Business Drivers for Selecting LTE Technology. HSPA+ & LTE Executive Briefing, Jan 27, 2009 Hank Kafka, Vice President, Network Architecture, AT&T

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Business Drivers for Selecting LTE Technology HSPA+ & LTE Executive Briefing, Jan 27, 2009 Hank Kafka, Vice President, Network Architecture, AT&T

Why LTE? HSPA, HSPA+ provides great data speeds with impressive improvements over next 2-3 years HSPA, HSPA+ is already the mobile broadband technology of choice worldwide LTE will be adopted by >80% of the world s wireless carriers Incredible economies of scale will be created with LTE through the GSM community as well as the CDMA community

Projected Broadband Growth ns (millions) Subscription Source: Ovum, Strategy t Analytics, Ericsson

Projected Traffic Growth 700 600 500 Aggressive 3G/4G Data Traffic Growth 400 300 200 1 corresponds to 2007 2G Data Traffic Conservative 3G/4G Data Traffic Growth 100 20 0 15 2G Data Traffic Growth Voice Traffic Growth 10 5 Source: AT&T AO - 12/17/07 AT&T 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Peter Rysavy, 3G Americas

LTE Subscriber Growth Forecasts Millions Analysys Mason ABI Research

Devices Primed For Embedded Wireless Picture Frame Push photos to Grandma No setup required ereader On the go access to books Simple out of the box experience PNDs Real Time Traffic Points of Interest Web Search The Network Car Diagnostics & Safety Web Surfing Real Time Traffic Internet Radio Digital Cameras Backup Photos Limitless Memory Card Gaming Devices Multiplayer Games Access to game downloads Media Player Internet Radio MID & UMPC Web Browsing

Profitability demands lower price per MByte Source: Nokia-Siemens

LTE Lowers Opex Dramatically UMTS HSPA (2 X 5MHz) LTE (2 X 5MHz) Theoretical average throughput Theoretical maximum throughput 128-384 Kbps 1 Mbps 4 Mbps 2 Mbps 14 Mbps 20 Mbps Monthly downlink traffic 230 TB (5MHz) 500 TB (10MHz) 500 TB 1800 TB Typical cost per (downlink) megabyte at maximum use of network Euro 06 0.6 Euro 0.3 Euro 01 0.1 Source: Analysys Research 2007

OFDM: Delivering the Data OFDM Advantages OFDM Trucking Company Copes with severe channel conditions Robust against narrowband interference Can be deployed across various frequency bands Scales easily for different amounts of available bandwidth FDM Trucking Company Effective for broadcast systems, higher bandwidth radio systems, and high peak data rates in large blocks of spectrum. Analogy courtesy: www.complextoreal.com

MIMO Using Multiple Paths to Boost Throughput and Capacity Encoder Decoder Source: 3G Americas

LTE: Spectrum Flexibility and Efficiency LTE to operate in 1.4, 1.6, 3, 3.2, 5, 10, 15 and 20 MHz bandwidths Significantly improved spectrum efficiency Downlink target (bits/sec/hz/site) /site) 3-4 times that of Release 6 HSDPA Uplink target (bits/sec/hz/site) 2-3 times that of Release 6 enhanced uplink

LTE Cost Advantages for GSM Operators Deployment of LTE on existing sites and sharing of common infrastructure (e.g. antenna masts; site infrastructure like power supply, air conditioning, and security equipment; feeder cables and even antennas) Sharing of backhauling equipment between LTE/SAE and existing network technologies provided at the same site Common network management platforms Source: Nokia Siemens

LTE: Flat Architecture UMTS Circuit Switched Core Network RNC2 MSC Packet Switched Core Network Node B lub interface RNC1 lu-ps interface SGSN LTE ENode B ENode B S1 Interface Evolved Packet Core Network Source: UMTS Forum

Latency Improves with 3GPP Evolution Source: Peter Rysavy, 3G Americas

Sector Throughput (Capacity) Downlink 4X4 12 24 48 3.7 7.85 15.7 Downlink 2X2 31.4 1.9 Downlink 1X1 Uplink 2.25 1.25 5 10 20 3.7 6.35 12.7 0.8 1.3 1.45 HSPA HSPA+ LTE Carrier BW/MHz Sources: Motorola, NAT, Peter Rysavy, CDG

IMS: IP Multimedia Subsystem The Platform Driving Convergence Network

3GPP Evolution HSDPA HSPA HSPA+ LTE 2006 2007 2008 2009 2010 AT&T/UMTS Forum

Clear Path to 4G/LTE AT&T Network Technology Timeline HSPA Initial HSPA+ Trials LTE Trials Initial LTE Deployment 2008 2009 2010 2011 Source: AT&T Page 18

LTE Targets High data rates Peak data rates: at least 100 Mbps (DL) / at least 50 Mbps (UL) Average user throughput: 3-4 times (DL), 2-3 times (UL) HSPA reference Cell-edge user throughput: 2-3 times (DL & UL) HSPA reference Low latency User plane: Less than 10 ms (RAN RTT) Control plane: Less than 100 ms (idle active) High spectral efficiency p p Three times HSPA R6 baseline Improved performance for broadcast services Simplicity Less signaling, auto-configuration of enodeb Spectrum flexibility Deployable in a wide range of different spectrum allocations of different sizes Unpaired and paired spectrum, variable duplex distance Source: Ericsson

A Global Commitment to LTE

Thank you! HSPA+ & LTE Executive Briefing Hank Kafka, Vice President, Network Architecture, AT&T