Spectrum Refarming for New Growth

Spectrum Refarming for New Growth

Contents

04 Why Refarming is Essential for MBB

Development 16 New Opportunities Generated for

Carriers by Refarming 19 How Convergent SingleRAN Delivers

Seamless UMTS Coverage 22 Telenor - Accelerating MBB Coverage

with SDR 26 SFR - Successful 900M Refarming 30 Belgacom - A Nationwide

Partnership for an LTE Future

Why Refarming is Essential for MBB Development

04 –– Spectrum Refarming for New Growth

Huawei Technologies

Business and personal lifestyles are evolving faster than ever. Revenue from data services has replaced that of stalled voice income and has in turn become the key driver for service growth. 45

) R U 40 E ( h t 35 n o m 30 r e p r 25 e s u r 20 e p U 15 P R A 10 e l i b o 5 M

China Poland UK USA

2003

2004

2005

2006

• A UMTS network can be constructed in the GSM900 frequency band at a lower cost with better coverage than a UMTS2100 network. • Radio signals are transmitted farther at a lower carrier frequency and allow one site to cover a wider area. This makes the UMTS900 an excellent wide coverage solution. • Mobile network CapEx can be reduced since wider coverage per site means fewer sites, and existing base stations can be repurposed, protecting legacy investment. • Low frequency carrier signals suffer less loss when penetrating building walls, enhancing end user experience.

0 2002

A900MHz Refarming Advantages

2007

Figure 1: Decline in Voice ARPU as Represented by 4 Independent Nations

Interest in the mobile telecommunications revolution continues. Eying the potential of ubiquitous mobile broadband, operators’ attention to the advantages of UMTS data service is on the rise. The demand for UMTS mobile broadband coverage everywhere, from urban to rural areas, advances on a daily basis.

Global Cellular Subscriber Forecast 2008 - 2013

s 6,000 n o i l l i M

900MHz Refarming Challenges • Interference between GSM and UMTS networks must be minimized.

5,000

4,000

UMTS/HSPA GSM 3G CDMA Other

3,000

2,000

• Feeder and Antenna sharing to protect existing investment. • Guarantee of GSM network capacity enhancement and continuous development. • Unied operation and maintenance of the two networks to reduce OpEx.

1,000

0

Dec

Dec

Dec

Dec

Dec

Dec

2008

2009

2010

2011

2012

2013

Source: Informa, July, 2008

Figure 2: UMTS Growth & GSM Decline

Spectrum Refarming for New Growth –– 05

For many years now, industry operators have struggled to address one key challenge - how to expand UMTS operations while maintaining cost-efcient operations. The answer has arrived in the form of refarming (repurposing) available 900 MHz spectrum UMTS. UMTS 900 delivers the new benets of providing operators with excellent opportunities for business development while making the most of pre-existing legacy assets. Refarming for Improved Network Efciency with Lower Costs

allows an operator to employ the same cells to realize better coverage while saving the cost of added base stations. As an essential business growth benet, lower UMTS900 carrier frequency radio signals are less susceptible than UMTS2100 to penetration loss. UMTS900 therefore brings the double advantages of low cost coverage expansion to embrace rural areas while improving indoor coverage critical to urban revenue growth. •

According to the physics of radio wave propagation, the lower the carrier frequency, the further radio signals can travel. In extreme contrast with the complete and contiguous 5MHz channel width requirements of WCDMA, LTE in a refarmed 900 spectrum band can be successfully deployed with channel widths under 1.5MHz. UMTS900

•

• •

Coverage driven roll-out advantage – cells that are nearly three times larger than UMTS2100MHz band Cost-efcient coverage of UMTS900, with 50%-70% fewer sites compared with UMTS in the 2100 MHz band Improved data rates and indoor coverage Reuse of existing GSM900 sites, and infrastructure equates to easy rollout for an existing GSM900 operator

Refarming Yields a Better Network at Lower Cost Cell Coverage: UMTS 900MHz 2.5 -- 3 times larger than UMTS 2.1GHz Site Quantity: UMTS 900MHz 50 -- 70% less than UMTS 2.1GHz Indoor Coverage Quality: UMTS 900MHz 10dB better than UMTS 2.1GHz

WCDMA2100 1Mbps

Cell Coverage Comparison

WCDMA2100 Voice

The Refarming Eco-system is Ready The time for acting on this trend is now. Acknowledging the advantages to be gained from UMTS in 900 MHz bands, more regions including many European countries have already given the green light to deploy UMTS at 900MHz. Not only has the European Commission approved the re-farming of the 900MHz frequency bandwidth for 3G Mobile Broadband use, countries in many other parts of the world have also awarded 900MHz spectrum without specic restrictions. At time of publication, over 14 UMTS900 commercial networks have already been launched successfully, with more than 60 UMTS900 networks planned to come online in 2010. Responding to UMTS900 fastgrowing demand, device vendors are racing to support commercialization. Availability and choice of UMTS900-HSPA user devices is appropriately exceeding market expectations. Excluding notebooks, 208 UMTS900-HSPA devices, supporting both GSM and EDGE were launched in 2009 by 34 suppliers.* Several factors point to the continued rapid expansion of UMTS900 refarming networks globally: an increasingly nimble industry response to mobile broadband demand; ready availability of devices; and endorsements from regulatory bodies. *Source: GSA, HSPA Devices Survey, December 4, 2009.

GSM1800 Voice WCDMA900 1Mbps WCDMA900 Voice GSM900 Voice 0.0

2.0

4.0

6.0 Cell area [km2]

8.0

10.0

12.0

Figure 3: Varying Frequency Comparison of GSM and WCDMA Coverage


14.0

Huawei Technologies

Eco-system Readiness • Three vendors in the industry, including Huawei, have successfully developed commercial UMTS900 networks. • To date, Huawei has constructed nine GSM900/UMTS900 SDR commercial networks.

• Routers, PC cards and built-in modules supporting UMTS900 have also been commercially released. • The EU passed a resolution on July 27, 2009 approving refarming the 900MHz band, and requested that its member countries enforce the bill within six months to drive the development of

the 3G mobile communications industry. 900MHz operators can utilize the frequency for any technology at their own discretion, without license restrictions. • In Europe, the Middle East, Africa and the Asia Pacic region, the UMTS900 is fast becoming a standard terminal frequency.

• According to a global survey from the GSA (Global Mobile Suppliers Association), 34 terminal vendors have released 190 UMTS900-HSPA terminals, including 118 UMTS900-HSPA mobile terminals and 39 USB dongles.


Huawei’s SingleRAN Based Refarming Solution

The Refarming Eco-system is Ready Commercial References & Commitment 14 UMTS900 networks launched 60+ U900 networks committed by 2010

Regulatory Green Light is ON:

Network & Technical Solutions

900MHz was approved by EU Parliaments to deploy UMTS to deploy UMTS in all 27 countries in July, 2009

3 vendors (Huawei, Ericsson, NSN) commercially launched U900 networks 1 vendor (Huawei) has commercially launched 4 G900/U900 SDR networks

13 countries outside of the EU have been granted refarming rights as of Q1 2010.

U900 Terminal 258+ UMTS900 commercial terminals available 49+ suppliers released commercial devices

Figure 4: Refarming Eco-system Components

(CapEx & OpEx)

50-70% Reduction

UMTS900

2100MHz 50-70% site saving with U900 Figure 5: UMTS900 CapEx and OPEX Savings Source: GSA UMTS900 Operator Case Study


•

Affordably Expanding Coverage

To date, the introduction of broadband mobile data services to rural customers has always been inhibited by the expense of extending 3G coverage over large areas. Market share, business growth and revenues have all been equally restricted. Huawei’s pioneering SingleRAN SDR UMTS refarming solution now makes rural MBB an affordable and efcient proposition. "At lower frequencies, radio signals propagate further, meaning that fewer sites are needed for network roll-out. At 900MHz, for example, networks can be built and operated with cost savings of around 50-70% compared with networks deployed in 2100MHz core-band 3G spectrum. These coverage and cost-saving benets mean that operators can bring 3G services to lessdensely populated areas that were previously uneconomical to cover." - Catherine Viola, Senior Analyst at Analysys Mason

Cost of Rural/Suburban Coverage

UMTS2100

This solution introduces critical advances essential to operator success in the rush to compete for Mobile Broadband business. These advances include improved coverage and quality of service, reduced costs, added revenue streams and easy evolution.

900MHz

Huawei Technologies

Huawei’s SingleRAN SDR UMTS900 solution can save as much as 50% in TCO. With Huawei’s SDR solution, operators can migrate

GSM

from GSM to UMTS with nothing more than a simple software upgrade. All RRU and BBU interface boards can subsequently be reused.

G+U

U+L

Figure 6: Huawei’s Solution Permits RRU Evolution with Software Upgrade savings up to 50% in TCO

Huawei’s SingleRAN SDR solution can also support GSM and UMTS 900 simultaneously and operators can incrementally migrate from to UMTS as demand for GSM reduces. With the SingleRAN SDR UMTS900 Refarming Solution, no new sites are dictated, and existing sites can be repurposed with prior

CapEx Saved

Antenna legacy devices additional devices saved devices

SASU

investment in legacy equipment receiving equal protection. GSM900 antenna systems can also be reused for UMTS900. In this manner, Huawei’s SingleRAN SDR UMTS900 fundamentally resolves issues of equipment investment protection while helping operators reduce both CapEX and OpEx.

No TMA No combiner Reuse of legacy A/C (air conditioning) for G/U Reuse of legacy batteries for G/U

GSM A/C UMTS A/C

OpEx Saved G/U SDR

U900

GSM Batteries

UMTS Batteries

50%+ power savings 20%+ transmission savings 50%+ maintenance cost savings

Figure 7: Huawei SingleRAN SDR GU900 Solution

The expanded coverage and cost saving benets of Huawei’s solution can now bring

3G services to less densely populated areas that previously were cost prohibitive to cover.


•

Enabling Added Revenue Streams

As global 3G markets develop, mobile data services will account for an ever larger percentage of applications, offering new revenue streams for operators. Operator success depends on consumer experience and perception. If the mobile broadband network experiences problems with service coverage, interruption or speed, customers will ee, and so with them lucrative advertisers. Poor quality broadband services, as encountered in rural regions and indoor scenarios, can severely limit mobile data application development, translating to delayed or sluggish increases in revenue.

3G Mobile Network Obstacles: • Non-continuous coverage • Insufcient bandwidth for individual users • Poor indoor coverage

For successful broadband network deployment, service continuity and enhanced bandwidth become essential to ensuring positive user experience. Huawei’s UMTS900 refarming solution constructs a common connection coverage for rural areas. Given the same number of sites, UMTS900 can provide a wider coverage than other solutions. The common connection layer allows mobile broadband networks to provide continuous coverage and access services for mobile users. Powerful network performance can increase consumer loyalty and promote operator success. Using 900MHz for UMTS deployments lead to reduced rural deployment costs and improved indoor signals - music to the ears of operators.

•

Reducing Interference while Maintaining GSM and UMTS Performance

To sustain prot margins and maintain optimal levels of TCO, operators must contain costs associated with rollout, operation and maintenance. To avoid damages to perception, loyalty and revenue, operators must also ensure pre-existing legacy businesses remain supported, and then carefully manage the QoS for both GSM and UMTS subscriber bases. • Minimize the impact of UMTS frequency allocation on legacy GSM business • Retain GSM capacity during and after refarming • Balance capacity & quality between GSM and UMTS Huawei’s SingleRAN SDR refarming solution is unique in its proven ability to successfully respond to all of these challenges. Huawei’s solution reduces WCDMA bandwidth from 5.0 MHz to 4.2 MHz leaving 0.8 MHz of valuable spectrum to be devoted to GSM use. Since nearly all signal energy in a modulated WCDMA carrier is within the 4.2 MHz range, standard terminals ably support this reduction. Improved GSM spectrum efciently mitigates the impact of UMTS900 refarming on ongoing GSM operations and maximizes functionality of the carrier’s remaining GSM capacity. With Huawei’s tighter frequency reuse solution, spectrum efciency is ultimately improved, requiring between 25-

GSM Capacity to Bandwidth Table Conguration

Normal (4 x 3 reuse)

TFR (70% load)

Frequency

S1/1/1

2.4

2.4

0%

S2/2/2

4.8

3.6

-25%

S3/3/3

7.2

4.2

-42%

S4/4/4

9.6

5

-48%

S5/5/5

12

5.9

-51%

S6/6/6

14.4

6.7

-53%

S7/7/7

16.8

7.6

-55%

S8/8/8

19.2

8.4

-56%

Figure 8: GSM Capacity to Bandwidth Table


Huawei Technologies

56% less spectrum bandwidth for GSM.

coding and Interference Cancellation (ICC). These functions further boost GSM spectral efciency by ensuring tighter reuse factors in network planning. Huawei maximizes GSM capacity with reduced interference.

Other advances that are unique to the Huawei solution include Interference-based Channel Allocation (IBCA), Adaptive Multi Rate (AMR) speech

Reduced interference: 4.8MHz is improved to support up to S4/4/4

S4/4/5 S2/2/2 Industry Interference

S3/3/3

FRLOAD 50%

DTX

Cancellation Technology

Power control

S4/4/3

FRLOAD 70%

FRLOAD 90%

IBCA UISS (w/o GPS)

Enhanced ICC Enhanced UISS

ICC AMR

IBCA AMR

Figure 9: Maximize GSM Capacity on Given Spectrum

Minimized interference between GSM and UMTS is essential for refarming success. Huawei’s innovative “Buffer Zone” solution eliminates interference on same frequencies,

and helps operators meet customer expectations, maintaining loyalty and base business while allowing for added Mobile Broadband growth.

A

GSM900 sites

area A frequency planning as usual

Buffer Zone

area B 900MHz frequency is different from A and C area

UMTS900 sites

area C UMTS900 frequency may be same as A area frequency

B

C

Figure 10: Huawei Buffer Zone Solution

To prevent disruption in cell coverage, Huawei provides service-based and load-based intersystem handovers. With these advanced handover systems the operator can strike

an optimum balance of the system load between GSM and UMTS networks, improving performance without a trace of inconvenience to the UMTS or GSM subscribers.


Service-Based Handover UMTS

Load-Based Handover UMTS

Voice

Heavy Load

Heavy Load

For GSM/UMTS joint networking, two scenarios can be applied: site sharing and non-site sharing.

Load control by inter-RAT HO

PS service

Huawei’s GSM/UMTS Site Sharing Solutions

Because the coverage radius of a UMTS network is larger than that of a GSM network, in the non-site sharing scenario, the number of UMTS sites can be reduced and equipment investment reduced. With unshared sites network deployment cannot be performed per the original cellular structure. When original GSM site resources cannot be wholly or partially reutilized, the result is an emergence of many new sites, all carrying the avoidable cost burdens of supporting auxiliary equipment and additional labor. When GSM and UMTS networks do not share sites, interference increases. In a site sharing scenario, interference between GSM and UMTS networks is reduced. When antennas are not shared, an adjustment in the downtilt angle and azimuth allows each network to achieve the best coverage performance. By adjusting the transmission power of the UMTS network, GSM and UMTS networks basically enjoy the same coverage.

•

GSM

GSM

Heavy Load

Heavy Load

•

Benefits

Reduce CS blocking rate Increase PS throughput Reduce inter-operation time delay Reduce power consumption Figure 11: Huawei Buffer Zone Solution

•

Supporting Smooth Evolution to LTE

In response to end user demand for expanded services, richer multimedia experiences, easier access and greater personalization, many new exciting applications have been developed. Key applications for the next generation of mobile users include person-to-person communications, content delivery, social networking, business services and mobile commerce. To deliver these applications with the quality of service that customers expect, mobile networks must achieve higher performance. The prerequisites are high-speed, broadband access via mobile devices, delivered anywhere at any time. LTE supports this rst phase of mobile broadband network evolution. “Healthy competition, meanwhile, has meant that operators continue to expand usage allowances and lower prices while pushing network capacity to the limit. 900MHz spectrum is instead to be used for UMTS mobile communication but the move to provide 3G over the 900MHz spectrum is by no means the end game; operators must


begin examining opportunities to deploy 4G services over the digital dividend frequencies when they become available.” - Andrei Tchadliev, Analyst at Pyramid Research In terms of evolution and investment protection, Huawei’s SingleRAN SDR UMTS900 reframing solution has established unique and unparalleled advantages. Based on the earlier SingleRAN SDR solution, networks can support smooth upgrades, allowing next generation network upgrades with no construction cycle. Capitalizing on this solution, an operator can launch new services earlier than competitors operating on multiple platforms. The operator can rapidly capture initial users, becoming the primary, trend-setting operator for any given marketplace. First round pioneers become the pace setters because their choices and evaluations establish standards for later users. Conversely, if network construction cannot quickly respond to changing market demands, a signicant number of opportunities may be lost. With Huawei’s SingleRAN SDR UMTS900 refarming solution, the operator can intelligently manage cost and time to evolve well in advance of any anticipated market demand.

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•

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The Huawei SingleRAN based 900MHz refarming solution meets the site sharing requirements for GSM/UMTS joint networking. GSM and UMTS networks can use the same RF module through software upgrades, dramatically cutting conventional added equipment costs. Adjacent Frequency Guard Band Solution Huawei’s SingleRAN based frequency refarming solution supports two types of frequency allocation: edge-type and sandwich-type allocation.

Huawei Technologies

f1

GSM system

GSM system of other operators

f2

UMTS system

Figure 12: Edge-type GSM/UMTS Frequency Allocation

GSM system

f1

f2

Co-Frequency Buffer Zone Solution

Figure 13: Sandwich-type GSM/UMTS Frequency Allocation

For frequency gap f1, Huawei SingleRANbased 900MHz refarming solutions support a minimum bandwidth of 2.4MHz in urban areas and 2.2MHz in rural areas. For the frequency gap f2, the adjacent frequency is idle and the solutions support a minimum bandwidth of 2.5MHz. If the adjacent

For the frequency gap of f1 and f2, the Huawei SingleRAN based 900MHz refarming solution supports a minimum bandwidth of 2.4MHz in urban areas and 2.2MHz in rural areas.

GSM system

UMTS system

Edge Type: The frequency gap (f1) between the GSM band edge and the center of the UMTS band can be congured based on the gap requirement of the product. For f2, the frequency gap with any other carrier’s band must be no less than 2.6MHz. If less than 2.6MHz, the other carrier’s GSM network, given its unknown RF performance, may interfere with the UMTS network, especially when the system is used on the Broadcast Control Channel (BCCH) or Packet Data Channel (PDCH). With the power control disabled, added interference will be generated on the UMTS band.

within the spectrum of the operators (not necessarily the center of the spectrum). This placement should be determined according to individual operator strategies. For example, a carrier might wish to split some spectrums in the future to obtain 2 UMTS bands, which can reduce subsequent UMTS frequency adjustments.

frequency is occupied by another carrier’s GSM band, the bandwidth spacing must be no less than 2.6MHz. Sandwich-type: Within a given carrier’s frequency band, the UMTS frequency is placed in the middle, with the GSM frequency band on its two sides. The frequency gap between the center of UMTS and the GSM on its two sides is equal and can be congured based on the gap requirement of the product. If f1 and f2 are equal and both are less than 2.6MHz, the frequency bands on two sides of the UMTS can share spectrum resources with the GSM system. Compared with edge-type allocation, this method improves the capacity of GSM. In the sandwich-type allocation, the UMTS carrier spectrums can be placed anywhere

When the UMTS and the GSM networks use the same frequency band, base station or terminal signals for one system fall within the reception area of the other system. This interference cannot be suppressed by the receiving lter. An appropriate frequency buffer zone must be established between the two systems within the same frequency band to accelerate attenuation of the interfering signal and guarantee normal operation of the two systems. For this purpose, Huawei has developed an innovative Co-Frequency Buffer Zone Solution, resolving co-frequency interference between any two systems. The solution has already seen successful commercial application by Optus in Australia. Summary of Huawei’s SingleRAN based 900MHz Refarming Solution: Optimize base station RF lters using an advanced algorithm to provide frequency refarming solutions for small frequency spacing in various scenarios; minimizing the impact of the UMTS900 on existing GSM by making full use of scarce 900MHz frequency resources. Adopt SDR technology to enable GSM and UMTS to output on one power amplier and share antennas, reducing network construction costs.

•

•


Summary of Huawei’s SingleRAN based 900MHz Refarming Solution, continued: Integrates GSM and UMTS networks on the same hardware platform. Co-RRM (Radio Resources Management), CoO&M (Operation & Maintenance), and CoRNP/RNO (Radio Network Planning/Radio Network Optimization) are realized with software, consolidating two independent networks to deliver user enjoyment of high-end 2G and 3G services without any impediments. Flexibly allocates GSM/UMTS Co-RRM radio resources. Channel allocation, power control and handover policy are optimized according to service and capacity requirements of various standards, maximizing the utilization of available radio resources. Enables GSM/UMTS Co-O&M. A unied operation & maintenance interface, conguration control commands, normalized measurement and statistics reports combine to reduce the complexity and cost of maintenance. With the GSM/ UMTS Co-RNP/RNO tool, planning and optimization of the GSM and UMTS networks can be carried out in a unied

•

•

•


way to improve the accuracy of network planning, and boost construction of high-quality networks, while reducing maintenance costs. Leverages Huawei’s independently developed interference pre-elimination and interference reduction technologies for network performance improvement and the sustainable development of the GSM network.

•

Especially helpful in scenarios with high trafc challenged by low network capacity, the tight frequency reuse solution from Huawei, together with the optimized channel allocation policy, can effectively suppress network interference, increase system capacity up to and over 200% with limited frequency resources, and guarantee voice quality across the entire network. Working in harmony, these innovations yield substantial advances in every major category: network performance; network capacity; spectrum utilization; user experience; and revenue generation. The capacity and quality of GSM networks can be improved despite limited spectrum resources.

Huawei Technologies


New Opportunities Generated for Carriers by R efarming Sharifah Amirah

Principal Analyst Telecoms Europe Frost & Sullivan London

A

t lower frequencies radio signals propagate further so that fewer sites are needed for network roll-out. At 900MHz, networks can be built and operated with the cost savings of about 50-70% when compared to networks deployed in the 2.1 GHz core-band third-generation (3G) spectrum. These coverage and costsaving benets allow carriers to bring 3G services to less-densely populated areas that were previously uneconomical to cover. Although refarming is recognized as one of the most signicant regulatory applications, those with 900 MHz of assets consider refarming as a threat to both their competitive advantage and network quality. In time carriers will see the benets far outweigh the challenges.

16 ––

Spectrum Refarming for New Growth

Huawei Technologies

Restraints for the Development of the Refarming Industry This is a complex and difcult task. The occupants of the frequencies to be reassigned will not be pleased by the change for fear of disruptions to their activities. In addition, refarming will make the equipment previously used in those f requencies completely unusable, at least in that country. This implies that they must be compensated on a replacement-cost basis. The funds for compensation must be raised from the beneciaries of refarming, ideally as part of auction proceeds. With mobile broadband already replacing xed-line service, the expanded 3G coverage and eventual price reductions of UMTS-900 pose a real threat to xed-line carriers. In Europe, the refarming of 2G spectrum for 3G services is not currently allowed, although the European Commission has made the relaxation of these rules a key part of its recent telecom reform package. The situation is further complicated as 4G services are best rolled out over two types of spectrum - high bands such as 2.6 GHz for high bandwidth, and low bands such as 900 MHz or 800 MHz for longdistance propagation. Drivers for the Development of the Refarming Industry Customer challenges include GSM coverage reductions when UMTS shares the same antenna, and the increase of Capital Expenditure (CAPEX) and Operating Expense (OPEX) as a result of UMTS introduction. Protecting legacy investment of GSM equipment becomes increasingly important. Refarming presents both technical and nancial opportunities for carriers worldwide. The use of low-frequency spectrum to deliver 3G services will ensure greater coverage and network capacity at the pivotal point of the market. With the number of 3G handset subscriptions set to increase exponentially through 2014, moving 3G service to the 900MHz spectrum will provide a solution to the inevitable growth in data usage and network trafc. Although carriers may feel threatened by the prospect of losing their existing spectrum assets, the opportunity to expand coverage and reduce costs outweighs any hesitation they may have about service deterioration or loss of market share from reduced spectrum holdings. According to Frost & Sullivan’s research, refarming will be a key enabler of rural mobile broadband coverage. Liberalizing the usage of the 850/900MHz frequency bands, in which 2G GSM/CDMA services currently operate, to allow carriers to evolve their networks in these bands to newer technologies such as UMTS/HSPA is a signicant


emerging trend. It will extend the reach of 3G services such as mobile broadband to suburban and rural areas not covered by carriers’ existing 2100MHz 3G networks. 900 MHz carriers can utilize the frequency for any technology, at their own discretion, without license restrictions. Geographic Development of the Refarming Industry The countries in Europe that have cleared 900 MHz refarming are Finland, France, Romania, Estonia, Iceland and Italy. In the Asia Pacic region (APAC) Malaysia, Australia, Indonesia and New Zealand have cleared 900MHz refarming, while Tunisia and Saudi Arabia in the Middle East and Africa have also cleared 900MHz refarming. To date, other countries such as Switzerland, Germany, Sweden and the U.K. have also launched public consultations on refarming the 800 and 900MHz spectrums for 3G services. Apart from refarming, carriers are interested in software-dened radio (SDR) to prolong the life of existing equipment and achieve at least High Speed Packet Access+ (HSPA+) or LTE capacity at low cost. There are performance and efciency trade-offs for implementing the advanced standards in this method. Proles of Major Refarming Vendors Many cellular companies are evaluating LTE migration strategies, but need to keep them exible, in line with uncertain market demands and spectrum availability. This shifts the focus to software-dened architectures that support overlay approaches for existing networks. The world refarming market is anticipated to be stable from now on, with a small group of equipment vendors providing complete refarming solutions. Huawei Technologies Co., Ltd. (Huawei), Ericsson, and Nokia Siemens Networks B.V. (NSN) constitute the rst tier of the


world refarming market measured by total convergence capability. They are likely to enjoy continued potential for increased exposure to market opportunities. In the second tier of the world refarming market, ZTE Corporation (ZTE) and Alcatel-Lucent are competing with other pioneers. Ericsson is also working on adapting its SDR platform to target GSM refarming. The company’s radio product manager has reported that the company has been waiting for standards to be nalized on how the radio technologies should coexist. Huawei, a leading next-generation mobile network solutions provider, launched the 900 MHz refarming solutions based on its SingleRAN, which could let carriers use the GSM frequency to rapidly deploy a lowcost UMTS network with wide coverage. Users receive seamless 2G and 3G services with two networks integrated on the same platform. NSN has completed the successful trial of their Enhanced Data Rate for GSM Evolution (EDGE) Downlink Dual Carrier (DLDC), both of which positively inuence GSM/LTE spectrum refarming, ensuring a better overall usage of resources. ZTE expanded Communication Services, Ltd.’s (CSL's) Next G network capabilities with the roll-out of UMTS in the 900 MHz band, and the building of a 4G LTE network. ZTE supplied the equipment for CSL’s conversion of its mobile network to an all-IP network with base stations supporting SDR technology. This in turn enabled CSL to refarm its 900 MHz spectrum for 3G as well as trial LTE on its own network. Alcatel-Lucent recently released a new software-dened radio module, dubbed MainStay Income Builder C (MCTRX), which will allow wireless carriers to run multiple wireless technologies on the same frequency band, offering faster mobile b roadband technologies such as HSPA and LTE on frequencies.

Huawei Technologies

How Convergent SingleRAN Delivers Seamless UMTS Coverage Romania’s Telecom Market With six mobile operators providing ve GSM networks, four UMTS networks and one EVDO network, Romania is a very competitive market. With market shares of 38.93% and 36.95% respectively, Orange and Vodafone dominate the market. In April 2009, SIM market penetration reached 130%. Figure 14: Market Share of Romania Telecom

As of November 2009, carriers reported a customer base of more than 9.5 million permanent customers; 38.4% of which were post paid customers. Vodafone Romania Romania’s second-largest mobile phone network operator launched in April 1997 with the country’s rst GSM network. In November 2004, Vodafone Romania was awarded a 3G license, subsequently launching a UMTS network in mid-2005. Following form with other markets, since the introduction of smart phones Romania’s mobile subscribers have enjoyed multiple new mobile applications, including social networking, which continue to spur dramatic increases in data usage.

Developed Data Service in Rural Areas In 2008, Vodafone’s 3G network was deployed mainly in urban areas that house approximately 50% of Romania’s population. All ve 3G service providers are active in these cities and competition for business is intense. In the rural areas mobile penetration remained around only 10%, making rural demand on data services more comparable to available network capacity. In July 2009, when UMTS 900 was approved by the European Parliament, COSMOTE, Orange and the other Romanian 3G operators were already prepared to deploy UMTS networks with 900MHz spectrum in rural areas.


Facing erce market competition while in the restraints of a global economic crisis, Vodafone Romania urgently needed a costeffective solution to rapidly respond with mobile broadband services for the country’s rural population.

Adding to the redundancy factor, this older equipment could not satisfy the increasing data service demands of multiple new mobile applications. Vodafone Romania was the ideal candidate for a 2G and 3G convergence future-oriented solution.

Vodafone’s GSM and UMTS networks were previously independent of each other. Many large, energy consuming base stations enabled each of these networks, contributing to considerable operation and maintenance costs. Over the years, equipment rooms had become overcrowded with devices and supporting apparatus, complicating essential network capacity expansion. Due to the high costs of electricity, labor, and equipment room rent, Vodafone’s CapEx was snowballing and OpEx was also on the rise.

Vodafone and Huawei have partnered around the world for many years. Based on the extensive experience of this cooperation and with great condence in Huawei’s innovative refarming solution, Vodafone chose Huawei to modernize its network and develop data services to rural areas throughout Romania.

As much as 60% of Vodafone Romania’s 2G base stations had been in active service for more than six years and were now approaching the end of their life cycle.


With Huawei’s industry leading SingleRAN SDR (Software Dened Radio) solution, one frequency unit can support both 900MHz GSM and UMTS standards. The BSC6900 for GSM and UMTS is the rst commercial dual mode BSC in the world. Quickly deployed, Huawei’s advanced 4.2M spectrum solution brought seamless coverage of data services to Romania’s rural areas, and Vodafone’s

total coverage expanded from 50% to an astounding 95% of the total population. 4.2M Refarming Solution

GSM

UMTS

GSM

Sandwich spectrum allocation with 4.2M solution and 2.2M frequency gap between GSM and UMTS including guard band.

Figure 15: 4.2M Refarming Solution

Traditionally, one UMTS carrier needs 5M bandwidth of spectrum. Since voice represented the primary ongoing service expectation from Vodafone, removing 5M bandwidth to deploy UMTS network would negatively impact the carrier’s core GSM voice service.

Huawei Technologies

To maintain voice service capacity, Huawei took only 4.2M in bandwidth for 900MHz refarming, saving 0.8M bandwidth for continuing GSM. Compared to a traditional 5M solution, Huawei’s 4.2M solution actually created additional GSM carriers for Vodafone Romania. The same GSM conguration was ensured after refarming without any impact to the existing network.

Field Test Verication

Cost-Effective Refarming Solution

Before refarming construction began, Vodafone Global and Vodafone Romania had spent almost eight months testing Huawei’s refarming solutions to maximum limits; both in lab environments and existing network, including GSM KPI comparison, GU and GSM only performance comparison, UMTS900 and UMTS2100 performance comparison.

Huawei’s SingleRAN base station may be small in size but it is acknowledged as being massive in capacity. The SingleRAN base station was at the heart of Vodafone Romania’s modernization of GSM and UMTS – the smaller footprint saved approximately 30% in equipment room rental fees for each site. In addition, because the UMTS900 system has larger cell coverage, the site space was reduced by 50-70% compared with the UMTS2100.

Former Vendor 3.60%

Huawei 97.12% Former Vendor 95.80%

Former Vendor Huawei 0.50% 0.30%

Huawei 0.57%

SDCCH Drop Rate

TCH Call Drop Rate (including Handovers)

Better results for Huawei GSM system compared with Vendor X, running in the current network.

Immediate Assignment Success Rate

Figure 16: GSM KPI Comparison Before and After Modernization 0.40% 0.36%

99.35% 99.36%

0.29% 97.84% 0.21%

GSM only

97.05% 0.08%

GU mode

0.02%

SDCCH Drop Rate

Thanks to the 40% improvement in efciency afforded by Huawei’s power amplier, Vodafone Romania’s power consumption cost also decreased more than 50% for both BTS and air conditioned indoor sites. This added efciency now contributes approximately Euro1.41 million in savings each year.

0.34%

0.28%

SDCCH Congestion Rate (Overflow)

With an average rental fee of Euro 600 annually for each of 300 sites, Vodafone realized an immediate yearly rental cost savings of Euro 0.18 million.

TCH Congestion Rate (Overflow)

TCH Call Drop Rate (including Handover)

TCH Assignment Success Rate

Immediate Assignment Success Rate

Seamless UMTS coverage, greater reach and efciency, plus lowered cost of ownership and operation now allow Vodafone Romania to introduce customers to enhanced 3G applications at competitive rates with no impairment of existing service.

Figure 17: GSM KPI comparison before and after activating GU refarming The combined GSM/UMTS mode was shown to have no adverse impact at all on GSM performance

UMTS2100

Figure 18: Propagation measured on UMTS2100

UMTS900

Figure 19: Propagation measured on UMTS900

Drive test results comparison: UMTS900 was shown to have better propagation than UMTS2100


Telenor - Accelerating MBB Coverage with SDR


Huawei Technologies

"This is the biggest upgrade of the mobile network in Norway. It will create a solid and exible base for further developing the services offered by the Telenor mobile network. “Selection of Huawei was a combination of technical quality, reliability in terms of handling a large-scale equipment replacement operation" -- Ragnar Kårhus, CEO, Telenor Norway.


Old Equipment, Slow Speeds and Slender Revenues

Operator Objectives Cost-effectively replace redundant equipment while allowing for broadband business expansion Contain CapEx and OpEx Enhance competitive position

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Project Highlights Swap all the 2G/3G sites nationwide Roll-out of LTE & HSPA+

Telenor Norway

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Benets to Telenor Apply Telenor Norway’s MBB strategy to roll out nationwide 2G/3G/4G sites Modernize the 2G&3G with optimized TCO MIMO ready enables smooth evolution to HSPA+

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With headquarters in Fornebu near Oslo, Telenor’s original base of operations has expaned from Norway to provide telceommunications services in 14 countries across Europe and Asia. In addition to voice, Telenor provides a wide range of services including broadband and content. As the foremost subnet of Telenor Group, Telenor Norway launched GSM operations in 1994 and UMTS operations in 2004. By Q2 2009, the operator served over 3 million subscribers and secured 54% of the mobile market with ARPU of USD55. With a focus on improving network quality, Telenor Norway accounts for 30% of the group's annual capital expenditure (CapEx). Prior to sourcing from Huawei, Telenor Norway purchased its 2G and 3G network equipment from regional vendors Ericsson, Nokia and Siemens Networks.

Despite booming data services driven by the increasing popularity of 3G internet access cards, Telenor’s data service revenues remained anemic. As older vendors failed to improve operational efciency, outdated network equipment, including near obsolete ten year old GSM gear, impeded the operator’s business development. A new technology roadmap was required for continued success. When archrival TeliaSonara announced plans to deploy an LTE network for commercial use in Norway with projections of higher-quality data services by 2011, Telenor was confronted with the challenge of remaining competitive with an HSPA network operating at a meager 3.6 Mbps. Telenor Norway faced a complex dilemma. Antcipating the Norwegian government’s eventual 2009 issuance of 900MHz licenses, Telenor Group had been researching the use of UMTS technology on networks utilizing this band. All that was neeed was an equipment supplier with proven strong expertise and rich experience in UMTS900 network deployment.

Huawei Technologies

Telenor’s MBB Conundrum Answered by a Cutting-Edge HSPA+ Catalyst New 3G networks support a host of multimedia services such as video calls, mobile internet access and interactive games, all of which carry the allure of new revenue streams. But for operators such as Telenor, with existing voice-based 2G networks and earlier 3G networks, added data and trafc mean the puzzle to be solved is one of bandwidth constraint. With a bandwidth of only 3.6 Mbps, only a small portion of Telenor Norway's existing 2G and 3G network devices was capable of supporting HSDPA capabilities, far behind the requirements for realizing new revenues from MBB. After lengthy testing and rigorous comparison, Telenor Norway decided on Huawei's fourth-generation base stations to construct a viable MBB bearer network. With the advanced 64QAM technology, an HSPA+ network built on Huawei's BTS3900 can provide downlink speeds of up to 21 Mbps, boosting networking speed and quality considerably as a high-speed data platform for MBB services. To further improve the performance of HSPA+ networks, Huawei recently unveiled an HSPA+ version incorporating a range of cutting-edge technologies such as MIMO and Dual Cell. This enhanced version enables Telenor to upgrade its HSPA+ network smoothly to 28 Mbps, 42 Mbps and up to 56 Mbps. Containing Costs through Integrated, High Efciency, Green, Intelligent RAN Until they partnered with Huawei, Telenor Norway’s only option had been to continously add network nodes in an attempt to support demand for data services. This ad hoc approach offset possible gains with increased costs, including added site acquisition and leasing, and installation and maintenance

for 2G and 3G networks. To make matters worse, rapidly rising data throughput brought the burden of increased transmission costs. Like other leading operators around the world, Telenor wanted a green solution that would minimize their carbon footprint while reducing equipment power consumption. Responding to precisely these trends and requirements, Huawei had previously launched a series of fourth-generation BTS3900 base stations. Built on a unied hardware platform, these base stations use SingleRAN (combining site sharing, cabinet sharing and SDR module) for both 2G and 3G networks to fully utilize and save on base station site footprints and equipment room space. The SingleRAN hardware platform features high integration, multiple transceivers, and low power consumption, reducing the size of BTS3900 series equipment by half, power consumption by 70%, and increasing capacity by 300% when compared with traditional equipment. As a result, Huawei’s BTS3900 base stations allowed Telenor to signicantly simplify equipment room acquisition, reducing room rents and costs for equipment transportation, installation and maintenance.

and software management and upgrading. This allows operators to cut network OpEx substantially while also improving network performance. With compelling simplicity, networks that build on Huawei's BTS3900 series can provide high-speed network bandwidth, while simultaneously and signicantly reducing operator TCO. Ensuring Smooth Evolution with Huawei BTS3900 In combination with Huawei’s unied hardware platform and the industry-leading SDR technology, the BTS3900 series supports varied network standards over one platform while ensuring smooth evolution. Huawei’s BTS equipment enables operators like Telenor to evolve easily from GSM to UMTS, HSPA+ or LTE, protecting their investment, faciliating launch of new services, and helping to maintain competitive strengths despite aggressive market activity and global economic challenges.

Huawei's BTS3900 series also provided operators like Telenor with IP backhaul capacity to differentiate telecom and Internet services, allowing Internet services to be transmitted cost-effectively over public networks. In addition to increasing transmission bandwidth and delivering QoS assurance for telecom services, this solution helps slash the unit cost of data transmission. Conventional base stations usually necessitate large amounts of human and material resources for data conguration and maintenance during later operations. Based on an advanced concept of self-adaptive networking, Huawei's BTS3900 series supports smart BTS management in terms of data conguration, adjacency maintenance,


SFR - Successful 900M Refarming There are three major operators in France: France Telecom, SFR and Bouygues Telecom. With more than 34% market share, SFR is the second largest mobile communications operator in the country. As of January 2009, the carrier reported more than 20 million customers of which over 4.7 million were 3G subscribers. Currently, the French group Vivendi and Vodafone respectively hold 56% and 44% ownership of SFR.


On completing full ownership of Neuf Cegetel in 2008, SFR became a signcant European operator, with its own mobile and xed infrastructures, capable of meeting the needs of a customer base ranging from residential and business enterprise to operator re-sale. The launch of the "neufbox" by SFR in early October 2008 is a key example of how SFR’s emphasis on quality has strengthened the group's broadband service offerings.

Huawei Technologies

Wider Coverage / Fewer Sites SFR wanted to expand existing 3G coverage (mostly metropolitan) from 76% to 98% of the total population. Considering the 12.5/10 MHz of continuous spectrum for urban/ rural markets respectively, deploying UMTS in the 900 MHz band for rural areas was much more cost-effective when compared to deployment of UMTS in the legacy 2.1 GHz band. Additionaly, France’s telecom regulator, ARCEP, had already approved applications by SFR (and Orange) to offer 3G services in the 900 MHz band. For SFR, the remaining question was which vendor best enabled refarming. Future Oriented Broadband Long-term practice has proven the strong vitality of an IP network. IP technology is widely applied in a myriad of Internet/ WWW and LAN scenarios, driving down costs of IP network equipment, IP network maintenance, QoS and security, while at the same time stimulating extensive research and subsequently considerable advances in IP technologies. Through IP base station implementation, Huawei has allowed a service bearer network and mobile maintenance network to be merged into one, driving down operator

maintenance costs. With the application of MPLS (Multi-protocol Label Switching) and DiffServ technologies, a Huawei IP network is divided into several private networks of different QoS to meet the requirements of differentiated services. Application of VPN and VLAN technologies ensure a secure network. For SFR, it was the natural continuous self-evolution and smooth capacity expansion capabilities of Huawei’s IP technology that made it easy to expand planning to embrace a mobile bearer network.

Operator Objectives Strengthen control of CapEx & OpEx Improve network efciency and coverage Maintain leadership of Mobile and Fixed Broadband

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Project Highlights Exchange base station to roll-out GSM900/1800M and UMTS2.1G Deploy UMTS900M with the rst 900M Refarming in France Introduce a unique, ETSI compliant, RRU3908 SDR Module

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From the perspective of various networking protocols, IP is the only protocol that can be applied to all transport networks. Following this logic, Huawei believes future transport networks will gradually converge into IP networks. Application of the Industry’s First Converged BSC The rapid development of mobile communications technology has accelerated the upgrade of radio communication products. GSM has developed towards EDGE and EDGE+, while UMTS is evolving towards HSPA, HSPA+, and LTE. SFR was consequently challenged by such issues as increase of operating costs, accelerated upgrade of GSM products, constantly increasing service

Benets to SFR Huawei’s SingleRAN allows for easy and economic deployment, network simplication and optimization as well as overall, immediate and ongoing CapEx & OpEx savings SFR is guaranteed smooth SDR evolution; Huawei’s unied solution, addressing varied technologies (GSM, UMTS, and LTE), provides for at least ten years of network evolution By providing leading edge mobile broadband (HSPA+, 64QAM, MIMO, All-IP RAN), SFR’s time to market can be shortened and their competitive position increased

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requirements and advancing pressure from competitors. Looking to the future, SFR was especially concerned about high integration, ease of maintenance, all-IP, and the dual mode support functionality of conventional base station controllers (BSC). As a result, for SFR and other operators, the BSC6900 represented a key part of Huawei’s SingleRAN solution. Adopting leading multistandard, all-IP and modular design, the BSC6900 features high capacity, integration, enhanced performance, and lowered power consumption. Uniquely Meeting Multi-Standard Radio (MSR) Huawei’s SDR product is the only one currently meeting ETSI standards. Eff ectively reducing investment risks when compared with traditional products and equipment, the ability to design and implement fourth generation radio communication system and equipment with SDR has obvious advantages for operators such as SFR. A base station that works in the GSM network can be upgraded to 3G or 4G mode by simply upgrading software. Smooth migration in a very real way prolongs the life of system equipment, providing a exible and convenient hardware platform for deployment of new services. Huawei’s SDR has the ability to generate more prot for operators than alternative traditional products. Positive Partner Progress Driven by SFR’s plan to extend 3G coverage and offer 3G services in the 900 MHz for rural areas from October 2009 to the beginning of 2010, a series of in-house and eld acceptance tests were successfully conducted with Huawei. At time of publication, SFR’s enhanced network deployment was well underway.


Huawei Technologies Huawei is the only vendor capable of delivering ETSI compliant 2G and 3G RRU products. The SFR case study illustrates that because of this competitive advantage, Hauwei is uniquely positioned to effectively respond to multiple operator challenges related to convergent needs. From operational management and cost controls, to meeting current and future end user expectations, Huawei is poised to set the standard in performance.


“Through the cooperation with Huawei, Belgacom can further propel its exible mobile convergence strategy, and consolidate its leading position in the Belgian telecom market. Huawei has contended with several competitors for this strategic agreement and succeeded in the erce competition.” -- Didier Bellens, President and CEO of Belgacom

About Belgacom Belgacom S.A. is the primary telecommunications company in Belgium and market leader in a number of areas, including retail and wholesale xed-line telephony, mobile communications, broadband data and Internet services.

Belgacom A Nationwide Partnership for an LTE Future 30 –– Spectrum Refarming for New Growth

Belgacom currently has 4.62 million mobile subscribers and controls about 42% of the total mobile market in Belgium. The company has a long history. In 1930, the country’s national telegraph and telephone company (RTT) was founded and in 1992, dissolved and replaced by Belgacom, an autonomous public-sector company. In 1996 the Belgian Government strengthened Belgacom by selling a 50% stake in the company to the ADSB Telecommunications consortium, composed of Ameritech (SBC), Tele Denmark and Singapore Telecom, plus three Belgian nancial institutions: Sona, Dexia and KBC. Belgacom is dedicated to offering intuitive end-to-end solutions, combining xed and mobile telecom, IT and media, and empowering its customers to master and enrich their professional and private lives.

Huawei Technologies

Green Construction / Easy Maintenance Belgacom is very aware of its social responsibility and constantly looks for new ways to save energy and reduce emissions; contributing to improved harmony between technology and the environment. In keeping with this initiative, Belgacom has established exacting standards for auxiliary facilities, network building, environmental protection and use of resources. The fourth-generation base stations of Huawei provided a perfect match with Belgacom’s wish for green, convergence, broadband and evolution.

operators therefore face the question of how to improve the capacity and quality of their GSM networks with what will be more limited spectrum resources after refarming. Answering the question, Huawei has independently developed a series of technologies addressing interference presuppression and impact reduction; effectively improving network performance, increasing network capacity, enhancing spectrum utilization and user experience, allowing for continued increase of operating revenues.

Brussels is not only the capital of Belgium, but also the capital of Europe and headquarters for multiple related international organizations including the European Union and NATO. The capital is consequently home to an exceptional number of high-end subscribers who depend on a reliable mobile network with outstanding performance to consistently complete critical tasks.

Addressing limited frequency resources with a premise of ensuring the voice quality of an entire network, Huawei’s refarming solution includes an optimized channel allocation policy to effectively reduce and suppress network interference while increasing system capacity by over 200%. Especially relevant in scenarios with low network capacity, high trafc and insignicant improvement of frequency hopping, Huawei’s refarming solution is capable of generating extensive benets.

Continuously improved network performance and enriched user experiences are goals shared by both Belgacom and Huawei. With Huawei’s SingleRAN solution, Belgacom found a way to realize their goal of convergence while simplifying the network, thereby improving performance and reliability to meet current and future end-user expectations.

The refarming solution’s optimized channel allocation policy also enhances network quality and capacity from added points of view including voice/signaling antiinterference, interference pre-suppression, and interference impact elimination. This policy refers to when Broadcast Control Channel (BCCH) takes precedence over others during channel allocation.

8,800+ 2G/3G sites were required to cover all of Belgium: Replacing 4,200+ 2G BTSs, and 2,800+ 3G NodeBs with approximately 300 new 2G BTSs and 1500 3G NodeBs Unique ETSI compliant SDR product: G&U@900 Mhz 3,000+ LTE sites planned for future roll-out

Based on a concept of “customer-oriented Innovation,” Huawei’s innovative SingleRAN solution features a unied fourth-generation Base Station (BTS), a multi-mode Base Station Controller (BSC), and features such as CoOperation and Maintenance (O&M) and CoRadio Network Planning (RNP)/Radio Network Optimization (RNO), which facilitate an end to end easy solution for the operators’ network installation, planning and maintenance.

An LTE-oriented Future

Benets to Belgacom

Enhance Utilization of Frequency Resources UMTS900M refarming applies to limited GSM frequencies. Belgacom and other

Operator Objectives Resolve end of life-cycle network Reduce and contain high OpEx and power consumption Future-proof equipment Respond to escalating demand for data services

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Project Highlights

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TCO Savings - Power consumption savings of 60% - Transmission savings with Hybrid IPRAN capability - OpEx savings from Co-O&M, CoTransmission and Co-RNP/RNO Smooth Evolution to Future Technologies - Hardware ready and smooth evolution to HSPA+ and LTE - Sustained leadership with cutting edge mobile broadband - HSPA+ 64QAM/MIMO, All-IP RAN

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Since Huawei’s fourth-generation base stations enable smooth evolution and can be software upgraded from GSM/UMTS networks to LTE, it was comparatively easy for Belgacom to plan deployment of an LTE-based network for the near future. Throughout their partnership, Huawei and Belgacom have focused on a joint network building strategy with approximately 3000 LTE base stations planned for the nation. The companies’ combined efforts have injected new energy into the future development and evolution of Belgium’s broadband future.

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Spectrum Refarming for New Growth

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