Signaling Issues in Telecom Personal

Barcelona

May 2012

LTE World Summit 2012

2

WHERE?

ARGENTINA IN A NUTSHELL

3

41 MM

population

USD 11K GDP / capita

(current prices)

+8.9%

Real GPD growth (*)

IMF estimates for 2011 (www.imf.org) and IMF World Economic Outlook 2012 (*) Data from National sources, controversial.

ARGENTINA IN A NUTSHELL

4

TELECOM PERSONAL IN A NUTSHELL

5

TP 18.20 34%

RESTO 36.00 66%

Mobile [MM users]

TA 1.55 35%

RESTO 2.89 65%

Fixed Broadband [MM users]

TA 4.14 47%

RESTO 4.67 53%

Fixed Voice [MM users]

Source: Market estimations 2011

TELECOM PERSONAL IN A NUTSHELL

6

ITALIA BRASIL ARGENTINA

OUR MOBILE INDUSTRY IN A NUTSHELL

7

50 50 50 50 50 50 50 50 48 46 44 43 43 43 43 50

120 120 120 120 120 114

108 101

95 95 95 95

120

0

10

20

30

40

50

60

0

20

40

60

80

100

120

140

160

180

200

Mo

bile

Use

rs [

mill

ion

s]

Ban

dw

idth

[M

Hz]

Spectrum availability vs. Total Number of Users

1900 MHz 850 MHz Users [millions]

MOBILE USERS & ALLOCATED SPECTRUM

8

WHY?

MARKETING STRATEGY

9 INNOVATION & INDIVIDUALITY

MARKETING STRATEGY

10 http://www.personal.com.ar/personalblack/individuos/sm_equipos.html http://www.personal.com.ar/promociones/internet_por_dia

SOCIAL BEHAVIOUR

11

LIFE CYCLE OF SERVICES

12 Elaboration from public Financial Reports: www.telecom.com.ar/investors/index.html

66% 60%

52%

31% 35%

41%

3% 5% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011

SERVICE REVENUE SHARE

INTERNET

DATA (SMS)

VOICE

+41% CAGR

+9% CAGR

-8% CAGR

13

WHAT?

DATA VOLUMES

Source: BSS data 14

0

200

400

600

800

1000

1200

1400

1600

DIC 2009 DIC 2010 DIC 2011

TB /

mo

nth

DATA TRAFFIC PER SOURCE TYPE

SMARTPHONES

DONGLES

85% of 3G users 200 MB / month

15% of 3G users 2 GB / month

RNC LOAD

Source: GSMA, Fast Dormancy Best Practices, May 2010. And Nokia. 15

RRC CONNECTION STATES SIGNALING IN TRANSITION FROM IDLE TO DCH

RNC LOAD

Source: OSS data, Oct. 2011 16

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0 20 40 60 80

Tho

usa

nd

s

PROCESSING LOAD [%]

RNC PROCESSING LOAD VS. RRC EVENTS

RRC / hour

AIR INTERFACE CONGESTION

17

0%

28%

13%

1% 0%

58%

LackDlAse LackDlChnlCode LackUlHw LackDlHw

ACCESS REJECTION CAUSES DISTRIBUTION

Source: OSS data, May 2012

18

WHO?

RESEARCH DESCRIPTION

19

• RNC Córdoba

• Largest one in our network

• Results from 27th October 2011 (24 h)

• Processing and analysis of data by Huawei

UE TYPES AND BRANDS

20

35%

18% 14%

11%

8%

7% 4%

3%

Smartphone Distribution

Motorola

Samsung

Nokia

RIM

Sony Ericsson

LG

Apple

Other

14%

80%

6%

Terminal Distribution

SmartPhone

GeneralUE

datacard

28%

27% 14%

8%

6%

3% 3%

4% 1% 6%

Terminal Brand Distribution

Nokia

Samsung

Motorola

LG

Sony Ericsson

RIM

Huawei E173

ZTE

Apple

Other

Take UEs with more than 10 PS RAB in BH as Smartphone Take only PS service UE as datacard

UE CATEGORIES AND 3GPP RELEASES

21

61% 32%

7%

UE Release

RELEASE_5

RELEASE_6

Other

43%

47%

9%

1%

HSDPA CAT

6

8

9

other

HSDPA UE Category

HSPA Capability

6 3.6Mbps

8 7.2Mbps

9 10Mbps

10 14.4Mbps

11 1.8Mbps

12 1.8Mbps

3GPP Rel. Main features

Release 5 HSDPA

WB-AMR

Release 6 HSUPA

Release 7

HSPA+ UL 16QAM DL 64QAM

MIMO

PS ACCESS DISTRIBUTION

22

Smartphone, Data card and other terminal take 75%, 18% and 7% of total PS access.

Most of PS access times is generate by Smartphone.

The top 20 users contribution is 67% of PS access. The top 5 users contribution is 30%.

7%

7%

6%

5%

5%

4%

4%

4% 3%

3% 3% 3% 2% 2% 2%

2% 2%

2% 2%

2%

33%

PS RAB Times Huawei E173

ZTE MF190

Motorola DEFY

ZTE MF110

Motorola SPICE

Samsung GT-I5500L

Sony Ericsson XPERIA X8

Motorola A953 MILESTONE 2

Motorola MB501

RIM BLACKBERRY CURVE 9300

ZTE MF110

LG P350G

Motorola MB300

Huawei E173

Samsung GALAXY ACE S5830

Huawei E176 Huawei E176

Nokia E66

Nokia 5230

Huawei E1756

Motorola A953 MILESTONE 2

other

75%

18%

7%

PS RAB Times

SmartPhone

Datacard

GeneralUE

USERS DISTRIBUTION

23

Top 20 users take 42% of total PS access.

The 14% Smartphone contribute 75% of PS access (based on previous slide)

2% 1%

3%

1%

3%

5% 3%

1%

3% 1%

1% 2%

2% 1%

2%

0% 6%

5%

0% 1%

58%

User Number Huawei E173 ZTE MF190 Motorola DEFY ZTE MF110 Motorola SPICE Samsung GT-I5500L Sony Ericsson XPERIA X8 Motorola A953 MILESTONE 2 Motorola MB501 RIM BLACKBERRY CURVE 9300 ZTE MF110 LG P350G Motorola MB300 Huawei E173 Samsung GALAXY ACE S5830 Huawei E176 Nokia E66 Nokia 5230 Huawei E1756 Motorola A953 MILESTONE 2 other

14% 6%

80%

User Number

SmartPhone

Datacard

GeneralUE

RNC RESOURCES CONSUMPTION

24

SPU Load Contribution

INT Load Contribution

DPU Load Contribution

CNBAP Load Contribution

Penetration

SmartPhone 52.33% 52.99% 46.87% 67.02% 13.67%

GeneralUE 33.02% 32.52% 14.21% 16.81% 80.61%

datacard 14.64% 14.49% 38.93% 16.17% 5.72%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00% SmartPhone GeneralUE datacard

RNC RESOURCES CONSUMPTION

25

0.0000%

0.0020%

0.0040%

0.0060%

0.0080%

0.0100%

Nokia Apple Samsung Motorola Blackberry

SPU

Interface

DPU

CNBAP

PER USER IMPACT ON RNC RESOURCES

26

LESSONS

DIMENSIONING FOR A NEW SCENARIO

27

10X DONGLES / SMARTPHONES (DATA VOLUME) SMARTPHONES / DONGLES (SIGNALING LOAD) SMARTPHONES / DONGLES (USERS)

NEXT STEPS

28

SHORT TERM GROW BIGGER • Design for lower usage of RNC (more RNCs)

• Deploy 2nd 3G carrier LONGER TERM GROW SMARTER • 3GPP suite of solutions (requiring devices compliant with Rel.8)

Network controlled Fast Dormancy Fractional DPCH SRB over HSPA

• Deeper research on OS versions and APPs (currently not certified)

29

Q&A