Huawei Local Call_Local Switch_V2

www.huawei.com

Security: Confidential

24 March 2008

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Local Call Local Switching Solution

http://www.huawei.com

Page 2 HUAWEI TECHNOLOGIES CO., LTD.

Agenda

1 Huawei Local Call Local Switching

Madre de Dios Business Case

Proposal

2

3


Local CallLocal Switching

1 2 3


ü GSM users continues to increase

steadily and competition grows fiercely

ü Most operators are spending much more time and money trying to expand their network capacity

ü Most newly-added GSM users are

low-end users, which results in a

steadily decreasing ARPU

ü In order to increase revenues, operators are eagerly seeking

effective ways to reduce TCOwhile at the same time ensuring service quality

The new GSM market


Satellite Transmission is the Key

ü As GSM penetration has almost reached the saturation point in most developed areas, GSM is now

expanding in rural areas

ü Satellite transmissionequipment required for deploying a

mobile network constitutes a very large investment, thus transmission becomes a big challenge

ü TCO model for rural areas has the satellite transmission cost as a large portion of the total costs; therefore any savings that can be made in terms of the transmission cost is

also a key to lowering the TCO


Description• Enable connect to any MSC with standard A interface without changing current NSSBenefit• Saving Ater/Abis transmission • Saving TC resource（DSP processing power）• Enhance Voice Quality, less BER of multi-hop Micro-wave transmission network.

Description• Enable connect to any MSC with standard A interface without changing current NSSBenefit• Saving Ater/Abis transmission • Saving TC resource（DSP processing power）• Enhance Voice Quality, less BER of multi-hop Micro-wave transmission network.

MSC Server

MGW/TC

BSC

BSC/BTS Local Call Local Switching

BTS

Typical GSM Network

MGW/TC

MSC Server

BSC

Reducing the Transmission costs


1 2 3

Madre de Dios

Madre de Dios

La Pastora

BSC

BTS

Maldonado

Iberia

Iñapari

Current Scenario All the calls occupy Satellite Transmission resources

Madre de Dios

La Pastora

Iñapari

Iberia

HW BSC

HW BTS

Maldonado

local-calls

local-calls

local-callslocal-calls

Huawei Scenario Only not local calls occupy Satellite Transmission resources


Traffic Model for Madre de Dios Region

19.2%23Other

80.80%97Movistar-Movistar Local

100%120Total

PercentageErlangsTraffic

Satellite Bandwidth per BTS

64TOTAL =

16Maldonado

8Iñapari

8Iberia

32La Pastora

Time SlotsBTS

Saving Calculation (1/4)

Note: According to Huawei experience, the Local traffic per region is around 40% in average. Therefore for the case of Madre de Dios we would be more conservative and assume the Movistar

Local calls percentage of 60%

TRX Number per BTS

25TOTAL =

6Maldonado

4Iñapari

6Iberia

9La Pastora

TRXBTS


Local Traffic in Madre de Dios for each BTS in a normal day

100%13714Total3.50%474OtrosMaldonado

96.50%13240MaldonadoMaldonado%callsBTS destinoBTS origen

100%1581Total0%0OtrosIberia

100%1581IberiaIberia%callsBTS destinoBTS origen

100%9038Total6.20%561OtrosLa Pastora

93.80%8477La PastoraLa Pastora%callsBTS destinoBTS origen

100%8521Total0%0OtrosIñapari

100%8521IñapariIñapari%callsBTS destinoBTS origen




To determine the number of time slots saved as local traffic in each BTS we calculate as follows:

Percentage of Local Traffic in Madre de Dios X Percentage of Local Traffic in each

BTS x Total Number of Time Solts

Maldonado = 0.6 x 0.965 x 16 = 9.26 time slots (58% Saving)

Iberia = 0.6 x 1 x 8 = 4.8 time slots (60% Saving)

La Pastora = 0.6 x 0.938 x 32 = 18 time slots (56% Saving)

Iñapari = 0.6 x 1 x 8 = 4.8 time slots (60% Saving)



To determine the annual amount of money saved as local traffic in each BTS we calculate as follows:

Number of Time Slots saved X Price of Time Slot per month X 12

Maldonado = 9 x 275 x 12=USD $ 29,700

Iberia = 4 x 275 x 12 = USD $ 13,200

La Pastora = 18 x 275 x 12 = USD $ 59,400

Iñapari = 4 x 275 x 12 = USD $ 13,200

TOTAL Estimated Saving per Year = USD $ 115,500


1

Huawei Proposal

32


Huawei Comprehensive BSS Portfolio

BTS3012Outdoor Mini BTS

•Urban•Suburban•Hotspot

•Rural area•Hotspot•Inaccessible geographies

Outdoor macro BTSIndoor macro BTS

•Dense urban•Urban

BTS3006CBTS3012AE

BTS3002E

BSC6000All-IP platform BSC

12 TRX per cabinet

12 TRX per cabinet

6 TRX per cabinet

2 TRX per cabinet


390kg (S444)

Performance Enhanced Outdoor BTS3012AE

Up to 4 hours backup without additional battery cabinet

Static receiving sensitivity: -112.5dBm for TCH/FS in normal temperature

GERAN hardware ready, smooth evolution to 3G

Transmission Interfaces: E1, STM-1

Coverage Capability: Transmitting diversity/ PBT/ 4-way Receiving diversity

Output Power of TRX: 60W (47.78dBm) GMSK; 80W (49.9dBm) with PBT

Maximum Configuration: 12 TRXs per cabinet

Working Frequency Bands: 850MHz, 900MHz, 1800MHz, 1900MHzOutdoor Macro BTS3012AE

1700(H)*1000(W)*880(D)

4The BTS3012AE cabinet fulfils the requirements of IEC 529. The protection level reaches IP55

43012AE Temperature Range -40~55 ℃


BSC6000 Large Capacity and Site Saving

Benefit:

vLarge capacity, reduce BSC site, tremendous cost saving

vSupports E1 and STM-1 interfances

vEasy expansion for large capacity up to 2048TRX

v2048 TRX Half Rate, high tolerance for traffic-peak

vWith TC, 2 cab. for 2048TRX configure, 7/8 footprint saving

Benefit:

vLarge capacity, reduce BSC site, tremendous cost saving

vSupports E1 and STM-1 interfances

vEasy expansion for large capacity up to 2048TRX

v2048 TRX Half Rate, high tolerance for traffic-peak

vWith TC, 2 cab. for 2048TRX configure, 7/8 footprint saving

Single Cabinet:1536 TRX, 1800K BHCA, 9K Erl2200(H x 600(W) x 800 D)

Full configuration (2 cabinets with TC ):2048 TRX,2340K BHCA, 12K Erl

Traditional BSC

BSC6000


Proposed Scenario

Equipment : • 40 Macro Outdoor BTS 3012AE (3/3/3 TRX) + LCLS Feature• 01 BSC (500 TRX) + TC + PCU

Time estimated for the equipment to arrive in Lima: • 45 days

Services Included: • BSC, TC, PCU installation in Lima• BTS delivered in TM Warehouse• Huawei IOT services


Annual Saving per Satellite BTS + LCLS

41.5

207.5

415

622.5

830

1037.5

1245

1452.5

1660

1867.5

2075

0

500

1000

1500

2000

2500

1 5 10 15 20 25 30 35 40 45 50

US$ 1000

Number of BTS

01 BTS = 9 TRX


A GSM Base Station at the top of World

* Huawei has been selected by China Mobile to install a new generation GSM Base Station on Mount Everest. The base station will provide mobile network coverage for the Beijing 2008 Olympic Torch Relay Team that plans to reach the summit in time for the Olympic Games. The base station will be positioned at an altitude of 6,500 meters

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