RAN Evolution. An introduction to Evo RAN. Hans Beijner Portfolio Marketing Manager, Business Unit Networks, Ericsson

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1 RAN Evolution An introduction to Evo RAN Hans Beijner Portfolio Marketing Manager, Business Unit Networks, Ericsson

2 This presentation may contain forward looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our earnings reports and our most recent annual report for a better understanding of these risks and uncertainties. 42/ FGB Uen Rev B 2

3 Agenda Market trends GSM, WCDMA, LTE Evo RAN Conclusion 42/ FGB Uen Rev B 3

4 Global trends Strong growth in mobile More than 6B subscriptions Packet data The Mobile Internet revolution Opens tremendous opportunities Voice Sustainability High on all agendas 42/ FGB Uen Rev B 4

5 m subscribers/month > 4.3 B Subscriber! Cumulative subscribers / standard (Milj) 2008 December 31 GSM M / month 2008 W-CDMA July m / month Market Share Dec -08, July % => 80.6% 7.3% => 8.9 % + 9 M / month 2008 CDMA M / month m / month m / month 2009 (China, India, US/Can) TD-SCDMA % = 9.8% SUM: (+54 M / month 2008) (+55 M / month 2008) 42/ FGB Uen Rev B 5 Source: EMC 2009 Aug 24

6 GSM PS data volume per BSC Erlang EDGE 10 times! Packet data traffic volume increase GPRS doubled 0 dec-06 mar-07 jun-07 sep-07 dec-07 mar-08 jun-08 sep-08 dec-08 0 Sum of TCH Traffic (Erlang) Sum of GPRS Traffic Volume (Mbit/s) Sum of EDGE Traffic Volume (Mbit/s) Strong growth for GSM data 42/ FGB Uen Rev B 6

7 HSPA traffic growth World average 8 Relative Network Load Packet data Voice 1 6 Jan 07 Mar 07 May 07 Jul 07 Sep 07 Nov 07 Jan 08 Mar 08 May 08 July 08 Sep 08 Nov 08 Jan 09 Mar 09 May 09 Jul 09 Source: Ericsson Enormous data traffic growth 42/ FGB Uen Rev B 7

8 The success of HSPA 267 commercial HSPA networks Ericsson: 126 (47%) >345 million WCDMA/HSPA subscribers 1470 HSPA devices 171 suppliers Commercial HSPA networks HSPA network launch commitments Devices Suppliers Source: GSA Global mobile Suppliers Association and Informa: May / FGB Uen Rev B 8

9 Global LTE Commitments 35+ Operators in over 19 countries Vodafone Source: Press releases and GSA (26 August, 2009) and more to come Up to 14 LTE networks are expected to launch commercial services in / FGB Uen Rev B 9

10 Insights GSM Continued growth in GSM subscriber base Strong data traffic increase WCDMA HSPA = mobile broadband LTE Global choice 42/ FGB Uen Rev B 10

11 Faster market adoption with each mobile generation 10,000 Subscription forecast 1, Millions G G 4G GSM, WCDMA and LTE will coexist for the overseable future 42/ FGB Uen Rev B 11

12 Operator scenarios Expand or modernize GSM and prepare for WCDMA and LTE Expand or modernize WCDMA and prepare for LTE and/or GSM modernization Deploy LTE with potential GSM/WCDMA modernization Network migration 42/ FGB Uen Rev B 12

13 Operator main drivers Enable more business growth Reduce cost Future proof investments Drivers for modernization 42/ FGB Uen Rev B 13

14 42/ FGB Uen Rev B 14

15 Evo RAN - RBS Multi standard radio sites Multi Standard Meet site space challenges Antenna System Flexible and efficient site transport Site O&M RBS Site Power Transmission Multi- Standard Radio Give operators flexibility to choose best solution 42/ FGB Uen Rev B 15

16 Evo RAN - Transport All IP RAN - The way forward Optimize the networks for new subscriber growth Increase Mobile Backhaul capacity as the traffic increases Reduce costs per bit of transporting data traffic Lower OPEX & CAPEX with Ethernet RAN evolve towards IP - Backhaul becomes Ethernet based 42/ FGB Uen Rev B 16

17 Evo RAN Controllers BSC, RNC and Evo Controller 8000 GSM HD BSC Highest capacity the market WCDMA RNC 3820 Increased capacity Evo Controller 8000 Combined GSM and WCDMA controller Today's demands and ready for tomorrow 42/ FGB Uen Rev B 17

18 Evo RAN O&M O&M and Service Assurance Manage more will less effort OSS-RC to common access all infrastructure OSS Navigator for service performance management ENIQ multi vendor performance monitoring Synergy assurance Benefits from multiple radio technologies in overlapping areas Traffic driven HW activation/deactivation Future holds new challenges 42/ FGB Uen Rev B 18

19 Operator main drivers Enable more business growth Increased traffic Improved RF performance Enhanced voice AMR Wideband Increased speed EDGE Evolution, HSPA Evolution, LTE Reduce cost New coverage Extended range Future proof investments Enabling new end-user offerings 42/ FGB Uen Rev B 19

20 More business growth GSM modernization example Site integration gives - improved link budget - gives increased traffic Linkbudget improved +2dB 42/ FGB Uen Rev B 20

21 Increased income from more traffic Field measurements shows 1.5 db improvement in link budget give 3 % more traffic in the cell 3 % more traffic give increased revenue of Link budget improvement give extra revenue per year 42/ FGB Uen Rev B 21

22 Operator main drivers Enable more business growth Reduce cost.for RAN Complexity Reduce Site complexity Reduce cost for O&M.For Energy Consumption Less Site Energy cost Future proof investments.for Transmission Abis Optimization IP RAN 42/ FGB Uen Rev B 22

23 Less Site Energy cost modernization example RBS x4 TRX typical 2 kw BBS 2202 AC/DC RBS x4 TRX Typical 0.8 kw RBS energy consumption down 60% 42/ FGB Uen Rev B 23

24 Lowering energy cost Energy savings not only in RBS RBS x4 RBS energy consumption 2kW AC/DC and aircon: 1.6 kw Total consumption: 3.6 kw Climate model RBS Site Traffic model RBS x4 RBS energy consumption 0,8 kw Additions for AC/DC and aircon: 0,64 kw Total consumption: 1,44 kw Climate Eqm AC/DC RBS Savings 2.16kW Savings per year 365 * 24 * 2,16 = kwh Cost savings /year and site, Eff. 65% Eff. 85% Eff. 15% savings per site and year! 42/ FGB Uen Rev B 24

25 Case for modernization? More revenues Traffic revenue from improved linkbudget /year Additional revenues from AMR-WB, EDGE and EDGE Evolution Reduced cost Lower energy consumption savings /year Additional savings from traffic driven HW activation/deactivation, Abis Optimization, IP RAN and common O&M /year from increased traffic and energy reduction! 42/ FGB Uen Rev B 25

26 Operator main drivers Enable more business growth Reduce cost Reuse installed base Future proof investments RBS 2000/3000/6000 Complete Site Offering 42/ FGB Uen Rev B 26

27 Taking RBS 2000/3000 into the future Evolved RBS 6000 modules in empty slots RBS 6000 RBS 2206 RBS 2216 RBS 3206 Evolved Modules RBS 2106 RBS 2116 RBS / FGB Uen Rev B 27

28 Conclusion Evolution of RAN Coexistence of GSM, WCDMA and LTE to 2020 and beyond One RAN to handle all technologies Strong case for GSM modernization Evo RAN Manage more with less effort More revenue, lower cost Protect investments Ericsson leadership, increasing operators revenues 42/ FGB Uen Rev B 28

29 42/ FGB Uen Rev B 29

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