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ASIA-PACIFIC TELECOMMUNITY The 2nd Meeting of the APT Wireless Forum Document

AWF- 2/37(Rev.2) 5 8 September 2005, Shenzhen, PR China

5 September 2005

HUAWEI UMTS1800 SOLUTIONS

by

Huawei Technologies, PR China

11Huawei confidential

HUAWEI

Huawei UMTS1800 Solutions

Victor Hu : UMTS Marketing

2Huawei confidential

HUAWEI

Introduction of UMTS1800

UMTS1800 Deployment Strategies

Co-existence of UMTS1800 and UMTS2100

Comparison between UMTS1800 and EDGE

AWF-3/37(Rev.2)

Page 1 of 16

23Huawei confidential

HUAWEIGlobal GSM Frequency

European Countries, most Asian countries and some African countrEuropean Countries, most Asian countries and some African countries ies have GSM1800 frequencyhave GSM1800 frequency

By Jan. 2004, there are 230 operators who have GSM1800 spectrum.

4Huawei confidential

HUAWEI1800 spectrum is also IMT2000 operation band

1710-1785

1920-1980

1805-1880

2110-2170

Core Band

Extended Band

2x60MHz

2x75MHz

890-915

935-960

Extended Band 2x25MHz

1800 spectrum is defined as operation Band II in 3GPP.1800 spectrum is defined as operation Band II in 3GPP.

AWF-3/37(Rev.2)

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35Huawei confidential

HUAWEIWhy UMTS1800?

Existing experienced GSM operators using 1800M prefer UMTS to CDMA2000

Some operators do not obtain ITU core spectrum(2100M)

Some operators already having UMTS2100M band want to expand existing 3G network

The operators in Thailand, Indonesia have had the requirements on UMTS1800

6Huawei confidential

HUAWEIBenefits from UMTS1800

No necessary for new IMT2000 core-band Expensive or not available

Sharing spectrum between GSM and UMTS Easier to allocate frequencies between 2G and 3G, when GSM

subscribers migrate from 2G to 3G

Easier to share indoor DAS with GSM1800

Better coverage UMTS1800 have better coverage than GSM1800, which means

UMTS1800 can achieve more than 140% coverage area of GSM1800

AWF-3/37(Rev.2)

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47Huawei confidential

HUAWEIHuawei UMTS1800 Roadmap

UMTS 1800

2004 Q3

System

UMTS 1800 PCMCIA

2004 Q4

Terminal

2006 Q1

p Huawei has a end to end solution for UMTS1800, and is ready to launch commercial systems now

p Huawei partners with other vendors to support UMTS1800 industrial chainp UMTS1800 can be promoted to 14.4Mbps by simply inserting a high-speed channel

card in Node B( the latest version NodeB is hardware ready )

Up to 384Kbps

HSDPA 1800

2005 Q4

Up to 14.4Mbps

HSDPA 1800 PCMCIA

8Huawei confidential

HUAWEIHuawei UMTS PCMCIA Card

EW630 combo card

Available in December, 2004 to support UMTS1800

AWF-3/37(Rev.2)

Page 4 of 16

59Huawei confidential

HUAWEI

Introduction of UMTS1800

UMTS1800 Deployment Strategies

Co-existence of UMTS1800 and UMTS2100

Comparison between UMTS1800 and EDGE

10Huawei confidential

HUAWEIKey issues in UMTS1800 deployment

To be a market leader with new technologies Data rate: up to 384K-14M bps with fully mobility

Maximum sharing with UMTS2100 100% sharing core network and RNC with UMTS2100

Co-cabinet with UMTS2100 NodeB

Global roaming with multi-band multi-mode terminals

Coverage as required, decrease the cost of coverage

AWF-3/37(Rev.2)

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611Huawei confidential

HUAWEIDeployment strategies 1 - reuse 2G CN

UMTS1800 networkGSM network

BTSBTSBTSBTSBTSBTS

BSCBSCBSC PCUPCUPCU

NodeB

NodeB

New installation of UMTS1800 RAN

2G/3G MSC

2G/3G 2G/3G MSCMSC

2G GMSC2G GMSC2G GMSC

2G/3G SGSNUpgrade2G/3G SGSN2G/3G SGSNUpgradeUpgrade

2G GGSN2G GGSN2G GGSN

GPRSGPRS

2G HLRupgrade

2G HLR2G HLRupgradeupgrade 2G CG2G CG2G CG

OAMsoftware upgrade

OAMOAMsoftware upgradesoftware upgrade

BSSBSSBSS

Reuse 2G core network

upgradeupgradeupgrade

RNCRNCRNC

12Huawei confidential

HUAWEIDeployment strategies 2 - new UMTS CN

UMTS1800 networkGSM network

RNCRNCRNC

BTSBTSBTSBTSBTSBTS

BSCBSCBSC PCUPCUPCU

NodeB

NodeB

New installation of UMTS1800 RAN

2G MSC2G MSC2G MSC

2G GMSC2G GMSC2G GMSC 2G GGSN2G GGSN2G GGSN

2G CG2G CG2G CG

OAM(software upgrading)

OAMOAM(software upgrading)(software upgrading)

BSS(software

upgrading)

BSSBSS(software (software

upgrading)upgrading)

New installation of UMTS CN2G HLR2G HLR2G HLR

3G GGSN3G GGSN3G GGSN

2G SGSN2G SGSN2G SGSN

3G CG3G CG3G CG

3G SGSN3G SGSN3G SGSN

3G HLR3G HLR3G HLR

3G MSC3G MSC3G MSC

AWF-3/37(Rev.2)

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713Huawei confidential

HUAWEIInteroperation with GSM Networks

Cell reselection from UMTS to GSM networks Via inter system cell reselection : No upgrade for GSM networks

Cell reselection from GSM to UMTS networks Inter system cell reselection: GSM BSS need to be upgraded to support SI

2quater ( broadcast neighbor cell information )

PLMN/Access Technology reselection: No upgrade for GSM networks

UMTS subscribers camp on UMTS networks in higher priority

UMTS subscribers return to UMTS networks via periodical reselection

CS handover from UMTS ->GSM

No upgrade needed

CS handover from GSM->UMTS (not recommended)

Upgrade of GSM is needed

CS handover from GSM to UMTS is not necessary

14Huawei confidential

HUAWEIGSM1800/UMTS1800 co-existence

In worst case(1cell radius away from GSM), with around 400k of guard band (3MHz), UMTS has about 5% capacity loss

When GSM1800/UMTS 1800 co-siting, No additional guardband is needed.

2.6M 4.4M 5M

macro micro

GSM UMTS(UMTS)1800

3M 4.4M 5M

macro micro

GSM UMTS(UMTS)1800

AWF-3/37(Rev.2)

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815Huawei confidential

HUAWEISharing antenna with GSM1800/UMTS1800

GSM BTS

UMTS Node B

TMA

Combiner

Cable, TMA and antenna could be shared

16Huawei confidential

HUAWEI

Introduction of UMTS1800

UMTS1800 Deployment Strategies

Co-existence of UMTS1800 and UMTS2100

Comparison between UMTS1800 and EDGE

AWF-3/37(Rev.2)

Page 8 of 16

917Huawei confidential

HUAWEICapability of 1800/2100 converged network

Share same RNC/CN, same RRM and same service capability

BTS3812

RNCRNCRNC

NodeB

NodeB

Iub

Support 2100/1800 MHz in one cabinet, maximum configuration up to S2/2/2 (2100MHz)+S2/2/21800MHz

1.8G

2.1G

18Huawei confidential

HUAWEI1800M/2100M NodeB Co-cabinet Solution

NodeB

NodeB

One cabinet solution Up to 3*2 configuration for each

frequency If share the antenna and RF

cable, outer combiner is needed

1800M AFU

1800M TRU

All the baseband modules including power, transmission, Channel cards are completely shared by 1800M and 2100M.

2100M AFU

2100M TRU

AWF-3/37(Rev.2)

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10

19Huawei confidential

HUAWEIConverged 1800/2100 network

f1

f2

f3

2100

1800

Cell-reselectionHard-handover

Cell-reselectionHard-handover

Each CDMA(WCDMA) cell has its own pilot and common channel, the reselection and handover strategies between different frequencies in different bands or the same band is just the same.

1800MHz can be treated as frequency extension of 2100MHz in one band

20Huawei confidential

HUAWEICompared with GSM900/1800 dual-band network

GSM 1800

GSM 900

10dB coverage different

UMTS1800

UMTS2100

Only 1dB different

1800 RF

900 RF

1800 BB

900 BB

GSM 900/1800 are relatively independent

1800 RF

2100 RF

CommonBB

Standaloneantenna

StandaloneRF

StandaloneBaseband

GSM UMTS1800/2100

StandaloneBTS StandaloneRF

Commonantenna

Commonbaseband

UMTS1800/2100 are shared

CommonNodeB

AWF-3/37(Rev.2)

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11

21Huawei confidential

HUAWEIExpansion from UMTS1800 to UMTS2100

1800/2100 have almost the same radio propagation characteristics

No change in network planning

The cost of upgrading from UMTS1800 to 1800/2100 network is just the same as expansion, not to build a new overlapped network

Only need to add some RF module

22Huawei confidential

HUAWEI

Introduction of UMTS1800

UMTS1800 Deployment Strategies

Co-existence of UMTS1800 and UMTS2100

Comparison between UMTS1800 and EDGE

AWF-3/37(Rev.2)

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12

23Huawei confidential

HUAWEIEDGE vs. UMTS1800

GPRS/EDGE vs. UMTS1800/HS-UMTS1800

0

2000

4000

6000

8000

10000

12000

14000

16000

GPRS EDGE UMTS1800 HSDPA

0%

20%

40%

60%

80%

100%

120%

Max throughput perCarrier(Kbps)

Averager throughputper Carrier(Kbps)

Spectrum cost perbit

equipment cost perbit

UMTS has great advantages in cost and service capability UMTS has great advantages in cost and service capability

24Huawei confidential

HUAWEICase study

GSM networks of Shenzhen China The capacity of network is 6 Million subs

The number of GSM site is 1200, 600 of them are in Special Zone.

The number of BTS is 1797.

40% BTS are in dense urban area.

Assumption

Only dense urban area in Special Zone is considered.

AWF-3/37(Rev.2)

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25Huawei confidential

HUAWEIResult of Radio Network Planning

UMTS1800

About 54 sites needed for 98% coverage probability

EDGE

Upgrade all the BTS in the area

200 sites and 600 cells are involved in

UMTS 1800 EDGE

In dense urban area, the cells of GSM networks were over-split because of capacity requirement.

Too many BTSs need to be upgraded for EDGE.

GSM/GPRS

26Huawei confidential

HUAWEI

Comparison on the Equipment Cost of UMTS1800 and EDGE

U MT S E D G E H S D P A

N u m be r o f s i t e 54 200 54

N u m be r o f T R X 162 600 162

B u s y h o u r t h r o u g hp u t p er T R X ( kb p s ) 1,000 200 3,000

T o t al b u s y h o u r th r o u g hp u t ( M bp s ) 162 120 486

C o s t p e r TR X ( U S D) 20,000 12,000 24,000

T o t al c o s t ( 1 0 0 0 US D ) 3,240 7,200 3,888

L i f e c y c l e ( y e a r ) 10 5 10

A v e ra g e d ep r e c i a ti o n p er y e a r 10% 20% 10%

A v e ra g e d ep r e c i a ti o n o n c o s t( 1 0 00 U S D )

32 4 1 4 4 0 3 8 8 . 8

A v e ra g e c os t p e r y e a r an d M b p s( 1 0 00 U S D )

2 1 2 0 . 8

020406080

100120140160

WCDMA EDGE

00.20.40.60.811.21.4

Average depreciateon cost(10,000USD)

Average cost peryear and Mbps(10,000USD)

The cost of UMTS 1800 is much lower than EDGE. The capacity of UMTS 1800 is much higher than EDGE.

AWF-3/37(Rev.2)

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27Huawei confidential

HUAWEICost on others

Cost on site and other auxiliary equipments( CAPEX ) UMTS: 20,000 USD per site on antenna, air conditioner, power supply

etc.

EDGE: 8,000 USD per site on air conditioner and power supply

Cost on equipment room and service personnel( OPEX ) Rent of equipment room: sharing with GSM system

Service personnel: 4 persons for UMTS

Cost on service personnel: 20,000USD/person*year

Power supply: 1600W/UMTS NodeB; 750W/EDGE BTS

Air conditioner: 800W/UMTS site; 400W/EDGE site

Transport network: 2E1(500USD)/UMTS site; 0.5E1(125USD)/EDGE site

28Huawei confidential

HUAWEIAssumption on Revenue

Assumptions on life cycle WCDMA: 10 years EDGE: 5 years

Revenue on data service 150RMB / 500M Bytes

Utilization rates 15% for UMTS1800 ( Suppose that the subscribers in the

initial phase is not much) 15% for EDGE ( Suppose that the development of EDGE is

affected by UMTS)

AWF-3/37(Rev.2)

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29Huawei confidential

HUAWEI

Comparison of Revenue on UMTS1800 and EDGE

UMTS1800 EDGECost on equipment(1000 USD) 4,050.00 9,000.00Cost on site (1000USD) 1,080.00 1,600.00CAPEX (1000USD) 5,130.00 10,600.00Average CAPEX per year (1000USD) 513.00 2,120.00

Cost on service personnels(1000USD) 270.00 0.00Cost on power supply(1000USD) 104.33 185.16Cost on transport (1000USD) 324.00 300.00Cost on management (1000USD) 300.00 300.00Cost on marketing (1000USD) 600.00 500.00OPEX per year (1000USD) 1,598.33 1,285.16

Average revenue per year(1000USD) 3,127.38 2,573.98Gross profit per year(1000USD) 1016.05 -831.18Gross profit rate 32% -32%Total gross profit(1000USD) 10,160.52 -4,155.89

Short life cycle makes EDGE very difficult to profit. UMTS has great potential of profiting.

30Huawei confidential

HUAWEI

Summary of Comparison on UMTS 1800 and EDGE

The capacity of UMTS 1800 on high rate data service is better than EDGE

The spectrum efficiency of UMTS 1800 is higher than EDGE

The life cycle of UMTS 1800 is longer than EDGE

UMTS1800 profits more and quickly than EDGE

Deploying UMTS1800 is a better choice for the current GSM operator to develop data service.

AWF-3/37(Rev.2)

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HUAWEI

Thank you!

AWF-3/37(Rev.2)

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