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June 9, 2016 0

Contents Introduction - Network Evolution & Operator Challenges Sharing Experiences of SK Telecom Re-architecting the RAN SDRAN: Software-defined RAN - Overview & Enabling Features SDRAN Opportunities and Challenges Global Collaboration 1

History of Mobile Network Evolution RAN Evolution Direction 1G 2G 3G 4G 5G Tech Analog Digital Packet All-IP All-IT RAN Architecture Standalone HW C-RAN (DU Pooling) Service-aware RAN SDRAN MEC Virtualized RAN Open Interface Speed ~384kbps ~14.4Mbps 75Mbps~ 1Gbps~20Gbps Services (1980~2010) Voice Roaming Smartphone IoT Virtual Experience Smart Machine (2010~) (2018~) 2

Operator Challenges Current HW-centric mobile infrastructure leads to inefficiency when - Re-allocating radio resources dynamically to cope with the change of traffic - Introducing and providing customized/innovative services - Upgrading Telco functionalities Inefficient utilization of radio resources Inability to customize for various customers High upgrade costs Diverse traffic (time/place/event) New and diverse devices with IoT Closed & proprietary HW Mobile infrastructure needs re-architecting 3

Sharing Experiences: vran POC Virtualized RAN is under development including commercial UE IoT to overcome performance and stability issues (2014~2016) Experiences Lessons Learned Live Migration/Auto Scaling - Auto recovery in case of SW/HW faults - Live Migration (Service interruption < 1 sec) - Flexible resource management Performance test of LTE-A features - 2x2 MIMO, 2 CA, 300Mbps - Function(L1/L2) Split/Ethernet Fronthaul - Multi-Cell/UE Lab & Field test (Verification for 4 Cells, 10 Users) Re-design of vran VNF - VNF needs to be unbundled into more blocks, e.g. control/user plane, for independent scaling - Open interface for multi-vendor operation Needs to verify the reliability in commercial environments (more users & cells) - Capacity > 36 Cells & 600 Users per DU Needs to enhance virtualization features - Minimize the Auto Recovery time for commercial operation (< 2 min) - Live Migration: No service interruption Needs to coordinate with E2E orchestrator - Interworking btw RAN VNF manager and E2E orchestrator for E2E management - For unified operation of multi-vendor vran solutions, standard interface should be agreed 4

Sharing Experiences: vepc/vims Rapidly and flexibly responding to increased LTE data and voice traffic, virtualized EPC and IMS have been successfully commercialized Experiences Lessons Learned Commercial vepc for IoT (Aug. 2015~) - Both vmme and vsaegw for IoT service are deployed and running on x86 servers - Call-processing VMs are auto-scalable - vepc for B2C is being developed Commercial vims (Sep. 2015~) - vcscf, vsbc, and vtas are deployed - The NFV adoption is still in progress * Winner of vims Solution & Use Case of the Year at IMS industry Awards 2016 held in Amsterdam (5.18) Commercial NFV Orchestrator (Aug. 2015~) - Using SKT s de-facto MANO spec., NFVO manages heterogeneous VNFs, VNFMs, and VIMs from different vendors * ETSI NFV PoC#23: E2E orchestration of virtualized LTE corenetwork functions and SDN-based dynamic service chaining of VNFs using VNF-FG Re-design of Telco workload as a cloudfriendly workload is essential - VNF shall be decomposed into LB, user/ control plane, DB and so one, so that each component is independently scalable - The performance should be linearly increased as more VMs are added - Stateless-design is crucial for all-active HA and VNF portability(migration) Efficient MANO implementation is needed - Avoid vendor & domain-specific MANO - Accommodate telco-specific life-cycle mgmt. requirements(e.g., backup, rollback, logging) - For fully automated orchestration, standard data models should be agreed Open H/W and S/W will play a crucial role in maximizing TCO gains 5

Sharing Experiences: M-CORD SKT is leading PoCs for low latency services by integrating disaggregated RAN/EPC and open-source N/W controller (showcased at ONS `16) Experiences SDN/NFV applied to E2E Mobile networks - Applying SDN architecture to networking and application - Use of virtualized telco VNFs, including BBU, running on COTS H/W RAN/EPC Disaggregation - Cloud RAN with functional split, resulting in flexibility of architecture design and fronthaul - UP/CP separation in PGW with open interface (OpenFlow) controlling packet forwarding, resulting in separate scalability Mobile Edge Services - E2E network provision as-a-service - Mobile edge service platform for customized services and better QoE Lessons Learned Need for NFV integration reference - More than 6 weeks were spent purely on resolving interworking issues Common NFV platform/certification may resolve interworking issues due to highly diverse NFV development environments (e.g., H/W, virtualization environment, NFV acceleration technologies, etc.) Need for simplified Telco specific requirements - Although it is technically feasible to separate CP/UP in PGW based on SDN today, Telco specific UP requirements such as PCC & QoS cannot be satisfied without major modifications. Re-design and optimization of Telco UP S/W functions for IT/Cloud-friendliness is necessary for SDN-enabled Telco N/W commercialization. 6

Re-architecting the RAN Direction of SKT s Future RAN Architecture - Network that fulfills diverse requirements/services at-scale - : Scalable, Cognitive, and Automated, Lean, End-to-end Past & Present Future Telco Fixed Inefficient Resource Utilization Scalable Unaware Massive Data Risk Management Cognitive Manual Human Efforts and Errors Automated Fat & Monolithic High Complexity (Closed API) Lean Domain-Specific Separate Management End-to-end 7

Re-architecting the RAN SKT s future RAN will be Scalable, Cognitive, Automated, Lean, and End-to-End Cognitive E2E Network Visibility Real-time Analytics Policy-based Optimal Decisions Scalable Efficient Resource Utilization On-demand Adaptive End-to-End E2E Analytics E2E Optimization E2E Orchestration Scalable, Cognitive, Automated, Lean, End-to-End Automated Intelligent Operations Self-configuration Self-optimization Lean Open Source HW/SW Open Interface Modularized Standardized 8

Re-architecting the RAN : How? 4 Basic Principles Unbundling Open Software/Hardware Decoupling Unbundled Function Blocks Control-/User-plane Separation Open Source Software (OpenStack, ONOS) Open Hardware (OCP, TIP) Open Interface (Fronthaul, API) Softwarization Cloudification NFV (Network Functions Virtualization) SDN (Software Defined Networking) Orchestration & Network Slicing (XaaS) Cloud-based All IT Infra SDN-enabled Fabric Re-architecting as a Data Center 9

SDRAN (Software-defined RAN) Software-based All-IT network infrastructure with open RAN innovations Analytics-based SON Open SW Access CP SDRAN Architecture SDRAN Orchestration Virtualized Functions Analytics & Infra Mgmt Biz. Enabling with MEC Distributed Core Func. Edge VAS Key Values 1 Open Architecture Network function virtualization Open interface (fronthaul, service API) CP-UP separation Open HW and SW Open-source based virtualization 2 Operational Intelligence Light-weight, VM-based virtualization Physical Infrastructure Open HW Access UP HW Open-source HW SW-based risk management Auto Recovery Reconfiguration without service interruption Automated operation and optimization with real-time analytics CP-UP Separation Open Fronthaul 3 Biz. Enabling Platform Remote Unit (RU) Access UP HW Radio Unit 3 rd party services Rapid Creation of Innovative Services Edge service slicing 10

SDRAN - Enabling Features (1/5) Network Function Virtualization - Apply IT virtualization technologies to Telco infrastructure Requirements RU #1 RU #2 Centralized DU #1 #2 #N RU #1 RU #2 Standard Server SW DU #1 DU #2 RAN functions are virtualized on any COTS (standard servers) on the market Meet carrier-grade performance requirements, such as real-time processing and availability DU #N RU #N RU #N Benefits RAN functions are tightly coupled with dedicated HW RAN functions are unbundled from general-purpose HW Open source solution, e.g., OpenStack, is already widely used in the industry Brings pooling gains, i.e., enables efficient use of hardware resources Cost-efficiency by using general purpose computing platforms 11

SDRAN - Enabling Features (2/5) Open Fronthaul with Function Split - Unbundling central unit (CU) and remote unit (RU) Small CU PDCP RLC MAC PHY Open Fronthaul RU RLC MAC PHY RU MAC PHY RU PHY RU RF Unit RF Unit RF Unit RF Unit Large Fronthaul Bandwidth Requirements Support flexible function split between CU and RU Define open interface for fronthaul, especially O&M related specifications Show multi-vendor interoperability with compliance testing Benefits Select best combination of CU and RU in terms of costs, fronthaul bandwidth, and coordination Cost-efficiency by leveraging wide ecosystem 12

SDRAN - Enabling Features (3/5) CP-UP Separation - Unbundling control plane (CP) and user plane (UP) Requirements Scheduler Control Plane Admission Control Mobility Control Define CP functions which can be differentiated by each operator (scheduler, admission control, handoff control, SON management, load balancing, interference management, link aggregation, multi- RAT management, etc.) Define open interface between CP and UP SON Management Load Balancing Interference Management CP run as virtualized function UP run on standardized and dedicated hardware User Plane Open Interface PDCP RLC MAC PHY Benefits Separate HW expansion of CP and UP Enables RAN slicing Operators can introduce differentiated CP Cost-efficiency by using GPP and/or commoditized UP hardware 13

SDRAN - Enabling Features (4/5) Open API for MEC & Analytics - Provides additional information for non-telco applications Local services Non-local services Mobile Edge Cloud Core Analytics-based operation Requirements Define open API for - 3 rd party applications - Analytics functions Need to provide necessary information, for example, radio condition, user information, resource allocation, etc. Benefits Brings operational intelligence (risk management, automated operations, and optimization) to operators using real-time analytics Brings new business opportunities with mobile edge computing platform 14

SDRAN - Enabling Features (5/5) Open HW/SW - Standardize HW components and modularize SW components Analytics-based SON Biz. Enabling with MEC Requirements Access CP SDRAN Orchestration Virtualized Functions Analytics & Infra Mgmt Distributed Core Func. Edge VAS Define common specifications for HW components such as server, switch, storage, rack, etc. Define open interface between SW components (L1, L2, L3) Open-source based virtualization Light-weight, VM-based virtualization Physical Infrastructure Benefits Access UP HW Open-source HW CP-UP Separation Open Fronthaul Remote Unit (RU) Access UP HW Radio Unit OCP has proven that openness and collaboration can successfully drive innovations on HW technologies for data centers Provides power efficiency, flexibility, and scalability Cost-efficiency with standardized HW components 15

SDRAN Extension to E2E Architecture SDRAN will complete the end-to-end network infrastructure Network Slicing CP-UP Separation MEC Media SDRAN Orchestration Virtualized NW functions Access CP Virtualization layer Access UP HW Low Latency Service Telco Service Mobile Edge Intelligent E2E Orchestration and Service Exposure (Open API) Dist. core HW Infra Mgmt., Analytics Open & Programmable HW Transport SDN Transport Open HW HW Infra Backhaul POTN #2 Virtualized network slice #1 Virtualized network slice #1 Virtualized NW functions Packet core Core Orchestration Packet core Virtualization layer HW Infra Mgmt., Analytics Open & Programmable HW Core Cloud #n Open HW, SW Each area (access, transport, and core) is now being virtualized using technologies like NFV and SDN E2E orchestrator connects access, transport, and core networks, and provides managements of services in the aspect of the end-to-end connection Fronthaul Remote Unit (RU) Open Fronthaul Access UP HW RF Analytics framework SDRAN 16

SDRAN Opportunities Operator Opportunities provided by SDRAN Operational Intelligence New Business Customer Experience Cost-efficiency Real-time Big Data Analytics Automated Operations Zero-touch Network Edge Service Platform Innovative Services Real-time Optimization Service Agility Unbundled RAN Components Multi-vendor Interoperability 17

SDRAN Opportunities New Business Proximity to end users brought by mobile edge computing platform brings new opportunities to operators to create new business models Example: Private Network - Local routing and traffic control for enabling the smart work service with high security Customer Experience Low latency enabled by mobile edge service platform will enhance the customer experience in certain applications like AR and VR Low latency will create new services like selfdriving car and robotic surgery which have been impossible in existing networks Core Network Internet enb MEC Server Enterprise Server Farm Public Traffic Private Traffic Target Zone (Campus/Factory) 18

SDRAN Challenges IT World vs. Telco World Simplicity & Flexibility Programmability Easy-to-reconfigure Open 99.999% Reliability & Availability Stability Deterministic performance Standard 19

SDRAN Challenges Challenges SDRAN needs to deal with Mission Critical Real-time Processing System Integration Reliability RAN Slicing CP-UP Separation Distributed System with Function Split HW Accelerator Open Interface Compliance Testing Operational Intelligence 20

Global Collaboration SK telecom is committed to open source and standards-based solutions We are carrying out various R&D projects to verify the SDRAN concept & performance in collaboration with global telco/it companies Gold Member OCP Telco Project SDRAN Founding Member Board Chair Member and Collaborator CORD and ONOS Partner 21

Global Collaboration Open Compute Project (OCP) - Redesigning hardware to efficiently support the growing demands on IT infrastructure - Break and open the black box of proprietary infrastructure, making it more efficient, flexible, and scalable 8 Projects + Telco Project (created on Jan. 2016) - OCP Telco Project: Focus on data center technologies for telecom companies 22

Global Collaboration Mobile CORD (M-CORD) - CORD (Central Office Re-architected as a DataCenter) extended to mobile network M-CORD Vision - Enable virtualized/disaggregated RAN and Core - Deploy network functions as services - Leverage best practices of SDN, NFV and Cloud M-CORD PoC Activities Disaggregated/ Virtualized RAN OpenStack CORD Fabric Disaggregated/ Virtualized EPC XOS (Service Orchestration) Mobile Edge Services SDN OS for Virtual Slice Real-time Analytics (SON) PGW C-/D-plane separation Low-latency Video Network Slicing Connectionless Service Commodity Servers, Storage, Switches, and I/O RRHs vbbu vbbu Content Caching Firewall XOS ONOS OpenStack vpgw MME vsgw Central Core or Internet 23

Global Collaboration 5G Testbed in SK Telecom Innovation Center Testbeds with global leading telecommunications equipment manufacturers to develop and test 5G technologies to secure global leadership in 5G Network Slice#3 Network Slice#4 mmwave RAN - 3D Beamforming with Largescale antennas - Ultra wideband @ mmwave Telco Service Mission Critical Service Network Slice#1 IoT Service Virtualized N/W Immersive Media Service Network Slice#2 Network Slicing - Novel Network Architecture for Supporting Diverse Services - Creation and Isolation of Virtualized Networks on as-a-service basis Low Latency RAN Cloud RAN Cloud Core Cloud Core - Lower Latency than 4G - Dynamic TDD - Less Interference Cloud RAN - Improved Performance and Scalability by UP/CP Separation - Low Latency, Low Cost New Air Interface - New Waveform/Frame-structure - New Multiple Access Scheme Anchor Booster & Massive MIMO - LTE-WiGig Tight Interworking - Cloud BBU Base Band Unit Cloud RAN - World-first Maximum 19.1Gbps Transmission - Key Enabler for Supporting Multi-RAT, Edge Computing 24

Global Collaboration Virtual Experience Room in SK Telecom Innovation Center With the aim to secure leadership in the upcoming era of 5G, space to provide 5G customer experience and develop 5G service technologies 5G Based Live Production Together with Sony, 4K UHD live broadcasting system in 5G era without relay equipment T-AR for Tango One-stop service for users to easily develop and execute an AR service by accurately learning 3D space Beyond Surface Table-top device providing multiple users with futuristic experience and independent tasks 5G Robot Teleoperation of 5G humanoid robot by transmitting control signal from motion suit to humanoid Remote AR Remote Augmented Reality built with space recognition and gesture/motion sensing tech.. Immersive Experience Room Virtual environment through action camera and ultra-low latency streaming equipment 25

Summary SDRAN is RAN softwarization based on open architecture and open interfaces SDRAN transformation will be the key technology to - Simplify the network and enable cost-efficiency - Bring operational intelligence for network managements - Create new revenue streams with edge service platform Final goal is to develop a software-based All-IT telecom network infrastructure from the end-to-end perspective SKT is collaborating with best partners to implement the modular functions and integrate those blocks efficiently 26

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