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Converged Networks - The future of mobile broadband and backhaul infrastructure

Converged Networks - The future of mobile broadband and backhaul infrastructure . Stuart Benington Director, Portfolio Strategy 15 July, 2008. Current revenue cash cows starting to diminish Mobile voice at or near saturation in developed countries

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Converged Networks - The future of mobile broadband and backhaul infrastructure

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  1. Converged Networks - The future of mobile broadband and backhaul infrastructure Stuart Benington Director, Portfolio Strategy 15 July, 2008

  2. Current revenue cash cows starting to diminish Mobile voice at or near saturation in developed countries Voice ARPU dropping as VoIP softclients and other competitors arise Margin pressure on SMS and ringtones as more competition enters the market New mobile broadband services emerging, but are they profitable? Today’s Environment for Mobile Operators 3G/4G infrastructure is a huge bet on service revenue that has not yet arrived Tellabs Internal and Confidential

  3. Consumer Service Trends Driving Evolution • Mobile E-mail • No longer just for business; cheaper email capable smart-phones now available for consumers • Location and Search • Advanced mapping applications tied to location enabled mobile device • Mobile Social Networking • Social community based approach of Web 2.0 will increasingly become part of the mobile landscape • Convergences: • Device convergence • Service convergence (FMC, etc) • Network convergence • Media • Cheaper mobile access and better and cheaper devices may lead to more use of mobile media Tellabs Internal and Confidential

  4. Business Service Trends Driving Mobile Migration(Source: ABI Research) • Enterprise mobile broadband • Driven by business productivity measures • Mobile data applications and services will generate >$100B of WW revenue by 2012 • Mobile data applications such things as group collaboration, enterprise resource planning, customer relationship management • Key factors accelerating adoption of wireless data • Smart-phones and cheap smart-phones • Middleware providers addressing issues such as security (VPNs), switching between different networks (WLAN to cellular), session management, policy control • Pricing for unlimited usage has declined dramatically over the past few years Tellabs Internal and Confidential

  5. RAN Convergence and Migration

  6. Migration from 2G to 4G Varying technology solutions for varying consumer needs Tellabs Internal and Confidential

  7. Requirement for Effective RAN Migration • Dramatic increase in bandwidth • Integration/convergence of multiple technologies • Reliability and Quality of Service Tellabs Internal and Confidential

  8. Capacity Time 1. Next Generation RAN Bandwidth Growth LTE 172,8M HSPA+ 28M HSPA 14,4M HSPA 7,2 M HSPA 3,6M WCDMA 384k Tranport Capacities Needs to be Increased 10G, STM-64, Evolution to 10G+ Tellabs Internal and Confidential

  9. 2. RAN Technology Convergence:MPLS Pseudowires UMTS R99/R4 RNC ATM ATM TDM PWE3 TDM 2G BTS BSC Ethernet Ethernet UMTS R5 LTE Wimax GGSN • Key Benefits: • Mature, established technology • Supports a variety of protocols over existing physical infrastructure • Enforces QoS and SDH-style reliability Tellabs Internal and Confidential

  10. 3. Reliability and QoS: Critical for Mobile Broadband Adoption(Data source: World Bank) • Consumer service demands: • Low latency services – VoIP, mobile gaming • Secure transactions such as mCommerce • Microcredit in emerging economies • Business service demands: • Connection reliability particularly for remote data gathering and customer transactions • Secure connections to ERP systems, remote VPNs Tellabs Internal and Confidential

  11. Architectural Evolution to Next Generation RANs

  12. TDM/ SONET/SDH TDM/SONET/SDH/mWave TDM ATM Ethernet/ DSL/PON/mWave Ethernet FR/HDLC Ethernet Integration/Convergence of Multiple Technologies Cell Site Aggregation Site GFP MLPPP ATM IMA X.86 • There are several variables that come into play with RAN convergence • Different generations of mobile technologies (2G/3G/4G) compound the challenge • Transition to Ethernet manifests itself in multiple areas of the RAN, and likely at different points in time • Technologies such as PWE3 and MPLS enable deterministic convergence of these technologies Remote RNC/BSC TDM Ethernet CSAG PWE3 SATOP CESoPSN IP VPN SGSN Multiservice Edge Router Radio Interface Bearer Technology Backhaul Medium Encapsulation/ Tunneling RNC/BSC SGSN Interface Tellabs Internal and Confidential

  13. HSPA (R6) WiMax HSPA+ LTE GGSN GGSN SAE GW ASN GW SGSN By-pass for user-plane RNC eNode-B Base Station Node-B with RNC functions Node-B RAN Architectural Comparison • IP will be the basis for end-end service delivery, including mobility, session and access management and service delivery • Next generation core and RAN architecture moving to a simplified (less hierarchical) architecture • Expect multiple radio and core generations to co-exist and cooperate to provide seamless services (3G<>Wi-Fi) Network will evolve towards All-IP , “flat” heterogeneous architecture 13 Tellabs Internal and Confidential Tellabs Internal and Confidential March 12, 2014

  14. Long Term Evolution (LTE) of the 3GPP UTRAN IMS 3G HLR Single E-UTRAN Architecture Radio Control Features embedded in NodeB+ IP/MPLS CORE e NodeB Evolved-UTRAN SAE GW aGW Application Domain Maximum 100Mbps Packet Based + CoS aware E-UTRAN End-to-End E-UTRAN QoS Distributed/routed RAN traffic LTE will coexist with current 2G/3G technologies Tellabs Internal and Confidential

  15. Conclusions • RAN backhaul evolution needs to accommodate both today’s services as well as tomorrow’s opportunities • Necessary to cost-effectively increase bandwidth while accommodating a variety of technologies – while retaining network quality and reliability • Technologies such as Pseudowires and MPLS offer a cost effective and future proof way to manage this technology migration Tellabs Internal and Confidential

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