Technology to Drive Disruption, Monetization Mired in Uncertainty

Manish Singh, CTO

LTE World Summit, May 2012

Embedded Wireless

Infrastructure Solutions

Introduction to Radisys

Professional Services

Application Integration

Media Servers

VoLTE MRF

Protocol Software

LTE & 3G Small Cells

T-Series Platforms

ATCA, COM Express

Solutions to expand and

optimize network capacity

Technology to Drive Wireless Disruption, Service Monetization Mired in Uncertainty

Global survey of mobile operators

to get decision-maker insights

Devices continue to drive change

among subscribers & operators

VoLTE is seen as necessary but

not a top priority

Small Cells and Wi-Fi offload

provide a capacity boost

LTE Advanced will bring improved

spectrum efficiency & lower costs

FDD & TDD will both succeed, but

not yet clear how they will coexist

Radisys sponsored this survey,

conducted by Senza Fili

Data Remains the Growth Engine

Capacity Mind The Gap

Text

Traffic Doubling every 12 months

Video = Operators’ Albatross

Must Increase ARPU

Must Lower Cost per Bit

Source: Cisco VNI Source: Heavy Reading

Revenues

Traffic

Revenues &

Traffic Gap

Widening

Revenue vs. Traffic Growth

Voice Era

Data Era

Devices Drive New Usage Models

“New form factors will emerge, but change will continue to be driven by smartphones and tablets,

entering new segments and expanding their functionality.” – European survey participant

Devices will continue changing

the usage model

Smartphone adoption spreading

to feature phone users

Tablets may create a second

wave of traffic increase

Increase adoption of data-centric

devices drives innovation among

operators

Cloud applications will have an

impact on design of devices

50B Supported Devices by 2020

Traditional

Device

Demand

Nearly

Insatiable

Many New

Categories of

Connected

Devices by

2020

Smart Phones Tablets Notebooks

IP Cameras Gaming

Devices

eBooks Connected

Cars

Personal

Medical Devices

Small Cell and Wi-Fi Offload: the Quest for Capacity Density

“Today it is Wi-Fi offload, but in the long-term small cells will become more important to increase

capacity.” – North American survey participant

3G / LTE Small Cells

3G Femtotality

LTE TOTALeNodeB

Multi-mode.. 3G + LTE + Wi-Fi

60+ LTE / 3G Small Cell Licenses

Coverage

Cap

acit

y

Macro

Micro

Pico

Metro

Femto

Our Focus: Small Cells

Interference Control: Fractional Frequency Reuse

macro

femtos

Full BandFull Band

Band A Band B

macro

femtos

Band C Band D

macro

femtos

Full Band

Band A Band B Band C Band D

macro

femtos

Full Band

Band A Band B Band C Band D

Allocate

orthogonal pieces

of the spectrum to

neighbours

- In a “Sum of Tx

power” problem,

the 4th option

outperforms 1st

option by 14 dB

Interference Control: Soft Frequency Reuse

freq

Soft frequency reuse

(SFR) improves the

throughput for UEs close

to the cell boarder

• Protecting UEs close to

cell boarder employing

frequency reuse

• N = ~1

SEG – Wi-Fi & LTE Security

Macro Backhaul Security Small Cells Backhaul Security

Secure Wi-Fi Offloading

MME

eNodeB

S1u X2

S11

SGW

4G

MME

Femto

Metro

IPsec Tunnel

SGW Untrusted IP

Network

PGW

AAA

Wm

Gn’

Wu

Wi-Fi

AP ePDG

Untrusted IP

Network

SEG + TTG + ePDG

IPsec Tunnel

IPsec Tunnel

LTE’s Future: LTE-A, TDD-FDD Networks

“LTE-A will be a gradual & incremental upgrade, with carrier aggregation as its main component. Without it, most

operators without 20MHz channels cannot fully benefit from the new technology.” – North American participant

“Traffic loads are growing so fast that FDD LTE will not be sufficient alone. We will need TD-LTE as well.”

– APAC survey participant

Wired Backhaul

LTE-Advanced (LTE-A) ITU-T’s True 4G… Marketing’s 5G…

3GPP R10

Carrier Aggregation • Aggregate multiple contiguous & non-contiguous carriers up to 100MHz

• Peak data rates 1Gbps

LTE Relay Node (RN)

• Over-the-air (OTA) backhaul

• Coverage

• Cell-edge throughput

3G

5 MHz

LTE

20 MHz

LTE-A

20 MHz

LTE-A

20 MHz …

Macro

‘Donor eNB’ Relay (RN)

SON Essential for HetNets

Centralised • SON solutions where SON algorithms are executed in a centralized entity – say, OAM

• In such solutions SON functionality resides in a small number of locations

• More control for operator (less scalable)

Distributed • SON solutions where SON algorithms are executed at network element (eNB / HeNB)

• In such solutions SON functionality resides in many locations

• Less control for operator (most scalable)

Hybrid • SON solutions where some of the SON algorithms are executed in the OAM system

while others are executed at the network element level

• Best option, most suited for adhoc networks (for femto / small cells)

• Operator can “move” to Distributed option as and when they have more confidence on

multi-vendor SON algorithms

VoLTE: Eventually Needed

“Circuit-switched voice is not going to disappear over the next five years. But we do need VoLTE to

gradually reduce our dependency from legacy 3G and 2G networks.” – APAC survey participant

Voice is still an essential

component and necessary to

LTE’s success

VoLTE needed to decrease

dependency on legacy

networks

Concurrent voice and data

connectivity is a driver to

deploy VoLTE soon

Revenues are largely

unaffected by introduction of

VoLTE

MPX-12000 – VoLTE MRF Video & Voice over LTE

VoLTE Media Resource Function

• High Definition Voice, including AMR-WB

• VQE – critical media conditioning in noisy

wireless environment

Conversational Video

• Video calling – HD video 720p, H.264

• Video conferencing

• Video Transcoding

Audio/Video VAS

• Conferencing, Ringback, Multimedia mail…

Open 40G ATCA Platform

"Mavenir has already integrated the Radisys CMS-9000 media server with our mOne Convergence

Platform for one of our LTE operator deployments…. Products like the MPX-12000 – with a design

objective to increase MRF media processing capacities for mobile video services – offers an enticing

MRF product evolution for LTE operators"

– Terry McCabe, CTO, Mavenir Systems

A Conspicuous Absence: Service Creation and Monetization

Drivers related to new

services & monetization

did not make it the top six

drivers: Why?

Path to revenues not as

clear as the technology

and device path

Many opportunities,

unclear strategy

“We cannot afford to manage traffic growth without a corresponding increase in revenues. We have

ways to increase capacity, but we cannot necessarily afford it.” – European operator

Source: The observer effect, theobservereffect.wordpress.com

“Counting packets is not the way to make money.” – North American operator

Device Silos

• iPhone: Facetime-to-Facetime

ONLY

• Skype breaking silos

Wi-Fi Access

• Limited Mobility, hotspot bound

Internet Core

• Best effort, no QoS

Breaking Silos

• Ubiquitous video calling

• Interworking = MRF

transcoding

3G/LTE Access

• Ubiquitous mobility

EPC + DPI

• Conversational managed QoS

ARPU Expansion: Video Monetization

Infrastructure in Place Smartphones, tablets, etc.

3G / LTE networks

Operators’ Opportunity Beyond a bit pipe

ARPU generator

Today Tomorrow

Video Conferencing

Today

Video Conferencing

Tomorrow

Extend Video Conferencing Beyond conference rooms

Mobile work force, remote executives

Operators’ Opportunity Beyond bit pipes

ARPU generator

Taking Charge of the Mobile Broadband Experience

“RAN-aware real-time traffic management brings the operator closer to what subscribers wants to

do, when and where they are.” – European operator

Carriers control a precious

asset: information on

subscribers’ location, activity,

and devices

Yet, they feel distant from

subscribers

What’s needed: fine tune

services to match network

resources & subscribers’

behavior & expectations

How: active, real-time traffic

management

Encourage service adoption,

increased data consumption to

reach sustainable profitability

Traffic Segmentation = Control

Video Conference

Operator VoIP

Gaming

Video on Demand

Business Class VPN

P2P

Email

Browsing

Platinum

Bronze

Silver

Gold

Tiered SLAs App-Based

QoS

Maximum Network

Optimization

T-Series ATCA Platforms

Application

Server

Media

Resource

Function

IMS

Internet

Policy &

Charging

Routing

Function

Policy &

Charging

Enforcement

Function

Mobility

Management

Entity

LTE Security

Gateway

Serving

Gateway

Packet

Gateway

eNodeB

User

Equipment

60+ Customer Wins

Macro Small Cells

VoLTE Video VAS

~65% Audio Conf Share

10G 40G ATCA

~40% ATCA Share

Traffic Management

Dumb Smart Pipes

Home eNodeB

User

Equipment

Radio Access Network Evolved Packet Core Policy Control IP Multimedia Subsystem

End-to-End LTE Infrastructure

Embedded Wireless Infrastructure Solutions