Broadband Wireless Deployment Approach. Indian Perspective.
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1 20.March 2007 Broadband Wireless Deployment Approach Indian Perspective Exploring Mobile Broadband Opportunities for India India Telecommunications Kundan Das Mail- Phone HUAWEI TECHNOLOGIES Co., Ltd. Page 1 HUAWEI TECHNOLOGIES CO., LTD.
2 Understanding of India Telecom Market Indian Telecom Market remains the High on Growth Track Telecom Market Understanding Wireless remains the main growth driver in India with a subscriber base reaching around 200 Million. GSM and CDMA are the main stream commercial technologies. Both Voice and VAS are growing, however blended ARPU is falling. Broadband Market Analysis Broadband is offered over wireline, but deployments are falling behind growth targets. DSL and Cable remain the main stream broadband technologies. Operators are seriously considering wireless broadband options. Technology Adoption Analysis Copper, DSL and Cable modems are driving broadband growth. Next Gen technologies like VDSL and DOCSIS 3.0 are being considered. 3G & BWA licenses are much awaited for mobile operators to begin offering broadband services. Indian Market needs to boost its Broadband Penetration in the same manner it s seen success with the Mobile Market. HUAWEI TECHNOLOGIES Co., Ltd. Page 2
3 Understanding of Broadband: India Perspective Broadband Defined as connectivity >=256 kbps Subscriber in Millions QE Mar 2006 QE Jun 2006 Services Growth QE Sept 2006 QE Dec 2006 QE Mar 2007 Wirelss Wireline Internet Wirelss Internet Broadband There are 25 broadband service providers contributing to the 2.34 million broadband user base. 11 service providers hold more than 90% of the overall broadband market share DSL emerged as the single technology choice for broadband with more than 1.95 million subs, followed by cable modems. Overall teledensity remains at 18%, ending March 2007 Wireline continues its negative growth. Internet growth continues to fall bellow expectations Broadband growth is with migration of Copper line. Source: TRAI More than 31 million subscriber getting connected using Wireless (GPRS/EDGE or CDMA) technology. Traditional Wireline Technologies can t achieve India s growth objectives 3G and Broadband Wireless Access (BWA) Technologies Show Hope.. But When? HUAWEI TECHNOLOGIES Co., Ltd. Page 3
4 Understanding Technology: Next Generation Perspective Standardization Bodies Core Network Standard + Radio Network Standard UMB/LTE/BWA Vision IMS ( ALL IP ) IMS ( ALL IP ) IMS ( ALL IP ) LTE DL: OFDMA UL:SD-FDMA UMB DL: OFDMA UL: CDMA/OFDM/ LS-OFDMA m OFDMA Reduce Cost per Bit Enhanced Service Provisioning Existing & New Spectrum Use Simplified Architecture Open Interface Migration Proof Low Terminal Power Consumption IMS maturity slower than expected. Web 2.0 is taking the lead and driving new way of communication. OFDMA is the Future. It s available within Mobile Wi-MAX TDD and soon within UMB and LTE in FDD. Industry Economics Supports the Convergence of Standards Convergence Started at Core Network and Extended to Radio Access Network HUAWEI TECHNOLOGIES Co., Ltd. Page 4
5 Understanding Technology: Network Perspective Architecture Difference from 2G, 3G to 4G Realization of the Flat ALL-IP Value Present 3GPP & 3GPP2 UMB/LTE/BWA Architecture GGSN IMS PSTN SGSN RNC PDSN BSC Migration to Simplified Network Architecture Gateway IP Network Node-B BTS BTS BTS Evolution to a flatter ALL-IP network architecture: Less nodes in network Better performance for real time application Lower latencyh HUAWEI TECHNOLOGIES Co., Ltd. Page 5
6 Understanding Technology: Industry Perspective UMB/LTE/Wi-MAX integration should maximize industry value BTS BTS IP Core GW OFDMA MIMO/AAS All IP Architecture QoS based connections Value Proposition Lower licenses fees. Migration to larger and more affordable spectrum allocations. Support for both TDD & FDD 2-layer flat network Higher spectral efficiencies Advanced Technology Cost Effective Fair Competition Healthy Eco-System Space for everyone to grow Fair ecosystem for everyone to contribute R&D. Support of all contributors to Broadband Value Chain. Timely availability. A competitive broadband industry will drive increased performance and lower costs HUAWEI TECHNOLOGIES Co., Ltd. Page 6
7 Understanding Technology: NextGen Comparison High Level Comparison of the Next Gen technologies Standard body Circuit/packet Air interface Duplexing scheme 3GPP IP-based TDD & FDD LTE UMB WiMAX Forum OFDMA for DL SC-FDMA for UL 3GPP2 IP-based OFDMA for DL CDMA/OFDM/LS- OFDMA for UL TDD & FDD IEEE IP-based Scalable OFDMA TDD 1 2 TDD spectrum is presently not used by top-tiered operators. FDD offers greater spectral efficiency. Most operators will depend heavily on their existing FDD spectrum. DL speeds UL speeds Mobility >100 Mbit/s (20MHz) >50 Mbit/s (20MHz) Up to 350 km/hr 288 Mbit/s (20MHz) 75 Mbit/s (20MHz) Up to 350 km/hr 63 Mbit/s (10MHz) 28 Mbit/s (10MHz) Up to 120km/hr 3 So, Tier 1 operators will most likely wait until NextGen FDD technologies become available. Channel sizes Product availability 1.25, 1.6, 2.5, 5, 10, 15 and 20MHz Commercial LTE products expected 2009 for the most aggressive vendors' plans From 1.25 to 20MHz (150 khz increments) Commercial UMB product availability by mid-2009 Source: Ovum, 3GPP, 3GPP2, CDMA Development Group, WiMAX Forum 1.25, 5, 7, 8.75, 10, 15 and 20MHz Wave 1 compliant certified products in mid-2007 Wave 2 compliant certified products in early 2008 Meanwhile, WiMAX will drive the demand for broadband for TDD based operators; however, availability of LTE and UMB will close the gap with greater speeds and capacity. UMB offers the most competitive OFDMA-based mobile broadband solution HUAWEI TECHNOLOGIES Co., Ltd. Page 7
8 Market Consolidation: India Operators Economies of Scope and Scale Fixed and Mobile Operator UMB is designed to be the best option for both types of operators in both Urban & Rural markets Mobile-only Operator Operator Type/ Operation Area Urban Presence Urban Shift Rural Presence Rural Shift Overlay NextGen/UMB Mobile Only GSM or CDMA GSM or CDMA Overlay NextGen/UMB Fixed & Mobile GSM or CDMA With Wireline BB Overlay NextGen /UMB FTTH GSM or CDMA Overlay NextGen/UMB HUAWEI TECHNOLOGIES Co., Ltd. Page 8
9 Access Technology BTS Overlay Solution ( Mobile Only & FMC SP ) RF Unite GSM/CDMA Outdoor BTS (other vendor) GSM / CDMA /MSAN On the Mast On the bracket Optical Fiber Combiner (for Antenna sharing) On the iron pole On the wall Can be integrated to the existing GSM/CDMA network Element. Most Preferred 3G deployment For incumbent 2G players Scalable to Sharing and Growth Installation time 75% Lesser Size 20 KGs ( 60 KGs per Site ) Mount Existing Place w/o platform Lifted Hand Carry Opex saving on Electricity Power Consumption 600 Watts/sites.vs. Large Node B 1500 Watts Civil work not needed HUAWEI TECHNOLOGIES Co., Ltd. Page 9
10 Conclusion Wireless broadband is the best option to speed up India s broadband penetration. FDD spectrum support will be considered by existing operators in their migration to future broadband technologies. UMB has strong support from technology and equipment providers UMB is one of the best options for those operators with FDD spectrum > UMB offers operators plenty of performance and deployment flexibility HUAWEI TECHNOLOGIES Co., Ltd. Page 10
11 20.March 2007 Thank You HUAWEI TECHNOLOGIES Co., Ltd. Page 11 HUAWEI TECHNOLOGIES CO., LTD.
12 Understanding BWA Technology Understanding of the Devices Changes High Data & High Voice BWA Operational Area Fixed Broadband to Mobile Broadband BWA & 3G Overlap Area Mobile voice to Mobile Data 2G & 3G Overlap Area Low Data & High Voice Low Mobility High Mobility 2G Network 2.5 Network 3G Network BWA Fixed Network 4G Mobile Network PC Lap Top PDA Smart Phone Basic Phone USB / Bluetooth Modem Non LOS Modem Non LOS Modem USB / Bluetooth Modem Nomadic/NLOS Mobile HO Support Voice Mobile Data Not yet available with Integrated 16e in MASS Voice Mobile Data Not yet available with Integrated 16e in MASS Voice HUAWEI TECHNOLOGIES Co., Ltd. Page 12
13 Future Technologies: Indian Operators Operators have a choice of being first-to-market or follow-the-market CDMA Operators CDMA CDMA/TDM OFDM OFDMA CDMA2000 1X EV-DO REL 0 EV-DO REV A EV-DO REV B 3GPP2 Standard Rev 0 FLASH-OFDM Rev 1 FLASH-OFDM (Pre- UMB) UMB * Global Operator Verizon, KDDI CDMA2000 1X EV-DO REL 0 EV-DO REV A Indian Operator TATA, Reliance CDMA2000 1X EV-DO REV A Gap between Indian Operators Plan and Global Technology Adoption Indian Operators believe.. Being a Late Mover has a competitive advantage HUAWEI TECHNOLOGIES Co., Ltd. Page 13
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