Small Cells- Innovation for Wireless networks

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1 Small Cells- Innovation for Wireless networks Dr. Malek Shahid Chairman, LTE Working Group Small Cell Forum (Alcatel-Lucent: Director, HetNet and network performance optimization) Latin American Spectrum Conference 2012

2 Topics to be covered Introduction & background to Small Cell Forum 2. Benefits of Small Cells (incl. impact on spectral efficiency...) 3. Evolution of Small Cell technologies & market deployments 4. Key regulatory principles & evolution of Small Cell Forum messaging 5. Summary

Aims Ecosystem Development Market Education Driving open standards 67 operators covering 2.

3 The Small Cell Forum Promoting & enabling small cell technology based on licensed spectrum, operator managed, edge-based intelligence Not-for-profit, founded in 2007 Independent, Inclusive, International Aims Ecosystem Development Market Education Driving open standards 67 operators covering 2.92 billion mobile subscribers 47% of total 82 providers of small cell technology representing all parts of the ecosystem

4 THE LIMITS OF MACRO BTS-ONLY STRATEGY CLAUDE SHANNON WAS A VERY SMART GUY Wireless Technologies A Bad Experience A Good Experience network load, frequency band, and distance all make a difference Peak Data Efficiency (bps/hz) 4 2 Infeasible Region LTE Small cells Shannon-bound Macrocells HSDPA EV-DO Signal-to-Noise Ratio (db) Source: Bell Labs analysis 4

5 X 10 = 30X Capacity More of this More Spectral Efficiency (Bits/Sec/Hz)"

5 NETWORK EXPANSION: ONLY 3 WAYS TO ADD CAPACITY ALSO RESULTS IN BETTER COVERAGE Less of this 2x" " More Spectrum (Hz)" 2 X 1.5 X 10 = 30X Capacity More of this More Spectral Efficiency (Bits/Sec/Hz)" Increase Capacity" More Spatial Efficiency (Bits/Sec/Hz/User)" 1.5x" >10x" " " (AFFORDABLE) SPATIAL EFFICIENCY = METRO CELLS 5

6 SMALL CELLS TOMORROW ENTER THE METRO BETTER COVERAGE, HIGHER THROUGHPUT, LESS TCO Total Cost of Ownership (000 Euros) Euros (in millions) METRO ENHANCED NETWORKS: 3 OF 112 THE SAVINGS 45% TCO Savings W-CDMA Macro-only Metro Cell Express 62 LTE Macro and W-CDMA & LTE Metro Cells >10Mb/s >10Mb/s <10Mb/s <10Mb/s <5Mb/s <5Mb/s <3Mb/s <3Mb/s USER THROUGHPUT >10Mb/s <10Mb/s <5Mb/s <3Mb/s >10Mb/s <10Mb/s <5Mb/s YEAR 1 YEAR 2 YEAR 3 YEAR 4 Source: Bell Labs analysis based on dense urban area 6 NUMBER OF SIMULTANEOUS USERS

7 MORE ON SPECTRUM BENEFITS OF SMALL CELLS Benefits apply across wide range of spectrum bands Reuse existing bands Spectrum and economic efficiencies Innovation & competition Performance almost independent of spectrum band Standardised in all existing mobile bands from 700 MHz to 2.6GHz Tolerant to interference from wide range of sources (e.g. Rapid Digital refarming TV) without full clearance e.g. UMTS femtocells on GSM macro Future Dense reuse potential and for high LTE interference refarming on protection 3G spectrum give very high capacity These capacity gains apply in low and high freq bands Deep indoor coverage with lower cost and reduced environmental impact Scope for new operators in limited spectrum Inside-out femtocell-led deployments New services and better customer experience

8 SMALL CELLS EVERYWHERE! Rural: Operator deployed: 2Km: 64 users, wired or wireless B/H Metro: Operator deployed: 100 s m: users wired or wireless B/H In- Building: (Office Retail Apartments) 8-32 users Residen3al: end- user deployed, Shared backhaul) 13 dbm, 4-8 users 8

9 TRAFFIC OFFLOAD, END USER EXPERIEINCE % traffic on small cells 100% 50% 0% 21% % increase in median throughput over macrocells alone 56% 75% 1x 4x 10x Small cells per mac 600% 400% 200% 0% 523% 315% 246% 138% 58% 31% Number of small cells per macrocell All Users Macro Users 9

10 EFFECTS OF SMALL CELLS DEPLOYMENT 1st FLOOR UE_TX_power -10 to 0 dbm Before Before UE_TX_power -30 to -20 dbm After Measured CPICH RSCP: Coverage Improvement 10 After Measured UE Tx Power: Lower after small cell addition

Commercial femtocell deployments and 60 commitments 40 20 0 52 53 6 9 1317 18 19 31 36 37 40 41

11 Commercial femtocell deployments and 60 commitments Deployments 34 Commitments 2012: 41 deployments in 23 countries 2007: 0 deployments

12 Operators with commercial femtocell deployments Includes 9 out of top ten operator groups by revenue

13 Femtocell Deployments Scaling up: Sprint: Over 600,000 units Softbank : Over 120,000 units SFR: Over 100,000 units Vodafone UK: Hundreds of thousands of users 2007: 0 femtocells AT&T: Well over 500,000 units (analyst estimates) Today: 3.8 million femtocells deployed commercially

MORE SMAL THAN MACROCELLS There were more 3G femtocells than 3G macrocells in June 2011 By end of 2012, There will be more small cells than macrocells for all technologies combined

14 MORE SMAL THAN MACROCELLS There were more 3G femtocells than 3G macrocells in June 2011 By end of 2012, There will be more small cells than macrocells for all technologies combined 80,000,000 60,000,000 40,000,000 20,000,000 - Femtocells Small Macrocells End 2012: 6.4 million small cells 6.0 million macrocells Source: Small Cell Forum

15 Overall Objective of Small Cell Forum s Regulatory Working Group - To encourage a positive regulatory environment for femtocell deployments Consistent regulatory environment in a wide range of administrations Assist regulators in understanding the regulatory issues associated with femtocells Clarify regulations to enable their citizens to gain full access to small cell services, without undue delays Provide Small Cell Forum members with up-to-date knowledge of regulatory environment for small cells around the world

16 Some key regulatory principles Licensing Interference & Safety Concerns Security No need for additional/individual licences No terminal registration necessary (administrative burden) Fees should be structured to allow for high density deployments Femto cells remain under operator control, restricting power to avoid interference Emission levels within accepted Health & Safety guidelines Secure mutual authentication between device and network Tamper-proof devices with no user controls Location specific apps Privacy concerns being addressed in the SCF standards activities User opt-in required, subscriber and UE identity fully protected

17 Some Examples of Good Regulatory Practice EU Russia Taiwan UK Japan United States South Korea Malaysia Decided (in 2008) - no need for any new European regulation; femtocells can operate under existing national licensing regimes Regulator simplified registration procedures (in 2010) to permit mass-market introduction of femtocells Regulator approved national telcos to supply femtocells to extend broadband provision to the home, late last year. Regulator removed requirement to register location of base stations, in the case of femtocells; seen as impracticable Authorities removed requirement for professional installation of femtocells; reduced fees for multiple deployments FCC exempted femtocells from new rules to avoid interference from unlicensed repeater devices SK Telecom authorised (in Dec 2011) to deploy integrated Femto LTE/Wi-Fi Femtocells to extend coverage Operators (since Mar 2012) need only pay a one-time registration fee for low power femtocells (up to 25dBm or 36 mwatt)

18 Change in emphasis as small cell technology & usage evolves Initial SCF policy drive focused on low power femtocells No need for additional licences operate within operator s spectrum, other key principles as outlined earlier Newer range of small cells/applications bring new opportunities & regulatory challenges Complementary with WiFi, choice dependent on user profile, service type, QoS,... Small Cells help to maximise efficiency of existing spectrum

19 Summary Proliferation of Small Cells in mobile networks is expected to continue Many benefits to both users and operators Use of small cells leads to substantial spectrum capacity increases Data offload also eases traffic congestion in the core network Complementary to Wi-Fi offload Regulatory principles are well established for use in licensed spectrum

Small Cell Market Status Regularly updated & available for free download from: www.smallcellforum.

20 Small Cell Market Status Regularly updated & available for free download from: Comprehensive overview of current and forecast deployments of Femtocells Picocells Microcells Metrocells

21 Small Cell Regulatory Information White papers, regulatory news, position papers etc. at:

22 Regulatory White Paper

CHALLENGES TO LTE PROGRESS. The Evolution of Mobile Broadband and Regulatory Policy

CHALLENGES TO LTE PROGRESS. The Evolution of Mobile Broadband and Regulatory Policy CHALLENGES TO LTE PROGRESS The Evolution of Mobile Broadband and Regulatory Policy LTE North America, Dallas, Texas, November 21-22, 2013 4G Americas Board of Governors Exabytes per Month Traffic Growth