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Motorolas UTRAN Sharing Feature

Motorolas UTRAN Sharing Feature

Introduction

A key enabler for mobile broadband is the wide availability of HSxPA networks, which offer clear benefits in terms of both subscriber experience and reduced cost per bit of data delivered [compared to R99 UMTS]. HSxPA is recognized as the most natural and almost risk-free upgrade path for UMTS networks in terms of the benefits it brings over its R99 UMTS predecessor. However, the challenges of network roll-out, ongoing cost of service, acquiring and then retaining subscribers can lead service providers to taking alternative approaches to their next generation business models.
The initial rollouts of UMTS were challenging and costly, not least because the technology was new and of course there was no direct subscriber revenue to offset any of the costs. A few years on, however, and the widespread availability of HSDPA networks and mobile devices coupled with the improvements this capability brings to the subscriber experience has led to UMTS/HSDPA subscriber numbers increasing at a rate in excess of five million per month [GSA.com, March 2007].

However, worldwide many networks are yet to be deployed, in particular those in emerging markets. Similarly most networks are built out based on teledensity (providing coverage for larger populations per square kilometer such as towns and cities) and now service providers are, for licensing reasons, required to provide coverage for rural environments. In both cases, the return on investment is likely to be a challenge. Where this is the case, sound business practices prevail, meaning that any investment is scrutinized and carefully managed. However, where UMTS/ HSxPA coverage is rolled-out as a requirement of the license conditions the service provider has few options. Motorola is renowned for its innovative UMTS/ HSxPA solutions aimed at enabling service providers to relatively easily and cost-effectively expand their networks, not only in monetary terms but also in the ease of siting and site re-use. This is best illustrated by Motorolas Zero Foot Print solution, which is a very compact macro solution that allows easy and rapid siting of UMTS/HSxPA capability in GSM or other existing sites. Motorola has various solutions that will minimize and help manage investment in these situations. This paper outlines one of those solutions, Motorolas UTRAN Sharing feature, which is available now.

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A High Profile Example

Vodafone and Orange to share UMTS networks in the UK

Thursday 8 February 2007 Vodafone Group and Orange announced a plan to combine their UMTS mobile networks in the UK in a bid to cut costs and increase coverage, the first deal of its kind by UK service providers. Understandably the companies expect to reduce capital and operating expenditure, in particular arising from the reduced number of sites. From a different viewpoint, sharing networks also means fewer mobile phone masts, easing site acquisition issues, benefiting the environment and overcoming some of the planning constraints associated with new sites. Additionally, Vodafone said the deal would improve mobile coverage for some 30 million customers, especially in rural areas, and lead to the faster roll-out of high-speed services and products. This is nothing new. In November 2006, the two companies entered into a similar network-sharing arrangement in rural Spain, covering the sharing of some 1000 UMTS sites by 2007 in towns with , populations of less than 25,000; the number of shared sites is set to rise to 5,000 over the next three years.

The Take-away
The important take-away from such agreements is that the network sharing has, to date at least, only occurred in sparsely populated regions where teledensity is very low and the business case for UMTS/HSxPA deployment is weak. The reason for providing coverage in rural areas is to meet license conditions not for profitability. It is worth noting that, without license conditions specifying that networks must provision for population coverage, many semi-rural and rural areas would not have any UMTS/HSxPA coverage at all. The benefit that network sharing brings is that the burden of providing coverage to such areas can effectively be shared.

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Network Sharing: The Basics and the Benefits

Currently most service providers support both GSM within the 900/1800MHz spectrum and UMTS/ HSxPA within the 2100MHz spectrum. This may change in the future as interest is increasing in the potential re-use of the dominant 900MHz GSM band for UMTS/HSxPA with a view to improving coverage and building penetration capabilities. In the meantime, telecom equipment vendors are cognisant of the need to streamline and combine their product portfolios by offering hardware (Core Network, HLR etc.) and software platforms (O&M/ NMC) to support both the GSM and UMTS/HSxPA under a common platform. The combined platforms offer increased cost savings by reducing logistics, inventory management, support, maintenance and training, etc. Most synergies deliver benefits. Developing this from the use of common platforms across technologies into common platforms between service providers is the next step in the enabling widespread and cost effective coverage. From the service providers perspective, the basic goals and reasons for network sharing are to: 1. Fulfill regulatory / licensing requirements for coverage 2. Reduce network CAPEX for lower traffic environments (lower carrier costs) 3. Reduce transmission costs and OPEX. 3GPP Standards and individual country regulatory conditions commonly allow for network sharing of the RAN access technology but physical separation at the HLR and Core/Switch. In reality, the service provider has a number of ways by which to realize network sharing. These are: 1. UTRAN Sharing the subject of this whitepaper. The 3GPP Standards Release 6 UTRAN Sharing feature phase 1, maximizes radio capacity and enables multiple service providers to effectively share the UTRAN (Node B and RNC components) with the RNC(s) routing calls to up to four different service providers Core Networks 2. Site sharing service providers typically share the site, mast and ancillaries but each service provider deploys their own Node-B equipment. Benefits here are cost savings due to reduced site acquisition and build-out costs, and the fact that the individual service providers retain control over their respective Node Bs

3. Common shared networks here service providers build and operate a common UMTS/ HSxPA network comprising of the UTRAN, SGSN, VLR and MSC. However the GGSN, HLR, Gateway MSC, Billing systems and subscriber databases, etc., must all be kept separate. The main advantage of this arrangement is that the service providers can share a single frequency/license where capacity demands are low thereby enabling cost effective delivery of UMTS/HSxPA services 4. Geographically split networks in this scenario each service provider builds and operates its own network in different geographical areas; coverage is provided and the continuity of service achieved by roaming agreements between the various service providers. 3GPP Standards allows for up to five service providers to operate in this manner. 5. Mobile Virtual Network Operators (MVNO) provide a mobile service but do not have any spectrum of their own. An MVNO uses the network infrastructure (to varying degrees) of a service provider that has spectrum and infrastructure.

enabling widespread and ... cost-effective coverage

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Motorolas UMTS/HSxpa UTraN Sharing Feature

Motorolas UTRAN sharing feature, UTRAN sharing connected-mode has been available since the , release of Motorolas industry leading UMTS/HSxPA portfolio and software release USR4. Fulfilling the 3GPP R5 requirements, this feature enables UTRAN sharing between different service providers for users in connected-mode (users in idle-mode are managed by the core network and sharing agreements for roaming). In connectedmode, mobility is handled by the UTRAN as it does not have the necessary information, such as roaming agreements, to provide a consistent access restriction handling. Motorolas USR6 sees the launch of active UTRAN sharing. Active sharing, as opposed to passive sharing, involves sharing Node B and RNC base-band and processing capabilities thereby reducing CAPEX. This feature allows for all UTRAN elements to be physically shared. By soft-splitting a physical UTRAN into a different logical UTRAN, multiple service providers are able to cover the same area with their own frequency with a single physical UTRAN. Each service provider deploys its own frequency including its own Mobile Network Code (MNC) and each service provider has individually assigned cells. The RNC routes the mobile according to the cell or MNC and MCC derived from the IMSI and the Network Resource Identifier (NRI) derived form TMSI/P-TMSI, when Iu-Flex is used.
Figure 1 - UTraN Sharing solution architecture

Motorolas Horizon 3G-n macro platforms support up to 12 carriers (4C3S). This capability allows the hardware to readily support up to two service providers utilizing their two frequencies over three sectors; alternatively it could support up to four service providers operating on a single frequency. Each service provider is independently able to deploy different features by setting parameters at a cell level to the extent that different performance algorithms and services may be operated by the service provider by setting the appropriate cell parameters. The solution also comprises a shared Master OSS, which manages common O&M functions such as software upgrades and system configuration etc. Furthermore, it provides a standard northbound interface to each service providers NMS system and independent access to cell-level performance management and fault management details, thus allowing maximum flexibility. A second phase of UTRAN sharing is introduced in USR7 when additional functionality is enabled. Here the UTRAN sharing functions are physical shared but logically split into two UTRAN for two different service providers. The feature allows carriers to be dedicated to the different service providers, each having their own PLMN, fault management, performance management and configuration management capabilities, and moreover retains the ability to deploy features unique to each network.

Operator A OSS ltf-N

Operator A OSS

Operator A CN

Operator B CN

lu interface

RNC lub interface

Shared Master OSS

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Shared RAN

Macro Node B

RRU

The Cost of Site acquisition and Build

Table 1, below, shows typical generic costs associated with UMTS/HSxPA cell site acquisition and build; it does not include any Fixed Network Equipment (FNE), Ancillary Network Equipment (ANE) or Services related costs, on-going or otherwise. The total nominal cost of acquiring and building a Greenfield outdoor site is in excess of $93,000 whereas a Brownfield indoor site, by comparison is likely to be around $31,000. Clearly sharing sites and costs associated with them makes business sense especially where ROI is likely to be challenging; the UTRAN sharing feature assists in this goal.

Site acquisition
Greenfield
Indoor Sites Typical HSxPA Site Acquisition Costs $19,800 Outdoor Sites $20,250

Brownfield
Indoor Sites $8,850 Outdoor Sites $9,600

Site Construction
Greenfield
Indoor Sites Typical HSxPA Site Construction Costs $8,530 Outdoor Sites $25,414

Brownfield
Indoor Sites $7 ,923 Outdoor Sites $6,829

FNE Installation
Greenfield
Indoor Sites Typical HSxPA FNE installation OPEX Typical HSxPA FNE installation CAPEX $5,625 $12,222 Outdoor Sites $7 ,725 $40,029

Brownfield
Indoor Sites $4,350 $9,782 Outdoor Sites $6,456 $22,589

annual recurring OpEX

Greenfield
Indoor Sites Typical HSxPA Annual Recurring OPEX (Urban) Typical HSxPA Annual Recurring OPEX (Suburban) Typical HSxPA Annual Recurring OPEX (Rural) $4,560 $3,360 $2,000 Outdoor Sites $5.700 $4,200 $2,500

Brownfield
Indoor Sites $2,440 $1,690 $840 Outdoor Sites $3,730 $2,605 $1,330

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Summary
The dominant reason for service providers sharing ing networks is the cost-effective fulfillment of license s coverage conditions. When effectively implemented, network sharing can save up to 40% of CAPEX and OPEX, in particular when networks are extended into less populated areas and where return on investment is likely to be challenging. Network sharing is also applicable during the initial roll-out or coverage phase, although in most instances to date, service providers have generally opted to build out independent operations during this phase. That said, new entrants into UMTS/HSxPA operations, particularly those in emerging markets, may find it advantageous and beneficial to consider network sharing as an option at the outset of their business activities. There are a number of ways by which service providers can share a network from a physical viewpoint, based on regulatory requirements and their own business model. Service providers are able to share UTRAN hardware while retaining "ownership" over individual logical areas such as the Core and HLR etc. and operating frequencies. This allows for each service provider to retain a degree of autonomy from the other and allows for the upgrade of sites as each sees fit, based on capacity demands relating only to their specific frequency allocation(s). The combination of meaningful cost savings, faster network roll-out and coverage enhancements, will not only help service providers met license conditions but is likely to lead to the increased adoption of UMTS/HSxPA services and ultimately the success of the service providers involved. . Motorola is renowned for delivering the very latest technologies in the most cost effective manner. To these ends, Motorolas UTRAN sharing functionality is available now. It is capable of supporting for up to four service providers and accomplished via software upgrade without the need for hardware modification.

Want to find out more? For further information on this and all Motorolas UMTS/HSxPA solutions, please call your local Motorola representative who will be delighted to assist.

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Terms and acronyms 3GPP: 3G (Third Generation) Partnership Project ANE: Ancillary Network Equipment CAPEX: CAPital EXpenditure FNE: Fixed Network Equipment GGSN: GPRS Gateway Support Node GPRS: General Packet Radio Service GSM: Global System for Mobile Communications HLR: Home Location Register HSUPA: High Speed Uplink Packet Access HSDPA: High Speed Downlink Packet Access HSxPA: High Speed Uplink/ Downlink Packet Access IMSI: International Mobile Subscriber Identity MNC: Mobile Network Code NMS: Network Management Solution NRI: Network Resource Identifier OPEX: OPerational EXpenditure OSS: Operations Support Systems PLMN: Public Land Mobile Network R99: 3GPP Standards Release 99 RNC: Radio Network Controller ROI: Return on Investment SGSN: Serving GPRS Support Node TMSI: Temporary Mobile Subscriber Identity UMTS: Universal Mobile Telecommunications System UTRAN: Universal Terrestrial Radio Access Network VLR: Visitor Location Register

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The information presented herein is to the best of our knowledge true and accurate. No warranty or guarantee expressed or implied is made regarding the capacity, performance or suitability of any product. MOTOROLA and the Stylized M Logo are registered in the U.S. Patent and Trademark Office. All other product or service names are the property of their registered owners. Motorola, Inc. 2007 0507networksgms