Bringing Mobile Broadband to Rural Areas Ulrich Rehfuess Head of Spectrum Policy and Regulation Nokia Siemens Networks

2 © Nokia Siemens Networks

Agenda

Market Status, Networks and Devices

Why LTE ?

Implementation and Performance

LTE Advanced

Digital Agenda Challenges in Rural Areas

Drivers in Mobile Broadband

Vision on Convergence of Broadcast and Mobile Broadband

Over 6 billion mobile subscriptions • Affordable phones for mass market

• Over 1.2billion mobile broadband users, 50% y-o-y growth

• Operators global MBB service revenue grow annually 25%

• 350 million mobile Facebook users, out of 800 million total

• YouTube generates 22% of global mobile data traffic

• Mobile broadband subscriptions expected to exceed wireline broadband users within 2 years

• s

Strong momentum in mobile broadband

Source: NSN BI, Industry analysts

Networks

Devices Services

Affordable &

exciting MBB

offerings

Mobile broadband traffic more than doubles every year Video traffic has overtaken everything else

Source: NSN BI, Industry analysts Source: NSN BI, Industry analysts

Why LTE?

Superior mobile broadband user experience

GSM HSPA+ LTE

Throughput latency

GSM HSPA+ LTE

10ms

100 Mbps 150ms

<1 Mbit

<50ms >42 Mbps

Lower network costs to meet profitability challenge

Technology convergence

GSM

WCDMA

CDMA

WiMAX

TD-SCDMA

FDD LTE

TD-LTE

LTE Advanced

>90% harmonized in 3GPP

Extensive range of radio spectrum support

23 different FDD frequency band options 11 different TDD frequency band options

Single operator may deploy both FDD+TDD LTE

for maximum utilization of spectrum assets

+ new ones still being specified both for new band deployment and re-farming cases

Voice dominated

Data dominated

Traffic volume

Revenue

Time

Network cost (LTE)

Network cost (existing technologies)

Profitability

LTE market status

• 280 commercial LTE network

commitments in 90 countries

326mn dual-mode (LTE+3G) and

260mn (LTE-FDD + TD-LTE) devices

activated by 2016 Forecast by Maravedis (May 2011)

• 89 operators have commercially

launched LTE

• Nokia Siemens Networks is LTE

supplier to 29 out of these,

including 4 TD-LTE networks

• 150 commercial LTE networks in

53 countries expected by end

2012 E’July 2012 figures

LTE user devices – Wide range launched across device categories

Source: GSA, July 3, 2012

83 LTE smartphones launched – which is 73% higher than 6 months earlier Number of LTE-tablets launched has doubled in the same time-frame

First fully integrated LTE smartphones commercially available in Europe Note: Typically several months between device launch and commercial availability

(majority LTE+CDMA2000)

Designing smart network for smart devices and applications

Congestion control

Device power consumption

Coverage Throughput

Signaling capacity

Network latency

Session density

QoS & Traffic management

Network impact to user experience Laptops & tablets

Portable usage

High data volume

High processing capacity

Mobile routers Semi-permanent to full mobile usage

Highest data volume for long periods

Shared connection

Smart & feature phones High volume of devices

Highly mobile usage

Always on applications

Always Voice support

Battery life time critical

Unique 4D-Scaling

Nokia Siemens Networks LTE Radio and Evolved Packet Core Efficient, flexible and scalable for sustainable traffic growth

Service Intelligence

for traffic management and Quality of Service

Throughput

for highest subscriber data traffic

Signaling Capacity

for smartphone challenge and flat architecture

Session Density

for massive always-on subscriber uptake

Flexi NG S-/P-GW, 2G/3G GGSN Flexi NS MME, 2G/3G SGSN

Flexi Multiradio BTS • Software Defined Radio

(same modules for all technologies) • Smallest & most compact BTS • Highest energy-efficiency

weatherproof outdoor & indoor • All-IP – all integrated, incl. wirespeed IPSec

on common platform

Winner:

Best Technology Advance 2009

Winner 2009:Green Network Hardware and Infrastructure

JuniperResearch

Gold Award Winner 2010:Green Infrastructure

#1 in ABI Research LTE Base Station Vendor Matrix, 2010

“Threatening to competition”

, 6/2011

10 © Nokia Siemens Networks 2012

Field-proven Superior LTE Performance Consistently across major LTE band allocations incl. 800 MHz

Sweden, March 2011 20 MHz LTE @ 2600 MHz

Denmark, Sept. 2011 10 MHz LTE @ 1800 MHz concurrently with GSM

Sweden, Oct. 2011 10 MHz LTE @ 800 MHz

Average user throughput

Downlink: 48 Mbps

Uplink: 30 Mbps

Place

Gothenburg

Average user throughput

Downlink: 22 Mbps

Place

Copenhagen before commercial launch

Average user throughput

Downlink: 21 Mbps

Place

Stockholm suburb along archipelago

1800 MHz re-farming and 800 MHz spectrum efficiency matches exceptional Gothenburg results

Bandwidth Extension

MIMO

Cooperative Systems

Relaying

8x 4x

100 MHz

Smooth migration from LTE to LTE-A

Backward compatible

to LTE

Mobility

Ensuring smooth evolution to LTE-Advanced

12 © Nokia Siemens Networks 2012

10x Performance

10x Spectrum

10x

Base stations

1000x Traffic

Sub-1GHz Spectrum is of Particular Importance for Coverage Capacity Challenges in Cities - Coverage Challenges in Rural

Capacity: Dense networks

limited by interference

?x Performance

?x Spectrum

?x

Base stations

10x Cell edge

performance

Coverage: Sparsely built networks

limited by noise at the cell edge

Doubling traffic each year over a decade leads

to a 1000x capacity challenge

Addressable by

• substantial performance improvements of the

technical solution

• massive amount of additional base stations,

primarily small cells near traffic hot spots

• massive amount of additional spectrum,

high bands like 2600 MHz and 3500 MHz well

suited for small cells

Challenges in the physical constraints of the radio

channel

Addressable by

• costly performance improvements of the

technical solution limited by return on invest

• additional base stations strictly limited by return

on invest

• additional spectrum at low frequencies,

e.g. at 700 MHz

13 © Nokia Siemens Networks 2012

2.6GHz new (auction)

2.1GHz evolve

1800MHz

900MHz refarm

800MHz new (auction)

LTE 15-20MHz

HSPA+ 15MHz

Example of a Possible Spectrum Strategy of a European Operator LTE in Digital Dividend 800 MHz, 1800 MHz and 2600 MHz

LTE 20MHz

HSPA+ 5(4.2)MHz

LTE 10MHz

GSM

GSM

GSM GSM

HSPA

Typical frequency scenario in Europe

2.6GHz unpaired new (auction) TD-LTE 1x 20MHz

refarm

2009 2015

LTE deployment: • new bands or re-farming

• large contiguous spectrum blocks

Current Key LTE bands in EU:

800, 1800, 2600 MHz

To be further complemented

with 700, 2300, 3500 MHz etc.

14 © Nokia Siemens Networks 2012

Possible Evolution of Rural Mobile Broadband Downlink Rates

“Today”

10MHz@800

“Plus 700 MHz” (2x)

10MHz@800+10MHz@700

“Spectrum sharing” (6x)

30MHz@800+30MHz@700

LTE

2x2 MIMO

LTE-Advanced

4x4 MIMO (+ ~25%)

LTE-Advanced

4x4 MIMO (+ ~25%)

Theoretical peak 75 Mbps 300 Mbps (900 Mbps)

Expected average *) 5 to 20 Mbps 10 to 50 Mbps 30 to 150 Mbps

Cell edge *) 3 to 5 Mbps 6 to 15 Mbps 18 to 40 Mbps

Contracted bandwidth up to 7.2 Mbps up to 15 Mbps up to 50 Mbps

*) not quantifying load impact by change in usage patterns e.g. towards HD streaming

not considering all possible but costly technology measures

700 MHz band for mobile broadband is a valuable step towards reaching DEA target data rates

Together with spectrum sharing, 30 and 50 Mbps targets get into reach

15 © Nokia Siemens Networks 2012

Convergence Potential of Terrestrial TV and Mobile Broadband

An Integrated UHF Multimedia Network based on LTE-Advanced and eMBMS SFN *)

may resolve the competition for UHF spectrum between broadcast and MBB

Rewards and challenges:

• Massively improved UHF spectrum utilization can free the bandwidth required for digital

inclusion with massive video capacity also for non-linear broadcast content

• Terrestrial broadcast reach extends to smart phones and tablets, to indoors and mobile

• HD capability for terrestrial broadcast based on a global standard

• Interactive TV capability for broadcast including bandwidth required for non-linear content

• Flexibility regarding linear vs. non-linear content

• Shared infrastructure investment into existing base station sites

• Innovation potential in technical, regulatory and business model domains

*) eMBMS SFN: enhanced Multimedia Broadcast Multicast System in Single Frequency Network, efficient technology to broadcast multimedia content in LTE and LTE-Advanced networks

69x

30 MHz DL 30 MHz UL

790

791

821

832

862

700 MHz WRC-12/15

470

HD broadcast, non-linear content and internet traffic SD broadcast

320 MHz UHF spectrum (470 to 790 MHz) Digital Dividend

since 2010 2015 onwards long term vision

16 © Nokia Siemens Networks 2012

Conclusions

• LTE and LTE-Advanced quickly evolve to the global de-facto standard for Mobile Broadband.

• LTE and LTE-Advanced very successfully address Mobile Broadband capacity;

still additional spectrum is required to meet the 1000x capacity challenge.

• LTE and LTE-Advanced well complement wire-line solutions to reach Digital Inclusion in rural

areas. More efficient use of UHF spectrum by sharing and additional UHF spectrum in

particular in the 700 MHz band help to reach the ambitious European Digital Agenda targets.

• Convergence of Broadcast and Mobile Broadband provides a vision on a more efficient

common use of all available UHF spectrum with compelling technical benefits for Broadcast

and Mobile Broadband. Nevertheless, challenges in business model and regulatory domain

need to be addressed

Thanks for your attention