5G First to Market. Nigel D Rozario Ericsson Australia. PA Commercial in confidence Page 1

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1 5G First to Market Nigel D Rozario Ericsson Australia PA Commercial in confidence Page 1

2 Agenda Why 5G? Architecture Spectrum & Deployment Fixed Wireless Access Performance PA Commercial in confidence Page 2

Ericsson Mobility Report June 2018 https://www.ericsson.

3 Ericsson Mobility Report June PA Commercial in confidence Page 3

Mobile traffic growth Q1 2018 Traffic growth is driven both by the rising number of smartphone subscriptions and increasing average data volume per subscription, fueled primarily by more viewing of

4 Mobile traffic growth Q Traffic growth is driven both by the rising number of smartphone subscriptions and increasing average data volume per subscription, fueled primarily by more viewing of video content at increasingly higher resolutions. 54% Mobile data traffic grew in Q year-on-year. In 2017, the global traffic growth was noticeably boosted above its long-term trend line by free data traffic offers in India PA Commercial in confidence Page 4

5 Outlook: Global mobile data traffic Exabytes per month In 2023, 20 percent of mobile data traffic will be carried by 5G networks. x8 Total mobile data traffic is expected to increase by nearly eight times PA Commercial in confidence Page 5

The figures refer to population coverage of each technology.

6 World population coverage by technology In 2023, more than 20 percent of the world s population will be covered by 5G. The figures refer to population coverage of each technology. The ability to utilize the technology is subject to factors such as access to devices and subscriptions PA Commercial in confidence Page 6

7 5G device availability (3GPP) All new mobile standards go through the process of establishing a device ecosystem with interoperability first on chipsets, then on devices. The first 3GPP smartphones supporting 5G are expected in early PA Commercial in confidence Page 7

8 It is all about use case evolution Current On the road to 5G 5G experience Enhanced mobile broadband Screens everywhere New tools Immersive experience Automotive On demand information Real-time information vehicle to vehicle Autonomous control Manufacturing Process automation Flow management and remote supervision Cloud robotics and remote control Energy & utilities Metering and smart grid Resource management and automation Machine intelligence and real-time control Healthcare Connected doctors and patients Monitoring and medication e-care Remote operations PA Commercial in confidence Page 8

9 It is all about use case evolution with supporting technologies Current On the road to 5G 5G experience Enhanced mobile broadband Screens everywhere New tools Immersive experience Automotive On demand information Real-time information vehicle to vehicle Autonomous control Manufacturing Process automation Flow management and remote supervision Cloud robotics and remote control Energy & utilities Metering and smart grid Resource management and automation Machine intelligence and real-time control Healthcare Connected doctors and patients Monitoring and medication e-care Remote operations Technologies Multi-standard network Cat-M1/NB-IoT Cloud optimized functions VNF orchestration Gigabit LTE (TDD, FDD, LAA) Massive MIMO Network slicing Dynamic service orchestration Predictive analytics 5G NR Virtualized RAN Federated network Distributed cloud Real-time machine learning/ai PA Commercial in confidence Page 9

10 5G global plan Industrial Use Case Studies & Pilots 5G Radio Testbed FT s & Radio Prototypes E2E Network & Precommercial Trials 5G Commercial Launches IMT-2020 ITU Requirements Proposals Specifications 3GPP R14 5G Study Item R16 NR Ph.2 R15 NR Ph.1 R15 ext. Early Drop Op.3 & 2 Op.4 & 7 Early Ph.2 Deployments Early Ph.1 Deployments Early Drop Deployments 5G NR NSA Completion 5G NR SA Completion NSA Op.3 ASN.1 SA & NSA ASN.1 Full IMT PA Commercial in confidence Page 10

11 Architecture

12 Drivers Commonly Associated with RAN Architectures Coordination of radio resources Centralization vs. distribution (de-centralization) Pooling of resources TCO, Capex, Opex Interconnectivity and transport efficiency Spectral efficiency and air interface performance PA Commercial in confidence Page 12

13 5G transport dimensioning examples Radio gnb (v)epc 5G D-RAN (e)cpri 10-25G/sector < 75µs S1/NG 1-10G < 10ms Radio gnb (v)epc 5G C-RAN (e)cpri 10-25G/sector < 75µs S1/NG 10-40G < 10ms Radio BPF PPF/RCF (v)epc embb with V-RAN (e)cpri 10-25G/sector < 75µs F1 1-10G < 5ms S1/NG 10-40G < 10ms Radio BPF PPF/RCF (v)epc C-MTC with V-RAN (e)cpri < 50µs (indicative) All latency numbers in the slide are one way Throughput is related to carrier bw. and no. of MIMO layers PA Commercial in confidence Page 13 Antenna Hub Central Office Switching/Aggr. Primary

14 Simplified network topology RAN node function BPF: Baseband processing function PPF: Packet processing function RCF: Radio control function Critical IoT BPF PPF RCF BPF RCF PPF UPF CCF SDM CCF UPF Core node function CCF: Core control function embb BPF RCF PPF UPF RCF PPF UPF: User plane function BPF SDM: Subscriber data management Massive IoT BPF Nodes suitable for virtualization Sites Antenna Edge Core PA Commercial in confidence Page 14

15 Network Evolution Example App Core Control Internet RAN vepg Radio Site PA Commercial in confidence Page 15 Mobile Edge Core Network Center

16 Network Evolution Example Core Control Internet App RAN vepg Radio Site PA Commercial in confidence Page 16 Mobile Edge Core Network Center

17 Network Evolution Example Core Control Internet App vepg vran vepg Radio Site PA Commercial in confidence Page 17 Mobile Edge Core Network Center

18 Network Evolution Example Core Control Internet App vepg vran vepg Radio Site PA Commercial in confidence Page 18 Mobile Edge Core Network Center

19 Network Evolution Example Core Control Internet App RAN vran vepg vepg Radio Site PA Commercial in confidence Page 19 Mobile Edge Core Network Center

20 Network Evolution Example Core Control Internet App RAN vran vepg Radio Site PA Commercial in confidence Page 20 Mobile Edge Core Network Center

21 5G UE-RAN-CN DC options 5G EPC 3GPP target Q4 17 S1-based 5GC 3GPP target Q2 18 N2/N3 (new interface) Option 1 Option 3 EN-DC Option 5 Option 2 Option 7 NGEN-DC Option 4 NE-DC LTE NR LTE NR PA Commercial in confidence Page 21

22 5G Architectures NSA (RAN split LTE anchor) 5G EPC (vepc) SA 5G GC (NGCN) Data Ctrl RAN RAN Control plane over LTE Data switch/agg. LTE/NR Control plane over NR Data switch/agg. LTE/NR Tight interworking with LTE Evolved CN Fastest TTM Independent overlay Totally new CN architecture Highest performance potential PA Commercial in confidence Page 22

23 Spectrum & Deployment

24 Spectrum availability 1. Initial 5G deployments likely to be nonstandalone configurations in mid bands High bands (24 GHz 40 GHz) New 2. Combination of 4G and 5G is expected as traffic increases and new use cases mature 3. Standalone 5G deployment will gradually get access to 4G spectrum in mid and low bands G 4G 3G 2G Mid bands (3.5G Hz 6 GHz) New Mid bands (1GHz 2.6 GHz) Legacy Low bands (sub-1 GHz) New/Legacy PA Commercial in confidence Page 24

25 Spectrum trade-off There are major fundamental trade-offs between capacity, coverage, latency, reliability and spectral efficiency in a wireless network. Due to these fundamental limits, if one metric is optimized for improvement, this may result in degradation of another metric. High bands (24 GHz 40 GHz) New Mid bands II (3.5 GHz 6 GHz) New Mid bands I (1 GHz 2.6 GHz) Legacy Low bands (Sub 1 GHz) New/legacy <1 km 8 km 15 km 30 km >100 MHz 50 MHz 20 MHz 10 MHz 1 ms 10 ms High capacity hotspot / dense urban Moderate capacity Wide area / outside-in coverage Source: IEEE A survey on Low latency towards %G RAN, Core network and Cashing solutions. Coverage* Bandwidth* Latency* *) See notes PA Commercial in confidence Page 25

26 Prepare the network today for the 5G introduction 1. Reuse existing network assets 2. Focus technology shift when and where you need Platform for smooth technology shift Gigabit LTE 5G Plug-Ins M-IoT Ericsson Radio System VoLTE 3. Continuous business development Key functionalities for 5G introduction Add new spectrum Ultra lean desing Next step in antenna technology 5G RAN software Low latency PA Commercial in confidence Page 26

Different deployment types in the same network 1 Non-standalone in low-mid bands 4G and 5G in mid-low bands, same coverage area Both technologies share the same radio site, connected to the existing

27 Different deployment types in the same network 1 Non-standalone in low-mid bands 4G and 5G in mid-low bands, same coverage area Both technologies share the same radio site, connected to the existing Core network Example of use cases: embb, FWA in wide areas 2 Non-standalone in mid-high bands 4G in low bands and 5G in high-bands, different coverage areas 5G radios may be deployed in new site as needed Both technologies are connected to the existing Core network Example of use cases: embb, FWA in selected areas 4G in low-mid bands 5G low-mid bands 5G in high bands 3 Standalone 5G Initial 5G deployments in low bands, benefit from larger coverage areas New 5G radio sites, connected to the new 5G Core Example of use cases: embb, FWA, Industrial IoT PA Commercial in confidence Page 27

28 Fixed Wireless Access

29 Definition of Fixed Wireless Access Mobile broadband Fixed Wireless Access Early offerings best effort Focus Fixed Wireless Access Focused large-scale offering Wi-Fi Wi-Fi or Wi-Fi Wi-Fi Wi-Fi or Standard MBB pricing, device logistics and management. Includes tethering to Wi-Fi only devices. Nomadic indoor device (CPE) with MBB-like device handling. May involve special price plan. 1. Managed device (CPE), indoor or outdoor 2. Special fixed-inspired price plan 3. Subscription tied to known location PA Commercial in confidence Page 29

30 Examples of government connectivity initiatives USA Connect America fund Europe Connecting Europe broadband fund Norway Haga model Australia National broadband network PA Commercial in confidence Page 30

31 Fixed Wireless Access Example Networks /8/att-expands-fixed-wireless-5g-trials Ericsson Internal

32 Drivers influencing FWA market Operator strategy Network developer Service enabler Service creator Market dynamics Willingness to pay Offering preference and positioning, likely uptake Population density FWA market attractiveness Competitive environment and substitutes Competitive offerings Availability of fiber Availability of copper Access to linear TV Government funding Operator network and spectrum Sites Backhaul capacity Spectrum availability PA Commercial in confidence Page 32

Different types of CPE Indoor CPE Outdoor CPE Combined LTE/NR modem

for VoIP LTE/NR modem Directional antenna PoE Ethernet Separate

modem & baseband Router functionality Power LTE/NR modem & baseband

33 Different types of CPE Indoor CPE Outdoor CPE Combined LTE/NR modem including residential gateway Omni antenna Wi-Fi modem SIP client for VoIP LTE/NR modem Directional antenna PoE Ethernet Separate indoor residential gateway Wi-Fi modem SIP client for VoIP LTE/NR modem & baseband Router functionality Power LTE/NR modem & baseband Router functionality Power FWA HANDBOOK PA6 Ericsson Internal

34 Performance

35 Performance NR & LTE All deployments 10-30% higher peak spectral efficiency 1 Up to 3x cell-edge rates at low load 2 Faster response times (URLLC) Increased energy efficiency With massive MIMO Improved MU-MIMO performance Beamformed control channels for coverage Better TDD feedback NR In mmw bands Optimized numerology Support for analogue BF NR LTE NR LTE No LTE PA Commercial in confidence Page 35 1 Full utilization requires NR optimized radio 2 On a 2/4Tx baseline. Less for massive MIMO

36 Peak data rate [Mbps] Normalized SE FDD Peak Rates (DL) NR has 12-20% higher peak spectral efficiency due to Higher spectrum utilization More flexible overhead (control channels, reference symbols) Peak Data Rate (2x2) LTE NR % 20.00% NR spectral efficiency gain over LTE MHz 20 MHz 40 MHz PA Commercial in confidence Page % 10.00% 5.00% 0.00% 10 MHz 20 MHz 40 MHz 2x2 antenna configuration for all systems Overhead dimensioned for single user

5GHz 8x8 base station antenna array NR 200MHz at 26GHz 16x16 base station

37 London Macro network in London, ~400m ISD Digital 3D map Raytracing propagation model NR 100MHz TDD at 3.5GHz 8x8 base station antenna array NR 200MHz at 26GHz 16x16 base station antenna array LTE 10/40MHz FDD at 800/2600MHz 2T/2R base station antenna What can we do with 5G? Ericsson AB Page 37 (26)

38 London capacity NR 3.5GHz provides 8x capacity gain over LTE at MHz NR uses 1.5x more spectrum (DL) 5x more efficient NR at 26GHz further improves capacity by ~30% How large buckets? 8 000Mbps/km 2 and subs/km 2 0.8Mbps/subscriber during busy hour ~ 133GB/month (with 8% of daily traffic during busy hour) 8x 1.3x What can we do with 5G? Ericsson AB Page 38 (26)

Real-world trial example the mmwave small cells part American suburb area, two three-sector sites Measurement results Loc. 1 2 3 4 5 6 7 8 9 10 11 12 Dis.

sensitive to foliage FWA customer premises RGW CPE CPRI Base band 10G Ethernet Distr.

39 Real-world trial example the mmwave small cells part American suburb area, two three-sector sites Measurement results Loc Dis. (ft) DL - Tput (Mbps) NA Findings: 5G data rate can be achieved at 1,000 feet (300 meters) Throughput sensitive to foliage FWA customer premises RGW CPE CPRI Base band 10G Ethernet Distr. cloud CG- NAT Outdoor CPE 5G NR 28 GHz Max 3 Gbps (DL+UL) 5G A-AIR, radio+ built-in array antennas 28 GHz, 400 MHz 5G CRAN baseband Max 10 Gbps 1 3 sectors per BBU 5G VRAN 5G core user plane Apps and servers 5G core control plane Security and firewalls Segment: Wireless fiber Real world trial example FWA HANDBOOK Rev C Commercial in confidence

40 Summary 5G is coming.faster than expected! Being first to market is key to get a lead on competitors New challenges with 5G New opportunities with 5G PA Commercial in confidence Page 40

5G Technology update. Dr. David Hammarwall Head of Product Line 5G, Ericsson

5G Technology update. Dr. David Hammarwall Head of Product Line 5G, Ericsson 5G Technology update Dr. David Hammarwall Head of Product Line 5G, Ericsson 5g Vision One network supporting multiple use cases and industries Massive MTC Critical MTC Enhanced MBB Fixed Wireless Access