transitioning to lte business and technical considerations

8/6/2019 Transitioning to LTE Business and Technical Considerations

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Transitioning to LTE: Business and Technical Considerations

Presented by: Alcatel-Lucent

Kyle: Hello and welcome to today’s live chat Transitioning to LTE: Business andTechnical Considerations, brought to you by Alcatel-Lucent. Please submit yourquestions now!

Pat: Please note: Attendees on today’s call will receive a copy of Alcatel-Lucent’s soonto be published white paper, "The Keys to Making a Successful Transition to LTE".

1. Question: Does LTE radically change how services are structured and sold, or is itlargely just a matter of faster, better?

Answer by Jay: Thank you for your question. LTE transformation offers the opportunityof how services, including new IP-centric services, are packaged and sold. It also offers

the network service provider the opportunity to improve cash flow over time by focusingon meeting more aggressive KPIs than what current 3G networks can provide.

2. Question: Are most LTE-related revenues going to be generated by the traditionalsmart phone/wireless modem market, or are we going to see a lot of other use cases aredriving a significant amount of new revenue?

Answer by Jay: It depends on the network operator’s business. For operators thatoffer both wireline and wireless services, the IP-centric architecture offers theopportunity to deploy converged appls that drive both wireless and wireline devices,even at the same time. The next generation of high-bandwidth services arrives a lotfaster when you pool the strengths and resources of global leaders and innovators in

infrastructure, devices, applications and content. That’s the idea driving the ng ConnectProgram. Visit our website for more details: http: //ngconnect.org/

3. Question: But what about existing OSS/BSS infrastructure? Does that get scrappedor can we integrate what we’ve invested in going forward?



Answer by Nisar: existing OSS/BSS can be used to support LTE. Of course itdepends upon the specific OSS and BSS. Most carriers currently in trial are reusing theirsystem and developing interfaces to new LTE elements.

4. Question: When exactly can we expect to see LTE handsets in the market?

Answer by Nisar: USB dongle are already available and used in the first LTEcommercial launch. Smartphones are expected early 2012. Alactel-Lucent is stronglyinvolved with Tier 1 device providers to run IOT and is also provided services forcustomized interoperability test for operators.

5. Question: What are the requirements for the network transmission in LTE(Bandwidth per user or station and synchronization precision in parts per billion)?

Answer by Nisar: Radio site backhaul will have to evolve to cope with LTE higherspectrum efficiency. Depending on radio bandwidth and MIMO scheme the requiredbandwidth per site will range from 50 Mbps to more than 350 Mbps, definitively requiringupgrade to Ethernet backhaul or Microwave packet radio from traditional T1.

Synchronization requirement for LTE is the same as for 2G or 3G technology.

6. Question: How to re-allocate using frequency band between DVB-T and LTE?

Answer by Nisar: Could you clarify what do you mean by DVB-T reallocation: do youmean frequency "white space" in the 700-800 MHz or the Digital dividend from AnalogTV?

7. Question: DVB-T UHF occupies from 470~862MHz, but LTE operated from698MHz. There must be interference with each other. How to avoid such worse case?

Answer by Nisar: Thanks for clarification. Alcatel-Lucent is actually performing some

field trials with operators to further assess the level of filtering required to minimize theinterference between the two systems. Note as well that some bands have been definedby standard bodies in "reverse" duplex in order to have easier filtering at site level thanhandset/device level.

8. Question: How has forecasting infrastructure investments changed with 4G? Howcan we gauge if we’re building out too much or too little, and is there a way to minimizethese risks?

Answer by Jay: Initial forecasting infrastructure will follow a legacy planning in termsof coverage. However, this will quickly ramp up to an approach of forecasting based ontraffic usage patterns. ALU has award winning tools and deep expertise in assessing

and optimizing networks and stands ready to help as new applications appear and drivenetwork capacity planning needs.

9. Question: What are the benefits of ALU’s approach to LTE?

Answer by Jay: We offer a combined business and technology approach tounderstanding the network service provider’s specific benefits that LTE transformationcan provide. Our focus is to work directly with the CXO community to first understandwhat each part of the business is expecting from LTE. That includes Sales & Marketing,



Network Architecture, Operations, and Finance. We offer an initial one-day workshop tohelp the network service provider rate and rank order expectations of LTE transformationto then help the customer understand the parameters for its own LTE transformationbusiness case. This includes not only the equipment requirements, but also thesurrounding integration work that is needed. Finally, our focus gets down to a market-by-market analysis for the network service provider.

By partnering with ALU, the network service provider can also leverage ourexperience in over seventy (70) IP network transformations on a global basis involvinghundreds of ALU experts. We also offer tools and associated methodologies that arefocused to LTE transformation such as our world-class Wireless Spectrum Optimization(WSO) tool for recommending re-allocation and re-farming of spectrum.

10. Question: Deals like Kindle’s WhisperNet and Redbox connectivity have workedout well, providing easy revenue without a lot of hassle. Will we see more productizedofferings with the higher 4G speeds coming online, and where should we be looking toaggressively sell those kinds of offerings? Any opportunities in particular you see?

Answer by Nisar: Operators need to look at new business models including offeringservices from cloud computing. Yesterday, I heard a few industry analysts banteringabout the robust market for health monitoring, however tackling that market will requirebuilding a relationship with the insurance market to capture the value of drastic potentialreductions in health care costs.

11. Question: What are some of the non traditional costs to consider when moving toLTE?

Answer by Jay: Traditional costs associated with moving to LTE include typical EF&I(engineer, furnish, and install) from the RAN into the Core. Other (non-traditional) coststo consider include: opportunity to upgrade Core to IMS to support new revenue

streams across converged wireless/wireline (NG) networks, running two parallel wirelessnetworks in a given market for a certain amount of time; OSS/BSS integration; and earlyretirement of existing wireless network infrastructure. Offseting these incremental costsare benefits from cost reduction including more effective spectrum utilization and powerconsumption, as an example.

12. Question: How big a potential threat is network congestion down the road ifconsumers do adopt LTE en masse for their home and business connections? Couldservices like Netflix mean swamped connections in a year or two, and what does thatmean for the policies we create today?

Answer by Nisar: LTE differentiator is the high bandwidth and IP at the edge. Today

the congestion issue is more of an issue at edge. However, your point is well taken - wecan look at the recent past. For instance EVDO roll out has seen 10% growth on monthlybasis for several carriers. With higher bandwidth at the edge one should expect greaterdemand on capacity planning.

13. Question: How extensive is Alcatel-Lucent’s involvement in the build out of LTEsystems?



Answer by Nisar: Wifi and fixed DSL/Cable are definitively compliment to LTE.Operators want to deliver the best connection any time to the end users and all thoseaccess techniques will be used depending on user connection context (location, Time ofDay, status of the network, connected device, application). Anyway, Alcatel-Lucent is notconsidering heavy investment in WiFi hotspot today as the best move because LTE will

provide equivalent performance for static user and obviously much better for mobility.

20. Question: What is the market adoption curve looking like? When will we see laptopdevices start selling? When will we see LTE phone adoption? When will it be seen asthe standard vs. 3G?

Answer by Jay: Market Adoption Curve Question -- We need to address this pointmarket by market. In the US, for example, we expect to see LTE adoption acceleratequite rapidly, starting with Verizon’s launch of their LTE service offering in December.USB dongles are already available and laptop/netbook/tablet are expected mid nextyear, smartphone following end 2011-early 2012.

21. Question: Do you have any involvement with public safety utilization/deployment ofLTE?

Answer by Jay: We have a number of firsts within the public safety arena. We are veryactive with NIST and have done multiple demonstrations for first responders - see ourpresence in youtube.

You may also be interested in our recent announcement: Alcatel-Lucent andAlexandria Police Department present US first Public Safety Broadband spectrum LTEdemonstration Delivering Next-Generation Mission-Critical Communications. You mayalso be interested in ALU’s Public Safety and Defense Solutions Minimizing risk iscritical to maintaining public safety and security, and protection and response are

essential when crises occur. Alcatel-Lucent specializes in providing flexible safety anddefense solutions for high-pressure situations. Drawing on our networking and unifiedcommunications expertise, we help you ensure dependable interoperability betweenagencies and jurisdictions. For more information - please visit our site.

22. Question: Can you give an example of a carrier that chose ALU for their LTEDeployment and why?

Answer by Jay: November 4, 2010 — Verizon Wireless and Alcatel-Lucent todayannounced a four-year agreement expected to be worth US$4 billion for Alcatel-Lucentwireless network architecture and services to support Verizon Wireless’ ongoing 3Gnetwork expansion and 4G/LTE network build out. Alcatel-Lucent continues to be a

major Verizon Wireless’ network infrastructure supplier and the agreement builds on along-standing relationship between the two companies. “Constant network improvementis in our DNA,” said Tony Melone, chief technology officer at Verizon Wireless. “Networkreliability is a top reason business and consumers choose and stay with us. With Alcatel-Lucent’s strong support, we continue to optimize our networks and will remain the mostreliable in the nation for years to come.”

23. Question: How do you see the potentiality of Indian Market on this technology? Areyou planning to go alone?

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Answer by Nisar: We see great potential for LTE in the Indian market. Following thispast Spring’s wireless broadband spectrum auction, many Indian operators are movingforward on their LTE plans and we are involved closely with several. The wireless / broadband / media ecosystem in India is very rich and diverse, and we recognize theimportance of engaging across this ecosystem fully as part of driving successful LTE

launches.

24. Question: With T-Mobile aggressively marketing their network as 4G, what canLTE providers do to make sure that their offerings are differentiated in the marketplace?Is emphasizing speed the key?

Answer by Nisar: For sure speed is part of the differentiator, but with LTE ( i.e. actual4G) network latency is also much shorter and QoS management much easier, deliveringan higher Quality of Experience to the end user than 3G+ evolution.

25. Question: What kind of added features that aren’t supported on 3G networks doyou see consumers paying extra for?

Answer by Jay: We have identified that customers are willing to pay more for thesuperior quality of experience enabled by LTE. The following link has more detail on this.

26. Question: What new network management challenges will operators face, andwhat tools is Alcatel-Lucent offering to help keep congestion and traffic under control?

Answer by Nisar: LTE will enable QoS enabled and differentiated services. Greateremphasis on end-to-end performance management & service quality management willbe required. Alcatel-Lucent offers professional services and set of tools to enablecarriers to get an end-to-end view and allow proactive performance and capacitymanagement. Examples are Wireless Guardian and SQM tools and modeling services.

This enables monitoring, predicting, and managing the traffic load at a given point in thenetwork, as well as, from end to end perspective.

Jay: The audience may be interested to visit Verizon’s site to learn more about whatthey see as the LTE advantages. According to Verizon Wireless, an LTE industrypowerhouse: “The performance and capabilities of 4G LTE will be unmatched in themarketplace, allowing customers to do things never before possible in a wirelessenvironment.” Consider some of the advantages that Verizon Wireless’ implementationof 4G LTE will provide: HIGHER DATA RATES, COVERAGE:, BETTER MULTIPATH,MOBILITY AND POWER PERFORMANCE, LOWER LATENCY, SIMULTANEOUSUSER SUPPORT, SECURITY, SIMPLIFIED WORLDWIDE ROAMING, MASSDEPLOYMENT OF M2M APPLICATIONS. For details please go to our website.

Jay: Thank you for your time and participation.

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