Indoor Digitalisation- The new era by small cells A Huawei White Paper by Deepak Vishwanath / Andy Mckinnon / Dr. Yan Bian

May, 2015

CONTENTS

5 Huawei's solution for in-building digitalisation................................13

3 Enrich services in digital life.............................................................5

2 Industry trends and key business drivers.........................................3

4 Expand opportunities in digital enterprise........................................8

3.1 The ABC - Always Best Connectivity........................................................................53.2 Offering value added services..................................................................................5

1 Introduction.......................................................................................1

6 Conclusion.....................................................................................15

8 About the Authors..........................................................................17

4.1 Smart connected enterprise using VAS...................................................................94.2 New business services...........................................................................................10

7 References....................................................................................16

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As our outdoor macro networks have been upgraded to provide new digital connectivity, we now need to concentrate on how we do the same for the indoor environment where over 80% of the traffic is generated, but often in poor connectivity situations.

According to a new GSMA forecast, there will be 25 billion connected devices globally by 2020 [1]. We estimate an increase of over 1000x data traffic volume and 80% of this traffic will be generated from indoors, especially using;

•Mobiledataaccesstotheinternet(InternetofThingsIoT)

•Cloudbasedservices

•Bigdataanalytic

Digital devices have become part of our lives. Everything in the physical world – from living and working to learning – is connected to the digital world leading to devices that we may not even know exist that provide information. This information could be anything from our location, our utility meter reading to our heart rate or blood pressure.

As such, the prospect of realizing new revenue opportunities and engagingconsumersonadailybasis isgeneratingsignificant interestamong IoT/M2M and the enterprise, all of which plays an ever growing part of our digitized world. For instance, Bring Your Own Device (BYOD),location-awareandrelevantserviceswillleadtonewformsofproductivity,costefficiencyandpotentiallyhealth.

Indoor digitalisation is new trend for In-building coverage modernization. Indoor digitalisation is implemented by using active indoor small cells solutions instead of traditional analogue system, typically Distributed AntennaSystems(DAS).TheIndoordigitalisationcanofferthreekeyvalues to operators:

•EnhancedindoorMobileBroadband(MBB)experiences

o Indoor digital solution can provide more than 10 times DAS capacity to meet the capacity density demand of data

1 Introduction

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service while DAS is a good solution for voice service but not suitable for data service in indoor.

•HelpoperatorsexperienceSmartdeployments(architecturaladvantages)andeasieroperationofIn-buildingsolutions

o Indoor solution will be empowered with simple architecture, easy deployment and E2E visualized smart O&M to dramatically reduce OPEX and CAPEX as compared to DAS where more analogue components are needed and also not easy to maintain.

•Expand infrastructurecapability,generatingmoremobileapplications and new business model

o Indoor solution has better capabilities to share network resources to third party players to provide rich value added service for enterprise market such as providing precise location information in indoor.

This whitepaper takes a look at the exciting opportunities that emerge in our digitized world with examples of how Small Cells can provide the missing element to complement any future network.

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Within an all connected world, the only pattern of service scenarios is diversity. The mobile IoT is rapidly becoming a reality for every business and way of life. Along with new business models, operators will create low barriers to market entry. In our view, there are three major trends thatwouldredefinethetelecombusinesslandscape.

Trend 1 - Superior user experience is a prime demand.

A loss in service quality is likely to lead to a higher churn rate and hence to higher customer retention costs. Operators should focus on how to improve user experiences with guaranteed QoS in context of;

"Real-time" – users will enjoy zero-wait time enabled by sufficientbandwidth.

“On-demand" – users will be able to freely use whatever services they want.

"All-online" – devices will be online all the time.

"DIY" – users will be able to tailor their services, applications, and network requirements.

"Social" – social networks will be provided with rich contents.

2 Industry trends and key business drivers

Figure 1: Superior user experience in a digital connected world

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Trend 2 - Mobile network infrastructures become more agile and reduced operational costs.

It is financially and/or geographically prohibitive to build enough macro cells to service all demands. In order to deliver a superior user experienceontherightROADS(Real-time,On-demand,All-online,DIYandSocial),operatorsneedanappropriatestrategicapproachsuchas;

•OfferB.E.S.T (Betternetwork solution,Enhancedvalueproposition, satisfied user experience, and Technology & network evolution)networksforoutdoorandindoorenvironments.ImprovingQoS

•Accelerate in-building digital isation enabling indoorenvironments.

We have seen that, small cells are becoming an essential element of most operator’s mobile network & business strategies. For instance, simplifiednetworks,easierdeploymentsandSON(SelfOrganizingNetwork)makesmallcellsdeploymentseasierandfasterrewardingtheoperator with immediate impact.

Trend 3 - In-building digitalization is a “must” trend and creates tremendous market opportunities. Operators can expand their business reach in ecommerce; enterprise mobility, big data and IT cloud services by evolving traditional industries in the digital era and providing Value-Addedservices(VAS).Byopeninginfrastructureswith3rd parties, operators are able to build digital E2E system capabilities, offering more applicationsthatenrich indoorMobileBroadband(MBB)experiences.With this in mind;

•Indoorconnectivityhashightrafficdemands.Weestimatethat80%ofmobiledatatrafficisgeneratedfromindoors.

• In-buildingcancontributesignificantly to increasedrevenue.Especially,highAverageRevenuePerUser(ARPU)usersserved in“trafficvalue-highlands”(suchasshoppingmalls,airports,stadiums,andenterprise).

A new internalized experience changes everything. It requires operators to explore more mobile application scenarios to gain entry into a new business. In-building digitalisation is crucial to drive MBB business success. Thanks to small cells, operators can create agile business innovations(e.g.,utilizingbigdatatogaindeepermarketinsights),and

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to build a better connected digital world.

New services live in our digitalized world and provide their own forms of benefittousall.Theyrequirereliableandalwaysavailableconnectivityanddeserveandneedthe“ABC”–AlwaysBestConnectedapproach.Asan example, the rapidly growing area of self healthcare is the new forms of smart watch that track our steps and heart rate. Bluetooth provides thePersonalAreaNetwork(PAN)totheSmartphone,theSmartphonecan then select WiFi or cellular to update the cloud based self monitoring system. However often scenario’s exist where WiFi can either be congested, not available or requires subscription. We then need to rely upon the cellular infrastructure that may not be available without small cells. To record our location we would need to use Global Positioning Service(GPS)orAssistedGPS(AGPS).Consideringover80%oftrafficisgenerated indoors,weneedtoconcentrateonprovidingthe“ABC”indoors. This is where small cells can assist us and provide the much needed“Quality”andguaranteedconnectivityweneed.Inthecomingyears, small cells will become the indoor GPS providing similar accuracy of location as we see outdoors on our mobile phones.

3 Enrich services in digital life

3.1 The ABC - Always Best Connectivity

3.2 Offering value added services

Value-addedservices (VAS)havebeenseen tobecome thenewcompetition in the mobile space. To capture a true business value from a digital world, operators can provide VAS over their secured mobile network. Small cells offer the foundation platform for enabling reliable and bandwidth rich connectivity required for value added services.

Mobile IoT

To meet the needs of diverse scenarios in a world of billions of connections we need to think about how best to enable connectivity and also create the opportunity of new revenue models that break the mould from traditional – competing on cost to innovative services that justify

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extended premiums. The industrial world has enormous opportunities thatrequireconnectivityto increaseproductivity,efficiencyandreducecosts. All of these require connectivity to an ever expanding world of the internet and cloud computing - creating the digitized and automated worldoftenin-buildingssuchasoffices,Airports,Arena’sandshoppingMalls.

Figure 2: The digital world in 2020

Mobile health

Health monitoring has grown significantly in popularity. This often involves the user wearing a smart device such as a watch that monitors steps taken, heart rate and so on. This watch is normally connected via Bluetooth to a Smartphone. The Smartphone then updates applications in“thecloud”fortheusertoassesstheirfitnessfrommultipledevices.To keep this data updated in real time, connectivity is required as a minimum regularly. In the same process, imagine a patient with a health issue being monitored. This could be connected via the cloud to their health provider, who could potentially alert the patient of an issue before it becomes critical. In addition, an insurance company providing health care insurance may have the opportunity to reduce premiums based on user’s activity.

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Mobile advertising

We all recognize advertising as not only an opportunity, but also a hindrance. It would be nice to live in a world where we were mostly offered products or services we would be interested in, rather than, in the majority of time, items we have no desire for. This not only can be considered a waste of time and resource, but also money. We are in a world where we were in fact only offered items, based on our habits. Take the shopping mall experience – we all see the bill board sign, which increasingly is digitized. We can select where we want to go or evenfindtheshoponamap.However, ifwearenot familiarwiththeenvironment we could still get lost.

Figure 3: Mobile IoT capability assurance from outdoor to indoor

Figure 4: Commercial deployment for shopping mall (Sichuan China)

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If we enabled GPS on our phone, it would not help as we cannot see thesky.Ifwehadsmallcellsinthemall,LocationBasedServices(LBS)could be enabled. Allowing us to use route guidance on our smartphone, as well as targeted advertising to us for the type of mall we are in using “BigData”ordataanalytics.E.g.Targeted informationanddiscountcoupons can be displayed on phones at a precise position in the store when shoppers need it most and are most receptive. We may even be able to use data analytics to assess the average age of the shoppers to change the electronic billboard signs to target that demography.

4 Expand opportunities in digital enterprise

A digital enterprise leverages technology as a competitive advantage in its internal and external process. Moving towards the digital world has become utmost importance to show key differentiation among competition in the market within the enterprise segment. In fact, bring youowndevice(BYOD)representstheemergingphaseoftheenterprisemobility model that has the potential to truly transform the way people and enterprises work.

Enterprise users are extremely valuable customers. To win this business, operators must provide high-capacity network where business customers spend more than 80% of their working hours – Indoors. Having poor connectivity is not acceptable in this area. According to the small cell forum, up to 87% of businesses would switch operator to guarantee coverage [2]. By providing excellent coverage, capacity and improving QualityofExperience (QoE) to theenduser,Mobileoperatorscanattain and retain valuable enterprise customers. Improved customer experience, customer loyalty/retention, and higher ARPU are the key for successful business. Often, enterprise subscribers are willing to purchase new services from operators ranging from in-building digital services to mobile device management. Proving digitalized services and VAS would enhance customer relationship and retain high ARPU customers.

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4.1 Smart connected enterprise using VASIn addition to reliable indoor coverage and capacity, small cells can offer scalability and a local presence within any enterprise building that creates an opportunity for the operators to deliver hosted and VAS.

Smart connected enterprises are providing an open, collaborative and productive work environment while balancing the necessities to optimize energy efficiency and environmental stewardship. To achieve these goals, organizations are utilizing network infrastructures to enable smart enterprise devices, to facilitate the convergence of digital media, and to track/manage computer and building assets.

Organizations are increasingly deploying enterprise network infrastructures(smallcellsbeingthemajoroptions)toreduceoperationalcosts, improveenergyefficiency,enableandmanagebuildingsystemswith accurate LBS.

Services such as:

•Lightingcontrols

•Employee/AssetTrackingservices

•Mobilepresenceforofficeautomation

•mVPN(MobileVirtualPrivateNetwork)

•Mobilevideosurveillancecameras

•InteractiveLobbyKiosks

•Digitalsignage

•Mobilecloudcomputing

•mPBXforshortcodediallingservice

•mCRM(MobileCustomerRelationshipManagement)

•mERP(MobileEnterpriseResourcePlanning)with locationinformation

•BYoD(BringYourownDevice)

Many other VAS services are being introduced and expanded, moving towards the digital enterprise with small cells in order to increase average

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revenue per application and improve customer experience. Connected enterprises help operations managers profitably manage and improve manufacturing and industrial processes, reduce network complexities for IT executives and minimum exposure to cyber security risks. It shares productivity-improving information to workers across the organization in a context that is meaningful for each role.

4.2 New business servicesExciting new business services are created through the extended connectivity provided by small cell coverage. With the small cell advantages we move from a partially connected world to an always on and available scenario. Almost all of the new services are application driven.

Cloud

Totakeadvantageofextendedreliabilityand“alwaysavailable”services,Cloud computing is becoming the industry standard for application access due to its inbuilt advantages. GSMA predict up to 70% of data will be cloud based by 2020 [1]. Cloud computing enables new services such as data centres, storage, backup, virtualisation, IT infrastructure, public cloud, private cloud, hybrid cloud, video surveillance, application hosting, virtual desktop, managed services etc.. By offering a single one stop solution, operators have new revenue opportunities;

•Bundlingtheirexistingconnectivityserviceofferingsalongwithpublic cloud services.

•Up-sellhigherbandwidthpackagestoenterpriseforahigherdemand for cloud services.

•Leverageexistingrelationshipsandpartnershipstocaptureamarket share of local cloud services market and even offer public cloud services.

Enterprisesegmentsnotonlybenefitfromhighlyreliablemobilenetworkconnectivity but can also enjoy security and accurate billing services. Seven key areas where operators can help the enterprise through in-building coverage can be summarized as follows:

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Figure 5: Telecom operator role in cloud computing

Through small cells, Cloud solutions deliver carrier-grade and virtualized real-time charging services, that can achieve the following :

•Usesignificantlylesshardwarecomponentsandinfrastructurecomponents.

• Improveenergyefficiencynotonlyfor the infrastructure,butalso the devices.

•Automatedmanagementandmaintenance.

•ReducetheTotalCostofOwnership(TCO),byvirtualisingandconsolidating data centres.

•Shortentheinnovationcycleandtimetomarket(TTM).

•Reducetheburdenonenterprise’ofcostly infrastructurebutalso costly bespoke development.

Big Data analytics

Anotherareatheenterprisecanbenefitfromthisdigitisedenvironmentis use of the comprehensive data available for LBS. A key benefit to operators and enterprise alike is the ability to analyze this information and extract meaningful and actionable insight. With the availability of Big Data based analytics platforms, location based information is a crucial anduniquedatasourcetoprovidethebasisof“real-time”insight.Thisreal-timeinsightcanbeusedtodriveCEP(ComplexEventProcessing)solutions such as real-time recommendations and mobile marketing.

Thebusinessbenefittotheoperatororenterprisecustomeristheabilityto acquire this subscriber location information in venues that host multiple businesses such as airports, stadiums, and shopping malls etc.

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A multitude of technical solutions have been developed to track visitors andshoppersaroundaspecificoutletbutasyetithasbeenextremelydifficulttoanalyzewheretheseindividualshavecomefromorgoonto.By using location based insight and predictive analytics the operator can monetize their Big Data asset by providing real-time actionable insight on subscriber positioning and movement. For example;

An enterprising retailer in women’s fashion decided to entice shoppers in the busy mall by targeting them when they visit the competition. Working with an operator and the shopping mall landlord, they decided tocreatean“opt in”servicetoshoppersofferingadiscountscheme.Using a data analytic service provided by her operator, she knew the targetageofthe“optedin”shopperswithaninterestinhergoods,andusing LBS the system knew when they entered the competitors shop. At this point, using an automated system, the system would send a voucher that would offer a discount, with a countdown timer and directions to her shop. Carefully calculating which shop they were in and the distance to her shop, she would automatically adjust the timer to the average travel time, to the point where the quickest shoppers would get the highest discount. E.g. 20% but down to 10% as a minimum for the slowest. In addition this service provided information of how many shoppers entered the mall, what shops and location were most popular and how long the shoppers spent in each.

Analysing this data, the innovative shop keeper renegotiated the location of the store to one of the busiest areas of the large mall. In addition, the landlord offered this service to other retailers enhancing the value of them moving into the shopping mall. The offers would rotate at random by day so as not to create too much favouritism and enhance competition.

Althoughthisisafictitiousexampleofwhatispossible,itdemonstratesafraction of the wealth of opportunity open to us using Big Data analytics. Thisserviceisonlypossiblewhentheconnectivityorthe“ABC”isusedand data processing is available.

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5 Huawei’s solution for in-building digitalisation

As communications have evolved, so should infrastructure move from analogue/passive to harmonise our digital requirements. This evolution not only speeds the installation and reduces complexity, but also has significant impact on the CAPEX and OPEX going forward. Hidden advantages as discussed earlier include the ability to provide location services, but also items such as better battery life to mobile devices that no longer need to continuously poll the macro network, or increase their transmit power, or use satellite GPS.

Figure 6: Indoor solution evolves from passive to digital

Lampsite - Fully digitalized small cell solution:

For the digital indoor network, Huawei offers our LampSite indoor coverage solution complemented with Service Anchor - an enterprise service gateway, and represents openness of radio communication pipes. By cooperating with operators and third party application developers, it provides feature-rich applications to enterprise customers thus demonstrating the inherent value of Small Cell.

Service Anchor - Service platform interface:

Service Anchor is an innovative solution in which the Network Functions Virtualization (NFV) technology is introduced. It isdevelopedon thex86 platform and allows for flexible deployments of multiple network controllersinindoorscenarioslikeaccesscontrollers(ACs)andvirtualunifiedpacketgateway (vUGW) to implementcoordinationamong

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networks and BYOD applications. In addition to pipe capabilities, it offers indoorpositioningfeaturesto tackle issuessuchas insufficientGPS coverage, conventional unitary Wi-Fi deployment, and commercial challenges in applying for Bluetooth positioning in indoor areas. By allowing operators to provide third-party partners with user location information on their existing networks, it can help operators gain advantageous positions in the enterprise market through industry third party relationships in the course of developing smart venues, smart communities, and smart cities.

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6 Conclusion

As this paper points out there are a wealth of opportunities that can be created from the enhanced expansion of cellular networks to in-building. Some of these services are yet to be thought of, however without the needed QoS there will be a lack of QoE. Small cells have become the much needed plumbing required to ensure the flow of newly required and demanded services for in-building applications satisfying our digitised appetite.

The next generation of connectivity, services and feature rich – relative information is at our finger tips. In the future, connections between people and people, people and things, and things to things will produce tremendous opportunities to enrich our lives.

We are at the point now where some services that should be available indoors are available outside. These digital services have become part of our lives in both the social and business context. We should embrace the opportunity to ensure the impressive macro coverage of the majority of our world is duplicated and guarantees seamless transition to services indoors.

In-building digitalisation will generate indirect revenue from improved churn and loyalty. Better service and enhanced user experience will driveuptrafficusageandincreasedatarevenue.NewdigitalVASwillboosttrafficusageandnewVASrevenuewillhelpafasterinvestmentreturn.

Operatorswillbenefitbytakingadvantageof;

•Meeting thesuperiorROADS(Real-time,On-demand,All-online,DIY,Social)userexperiences.

•GuaranteetheABC(AlwaysBestConnection)overmassiveIoT to both consumers and enterprises.

• Innovate wi th new appl icat ions and new businessopportunities.

A Better Connected World is waiting….

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7 References

[1] GSMA Intelligence Market Data for China [www.gsmaintelligence.com] – November 2014

[2] “EnterpriseSmallCells:TheBusinessCase”,bySmallcellforum

[3] Small Cells, Big Opportunities – Huawei whitepaper, 2013

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Deepak Vishwanath

Managing Consultant , Global Business Consultancy

Deepak is an experienced consultant in the digital application and services team within the UK competence centre. He is involved in projects for operators in Europe, Middle East and Asia, focussing on mobile network strategy, HetNet strategy, techno comparison and technology introduction with go-to-market design. He holds an MSc degree from Oxford Brookes University, UK. Prior to joining Huawei, Deepak worked for iWireless Solutions and Alcatel-Lucent, UK as wireless Consultant.

8 About the Authors

Over 25 years in IT and Telecoms including co-chairing the global development committee for the wireless communications association (WCA) and several international government advisory positions. Masterminded the world’s first commercial implementation of 802.16 (Pre-WiMAX), the worlds first national rollout of WiMAX (802.16e) and a turnaround in the commercial aircraft overhaul business using 802.11 (Pre-WiFi) in hangers with the world’s first thin client 802.11 wireless terminal. Prior to Huawei, Andy worked for NSN, Motorola and EDS in several senior leadership roles.

Senior Managing Consultant, Global Business Consulting

AndyMcKinnon

Dr. Yan Q Bian

Dr. Bian has 29 years experience in telecom across industry, academy and government. Since joining Huawei in 2011, she is leading research program within the UK competence centre, and responsible for a number of consulting projects covering MBB, Small Cell and LTE. Prior to Huawei, Yan worked for Alcatel-Lucent, Toshiba and MIIT, managed a large LTE/WCDMA organization. She holds several International granted patents, authored many IEEE/IET journals and books in areas of wireless communications. Yan received her PhD from University of Bristol, UK. She is a visiting professor at UESTC, China. Dr. Bian has been recognised as a national distinguished expert by “Chinese 1000 high-level overseas talents program”.

Marketing expert, Global Business Consulting

www.huawei.com