Opportunities and Challenges Driving C-RAN Forward Monday October 17th. 2016
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1 Opportunities and Challenges Driving C-RAN Forward Monday October 17th Prepared by Sue Rudd Director Service Provider Analysis Oct 17th.2016 Copyright 2016 Strategy Analytics, Inc.. 1
2 Opportunities and Challenges Driving C-RAN Forward Evolution of C-RAN C-RAN Drivers Old and New Configurations of Centralised & Cloud-RAN Indoor Evolution Virtualization Role of Virtualisation From Virtualized RAN to Service Awareness Multi-Homing could Virtualize Mobile Roaming Making the Business Case How can Operators make the Business case for C-RAN vs. Centralised Solns. Developing realistic expectations for the technical delivery of C-RAN Copyright 2016 Strategy Analytics, Inc. 2
3 Centralised RAN vs. Cloud RAN Centralised RAN Early C-RAN Remoted Radio Heads (RRHs) & Antennas over CPRI connection to shared Baseband Unit (BBU). Centralised RAN ~ BaseBand Unit (BBU) Hotel BBUs on dedicated hardware are Centralised at Central Site e.g. with Macro Cell or Aggregation Router site. Solution can Reduce Cell site Cost especially for early deployment of New Radio Technology but little gain and flexibility for multi-cell coordination/comp etc: Saving on cell sites, power consumption, civil works Gains from inter-cell collaboration.but Challenge is FrontHaul Deployment Source: Strategy Analytics Copyright 2016 Strategy Analytics, Inc. 3
4 CMCC in 2009 proposed Centralised RAN: C-RAN as the revolutionary evolution towards 5G Soft BS in C-RAN virtualisation/ cloudisation Efficient fronthaul solution is required to enable C-RAN large scale deployment Source CMCC China Mobile s View on Next Generation Fronthaul Interface Copyright 2016 Strategy Analytics, Inc. 4
5 In 2013 ETSI is focused on Centralised RAN (C-RAN) first ETSI NFV LTE RAN Architecture Evolution By Centralised RAN BaseBand Unit (BBU) pool ETSI: Network Functions Virtualisation Use Cases Use Case #6 (Section10) Virtualisation of the Mobile Base Station 29 th. September 2015 Copyright 2015 Strategy Analytics, Inc.. Source: ETSI NFV Uses Cases
6 China Mobile 2015 C-RAN project: IT hardware & Virtualized Software Platform Fronthaul still a bottleneck for vran deployment, even though it evolving from CPRI Fiber to Ethernet. In 2015 China Mobile was actively working on Centralized Virtualized RAN architecture. IT hardware and a Virtualized software platform to achieve: Centralized control/processing Collaborative radio Real-time cloud Clean system target China Mobile s C-RAN architecture Source: China Mobile Copyright 2016 Strategy Analytics, Inc.. 6
7 Korea 2015: SK Telecom (SKT) Cloud RAN (C-RAN): Virtualized, Service Oriented Flexible LTE/LTE-A network vran architecture on general purpose processor virtualized hardware Intelligent engines with open APIs & Analytics-based optimization Open fronthaul interface to create SKT Service Aware RAN Combines Capabilities of mobile communications and IT Service engines & Content caching at RAN level enable new localized or latency sensitive services incl. Zonebased Advertisement, Augmented Reality/Gaming with low latency requirements, Premium Content Delivery & Analytics-based Network Optimization. SKT s RAN Architecture Evolution Source: SK Telecom Copyright 2016 Strategy Analytics, Inc.. 7
8 SK Telecom and Nokia Implemented World s First Cloud-based Radio Access Network (Sept. 2016) World s First Cloud-based Radio Access Network Two companies successfully implement World s first Next-Gen. Cloud based, Vi rtual Base Station Uses Virtualized Functions to deliver new Network Scalability And Elasticity, enhancing Quality of Service and Network Stability with features such as Functional Split and Automatic Recovery of Errors Software Based Configuration and Open Architecture enable innovative network functions to be developed with SMEs. Successful implementation of the Virtualized Core Network and Virtualized Base Station lays foundation for evolution towards 5G network structure Source: Nokia & SK Telecom Copyright 2016 Strategy Analytics, Inc.. 8
9 Nokia Evolution of Centralised Architecture Source: Nokia & SK Telecom Copyright 2016 Strategy Analytics, Inc. 9
10 Centralised RAN vs. Cloud RAN (Cont.) Cloud RAN All Upper Layer protocols Moved to Cloud Platform Baseband Processing IT architecture based: Real Software Defined Radio (SDR) Hardware commodity Software independent from hardware Virtualization of User Plane(UP)layers or Control Plane(CP) Service and Content Aware Radio Access Network (RAN) Content cache at network edge Service Awareness at Base Station Configurations Vary Depending on the location of the Real-Time functions (L1 functions): Cloud D-RAN (distributed RAN) or Cloud C-RAN (centralized RAN) Centralized and Cloudified upper layer functions enable multi-cell/multi-technology coordination over large area. Copyright 2016 Strategy Analytics, Inc. 10
11 Stages of Evolution of C-RAN - Telecom Italia & Timing Phase 0: Distributed BBU (Std. Option Today) Phase 1: BBU Centralization and Pooling (Centralized & Cloud)(New Networks Now) RAN) Phase 2: RAN Virtualization (Emerging Approach) Different functional partitioning between BBU & RRU enable bandwidth saving over the Front- Haul (FH) and lead to different virtualization solutions Source: The path toward C-RAN and V-RAN Copyright 2016 Strategy Analytics, Inc. Marco Caretti, Telecom Italia Engineering & TiLAB 11
12 C-RAN like Architecture Emerging Indoors Easy installation, interference management, integration of indoor and outdoor Ericsson Radio Dot Huawei Lampsite CommScope (Airvana) Copyright 2016 Strategy Analytics, Inc.. 12
13 New Alternatives to DAS: Multivendor Small Cells and C-RAN trying capture Benefits of DAS Commscope s OneCell solution utilizes a Baseband Controller and multiple Radio Points to form a single super-cell Only Needs Coax W-LAN Connectivity (Like Passive DAS) Creates a single super-cell, eliminating inter-cell borders, handovers and interference issues (Similar to DAS) Cloud RAN Distributes Base Stations (enodebs) and RRHs/BBUs as well Antennas Standalone Small Cell OneCell Source: Commscope Copyright 2016 Strategy Analytics, Inc.. 13
14 Impact of Virtualisation of Radio Access Network (vran) Virtualisation on Radio Access Network (RAN) In Broadest meaning is the pooling of resources of a similar type both logically and physically Virtualisation enables resources to be reused dynamically both to improve capacity utilisation and simplify operations - both of which directly reduce the Mobile Network Operator (MNO) Total Cost of Operations (TCO) per Gigabyte (GB) and help MNOs meet the rapid growth in traffic. Early focus in Network Functions Virtualisation (NFV) is on the Data Centre and virtualisation of the Core Network. Coming Faster than many thought. In 2015 many said that virtualisation of the RAN (vran) - whether through Centralised RAN, Cloud RAN (C-RAN), or dynamic power control and frequency assignment with Self Organising Networks (SON) was years away. (See the survey and workshop Strategy Analytics did in Copyright 2016 Strategy Analytics, Inc. 14
15 C-RAN & Virtual RAN (vran) Timing - Trials & Deployment Trials have led to Deployment, Diverse RAN Configurations and lower Costs Demonstrations at MWC 2015 by Telefonica with Alcatel Lucent (now Nokia) and Telecom Italia (TIM) tested Virtual Radio Access Network (vran) technology in February 2016 Trials by China Mobile and SKT have turned into Deployments Many Now Positioned as Pre-cursors to 5G RAN architecture New Operators are now committing to C-RAN deployment including Verizon and Sprint in the US Vendors Nokia announced its commercial Airscale solution on the path to virtualised 4G/5G Deployed 4G C-RAN for TD-LTE at large events with China Mobile. Ericsson A Split Can Make a Difference (UP and CP, RU &DU) Now offering pre-sg Plug-Ins for Massive MIMO, Multi-User MIMO and RAN Virtualization. Huawei Centralize What Can, Distribute What Must offers multiple commercial configurations of LampSite that blur the boundary between small cells and C-RAN. Copyright 2016 Strategy Analytics, Inc. 15
16 Multiple vran Configurations & Cost Savings Parallel discussions of alternate RAN functional splits by EU FP7 Project ijoin and Small Cell Forum Creating the range of flexible configuration options needed to deliver vran cost effectively for multiple Uses Cases in Dense Urban, Remote Rural and Shared Operator locations. Innovative new vendors adding flexible or cost effective RAN configuration options from vendors like Blue Danube, Cisco, Fujitsu, Hitachi-CTA, Intel, NEC and Parallel Wireless as well as Cavium and Radisys. vran Cost Savings Some of the biggest breakthroughs for improved TCO/GB come from sharing Baseband radio Units (BBUs) at an adjacent or remote aggregation site for: Dynamic use of Spectrum Remote Radio Heads (RRHs) MIMO Steerable Antennas etc. New fronthaul options that leverage both CPRI and emerging alternatives: Shared Ethernet over Fibre GB Microwave Copyright 2016 Strategy Analytics, Inc. 16
17 Virtualization of Services at the Edge and Mobile Edge Computing (MEC) Virtualisation of Services Mobile Edge Computing Alcatel Lucent Nokia & Telefonica vran showcase in MWC 2015 Proximate and Contextualised Services Providing Differentiated User Experience Source: SK Telecom Source: Nokia (Alcatel Lucent) Copyright 2016 Strategy Analytics, Inc. 17
18 New Approach to Multi-Homing and Implications for Mobility Mobility is just dynamic multi-homing with expected failures No need for tunnels or handovers trigger routing updates In Next Gen. Mobility Addresses are just temporary synonyms and UE can be connected to Dual RANs P-GW P-GW Serving Area 1 S-GW S-GW Serving Area 2 S-GW S-GW BS BS BS BS BS BS BS BS BS BS UE UE UE UE UE UE UE UE UE UE UE Example: Mobility with Handoff that allows Dual Connectivity Naming, addressing, mobility in RINA 18
19 Making the Business Case for C-RAN How can Operators create the Business case for C-RAN vs. Centralised Solns.? C-RAN Benefits v-ran Benefits Potential Showstoppers Fronthaul Cost: CPRI, Shared Fiber, Carrier Ethernet, Fixed Wireless Current optical links between BBU and RRU are realized with proprietary interfaces: CPRI and OBSAI. For CPRI the typical throughput to link a LTE RRU 20 MHz MIMO 2x2 is 2.5 Gbps More efficient solutions are needed to support higher order MIMO, Carrier Aggregation >2 carriers, and HetNet deployments. Even today with multi-sectors/multi-rat configurations transport solutions must be considered Realistic Timeline C-RAN Challenges to be Overcome Copyright 2016 Strategy Analytics, Inc. 19
20 C-RAN Business Benefits CAPEX/OPEX savings: Lower costs for Space when Base Band Units (BBUs) are concentrated to the central office. Lower Energy Consumption & Reduced Air Conditioning 50%-70% OPEX reduction and 15%-47% CAPEX reduction based on estimates [NGM Alliance etc.] Dynamic Resource Allocation and Traffic Load Balancing Easier Management and Operation Functionally simpler for new sites and less effort for site installation and management Better performance based on Tx/Rx coordination among the RRUs: Multi-site Carrier Aggregation (sites that share co-located BBUs) in case the operator has deployed LTE in multiple bands Efficient mobility management algorithms High number of cells that can be controlled by the BaseBand Higher capacity gains Virtual RAN SDR makes RAN Upgrade Easier & Simpler Virtual RAN Architecture allows lower HW/SW cost New Opportunities Market Segmentation and Competition (Combined with SON) Copyright 2016 Strategy Analytics, Inc. 20
21 vran Business Benefits CAPEX savings: Pooling Gain (Up to 50% Capacity) Site Simplification COTS BaseBand Hardware OPEX and Energy Reduced Power Consumption Site Rental Reduction vran introduces Open Environment to facilitate the development of new features as Self Organizing Networks (SON) and Mobile Edge Computing (MEC) evolve Copyright 2016 Strategy Analytics, Inc. 21
22 No. 1 Barrier to Delivery of C-RAN: Fronthaul Costs/Throughput Challenges to be Overcome: Fronthaul is a major challenge for C-RAN TD-LTE Deployment Efficient fronthaul solution is required to enable C-RAN large scale deployment Source CMCC China Mobile s View on Next Generation Fronthaul Interface Copyright 2016 Strategy Analytics, Inc. 22
23 Time to Rethink Fronthaul for 5G evolution without CPRI Source: Charting the path to RAN Virtualization Umberto Ferrero, Telecom Italia Engineering & TILab Copyright 2016 Strategy Analytics, Inc. 23
24 Conference Will Help Attendees to Develop Timeline for C-RAN Need to Develop: Realistic Expectations for the Technical Delivery of C-RAN What s Possible? When? At What Cost? What can be made Virtual? Timeline for C-RAN Deployment for Densification, Small Cells & Indoors for each of : LTE FDD TD LTE 5G Copyright 2016 Strategy Analytics, Inc. 24
25 Strategy Analytics Networking Team Contacts Phil Kendall Sue Rudd Susan Welsh de Grimaldo Guang Yang Copyright 2016 Strategy Analytics, Inc.. 25
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