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EVERYTHING YOU EVER WANTED TO KNOW ABOUT LTE (BUT WERE AFRAID TO ASK) SEMINAR – PART 1/2 Jonathan Buschmann Ericsson Italy Rome, April 6, 2011

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EVERYTHING YOU EVER WANTED TO KNOW ABOUT LTE(BUT WERE AFRAID TO ASK)SEMINAR –

PART 1/2

Jonathan BuschmannEricsson ItalyRome, April 6, 2011

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 2 (29)

Seminar objectives Answer these questions

› What is LTE?–

Why do we need it?–

How fast is it?–

How will the mobile network evolve?› What will change for the user?

Which services and which applications?–

Will I need a new cell phone?–

Will coverage and mobility improve?› How does LTE work?

What is the new access architecture? –

How will the core network change?› What do all the new acronyms mean?› What’s the current situation and what is LTE’s future?

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 3 (29)

Source: Facebook (Jan 2009), Apple (Sept 2008) YouTube (Sep 2008), Nielsen NetRatings (Jan 2008), YoSpace (Feb 2008), eMarketer, (2008), Digital Ethnography, Kansas State University (March 17th 2008), —Nielsen Buzz Metrics (2008) Comscore (Oct 2007) Wikipedia (Feb 2008) Informa Dec 2007, Pew internet and American Life report Dec 2007.

Why LTE? the demand for new MBB services

Over 10 million articles and over 6 million registered contributors on Wikipedia globally

45% of US and European workers are away from their desk more than 20% of their time

Over 4 billion songs,125 million TV episodes and 8 million movies have been purchased and downloaded from iTunes

412.3 years = Time it would take to view all of the material on YouTube.

More than 100 million video views are generated on YouTube every day.

The number of text messages sent and received each day exceed the population of Earth.

If Facebook is larger then Russia, with over 150 million active users.

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 4 (29)

Market factors

• Almost 5 billion GSM-UMTS users in the world• Almost all GSM operators have adopted EDGE technology• Over 600 million UMTS users in the world on 383 commercial networks• 380 operators in 155 countries offer HSDPA, 103 HSPA+ networks in service

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 5 (29)

Why LTE? the evolution of voice and traffic data

Traffic statistics for an UMTS-HSPA opeartor, market leader

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 6 (29)

Why LTE? the mobile Broadband market

“1000-fold percentage”

“+300% in 6 months”“In 5 Months +250%”

“Data traffic +40% per year”

“+500-600% annually”

“MBB to 25% of all subscribers ”

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 7 (29)

Why Lte? Fixed & mobile subscriptions

Source: Internal EricssonMobile Broadband: CDMA2000 EV-DO, HSPA, LTE, Mobile WiMAX, TDSCDMA. Both mobile PC, Tablets and handheld devices.Mobile Broadband and Mobile PC are subsets of total mobile subscriptionsFixed Broadband: Cable, xDSL, Fiber, PC-to-PC VoIP e.g. Skype not included in VoIPThis slide contains forward looking statements

M2M to be added on top

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2008 2009 2010 2011 2012 2013 2014 2015 2016 Year End

Subs

crip

tions

/line

s (m

illion

)

Mobilesubscriptions

Fixed narrowbandvoice

Fixed broadband

Fixed VoIP

Mobilebroadband

MobilePC/Tablets

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 8 (29)

Why LTE? traffic growth in the USA

Source: “Managing Growth and Profits in the Yottabyte Era”,Chetan Sharma, July 2009. One Terabyte is 1000 gigabytes.

Ericsson's researches say that of the estimated 3.4 billion people who will have broadband by 2014, about 80 percent will be mobile broadband subscribers – and the majority will be served by High Speed Packet Access (HSPA) and Long Term Evolution (LTE) networks.

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 9 (29)

Why LTE? Reported mobile subscriptions

Source: Internal EricssonThis slide contains forward looking statements

By system standard M2M to be added on top

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Rep

orte

d S

ubsc

riptio

ns (m

illion

) LTE/TD-LTE

WCDMA/HSPA

GSM/GPRS/EDGETDSCDMA

Mobile WiMAX

CDMA

Other

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 10 (29)

Why LTE? EVERYTHING WILL be connected

Connected consumer electronics

Intelligent transport, industry and society, smart

utilities

People: Entertainment, security, healthBusiness: Productivity, new revenues

Society: Sustainability, regulation

Drivers

Broadband ubiquityDeclining cost of connectivity Enablers

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 11 (29)

Why LTE? 50 Billion devices connected!

Connected devices WorldwideConnected devices / connections (not including tags e.g. RFIDs, including 802.15.4)

Billion

Traffic systems

Automotive

Transport and logictics

Utilities – smart grid

Security – connected buildings

Home appliances

Medical automation

Remote healthcare

ATM, Point of sale, Vending

Critical infrastructures

Monitoring and control

0

5

10

15

20

25

30

35

40

45

50

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Connected Consumer Electronics

Fixed phones / IP phones Mobile phones

More devices per person

Addressing industries

PCs

M2M

eBook readers, Music players, DVD players,

Gaming devices, Cameras, Home appliences, In-vehicle

entertainment etc.

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 12 (29)

Why LTE? the benefits for the end users

› User benefits–

Mobile Broadband

Capacity in downlink >100 Mbps

Capacity in uplink > 50 Mbps

Data traffic and Internet access with tariffs comparable to fixed networks

Large variety and availability of handsets / devices

Tecnologie a confronto: tempo per il download di un DVD (4,6 GB)

GPRS (170 kbps) ⇒ T~ 3 giorni

EDGE (470 kbps) ⇒ T ~ 1 giorno

WCDMA/HSDPA (14,4 Mbps) ⇒ T ~ 1 ora

LTE MIMO 2x2 (173 Mbps) ⇒ T ~ 5 minuti

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 13 (29)

Why LTE? the benefits for operators

› Benefits for operators–

Simplified architecture –

Data and voice services furnished on a unified packet data infrastructure

Flexible use of radio spectrum (from 1,4 MHz to 20 MHz wide channels)

⇒ Reduced network cost

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 14 (29)

LTE is the Global standard for Next Generation – FDD and TDD

CDMA Track (3GPP2)

GSM Track (3GPP)

2001 2005 2008 2010

LTE FDD and TDD

GSM WCDMA HSPA

TD-SCDMA

CDMA One EVDO Rev A

But Why in particular LTE?

LTE - FDD- TDD

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 15 (29)

In five years Mobile broadband subscriptions 2016

Source: Internal EricssonMobile broadband defined as: CDMA2000 EV-DO, HSPA, LTE, Mobile WiMAX and TD-SCDMA.Note that mobile broadband here refers to handsets, USD dongles, embedded modules etc. The vast majority is handsets. Tablets/M2M are not included.This slide contains forward looking statements

CDMA2000 EV-DO

TD-SCDMALTE

HSPA

Mobile WiMAX

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 16 (29)

What does LTE mean?› LTE is an acronym for Long Term Evolution and refers to the recent Work

Item in the 3GPP standards body concerned with the evolution of the Radio Access Network.

› The evolutional course that has lead to LTE includes GSM/EDGE, WCDMA and HSPA Evolution (a.k.a. HSPA+)

› The LTE standard was first released in 3GPP Release 8.

HSUPA MBMS

Rel 6

MIMOHOMCPC

Rel 7Rel 4R99

HSDPA

Rel 5

4G4GFurther

enhancements

WCDMA/HSPAWCDMA/HSPAWCDMAWCDMA HSPA EvolutionHSPA EvolutionRel 8

LTELTE

• LTE Release 8 can be considered the transition form 3G to 4G and is the basis for the definition of 4° generation specifications in Release 10: LTE- Advanced

Rel 9 Rel 10

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 17 (29)

What does sae mean?

› SAE is an acronym for System Architecture Evolution and represents the set of 3GPP specifications regarding the evolution of the Mobile Core Network.

› The objective of the SAE specifications is to define the future core network needed to support the services furnished by the LTE access network with a simplified architecture (with respect to the current 3G core network.)

› LTE and SAE are two aspects of the same evolution of the next generation mobile radio network.

Rete di Accesso (LTE) Rete di Core (SAE) INTERNET

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 18 (29)

which are the principal nodes IN SAE/LTE architecture?

› Access Network›

E-UTRAN (Evolved UTRAN) ⇔ LTE

E-Node B (Evolved Node B)

UE (User Equipment)

› Core Network›

EPC (Evolved Packet Core) ⇔ SAE

S-GW (Serving Gateway)

MME (Mobility Management Entity)

P-GW (PDN Gateway)

HSS (Home Subscriber Server)

› EPS (Evolved Packed System) S-GW

P-GW

MMEEPC (SAE)

HSS

EPSE-UTRAN (LTE)

eNodeB

UE

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 19 (29)

LTE AND existing networks

RNCBSC

S-GW

BTSRBS

Core Network

E-NodeB

› How can LTE be integrated in existing networks?

GRAN

UTRAN

E-UTRAN

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 20 (29)

Which services?

› Which applications will be possible with LTE?LTE technology continues in the direction undertaken by EDGE and WCDMA/HSPA for “always connected” Mobile Broadband.

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 21 (29)

LTE Handsets› Will new terminals be necessary?

Yes, new LTE terminals will be necessary. There will be multi-mode, multi-band terminals supporting GSM and WCDMA.

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 22 (29)

VOICE over IP

› What about voice?LTE/SAE supports Voice over IP (VoIP)

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 23 (29)

Fixed network vs. LTE

› Will LTE substitute Fixed Broad Band?Today LTE/SAE and fixed broadband technologies based on fiber access or ADSL can be seen as complementary.

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 24 (29)

LTE operator Commitments

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 25 (29)

Ericsson LTE/SAE Contracts 17 networks in 12 countries

Contracts with commercial trafficContracts

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 26 (29)

An LTE test drive

E-NodeB positioned at point x.

Suburban environment (15-25m high buildings); 20 MHz channel, 2x2 MIMO

ThroughputMax: 154 MbpsMedio: 78 MbpsMin: 16 Mbps

Velocità UEMax: 45 km/hMedia: 16 km/h 54Min: 0 km/h

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 27 (29)

L10A L11AL10B Future

CandidateIndicativeReady for Contract

Add Features in Accordance with Operator Need Over Time

Add Capacity Features

in line with Traffic Growth

• LTE RAN support terminals up to the mentioned 3GPP release

• Mandatory 3GPP RAN functionality is supported

• Optional 3GPP RAN functionality is supported according to Roadmap

Stability and Robustness

O&M and Simplicity

End User Performance

Capacity Prepared Hardware

3GPP rel-8

Services

Multi Standard RBS

Q1 Q2 Q3 Q4

2010 2011Q1 Q2 Q3 Q4

L11B

3GPP rel-9 3GPP rel-10

Q4

When will LTE/SAE be available? From ericsson

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 28 (29)

What is 4G?

› IMT-Advanced: ITU requirements for 4° generation› Using “new” spectrum, i.e. Digital Dividend spectrum› But… ITU’s definition has softened

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 29 (29)

The future of lte

› LTE-Advanced (LTE-A): “Real” 4G› From 3GPP Release 10› Larger channels (at least 40 MHz) › Better performance: higher cell edge bit rates, less latency,

improved coverage› More than 1 Gb/s DL, more than 500 Mb/s UL

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 30 (29)

references

› Global mobile Suppliers Association (GSA ) http://www.gsacom.com

› Ericsson White Papers:–

“Long Term Evolution (LTE) - An Introduction” http://www.ericsson.com/news/090601_lte_introduction_254740099 _c?idx=30&categoryFilter=white_papers_1270673222_c

“Voice over LTE” http://www.ericsson.com/news/101221_wp_voice_over_lte_244218 599_c?categoryFilter=white_papers_1270673222_c

Everything You Ever Wanted to Know about LTE | © Ericsson AB 2011 | 2011-03-10 | Page 31 (29)