huawei - making the world smaller with small cell

HUAWEI TECHNOLOGIES CO., LTD.

Making the World Smaller with Small Cell

David Zheng

Vice President， Huawei SmallCell Product Line

4st March 2015

Content 1. Industry & Market Trend 2. Scenario & Solution 3. Successful Cases

Changing of Service & Behavior Leads to Traffic Pulse

From voice era to data era: 4000 times traffic growth per unit

Benchmark throughput [Kbps]

128 256

512 512 512

2000

300 384

4000

1000

Mus

ic

VOIP

M-b

log

SNS

WW

W

Gam

ing

240P

vid

eo

480P

vid

eo

360P

vid

eo

Clo

ud/ F

TP

Bad Good Excellent

720p 2.4Mbps

1080p 5.4Mbps

2160p 21.6Mbps

2160p 10.3Mbps (H.265)

12kbps->2.4M bps <5% online ->nearly 100% online 200X 20X

0

15

30

45 0hr

1hr 2hr

3hr

4hr

5hr

6hr

7hr

8hr

9hr 10hr

11hr 12hr

13hr 14hr

15hr

16hr

17hr

18hr

19hr

20hr

21hr 22hr

23hr

Airport

Hospital

Hotel

Macro

Mall

Subway

Office

Other

School

Active User number

Voice traffic ->Video traffic : 200X

Synchronous voice ->Asynchronous data: 20X

Micro Can Improve User Experience Wherever It is Needed On Demand Enterprise Digitization

Macro sites only is not enough for coverage in LTE era

Micro is the key to hotspot and week coverage spot in urban area

Macro Capacity

Traffic Demand Capacity /Traffic

Micro is needed for quick and cost effective deployment to guarantee user experience

Hotspot

Weak coverage spot

Coverage Massive weak coverage points(red) after 10,000+ LTE macro sites deployed in Shenzhen City

Shenzhen, China

Indoor Coverage Digitization: Capture Traffic Pulse to Guarantee Experience

Indoor coverage solution need to be redefined

On Demand Enterprise Digitization

Capacity of DAS

n  Capacity of traditional analog coverage solution is fixed

n  Capacity demand at peak time is suppressed

Capacity demand

Peak time Peak time

Indo

or 12400 stadium

1665* airport

2250 train station

49400 shopping mall

…… hospital/campus..

Hot zone with high traffic need to be on load

* Data from Google and Wikipedia

DAS cannot capture the traffic pulse

Enterprise Mobilization: Application Move from PC to Smart Phone

BYOD Drives Enterprise Mobile Service Market Growing Quickly

With the development of smartphone, BYOD is becoming the main work style

More and more employees Prefer to BYOD for work


Smartphone

82% 82% 80%

74%

50%

55%

60%

65%

70%

75%

80%

85%

90%

choose own smartphone for work choose own tablet for work

adoption among director-level and above employees

adoption among below director-level employees

Increase ROI by Increasing Revenue and Decreasing TCO

Revenue - TCO

TCO ROI =

Outdoor On Demand Network with Small Cell

Revenue - TCO

TCO ROI =

Revenue = Traffic + New Service TCO = Site + Backhaul + BOX+ Others


21%

15% 5% 35%

15% 9%

TCO Analysis of Micro BTS in Europe

Site BOX NRO Backhaul Maintenance Others

“Site Crowd Sourcing” Reducing Site Cost Enables Scaled Deployment On Demand Enterprise Digitization

Higher Coverage & Capacity efficiency • Multi-RAT & multi-band box for site & backhaul saving • Improving ROI with higher power transmission for larger coverage • Powerful baseband for higher capacity

Hot

-Zon

e &

Not

Spo

t Cov

erag

e

Hot

-Spo

t Cov

erag

e

Higher Capacity • Higher Integration & heat dissipation for deployment in confined space • Lower power transmission for limited coverage • Optimizing for wired backhaul

Lamp pole，Power pole… Bus Stop，AD Box, Phone Booths，MFC …

l Development of small cell fast, where P2P fiber/PON is rich

Relay is the appropriate wireless backhaul in early stage l No dedicated spectrum for backhaul l Low installation cost l Low volume and power consumption

Wireless Backhaul Reduce Transmission Cost Accelerates Deployment

Wired transmission on-site Wireless transmission on-site

smallcell �

smallcell �

smallcell �

Relay �

Relay �

Relay �

F1

F1

F1

F1/F2

F1/F2

F1/F2


Economical wireless backhaul: Relay

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Europe China Japan & Korea

North America

APAC

Proportion of Fiber On-site (Macro)

Source: Huawei Survey

Revenue - TCO

TCO ROI =



Digitization Releases Indoor Traffic Demand


LampSite Captures Traffic in Indoor Hot Zone: Flexible Cell Split for Traffic Pulse and Smooth Evolution

Capacity evolution management

Cell Split

Cell 4

Cell 3

Cell 2

Cell 1

Cell 5

Cell 6 BBU

Cell 1

Cell 2

Cell 3

BBU

ü  Real-time tide traffic monitoring ü  Dynamic capacity adjustment ü  Dynamic share of baseband resource ü  Reduce initial investment

PCell1

PCell3 PCell2

PCell 4

Dinning Area

Office Area

PCell1

PCell3 PCell2

PCell 4

Dinning Area

Office Area

Working Hours

Dinner Hours

Automatic Tide-effect Traffic Management


Pico BTS Captures Traffic in Indoor Hot Spot: Fast Fill “Capacity Not spot” Left by High Band LTE

12kbps XMbps

Low band coverage in voice time

High band coverage in MBB time

Gap 1: Higher Traffic Requirement at Cell Edge

Gap 2: Smaller coverage with higher frequency band

Poor deep indoor coverage with Macro due to high band LTE

“Capacity Not spot” due to the gaps between requirement and coverage

New Service Helps Carrier Entry Enterprise Market

Revenue - TCO

TCO ROI =



Enterprise Service based on Digitized Cellular Network

Service Anchor

3rd APP Server

API

Wi-Fi AP Pico LampSite Wi-Fi AP Fixed Line

Local voice & data service

BYOD expansion from fixed IT System to cellular network

Enterprise service moving to cellular network for low cost and new value


A Win-Win Business Model Ripening Industry Chain

Operator Enterprise Subscriber App Supplier

Telecom Vendor

APP

Wireless Solution

Host & Sell system Sell the service or product

Pay for Value-added service

Equipment fees

App fees Pay for service or product


New Service

Site Cost

Case1: Pole Acquisition for Scaled Micro Deployment

“Mobile operator T uses small cell to break the frequency resource limita8on …

60% Micro / macro in 2013 Number of Micro will Surpass Macro in 2014

2012 2013 2014 2015 2016 2017

Volume

Macro

Micro

l  10,000+ pole acquisiBon for Micro deployment l  U/L, Co-‐carrier deployment

92.22 69.38

53.18

before after macro only Hetnet macro Hetnet micro

(Gbit)

Traffic on load 33%

•  Onload 33% traffic •  Offload 43% for macro •  Reduce congesBon risk

Co-Channel / continuously deployment

Page 19


33%

ROI<2Years

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0 Daily Traffic DL+UL(GB)

W/O. LampSite Avg. 18.8GB

W. LampSite: Avg. 64.4GB

340%

Railway Station, Zhengzhou City China，China Unicom

Case2 : Capacity is not Bottleneck Anymore in Indoor Hot zone On Demand Enterprise Digitization

Case 3：Shanghai Service Live Demo --Navigation

Map View Video View

RHUB

BBU

pRRU pRRU pRRU

RTMap Application

User Cell Phone

Page 21


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