Voice Revenue Model Crisis

OTT Players eroding Service Provider’s revenue

Existing Mobile Service Trends

voice SMS

Data Connectivity

Commerce

Contents Entertain -ment

VoIP SMS

Voice Service Comparison at a Glance

GSM UMTS VoLTE

Codec GSM FR, GSM HR, GSM EFR, AMR, AMR-WB

AMR, AMR-WB

- Speech : AMR, AMR-WB - Video : H.263, H.264 - Real-time Text : T.140

QoS Dedicated Channel Dedicated Channel

Network Controlled QoS by QCI - IMS speech : QCI 1 - IMS signaling : QCI 5

Required Components

- Legacy TDM : TRAU, MSC - IP based : MSC server, MGW

MSC Server, MGW

IMS Subsystem

2G/3G Voice has provided “good enough” quality of experience for voice service

However, VoLTE provides Service Provider’s with

New Services for Rich Communications

RCS is … Combined solution for new way of communication in messaging, chatting, sharing and network storage based on presence and group information

Supported by OMA and GSMA RCS Spec.

Integral solution with Network Address Book

Rich Communication

Instant

Messaging

Presence Contents

Sharing

SMS,

MMS

MMBOX Video

Chatting

VoLTE Realization Strategy

1st Phase

2nd Phase

3rd Phase

Basic LTE Data Service Without Voice

National LTE Coverage With Basic mVoIP Service

IMS Centralized Service With Integrated PS Service

eNodeB EPS

IMS Server

HSS

MGC MGW

SBC

PCRF

IMS

Pico/Femto eNB w/ WiFi

HeNB GW, SeGW, ePDG

2G/3G Legacy

IWF

Market Agreed Phased Approach for Complete VoLTE

Benefit of VoLTE with Rich Multimedia Service

Rich

Communications

User Generated

Services & Contents

Pervasive

Networking

Mobility

In Work & Life

Contents &

Applications are

Driving the Market

• More than 70% of traffic will be Multimedia type of data by 2015.

• UCC is the most popular contents • Mash-up : On of Top10 trends ‘ You can not afford to ignore ’

• 70M connected M2M Devices by 2014 (Berg Insight) • A trillion connected Devices in 10-15 years “ (Economist)

• Mobile : One of Top 10 internet trends (KPCB)

• Key enabler of Google Apple and major Telco’s ‘SMART’ business

VoLTE and RCS can fulfill the demands for the connected web user

Need to work for New Revenues

4G Service: with differentiated downlink service speeds by using a tiered approach

Premium Revenue

New Revenue

“Dumb Bit Pipe” data service will not guarantee revenue for very long

Experience from Korea

Operator 3G All you can eat data

LTE Tiered pricing

~ 47 $ (most popular)

~ 53 $ (most popular)

~ 85 $ (top end)

KT 300 mins voice 350 SMS Unlimited data

350 mins voice 350 SMS 5 GB data

1050 mins voice 1050 SMS 18 GB data

SKT 300 mins voice 250 SMS Unlimited data

350 mins voice 350 SMS 6 GB data

1050 mins voice 1050 SMS 20 GB data

LG-U+ 300 mins voice 300 SMS Unlimited data

350 mins voice 350 SMS 6 GB data

1200 mins voice 1000 SMS 20 GB data

Early VoLTE Commercial Plans

VoLTE commercial in Q3 2012, SRVCC

VoLTE commercial in October 2012

Nationwide VoLTE commercial in October 2012 Turn off CDMA in 2015 and only VoLTE for voice

VoLTE - Challenges & Solutions

Challenge in VoLTE : quality degradation in boundary area

VoLTE performance enhancement via Samsung Smart LTE Networks

Conventional LTE Smart LTE Performance

Enhancement

Ch

ann

el Q

ual

ity

A B C

A B

C

Average Cell Performance

1.8 times

Samsung Synergy

Telecom Systems Mobile & IT Solution Media Solution Center

Earlier service introduction, earlier and better optimization

Conclusions

SAMSUNG SMART LTE NETWORKS

SMART SYSTEMS FOR A NEW ERA

Visit us – booth 44