GSM Software capabilities OSC: Orthogonal Sub Channel DFCA: Dynamic Frequency and Channel Allocation SRA: Smart Resource Adaptation

GSM Software capabilities OSC: Orthogonal Sub Channel DFCA: Dynamic Frequency and Channel Allocation SRA: Smart Resource Adaptation

Definitions Dynamic Frequency and Channel Allocation (DFCA) DFCA software increases traffic capacity up to two-fold by dynamically assigning an optimum radio channel for every voice call. This increased efficiency frees spectrum for the deployment of 3G and LTE in the GSM bands. Orthogonal Sub Channel (OSC-DHR and OSC-DFR) OSC software can up to double the voice capacity of a network: OSC-DHR by allowing up to four simultaneous AMR HR voice calls to be made on a single GSM timeslot and OSC-DFR by allowing two simultaneous AMR-FR calls on a single GSM timeslot. Smart Resource Adaptation (SRA) Smart Resource Adaptation software helps networks deal with the increasing use of machine-to-machine (M2M) and smart devices. The software allows for up to a five-fold increase of M2M and smart device users in existing radio networks by allocating packet resources more efficiently, based on actual usage.

Benefits increases revenue that could potentially be tens of thousands of dollars annually per base station site GSM Software capabilities DFCA, OSC and SRA improves efficiency, reduces CO2 emissions and energy consumption, and reduces total cost of ownership (TCO) increases network efficiency that also leads to improved quality of service for all users.

Why improving spectral efficiency in GSM? GSM usage will continue to grow in the next years GSM traffic will continue to grow over the next years due to: Lower end user cost per MB and per minute EDGE penetrating to lower cost device categories Smart devices and M2M devices Expanding GSM radio coverage Increasing GSM population penetration Lower price of mobile devices, very attractive in emerging markets 900 and 1800 MHz bands are attractive options for MBB coverage WCDMA re-farming in 900 MHz is a reality today LTE in 1800 MHz is becoming an attractive option Source: NSN internal compilation A highly spectral efficient GSM is needed to cope with the traffic growth under the constraint of less available spectrum Same/higher amount of users with less spectrum with same/improved QoS

Smart Lab study highlights: OSC with DFCA OSC allows for 4 half-rate (or 2 full-rate) users to be multiplexed in the same time slot, thus improving the GSM spectral efficiency TRX TS0 GSM timeslots (TS) TS7 Usage of Radio Resources Target C/I Matrix DFCA 2xTRX >DHR TS0 OSC x2 TS7 Incoming inter-cell interference matrix UE measurements DFCA Searching optimum C/I from C/I matrix Tighter frequency reuse and improved Rx quality and Rx levels DHR pairing based on Rx quality, Rx level and RX level difference between paired users Outgoing inter-cell interference matrix DFCA Frequencies DFCA improves OSC performance especially in spectrum limited cases like in re-farming by improving the DHR usage and by enabling more TRX units

Simulation results: DFCA + OSC 1. DFCA improves RX QUAL and RX levels 2. Leading to DHR usage increase 3. Blocking is reduced by joint OSC and DFCA operation 4. DHR usage depends also on SAIC MS penetration Thanks to DFCA interference aware allocation the amount of good RXQUAL samples could be visibly increased

Smart Lab study highlights: SRA Improved Resource Efficiency for Smart Phones Inefficiency with Small Transactions Typical services in smart phones introduce plenty of small transactions consisting of couple of small packets: Throughput optimized NW may waste too much resources for those. Allocating one time slot for short packets One time slot is allocated for DL TBF until first packet exceeds 250B Otherwise the TBF timeslot allocation is as today up to multi-slot capability of MS. Reduced Blocking More smart phone users can be served in NW Handles all inefficient protocols at once. All handsets supported including DL DC. Examples of packet lengths < 250B > 250B #LLC chat web TCP control ICQ (chat) DNS,, TCP data HTTP (web) RTP,, 1 TSL 250B Max. TSL Size of DL LLC

Smart Lab study highlights: SRA trial results SRA enabled Multi-slot blocking decreasing thanks to efficient handling of small packets SRA enabled Number of 1 TSL request increasing after SRA activation

Conclusions Customer experience SAIC handsets benefits from OSC DFCA helps improving the RXQUAL levels MOS is kept or improved with the combination of OSC and DFCA Joint operation of DFCA and OSC allows increasing the DHR and DFR usage - More users with the same QoS in less spectrum SRA allows to handle more efficiently smart phone like traffic Operator Doubling of voice capacity (AMR-HR and AMR-FR) thanks to OSC with MOS quality mantained Reduced interference with DFCA BSC analyses traffic / interference situation and dynamically assigns most suitable time slot and frequency for each connection Removes need for frequency planning for non-bcch TRXs Joint operation of DFCA and OSC allows increasing the penetration of OSC, i.e., the amount of multiplexed users More users with the same or improved QoS in less spectrum SRA allows to handle more efficiently small packets. Multi-slot blocking cane be reduced More resources are free for other users