Customer White paper. August 2014 Author Pravin Mirchandani. Smart Enterprise Access Solutions for Service Providers

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1 The Future is Bright - The Future is Mobile Delivering Enterprise-Class Business Applications and Services over next generation 4G/LTE Networks August 2014 Author Pravin Mirchandani Customer White paper

2 Table of Contents 1. Introduction 2. Executive Summary 3. LTE Deployments - The Global Picture 4. LTE Ubiquity - Service Innovation Opportunity 5. OneAccess LTE Service Delivery Platforms 5.1 #1 Business Case: Rapid Service Deployment 5.2 #2 Business Case: Guarantee of Service (GoS) 6. Hybrid Access 7. Conclusion 2

3 1. Introduction Industry analysts are forecasting that mobile network operators across the world will invest over $15bn dollars in LTE infrastructure by the end of 2014 as they race to compete for a share of the $100bn 1 + annual revenues the sector is expected to generate. With more efficient use of the mobile spectrum, 4G/LTE IP based technology promises fiber-like performance, with extended geographical reach, capable of supporting the latest high-speed business applications, real-time voice and data communications and Cloud services. This paper provides an overview of the current status of the global 4G rollout programme and an understanding of the projected development path for the next generation of mobile broadband technology. Combined with an introduction to the latest OneAccess, ONE15xx Series, LTE enabled multi-service routers, the information included in this paper is intended to show how service providers can maximise future market differentiating revenue opportunities through the introduction of innovative, LTE-based communications services for enterprise customers. Written for an audience of technical decision makers at large enterprise users, Telcos and communications service providers, it is assumed that readers will have an understanding of earlier generations of wireless technologies and their applicability in an enterprise WAN and Cloud access environment as well as an appreciation of the technical and commercial challenges facing the wider telecommunications service industry. 1 Source: Infonetics 3

4 2. Executive Summary 4G/LTE service roll-out has now reached mass-scale proportions on a world-wide basis with the total number of active operators forecast to reach 350 by the end of 2014 and over $15bn being invested in mobile broadband infrastructure. Of the current 280 operators that have launched 4G services 88% have opted for the Frequency Division Duplex (FDD-LTE) system with the rest opting for the Time Division variant, TDD-LTE, or a dual FDD/TDD-LTE offering. TDD-LTE offers a more efficient use of available broadband capacity and is forecast to become the dominant protocol in areas with limited bandwidth and where there is a more competitive operator landscape. Globally it is forecast that there will be 1.3bn 4G subscribers by 2018 with a 44% CAGR over the next 4 years. Both LTE variants offer fiber-like performance and are capable of supporting a wide range of real-time, high-speed business applications including managed services in the Cloud. LTE technology is undergoing rapid development and speeds of over 10Gbps are forecast by VoLTE, LTE Broadcast, Carrier Aggregation Cloud data center services over LTE are near-term, realistic value-added revenue stream candidates. OneAccess ONE Series LTE enabled, multi-access routers provide operators with a flexible and scalable broadband service delivery platform; incorporating performance enhancing and network management functionality they enable operators to deliver competitive, QoS based business communications services for a wide range of SMB and enterprise customers. In addition to providing a viable alternative broadband access solution for business services, LTE offers a major advancement in business continuity and application performance capability as well as enabling operators to rapidly provision high-speed services for new and existing customers. 4

5 3. LTE Deployments - The Global Picture Globally LTE deployments have now reached mass-scale levels with around 280 operators currently offering 4G services, a total forecast to grow to over 350 by the end of Of the number already operating, 247 (88%) have based their services on the Frequency Division Duplex (FDD- LTE) technology with the rest using the Time Division Duplex (TDD-LTE or TD-LTE) variant or a combination of both FDD and TDD. Although FDD-LTE is currently the most commonly deployed system, particularly in North America and EMEA, the more bandwidth efficient TDD-LTE technology that is favored in China and the Asia PAC region, is rapidly gaining ground due to its similarity to existing WiMAX technology and is forecast to become a more widely adopted platform on a global basis as the next generation of LTE-Advanced based systems come on stream. The main difference between the two systems is that in FDD deployments a separate carrier frequency is dedicated for the data uplink and downlink respectively. Whereas TDD-LTE uses a shared carrier frequency for both uplink and downlink, by dividing the radio frame into subframes, bandwidth can be dynamically allocated to either the uplink or downlink depending on the usage profile. This asymmetric approach is more in line with typical consumer usage where downloading large volumes of streaming media is more frequent than the occasional uploading of data or media files. With typical download speeds currently at between 100 and 150Mbps, both systems are capable of delivering the fiber-like performance needed to sustain high-bandwidth, data and voice-based business applications. This is set to quickly rise to 1Gbps in the next few years with the development of the next generation of LTE-Advanced technology and to achieve 10Gbps throughput by 2020 when 5G is expected to be ready to roll-out. 2 GSA Evolution to LTE March

6 However, ultimately the choice of LTE variant will be determined by a range of regional factors, largely outside the direct control of the operators, together with the ability and motivation of the mobile device vendors and network equipment manufacturers to develop, test and certify LTE compatible products in line with global market demand. In some regions bandwidth is a scarce and expensive commodity and operators have no other option than to work within the limited range of frequencies allocated by the local regulators. By utilizing single frequencies for both the upload and download link, TDD-LTE enables operators to maximise both the available bandwidth and their infrastructure investments. According to a 2011 LTE survey carried out by the research group Informa 3, 33% of the 250 global operators surveyed are considering as deploying both TDD and FDD LTE networks. With 19% considering TDD alone it means that over half of operators are planning to offer either a single or dual TDD-based 4G service. However, despite this high level of support, TDD-LTE is still a little way behind FDD. From related research carried out by Informa, the total global LTE subscription base will reach 1.3 billion by the end of 2018, up from the million at the end of 2013 with a compound annual growth rate (CAGR) of 44% over the five-year period. Individual country forecasts indicate that the US will be the largest market for LTE throughout the forecast period, rising from 89.8 million LTE subscriptions at the end of 2013 to million at the end of 2018, a CAGR of 22%

7 4. LTE Ubiquity - A Service Innovation Opportunity While the rapid growth in LTE subscriptions can be largely attributed to a consumer-led increase in demand for multi-media streaming and life-style applications using the latest tablets and smart phones, this high rate of commercial success has been helped by the fact that many operators decided to launch their 4G services by maintaining access charges at typical 3G and 2G levels. Evidence from the market indicates that this approach, aimed at initially enhancing the mobile-broadband experience rather than applying premium rates for 4G network access, has actually resulted in increased network usage compared to 3G and the mobile network operators have consequently enjoyed improved revenues derived from the resulting higher data consumption. By the same logic and with the ubiquity, scalability and performance credentials of LTE already proven, the way is now open for existing and new service providers to also leverage the highspeed mobile technology as the platform for innovative business applications and managed cloud services as well as opening up new, high revenue generating, markets that have previously been uneconomic and technically challenging to reach. Offering fiber-equivalent performance, LTE provides an additional broadband access option that can be utilized equally for rapid service deployment, business continuity, off-load or load-balancing in conjunction with copper, fiber or Wi-Fi links as well as being a primary access link option in its own right in areas where fixed-line or WiFi networks are not available or are unreliable. The additional flexibility that LTE offers has significantly levelled the playing field to enable a broad range of service providers to compete on equal terms and has created an opportunity for new market entrants, such as mobile network operators, to expand their offering to their business customers. While this could be perceived as a threat to some incumbent service providers, for the more agile and innovative CSPs, LTE represents a major opportunity to add a range of high revenue generating, valued-added services that can help to consolidate their market position and improve the overall mobile broadband experience for their customers. With the continuous innovation in LTE promising 1Gbps performance in the next two to three years, and 10Gbps on the near horizon, there is a genuine prospect of utilizing wireless broadband to access a range of enterprise value-added services such as Cloud based data centers, multicast and broadcast applications as well IP voice (VoLTE) transmissions over a high speed mobile connection that more than justifies any new investment in the mobile infrastructure that undoubtedly will be needed. 7

8 5. OneAccess LTE Service Delivery Platform OneAccess Networks has been at the forefront of developments in WAN/Cloud access platforms for over 10 years and has established a reputation for the development of innovative service delivery solutions that provide the right mix of service-enabling software functions at the right price/ performance ratio needed by today s operators and service providers, enabling them to thrive in an increasingly competitive market. By adding LTE capability to the extensive range of access options already available on the ONE series multi-service routers, OneAccess is uniquely positioned to provide CSPs with the ability to offer their customers an enhanced broadband service that can be configured to meet their individual communications needs rather than being constrained by the limitations of the fixed and wireless network availability. The ONE Series is a range of compact, multi-service access routers that covers the full spectrum of users from entry level SMBs to large-scale multi-site enterprise deployments. With multiple access options including copper, fiber, Wi-Fi, Satellite and mobile connections, the ONE series range supports the latest ADSL2+, VDSL2 and G.SHDSL.bis transmission protocols alongside 4G/ LTE technology and PoE (Power over Ethernet) connectivity to facilitate optimum configuration and on-premises location options, including hybrid multi-path and bonded access. Currently the ONE series range provides seamless integration of Sierra Wireless LTE modules and support for Cat 3 FDD-LTE to deliver 100Mbps downlink / 50Mbps uplink speeds. Through an extensive programme of continuous development, support for TDD-LTE and VoLTE (VoIP over LTE) will become available in 2015 and speeds of 1Gbps and possibly beyond are anticipated by In addition to the multi-path access capability, the mid-range ONE540-4G and high performance ONE1540-4G routers incorporate advanced network and application performance enhancement capability. Including native VPN support, WAN optimization, network visibility/control software and advanced esbc based voice calling as well as support for 3rd party applications, the ONE Series routers provide an extensible, all-in-one-box, managed service delivery capability for all types of business communication needs. Model Features OneCell35/ONE50 3G ONE540-4G ONE1540-4G Data Voice (esbc) 4 4 Fiber 4 4 ADSL VDSL2 4 4 G.SHDSL.biz 4 4 3G 4 4G (CSFB) 4 4 Processor Single Core Dual Core Quad Core POE 4 8

9 5.1 #1 Business Use Case: Rapid Service Deployment The ubiquitous nature of LTE means that high-speed broadband access can now be available and commercially sustainable across a much wider geographical area, including remote regions where bonded copper or fiber has not yet reached, providing an early opportunity to open up potentially lucrative new segments of the market. For service providers this can mean that the time needed to internally process and provision a new broadband service, or upgrade an existing customer, can be significantly reduced from weeks in some cases to possibly just a few days. This not only benefits the customer but for the CSP it can also help to reduce churn and protect existing revenues by removing the temptation for customers to look for alternative providers to meet their urgent requirements. With traffic throughput performance currently reaching 100Mbps/50Mbps (download/upload speeds), 4G/LTE networks provide a rapid roll-out option capable of supporting many common high-speed business applications and Cloud service access. For smaller businesses, branch office or M2M deployments, the mobile access link could be all that is needed for operational purposes and QoS and SLA-based performance targets. For larger enterprise deployments, LTE can offer an ideal interim solution, as part of a phased deployment, to meet the customer s immediate, short-term, requirements prior to the implementation of a, longerterm solution when the customer s fixed-line connection has been activated to provide essential failover and off-load capability The OneAccess ONE Series router family includes support for CLI and TR-069 remote set up and management functionality and can be quickly integrated with most OSS/back office systems, which means that once the contract has been agreed and the equipment has been installed by the customer the service can be activated using the LTE network as the initial primary connection, without the need for an expensive on-site engineer visit. 5.2 #2 Business Use Case: Service Continuity There are many factors that can impact the quality and availability of a broadband connection and ultimately affect the end-user experience. As more businesses move core applications and communications services to the Cloud, the greater the need for consistent, reliable performance from the network. Of the many factors at play in ensuring the seamless introduction of high bandwidth consuming realtime applications such as video conferencing and multi-media streaming, the dynamic routing of traffic onto the optimum access link ranks close to, if not at, the top of the list, making the choice of router a critically important decision for the service provider and the customer. The OneAccess ONE Series routers offer service providers the widest possible range of LTE and fixedline access options combined with optional application aware, performance enhancing services, which provide ultimate set-up and configuration choices based on the individual user s requirements, application usage and IT infrastructure. From the end-user perspective the main priorities are for zero down-time and negligible latency in business-critical application usage. The ONE Series routers advanced features and multiple access options combine to both guarantee availability and maintain optimum performance for priority applications and Cloud service access. 9

10 6. Hybrid Access Using the latest hybrid access technology with intelligence, based on 3GPP IFOM or MP-TCP support, the ONE Series routers can be configured to seamlessly route priority traffic via the optimum link (fixed or mobile) on a Least Loaded First (LLF) basis or bond two physical links to provide a scalable alternative to fiber or a bonded-copper fat pipe for resilient high-bandwidth consuming applications. OneAccess patented link selection technology uses application-aware logic to ensure that the correct link or combination of links is used based on the traffic characteristics to deliver the best experience for the end-user. By analysing network traffic at the TCP and application layers the OneAccess routers are able to dynamically separate video streaming onto the highest bandwidth link and interactive traffic onto the lowest-latency link. MP-TCP Router MP-TCP Appliance This capability also means that in the event of service degradation during peak traffic periods or a complete outage of a fixed line connection due to some major incident, traffic can be dynamically routed via the high-speed LTE connection without losing sessions, i.e. interrupting normal operations. 7. Conclusion LTE is undoubtedly going to become increasingly important over the next 2 to 5 years in terms of delivering a feature-rich, enhanced broadband experience for businesses of all sizes regardless of location. A ubiquitous, high performance technology, LTE offers a viable alternative to expensive fiber and bonded copper, connections capable of supporting high-speed voice and data business applications, opening up the market for new entrants as well as established operators looking to consolidate and grow their customer base. 10

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12 ABOUT us OneAccess designs, develops and markets innovative platforms for the profitable delivery of CPE-based managed network services for communication service providers (CSPs). Its multi-service access routers and Carrier Ethernet devices are designed to ensure service continuity and a high quality of experience for managed broadband and wireless data and voice services targeted at enterprise customers. OneAccess service-delivery platforms align with the current and future deployment and operating models of service providers by optimizing the delivery of managed Cloud services and migration to SDN architectures. OneAccess CPE platforms are used by more than 110 communication service providers internationally, including some of the world s largest telecommunications companies. With a global presence that includes North America, Europe and Asia, OneAccess, a private company, was incorporated in Smart Enterprise Access Solutions for Service Providers For more information visit OneAccess, Pentagone Plaza, 381 Avenue du Général de Gaulle, Clamart, France Phone: +33 (0) Fax: +33 (0) [email protected]