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Nasdaq: MSPD 1
LTE Deployment Challenges and Opportunities
Mindspeed Technologies Mobile World Congress Feb 27 - March 1, 2012
Nasdaq: MSPD
Agenda
Wireless Broadband Market Update
LTE Deployment Scenarios
Challenges and Opportunities for LTE
Opportunities for Mindspeed
2
Nasdaq: MSPD
Mobile traffic skyrocketing
Mobile internet in 2010 is bigger than whole internet in 2000
AT&T 2Q06-2Q09 5000% growth
Ericsson 2Q09-2Q10 3X
Cisco MVNI 108% CAGR
100% CAGR = 1000X growth in ten years
Nasdaq: MSPD
Devices Have Forever Changed
mainframe
mini
micro
laptop
netbook
tablet
GSM 3G
Smartphone
analog
5MB/month
5GB/month
5KB/month
Nasdaq: MSPD
Throughput Density: A Problem To Resolve
5
2G networks for voice are rarely overloaded, mainly a coverage game
A Macrocell can deliver the service to hundreds of users with expected quality of services
3G applications start to show the impact of highly capable UE taking away available throughput, e.g., iPhone, iPad
China Mobile doubled their 2G/2.75G BTS in two years to support data on EDGE
ATT ended their unlimited data plan for the iPad less than 1 month into the launch of the first iPad
UE capability is exponentially increasing
A future LTE UE can perfectly take the
entire throughput capacity of a cell-site
4G networks will have to address the throughput density issue
A Macrocell capacity of 150Mb/s can not
satisfy the need of hundreds of users Delivering throughput to users is the mission of LTE
Two key ingredients: coverage and throughput density
13
128 384
2000
20000
1
10
100
1000
10000
100000
2G GSM
2.5G GPRS
2.75G EDGE
W-CDMA LTE
Kb
/s
Mobile Device Throughput Capability
Nasdaq: MSPD
Wireless Broadband Usage Survey
6
Industry consensus is that indoor coverage will be a
crucial issue for wireless broadband
Nasdaq: MSPD
DAS: Current Solution For Indoor Coverage
Distributed Antenna Systems (DAS):
Take a Macrocell baseband module (BBU)
Use remote radio-head (RRH) at each floor
Distribute analog antenna signal from the RRH to multiple low power radio-heads
7
Pros: Simple, effective to improve coverage Coexist well with Macrocell No hand-over issue from a radio-head to another
Cons: No throughput capacity improvement Radio-head malfunction not easily detectable Deployment requires power adjustment at each
radio-head, only viable for public buildings or enterprises
Very expensive
China
Unicom
China
Mobile
China
Telecom
Nasdaq: MSPD
Comparison of Indoor Coverage Solutions
8
Key User Experience Metrics
DAS WiFi Smallcell
Coverage Yes Yes Yes
Throughput improvement No Yes Yes
Mobility Yes No Yes
QoS/QoE Yes No Yes
Key Operator Concerns
DAS WiFi Smallcell
Deployment cost High Low Mid
Operating cost High Low Low
Capacity enhancement Difficult Easy Easy
Future evolution Difficult None Good
Control Yes No Yes
Coexistence with Macro Yes Yes Challenging
Nasdaq: MSPD
Typical LTE Deployment Scenarios
9
Phase-1: Macrocell based network build-outs (2010-2013)
Reuse current cell-sites and infrastructure like fiber networks
Phase-2a: Microcell/Pico to fill-in the coverage blind spots (2012-2014)
New cell-sites and subsequent infrastructure are main concerns
Phase-2b: Enterprise Pico/Femto to provide in-door coverage (2012-2015)
Interface with Enterprise Intranet yet under operator’s control is a major unresolved issue
Deployment scenarios and cost are also major issues
Phase-3: Femto to address coverage at home (2012-2016)
A major problem is backhaul
Operators with high speed wireline will have a huge advantage
Mindspeed Transcede solutions target Phase-2/3 deployments
Nasdaq: MSPD
3x40MHz LTE-A Macro
3x(2x2 20MHz LTE or 4x5MHz TD-S/UMTS) Macro
20MHz LTE Backhaul + 20MHz LTE Access (Relay)
2x20MHz LTE (LTE-A, high-end Pico)
4x5MHz TD-S/UMTS (Rel’10, high-end Pico)
20MHz LTE + 2x5MHz TD-S/UMTS dual-mode
20 MHz High-end Micro (4T4R)
20MHz LTE + 5MHz TD-S/UMTS High-end dual-mode Pico
20MHz LTE out-door Micro/Pico (PoE)
2x5MHz TD-S/UMTS Pico (PoE)
10-15MHz LTE + 5MHz TD-S/UMTS low-end Pico (PoE)
20MHz LTE Enterprise Pico (PoE)
10-20MHz LTE low-end in-door Pico (PoE)
5MHz TD-S/UMTS (Home Femto or Pico) (PoE)
Fulfillment to Market Requirements
T2200
Nasdaq: MSPD
Challenges and Opportunities
11
Wireless broadband is taking off
Demand for throughput density, as well the need for indoor coverage, will force the use of small cell solutions
Off-loading traffic from macro cell as much as possible
Co-existence of LTE with 2G/3G requires SW upgradable dual-mode eNBs
Small cells require low power and low cost
Single chip SoC is the only viable solution
In-door coverage requires low cost, easily deployable solutions yet manageable by operators
Operators claim that they spend 3.5-4h technician’s time at $50/h rate for each customer home gateway installation
Not only cost CAPEX, but also limit the rate of large scale deployment
PoE is a key for Enterprise (no power line means no need for licensed technicians for installation)