Assessing the costs and benefits of HSDPA

8/3/2019 Assessing the costs and benefits of HSDPA

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Assessing the Costs andAssessing the Costs and

Benefits of HSDPABenefits of HSDPA



2

Scope

g Benefits of HSDPA

gMarket applications

g Multi User Gain

g HSDPA deployment strategy

g

Cost analysis and business case example



3

HigherHigher

CapacityCapacity

RicherRicherApplicationsApplicationsHigherHigher

Data RatesData Rates

2x more subscribers

and

5x throughput

(10 Mbps vs. 2 Mbps)

Lower down link packet

delay –improvement

for streaming,

background

and interactive

applications

Peak Data Rates

up to

3.7–14 Mbps

per user

HSDPA further reduces

the cost per megabyte

What are the Benefits of HSDPA?



4

g The three pillars of UMTS are 2G/3G Continuity of Service, Multi-Media

Support (CS + PS in the same time), and High Data Rates

n The highest data rate with UMTS Rel’99 is 384 kbps and some Operators are

capping this radio bearer in order to preserve the cell capacity

g A complete UMTS Solution requires HSDPA/HSUPA

n Clear Differentiation from 2G and a Strong Respond to 1x EV/DO

n Higher capacity (At least twice more subscribers per cell)

g HSDPA is the seamless broadband accessseamless broadband access

n Trigger the usage explosion for the Consumer Market by leveraging the end userexperience of fixed broadband (ADSL, Cable, etc…)

n Provide a virtual office environment everywhere for the Business Market

Empowering UMTS with HSDPA

LowerLower

LatencyLatency

HigherHigher

CapacityCapacityHigherHigher

Data RatesData Rates

UnUn--efficient usage !efficient usage !10ms

2ms

““ Big shared pipeBig shared pipe””

TimeTime

multiplexingmultiplexing

CodeCode multiplexingmultiplexing

HSDPAUMTS Rel’99



5

Peak User Data Rates (bps)

Theoretical

384k 154k2 M2.4M 3.1M

14.4M

3.6M

7.2M

E D G E

C D M A

1 x

W C D M

A

1 x E V - D O

1 x E V - D V

H S D P

A

E n h a n c

e d

U E

H S D P

A

U E C a t . 6

3.6M



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Why HSDPA?

n To deliver wireless broadband services while preserving

the capacity of the Cell for Voice and Video Telephony

n To boost usage in business sectors by providing a virtualoffice environment anywhere and to trigger usage in the

consumer market by leveraging the end-user experienceof fixed broadband

Faster downlink and more capacity in cell



7

Web Browsing,

Corporate VPN,

Sales Force Automation

Business Market

More ARPU

+ 50% of Usage !Much More

New Subscribers

Music, Gaming,

Infotainment On Demand,

Video Streaming

Consumer Market

More ARPU

+ 25% of Usage !

New Subscribers

HSDPA

More Services

Higher Bandwidth

Lower Latency

HSDPA will increase data usage!

HSDPA Market Applications



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A Shorter Round Trip Delay

g Round Trip Delay is significant in systems that require two-way interactive communication such as Voice over IP, Multi-

User Gaming which requires less than 100 ms…g Small Round Trip Delay is also critical for ACK/NACK data

systems where the RTD directly affects the throughput

nn High TCP throughput requires RTD < 100 msHigh TCP throughput requires RTD < 100 ms

g HSDPA key delaysn DL TTI = 2 ms reduces RTD (R99 TTI = 10 ms, 20 ms,...)n Capacity Request/Allocation over Iub increases RTDn Smaller Iub DL framing delay (2 ms) reduces RTD

More Interactive Applications & Higher TCP Throughput



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Impact of RTD on E2E Throughput

Simulations, user Cat 6, AWGN

RTD < 100 ms required

for high HSDPA throughput



10

HSDPA Drive Calls

g Drive test in Montigny (Paris suburb), 4 km trip

n Between 20m and 1000 m from the Node B

n Suburban area

n Same drive test done 4 times

n Around 15 min each

nSpeed between 0 and 50 km/h

g Qualcomm HSDPA test mobile

n Category 12

n Rake receiver, 8 fingers, resolution Tc/8

g 1 cell only, 1 UE, HSDPA only traffic

g FTP download, file size 50 Mb (full queue)



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HSDPA throughput & RX power

g UE

n Category 12

n Max throughput 1.44 Mb/snQPSK only

n 1 RX

n Rake receiver: 8 fingers,resolution Tc/8

g The throughput dependshighly on the received power.

g Thanks to the real timeknowledge of radio conditionsfor each user, the Node Bmatches the exact throughputto the available badwidth !

0 100 200 300 400 500 600 700 800 900 1000-100

-90

-80

-70

-60

-50

-40

-30

A G C R X p o w e r ( d B m )

0 5 0 1 00 1 50 20 0 25 00

20 0

40 0

60 0

80 0

1000

1200

H S D P A t

h r o u g h p u t



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Multi-User Diversity gain

gTransmitting to users withfavorable short term radioconditions can increasesignificantly the throughputcompared to a Round-Robinscheduler.

gThe obtained gain is called Multi-User Diversity Gain (MUG).

g The MUG increases as the cellload increases. The probability to

have one user with very goodradio conditions is high. User 2 scheduled User 1 scheduled

A user is not scheduled if in deep fading !

0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2-35

-30

-25

-20

-15

-10

-5

0

5

Time (sec )

F a s t F a d i n g a m p l i t u d e

( d B )

Proportional Fair Scheduling principle

User 1

User 2



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Multi-User Diversity Gain

g The MUG decreaseswhen

n The #RX increases

n The UE speed increases

n The channel delayspread increases

g Up to 100% gain overthe Round-Robin &

R’99 DCH PS RAB.

0 5 10 15 20 25 300

20

40

60

80

100

120Multi-User Gain - Single - 3 km/h

#users per cell

M U G

%

1 RX

2 RX

0 5 10 15 20 25 300

10

20

30

40

50

60

70

80Multi-User Gain - Pedestrian_a - 3 km/h

#users per cell

M U G

%

1 RX

2 RX



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Partner – Orange Israel

The Cellular Market in Israel

PartnerGSM

UMTS

32%1999 2,202

CellcomTDMA, GSMEDGE,UMTS34%1995 2,391

Pelephone NAMPS, CDMA1X EVDO

30%1986 2,070

MIRS 4%1997 290 iDEN

Marketshare

OperationStart

Number ofsubscribers

Technology

g Number of Subscribers:

n Total > 2,200,000

n GPRS > 400,000

n UMTS > 20,000

g NW size

n 5 main switching locations

n 2200 2G BTSs / 1200 UMTS NodeBs

Partner

g Vendors:

n GSM/GPRS CN - Ericsson

n

BSS - Ericsson - 68%, Nokia - 32%n UMTS - Nortel

g Average Drop Call Rate: 0.8%

n (Main cities<0.7%)

g UMTS commercial launch: 1/12/04



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UMTS rollout in Partner

UMTS

g Area coverage = 22%

g Pop. Coverage = 91%

g Plan to finalize country coverageby EOY 2005 (~1700 Sites)

GSM/GPRS

g full country and population coverage

Population

Area

6.86M

21,671 Sq. Km.

Israel



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Deployment Strategies

The Dimensions of HSDPA deployment strategy

g Coverage targets

n In Building solutions

n Hot Spots / Zones

n Preferred Areas

n Country-wide coverage

g Carrier strategyn Shared with R99 and/or HSDPA dedicated

g Capacity or coverage driven rollout

n Need to provide user experience everywhere?

n Need to expand my PS capacity?

g Infrastructure and Terminals roadmap

g Timeline



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Where to deploy HSDPA?

Cost of deployment

Revenue

/ Site

Hot Spots

In building

Solutions

Preferred

Areas

CoutryWide



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Identifying the potential Hot Spots / Zones

n Expected high PS traffic areas (e.g. Urban office areas,Suburban high-mid class areas etc.)

n R99 Resource usage monitoring

82nd carrier deployed8Node B with expanded CEM capacity (e.g. CEM128 or higher)

8High power usage (used for PS)

n In building solutions

8Public “high usage” sites like Hospitals, Universities etc.8Business “Prioritized customers” sites.



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F1 = R99+HSDPA


Carrier implementation strategy (2 carriers operator)

F1 = R99

F2 = HSDPA

F1 = R99

F2 = R99+HSDPA F2 = R99+HSDPA

F1 = R99+HSDPA

HSDPA Load

R99

load

Assumption – 1 MCPA per carrier

HSDPA dimensioning indicates no foreseenneed for 2nd carrier in up to 5 years

Mobility considerations should be included



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Network upgrade to HSDPA

Is Macro Sites densification effective? n Can it improve end user experience in HSDPA ?

n Can it improve throughput?

Macro site densification will not improve C/I on cell edge.

However, adding sites in coverage holes – can always help…



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2%

0.2 dB

3%

0.3 dB

PS IB @384 kb/s

0.3 dB0.3 dBUE Tx power loss

2 trans CQI_ACK

3%3%Coverage loss

5%7%Coverage loss

0.4 dB0.6 dBUE Tx power loss

1 trans CQI_ACK

PS IB @128 kb/s

PS IB @64 kb/s

DPCCH

DPDCH

HS-DPCCH

DPCCH

DPDCH

Network design @ I/B@64kbps,no major HS-DPCCH impact !

HSDPA Vs Network Design

HSDPAHSDPA

same coverage

Release99 with designfor PS64



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Timeline considerations

n Forecast for PS capacity needs

n Competitive environment

8Competitors capabilities (EV/DO)

8Technology leadership

8Competitors deployment of HSDPA

n Opportunity to develop new market segments

n Is there a need to improve PS performance

n Terminal availability

n Infrastructure availability (which capabilities?)



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g1

RelativeCost todeliver aMB

g1

g3

g3

g7

g20

g0.5

g0.25

gN/A

gN/A

g14 Mbps gLow

PeakNetworkSpeed

Latency

g2.5 Mbps gLow

g2.0 Mbps gHigh

g307 Kbps gHigh

g384 Kbps gHigh

g115 Kbps gHigh

g1.5 Mbps gLow

g3.0 Mbps gLow

g11 Mbps gLow

g54 Mbps gLow

gFull

Mobility

gFull

gFull

gFull

gFull

gFull

gNone

gNone

gLimited

gLimited


The Competitive environment

Mobility

BroadbandPerformance

CompetitiveCost Structure

HSDPA

Source: Motorola

HSDPA

1x EV-DO

WCDMA

1x RTT

EDGE

GPRS(CS 1- 2)

DSL

Cable

WiFi Hotspot

WiMAX



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Deployment StrategiesInfrastructure vendors Roadmaps

2006 20072005

Testing/IntegrationActivities

First commercialrelease

Second commercial release

5 codes/ user >5 codes / user

2006 20072005

Terminal vendors Roadmaps

First chipsets and IOTwith RAN vendors

First Data Cardsup to 3.6M

First Handsetsup to 3.6M Commercial release of up

to Cat 6 HSDPA terminals

5 codes / user



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Business CaseCost Factors g Node B

n HW upgrade:

8 additional CEM (HS-enabled)

8Additional carrier (for very high HSDPA traffic case)

n SW upgrade

n Savings in HW – Can save upgrades vs. R99 (traffic dependant)

8PS traffic increase requires CEM / 2nd carrier upgrades

8HSDPA being more efficient may save CAPEX

n Additional Node Bs?

8Not for outdoor coverage, if network is planned for PS64 and up

8Indoor solutions – YES specially for business costumers, hot spots etc.

g Backhaul / Backbonen Expected increase in Iub capacity per Node B

n Backbone PS traffic increase

g PS Core and IT servers need to be scaled



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Business CaseWill HSDPA bring higher revenue than R99?

g Throughput

n Providing higher throughput per user higher traffic per user

g Applicationsn Enhanced portal

n Larger downloads >2-3 minutes (MP3, videos, etc)

n Very high quality streaming (over HS-RABs)

n Mobile TV

g Pricing strategy

n E.g. Differentiating (QoS, App’s) HSDPA from R99 users

(HSDPA = higher cost ?)n Could maximize “skimming” effect (more ARPU for early

adaptors, high end users etc)



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Business CaseRevenue factor = ARPU g ARPU increase from GPRS to UMTS R99

More than 100%ARPU Ratio

231%Data volume Ratio

5%Subs Ratio

UMTS R99 vs. GPRS

g ARPU increase for HSDPA vs R99 is possible, but scaled down:

n Not such a big step like GPRS to UMTS was

n Slow market adaptation to advanced high speed applications

n Applications?



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Business Case

Figures are example only.

HSDPA – the demand

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2005 2006 2007 2008 2009 2010

N o

. o f U s e r s

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

H S D P A p e

n e t r a t i o n r a t e %

3G

Cat 6 users

Cat 10 users

R99 users

HSDPA penetration rate



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Business CaseBusiness Case methodology

HSDPA Additional Revenues

HSDPA ARPU

HSDPA penetration rate

HSDPA Implementation Costs (Capex + Opex)

Node B SW+HW upgrades [50%]

Backhaul Transmission [44%]

Backbone Transmission [2%]

PS Core upgrades [4%]

Balance



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Thank YouThank You

for your attention!for your attention!



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Backup slidesBackup slides



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Impacts on Backhauling

Maximum expectedTraffic per Node-B

30-60 Mbpsper Node-B

< 8Mbps

Per Node-B

Up to 2 UEs

Category 6

Introduction ofadvanced UE receivers

< 16Mbpsper Node-B

Iub1,6Mbps / Cell

Air3,7 Mbps / Cell

Iub4,8Mbps / Cell

Air14Mbps / Cell

Iub9,1Mbps / Cell

Air

7,4Mbps / Cell New transmissionsolutions

Ethernet Services,Fiber, xDSL

or Microwaves

Broadband Backhaul Solution

in a Bandwidth Demanding Access

5

SF16 Codes

10

SF16 Codes

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SF16 Codes

Theoretical Worst case in

some Hot Spots

Documents

Assessing the costs and benefits of HSDPA