lte world summit 2012 day 1 t2 jamie lluch telefonica

Jaime Lluch

LTE World SummitMay 2012

Providing a Superior level of QoS through femto/small cell deployments

Telefónica S.A.

IndexGlobal Trends in the Market and the Industry

01

02

03

04

LTE Small Cells Strategy within Telefónica

LTE Small Cells – Major Challenges

Summary

01Global Trends in the Market and the Industry

4Global CTOTelefónica S.A.

The world is today a Networked Society, and it will get more and better connected every day …

And telecommunications are the basis and the enabling factor for the Networked Society

� Increasingly powerful devices

� Social networking

� Huge increase of digital contents

� User Generated Contents

� Hundreds of thousands of applications

� e-World: e-Health, e-Learning, e-Financial Services, e-Travel

� M2M : smart metering, e-Car, e-Logistics, vending

� Everybody and everything connected

The new environment which drives demand The great digital opportunity

From Internet of People to Internet of Things

Devices

50

5

0.5

Bn 50,000 M

1875 1925 1950 2000 202519751900

0

PeoplePlaces Machines

Customers

Apps. &Services

Devices

Traffic

01


We are taking a step toward a hyper-connected society

[1] Appsfire. 2011 data. [2] INE Data 2011. [3] [4] [5] La Sociedad de la Información en España 2011. Fundación Telefónica.

Communication is evolving

Longer ( +time) [1]

Daily average time spent on activities on smartphones

Young people in Spain use 4.2 channels on average

(3.3 in 2010) [4]

Using more devices [2] With more people

More locations/placesUsing more channels

Average number of contacts (regular relationships) [3]:

Fixed voice: 7.2Mobile voice: 10.3Social Network: 25

A new kind of customer is arising

“Always-on digital communicator”

84’• 40’ new activities

(maps, games, SSNN)

• 27’ phone, skype, SMS

• 10’ apps web and web

• 7’ e-mail

98.5%25.4%

13.5%3.8%

connected devices at home

01


While accessing the digital world through more devices

[1] La Sociedad de la Información en España 2011. Fundación Telefónica.%

peo

ple

cons

umin

g ea

ch c

onte

nt

Multimedia GamesBooks

Magazines Web

Multidevices consumption of content [1]

Others

A middle class person will have

10 devices connected to the network

1 2 3 10

Video enabled

HD screens

New categoriesAbility to handle

quality video

Devices more powerful

50,000 M devices connected to Internet

(9,000 M in 2010)

M2M – Internet of things All TV connected

Almost every Tv set will be connected to the Internet

01


1. From the customer side, we expect current developments in devices to introduce newdemands on networks and condition their future evolution. V ideo will be a majorshaper of network needs . Video will be personalized and interactive.

2. Additionally, the network will have to manage a dramatically increased number ofconnected devices , as the Internet of Things / M2M market develops

3. Customers increasingly use our networks from wireless devices, connecting to eitherfixed or mobile networks seamlessly. Higher integration of fix and mobile accessnetworks required from a customer perspective .

4. Network coverage and provided customer experience are becoming a key differentiationfactor to compete. Indoor mobile customer quality and capacity to be the long-t ermmain challenges

Main inputs from customer and industry trends01

Evolution to LTE and new rollout approaches based o n higher capillarity and density access networks (Small Cell s) to become the

main network driver for the next years


02LTE Small Cells Strategy within Telefónica


Network Evolution in a NutshellNeed for extending MBB coverage and enhancing QoE02

PopulationCoverage

HSPA

HSPA+HSPA+

Dual-Cell

LTE macro

HSPA+/LTE (single network with two

technologies)

10 Mbps

25 Mbps

Average User throughput

In 5 years

1 Mbps

0,15 Mbps

2,5 Mbps

5 Mbps

Data coverage to be extended to wide area coverage (by means of LTE800 and HSPA+900)

HSPA+ evolution delivers limited enhancement for customers except for dual-cell. Evolution based on SW

upgrade

1

1,2 Mbps

To maintain user throughput, additional sites and densification is

required (capacity)

Macro densification challenging onto bigger cities – Small Cells

approaches

EDGE

GPRS

Higher network densification

Small Cells rollout

0,05 Mbps

Evolution of fixed access and WiFi as integral part of

mobile networks

Today

2

3

4

Small Cells are integral part of Telefónica Network Evolution Strategy


0

50

100

150

200

2000 2005 2010 2015

Cumulative Average Site Throughput (Mbit/s) x8

High Traffic density areas will demand a new rollout approach02

0

10000

20000

30000

40000

50000

60000

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015 2016

Data Traffic (Mbps)

Voice Traffic (kErlangs)

Year Peak

Cellular Voice & Data Forecast Build Targets (2010-2016)TDF 30.1 + Extrapolation

2G Voice

3G Voice

Total Voice

2G Data

3G Data

Total Data

Data is expected to increase in urban areas by a factor of 50x

x50

…while macro network capacity evolution will only grow by a factor of x8

Small Cells are the solution within Urban

AreasHSPA

2G 3G HSPA+

LTE

LTE-A


LTE Small CellsMajor Challenges

03


• Deploying of Small Cells in HetNet scenarios requires of tight interference coordination between macro and micro l ayers� Long term view is that disjoint hard spectrum allocation between macro and

micro is not desired but Rel.10 and Rel.11 functionalities shall play very relevant role

• Carrier-aggregation based eICIC (frequency-based )• Non Carrier-aggregation based eICIC (time-based )

� eICIC will not be commercially available until 2013-14 timefra me, and even then:

• Impact on legacy devices to be evaluated• Multi-vendor scenario not clearly envisioned (X2 inter-operability

between vendors)

LTE HetNet Scenarios – Spectrum coordination03

X2

X2X2

X2X2

S1S1

S1

EPC

Network Management

Small Cell NMMacro NM

S1

X2

SONSON

SON

1Required information for

macro/Small Cell coordinationis exchanged via X2

Requires multi-vendor X2 Interoperability

1







between vendors)


X2

X2X2

X2X2

S1S1

S1

EPC

Network Management


S1

X2

SONSON

SON

2

2Required information for macro/Small

Cell coordination is exchangedNetwork Management / SON

Is this option dynamic enough toenable interference/spectrum usage

coordination?

X

X







between vendors)


X2

X2X2

X2X2

S1S1

S1

EPC

Network Management


S1

X2

SONSON

SON

3

3Autonomous operation on the small

cell layer – Frequency SelectiveScheduling and specific features toenable spectrum usage efficiency

What is the impact on performance?

X

X


• Self Operating Network is key for Small Cells rollou t• From thousands of macros to hundreds of thousands of small cells implies a big Operational

challenge.• SON to be key, and in a coordinated manner across all layers and within multiple vendors.

• Automatic Cell Integration - Automatic Neighbor Relationship (ANR), inter-RAT for 2G, 3G and LTE, Automated PCI (Physical Cell Identity) selection

• Capacity and Coverage Optimization – Load Balancing between layers, frequencies and technologies, mobility management, handover optimization, drive testing minimization, etc.

• Energy efficiency – cell selective switch-off, transmission power dynamic adjustment, etc.• Interference reduction and coordination .• Network Operation & Maintenance• etc.

LTE HetNet Scenarios – SON

SON features and enhancements are considered key for enabling efficient Small Cell rollouts

Inter-vendor and multi-technology interworking required

SON features and enhancements are considered key for enabling efficient Small Cell rollouts

Inter-vendor and multi-technology interworking required

03


Low-cost backhaul is key for Small-cells

• Where Fibre is available and can easily be provided, it shoul d bethe primary backhaul option for microcells – long-term micro-cellbackhaul capacity requirements are met.

• Alternative low-cost backhaul is key for both targeted & bla nketmicro deployment => solution should meet today’s microcellbandwidth requirements while promising to meet future bandwidthrequirements via hardware/software improvements required whereaccess to low-cost fiber is not available

• These solutions must also be easy to deploy i.e. minimal civi lworks � at most installation of a CPE should suffice to set-up thebackhaul

03

A complete set of solutions to be available within Operators toolbox for efficient combination within small cells rollouts i ncluding fiber, copper and

radio

A complete set of solutions to be available within Operators toolbox for efficient combination within small cells rollouts i ncluding fiber, copper and

radio


LTE Small Cells infrastructure requirements03

vs.

Mechanical and environmental integration is a key enabler for massive Small Cells Rollout !!


04Summary


Summary

• Network society evolving from connecting places, to connecting people and now to connecting devices imposing significant challenges onto existing and future networks� Number of simultaneous connections, capacity, QoE requirements, ubiquity, always-

on, etc.� Device evolution making it happen.

• Within network strategy, higher capillarity RAN is a key element to cope with increasing requirements.

• Nevertheless, significant challenges are still in place for effic ient Small Cells rollout� Spectrum management and interference coordination.� Real and advanced Self-Organizing Networks integrating multiple layers.� Backhaul alternatives.� Infrastructure requirements.

04

lte world summit 2012 day 1 t2 jamie lluch telefonica

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