mobtel's migration path to 3g

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ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03

MOBTEL’s Migration Path to 3G


Radmila SimicProject Manager for Strategic Development



The Union of Serbia and Monte Negro

The Republic of Serbia :

§Territory: 88.361 sq.km

§Population: - 9,2 mil. - 7,5 mil. with 110 inh./sq.km

(without Kosovo)

§Capital: 2 mil. citizens

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Serbian market

GSM operators : 1. MOBTEL (started in 1996)

2. “Telekom Srbija” (started in 1998)

Total mobile subscribers: 3 millions

Total mobile penetration: 40%

Market share: nearly 50/50 %

Internet penetration: 6% with 47 providers → pure fixed lines

GDP per capita : 2370 USD → developing country

GDP growth : 3 %



Operator’s status

§ MOBTEL, the Company for Mobile Telecommunications “Serbia” BK-PTT,ltd. operates as a joint-venture company founded in 1994 by :

1. “BK Trade” (51% shares – private capital)2. PTT “Srbija” (49 % shares – state capital)

§ TELEKOM, operates as a joint-venture company :

1. PTT “Srbija” (80% shares – state capital)2. OTE Greece (20 % shares – private capital)

§ TELEKOM operates as a public fixed network operator as well, with monopoly until Jun, 2005.→ liberalization !

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Regulation

§ Competion market is not yet regulated.

§ New Telecommunication Law will be put into force in the first half of the next year (licenses,interconnection, transparent,

objective and no-discriminatory basis, competion, ...).

§ No official anouncement has been issued by the National Authority for the IMT-2000 license.

§ IMT-2000 frequency bands are occupied by other users.



MOBTEL GSMCoverage ofthe Republic of SerbiaCurrent Status

§ territory coverage: 70%.§ population coverage: 94%.

Need to enlarge coverage !

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Key figures for the Mobtel network

§ Standard: GSM 900/1800, Phase 2+§ Network size: 6 MSC+1 TSC, 430 BTS§ Release : R9.1§ GPRS: in the whole network for post&prepaid; roaming is testing§ EDGE: pilot§ Vendor: ERICSSON (NSS, BSS, IN, PPS, WAP, MVPN, GPRS, MMS )

Comverse (SMS, VMS)§ Transport network: MW (PDH Ericsson, SDH Marconi)§ VAS: SMS-email, MMS, Internet, Intranet, GSM Pro, etc.§ VMNO: Astra Simit ( company as service and applications provider)



Objectives of Mobtel’s Business in 2003

§ Subscribers: 1,6 millions (Post/PrePaid = 20%/80%) with 22% penetration growth

§ Service monthly usage: 150 min/postpaid customers 25 min/prepaid customers

§ SMS monthly : 90 millions messages

§ SMS in bussy hour: 230k BHSM

§ ARPU: 20 USD per postpaid customers

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date

MBit

GPRS traffic↑start

June 03 Nov 03

GPRS TRAFFIC

• 65.000 users (13.000 instant.)

• 40 KB/user• BH around 24h

Mostly are for WAP !



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Total messages sentSuccess messages sentPush messagesReceived messagesReceived E-mail

Multimedia messages in Nov. 03

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MULTIMEDIA SERVICES

§It takes time to build markets !

§40% are for video§20% are for shoping

VIVO FOR ALL

VIVO MMS

VIVO ENTERTAINMENT

VIVO PROMOTION



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bers GSM

WAP

GPRS

EDGE

UMTS

MMS

2001. 2002. 2003. 2004. 2005. 2006.

Projected Mobtel’s growth through the year 2006

Voice servicesstill main driver !

Need to create content and social motion !

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§Due to ongoing standardization work specifications for GSM were grouped into “Releases” enabled industry to proceed with the development including monstrous SW !

§Operators have been forced to implement all enhancements generally annuel introducing numerous new features and technological improvements.

§Similarly operators could expect this gradualprocess will continue, opening the path for the migration to 3G services.

Releases



§Operators should set requirements and overall strategy for clear objectives that meet market’s need.

§The debate over 3G migration procedures could be described as economical matter and users need for new applications.

§There are real concerns that wrong choice will lead operators in the developing countries to costs to highcomparing to the investment in building a network expansion and delivering innovated services to 2G customers.

Consideration

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GSM operators could concern several models to decide on 3G transition strategy :

1. Continue building out the existing GSM/GPRS network to launch 3G data servicies with the EDGE upgrading and postpone the deployment of the 3G network for the later stage.

2. Continue building out the existing GSM/GPRS network improving quality and capacity and begin in paralel deploying 3G network only in urban areas for high-end-users.

3. Immediately start to deploy 3G network nationwide for the high-end data services.

Models for 3G transition strategy



Analysing the factors involved in technology evolution decision

§ Operators are evaluating technology evolution options and determine the best strategy based upon its specific situation and many factors, including :

§ Spectrum availability§ Subscriber maturity

§ Mobile Internet services§ Competition§ Handsets§ Financial situation

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Analysing the factors involved in transition options

§ As a GSM operator in the developing country with low economy status and subscriber base still mostly voice-centric, MOBTEL has decided to upgrade its network firstly with EDGE technology for 3G service implementation.

§ EDGE is included as a complement to 3G systems path to provide 3G data services demanding by market in a cost efficient way.

To make a decision rather simple !§Gradual investments§ Simple service migration§ High network infrastructure reusability



STRATEGY

§ The MOBTEL`s strategy is to achieve high-quality GSM and GPRS network with the EDGE system upgrading nationwide and to start with 3G technology at moderate speed starting in major cities with high population at the stage when 3G frequencies will be available.

§ New 3G system requires substantial new investment, since a new Radio Access Network needs to be deployed.

§ To make reuse possibility of many of the service network components as well as other peripheral systems.

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3G STANDARDIZATION

§MOBTEL has adopted the UMTS system with W-CDMA as an option of the migration path from GSM to the 3G system and services providing high capacity link of up to 2 Mbit/s to each user.

§ Ability to coexist and interworking UMTS system with the existing GSM/GPRS/EDGE network should be the right choice to enable seamless functionality between two systems.

§The decision to evolve from GSM to a seamless GSM/GPRS/EDGE/UMTS network as a migration path is the best solution for our company and our customers.



Service development in Phases

MOBTEL as a 2,5G operator, have recognized three distinct phases in the evolution towards 3G services as the market evolves. According to Ericsson`s White Paper :

§ Phase I – voice centric§ Phase II – high speed data and mobile Internet§ Phase III – high speed multimedia and maturing mobile Internet

Choosing WCDMA deployment at moderate speed MOBTEL will remain in Phase I and Phase II for a longer period to continue with coverage and capacity expansion, and then slowly enter in Phase III.

In our case study I think 2G will be for a long time to fill the gaps for where we have not really got 3G coverage.

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GSM CS data services

9.6 kbps

96 0100 02 03 04 05 0698 9997

GPRS/EDGE 384 kbps

UMTS2 Mbps

Year

Functionality

GSM/GPRS160 kbps

Data service evolution in Mobtel network

→ Mobtel GPRS network currently support 48 kBit/s, based on QoS

3G

2,5G

2G

Long period Short period



MSC/VLR HLRSMS

GW -MSC

BSC

A’’

BTS

BTS

A SS-7

GSM/GPRS Architecture (current status)

PCUPCU

Gs Gr Gd

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Other PLMNs

GGSNGGSN

Gb Gn Gi

SGSNSGSNMobile ISP

WAPRadius

Gn

Frame Relaybackbone

ISP

Corporate

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HostRadius

HostRadius

PXMBGwNTPDNS

Gi

Gi

IP backbone

Gi

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GSM Infrastructure

MSC/VLR HLR SMSGW -MSC

BSC

A’’

BTS

BTS

A SS-7

PCUPCU

Gs Gr Gd

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Other PLMNs

GGSNGGSN

Gb Gn Gi

SGSNSGSNMobile ISP

WAPRadius

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Frame Relaybackbone

ISP

Corporate

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HostRadius

HostRadius

PXMBGwNTPDNS

Gi

Gi

IP backbone

Gi

IP Infrastructure

Frame RelayInfrastructure



GSM /EDGE

BSS

UTRAN

GSMSpecific

UMTSAddition

MSC

IN SCP

HLR/AAA

UMTS

GMSC

UMTS

GGSN

UMTS

PSTNISDN

PSTNISDNGSM

Radio Access

UMTS Radio Access Internet

Intranet

InternetIntranet

EVOLUTION to UMTS in GSM/GPRS/EDGE environment - The most cost-effective option -

GSMSpecific

UMTSAddition

2G

2G3G

3GSGSN

Service Delivery Platform

Application server Application server

Core networkAccess network

Wideband384 kbit/s wide area2 Mbit/s local area

Narrowband 64/115 kbit/s wide area384 kbit/s local area

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CONCLUSION

§ ECONOMIC ASPECTS WITH THE COSTS OF THE POSSIBLE OPTIONS.

§ MINIMIZE THE COSTS OF MANAGING EXISTING 2G AND A NEW 3G

NETWORK.

§ COEXIST AND SHARE THE SAME INFRASTRUCTURE.

§ MARKET DEVELOPMENT FOR MOBILE DATA AND INTERNET.

§ DEVELOPMENT OF IP-BASED MMS.

FAQ: Still many questions about 3G →



FAQ

§ How much will it cost ?§ How will make it work efficiently ?§ What benefits will we get from it ?§ Coexistance between GSM and UMTS ?§ Possible network architecture ?§ Interworking approaches ?§ What parts of GSM core infrastructure can be used for UMTS core network ?§ Understanding tha phasing of the core network ?§ Functionality within UMTS interfaces and UTRAN protocols ?§ Comparison of GSM/UMTS coverage ?§ Planning the UMTS radio network design ?§ What are the security of the UMTS SIM ?§ Users experience in handover or roaming between 2G and 3G network ?

We have still many questions about real life experience in implementing 2G(GSM) / 3G/UMTS seamless network:

Equipment manufacturers will need to offer complex handsets in time !

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Radmila SimicProject Manager for Strategic development

[email protected]

Thank You!

mobtel's migration path to 3g

Business

gmobtels migration path

network size

mobtel network standard

telekom srbija

ptt srbija

shares private capital

shares state capital

shares private capital2