Lessons learned

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1 TODAY Q&A for HW1 About feedback on HW1 Country case: Sweden 2000 and Lessons learned What differences can we observe in Sweden Jan Markendahl November 07, 2016 janmar@kth.se 2 1

2 Aspects to discuss Service mix and traffic mix access technologies Coverage and capacity Investments Network sharing Spectrum Cost of radio equipment Number of sites 3 Spectrum, capacity and cost High bandwidth means high capacity per site, i.e less number of base s Markendahl 7 Oct Wireless Infrasctructure economics 4 2

3 Cost structure of radio access networks It is not only costs for the base station equipment (the radio) but also for the transmission & sites 1,00 0,80 0,60 Backhaul transmission buildout, installation + lease equipment, O&M, power From Klas Johansson PhD thesis ,40 0,20 0,00 Macro Micro Pico Pico WLAN/Femto Markendahl 7 Oct Wireless Infrasctructure economics 5 Capacity, cost and cost structure ~ 10 Mbps and ~ 20 k ~100k Total cost for new site ~ 110k And Assuming 3 sector site 20 MHz of bandwidth and cell average spectral efficiency 0,7 bps per Hz (HSPA) 1,7 bps per Hz (LTE) Cost for upgrading an existing site ~ 30k HSPA year 2008 LTE year 2010 LTE year MHz 6 3

4 Service and traffic mix 2000 Voice and sms > 99% of the traffic is voice 2010 Voice, SMS and MMS + mobile data Mobile services for enterprizes, craftmen > 90% of the traffic is data 7 GSM coverage Tele2 - Telenor - Telia ~70% covered area ~65% covered area ~90% covered area 8 4

5 3G Coverage Turbo 3G, Turbo 3G+ (HSPA) Tele 2 & Telia Telenor & Tre 9 Density of base s Deployment for low or medium data rates Coverage for high data rates with existing sites Deployment needed for high data rates 10 5

6 Bit rates, coverage and carrier frequency Achievable bit rates lower carrier frequencies higher carrier frequencies Base Distance from base station 11 3G Coverage Turbo 3G, Turbo 3G+ (HSPA) Tele 2 & Telia Telenor & Tre 12 6

7 Network sharing in Sweden 3 UMTS G Infrastructure (3GIS) UMTS 2100 GSM 900 Telenor GSM 1800 UMTS 2100 ** National roaming until 2008 ** Telia Svenska UMTS Nät AB (SUNAB) Tele2 GSM 900 GSM 1800 UMTS 2100 GSM 900 GSM Many partnerships and joint ventures Telia Three SUNAB 3G joint venture 3GIS 3G joint venture Tele2 Telenor Net4Mobility 4G joint venture 14 7

8 Network sharing - Why cooperation? Drivers for network sharing To reduce network costs To get access to spectrum license To get access to the competence and network of an established operator Aggregated spectrum means that operators can offer more, i.e. higher bit rates Anti-drivers for network sharing Less independence Decision making takes more time and effort 15 Investments in mobile networks in Sweden (Million SEK) 16 8

9 Cost of radio equipment is decreasing rapidly 512 MSEK (50 MEuro) ~6 KEuro per base station ~ 750 MSEK 17 Capacity, cost and cost structure ~ 10 Mbps and ~ 20 k ~100k Total cost for new site ~ 110k And Assuming 3 sector site 20 MHz of bandwidth and cell average spectral efficiency 0,7 bps per Hz (HSPA) 1,7 bps per Hz (LTE) Cost for upgrading an existing site ~ 30k HSPA year 2008 LTE year 2010 LTE year MHz 18 9

10 Cost structure, bandwidth and capacity Total cost for new site ~ 200k ~ 40 Mbps and Total cost for new site ~ 110k And Assuming 3 sector site 20 MHz of bandwidth and cell average spectral efficiency 0,7 bps per Hz (HSPA) 1,7 bps per Hz (LTE) Cost for upgrading an existing site ~ 30k HSPA year 2008 LTE year 2010 LTE year MHz Markendahl 7 Oct Wireless Infrasctructure economics 19 Capacity, cost and cost structure Total cost for new site ~ 200k Total cost for new site ~ 110k Assuming 3 sector site 20 MHz of bandwidth and cell average spectral efficiency 0,7 bps per Hz (HSPA) 1,7 bps per Hz (LTE) ~ 40 Mbps and And Cost for upgrading an existing site ~ 30k HSPA year 2008 LTE year 2010 LTE year MHz 20 MHz 20 MHz 20 10

11 Base location in urban areas from PTS mitter map web page, December 2009 Downtown Stockholm Kista Industry Area 21 Examples of Base station densities (Urban areas in Sweden ) Name and type of area Total density of sites Typical densities for operators Residential area in Uppsala ~6 per km per km 2 Residential area Akalla ~ 14 per km per km 2 Central part of Uppsala ~ 20 per km per km 2 Industry area Kista ~ 50 per km per km 2 Central part of Stockholm ~ 130 per km per km

12 Compare network sharing year 2000 and year Many new base s were needed capacity relatively expensive Capacity demand was relatively low No shortage of spectrum 2010 Many base s exist Cost of radio capacity has decrease dramatically Capacity demand is increasing Amount of spectrum is important 23 Question to you What had been the case if 800 MHz had been available? What aspects shoudl be considered 24 12

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