small cells asia 2016: sue monahan keynote

Smart EnterpriseSue Monahan, CEO, Small Cell Forum

APAC drives the market scale

Asia-Pacific region biggest deployer of small cellsOver two-thirds of installed base for most of the decadeVital to drive scale into the marketCenter of technical and business case innovation

© Small Cell Forum Ltd 2016

Above: Non-residential installed base (Rethink)

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Korea: Highest level of MBB use in world

Challenge: Massive capacity

India: Dense population but limited spectrumChallenge: Extreme spectral efficiency

APAC: 45% of enterprises say poor in-building coverage has very high impact on

businessChallenge: Indoor

penetration

Singapore: Cities and whole nations go mobile-

firstChallenge: ubiquitous

coverage and reliability

APAC needs to address diverse needs


Small cells the primary way to address all the challenges

Japan and South Korea have led HetNet, densification and road to 5GElsewhere, dense population and low internet penetration create new opportunitiesSmall cells critical to India’s battle with spectrum shortage eg RJio RCOMChina’s high band TDD spectrum lends itself to small cellsAPAC enterprise deployment highest in world (Nemertes)

Some key trends


Above: Nemertes enterprise surveyBelow: RJio HetNet plan

Key drivers in APAC

Survey of T1/T2 MNOs Q116 – small cell drivers they placed in top threeVariation between regionsSE Asia:Concerned mainly with capacity and new revenue streamsAhead of world in IoT, virtualization, location, new appsS/Central Asia:Main concerns cost of data, in-building, spectrum efficiency, rural coverageLess interest in apps and WiFi integration


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3Rethink Technology Research MNO survey 2016. % of MNOs placing each driver in their top 3 in terms of business importance

Regional challenges

• Asian operators leading the way to HetNet, virtualized RAN and 5G

• Over 80% will be using non-residential small cells, advanced SON, dedicated IoT connections, and integrated LE spectrum by 2020

• But key challenges remain• SE Asia: chief concerns scalability/SON,

monetization, integration, migration• S/Central Asia: more focus on logistics of

sites and backhaul, TCO and regulatory

© Small Cell Forum Ltd 2016Rethink Technology Research MNO survey 2016. % of MNOs placing each challenge in their top 3 in terms of business importance

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Small cells have “crossed the chasm”

Numbers ramping up:• 13.3 million small cells shipped to date• $1 billion in small cell revenue in 2015• Non-residential shipments constituted 38% of

total small cells in Q4• Non-residential small cells comprised 66% of

SC revenue in 2015• In 2015, Enterprise shipments doubled• In 2015, Urban shipments grew 280%

Note: Small cell definition now includes low-power remote radio-head units


Small cells have “crossed the chasm”

Numbers ramping up:• 13.3 million small cells shipped to date• $1 billion in small cell revenue in 2015• Non-residential shipments constituted 38% of

total small cells in Q4• Non-residential small cells comprised 66% of

SC revenue in 2015• In 2015, Enterprise shipments doubled• In 2015, Urban shipments grew 280%

Outlook:• Enterprise small cell shipments will grow by

270% this year • Urban small cell shipments will grow by

150% this year

Note: Small cell definition now includes low-power remote radio-head units


Enterprise small cell shipments alone will rise to be worth $4 billion annually in 2020

Small cell revenue forecast

$1.0bn small cell

revenue 2015

Largest independent Enterprise survey

• 500 enterprises surveyed – across four major regions – North America (30% of respondents), Asia (28%), Europe (25%) and South/Central America (17%).

• 17 sectors – largest response from financial services (17.8%), professional services (14.3%), manufacturing (10.3%) and software/hi-tech (7.8%).

• Over 40% of respondents were at CxO or VP level, 27% were managers and 18% directors.

Nemertes – leading US consulting specialists in analyzing business value of emerging technologies.


• 94% said in-building cellular performance had an impact on their business, with 42% rating it between 8 and 10 in terms of seriousness, especially in pharmaceuticals and hospitality.

• Poor voice quality was cited by almost 45% of respondents as a challenge, while 36% pointed to slow data or email.

• 63% of enterprises said they would be willing to pay more for improved quality of service, despite being generally sensitive to service and device costs.

• 30% of enterprises think small cells are the best solution to their in-building mobile challenges, compared to 19% for DAS.

• 55% say they would be more willing to buy services from a mobile operator which includes small cells in its portfolio.

What verticals are telling us: Key drivers


Customer Pull

Positive Commercial Indicators

None

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Many visitors don’t know or want to sign on to Wi-Fi

Added-value service

Support social media engagement

Support mobile commerce

Make the venue a more desirable destination for customers

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Drivers to deploy small cells in public venues


Venue / Environment

Pull

• 60% of companies surveyed will deploy small cells by the end of 2017.

• 14% of companies surveyed have already deployed some small cells, while a further 46% expect to do so within two years. In addition, 23% are evaluating small cells.

• Largest number of existing deployments is in the financial services and IT/software sectors, though as a percentage of each segment, logistics/distribution and retail are the most enthusiastic deployers. In these two areas, over 20% of respondents already have small cells in use.

• More than 70% of enterprises expect to have small cells in use by the end of 2017 in logistics/distribution, retail, energy and construction.

• More than half of Asian enterprises (52%) are planning small cells by the end of 2017, closely followed by Europe on 49.6%.

Enterprise: Significant commitment to small cells


Positive Commercial Indicators

• Better communication with Enterprise IT – by some measure lack of information and education emerged as the single biggest factor inhibiting deployment.

• Sort out who pays for what – service providers challenged to come up with simpler and more compelling Enterprise packages.

• Deliver a multi-operator offering – this issue was cited by many Enterprises as a barrier to adoption – particularly important for public-facing locations.

• Device management & security with BYOD – opportunity to drive more innovation from service providers.

How can we accelerate Enterprise deployment?


How SCF is accelerating Enterprise deployments


Download at scf.io

Service Anchor+

LampSite

Service Anchor enables new revenue and business models through location based services

StarHub Singapore enhance MBB & enable smart retail services in Marina Bay Sands Hotel with Huawei LampSite & Service Anchor Huawei Smart Retail Solution http://scf.io/case/013

Cutting Edge Retail at Marina Bay SandsA Smart Retail Solution enabled by LampSite and Service Anchor

The Venue:• One of the largest luxury shopping centers in

Asia• 40 million visitors per year• Total Area： 100,000 square metres

The challenge:• Poor LTE service provided by external macrocells• Complex and costly upgrade for existing DAS system• Accurate location required for Smart Retail

The Solution:

Value

LampSite delivers high quality MBB coverage and high accuracy location information

LTE traffic up 95%

95Average 40Mbps/cell

https://www.youtube.com/watch?v=yAT0bZQRgzM

What’s next?

SCF in 2016 –leading the way to HetNet 2020


nFAPI – enabling virtualized HetNet

• SCF is moving at pace to align the industry behind its nFAPI based MAC/PHY split.

• This enables multi-vendor interoperable physical and virtual small cell network functions.

• nFAPI is central to the current processes of defining the HetNet, vRAN and 5G.

• The work inputs to 3GPP/RAN 5G study items, & aligns with ETSI NFV.

nFAPI


Evolving the TR-196 data model

• SCF is leading work with 3GPP/SA5 and Broadband Forum to standardize enhancements to small cell management data models.

• Our pioneering work in virtualized small cells, SON, service level APIs, and multiple carriers & carrier aggregation, introduce critical enhancements to the TR-196 data model, which are being driven through these collaborations.

TR-196


Enabling small cell/Wi-Fi integration

• SCF/WBA joint taskforce working together for three years.

• We’ve just published SCF178, a second collaborative paper which addresses specification-gap in the architecture, interfaces and operations of trusted WLAN – i.e., the network connecting the Wi-Fi APs to the core network.

• SCF/WBA task force now exploring architecture and opportunities of 3GPP’s LWA solutions for enterprises.

Wi-Fi integration


Delivering common API/services framework

• Encourage developers to create mobile based enterprise applications.

• Provide carriers with a broader range of value added services which can be delivered to Enterprises.

• Provide carriers with a level of confidence that applications will not disrupt their network.

• Simplify the integration process between infrastructure providers, carriers and application developers.

APIs

HetNet 2020 work items


HetNet and SON market drivers

Enterprise SON use casesUrban SON use cases

HetNet and SON architecture

X2 interoperability for HetNetsUsing SON in HetNet deployments

Location based API for HetNetsSON API

SON test casesCarrier Wi-Fi Wi-Fi CallingMulti-operator architectures LAA & LWA