Multi-frequency Data Wholesale Operator’s

Case Study

LTE World Summit 2012

Dr. Adam Kuriański

CEO of Aero2, Mobyland, CenterNet

AGENDA

• Introduction

– Polish Market

– The Group

• Business Concept

– only mobile data transmission (evolution of mobile broadband – HSPA+ and LTE technology

• Future

2

Introduction – Polish Market

3

Poland: • 312 685 km2 Area • 38.501 Population • GDP (nominal)

• $ 513.821 billion -TOTAL • $13 540 - Per capita

Polish market end of 2011

Introduction – Polish Mobile Market

4

0

20

40

60

2006 2009 2011

10 20

55

Polish mobile internet access [%]

(dane: Ericsson Consumer Lab 02/2012)

116.0%

4.7%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Mark

et

pen

etr

ati

on

[%

]

mobile voice mobile data

Mobile market penetration in Poland

source: Office of Electronic Communications in Poland (UKE) 2010

Beginning of 2012 – 3,0 mln users of mobile internet (8% penetration) and 9 position in UE. • Reasons to choose the mobile internet:

- data coverage ,

- no limitation, - price of subscription;

Introduction – The Group

5

November 2009, Aero 2 launches the World’s First HSPA+900MHz Commercial Network (21Mbit/s), based on SDR and ALL-IP architectures

September 2010, Mobyland & CenterNet launch te First LTE1800-FDD commercial network (by GSA)

May 2011, Aero2 launches LTE2500-TDD network – beginning of Dual LTE network

December 2011, Aero2 HSPA+900MHz – 75,9% population of Poland in our coverage

Introduction – Our Network #1

6

HLR/HSS MSS

WAP GW SMSC

VMS

UGW USN

PCRF

eNodeBs

MGW

MMSC

CS Core 4G PS Core

VAS

GGSN SGSN

3G PS Core

eUTRAN

NodeBs

UTRAN

STP

IP/MPLS transmission network

To other Operators (interconnect, national roaming)

Core/Warsaw

Countrywide transmission network

7

Key characteristics :

• Network sharing (to reduce CAPEX & OPEX)

• active RAN sharing – MOCN

• passive site sharing

• Multiple PLMN

• All IP

Focus on LTE & HSPA + in suburb and rural areas.

Benefits: flexible architecture and fast time to market

Introduction – Our Network #2

8

•Our network:

• 900MHz-FDD HSPA+ (2*5MHz)

• 1800MHz-FDD LTE (2*20MHz)

• 2500MHz-TDD LTE (50MHz)

Pop

ula

tio

n /

m2

higher density higher network capacity

Rural Suburban Urban

900 MHz 900 MHz

1800 MHz

900 MHz

1800 MHz

2500 MHz

1800 MHz

HSPA+

LTE - FDD

LTE - TDD

Introduction – Our Frequency Usage

Business Concept

9

Why only data?

• In 2009 mobile voice market in Poland saturated

• „Collapse” of voice MVNO business model

• Collapse of voice mixed GSM1800 + MVNO business model

• Roll-out speed & networks quality (10 Year’s of acceptable coverage)

• „oversleep” in mobile data services (credibility of data services, is data source of future revenue ?)

• delay of UMTS reframing in 900 band

• Poland characteristics (66% - rural areas)

Business Concept

10

11

Business Concept

Higher data rates

Higher cell capacity

Lower latency

Better quality of service

at the cell edge Higher spectrum effciency

Lower CAPEX & OPEX

12

FDD TDD Fixed allocation (waste of frequency) Flexible allocation

Mature ecosystem Beginnings of ecosystem

Europe / USA China

Full standarization 3GPP Full standarization 3GPP

For coverage and capacity Mainly for capacity

Business Concept – Why LTE-FDD & LTE-TDD?

Business Concept - Why Wholesale Only?

13

To minimise operational costs:

• No brand investment

•No SAC / Customer Care / Retention - restricted cost control

•No retail – cost of shops, design,

Wholesale operators – our way how cut down expenses

Business Concept

14

• Product: – Mix of Megabytes „produced” of HSPA+ 900 MB’s and LTE 1800

MB’s – the minimal purchase 1 mln GB per 1 year ( preference 10 mln

GB) – price erosion with next orders – free data during nights (24:00 – 06:00)

• Distribution - today 2 big partners • Cyfrowy Polsat S.A. (MVNO and satellite TV DTH), no 2 in Europe

• Polkomtel (GSM operator)

• Fast network roll-out

• to complete the fast rollout, introduce Voice over LTE, prepare rollout LTE-TDD.

Future!

15

Managing current technical challenges:

• fast roll-out followed by deep back-bone investments

• managing multiple PLMN problems: • CS-fallback

• hand-over’s

• quality

• lack of HO implementation

• lack of full chipset support

• limited 3GPP definition (CS-fallback)

• back-bone architecture and standard

• lack of voice service and international roaming

• services development – compatibility of services – Voice services !!!

• worldwide functionality & roaming

Thank you!