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Fi t 4G LTE N t kL h i First 4G LTE Network Launch in the Americas: Challenges, Opportunities, and Lessons learned Ken Geisheimer Ken Geisheimer CTO Organization November 16 2010 November 16, 2010

Fi tFirst 4G LTE N t k L h4G LTE Network Launch in the … · the Americas: Challenges, Opportunities, and Lessons learned Ken GeisheimerKen Geisheimer CTO Organization November 16

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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.

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MetroPCS is a service mark of MetroPCS Wireless, Inc. Other service marks or trademarks made herein are the property of their respective owners.

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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

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• 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

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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

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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”

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LTE – WHY FIRST? WHY NOW?WHY NOW?

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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

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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

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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

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Global Economies of Scale Future with LTE Advanced

DEPLOYMENT CHALLANGES

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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

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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

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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

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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

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WHAT’S NEXT?

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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

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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

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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

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win!win!

Thank You

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