Indoor multi operator solutions - Network sharing and Outsourcing

A m i r h o s s e i n G h a n b a r i

Under supervision of: J a n I M a r k e n d a h l

S P R I N G 2 0 1 3

W I R E L E S S @ K T H

Indoor multi-operator solutions, Network sharing and Outsourcing

network management and operation

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing in IMNs

• Outsourcing in IMNs

•  Analysis

•  Conclusion

•  Looking forward

Introduction

�  Raise of mobile data consumption �  Revenues from endusers

A European MNO expenditure

How to bring maximum benefit?

Co-opetition

1.  Outsource Network operation and maintenance

2.  Share Networks

3.  Share and Outsource

What has happened to Cooperation

in Smallcell networks?

Goal

We wanted to see:

Why Network Sharing plus Outsourcing Operation and Management has not been applied and/or promoted in

indoor mobile networks?

Problem Definition

�  The missing ring ¡  Proper technology, ¡  Suitable business models, ¡  Or someone who

understands both.

�  Multi-operator Shared Network vs. Roaming

�  Different Actors

�  3rd parties’ Qualifications

�  Technical Considerations

Current situation How it should be

indoor  solu*ons  &  Deployment  

Outsourcing  

Sharing  Network  

Contribution

indoor  solu*ons  &  Deployment  

Outsourcing  Sharing  Network  

MOSN  or  Roaming?  

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing in IMNs

• Outsourcing in IMNs

•  Analysis

•  Conclusion

•  Looking forward

Methodology

�  Data collection ¡  Secondary Data

¡  Individual interviews ¡  Group Discussions

NEC Scandinavia AB

Cloudberry Mobile

3GNS R&D Solutions

KarNET AB

Ericsson AB

Data Secoi

Market Reports

Scholarly Journals

Business Articles

Tech reviews

�  Literature study

¡  Business model concepts

¡  State of the art contributions

¡  Technology acceptance theories

Methodology

�  Recommendation formulation

¡  Mediate between technology & economic values

�  Data analysis

¡  Main frameworks: ÷  Value analysis ÷  Empirical data analysis

¡  Analysis of

Actors-Resources-Activities

(ARA model)

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing in IMNs

• Outsourcing in IMNs

•  Analysis

•  Conclusion

•  Looking forward

Existing solutions

�  Repeaters

�  DAS

�  Picocells

�  Femtocells

Indoor mobile networks

Core  Network

IP/Ethernet  Router

Femto  Gateway

Modem

FAPISP  (Internet)

“We Live and Work in

Clusters” BTS

BSC

Enterprise  Femto  NW

FAP

FAP

FAP

FAP

Hand  O

ver

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing in IMNs

• Outsourcing in IMNs

•  Analysis

•  Conclusion

•  Looking forward

Drivers of Sharing

�  OpEx prevention and saving

�  CapEx prevention

�  Improved Spectral Efficiency

�  Enhanced Capacity

�  Better network (coverage and quality)

�  Regulations

�  Less entry barriers

�  Data crunch

�  Spectrum allocation

Multi-Operator Radio Access Network

Operator  Green’s  Core  NW

Operator  Red’s  Core  NW

Operator  Blue’s  Core  NW

Femtocell

Local  cellular  networkWith  femtocell

Femto  GW

Internet

Multi-Operator Core Network

Operator  Green’s  Core  NW

Operator  Red’s  Core  NW

Operator  Blue’s  Core  NW

Femtocell

Local  cellular  networkWith  femtocell

Femto  GW

Internet

Roaming

Operator  Green’s  Core  NW

Operator  Red’s  Core  NW

Operator  Blue’s  Core  NW

Agreements

LocalOperatorCore  NW

Femto/Pico

Local  cellular  networkWith  pico/femtocell

Mutual Roaming Non-Mutual Roaming

Roaming (cont'd)

Operator  Green’s  Covered  area

Operator  Red’s  covered  premises

Enterprise  Femto

BTS

BSC

Roaming

Operator  Green’s  Covered  area

Operator  Red’s  covered  premises

Enterprise  Femto

BTS

BSC

Roaming

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing in IMNs

• Outsourcing in IMNs

•  Analysis

•  Conclusion

•  Looking forward

Outsourcing

�  Roots in the manufacturing industry late 1970s ¡  Cut costs

�  Late 1990s ¡  IT & ICT

�  Telecom Industry ¡  IT and/or Network O&M

�  Different business perspective ¡  Focus on core business

÷  CRM and

Operational Expenditure of an indoor network Authoritative third party

�  Network OpEx

�  Customer Relations

�  Interconnect

�  IT

�  Other

Network O&M Outsourcees

33%

21% 10%

7%

3%

21%

5% Ericsson

Nokia Siemens

Alcatel-Lucent

ZTE

Motorola

Huawei

Others

Network O&M Outsourcees

�  Small Cell as a Service

÷ Cloudberry Mobile: a case study

Operator  Green’s  Core  NW

Operator  Red’s  Core  NW

Operator  Blue’s  Core  NW

Agreements

LocalOperatorCore  NW

Femto/Pico

Local  cellular  networkWith  pico/femtocell

Premises  Owner,  a  3rd  party

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing in IMNs

• Outsourcing in IMNs

•  Analysis

•  Conclusion

•  Looking forward

Actors and their roles

�  MNO/JV

�  Network Vendors

�  Regulator

�  Premises Owners

�  Managed service partner (MSP)

Detailed shared indoor mobile ecosystem

MNO  /  JV  

End-­‐to-­‐End  System  providers  

Network  Element  producers  

Smallcell  Access-­‐point  producers  

Component  &  Software  providers      

   Regulator  

Premises  

Premises  Owners  

Subscribers  

Do you remember how it should be !

indoor  solu*ons  &  Deployment  

Outsourcing  Sharing  Network  

Basic indoor mobile network deployment

MNO/JV  

NW  Vendor  

Premises  Owner  

Outsourcing only O&M

MNO/JV  

NW  Vendor  

Premises  Owner    

MSP  

Small Cell as a Service

MNO/JV  

NW  Vendor  

Premises  Owner    

MSP  

Stand alone third party

MNO/JV  

NW  Vendor  MSP  

Premises  Owner    

Wholesale Sharing

MNO/JV  

MSP/NW  Vendor  

Premises  Owner    

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing in IMNs

• Outsourcing in IMNs

•  Analysis

•  Conclusion

•  Looking forward

Research Questions

�  The missing ring ¡  A proper win-win model

÷ Wholesalehsaring

�  Exposed and Hidden actors ¡  MNO/JV ¡  Network Vendor ¡  Regulator ¡  Premises Owner ¡  MSP

�  3rd party qualifications ¡  O&M outsourcee

�  MOSN vs. Romiang ¡  Both

�  Technical considerations ¡  Spectrum

÷ Licensed vs. unlicensed

Challenges

�  Big brother dilemma

�  Coverage dilemma

�  ISP dilemma

�  Regulator

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing

• Outsourcing

•  Analysis

•  Conclusion

•  Looking forward

Technology domain Business domain

�  Smallcells in Heterogeneous

Networks

�  Unlicensed spectrum; ¡  Femtocells

¡  Integrated Femto/Wi-Fi

�  Integrated Femto/Wi-Fi access points

�  SWOT analysis of proposed models

�  Role of Regulatory Authorities

Future work

Questions J

Additional Slides

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing

• Outsourcing

•  Analysis

•  Conclusion

•  Future work

Cost vs. Traffic vs. Revenue

�  End User (Premises)

�  Spectrum

�  Backhaul

�  Femtocell devices

�  Installation

�  Operation & Maintenance Scissors  Effect  

Traffic  volume  vs.  Costs  vs.  Revenues  

Smallcell NW from subscribers' point of view

Core  Network

Modem

FAPINTERNET

BTS

BSC

Hand

 Over

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing

• Outsourcing

•  Analysis

•  Conclusion

•  Future work

Capacity sharing at FeGW

Sharing - Important factors

�  Differentiation ¡  Traditionally: Better coverage, higher data rates and better

quality of services ¡  Untraditionally: Putting telecommunications on top of the

contents/services, business processes and consumers �  Spectrum vs. Capacity vs. Coverage

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing

• Outsourcing

•  Analysis

•  Conclusion

•  Future work

Typical OPEX Breakdown for a European Mobile Operator

23%

27% 23%

8%

7%

12%

Network OPEX

Subscriber Acquisition and Retention

Interconnect

Customer Service

IT

Other

Typical Network OpEx break down based on Macrocell Networks

27%

24% 21%

19%

9%

Site Rental and Electricity

Leased Line Costs

O&M + Planning System

Employee Costs

Support Syst. & General

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing

• Outsourcing

•  Analysis

•  Conclusion

•  Future work

Indoor network

Most viable options taking Sharing and Outsourcing into account

1)  A JV between MNOs deploys and operates the indoor networks.

2)  A MNO/JV deploys the network and a third party only handles the network’s O&M regardless of

network deployment.

3)  A MSP deploys the network and handles its O&M as well, for either one MNO/JV or more.

4)  A MSP deploys its own Smallcell network and makes roaming agreements with MNOs/JVs for

outdoor coverage.

5)  An enterprise deploys an indoor network and manages it itself making roaming agreements for

outdoor coverage.

6)  The MSP (that is also a NW vendor) deploys the network and also takes care of its O&M offering a

comprehensive system based on Service Layer agreements while making roaming agreements for

outdoor coverage.

Cross comparison of Operators and third parties points of view on Smallcell networks

  From Operators’ point of view   From third parties’ point of view  

Type of partnership   Main actor   Outcome  

Valid option   Main actor   Outcome  

Valid option  

Share   JV   Save CapEx   1   JV   Added value   2  

Outsource   Authoritative third party   Save OpEx   2   MSP   Added value   2  

Share & Outsource  

MSP-JV   Save CapEx & OpEx   2 or 3  

MSP   Added value   3  

Enterprise   Special services   5  

Comprehensive System  

MSP   Great Flexibility   6   MSP   New revenue stream   6  

Premises Owner acting as an outsourcee

MNO/JV  

NW  Vendor  

Premises  Owner    

ICOMERA case2

MNO/JV  

NW  Vendor  

Premises  Owner    

MSP-­‐MNO/JV  

Outline

•  Background

• Methodology

• Deployment of indoor mobile NWs

•  Sharing

• Outsourcing

•  Analysis

•  Conclusion

•  Future work

Recommendation

Operators

Traditional operators

MNO

incumbent greenfield

JV MVNO

Third party

MSP Premises Owner Auth. 3rd party

Recommendation (Cntd.)

  Traditional operators  

Type of partnership  MNO  

JV   MVNO  Incumbent   Greenfield  

Rationale  Reducing OpEx

mainly by outsourcing  

Reducing CapEx mainly by sharing  

Reducing CapEx & OpEx  

Reducing CapEx & OpEx  

Recommended option   2 or 3   3   6   6  

Justification  

They already have SMP and are not

willing to risk their position by sharing  

They have enough financial

credibility to implement their

solo network  

Sharing is the origin of JVs so, reducing costs is

a quite convincing

factor  

SMP deficit is their reason to

be a virtual operator so,

lowered costs is a KPI  

Further recommendation   Act as a CS provider  

Benefit from CSs and focus more on

core business activities  

Outsource as much as possible  

Focus on CR and stay flexible  

Recommendation (Cntd.)

  Third party  

Type of partnership   MSP  Premises

Owner   Auth. 3rd party  

Rationale   Generate new revenue stream  

To offer specific services  

To obtain added value  

Recommended option   6   5   2  

Justification  

Their philosophy is to partner-up

with other actors and offer CSs  

They try to cover a niche market

They are believed to be specialists in O&M that do the

job in an optimized manner  

Further recommendation   ---  

Create a new format of model 6 and benefit from

CSs  

---  

Smallcell Repeater

�  Adds both coverage and capacity, with ability to

improve data rates

�  Generates its own signal

�  Reduces uplink interference by removing handsets

from outdoor network

�  Provides full control of handover

�  Fault and performance monitoring and full O&M

support

�  Generates operator-specific signal

�  Requires broadband IP connection to connect back

into network

�  Can feed a DAS system

�  Only extends coverage, no additional capacity (feeds

off macro network)

�  Requires donor antenna which can be expensive to

install on roof

�  The repeater itself can cause uplink interference

creating radio planning problems

�  Handover neighbors same as the macrocell

�  Most repeaters are unmanaged with no automated

fault reporting

�  Cheap repeaters amplify competitors’ signals

�  Works in isolation, but needs nearby macro site

�  Can feed a DAS system

Smallcell vs. Repeater