OBSERVATIONS OF NETWORK

DEPLOYMENT TRENDS

Greg Tracey

KORDIA SOLUTIONS AUSTRALIA

WHO IS KORDIA?

Designing, Building and Managing Networks in Australia since 1983

Fixed and Wireless Public Telecom Networks, Corporate Networks & Safety of Life Networks

800 employees including over 250 engineers in 11 regional offices

Covering all of Australia

Experience with all technologies and vendors

Servicing sectors such as: telecommunications, utilities, government and public safety, print media, ICT and energy and natural resources sector.

WHAT WE DO:

ACMA licensing & EME compliance

Consulting services

Designing services

Engineering solutions and design

Network deployment & upgrade

Network commissioning and integration

Network operations and 24/7 monitoring

Technical field services and Network maintenance

Logistics and Warehousing

ICT managed services

Maritime services

WHAT WE WILL COVER

1. Data Explosion

2. Implications for operators;

Network build challenges

1.

DATA EXPLOSION

It is a Mobile world out there……

what is fuelling the fire?

• Interesting data from the Engineering and

Network deployment perspective

• Capacity and coverage will become more

critical in the 4G+ world as these consumption

trends continue to evolve

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Jun-12 2013*0

500

1,000

1,500

2,000

2,500

3,000

2,405

2,749

millions

Global numbers of individuals using the Internet, 2001 - June 2012

* EstimatedSource: ITU World Telecommunication /ICT Indicators database; The World Bank

2+ BILLION PEOPLE ONLINE

2003 2004 2005 2006 2007 2008 2009 2010 2011 Jun-12 2013*0

2,000

4,000

6,000

8,000

10,000

12,000

millions

Global internet population

* EstimatedSource: ITU World Telecommunication /ICT Indicators database; The World Bank

2/3 OF THE WORLD LEFT TO GO

• Significant change in consumer behaviour as mobile makes internet usage 24/7; and

• Mobile now accounts for 12% of global internet traffic

• In the past year smartphone sales have over taken overtook pc sales and will soon dwarf them.

2009 2010 2011 2012 2013E 2014E 2015E0

500

1,000

1,500

2,000

2,500

3,000

Evolution of the number of fixed and mobile Internet users worldwide (millions)

Fixed Mobile

SO THE FUTURE IS MOBILE

How is the data being consumed

in existing 4G markets?

Health In-formation

Online Retail Men's Mag-azine con-

tent

Electronic Payment

Gaming In-formation

Job Listings General Reference

Classifieds Austion Sites Family Enter-tainmnet

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

134%

87%

82%

80% 77%

74%

74%

72%

70%

69%

U.S. Top Mobile Categories by Growth in Audience (000)Dec 2010 vs Dec 2011

Dec-10 Dec-11

Tota

l M

obile A

udie

nce

(000)

Source: comScore MobieLens, 3 mon. avg. ending Dec-2011 vs Dec-2010

THEY CONSUME CONTENT…

Took picture of a product

Texted or called

friends/fam-ily about a

product

Sent picture of product ot

family/friends

Scanned a product barcode

Compared product prices

Found coupons or

deals

Found store location

Researched product fea-

tures

Checked product

availability

Purchased goods or

services (on-line)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

42.5%

34.9%32.7%

30.4%

22.4%

18.5% 18.1%

15.4%

10.2%

5.6%

Activities performed in retail store with smarthphone, U.S. Dec-2012

% p

erf

orm

ed s

hoppin

g a

cti

vit

y in s

tore

wit

h s

mart

phone

Source: comScore MobieLens, U.S., 3 mon. avg. ending Dec-2012

THEY USE SMARTPHONES TO MAKE BUYING DECISIONS

IN STORES.

52.4% of U.S. smartphone owners use their phone for shopping activities while in a retail

store

Books Movies TV Shows Magazines News Social Network-

ing

Downloaded Music

Sports Streaming Radio

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

29.0%

17.5% 17.5% 16.0%

60.5%

52.0%

28.0%24.5%

22.5%

Media content accessed through mobile device

Source: Nielsen Q1 2012 Mobile Connected Device Report

AND PEOPLE ARE CONSUMING A HUGE AMOUNT

OF CONTENT THROUGH MOBILE…

Jul'08 Sep'08

Apr'09 Jul'09 Jan'10 Apr'10 Jun'10 Sep'10

Oct'10 Jan'11 Jun'11 Jul'11 Oct'11 Mar'12

Jun'12 Sep'12

Jan'130

5

10

15

20

25

30

35

40

45

0.01 0.10 1.00 1.503.00

4.005.00

6.50 7.00

10.00

14.0015.00

18.00

25.00

30.00

35.00

40.00

Apps downloaded from the Apple App store worldwide

June 2008 - January 2013 (in billions)

APP DOWNLOADS ARE GROWING FRANTICALLY

WHAT DOES IT MEAN FOR

NETWORK DEPLOYMENT

ACTIVITIES IN AUSTRALIA

• The network owners face huge challenges

in funding growth.

• Australian Telco margins are improving,

but they are being pushed to the low end

of the value chain.

• The challenge is to innovate to reduce

cost while improving quality and reducing

risk.

There is an increasing level of

engineering challenges in the

design and build phases generated

by the new technologies available

Good news for deployment

New network equipment is reducing in

size, weight & cost

Improved installation kits and consistent

pre configuration is speeding up

installations

Reduced rate of dead on arrival

equipment

THE NOT SO GOOD NEWS….

OR RATHER THE CHALLENGES THAT WE FACE TODAY……

What is happening out there……………………….

The bulk of the upgrade work in on existing sites

Limitations in existing cabin or rack space, power and air

conditioning cause most of the complication associated

with adds, moves and changes and the is significantly

more of everything at site………antennas, combiner

systems, feeders, tails, connectors, bird proofing and

waterproofing

Towers being upgraded to carry the extra weight of

antenna systems such as LTE and Head frames, tower

and footings reinforcement required

Comprehensive Health Safety and Environmental

management required for all telecommunications

deployment projects

More EME challenges and more radio frequencies to

license

Resource challenges:

Getting the right technical resources available,

in the right place to carry out the complex

upgrades, under the right commercial

arrangements

There is increase in the work happening

outside metro areas

Aside from the high profile network upgrades….

Network technology upgrades are not the only

game in town there is on going site and facility

upgrade projects to improve reliability - such

as new power supply, backup systems and air-

conditioning systems

What is going on in other developed markets that

developed 4G networks earlier:

• Spectrum usage is the hot topic

• Backhaul is still a significant challenge – there

is no silver bullet

• Small Cell deployment is a strategic

differentiator

Away from the commercial mobile

networks:

Utilities and oil & gas companies deploying wireless

broadband:

Required as mission critical to operations

Required to extend the office to the field

Self build necessary to guarantee high availability and

remote coverage

Taking advantage of the M2M evolution

Deploying WiFi, WiMAX and LTE private networks

Preference towards Tetra & P25 in the ENR sector

Ideally utilising fibre, but mostly deploying Microwave

radio links for Backhaul

Developing broad Telemetry networks

WHAT ARE THEY DOING IN BROAD TERMS

THANK YOU