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IP Core Networks for cdma2000 Radio Access

IP Core Networks for cdma2000 Radio Access. David Boettger CDMA Solutions Marketing Hong Kong. 3G Conventional Wisdom. 3G discussions often revolve around Radio access (especially speed) Wireless Internet services Limited discussion about 3G costs.

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IP Core Networks for cdma2000 Radio Access

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  1. IP Core Networks for cdma2000 Radio Access David BoettgerCDMA Solutions MarketingHong Kong

  2. 3G Conventional Wisdom • 3G discussions often revolve around • Radio access (especially speed) • Wireless Internet services • Limited discussion about 3G costs

  3. …But Immediate Operator Concerns Surround Costs and Margins • Falling per-minute prices due to competition • Rising operational costs with subscriber growth • Requirement for low-cost network evolution in support of • Increasing amounts of voice traffic • New data services

  4. cdma2000 Cost Proposition • Well cost-reduced terminals (4+ years) • Mature & cost-reduced radio access network • 1X/3X scalability • IP-enabled core network (CN)

  5. Why IP for cdma2000 CN? (1) • IP component hardware costs • Unit costs much lower than existing CN nodes • Shipment volumes dramatically higher than existing CN nodes (“economies of scale”) • IP components often more scaleable • Less “lumpiness” in CN CAPEX • Time to market • IP component feature inheritance from other IP product development efforts • Open interfaces based on Internet standards broaden supplier base

  6. Why IP for cdma2000 CN? (2) • Future resistance • Computer-like performance curve of IP nodes • IP is the protocol of choice for all new interfaces, services, and applications • Tendency toward IP for all networks • Wireline, enterprise, etc.

  7. Building the All-IP cdma2000 CNThe Managed IP Core • Policy Management • Bandwidth Control • Route Optimization • Privacy • Quality of Service Managed Core Packet Network Routers, IP Switches, Policy Servers, Firewalls, etc.

  8. Building the All-IP cdma2000 CNDelivery of Voice and Wireless Internet PSTN Trunks Wireless Operator Managed Packet Network IP cdma2000 RAN IP PDSN ISP/Corp Packet Packet Data Serving Node • Gateway between wireless network and ISPs & corporate intranets

  9. Building the All-IP cdma2000 CNTandem Traffic Migrated to Managed Packet Core PSTN Trunks IP IP IP Wireless Operator Managed Packet Network IP cdma2000 RAN IP PDSN Packet Voice Gateway (PVG) • Converts voice trunks to packets • Reduces network bandwidth requirements • Target: Lower tandem trunking costs by 2/3 ISP/Corp

  10. PVG Tandeming Costs and Savings $1,800,000 $1,600,000 Yearly Savings and Costs of Packet Backbone* $1,400,000 $1,200,000 $1,000,000 $800,000 Transport Savings with PVG $600,000 Additional Network Costs with PVG $400,000 $200,000 $- 2000 2001 2002 2003 2004 $250,000 Cost Breakdown of Implementing Packet Voice Gateway* $200,000 $150,000 PVG Equipment Maintenance $100,000 PVG Installation & Commissioning $50,000 $- 2000 2001 2002 2003 2004 *Based on a network with 500,000 subscribers growing to 1 million in 2004.

  11. SG Building the All-IP cdma2000 CNFull IP Evolution PSTN Elimination of circuit paradigm • Off-the-shelf IP/ATM switches, routers, and gateways • Call and mobility services on industry standard computers Call Server Wireless Operator Managed Packet Network cdma2000 RAN IP PDSN/GGSN ISP/Corp SS7 Network

  12. All-IP CN Case StudyNortel Networks Commercial cdmaOne Systems • Compare All-IP CN vs. “legacy” CN costs in real, commercial cdmaOne deployments • Cluster of markets (300k growing to 1.6M subs) • Smaller single market (50k growing to 285k subs) • Answer strategic questions • Is IP more cost effective than current CN? • Sensitivities to • Voice/data traffic mix? • Market size? • Scalability of IP CN? • Optimal transition strategy?

  13. Scenario 1 – Low PSD Usage 21.6M -23% 6.7M -92% All IP CN H/W Current H/W Results – Initial Network Buildout Costs300k Subscribers in 2000 • 69% All-IP CN savings over current system (63% ex. real estate) • Given that data traffic is relatively insignificant at launch, All-IP CN clearly attractive for voice traffic • Reason: Dramatically lower-cost hardware components for All-IP CN • Switching/HLR functions 92% cheaper in All-IP CN due to concentration & hardware costs

  14. Results – Cost of Ownership1.6M Subscribers in 2008 Scenario 2 – High PSD Usage Scenario 1 – Low PSD Usage 105.1M 91.8M 62.5M 51.6M Current H/W All IP CN H/W Current H/W All IP CN H/W • All-IP CN achieves 44% savings ($40M in PV) over current network in Scenario 1, 41% ($43M in PV) in Scenario 2 • Savings dominated by voice traffic impact • Significant data traffic in Scenario 2 did not change fundamental rates of savings • Reasons for savings: lower hardware costs for All-IP CN and lower transport costs due to packetized voice traffic

  15. All-IP CN Cost Savings Analysis • All-IP CN provides significant savings in initial network build and total cost of ownership • Savings realized through reduced transport OPEX and hardware CAPEX • Voice traffic primary means of savings • cdmaOne/cdma2000 variable-rate codec • Savings scale with market size

  16. Summary and Conclusions • IP-based cdma2000 CN allows dramatic savings in cost-of-ownership • cdma2000 provides the most cost-reduced and mature 3G RAN • When combined with the most cost-reduced handsets… cdma2000 is the lowest-cost path to 3G services

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