Long Term Evolution Deployment - What Telcos Need to Consider Before Starting Their 100% Data Journey

7/27/2019 Long Term Evolution Deployment - What Telcos Need to Consider Before Starting Their 100% Data Journey

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Long-Term Evolution (LTE)

What Telcos need to consider

before starting their 100% datajourney

Accenture PoV


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1. Long-Term Evolution: Evolution Overview2. Moving towards LTE adoption: LTE journey strategy

3. Roll-out & Planning: fine tuning vs. reengineering

4. OSS: from siloed networks towards service-orientedoperations

5. Services: Bandwidth-hungry services on-the-go,challenges and opportunities.

Agenda

2


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3

Long-Term Evolution:

Evolution Overview

Agenda


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The industry is changing faster than ever...

Mobile network operators are in the midst of a highlydisruptive new era: the 100% mobile data

-

100

200

300

400

500

600

2009 2010 2011 2012 2013 2014 2015

Millio

nsofMobileBroadbandC

onnections

Japan

Western Europe

Middle East and Africa

Eastern Europe

Asia/Pacific

North America

Latin America

2009-15 CAGR = 35,2%Both consumers and

business users continue to

demonstrate a strong

demand for mobile data

services, driven by:

Accelerated adoption ofsmartphones and newmobile devices (Tablets,Laptops, M2M devices)

Significantimprovements in userexperience and cheapflat rate data plans

4

Mobile Broadband Connections


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Mobile devices relentless adoption is dramaticallychanging user behavior

5

Mobile devices are driving traffic growth, with Smartphonesand Laptops as the major generator of traffic.

Users behavior are shifting

to a massive adoption of

bandwidth-hungry services

on-the-go:

Mobile Video streamingsuch as Netflix andYouTube

Music streaming such asPandora, and Spotify

Cloud applications and

services such as DropBoxand Google Docs

Source: Cisco Visual Networking Index Feb 2012

-

2

4

6

8

10

12

2011 2012 2013 2014 2015 2016

MobileDataTraffic(ExaBytesper

Month)

Other Portable Devices

M2M

Home Gateways

Tablets

Laptops and Notebooks

Smartphones

Nonsmartphones

2011-16 CAGR = 46%

Mobile Data Traffic


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Technology evolutions is mandatory

Mobile bandwidth request is increasing on a constantdouble-digit rate thus imposing to Operators continuouslyinvestments in network development

WCDMA(UMTS) HSPA

LTE LTE Advanced

HSPA+ (HSPA Evolved)

Rel-99 Rel-5(HSDPA)

Rel-6

(HSUPA)

Broadband cap.Quality of Service

DL: 14,4 MbpsUL: 5,7 Mbps

DL: 28 MbpsUL: 11 Mbps

2x Data cap.>2x Voice cap

Rel-7 Rel-8 Rel-9 Beyond Rel-9



DL: 100+ MbpsUL: 23+ Mbps

Multicarrier2x Data rates

Multicarrierenhancements

20 MHz Deployment

Rel-8 Rel-9 Rel-10

10Mhz 10 MHz

10Mhz 20Mhz >20Mhz



DL: 300+ MbpsUL: 150+ Mbps

Multicarrier, TDD

Multicarrierenhancements

> 20 MHz Deployment

DL: 384 KbpsUL: 128 Kbps

Note: Maximum rates (Single User)

2009 2010 2011 2012+ 1999

6


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Download: 300+ Mbps

Upload: 150+ MbpsPeak Data Rates

0-15 km/h optimized

15-120 km/h high performance

120-500 km/h supportedMobility

User plane: 5 ms

Control plane: 50-100 ms

Low Latency

5 km full performance

30 km some degradation

100 km no preventedCoverage

7

LTE performances plan to shred HSPA capabilities andprovide to the users the required bandwidth.

LTE promises would it be enough?

LTE is getting closer to theoretical limits (Shannon)


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LTE Deployment Worldwide overview

8

319 Operators are investing in LTE around the globe as ofJune 2012 with 80 commercial networks in 38 countries

Source: GSA Evolution report LTE Summit 2012

Devices

Frequenc

yFragmentati

on

MarketS

haring5 operators

account formore than90% of total

LTE market(US, Japan,Korea)

Europe andothermarketsmainly

adopt LTEas a Hot-SpotCoverage

20

Frequencybandsaround theglobe forLTE FDDdeployment

Vs.

4 Bands 2GVs.

5 Bands 3G

More than300 LTEcapabledeviceslaunchedalready

SeveralProductsare Single-Banddevices

LTE is the fastest

developing mobile system

technology ever!

LTE is in a early adoptionstage, it is expected to enterthe mainstream phase in thelate 2012.


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LTE capabilities: will it change user behavior?

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LTE usage pattern highlights how increased bandwidth led toa shift in user habits towards streaming applications, morethan doubling compared to UMTS technologies

Source: The NOW Factory LTE Summit 2012


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LTE capabilities: free vs. premium ?

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Application usage remarks Video streaming as the killerapplication for LTE, with premium services more than

doubling free video services.

Source: The NOW Factory LTE Summit 2012


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Moving towards LTE adoption: LTE

journey strategy

Agenda


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LTE is much more than simple radio networkdeployment

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An integrated approach is needed to exploit all possiblesynergies with existing access and transmissiontechnologies

Its not enough tobuild and deploy afunctional network

OSS and BSS must also beset up from day one tominimize technical andfinancial risks

Operators must recognize

a return on their hugeinvestments FAST

All existingcapabilities and

business units will

be impacted

Parallel deploymentprograms (e.g.HSPA+) will be

impacted and will

require accuratesynchronization

LTE will also coexistwith other fixed

access technologies

for years


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Executing a safe transition towards the all IP world

A phased transition has to be defined in order to preventcannibalization of the existing GSM/UMTS revenue streams

LTE RF coverage

deployment

LTE

Deployment

Main Stages

Policy managementdeployment

Enhanced billingdeployment

IMS and service layer

enhancement

1

2

3

4

13

The evolution in accessinfrastructure is just the

beginning. To successfully deliver whatdigital consumers are asking

for, it is fundamental that

operators move their focus

from selling voice minutes to

selling data services wherethe future lies.

The real challenge for operatorswill lie in the transformation ofoperations and businessmodels.

The key issue is to plan andexecute a safe, phasedtransition.


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How can LTE deployment leverage existinginfrastructure?

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Roll-out process, in the short to mid-term, will benefit fromexisting GSM/UMTS infrastructures, minimizing theacquisition of new sites by reusing existing ones

Dense Urban EnterpriseUrban

PicoMicroMacro Cells Femto

Home

Software-Defined-Radio canhelp operators to make futureproof investments,

reconfiguring newly installedGSM/UMTS capacities in LTEwhen needed.

Frequency Grid will affectnetwork coverage forcingoperators to densify sitenumber and revise thehierarchical coverage.

The network will becomes amix of macro, pico, femto

base stations and operator

deployed relay stations

The dense deploymentgreatly improves networkcapacity, and provides richeruser experience and in-building coverage

LTE RF coveragedeployment

LTE

Deployment

Main Stages



IMS and service

layer enhancement:

1

2

3

4

4 Small Cells to 1 Macro Cell is a goodratio in dense urban LTE environments

- Hauwei - LTE LATAM 2012)

British Government allocated 150m

funds to accelerate Small Cells Urban

Broadband- BT LTE Summit 2012


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Backhauling needs to be re-engineered to guaranteecorrect bandwidth and latency

Existing backhauling may not be sufficient to provide the100Mb/s per site recommended for LTE, with latency as keydifferentiating factor


LTE

Deployment

Main Stages



IMS and service

layer enhancement:

1

2

3

4

15

Wired

Wireless

Fiber

Rent

Build

Copper

LicensedSpectrum

Un-LicensedSpectrum

Point 2 Point

Point 2 MultiPointIn 2011, US Wireless carriers

allocated roughly two-thirds of

their spend on OCx [50Mbps] &

higher bandwidth circuits

- Atlantic-ACM (Analyst)

British Government has

allocated 150M for Microwave

backhauling for Rural Areas- BT LTE Summit 2012


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The radio access layer is not a standalone domain

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Transport and Core networks may become the real bottle-neck for customers experienced quality thus requiring toactively manage traffic and users profile

The massive deployment ofRadio elements will pushCore and Transportnetworks to the limits

Operators will require to

differentiate between

traffic types and required

quality of service

Policy enforcement rulesneed to be applied todifferentiate between trafficand users profiles

Voice and premium datatraffic should be able togrant pre-emption right onother streams ensuring therequired QoE.

Traffic Clustering

Policy Management

Traffic Class

Policy DB

Policy Enforcement Decision

Voice traffic

Best-effort Video Traffic

Best-effort data traffic

Premium data traffic

Policy & Rules

Congestion Management

timeCongestion Zone

Bandwidth

timeCongestion Zone

Bandwidth


CAP Application

CAP CAP



LTE

Deployment

Main Stages



IMS and service

layer enhancement:

1

2

3

4


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Seizing the profitable opportunities requires aproactive and dynamic approach

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To successfully deliver what digital consumers are asking for,it is fundamental that operators move their focus from sellingvoice minutes to selling data services where the future lies

Operators should abandon

all-you-can-eat data plans

and implement dynamicbilling profiling capabilities

Differentiate the offering, witha basic scheme with capacityand speed limits

Define Modular additional feeswith thresholds and bundling

services differentiated for on-market maturity and customerprofile

Define event-triggered fees

Users should be able tochange their billing plan,adding desired services on-

the-go.

Profile A: 30 MBps - 10 $/ Week

Profile B: 4 MBps - 4 $/ Month

Profile C: 8 MBps - 10 $/ Month

Profile D: 10 MBps - 20 $/ Month VOICE

VIDEO DATA

SERVICES

Turbo Bandwidth

Profile A: Improved Netflix - 5 $/ Week

Profile B: Improved Skype - 4 $/ Month

Profile C: Improved Xbox Live - 10 $/ Month

Profile D: Improved Facebook - 2 $/ Month

Turbo Applications


LTE

Deployment

Main Stages



IMS and service

layer enhancement:

1

2

3

4

US: Verizon abolishes unlimited data South Korea: Operators do not offer

unlimited data Japan: No unlimited from May 2012,

5GB caps only- Ovum LTE Summit 2012


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Harvesting Network Intelligence to monetize andoptimize

18

Service layer enhancements will be a mandatory step toreduce revenues cannibalization by OTT and third partyservice providers.


LTE

Deployment

Main Stages



IMS and service

layer enhancement:

1

2

3

4

OperatorValuable

Assets

DeviceAwareness

AccessTechnologyAwareness

Session-State

Awareness

LocationAwareness

UsageVisibility

Operators should Implement IMS

capabilities to successfully

manage connectivity silos

breaking (ubiquitous 3G/ Wi-Fi/

LTE mobility)

Operators should regain control overthe dumb-bit-pipe, start selling anexperience, not just a technology

End-user perceived Quality ofService should become a Valuableasset to sell to OTT and third party

service providers

Make partnership with OTT offeringthe control on the QoS effectivelyperceived by the end-users.


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Data Layer consolidation, avoiding datainconsistencies and systems misalignments

19

IMS and HSS deployment will give to Operators theopportunity to consolidate the old HLR and User DBs

User Data

Repository

Dataless FE

Applications

AAA

PLMN

Front-End

Application

Front-End

Application

Front-End

Application

User Data Convergence

AuC

HLR

HSS

MMS

A.S.

HLR are mostly in Phase-Out

Operators should install new HLRsupporting LTE and DisasterRecovery capabilities

Operators can close the loop onall data layers on a singleplatform, giving more stableservices, improved data

consistency and enabling newservice creation with shorter time-to-market.


LTE

Deployment

Main Stages



IMS and service

layer enhancement:

1

2

3

4


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Roll-out & Planning: fine tuning vs.

reengineering 20

Agenda


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21

Roll-out and capacity planning processes should be re-

engineered under an industrialized approach in order tooptimize capital intensive investment planning.

Capacity planning

LTE deployment will require a

huge incremental of cell sites

compared to previoustechnologies

Roll-out and capacity planning haveto be carefully planned in conjunctionwith capabilities in the backhauling,transport networks and supportsystems.

The main LTE planningchallenges regard the coexistenceissues with other radio networks: thedeployment of the new access layerwould not leverage only the existinginfrastructures.

Source: Evercore Mobile World Congress 2012


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Capacity planning

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Network analyticsLTE Planning

Enablers

Centralized command

tool center

Network sharing

An industrialized approach is required to

improve the efficiency of the networkcapacity planning process

Operators should use customerinformation to improve LTE deploymentstrategies and enhance network-widevisibility

Strategies should take into account all

barriers not related to technology inorder to fully exploit LTE thus

selecting the best strategy per region

and cluster area.

Roll-out and capacity planning processes should be re-

engineered under an industrialized approach in order tooptimize capital intensive investment planning.

Centralizedcommand


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Handling the massive deployment withoutincreasing operational overhead, How?

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Define a centralized Command Center with a focus onProduction and tightly integrated with Process

Improvement and System Automation initiatives

Implement E2E view of the

process, systems, data flows,

handoffs

Simplify and automateprocess, systems, organizations

Define quantifiable metrics tomanage and measureperformance

Drive to one truth reporting

with E2E visibility

Track and manage productionwith an E2E provisioningworkflow tool

Enforce quality measurement(e.g. aging, rework)

Establish focused SWAT teams

to rapidly resolve issues

Command Center

Financial

Management

Program

Delivery

Common

Metrics

Forecast

Models

ProductMarketing

Device Planning& Engineering

RANPlanning

NW & ITOperations

Core/TX Planning &Engineering

CustomerOperations

SiteManagememnt

ProductMarketing

NetworkCreation

ServiceDelivery

InfoTechnology

Supply ChainManagement

Mission Control provides site level and program level status

SWAT Team

E2E Process

Program Level Information Transactional Data (at site level)


Enablers

Centralized commandtool center

Network sharing

Centralizedcommand


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Measuring the performances to tracking progressvs. the plan and identifying areas for improvement

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The Command Center drives production and focuses

delivery using daily and weekly standard reports to givevisibility to across the end-to-end process to multipleaudiences

Inventory Pipeline - tracks inventory in the servicedelivery pipeline to drive progression, aging analysishighlights idle time driving to identification of

bottlenecks and dependencies

Anticipated Completions applies a criteria to theService Delivery pipeline to identify sites with a highprobability of a successful completion, analyzedependencies to predict throughput

Deep Dive Reviews data driven analysis andinterpretation of data required for specific deep dives

Issue and Roadblock Analysis andQuantification using standard and ad hoc reporting,find the root cause of the issue and escalate forresolution

Tactical Solutions & Delivery Triage issues withimmediate access to Single Point of Contacts, driveresolution and integrate with process improvementteam for future fix


Enablers

Centralized commandtool center

Network sharing

Centralized command


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Traffic and user behaviour, a key element to makeconfident business decisions

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Real-time usage and user profile data enables operators to

make real-time decisions regarding service plans andpremium offerings

Real-time analysis and

reporting of detailed traffic

patterns - giving a complete

picture of the customersexperience

Application of descriptive andpredictive analysisalgorithms to determinerelationships in customers habitsand level ofsatisfaction of services -prediction of customers churn

Analyze usage patterns toproactively up-sell new servicesand drive new networkexpansions

Presence Data Customer andMarketing DB

Real Time Campaign

Network Planning

Utilization

Real time Presence Users Profile & MarketingData

SDP BSS

Sites Clustering basedon services utilization

ResourceInventory

TrafficAnalysis

GeoLocation

Target Customers

Investments


Enablers

tool center

Network sharing

Centralized command


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Network Sharing strategies, a cost savingopportunity

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A clear strategy and a detailed operating model have to be

defined to address shared infrastructure requirements.

Site Sharing

1

Site +AccessSharing

2

Full RANSharing

3

Sharing solutions

Only sites are shared.Partners maintain

separate RANs andseparate access andbackhaul

Sites and access areshared (potentiallyextending intobackhaul)

Partners maintainseparate RANs

RAN, sites and accessare all shared


Enablers

tool center

Network sharing

*Site related OPEX basing on 5 years period / no site consolidation/transition/transformationcosts

SeparateRAN

networks

Active RANsharing

100%

0%

Network CAPEX/OPEX*

40%Savings of up to

Nw Sharingimplemented

by MS Partner

.additional

10-15%OPEX savings

30%

Typica

lexpenditures

forMNO 30%

100%

0%

Totalexpenditure

NetworkCAPEX &

OPEX

Marketing

Inter-connection

Other costs


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27

OSS: from siloed networks towards

service-oriented operations

Agenda


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Service-oriented operations, how to correlate networkissues to service quality / impact.

28

Bridging network and Customers, through correlation of

weak and strong signals, and defining service qualityaccountabilities.

BSS

DemographicsInformations

OSS

NetworkTopology

Real time TrafficData Acquisition

Location & Network TopologyData Acquisition

HistoricalTraffic Data

Data Mining

Cluster A: < 20% probability to congestion

Cluster B: 40% - 70% probability to congestion

Cluster C: 20% - 40% probability to congestion

Cluster D: > 70% probability to congestion

CongestionProbability

Congestions can result inrevenues lost - Poor downloadspeed can lead to a poor qualityof experience

Operators will need to

proactively monitor the quality

of running services as

perceived by customers (QoE) -

Rapid detection and

identification of problem on

devices, users and applications

Define a centralized OperationCenter to activate and overseethe continuous improvementcycle, to measure, evaluate andoptimize operations, processes,performance, quality of deliveredservices, and client satisfaction.


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Provisioning & Activation, how to enables innovativeand dynamic services management

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Delivering an end-to-end capable Provisioning chain to

manage hot provisioning of innovative LTE services

PSTN PLMN

NGIN

OSSBSS

OSSBSS

NGUC

Portal

VoIP

Other AS

SDP

Cloud

Services

NGUC

IP-PBX

VoIP

IN

Services

IPTV

VoLTE

RCS

Access

Control

ServiceLayer

Application

PortalIT

IMS

OTTV

Enhancement of Service

Catalogue capability, more

structured and flexible in

order to manage new service

complexity and the increasedactivation dynamics

More structured Orchestrationcapability for the managementof increasingly complexservices and profiles enabledby the new technology (e.g.synchronized configuration of

new nodes like Policy Manager,HSS, )

Enhancement of SDP capabilityto manage increased servicedynamics and high levels ofinteraction with BSS and theneed for a customer self-provisioning capability to be

supported in real time


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Decentralizing responsibilities to an intelligentaccess layer

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Self-Organizing Network capability is crucial to meet the

economics of massive deployment with realistic time-to-market

The massive deployment of

network elements will outstrip

provisioning and activationcapabilities

Individual cells must be able toautomatically setup and configure

Cells should discover and interactwith neighbors adapting theirconfiguration autonomously

(Automatic Neighbor Relationship(ANR), inter-RAT for 2G, 3G andLTE, Automated PCI (Physical CellIdentity) selection

Provide self-optimization and self-healing capabilities to overcome tonetwork changes

Neighbor A: Power xx Frequency yy

Neighbor B: Power zz Frequency yy

Self-Organizing Capabilities


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Services: Bandwidth-hungryservices on-the-go, challenges and

opportunities.

Agenda


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Voice over LTE, moving towards CS pre-retirement

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LTE architecture does not offer support for Circuit Switched

domain for voice and video calls. Nevertheless Operatorswish to bring voice at LTE launch, to avoid massive OTTadoption

Mechanism to move a subscriber to legacy 2G -3G to obtain circuit switched telephony service,i.e. voice calls, SMS, supplementary services.

Pros Uses 2G/3G, no investments for IMS Re-uses roaming agreements, Good choice for initial stages but not for greenfield

operatorsCons Requires a multistandard device: LTE / 3G / 2G During calls, the UE must stop LTE data connections

to switch to CS domain Operational complexity and configuration (e.g. make

device switch to legacy for incoming calls) Legacy capacity impact, signaling overhead Longer call set-up latency

Official long term solution, supported byvendors, for voice and SMS. Services areprovided in Packet Switched domain.

Pros One packet network for all services IMS single point, with efficiency and less complexity Convergent fixed/mobile services Enhanced voice, video and multimedia services for

new revenues and differentiation from OTTCons IMS deployment costs and time Interoperability of optional features Single number routing and service synchronization

across domains Time to marketRequires OSS/BSS re-integration

CS Fall-Back Voice over IMS


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Video streaming, will it be the killer application for LTE?

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Devices multimedia capabilities are affecting users

behaviors and expectations. Smartphones/ Tablets areeffectively becoming TVs for high-definition (HD) videodriving the growth in demand of mobile video services.

Operators need to be able to manage revenue-

generating premium video services differentlyfrom OTT video services such as YouTube,optimizing the experience of the former andmanaging the cost of delivering the latter.

Traffic redirection to optimal sites Caching and acceleration to speed up delivery of content.

Media optimization, for transcoding sessions to suit the

devices and the network.

Guaranteed service performance to reduce cross-service

churn

Mobile CDNStrategy


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Operators vs. Device Vendors, how to address devicemanagement and make users happy?

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Enhanced remote device management capabilities are

required to guarantee the activation, configuration andmaintenance of the new devices

LTE DEVICES POST-LAUNCH EXPERIENCE

A complete new system, significant impact on e2e

chain (SIM, device, radio, transport, core, IT

systems, process) Inter system mobility complex, requires integrated

network with upgrade of all legacy networks

Significant testing effort, esp. Mobility

- Vodafone LTE Summit 2012

As of April 2012, 347 LTE devices have been

launched, with Smartphones less than 20% of

overall devices - Source: GSA Evolution report

LTE Summit 2012operating systems management

software management

backup and restore

mobile security managementasset management

reporting


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Contacts

To learn more on LTE topics,please visit:www accenture com/LTE

Paolo [email protected]

Emanuele [email protected]

Pietro [email protected]

Mattia [email protected]

Documents

Long Term Evolution Deployment - What Telcos Need to Consider Before Starting Their 100% Data Journey