Huawei LTE Strategy

EU Wireless Marketing
Eric Sandberg
www.huawei.com
 1 Market Trends, Market Demand

2 Regulatory Aspects, Spectrum

3 Backhaul capacity requirement

4 Terminals & IOT’s

5 Cost of Ownership Trends

6 Future, IMT-Advanced, LTE-Advanced

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 2

 Services reach new market segments

Internet daily usage

Source: Christian Science Monitor....

New Culture indeed.

• Age 65-79, 40% (Sweden
2008)

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 3

 Traffic demand for various applications

Outgoing MB/
Service min/month month

Voice Average Wide Area mobile only 200 24

Full residential 500 60
Full professional 1000 120

Data, surf and mail Casual residential surf and mail 200
Full residential surf and mail 500
Full professional surf and mail 1000

Data, entertainment Streaming of music 8 hours a day 15000

Casual film, TV, gaming, etc 30000
Film enthusiast 200000

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 4

 Service Differentiation

 Service Differentiation is key to maintaining and possibly

growing ARPU
 Usage (GB per month)
 Access to Wi-Fi hotspots
 Coverage
 Priority (ARP)
 Bitrate (Technology, MBR, GBR, etc)
 GOLD, SILVER and BRONZE
 Using AMBR (aggregated maximum bitrate) and ARP (allocation and
retention priority)

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 5

 How much traffic for a wireless broadband user?

GB / month
Projection data traffic per user

DSL/Fiber

Mobile data - "high"

Mobile data - "low"

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

• Fixed broadband is likely to continue to be used for the high demanding

applications, whatever they may be at any given time
• The data traffic per user may approach what can be profitably delivered
with state of the art technology at any given time

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 6

 Telecom Services - Mature Market
(Sweden)

DataCom Services
Internet Services

Fixed Line Voice

Mobile Voice and Data

ARPU may decrease

(because of many
subscriptions) but mobile
market increased by 4%

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 8

 Swedish Telecom Market 2008 (example)

2007 2008 increase

Total Mobile Data traffic (TB) / year 2191 13720 526%
Data per MBB-only subs.(MB / month) 781 1824 134%
Number of MBB-only subs. 376 877 133%
MBB-only subs. Of total BB subs.(%) 9 21 133%
Total Data traffic last month comp. (GB) 294 1600 445%

Data per subs. Per operator (MB / month)

Operator end 2007 end 2008 increase
Telia 350 800 129%
Tele2 350 1150 229%
Telenor 650 1500 131%
Three 2700 4500 67%

http://www.pts.se/upload/Rapporter/Tele/2009/2009-21-svensk-telemarknad-2008.pdf

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 9

 Sweden Market, (example of GSM and
UMTS Subscribers movement)

• GSM subscribers decreased by 17% since peak (2005)

• UMTS/CDMA increased by 192% since 2006

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 10

 GSM Trends – Time for Re-farming in
Mature Markets?
 GSM subscriptions and traffic stable or decrease in
mature markets
 GSM 900 MHz enough capacity (voice & roaming)
for many years to come
 Voice traffic is moving to UMTS
 1800 MHz becomes available for MBB, using
LTE1800
 TCO benefits compared to new spectrum at 2600 MHz?
 Possible to free-up 10 MHz rapidly for LTE

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 11

 Market Requirements
Bandwidth Explosion with HSPA & Flat rate End-Users behavior

Mobile data growth

 Mobile data traffic

HSPA grew on average
introduction
between 4 – 8 times
in the first year of
HSPA
 From “minutes of use” tariff to “All you can eat”
Source: Tier 1 operator
Western Europe, 2007  “Always on” life style

Cost Reduction Devices Evolution

Mobile data business trends*
 LTE is expected to reduce  Mobile USB Devices market
cost by ~ 3 times growth of 46%, with annual
compared to HSPA shipments reaching 100
 Additional revenues can million by 2011.
be triggered from new  Smart-phones shipment >300
applications, and better million units @ 2011 (~25% of
QoS and capacity. overall mobile handsets)

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 12

 1 Market Trends, Market Demand

2 Regulatory Aspects, Spectrum

3 Backhaul capacity requirement

4 Terminals & IOT’s

5 Cost of Ownership Trends

6 Future, IMT-Advanced, LTE-Advanced

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 13

 Spectrum ITU Region 1 & Technologies

GSM UMTS LTE

Frequency
Band

1990 2000 2010

3.5 GHz 3.4-3.8 GHz. WiMAX/LTE?
3.7 GHz
REGION 1

LTE 2.6 GHz/WiMAX 2.6 GHz

2.6 GHz

2.1 GHz UMTS/HSPA 2.1 GHz LTE 2.1 GHz

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 14

1800 MHz LTE 1800 MHz
GSM 1800 MHz

UMTS/HSPA 900 MHz

900 MHz GSM 900 MHz
LTE 900 MHz

Digital dividend 790-862 MHz. LTE or HSPA+ 800 MHz?

800 MHz

2008 2010 2015 2020 2025

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 14

 2600MHz EU Regulation
Status
SRB
FIN

NOR EST
RUS
NOR LUA
S

DNK LTV

IRL HOL BLR

U
POL (*)
BEL
CZE UKR
D SVK

AUT HNG
CH
SVN HRV ROU

BIH
FR SRB
BUL
MNE
MKD
I ALB
GRC
POR
E
2600MHz spectrum auctioned or officially planned before Q2 „10

Targeting 2600 auction within 2010 (no official plans yet)

Targeting 2600MHz auctions after 2010

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 15

 Worldwide
LTE Launch
 42 Operators
 21 Countries

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 17

Overview – DD 800 MHz
• Spectrum that used to be allocated for analogue
TV broadcast is being switched off and planned to
be used (partly) for Mobile Broadband. This is
called Digital Dividend or DD for short.
• In EU it is in the 800 MHz band (790-862 MHz)
• 11 MHz are left for duplex gap
LTE/SAE
• 1 MHz from bottom for guard band with Digital TV. Network

• Left are 2x30 MHz (6x5 MHz blocks). See below.

• LTE is in general seen as the preferred technology
for the 800 MHz band @800
MHz

791-796 796- 801 801-806 806- 811 811-816 816- 821 821 - 832 832- 837 837- 842 842- 847 847- 852 852- 857 857- 862

Duplex
Downlink gap
Uplink

30 MHz (6 blocks of 5 MHz) 11 MHz 30 MHz (6 blocks of 5 MHz)

1MHz (790-791)
Guard band
Only 1MHZ guard band，Interference with DVB is key issue.

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 18

Drivers and Timing in Europe – DD 800 MHz
 Strong Support from Governments and European Commission.
 Germany be the first EU DD market.
 Complete analogue TV switch off: 2012 (Dec 2009 in Germany)
 3 times better coverage than 2.6GHz LTE

EU DD not officially reserved to MBB

EU DD officially reserved to MBB without auction
timeline
EU DD officially reserved to MBB w. auction
timeline

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 19

 Common Spectrum in Europe

2600MHz
CAPACITY
Layer 2100MHz
1800MHz LTE Prime Bands
UMTS Prime Bands
COVERAGE 900MHz
Layer 800MHz

GSM / UMTS /
LTE
WIMAX  Most Common Band (Europe)
EDGE HSPA+ (TDD)  Supported Band (market driven)
3500 MHz  180 MHz (TDD / FDD)
2600 MHz    2x70 MHz FDD + 50 MHz TDD
2100 MHz   2x60 MHz FDD + 20-35 MHz
TDD
1800 MHz    2x75 MHz FDD
900 MHz    2x35 MHz FDD
800 MHz (EU DD)   2x30 MHz FDD

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 20

 1 Market Trends, Market Demand

2 Regulatory Aspects, Spectrum

3 Backhaul capacity requirement

4 Terminals & IOT’s

5 Cost of Ownership Trends

6 Future, IMT-Advanced, LTE-Advanced

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 21

 Backhaul Capacity Requirements

2G/ GSM 3G /Rel 99 3G/ HSDPA LTE/ HSPA+

2600 MHz 200 Mbit/s

2100 MHz 6 Mbit/s 50 Mbit/s 100+ Mbit/s

1800 MHz 3 Mbit/s 3+ Mbit/s 3+ Mbit/s ?

900 MHz 1 Mbit/s 1+ Mbit/s 1+ Mbit/s ?

10+ Mbit/s 50+ Mbit/s 300+ Mbit/s

4 Mbit/s

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 22

 1 Market Trends, Market Demand

2 Regulatory Aspects, Spectrum

3 Backhaul capacity requirement

4 Terminals & IOT‟s

5 Cost of Ownership Trends

6 Future, IMT-Advanced, LTE-Advanced

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 23

Partnership with Qualcomm on LTE

 High Level Forum termly

 LTE Joint Lab in San Diego
 LTE Software release monthly
 IOT completed with Huawei infrastructure in May 2009

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 24

LTE USB MODEM Internal antenna, USB modem

Form Factor Size: 80mm x 25mm x 13 mm (TBD)

Weight: < 30g

LTE CAT3 : 100/50Mbps;

DC HSPA+ : 42/11Mbps;
EDGE MSC33 : 296/236.8 kbps
Features
E398
Plug & Play, 2*2 MIMO, Receive Diversity

Data service , SMS

LTE/HSPA+/HSPA/EDGE/GPRS

Chipset: Qualcomm MDM 9200

LTE / UMTS band : 850/900/1900/ 2100/ 2600

Specifications
LTE BW 1.4M/ 3M/ 5M/10M for 850/900/1900
LTE BW 5M/10M/15M/20M for 1900/2100/2600

GSM band : 850/ 900/ 1800/ 1900

* Dependent on Qualcomm Small volumes friendly users trail : 2010 Q1

chipset progress
Available* Large volumes commercial users : 2010 Q4

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 25

NGMN survey 09Q3

Voice and MM
Device

Data only Device

NGMN Confidential

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 26

 NGMN Survey 09Q3 - First commercial
data only device: Frequency Bands

Data only Devices (European Frequency Bands)

6
No Vendors

4
# Vendors supporting
3

0
2600 2100 900 1800 2100
(AWS)
MHz

All vendors confirmed 3GPP release 8, March 2009 as baseline

NGMN Confidential
HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 27
 1 Market Trends, Market Demand

2 Regulatory Aspects, Spectrum

3 Backhaul capacity requirement

4 Terminals & IOT’s

5 Cost of Ownership Trends

6 Future, IMT-Advanced, LTE-Advanced

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 28

 Wireless Data Performance 2000-2010

Cost per MB

NGMN Alliance – Next Generation

Mobile Networks (founded by leading
international mobile operators in 2006)

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 29

 Relative TCO per GB

Dense Urban Dense Urban Dense Urban

LTE Macro LTE Macro HSPA Macro

Existing Site New Site New Site

36 65 100

CAPEX (depreciation); OPEX;

• Radio &Core equipment • Power
• Antennae • Backhaul
• Installation • Floor/wall space
• Site investment • O&M personnel

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 30

 Network related Capex and Opex

• Continuous upgrades of the equipment to

support new technologies (HSPA+, LTE, etc)
• Addition of equipment to support new
frequency bands (2.6 GHz, 800 MHz, etc)
• Continuous upgrades of the backhaul to
Share of meet the higher capacity needs
Core Network

• Network related Opex, Power, rent for

floorspace, transmission, O&M, etc

The general conclusion is that the future yearly costs (capex and opex)
must stay on the same level in spite of the addition of new frequency
bands and migration to new technologies
HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 31
 1 Market Trends, Market Demand

2 Regulatory Aspects, Spectrum

3 Backhaul capacity requirement

4 Terminals & IOT’s

5 Cost of Ownership Trends

6 Future, IMT-Advanced, LTE-Advanced

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 32

LTE-A Main Features DL

UL

LTE R8 LTE-A

LTE-A

 Carrier / Spectrum Aggregation

 Higher Order MIMO (8x8 DL, 4x4 UL)
 Coordinated Multiple Point Transmission (CoMP)
 Relay
 Latency Improvements

HUAWEI TECHNOLOGIES CO., LTD. Huawei Confidential Page 34

 LTE-A Carrier / Spectrum Aggregation

Description:
 Two FDD scenarios studied closer at 3GPP
 Contiguous 40 UL +80 DL @ 3.5 GHz
 Non-contiguous 40 UL + 40 DL @ 1.8, 2.1, 2.6 GHz
 Two TDD scenarios also studied closer

DL DL

UL UL

Scenario Total BW # CC Band

Single Band FDD 3.5 40 MHz UL Contiguous 3.5 GHz
GHz 80 MHz DL
Multi Band FDD 1.8, 40 MHz UL Non-contiguous 1.8 GHz, 2.1
2.1 and 2.6 GHz 40 MHz DL 10+10+20 MHz GHz, 2.6 GHz

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 35

 LTE and LTE-A co-existance

DL

UL

LTE R8 LTE-A

LTE-A

LTE-A will most probably be blocks of 20 MHz bands,

thus giving higher throughputs with carrier aggregation
and backwards compatibility with legacy UE’s

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 36

 LTE-A - Quick Analysis Performance
LTE R8 FDD LTE-A (TR36.913)
Throughput
DL peak rate 326 Mbps 3x 1 Gbps Carrier Aggregation
UL peak rate 86 Mbps 6x 500 Mbps
DL peak rate (bps/Hz) 16 (4x4) 2x 30 (8x8)
UL peak rate (bps/Hz) 4.2 (1x2) 3.5x 15 (4x4) MIMO
DL average rate (bps/Hz) 1.69 (2x2) 2.4 (2x2)
1.87 (4x2) +40% 2.6 (4x2) MU MIMO, CoMP
2.67 (4x4) 3.7 (4x4)
UL average rate (bps/Hz) 0.75 (1x2) 1.2 (1x2)
+60% 2.0 (2x4) MU MIMO, CoMP
DL CEU rate (bps/Hz) 0.05 (2x2) 0.07 (2x2)
0.06 (4x2) +50% 0.09 (4x2) CoMP, Relay
0.08 (4x4) 0.12 (4x4)
UL CEU rate (bps/Hz) 0.024 (1x2) +65% 0.04 (1x2)
0.07 (2x4) CoMP, Relay
Latency
CP (from idle) 100 ms 50 ms
CP (from dormant) 50 ms 10 ms
Latency
UP 10 ms 10 ms Improvements
Capacity
Active UE per MHz 40 +50% 60 Any of the above

HUAWEI TECHNOLOGIES Co., Ltd. Huawei Confidential Page 37

Thank You
www.huawei.com

www.huawei.com