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    Motorolas UTRAN Sharing Feature

    WHITE papEr

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    WHITE PAPER: Motorolas UTRAN Sharing Feature

    IntoductionA key enabler for mobile broadbandis the wide availability of HSxPAnetworks, which offer clear benefits interms of both subscriber experienceand reduced cost per bit of datadelivered [compared to R99 UMTS].HSxPA is recognized as the mostnatural and almost risk-free upgradepath for UMTS networks in termsof the benefits it brings over its

    R99 UMTS predecessor. However,the challenges of network roll-out,ongoing cost of service, acquiring andthen retaining subscribers can leadservice providers to taking alternativeapproaches to their next generationbusiness models.

    The initial rollouts of UMTS were challenging and

    costly, not least because the technology was

    new and of course there was no direct subscriber

    revenue to offset any of the costs. A few years on,

    however, and the widespread availability of HSDPAnetworks and mobile devices coupled with the

    improvements this capability brings to the subscriber

    experience has led to UMTS/HSDPA subscriber

    numbers increasing at a rate in excess of five million

    per month [GSA.com, March 2007].

    Motorolas UTRAN

    Sharing Feature

    However, worldwide many networks are yet to bedeployed, in particular those in emerging markets.

    Similarly most networks are built out based on

    teledensity (providing coverage for larger populations

    per square kilometer such as towns and cities) and

    now service providers are, for licensing reasons,

    required to provide coverage for rural environments.

    In both cases, the return on investment is likely to be

    a challenge.

    Where this is the case, sound business practices

    prevail, meaning that any investment is scrutinized

    and carefully managed. However, where UMTS/

    HSxPA coverage is rolled-out as a requirement

    of the license conditions the service provider hasfew options.

    Motorola is renowned for its innovative UMTS/

    HSxPA solutions aimed at enabling service providers

    to relatively easily and cost-effectively expand their

    networks, not only in monetary terms but also in the

    ease of siting and site re-use. This is best illustrated

    by Motorolas Zero Foot Print solution, which is a

    very compact macro solution that allows easy and

    rapid siting of UMTS/HSxPA capability in GSM or

    other existing sites.

    Motorola has various solutions that will minimize and

    help manage investment in these situations. This

    paper outlines one of those solutions, Motorolas

    UTRAN Sharing feature, which is available now.

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    WHITE PAPER: Motorolas UTRAN Sharing Feature

    A High Profile Example

    The Tke-awy

    The important take-away from such agreements

    is that the network sharing has, to date at least,

    only occurred in sparsely populated regions where

    teledensity is very low and the business case for

    UMTS/HSxPA deployment is weak. The reason for

    providing coverage in rural areas is to meet license

    conditions not for profitability. It is worth noting

    that, without license conditions specifying that

    networks must provision for population coverage,many semi-rural and rural areas would not have

    any UMTS/HSxPA coverage at all. The benefit

    that network sharing brings is that the burden of

    providing coverage to such areas can effectively

    be shared.

    Vodfone nd Onge to she UMTS

    netwoks in the UK

    Thursday 8 February 2007 Vodafone Group and

    Orange announced a plan to combine their UMTS

    mobile networks in the UK in a bid to cut costs and

    increase coverage, the first deal of its kind by UK

    service providers.

    Understandably the companies expect to reduce

    capital and operating expenditure, in particular arisingfrom the reduced number of sites. From a different

    viewpoint, sharing networks also means fewer

    mobile phone masts, easing site acquisition issues,

    benefiting the environment and overcoming some of

    the planning constraints associated with new sites.

    Additionally, Vodafone said the deal would improve

    mobile coverage for some 30 million customers,

    especially in rural areas, and lead to the faster roll-out

    of high-speed services and products.

    This is nothing new. In November 2006, the two

    companies entered into a similar network-sharing

    arrangement in rural Spain, covering the sharingof some 1000 UMTS sites by 2007, in towns with

    populations of less than 25,000; the number of

    shared sites is set to rise to 5,000 over the next

    three years.

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    WHITE PAPER: Motorolas UTRAN Sharing Feature

    3. Common shared networks here service

    providers build and operate a common UMTS/

    HSxPA network comprising of the UTRAN, SGSN,

    VLR and MSC. However the GGSN, HLR, Gateway

    MSC, Billing systems and subscriber databases,

    etc., must all be kept separate. The main

    advantage of this arrangement is that the service

    providers can share a single frequency/license

    where capacity demands are low thereby enabling

    cost effective delivery of UMTS/HSxPA services

    4. Geographically split networks in this scenario

    each service provider builds and operates its own

    network in different geographical areas; coverage

    is provided and the continuity of service achieved

    by roaming agreements between the various

    service providers. 3GPP Standards allows for up to

    five service providers to operate in this manner.

    5. Mobile Virtual Network Operators (MVNO) provide a mobile service but do not have any

    spectrum of their own. An MVNO uses the

    network infrastructure (to varying degrees)

    of a service provider that has spectrum and

    infrastructure.

    Netwok Shing:

    The Bsics nd the Benefits

    Currently most service providers support both GSM

    within the 900/1800MHz spectrum and UMTS/

    HSxPA within the 2100MHz spectrum. This maychange in the future as interest is increasing in the

    potential re-use of the dominant 900MHz GSM band

    for UMTS/HSxPA with a view to improving coverage

    and building penetration capabilities.

    In the meantime, telecom equipment vendors are

    cognisant of the need to streamline and combine

    their product portfolios by offering hardware (Core

    Network, HLR etc.) and software platforms (O&M/

    NMC) to support both the GSM and UMTS/HSxPA

    under a common platform. The combined platforms

    offer increased cost savings by reducing logistics,

    inventory management, support, maintenance and

    training, etc.

    Most synergies deliver benefits. Developing this

    from the use of common platforms across

    technologies into common platforms between

    service providers is the next step in the enabling

    widespread and cost effective coverage.

    From the service providers perspective, the basic

    goals and reasons for network sharing are to:

    1. Fulfill regulatory / licensing requirements

    for coverage

    2. Reduce network CAPEX for lower traffic

    environments (lower carrier costs)

    3. Reduce transmission costs and OPEX.

    3GPP Standards and individual country regulatory

    conditions commonly allow for network sharing of

    the RAN access technology but physical separation

    at the HLR and Core/Switch. In reality, the service

    provider has a number of ways by which to realize

    network sharing. These are:

    1. UTRAN Sharing the subject of this whitepaper.

    The 3GPP Standards Release 6 UTRAN Sharing

    feature phase 1, maximizes radio capacity and

    enables multiple service providers to effectivelyshare the UTRAN (Node B and RNC components)

    with the RNC(s) routing calls to up to four different

    service providers Core Networks

    2. Site sharing service providers typically share

    the site, mast and ancillaries but each service

    provider deploys their own Node-B equipment.

    Benefits here are cost savings due to reduced site

    acquisition and build-out costs, and the fact that

    the individual service providers retain control over

    their respective Node Bs

    ... enabling widespread and

    cost-effective coverage

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    WHITE PAPER: Motorolas UTRAN Sharing Feature

    Motorolas Horizon 3G-n macro platforms support

    up to 12 carriers (4C3S). This capability allows the

    hardware to readily support up to two service

    providers utilizing their two frequencies over three

    sectors; alternatively it could support up to four

    service providers operating on a single frequency.

    Each service provider is independently able to deploy

    different features by setting parameters at a cell leve

    to the extent that different performance algorithms

    and services may be operated by the service

    provider by setting the appropriate cell parameters.

    The solution also comprises a shared Master OSS,

    which manages common O&M functions such as

    software upgrades and system configuration etc.

    Furthermore, it provides a standard northbound

    interface to each service providers NMS system

    and independent access to cell-level performance

    management and fault management details, thusallowing maximum flexibility.

    A second phase of UTRAN sharing is introduced in

    USR7 when additional functionality is enabled. Here

    the UTRAN sharing functions are physical shared

    but logically split into two UTRAN for two different

    service providers. The feature allows carriers to

    be dedicated to the different service providers,

    each having their own PLMN, fault management,

    performance management and configuration

    management capabilities, and moreover retains the

    ability to deploy features unique to each network.

    Motools UMTS/HSxpa UTraN

    Shing Fetue

    Motorolas UTRAN sharing feature, UTRAN sharing

    connected-mode, has been available since the

    release of Motorolas industry leading UMTS/HSxPAportfolio and software release USR4.

    Fulfilling the 3GPP R5 requirements, this feature

    enables UTRAN sharing between different service

    providers for users in connected-mode (users in

    idle-mode are managed by the core network and

    sharing agreements for roaming). In connected-

    mode, mobility is handled by the UTRAN as it

    does not have the necessary information, such as

    roaming agreements, to provide a consistent access

    restriction handling.

    Motorolas USR6 sees the launch of active UTRAN

    sharing. Active sharing, as opposed to passivesharing, involves sharing Node B and RNC base-band

    and processing capabilities thereby reducing CAPEX.

    This feature allows for all UTRAN elements to be

    physically shared. By soft-splitting a physical

    UTRAN into a different logical UTRAN, multiple

    service providers are able to cover the same area

    with their own frequency with a single physical

    UTRAN. Each service provider deploys its own

    frequency including its own Mobile Network Code

    (MNC) and each service provider has individually

    assigned cells. The RNC routes the mobile according

    to the cell or MNC and MCC derived from the IMSI

    and the Network Resource Identifier (NRI) derivedform TMSI/P-TMSI, when Iu-Flex is used.

    Figue 1 - UTraN Shing

    solution chitectue

    Operator A

    CN

    Operator B

    CNOperator A

    OSS

    Operator A

    OSS

    Shared Master

    OSS

    ltf-N lu interface

    RNC

    lub interface

    Macro

    Node B RRU

    Shared RAN

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    WHITE PAPER: Motorolas UTRAN Sharing Feature

    The Cost of Site acquisition nd Build

    Table 1, below, shows typical generic costs

    associated with UMTS/HSxPA cell site acquisition

    and build; it does not include any Fixed Network

    Equipment (FNE), Ancillary Network Equipment(ANE) or Services related costs, on-going or

    otherwise. The total nominal cost of acquiring

    and building a Greenfield outdoor site is in excess

    of $93,000 whereas a Brownfield indoor site, by

    comparison is likely to be around $31,000.

    Clearly sharing sites and costs associated with them

    makes business sense especially where ROI is likely

    to be challenging; the UTRAN sharing feature assists

    in this goal.

    Site acquisitionGeenfield Bownfield

    Indoor Sites Outdoor Sites Indoor Sites Outdoor Sites

    Typical HSxPA Site Acquisition Costs $19,800 $20,250 $8,850 $9,600

    Site ConstuctionGeenfield Bownfield

    Indoor Sites Outdoor Sites Indoor Sites Outdoor Sites

    Typical HSxPA Site Construction Costs $8,530 $25,414 $7,923 $6,829

    FNE InstlltionGeenfield Bownfield

    Indoor Sites Outdoor Sites Indoor Sites Outdoor Sites

    Typical HSxPA FNE installation OPEX $5,625 $7,725 $4,350 $6,456

    Typical HSxPA FNE installation CAPEX $12,222 $40,029 $9,782 $22,589

    annul recuing OpEXGeenfield Bownfield

    Indoor Sites Outdoor Sites Indoor Sites Outdoor Sites

    Typical HSxPA Annual Recurring OPEX (Urban) $4,560 $5.700 $2,440 $3,730

    Typical HSxPA Annual Recurring OPEX (Suburban) $3,360 $4,200 $1,690 $2,605

    Typical HSxPA Annual Recurring OPEX (Rural) $2,000 $2,500 $840 $1,330

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    WHITE PAPER: Motorolas UTRAN Sharing Feature

    Summy

    The dominant reason for service providers sharingdominant reason for service providers sharingsharinging

    networks is the cost-effective fulfillment of licenses is the cost-effective fulfillment of licenseis the cost-effective fulfillment of licensecost-effective fulfillment of license

    coverage conditions. When effectively implemented,

    network sharing can save up to 40% of CAPEX andOPEX, in particular when networks are extended

    into less populated areas and where return on

    investment is likely to be challenging. Network

    sharing is also applicable during the initial roll-out or

    coverage phase, although in most instances to date,

    service providers have generally opted to build out

    independent operations during this phase.

    That said, new entrants into UMTS/HSxPA

    operations, particularly those in emerging markets,

    may find it advantageous and beneficial to consider

    network sharing as an option at the outset of their

    business activities.

    There are a number of ways by which service

    providers can share a network from a physical

    viewpoint, based on regulatory requirements and

    their own business model. Service providers are

    able to share UTRAN hardware while retaining

    "ownership" over individual logical areas such as the

    Core and HLR etc. and operating frequencies. This

    allows for each service provider to retain a degree of

    autonomy from the other and allows for the upgrade

    of sites as each sees fit, based on capacity demands

    relating only to their specific frequency allocation(s).

    The combination of meaningful cost savings, faster

    network roll-out and coverage enhancements,

    will not only help service providers met license

    conditions but is likely to lead to the increased

    adoption of UMTS/HSxPA services and ultimately

    the success of the service providers involved.success of the service providers involved.of the service providers involved..

    Motorola is renowned for delivering the very latest

    technologies in the most cost effective manner. To

    these ends, Motorolas UTRAN sharing functionality

    is available now. It is capable of supporting for up to

    four service providers and accomplished via softwar

    upgrade without the need for hardware modification

    Want to find out more? For furtherinformation on this and all MotorolasUMTS/HSxPA solutions, please callyour local Motorola representative

    who will be delighted to assist.

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    www.motorola.com

    The information presented herein is to the best of our knowledge true and accurate. No warranty or guarantee expressed or implied is made regarding the capacity, performance

    or suitability of any product. MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and Trademark Office. All other product or service names are the property of

    their registered owners. Motorola, Inc. 2007 0507networksgms

    Tems nd aconyms

    3GPP: 3G (Third Generation)

    Partnership Project

    ANE: Ancillary Network

    Equipment

    CAPEX: CAPital EXpenditure

    FNE: Fixed Network Equipment

    GGSN: GPRS Gateway Support

    Node

    GPRS: General Packet Radio

    Service

    GSM: Global System for Mobile

    Communications

    HLR: Home Location Register

    HSUPA: High Speed Uplink

    Packet Access

    HSDPA: High Speed Downlink

    Packet Access

    HSxPA: High Speed Uplink/

    Downlink Packet Access

    IMSI: International Mobile

    Subscriber Identity

    MNC: Mobile Network Code

    NMS: Network Management

    Solution

    NRI: Network Resource

    Identifier

    OPEX: OPerational EXpenditure

    OSS: Operations Support

    Systems

    PLMN: Public Land Mobile

    Network

    R99: 3GPP Standards Release99

    RNC: Radio Network Controller

    ROI: Return on Investment

    SGSN: Serving GPRS Support

    Node

    TMSI: Temporary Mobile

    Subscriber Identity

    UMTS: Universal Mobile

    Telecommunications System

    UTRAN: Universal Terrestrial

    Radio Access Network

    VLR: Visitor Location Register

    http://www.motorola.com/serviceshttp://www.motorola.com/services