© 2011, KT, All rights reserved

Joint GSMA-NGMN conference Jo t GS G co e e ce

M bil N t k E l tiMobile Network Evolutionin Data Explosion Era

Yung-Ha Ji, VP

Mobile Network BU, KTMobile Network BU, KT

2011. 02. 17

Contents

MarketTrend How does KT estimate Data Explosion ?

11

KT’s Network Strategy - 3W+LTE for Data Capacity

KT’ N t k D i St tNetworkSt t

22

KT’s Network Design Strategy

KT’s Wi-Fi Off-loading

Strategy

KT’s CCC and Virtualized-CCC LTE

Effect of CCC

NetworkEvolution

33

KT’s Service Continuity based on IMSNetworkI t ti

44

KT’s Wired and Wireless Network ConvergenceIntegration

© 2011, KT, All rights reserved 3

How does KT estimate Data Explosion ?

From 2009 to the end of 2010, 20 times more traffic is generated in KT WCDMA system after introduction of smart phones such as iPhone

We expect to be 80 times at the end of this year and 200 times in 2015

KT h Wi Fi ffl di t t d 3W+LTE t k t t S if t th t t l d tKT has Wi-Fi offloading strategy and 3W+LTE network strategy. So, if we count the total data traffic, the number goes up to 1,000 times in year 2015

After the introduction of smart phones, a full-scale smart phone era has arrived and the data explosion will be accelerated.

x 200KT’s WCDMA Data Traffic SharingTraffic Forecast

21%WCDMA

LTE 12%

x 80

16M

12%WiMAX

x 20

16Msubscriber

CSx 1 5 x 2

55%Wi-Fi

© 2011, KT, All rights reserved 4

Jan 2009 2010 2011 2015

PS x 1.5 x 2

KT’s Network Strategy - 3W+LTE for Data Capacity

KT is transforming WCDMA network to CCC for Seoul and its vicinity - maximizing the number of cells in the unit area to maximize the capacity

KT has transformed WiMAX network last year (8.75MHz -> 10MHz BW) and has nationwide coverage now It will support MBB market’s BM and Wi Fi off loading as Mobile Routercoverage now. It will support MBB market s BM and Wi-Fi off-loading as Mobile Router

KT is planning to build-up 100,000 Wi-Fi zones this year and it will support maximizing Wi-Fi Off-loading in data traffic concentrated area.

In 3Q 2011, we expect that virtualized-CCC LTE network will be launched in major cities to increaseIn 3Q 2011, we expect that virtualized CCC LTE network will be launched in major cities to increase the data capacity.

• In-building• Street Zone

Hot spot Major cities

• Urban area• Virtualized CCC

LTEWi-Fi

Mobile Hot spotNationwide

CCC hit tWiMAX WCDMA

WCDMA(CCC)

• Major cities/Highway• CCC architecture

Mobile Hot spot • CCC architecture• HSPA+(64QAM)

WiMAX WCDMA

• Everywhere

© 2011, KT, All rights reserved 5

KT’s Network Design Strategy For Data Capacity

More than 67% of data traffic is from indoor More than 30% of data traffic in Seoul comes from 4 hotspots

1. put in-building RU into skyscrapers

2 lit d b t f t f b /b ildi

More than 67% of data traffic is from indoor. More than 30% of data traffic in Seoul comes from 4 hotspotsKangnam Hotspot: Skyscrapers are all lined up, and data explosion occurs at quitting time

2. split road coverage by sector as for entrance of subway/buildings

3. cover Wi-Fi street zone, in-building Wi-Fi zone for off-loading

4. change all existing repeater to RU and lower the base station site to make it small cellmake it small cell

ll llcapacity small cellcapacity

CCC N/Wexisting N/Wg

rural sub urban metro

© 2011, KT, All rights reserved 6

u aurban politan

KT’s Wi-Fi Off-loading

KT developed next generation AP which covered Wi-Fi street zone and in-building Wi-Fi zone- 120 users, higher TP, larger coverage, lower price than conventional Wi-Fi

1) In-building Wi-Fi off-loading (stealth Wi-Fi): larger coverage, easy to O&M using 3G infra

2) Wi-Fi Street Zone off-loading (next generation AP): seamless H/O between APs

3) Mobile Wi-Fi off-loading (Public-Egg): subways, buses using WiMAX as a backhaul

iPhone’s Wi-Fi data trafficGB/B h

Wi-Fi Street ZoneEffect of Wi-Fi Off-loading

3G Data Traffic

12FA

GB/Busy-hour

AC

4FA/3sec(3.2GB)

AC

© 2011, KT, All rights reserved 7

Oct 2010 in COEX building

KT’s CCC and Virtualized-CCC LTE

CCC(Cloud Communication Center) concept : Separation of DU-RU, Concentration of DU, and Virtualization of CCC

Virtualized CCC can share the signaling data and channel information using open H/W platform with SDR technology on IA based general purpose H/W

CCC

gy g p p

Intel-Samsung-KT cooperation is developing virtualized-CCC LTE which is demonstrated in MWC Samsung booth and KT is trying to establish a trial network in the second half of this year

CCC Architecture

CCC (DU) RUCore Network

networks and IP-backbone

LTE(virtualized)

WCDMA WiMAX

LTEWiMAX

Core Network

IP network

WCDMA

Cooperation with global vendors and operators

© 2011, KT, All rights reserved 8

Effect of CCC

U d DE i t th bi t f bil t i t i i i l t kUnder DE environment, the biggest concern of mobile operator is to maximize wireless network capacity while minimizing TCO

CCC enables operators to reduce CAPEX, OPEX, Cost per Mbps and CO2 emission- cost saving such as rent and electricity, being scalable and flexible by compact-sized RU

100  100 77

38 

Legacy NW CCC NWCAPEX

CostLegacy NW CCC NW

Cost/ Mbps: 23% ▼

Cost

100  57 4517  3558 OPEX

Legacy NW CCC NW Legacy NW CCC NW

CO2 emission

© 2011, KT, All rights reserved ※ TCO Analysis based on KT’s CCC Trial(2009~2010) 9

KT’s Service Continuity based on IMS

KT already has established VCC(Voice Call Continuity) from Wi-Fi to WCDMA using FMC(Fixed Mobile Convergence) phone

We are developing a feature to secure the continuity of multimedia services, supporting mobility among 3W and LTEg

As one of the solutions of Data Offloading, this project is being performed meaningfully- IMS drive and select efficient access network- A call session will be moved to any types of radio access network

PDGWi-Fi IMS

P-GWLTE

WiMAXANDSFACR ICS-ASHSS

CSCFRemote-End

(e)MSC

GGSN

CSPS

InternetWCDMA

※ IMS: IP Multimedia Subsystem, PDG: Packet Data Gateway, P-GW: PDN Gateway, ACR: Access Control Router, CSCF: Call Session Control Function, HSS: Home Subscriber Server,

(e)MSCCS

© 2011, KT, All rights reserved 10

C ccess Co t o oute , CSC Ca Sess o Co t o u ct o , SS o e Subsc be Se e ,ICS-AS: IMS Centralized Service –Application Server, ANDSF: Access Network Discovery and Selection Function

KT’s Wired and Wireless Network Convergence

’ fKT’s network consists of 5 subsystems- Access Network, Backhaul, Control Network, Service Network and OSS Network- Control Network include Switch, IMS, Profile, Authentication, Accounting, QoS and SDP

KT’s network is evolving into the integrated wired and wireless network which is suitable to g gaccommodate N-Screen service and cloud service.

- providing All IP based network, multiple services with different QoS requirements

KT is on a convergence process to cost-efficient and simple platform

Convergence

SService

Auth./Accprofile

QooK TVCP Portal

profile

CP Portal Converged Service

SDPAuth./Accprofile

Auth./Acc

Control

Core

3G IMS

Soft SW Core

BcN IMS IMS

Core Core

ut / ccprofile

QoSSoft SW

OSS

Back-haul IP IP premium KORNET

Q

converged IP backbone

© 2011, KT, All rights reserved 11

Access WCDMA WiMAX internet WCDMA WiMAX Wi-Fi SoIP IPTVLTEWi-Fi SoIP IPTV internet

Thank You!

yungha@kt.com

Appendix: CCC concept – Analysis of BS architecture evolution

Traditional BS Separated BS Soft BS Virtualized BS

RF unit RF unit RF unit

L1 (PHY)RF unit

L1 (PHY)

RF unitL1 (PHY)RF unit

L1 (PHY)RF unit

…CPRI IP IPL1 (PHY)

L2 (MAC)L3 (RLC)

L1 (PHY)L2 (MAC)L3 (RLC)

L2 (MAC)L3 (RLC)

Open H/W Virtual MachineASIC

L2 (MAC)L3 (RLC)

FPGA

CPRI IP IP

Average Variable Cost of NW operation

Comparative analysis as the mobile operator’s point of view

Value of Marginal Productivity per unit Base Station

g p

High

Low

Low

Medium

Low

Medium

Very Low

High

Flexibility of Deployment and Radio Resource Management

Scalability of Access Network

Low Low Medium

g

High

© 2011, KT, All rights reserved 13

y p y g

Low Medium High High

© 2011, KT, All rights reserved