of their respective owners.
2
AgendaAgenda
MetroPCS Overview Details of our 4G LTE Network Launch Samsung Craft LTE/CDMA Handset LTE – Why First?/Why Now?y y Deployment Challenges What’s Next
3
Major Market Focus Focus on serving major metro areas
Expand into adjacent areas with communities of interest near major markets
Coverage in Major Metro Areas
Provide Metro USA nationwide coverage to more than 280 million POPs or 90% of the U.S. population
• New York City• Los Angeles • Chicago• San Francisco• Dallas/Ft. Worth• Philadelphia• Houston• Atlanta
Washington DC• Washington, DC• Detroit• Phoenix• Boston• Miami• San Diego• Cleveland• Denver• St. Louis• Tampa
4
• Tampa• Baltimore• Pittsburgh
Industry Leading Customer Adoption
8.0
Subscriber Trends
Over 7.8 million subscribers(in millions)
6.0
7.0
5 million subscribers
6 million subscribers
35% CAGR
4.0
5.0
3 million subscribers
4 million subscribers
Subs
crib
ers
3.0
1 million
2 million subscribers
subscribers
Tota
l S
1.0
2.0 subscribers
5
0.0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
20092002 2003 2004 2005 2006 2007 2008 2010
Taking the ‘Road Less Traveled’ Pioneered …
Flat rate Unlimited category Unlimited category No annual contract Pay in Advance Low cost providerp
Early technology adopter 1xRTT/CDMA network in ’02 6 sector base stations in ’04 All-IP backhaul in ‘05 DAS networks in ‘07
Technology driven cost/price leadershipleadership
Give customers a post-pay experience with predictability flexibility and
6
with predictability, flexibility and affordability
6
Leadership: First 4G LTE Launch in the Americas
Chose LTE technology for 4G in 3Q 2008 Selected Samsung as our handset partner in 1Q 2009 Signed contract with Ericsson in September 2009 Signed contract with Ericsson in September 2009 Signed contract with Samsung in March 2010
First commercial 4G LTE Las Vegas 9/21/10 First commercial 4G LTE, Las Vegas 9/21/10 First commercial dual-mode LTE/CDMA
handset from Samsung, 9/21/10 First Ericsson 4G LTE, DFW 9/29/10 Detroit 10/20/10, LA & Phil 11/4/10 Remaining 4G LTE markets launching by
EOY 2010 and early 2011
4G LTE is a Transformational Technology and is expected to be the World Standard
Samsung Craft (SCH-R900) World’s first 4G LTE handset for $299 (after $50
instant rebate) Multi modedevicewith 4G LTE 1xRTT EVDO and Multi‐mode device with 4G LTE, 1xRTT, EVDO, and
Wi‐Fi, GPS and Bluetooth connectivity 3.3” AMOLED touch screen with slide‐out QWERTY
keyboard y Enhanced HTML Web browser and TouchWiz UITM
3.2 megapixel camera and camcorder w/ auto focus 2GB microSD memory card pre‐loaded Star Trek y p
(expandable up to 32GB) HD video support Dimensions
5.20 oz. 4.48”x 2.21”x 0.6”
9
Mobile Data Dilemma
Policy EnforcementC t diff ti t d ff b d
Optimization66% of mobile data traffic
ill b id **
Policy EnforcementCreate differentiated offers based on value and willingness to pay
Satisfying d d
Wi-Fi Offload44% of data used on iPhones on Wifi28% of data used on Android devices on WiFi*
will be video**
Not able to satisf demand
Built NetworkCapacity
demandBuilt NetworkCapacity Not able to satisfy demand
* - Cisco Global Mobile
p y
Data Demand
p y
Data Demand
11
DataTraffic Forecast Update, 2009-2014 (2/2010)
Spectral efficiency: HSPA, LTE and WiMAX
Based on Average Throughput per Sector
2,0
tor]
Downlink
Uplink
1.73 1 70
1 0
1,5
cy [b
ps/H
z/se
ct
1.51
1.73 1.70
0,5
1,0
ectru
m E
ffici
enc
0.70
1.050.98
1.06
0.70
0,0HSPA Evolution LTE FDD LTE TDD 3:2 WiMAX W2
Spe 0.43
HSPA R6
0.30
12
DL: 2x2, UL:1x2 DL: 2x2, UL:1x2 DL: 2x2, UL:1x2 TDD 22:15DL: 2x2, UL:1x2
Why First/ Why Now?Maximize usage of our spectrum and
existing infrastructure assets
Leapfrog 3G technology
Timing and cost-performance
Motivate the LTE ecosystem
Partnering early with best of breed suppliersbreed suppliers
Support our strategy of graceful migration to VoLTE
Address our unique requirements such as 1.4, 3, and 5MHz BW
M t t ’ t d l i
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Meet customers’ current and evolving demands
It’s a network transformation Global Standards and open ecosystem
key drivers Order of magnitude improvement over g p
CDMA
– Data rates
~10x– Capacity expansion– CAPEX investment
reductionreduction– Incremental OPEX
backhaul savings
VoIP with VoLTE is key Flat, all-IP network to scale Gl b l E i f S l
14
Global Economies of Scale Future with LTE Advanced
4G LTE & CDMA Network
CDMA MME HSS
Aggregation
MSCMPLS Core
S/PGateway
MME HSS
PCRFAggregationRouter
Gateway
DASData Center Applications,
e.g., SMS, DPI, Internet GatewayNetwork
CDMABTS
LTEeNodeB
PublicInternet
16
Drive commonality between LTE andCDMA where it makes sense
LTE ChallengesVendor Selection Technical, financial, resources, schedule, supply chain, partnership,…etc
Handset/Chipset Availability of dual mode CDMA/LTE devices
LTE & CDMA Interference Minimize the Effect on the CDMA network and RF optimizationLTE & CDMA Interference Minimize the Effect on the CDMA network and RF optimization
Antenna Sharing & DAS Sharing antennas between the two access technologies
Macro eNB and RRH Timing and soft cost of structural and site preparations
Cell Edge Data Rates Working applications at the cell edge including video
Cell Site Routers & Aggregation Routers
Testing Cell Site Routers and Aggregation Routers with eNBs
B kh l U di t Eth t b kh l t ti f th t ffi iBackhaul Upgrading to Ethernet backhaul to satisfy the traffic increase
ePC/OSS Performance High quality operation of MME, SGW, PGW, HSS, and PCRF and OSS
SON Implementation Auto-integration of eNB and RF optimization
End User Quality Network Quality perceived by the end user
New Market Launch Launch new markets when an existing market is operational
IODT Interoperability between handset and infrastructure
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Spectrum Clearing Complete spectrum clearing in all AWS markets (DOD & Govt.)
Standard Compliance Different vendor interpretation & implementation of standards at bit level
Antenna Sharing Challanges
3 sector BTS vs. 6 sector BTS Single band AWS or PCS vs. Dual Band AWS and PCS SIMO antenna sharing is shown below (in-band)
Diplexers required required for out-of-band solution Extra cabling required and RX diversity gain balance No impact to TX side; Minimal impact to RX
MIMO antenna sharing Diplexers required required for out-of-band solution Filter/Combiners required for in-band solution
18
Backhaul Challenges
Time to market for our 4G network build-out Rapid rollout required adding T1s for eNB integrationp q g g Ethernet availability Add capacity post launch with T1s, fiber, or microwave
Cost Technology selected based lowest cost per Megabit at each cell site Carrier Ethernet MRC – cost per Megabit for 5, 10, 20, 50 Mbps Rollover of T1s to Ethernet
Cell site ro ters and aggregation ro tersPrice Per MB
Cell site routers and aggregation routers Combine CDMA + LTE backhaul
IP RAN Design VLANs and EVCs
5
VLANs and EVCs Traffic Shaping & policing QoS SLA
10
20
19
50
10050 500 1000
0 200 400 600 800 1000
Handset DevelopmentHandset Development
Multi-Band/Multi Mode CDMA/EVDO/LTE/Wi-Fi handset Multi-Band/Multi Mode CDMA/EVDO/LTE/Wi-Fi handset CDMA supported on 850, 1900(PCS) & 1700/2100(AWS1) bands CDMA Voice with LTE Data LTE t i iti t LTE system acquisition at power up Optimize battery life IODT and IOT with two infrastructure vendors
20
Handset IODT/IOTHandset IODT/IOT
PHY Layer IODT Point to point basic Layer 1 functional test between eNB and UE PHY Layer and some Layer 2 MAC functions are included Control channel parameters are set manually
LAB IODT PHY Layer and Full protocol stack testing Testing under integrated LTE Network configuration Single and multi-UE test executed using all elements of LTE network
including eNB, MME, SGW, PGW, PCRF, and OSS
Field IOT Operator’s network configuration with dynamic RF environment The RF test environment is changed to outdoor and terminal is in a
moving vehicle - including multipath, fading, and doppler shift
21
What’s Next
4G LTE: Build out remaining CDMA footprint Expand LTE market coverage through 2011 Expand handset portfolio with smartphones and Android handsets Deploy DAS, microcells, or picocells to fill in capacityp y p p y Refarm CDMA spectrum for LTE use Aggressively move down VoIP over LTE (VoLTE) path
Objectives Beyond LTE Reduce network cost (Lower cost per bit) Increase Spectral Efficiency (Data Rate or Number of Users or Quality)c ease Spect a c e cy ( ata ate o u be o Use s o Qua ty) Improve eNB scheduler performance using advanced techniques Automate intelligent system optimization using SON Improve system performance at low mobility
23
Deploy advanced signal processing techniques to enhance throughput at the cell edge
LTE Advanced
LTE Advanced – Up to 1 Gbps Provide peak data rates of 300 Mbps to 750 Mbps (2x2 MIMO) and 1 Gbps (4x4
MIMO) Heterogeneous Networks (macro, picocells, relays, femtocells) Multicarrier Aggregation from 40 MHz to 100 MHz Asymmetric links—aggregate more downlink capacitysy et c s agg egate o e do capac ty Enhanced multi-antenna transmission techniques
2424
The Road Ahead 4G LTE evolution is key to the
future low-cost, high-value offerings
4G LTE is catalyst to transform the entire networktransform the entire network
Wireless connectivity becomes pervasive and affordable for All
Future is any wireless appliance on any networkappliance on any network
Consumers Consumers
25
win!win!