Developments in HetNets and SONDevelopments in HetNets and SON

Mobile Network Optimization – AmsterdamNovember 20, 2013

The Bottleneck: Diminishing CapacityImprovements

Source: Ericsson Source: Qualcomm

Increase in traffic is part of thestory

Diminishing PHY capacityimprovements between

generations is another part

2

The Solution: Network Densification

3

Small cells increase cell edge area

Capacity ∝Mmacro cells Capacity ∝M + n small cells

Problem in the Solution: Cell Edge Area

Macro cell

RF Power = 40 dBm

Antenna Gain = 16 dBi

Small cellUplink

Small cell

RF Power = 30 dBm

Antenna Gain = 6 dBi

D 20 dB (x100)

4

Downlink

1- Uplink interference to small cell (very damaging)2- Downlink interference to small cell edge subscribers

Problem Resolution: Coordination

eICIC CoordinatedMultipointCarrier

AggregationAlmost BlankSub-frames

Macro cellf1f1

f2

Macro cell

5

Small cellf1

f2

f1f2

Small cell

Features in 3GPP Release 10 & 11: LTE-Advanced

eICIC = Enhanced intercell interference coordination

Top Challenges to Small Cell Deployments:Operator Survey

CostCost

PerformancePerformance

6

Source: Small CellNew Order,ExelixisNet & XonaPartners, October2013

Top challenge to small cell deployments is cost

Performance

Small Cell Operator Readiness Indicators

40%

13%

47%Same spectrum

Dedicated spectrum

To be determined

27%

7

40%

13%

47%Same spectrum

Dedicated spectrum

To be determined

27%

~ 1/4 of operatorsestablished cost targets

~ 1/2 of operators yet todetermine small cell

spectrum

Source: Small Cell New Order, ExelixisNet & Xona Partners, October 2013

Small cell deployments will be organic, not massive

SON & Interference Management

InterferenceManagement

Self-OrganizingNetworks

eICIC/CAeICIC/CA

eICIC/ABSeICIC/ABS

CoMPCoMP

Self-Configuration

Self-Configuration

Self-Optimization

Self-Optimization

Self-HealingSelf-Healing

8

8 9 10 11 12

3GPP LTE Release:

• Self-configuration• Inventory• SW download• ANR• PCI assignment

• ICIC (macro cell)

• Self-optimization• Mobility robustness• RACH• Load-balancing

• ICIC (macro cell)

• Self-optimization• Coverage & capacity

optimization• Energy savings

• Self-healing (outagedetection &compensation•eICIC (small cells)

• Self-optimization• Enhancements

• SON coordination• eICIC (small cell)

• Enhancements• CoMP

• Work in progress• Network managementlevel CCO• Multi-vendor plug &play• Advanced small cells(eCoMP, soft small cells)

Today!

SON Architectures

Centralized SON:wide scope, non-real time

Suited to tasks that requireoccasional or periodic changes

across large parts of thenetwork

Centralized SON:wide scope, non-real time

Suited to tasks that requireoccasional or periodic changes

across large parts of thenetwork

Hybrid SON: combinescentralized & distributed SON

Some functions executedwithin the core, some in the

RAN, and others in both

Hybrid SON: combinescentralized & distributed SON

Some functions executedwithin the core, some in the

RAN, and others in both

+ =

• 3G• 3rd Parties

• Data from OSS

• 3G• 3rd Parties

• Data from OSS

9

Centralized SON:wide scope, non-real time

Suited to tasks that requireoccasional or periodic changes

across large parts of thenetwork

Distributed SON:Local scope, real-time

Management & coordinationat the system level

Distributed SON:Local scope, real-time

Management & coordinationat the system level

Hybrid SON: combinescentralized & distributed SON

Some functions executedwithin the core, some in the

RAN, and others in both

Hybrid SON: combinescentralized & distributed SON

Some functions executedwithin the core, some in the

RAN, and others in both

+ =

• LTE• Equipment Vendors

•Data from OSS &Nodes

• LTE• Equipment Vendors

•Data from OSS &Nodes

Challenges to SON Deployments

Trust Gap

SON Adoption

X2

Trust GapTrust Gap Vendor InteroperabilityVendor Interoperability

› How fast will operators trustSON?– Gradual adoption of SON

• Configuration & provisioning• Automatic neighbor relation• Mobility robustness• Remote electrical tilt

– Open-loop SON vs. closed loop SON

10

› Vendor interoperability vs.vendor lock– Standards don’t define how to

respond to standardized messages– OSSii: Operations Support Systems

interoperability initiative– Expanded vendor IOT scope in 3GPP

Correlated TrendsNetwork ComplexityNetwork Complexity Market PressureMarket Pressure

Source: SEMAFOUR

› Multi-RAT, multi-Layer, multi-vendor networks

› Multitude of tunableparameters with intricatedependencies, effective ondifferent time scales

11

› Growing demand & range ofservices with distinctcharacteristics & requirements

› Pressure to remain competitive› Wireless as critical

infrastructure: robustness &resiliency

Source: SEMAFOUR

Trends in HetNets & SON

› Small cells (particularly outdoors) will be focused on LTE– 3G Small cells may be part of a multi-mode LTE small cell

› SON growth and maturity driven by LTE networks› Equipment vendors with strategic advantage in SON

implementation– Currently no party provides full solution to operators– Equipment vendors access to network elements (eNB) is major

differentiator against 3rd party vendors

› 3rd Party vendors integration upstream with tool andnetwork analytics vendors– Leads to evolving and growing of SON concept to encompass

upstream network elements

› Small cells (particularly outdoors) will be focused on LTE– 3G Small cells may be part of a multi-mode LTE small cell

› SON growth and maturity driven by LTE networks› Equipment vendors with strategic advantage in SON

implementation– Currently no party provides full solution to operators– Equipment vendors access to network elements (eNB) is major

differentiator against 3rd party vendors

› 3rd Party vendors integration upstream with tool andnetwork analytics vendors– Leads to evolving and growing of SON concept to encompass

upstream network elements

12

SON Market: Restructuring & Positioning

AmdocsAmdocs Actix$120mActix$120m

Celcite$129mCelcite$129m

CiscoCisco Intucel$475m

Intucel$475m

InfoVista

Active spacefrom M&Aperspective

13

InfoVistaInfoVista MentumMentumAexioAexio

AircomAircom SymenaSymena

Other:Ericsson > OptimiTEOCO > Schema

Active spacefrom M&Aperspective

JDSUJDSU Arieso$85m

Arieso$85m

Future Trends: Extend SON To The Core

› Apply machine learning & artificialintelligence to control & optimize end-to-end network experience

Data Center(routers,

switches, DPIprobes, app GW,

firewalls)

Data Center(routers,

switches, DPIprobes, app GW,

firewalls)

Packet Core(HSS, S/P-GW,

MME,PCRF)

Packet Core(HSS, S/P-GW,

MME,PCRF)

RAN(eNB, L2/L3aggregation

routers)

RAN(eNB, L2/L3aggregation

routers)

Sample use cases•Manage end-to-end QoS•Manage latency ofservices

•Tune the network•Characterize end-to-enduser experience

•Reduce troubleshootingtime

•Prevent unauthorizedaccess and usage on thenetwork

•Fraud detection

14

IMS/SIP(P-/I-/S- CSCF,

HSS, SBC,ENUM, MGF)

IMS/SIP(P-/I-/S- CSCF,

HSS, SBC,ENUM, MGF)

Data Center(routers,

switches, DPIprobes, app GW,

firewalls)

Data Center(routers,

switches, DPIprobes, app GW,

firewalls)

Packet Core(HSS, S/P-GW,

MME,PCRF)

Packet Core(HSS, S/P-GW,

MME,PCRF)

Emerging Core(Femto SeGW,

TTG,ePDG, HGW)

Emerging Core(Femto SeGW,

TTG,ePDG, HGW)

Applications(TAS, IP

Messaging, VM,IVR)

Applications(TAS, IP

Messaging, VM,IVR)

RAN(eNB, L2/L3aggregation

routers)

RAN(eNB, L2/L3aggregation

routers)

Sample use cases•Manage end-to-end QoS•Manage latency ofservices

•Tune the network•Characterize end-to-enduser experience

•Reduce troubleshootingtime

•Prevent unauthorizedaccess and usage on thenetwork

•Fraud detection

Whitepaper:Data SciencesFocus – MobileEcosystemContributions

Future Trends: Cloud RAN

15

Aggregating baseband allows implementation of CoMP andresults in greater network capacity

C-RAN Benefits & Challenges

Benefits› Capex reduction

– Baseband unit virtualization

› Opex reduction– Site rental– Support & maintenance (site visits)– Energy savings

› Improved performance– Capacity gain

Challenges› Fiber availability & cost

– High fronthaul line raterequirements

› Baseband pooling andvirtualization

› Capex reduction– Baseband unit virtualization

› Opex reduction– Site rental– Support & maintenance (site visits)– Energy savings

› Improved performance– Capacity gain

› Fiber availability & cost– High fronthaul line rate

requirements

› Baseband pooling andvirtualization

16

New Licensing Regimes: Authorized SharedAccess

f1

f2

f3

IncumbentIncumbent

Today

Geographic Sharing Time Domain Sharing

17

Time

f1

Time

f1

f2

f3

ASA Licensees(Discrete, Identifiable)

ASA Licensees(Discrete, Identifiable)

ASA

ASA: Potential Sharers

› North America– 3500 – 3650 MHz

› Europe– 2300 – 2400 MHz

Reliability &Availability

High

Defence

Aeronautical

Broadband& Mobile

Public safety

18

Reliability &Availability

Level of crowding

Low

Low High

Other public& commercial

Broadband& Mobile

Unlicensed

Other bands can be consideredfor ASA

A Word About Us: Xona PartnersA boutique advisory firm specialized in providing investment

strategy & technology advisory in telecom and technology

Financial Modeling & BusinessCase Development

Pre-Investment DueDiligence

Verticals & Big Data: Operators, Automotive,Health, Finance & Banking

Networks: 3G, LTE, Wi-Fi, FTTx, GPONs, DataCenter, Cloud, MVNOs

Investment & Technology Offering

19

Pre-Investment DueDiligence

Post-Investment

LifecycleManagement

Networks: 3G, LTE, Wi-Fi, FTTx, GPONs, DataCenter, Cloud, MVNOs

Application & Data: OSS/BSS, Billing,CRM/ERP, EPC, Analytics

Operating Systems: Virtualization, Orchestration,Open Source

Network Elements: Consumer Devices, BaseStations, Routers, Switches, Servers, Storage

Silicon & Components: Baseband, RF, NPUs,FOGAs, ASICs, DSPs, Memories, Processors

Multi-layer Technical Expertise

S a n F r a n c i s c o • S i n g a p o r e • D u b a i • P a r i s

X O N A PARTNERSI n n o v a t e. E n a b l e.

Frank Rayal, Partnerfrank@xonapartners.comWeb: www.xonapartners.comBlog: http://frankrayal.com