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Page 1 COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT PROPRIETARY USE PURSUANT TO COMPANY INSTRUCTION Hi there, welcome to the course about "9360 Small Cell concepts". I’d like to provide you with an overview of the Small Cell concepts and their advantages. I hope you enjoy the course. 1

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COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION

Hi there, welcome to the course about "9360 Small Cell concepts". I’d like to provide you with an overview of the Small Cell concepts and their advantages.

I hope you enjoy the course.

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COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION

Please take a moment and read the legal information on this screen.

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[1] After you finish this course, you will be able to:

[2,3] Explain the term "Flat IP" architecture,

[4,5] Explain the difference between a W-CDMA network and Small Cells and,

[6,7] List the main benefits of the Small Cell for the operator and consumer

[8,9] At the end you will need to pass a quiz to successfully complete this course.

Please click Next to continue.

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First of all let me explain the term “Small Cell":

It is an evolution of the term "Femto Base Station Router or Femto BSR".

A femto cell is typically designed for use in a home or small business and it allows service providers to extend service coverage indoors. Femto cells are installed, powered and connected by the end user.

A Small Cell covers a femto cell and a pico cell.

A pico cell is also designed to extend coverage to indoor areas, but additionally it can be used to add network capacity in areas with very dense phone usage like offices, shopping malls or train stations. Pico cells are operated and managed more closely by the network operator.

A “Small Cell" is a device that combines the functionality of a small cellular base station and the router functionality that connects to the service provider’s network.

In the past this was called Femto Base Station Router or BSR.

A "Small Cell Solution" consists of Small Cells, a set of central network elements that interconnect the Small Cells to the legacy mobile core network and the management system for it.

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The Small Cell Solution uses a so-called Flat IP architecture. Let us first have a look to the meaning of the term “Flat IP”.

The term “Flat IP” is related to the evolution of wireless network architectures.

Traditional wireless networks consist of a hierarchy of mobility-aware network elements, in which data and voice are handled separately. This has led to complexity and overhead costs for mobile operators.

The mobile industry, like the rest of the networking world, is evolving towards IP-based architectures with reduced complexity and converged voice and data services, but it may take several iterations of the standards to get to the ultimate Flat IP architecture.

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The hierarchy of traditional mobility-aware network elements can best be explained by the following figure, which shows the W-CDMA architecture. The user’s mobile device connects through a radio interface to a base station, the Node B. Multiple Node Bs are connected to a Radio Network Controller (RNC). In W-CDMA, the radio interface carries both circuit-switched services (telephony) and packet-switched services (Internet Protocol (IP)). For circuit-switched services, RNCs are connected to a Mobile Services Switching Center (MSC). For packet-switched services, RNCs are connected to a Serving GPRS Support Node (SGSN), which in turn is connected to a Gateway GPRS Support Node (GGSN).

When a user moves, handovers between base stations need to take place. This means that connectivity over the radio interface shifts from one Node B to another. As a consequence, there may also be a handover from one RNC to another and from one SGSN to another. The user remains anchored on the same GGSN, though, which serves to the rest of the Internet as the gateway through which to reach the user. Node B, RNC, SGSN and GGSN together perform the functions to operate a mobile network. Therefore, there are multiple, technology-specific protocols between the nodes.

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Traditional wireless networks [1] are quite complex. Not only are there a large number [2] of network elements that have mobility-specific functions, which increases a service provider’s capital expenditure (CAPEX), but in addition, the dependencies [3] between these network elements increase the operational complexity, resulting in higher operational expenditure (OPEX). For example [4], a change in radio technology, such as the one from 2G to 3G, required upgrades or replacement of all nodes in the W-CDMA hierarchy.

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The following figure shows the ultimate Flat IP architecture.

Simplification is achieved in the following manner:

The architecture is purely IP based. Therefore, there is no need for a parallel circuit-switched architecture. As a consequence, telephony services now need to be carried as Voice-over-IP (VoIP).

The functionality that was traditionally in the RNC is moved to the Small Cell and gateway.

Where possible, a single gateway is used, instead of the hierarchy of SGSN and GGSN.

The protocols between Small Cell and gateway are independent of the access technology; e.g. to support handovers, Mobile IP is used.

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When a subscriber switches on his wireless device, a connection is established with the nearest Small Cell and authentication takes place. The Small Cell then creates an association with the Gateway [1]. This procedure results in the allocation of an IP address to the device.

Once the attachment procedure is completed, the user is able to surf the Internet.

When the subscriber moves, a handover takes place from one Small Cell to another. The new Small Cell creates an association with the GW, while the old Small Cell releases the previous association. In this way the gateway keeps track of the subscriber’s location. The IP address of the device remains the same.

When an entity on the Internet sends traffic to a mobile node, it uses the destination IP address assigned to the device during the attachment procedure. This IP address is associated with the gateway on which the mobile node is anchored. The gateway subsequently forwards the traffic to the mobile node. Return traffic from the mobile node also flows through the gateway. The gateway, therefore, performs two roles:

[2] It hides user mobility from the rest of the Internet

[3] It functions as a fixed point through which all the traffic to and from the user flows.

Besides the CAPEX and OPEX reductions mentioned before, flattening the network has additional advantages:

Lower delay and jitter, which will improve the quality of existing services, such as telephony, and enable new services with very strict delay requirements, such as gaming.

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Due to the fact that most of the Mobile operators still generate revenues with circuit switched voice calls, Alcatel-Lucent has implemented the IuCS as well as the IuPS interface instead of using the ultimate Flat IP architecture.

[1] A “Small Cell Solution” is defined as the set of Small Cells which appears as a single radio network subsystem to the UMTS Core Network.

The maximum number of Small Cells per Small Cell Solution depends on the hardware and on the configuration that is used. A Small Cell Solution can serve far more than thousand Small Cells.

[2] The Gateway in our Solution is called the Small Cell Gateway. It is the central network element and terminates the Iu interfaces to the traditional 3G core network, which are SGSN and MSC.

For the SGSN as well as for the MSC a Small Cell Solution looks like a single RNC controlling hundreds or thousands of UTRAN cells.

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Now let's take a look at the high level Small Cell Solution architecture!

The Small Cell Solution is fully compliant to 3GPP standards and uses 3GPP interfaces to connect to the existing UMTS core network nodes. It supports traditional circuit switched voice, packet switched data and HSPA.

[1] The Small Cell Solution uses a “flat” architecture, meaning the UTRAN Node B and the RNC are consolidated into a single node.

The Small Cells incorporate the Node B and the RNC into a single network element as introduced by the Flat IP architecture.

The Small Cell Gateway contains three parts:

First the [2] BSR Signaling Gateway (BSG) that carries signaling between the Small Cells and the existing core network elements.

Second the [3] BSR Voice Gateway (BVG) that manages circuit switched voice Real-Time Protocol (RTP) streams and

third the [4] BSR Packet Gateway (BPG) that manages packet switched sessions using GTP (GPRS Tunneling Protocol).

[5] The IPSec Router Gateway encrypts the control plane and the user plane between the Small Cells and the core network.

To support the Solution there are a number of additional network elements including switches, routers and the OAM solution.

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W-CDMA network operators have evaluated the deployment of a W-CDMA Small Cell with flat IP architecture. What are the drivers for W-CDMA network operators to go towards Flat IP?

[1] Well, the 1st main driver is the fight for home traffic.

About 70% of mobile calls are made indoors, but only 2% of buildings have purpose-built indoor coverage, therefore up to 50% of users complain about poor indoor service. A Small Cell allows service providers to extend service coverage indoors with a high capacity that scales to mass market, especially where access would otherwise be limited or unavailable.

Furthermore costs are reduced when extending the existing network. Other options require significant CAPEX/OPEX for capacity and coverage; no additional RNCs are needed, what are the high cost items in a W-CDMA network. A Small Cell can be easily integrated into the existing W-CDMA network and at the end the subscriber pays for the Small Cell, the Backhaul and the Power! Additionally there are no site rental costs for the operator as for a Macro Node B. This is key to offer competitive tariffs and therefore key for success!

There is almost no impact on the scaling of existing nodes (like RNCs & SGSNs). Additionally the Small Cell is self-installed by the customer, removing the need for site visits.

Home Traffic can be cannibalized from Internet Service Providers in case Mobile Service Providers and Internet Service Providers are not identical.

Bundling with DSL allows the operator to be a converged service provider that includes Mobile Service Provider, Internet Service Provider and VoIP including applications (like Triple- or Quad-Play).

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[2] The 2nd main driver for W-CDMA network operators to deploy Small Cells is to offload traffic from the Macro network with a rather cheap solution. This increases the data throughput per user in the macro network as well as quality of service and avoids network expansion.

[3] The 3rd main driver is to stimulate the use of mobile data services and video telephony.

Using the Small Cell the mobile operator can develop a behavioral change centered on the mobile terminal. Subscribers using the Small Cell at home will also use W-CDMA user equipment when they are away from home, for example on business trips, when they visit friends or anywhere outdoors where coverage is available.

The more the subscribers experience the capability of W-CDMA or HSPA the more they will use this technology.

The more the subscribers migrate to W-CDMA the earlier GSM can be shut down, which would drastically reduce network operation costs.

[4] The 4th main driver is to reduce churn rate to other operators to gain mobile market share.

The Small Cell gives the possibility of offering excellent quality of service and service bundling especially indoors due to low latencies.

With the Small Cell a strong incentive arises to migrate all family members under the same operator due to the fact that it is not possible to use the Small Cell with mobiles from a different mobile operator.

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In addition to the mentioned key drivers for mobile operators there are further operator benefits:

[1] Control over security and quality of service: W-CDMA offers very good security features that will be combined with other Small Cell security features. There are still security issues for example in WiFi!

[2] The W-CDMA Small Cell uses an operator controlled spectrum that means there are no interferences from unlicensed networks. That is for example a disadvantage of WiFi compared with the W-CDMA Small Cell.

[3] For the subscriber there is no need to integrate separate networks like WiFi or wireline.

[4] Due to the fact that standard 3GPP W-CDMA mobiles can be used there is no need to purchase new mobile equipment as with other competitive technologies for example in Unlicensed Mobile Access (UMA).

[5] There is already the migration to Next Generation Networks IP Multimedia Subsystem or IMS in the Small Cell roadmap.

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Let me now highlight the consumer benefits:

[1] Use of standard 3GPP W-CDMA mobiles gives you the opportunity to use one phone with one number at home and on-the-move. A wide range of mobiles are available today.

[2] You can finally be reachable at home on your mobile and you do not have to run to the window when a mobile call arrives.

[3] Less risk of interference due to use of licensed spectrum, leading to improved voice quality.

[4] You can use your mobile now and do not need to go for WiFi to get rid of cables at home.

[5] Flat IP ensures very low latency and leads to good quality of service.

[6] You can use the same services inside and outside (for example voice mail, directory, video call, etc.).

[7] Calls and sessions can continue outside the home.

[8] Just “plug and play” works fine with the Small Cell.

Very often we are asked why anybody who is happy with his fixed line provider and his mobile provider and has a good DSL connection at home should purchase a Small Cell?

Well, let me try to give some answers:

[9] There is no need for separate bills, accounts or sign-in procedures, especially when you are out of home.

[10] The Battery standby time of your mobile will be longer since you have excellent coverage and with Power Control your mobile will always transmit with the lowest possible power.

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[11] Because with the Small Cell mobile operators get a comparable cheap solution for the extension of the W-CDMA network, they can offer a competitive price. A “Home Zone” tariff eliminates the need for a fixed line telephone. Bundled price plans include discounted or free calls at home.

[12] Be aware that the most important for the overall success of the Small Cell is a competitive price!

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Where can Small Cell Solutions be used?

[1] First they can be used in the home.

Used for residences they can be private cells that are installed by the end users themselves.

Among the main benefits at home are improved indoor coverage and quality on 3G handsets and cheaper communication with the possibility of a specific home tariff.

A single bill, a single handset and multiple lines at home simplify and improve the communication experience.

Last but not least the Small Cell Solution delivers at-home services based on presence, location and so on.

[2] The adequate product is the Alcatel-Lucent 9361 Home Cell.

[3] Second, Small Cell Solutions can be used at enterprises. These can be small, medium and big enterprises. The cells can be “private” cells that are installed by the local IT team.

Among the main benefits at enterprises are reduced communication bills because for example the landline telephone can be removed and free intra-company mobile calls are possible.

One handset can be used everywhere with one number and one phone book, so the communication experience is simplified and improved.

The Small Cell Solution delivers business applications such as connections to a PBX and remote access to office applications.

[4] The adequate product is the Alcatel-Lucent 9362 Enterprise Cell.

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[5] Third, Small Cell Solutions can be used for Metro cells.

A Metro cell is a public area base station with substantially lower coverage than a macro cell, offering high capacity, and serving a smaller number of users than Macro cells.

The Small Cell Solution for the metro will in most cases be owned and deployed by mobile operators to complement the public wireless macro network.

It can be installed indoor, for example in Shopping Malls, or outdoor at city squares, villages and streets. The Small Cell Solution delivers public services based on presence, location and so on.

The main benefits at Metro cells are that it can be used to extend the coverage of the macro cell and more important, it can offload the macro network.

[6] The adequate products are the Alcatel-Lucent 9363 Metro Cell Indoor and the Alcatel-Lucent 9364 Metro Cell Outdoor.

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This completes the course "9360 Small Cells Concepts”.

Your feedback is appreciated! Please feel free to e-mail your comments with reference to the course number to the given address!

Thank you!

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