Optimizing the HetNet: Key decision points for mobile network operators webinar

June

1CLIENT CONFIDENTIAL

Copyright © Maravedis-Rethink 2015

Caroline Gabriel, Research Director, Maravedis-Rethink

Optimizing the HetNet: key decision points for mobile network operators webinar

Neil Coleman, Director Marketing,Amdocs

May 18, 2015

May 2015

Copyright © Maravedis Inc 2015.

www.maravedis-bwa.com

House Keeping

Caroline Gabriel, Maravedis-Rethink

Neil Coleman, Amdocs

Q&A

Webinar Agenda

June

3CLIENT CONFIDENTIAL

Copyright © Maravedis-Rethink 2013

Optimizing the HetNet:Key decision points for MNOs

Caroline Gabriel, Research Director, Maravedis-Rethink

CLIENT CONFIDENTIALCopyright © Maravedis-Rethink 2013


4

May 2015



Introduction: the survey outlined

Key findings and industry trends

– Evolution of the HetNet

– Optimization becomes critical

– The business case for optimization

– The emergence of vendor neutral strategies

Agenda



5

Study of MNOs and their key network optimization plans

The operator survey

May 2015



• Targeted study of CTO-level executives in tier on MNOs

• Backed up by broader studies• 120 MNO executives• Rethink RAN studies

• Key findings summarized• New network architectures to

address capacity/revenue crunch

• These will only deliver their promises when fully optimized

• Operators increasingly want multivendor networks and tools

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2013 2014 2015 2016 2017 2018 2019

Gro

wth

re

lati

ve t

o c

apac

ity

= 1

Capacity investments Data revenues

Growth in mobile broadband capacity investment relative to incremental revenues for a typical developed market MNO(relative to capex baseline of ‘1’ in 2013)



6

Need to optimize many types of cell equipment in dense networks

The new approach to networks

May 2015



28

2419

16

13

Reduce cost of data capacity Enable multivendor networks

Densify the network efficiently Integrate unlicensed spectrum

Target capacity where it is needed

• The new network architecture• Move to small cells and HetNet• Increase capacity, lower TCO• Use any spectrum available• Move to dynamic capacity and

spectrum allocation• Targeted capacity and differentiated

QoS

Cost, capacity, coverage

Customer experience Business drivers for HetNetSource: Maravedis-Rethink/ Amdocs survey January 2015



7

Need for optimization and SON

Optimization critical to HetNet

May 2015



• Densification – barriers to linearity• Unplanned cells (viral, homespots)• Interference/congestion• Unlicensed spectrum• Optimization and central control

essential

• Without optimization, HetNet means chaotic capacity

• Squeeze more from macro and then move to other layers

• Optimization more automated as cell numbers grow

0

10

20

30

40

50

60

70

80

2 5 10 15 30 50 75

Ce

lls p

er

km²

Full SON essential

Density of small cells at which automation becomes essential. Source: Maravedis-Rethink MNO survey April 2014



8

Question of customer experience not just efficiency

The business drivers for optimization

May 2015



• Survey found range of drivers to implement optimization

• Customer experience and services• ‘Three Cs’• Groundwork for new architectures

• Which tools are key?• Shift from manual to SON• New techniques emerge

• Increasingly seen in terms of overall ROI, not cost

Top seven drivers to invest in RAN optimization solutions, and the % of MNOs citing them as top three drivers. Source MaRe survey, 29 respondents, January 2015

57

50

5043

37

36

27Improve customer experience

Reduce network planning timeand cost

Feed into OSS, CEM, analytics

Improve coverage and capacity

Enable new architectures

Reduce or delay RAN capex

Support new services



9

HetNet enables multivendor approach, which then applies to tools

The drive towards vendor neutrality

May 2015



• Operators want multivendor networks

• These are essential for HetNeteconomics

• But require multivendor optimization

• Neutral platforms vs bundling

• Market still very open

• 15% committed to NEP solution, down from 30% in 2013

MNOs planning to implement NEP-supplied or vendor-neutral SON and optimization solutions. Source: MaRe survey, 29 respondents, January 2015

0

5

10

15

20

25

30

35

40

45

50

NEP Neutral Combination Undecided No plans

%

SON Optimization



10

Opportunities and challenges for optimization specialists

Business impact of vendor neutrality

May 2015



• Key advantages of vendor neutral optimization solutions

• Challenges• Supplier trust and

stability• Pricing/bundling• Knowledge of

network and business

• New opportunity opening up

Advantages of a vendor neutral optimization/SON solutionSource: MaRe MNO survey January 2015

15

9

18

18

21

12

7Focused solely on network quality,not equipment

Best of breed approach encouraged

Multivendor equipment support

No future lock-in

Motivated to deliver best levels ofoptimization

Motivated to support operatorbusiness KPIs

Greater operator control inrelationship



11

Shift in emphasis from sites to real world customer experience

Operators have all-new network KPIs

May 2015



From this To this

Optimizing the HetNetKey decision points for mobile network operators

Neil Coleman

Head of Amdocs Network Solution Marketing

18th May 2015

Information Security Level 1 – Confidential

© 2015 – Proprietary and Confidential Information of Amdocs13

Agenda

• Optimization & SON are critical to network ROI

• Real impact being delivered today

• How optimization needs to evolve

• Conclusion & next steps



Optimization & SON are critical to network ROI

The network imbalance

Operators need better not

just bigger networks!



Optimization & SON are critical to network ROIWhat optimization gives operators

Year 1 Year 4

LTE deployment 19 3WiFi offload 15 8Public small cells 14 26Virtualized RAN 5 13New or refarmed spectrum 21 17Macro upgrades 15 15Optimization & SON 11 18

Sweat assets; greater capacity from existing infrastructure

% of required capacity increase delivered by….



Optimization & SON deliver real impact

Align coverage &

capacity with

demand

Balance

load across

infrastructure

Rapid recovery

from network

issues

Seamless HetNet

connectivity

Improved customer

experience

Increased capacity

from existing

infrastructure

Increase revenue

from network

Accelerated

network

transformation

Corporate dropped calls

problems reduced by

75%Tier-1 EMEA operator

Reduction in loaded cells during

busy hour in city

20%Tier-1 LATAM operator

Reduction in time for key

optimization activities

80%Tier-1 EMEA operator

Optimization Impact In numbers



How optimization needs to evolveImpact has displaced cost in operators considerations

2013 2015

Upfront cost 35% 18%

Reduced or deferred network CAPEX 14% 21%

Reduced network OPEX 22% 24%

Impact on churn and ARPU 18% 22%

Add-on costs during the contract life 12% 15%

ROI is critical: unbundling of equipment & optimization

Importance of five key economic considerations when

choosing an optimization solution



Streamlined HetNet ready processesDisconnected tools

How optimization needs to evolveNew toolkit of capabilities

Investment

Drive test

Call trace

Video

optimizationCoordinated Optimization

Problem resolution

Centralized, intelligent network automation

Rollout

PlanPrioritizeTarget

AcceptIntegrateDeploy

ResolveDiagnoseIdentify

DeployDesignTrigger



Customer & revenue drivenNetwork KPI driven

How optimization needs to evolveThe need for the right drivers

2.5%

DCR

Fault

400

Mbps

NBR

List

Network Customer Location Billing



Conclusions & Next steps

Operators need better not

just bigger networks

Optimization & SON:

• Critical to network ROI

• Deliver real impact

• Needs to evolve

#1 independent

100% focused on network ROI

Customer value driven

Software Powered Services



Thank you

Contact:

[email protected]

Whitepaper

http://solutions.amdocs.com/OptimizingHetNet.html?LeadSource=OnlineBanner&Publication=WebinarEmail

mailto:[email protected]

http://solutions.amdocs.com/OptimizingHetNet.html?LeadSource=OnlineBanner&Publication=WebinarEmail

Thank you

Neil Coleman

Head of Amdocs Network Solution Marketing

Optimizing the HetNet: Key decision points for mobile network operators webinar

Technology

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