TELECOMITALIA GROUP

5G concretely: our Vision

5G: what’s Myth and Reality?

Turin, 22nd June 2015

O.PE.OP.TD - Technology, Development Plans & Cost Analysis

Daniele Franceschini

A journey already started, tracking a sustainable path

2

TRANSFORMATION AS THE COMPELLING PATH TO FUTURE

5G: myth and reality

The ecosystem is evolving

Daniele Franceschini - Technology, Development Plans & Cost Analysis

TELCOS ARE THE CENTRE OF A MULTI DIMENSIONAL CHALLENGE

Virtualization

IT evolution

TELCOs

Strong Telco competition

OTTs’ role on devices and Cloud services

Regulatory policies push

Telcos are moving towards the Digital Telco

paradigm

5G CAN BE THE

TRANSFORMATION CATALYZER

A new network and service concept based on flexibility

Ability to create and provide a multitude of new

services in a short time

Structural Efficiency in support of Innovation

DIGITAL

TELCOs

3

5G: myth and reality

5G is defining its pillars

Daniele Franceschini - Technology, Development Plans & Cost Analysis

How 5G is taking shape

5G RADIO INTERFACE

A VIRTUALIZED SYSTEM

NETWORK SLICING

NEW USE CASES AND

BUSINESS MODELS

5G IS NOT SO FAR AWAY

Where Telecom Italia is currently moving to

Wide LTE coverage

LTE-Advanced started

Fiber nearer and

nearer to the customer

Process of network

virtualization/SDN

already started

Development towards

a Digital Telco

Paradigm (e.g. Digital

identity, m2m, Sky…)

4

5G: myth and reality

What do we expect from 5G ?

Daniele Franceschini - Technology, Development Plans & Cost Analysis

DO WE NEED A BOOST IN TECHNICAL PERFORMANCE TO FACE THE KEY CHALLENGES

12-36 months 1-3 months

Fit most of service needs at

least at Macro layer

WHAT DO WE NEED MORE?

3Gbps 225Mbps

20 ms 10 ms

DL bitrate

Ping Latency

Launching a

new service

Time

Process Waterfall Fail to success

The ability to continuously provide services for the connected society that we don’t know a priori

A programmable NW to reduce Time to Market and ease technology deployment&decommissioning

New Service Creation Cycle (Beta version model), Flexibility, NW Capability to react quickly

5

5G: myth and reality

Network and IT Tranformation Journey

Daniele Franceschini - Technology, Development Plans & Cost Analysis

ACCESS

CONTROL LAYER

OSS

BSS

SERVICE LAYER

TOMORROW 5G

LTE AND LTE-A

FIBER FOR BH

VERTICAL

ACCESS\SERVICE

SPECIFIC

TARGET : FULLY PROGRAMMABLE AND REAL TIME NETWORK

SERVICE VELOCITY

AD HOC DEPLOYMENT

PROGRAMMABLE

STANDARD SOLUTION

FULL IP CLOUD RAN

HET NET VIRTUAL RAN

NEW RADIO INTERFACES

FOR AD HOC SERVICE

OSS/BSS «AS A SERVICE»

REAL TIME

TRANSPORT LAYER

TODAY

LAYERED

NETWORK

NFV/SDN

DIGITAL BSS

AGILE OSS

IP TRANSFORMATION

SON

SMAL CELL

90% MACRO CELL

FIBER BACK

AND FRONT

BIG

DATA CLOUD M2M IoT

SMART

CAPILLARY

ONGOING

F

I

X

E

D

M

O

B

I

L

E

L

E

G

A

C

Y

V

E

R

T

I

C

A

L

S

SILOS

MODEL

6

5G: myth and reality

Past experiences have taught us that …..

Daniele Franceschini - Technology, Development Plans & Cost Analysis

Is such a trend still sustainable?

Frequencies are expensive

Deployment investments are relevant

Monetization cycles are slow

A TECHNOLOGY STEP TAKES PLACE ONCE EVERY 8 YEARS

1995

2009

HSPA 7.2

2004

2014

4Gplus

2012

TIM launch

GSM 3G 4G

2000

EDGE

3G Auction: 13.8 B€

2000 2011

4G Auction: 3.9 B€ 700 MHz Auction?

2016-18 ?

AN AUCTION ON FREQUENCIES TAKES PLACE ONCE EVERY 7-10 YEARS

Spectrum

auctions in Italy

And technology stratification remains for long time…

7

5G: myth and reality

Daniele Franceschini - Technology, Development Plans & Cost Analysis

SYSTEM TECHNOLOGY SWAP SHOULD FOLLOW MARKET NEEDS RATHER THAN TECH PUSH

Some Players are pushing to have 5G

ready shortly (2018)

Which is the right timeline and how to

harmonize pushes from different players?

Technology maturity

Competition Demand-side

push

…… and technology transitions have to be managed

In 2002, far from the smartphone era, 3G was not mature yet while EDGE could fit most of mobile data market needs in Italy

1 player started to deploy 3G

All players followed

THE TALE OF EDGE AND 3G

They provided CS voice over WCDMA for years until an iphone came

Isn’t always like that ?!?

…but....

…and....

…so....

A balance is needed

between a few key

factors for a

harmonized

development

8

5G: myth and reality

Pursuing a proactive approach

Daniele Franceschini - Technology, Development Plans & Cost Analysis

STANDARIZATION IS RELEVANT BUT IT IS A PIECE OF THE BIG PICTURE

TRUE STANDARD FRAMEWORK

GUIDING ALL THE ONGOING

INITIATIVES ON VIRTUALIZATION

DEFINE A NEW RADIO INTERFACE

TO FIT SPECIFIC SERVICE AND

MARKET NEEDS FOR

LOCALIZED COVERAGE

IN PARALLEL DEFINE USE CASES

THROUGH FIELD INITIATIVES

A VIRTUALIZED SYSTEM

NETWORK SLICING

NEW USE CASES AND

BUSINESS MODELS

5G RADIO INTERFACE ► MULTITUDE OF IoT

DEVICES

► EXTREME LOW

LATENCY

► EXTREME BIT RATE

PICO

► D2D

► OSS

► BSS

► NETWORK

► IT

► BIG DATA

► CLOUD RAN ► FACTORY AUTOMATION

► MISSION CRITICAL (e.g.

PUBLIC SAFETY)

► CAPILLARY NETWORKS

Identity

& Security

Omnichannel

Experience

Big Data

Traffic

Explosion

M2M &

IoT

Always

Connected

9

5G: myth and reality

Telecom Italia Vision on 5G

Daniele Franceschini - Technology, Development Plans & Cost Analysis

5G WILL ENCOMPASS CURRENT AND NEW SOLUTIONS TO COVER A MULTITUDE OF USE CASES

5G IS THE COMPREHENSIVE ENABLER OF THE

FULLY CONNECTED DIGITAL SOCIETY

Inclusion of current and new

access technologies

Evolved real Time

programmable network

Open Service Layer for web

services coopetition scenarios

Cloud

Services

5G RADIO

INTERFACE

Lte MACRO

IT and Network virtualization

SON

NETAPI CONTROL

BSS OSS

BIG DATA

Digital factory Service Layer

Hybrid Cloud

RADIO

OSS

NETWORK

BSS

SDN

SERVICES STANDARD 5G

FRAMEWORK

STANDARDS

RESEARCH FIELD TRIALS

CONTINUOUS

DEVELOPMENT

Grazie