Business Drivers for Selecting LTE Technology

HSPA+ & LTE Executive Briefing, Jan 27, 2009Hank 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 worldwidetechnology 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 communityCDMA community

Projected Broadband Growthns

)ns

(mill

iobs

crip

tion

Su

S O St t A l ti E iSource: Ovum, Strategy Analytics, Ericsson

Projected Traffic Growth

600

700

Aggressive 3G/4GData Traffic

400

500Growth

200

300

1 corresponds to 2007 2G Data Traffic

Conservative 3G/4GData Traffic Growth

0

100

1

20Voice Traffic Growth

2G Data Traffic Growth

0

5

10

15

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

AO - 12/17/07Source: AT&TSource: AT&T

Source: Peter Rysavy, 3G Americas

LTE Subscriber Growth ForecastsM

illio

ns

ABI Research

Analysys Mason

Devices Primed For Embedded WirelesseReader• On the go access to books• Simple out of the box experience

Picture Frame• Push photos to Grandma• No setup required

CarPNDs• Real Time Traffic• Points of Interest• Web Search

• Diagnostics & Safety• Web Surfing• Real Time Traffic• Internet Radio

The Network

Digital CamerasBackup Photos Gaming Devices• Backup Photos

• Limitless Memory Card

Media Player• Internet Radio

MID & UMPC• Web Browsing

Ga g e ces• Multiplayer Games• Access to game

downloads

• Internet Radio • Web Browsing

Profitability demands lower price per MByteMByte

Source: Nokia-Siemens

LTE Lowers Opex Dramatically

UMTS HSPA (2 X 5MHz) LTE (2 X 5MHz)Theoretical average throughput 128-384 Kbps 1 Mbps 4 Mbps

Theoretical maximum throughput 2 Mbps 14 Mbps 20 Mbps

Monthly downlink traffic 230 TB (5MHz)500 TB (10MHz)

500 TB 1800 TB500 TB (10MHz)

Typical cost per (downlink) megabyte at maximum use of

E 0 6 E 0 3 E 0 1network Euro 0.6 Euro 0.3 Euro 0.1

Source: Analysys Research 2007

OFDM: Delivering the Data

OFDM Advantages• Copes with severe channel conditions

OFDM Trucking Companyp

• Robust against narrowband interference

• Can be deployed across various frequency bandsbands

• 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 CapacityThroughput and Capacity

Encoder Decoder

Source: 3G Americas

LTE: Spectrum Flexibility and EfficiencyEfficiency

LTE to operate in 1.4, 1.6, 3, 3.2, 5, 10, 15 and 20 MHz p , , , , , ,bandwidths

Significantly improved spectrum efficiencySignificantly improved spectrum efficiency

Do nlink target (bits/sec/H /site)Downlink target (bits/sec/Hz/site)

• 3-4 times that of Release 6 HSDPA

Uplink target (bits/sec/Hz/site)

2 3 times that of Release 6 enhanced uplink• 2-3 times that of Release 6 enhanced uplink

LTE Cost Advantages for GSM OperatorsOperators

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 ArchitectureUMTS

Circuit SwitchedCore Network

RNC2MSC

Packet SwitchedCore Network

RNC1 SGSNNode B

lub interface lu-ps interface

Core Network

ENode BLTE

Evolved PacketCore Network

S1 InterfaceENode B Source: UMTS Forum

Latency Improves with 3GPP EvolutionEvolution

Source: Peter Rysavy, 3G Americas

Sector Throughput (Capacity)

Downlink 4X4 12 24 484X4 12 24 48

7.85 15.73.7Downlink 2X2 31.4

1.9

Downlink 1X1

Carrier2.25

Uplink

BW/MHz

0.8

3.7 6.3512.7

1.25 5 10 20

1.451.3S M t l NAT

LTEHSPA+HSPASources: Motorola, NAT, Peter Rysavy, CDG

IMS: IP Multimedia Subsystem The Platform Driving ConvergenceThe Platform Driving Convergence

Network

3GPP Evolution

HSDPA HSPA HSPA+

LTE

2006 2007 2008 20102009AT&T/UMTS Forum

Clear Path to 4G/LTE AT&T Network Technology TimelineAT&T Network Technology Timeline

Initial HSPA+ Initial LTEHSPA

Initial HSPA+ Trials LTE Trials

Initial LTE Deployment

2008 2009 2010 2011

Page 18

Source: AT&T

LTE Targets

•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

High data rates

• User plane: Less than 10 ms (RAN RTT)• Control plane: Less than 100 ms (idle → active)Low latency

• Three times HSPA R6 baseline• Improved performance for broadcast services

High spectral efficiency p pefficiency

• Less signaling, auto-configuration of eNodeBSimplicityp y

• Deployable in a wide range of different spectrum allocations of different sizesSpectrum

flexibility • Unpaired and paired spectrum, variable duplex distanceflexibilitySource: Ericsson

A Global Commitment to LTE

Thank you!

HSPA+ & LTE Executive BriefingHank Kafka, Vice President, Network Architecture, AT&T