ASIA-PACIFIC TELECOMMUNITY

The 2nd Meeting of the APT Wireless Forum 5 8 September 2005, Shenzhen, PR China

Document AWF- 2/37(Rev.2) 5 September 2005

HUAWEI UMTS1800 SOLUTIONS

by

Huawei Technologies, PR China

Contact:

Tel: Fax: Email:

AWF-3/37(Rev.2)

HUAWEI

Huawei UMTS1800 Solutions

Victor Hu : UMTS Marketing

Huawei confidential

HUAWEI

Introduction of UMTS1800 UMTS1800 Deployment Strategies Co-existence of UMTS1800 and UMTS2100 Comparison between UMTS1800 and EDGE

Huawei confidential

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Global GSM Frequency

European Countries, most Asian countries and some African countries countries have GSM1800 frequency
By Jan. 2004, there are 230 operators who have GSM1800 spectrum. Huawei confidential

HUAWEI

1800 spectrum is also IMT2000 operation band

1920-1980 Core Band 2110-2170 2x60MHz

1710-1785 Extended Band 1805-1880

2x75MHz

890-915 Extended Band 935-960 2x25MHz

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

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Why 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

Huawei confidential

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Benefits 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

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Huawei UMTS1800 Roadmap

System UMTS 1800
Up to 384Kbps
2004 Q3 2005 Q4

HSDPA 1800
Up to 14.4Mbps

Terminal

UMTS 1800 PCMCIA

HSDPA 1800 PCMCIA

2004 Q4

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 chain p 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 )

Huawei confidential

HUAWEI

Huawei UMTS PCMCIA Card

EW630 combo card

Available in December, 2004 to support UMTS1800

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Introduction of UMTS1800 UMTS1800 Deployment Strategies Co-existence of UMTS1800 and UMTS2100 Comparison between UMTS1800 and EDGE

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Key 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

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Deployment strategies 1 - reuse 2G CN

BSS

GPRS GPRS

OAM software upgrade

2G GMSC 2G HLR upgrade 2G/3G MSC upgrade 2G CG

2G GGSN

Reuse 2G core network

2G/3G SGSN Upgrade

BSC

PCU

RNC

New installation of UMTS1800 RAN

BTS

BTS

NodeB NodeB

GSM network Huawei confidential

UMTS1800 network

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Deployment strategies 2 - new UMTS CN

BSS (software upgrading) OAM (software upgrading) 2G GGSN 2G HLR 2G CG 2G SGSN 3G SGSN 3G GGSN 3G CG 3G MSC 3G HLR

2G GMSC

New installation of UMTS CN

2G MSC

BSC

PCU

RNC

New installation of UMTS1800 RAN

BTS

BTS

NodeB NodeB

GSM network Huawei confidential

UMTS1800 network

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Interoperation with GSM Networks

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

Cell reselection from GSM to UMTS networks

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HUAWEI

GSM1800/UMTS1800 co-existence
macro micro

GSM

2.6M

4.4M

5M

UMTS(UMTS)1800

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

macro micro

GSM

3M

4.4M

5M

UMTS(UMTS)1800

In worst case(1cell radius away from GSM), with around 400k of guard band (3MHz), UMTS has about 5% capacity loss
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Sharing antenna with GSM1800/UMTS1800

GSM BTS

Combiner

TMA

UMTS Node B

Cable, TMA and antenna could be shared

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HUAWEI

Introduction of UMTS1800 UMTS1800 Deployment Strategies Co-existence of UMTS1800 and UMTS2100 Comparison between UMTS1800 and EDGE

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Capability of 1800/2100 converged network

RNC

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

Iub
NodeB NodeB

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

1.8G

2.1G

BTS3812

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HUAWEI

1800M/2100M NodeB Co-cabinet Solution

One cabinet solution Up to 3*2 configuration for each frequency If share the antenna and RF cable, outer combiner is needed

1800M AFU

2100M AFU 2100M TRU

1800M TRU

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

N o d e B

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Converged 1800/2100 network

2100 f1 f2 Cell-reselection Hard-handover Cell-reselection Hard-handover

1800

f3

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

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.

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HUAWEI

Compared with GSM900/1800 dual-band network

GSM UMTS1800 UMTS1800/2100

GSM 1800 GSM 900

UMTS2100 10dB coverage different Only 1dB different Common BB

Common NodeB Common Standalone baseband antenna

1800 BB 900 BB
Standalone Standalone BTS Baseband

1800 RF 900 RF
Standalone RF

1800 RF 2100 RF
Standalone RF Common antenna

GSM 900/1800 are relatively independent

UMTS1800/2100 are shared

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Expansion 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

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Introduction of UMTS1800 UMTS1800 Deployment Strategies Co-existence of UMTS1800 and UMTS2100 Comparison between UMTS1800 and EDGE

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EDGE vs. UMTS1800

GPRS/EDGE vs. UMTS1800/HS-UMTS1800 16000 14000 12000 10000 8000 6000 4000 2000 0 20% 0% 80% 60% 40% 120% 100% Max throughput per Carrier(Kbps) Averager throughput per Carrier(Kbps) Spectrum cost per bit equipment cost per bit

GPRS

EDGE

UMTS1800

HSDPA

UMTS has great advantages in cost and service capability

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HUAWEI

Case 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.

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Result 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

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.

UMTS 1800 Huawei confidential

EDGE

GSM/GPRS

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HUAWEI

Comparison on the Equipment Cost of UMTS1800 and EDGE

160 140 120 100 80 60 40 20 0

The cost of UMTS 1800 is much lower than EDGE. The capacity of UMTS 1800 is much higher than EDGE.
1.4 1.2 1 0.8 0.6 0.4 0.2 0 WCDMA EDGE Average depreciate on cost (10,000USD) Average cost per year and Mbps (10,000USD)

N u m be r o f s i t e N u m be r o f T R X 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 ) T o t al b u s y h o u r th r o u g hp u t ( M bp s ) C o s t p e r TR X ( U S D) T o t al c o s t ( 1 0 0 0 US D ) Life cycle (year) A v e ra g e d ep r e c i a ti o n p er y e a r 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 ) 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 )

U MT S 54 162 1,000 162 20,000 3,240 10 10% 32 4 2

EDGE 200 600 200 120 12,000 7,200 5 20% 1440 12

HSDPA 54 162 3,000 486 24,000 3,888 10 10% 388.8 0.8

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Cost 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

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Assumption 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)

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Comparison of Revenue on UMTS1800 and EDGE

Cost on equipment(1000 USD) Cost on site (1000USD) CAPEX (1000USD) Average CAPEX per year (1000USD) Cost on service personnels(1000USD) Cost on power supply(1000USD) Cost on transport (1000USD) Cost on management (1000USD) Cost on marketing (1000USD) OPEX per year (1000USD) Average revenue per year(1000USD) Gross profit per year(1000USD) Gross profit rate Total gross profit(1000USD) UMTS1800 EDGE 4,050.00 9,000.00 1,080.00 1,600.00 5,130.00 10,600.00 513.00 2,120.00 270.00 104.33 324.00 300.00 600.00 1,598.33 3,127.38 1016.05 32% 10,160.52 0.00 185.16 300.00 300.00 500.00 1,285.16 2,573.98 -831.18 -32% -4,155.89

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

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HUAWEI

Summary of Comparison on UMTS 1800 and EDGE

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

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

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Thank you!

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