Mobile network operators (MNOs) are now in the process of determining their network strategies for the next five years, and in many cases these involve a move towards heterogeneous networks (HetNets). These networks will involve large numbers of cells, based on different technologies and spectrum bands. HetNets need to be fully optimized to deliver the performance and return on investment that MNOs need. And this will require many new tools including self-optimizing networks (SON). Hear Caroline Gabriel, Research Director at Maravedis Rethink Wireless Infrastructure Analysts share key findings of its Optimizing the HetNet white paper, which was based on interviews with leading MNOs regarding their RAN optimization strategies. In particular, she will address a critical choice – whether to opt for a third party, multivendor solution or leverage incumbent vendor-supplied tools. Accompanying Ms. Gabriel is Neil Coleman, Director of Marketing at Amdocs. He delved into the key role that Amdocs RAN solutions will play in this complex HetNet environment.

1. June
1
CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2015
Caroline Gabriel,
Research Director,
Maravedis-Rethink
Optimizing the HetNet:
key decision points for mobile network operators webinar
Neil Coleman,
Director Marketing,
Amdocs
May 18, 2015

2. May
2015
Copyright © Maravedis Inc 2015.
www.maravedis-bwa.com
 House Keeping
 Caroline Gabriel, Maravedis-Rethink
 Neil Coleman, Amdocs
 Q&A
Webinar Agenda

3. June
3
CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2013
Optimizing the HetNet:
Key decision points for MNOs
Caroline Gabriel, Research Director,
Maravedis-Rethink

4. CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2013
www.maravedis-bwa.com
4
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
Introduction: the survey outlined
Key findings and industry trends
– Evolution of the HetNet
– Optimization becomes critical
– The business case for optimization
– The emergence of vendor neutral strategies
Agenda

5. CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2013
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5
Study of MNOs and their key network optimization plans
The operator survey
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
• Targeted study of CTO-level
executives in tier on MNOs
• Backed up by broader studies
• 120 MNO executives
• Rethink RAN studies
• Key findings summarized
• New network architectures to
address capacity/revenue
crunch
• These will only deliver their
promises when fully optimized
• Operators increasingly want
multivendor networks and
tools
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2013 2014 2015 2016 2017 2018 2019
Growthrelativetocapacity=1
Capacity investments Data revenues
Growth in mobile broadband capacity investment relative to
incremental revenues for a typical developed market
MNO(relative to capex baseline of ‘1’ in 2013)

6. CLIENT CONFIDENTIAL
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www.maravedis-bwa.com
6
Need to optimize many types of cell equipment in dense networks
The new approach to networks
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
28
24
19
16
13
Reduce cost of data capacity Enable multivendor networks
Densify the network efficiently Integrate unlicensed spectrum
Target capacity where it is needed
• The new network architecture
• Move to small cells and HetNet
• Increase capacity, lower TCO
• Use any spectrum available
• Move to dynamic capacity and
spectrum allocation
• Targeted capacity and differentiated
QoS
Cost, capacity, coverage
Customer experience Business drivers for HetNet
Source: Maravedis-Rethink/ Amdocs survey January 2015

7. CLIENT CONFIDENTIAL
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www.maravedis-bwa.com
7
Need for optimization and SON
Optimization critical to HetNet
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
• Densification – barriers to linearity
• Unplanned cells (viral, homespots)
• Interference/congestion
• Unlicensed spectrum
• Optimization and central control
essential
• Without optimization, HetNet means
chaotic capacity
• Squeeze more from macro and then
move to other layers
• Optimization more automated as cell
numbers grow
0
10
20
30
40
50
60
70
80
2 5 10 15 30 50 75
Cellsperkm²
Full SON
essential
Density of small cells at which automation becomes essential.
Source: Maravedis-Rethink MNO survey April 2014

8. CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2013
www.maravedis-bwa.com
8
Question of customer experience not just efficiency
The business drivers for optimization
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
• Survey found range of drivers to
implement optimization
• Customer experience and services
• ‘Three Cs’
• Groundwork for new architectures
• Which tools are key?
• Shift from manual to SON
• New techniques emerge
• Increasingly seen in terms of overall ROI,
not cost
Top seven drivers to invest in RAN optimization solutions, and the %
of MNOs citing them as top three drivers. Source MaRe survey, 29
respondents, January 2015
57
50
50
43
37
36
27
Improve customer experience
Reduce network planning time
and cost
Feed into OSS, CEM, analytics
Improve coverage and capacity
Enable new architectures
Reduce or delay RAN capex
Support new services

9. CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2013
www.maravedis-bwa.com
9
HetNet enables multivendor approach, which then applies to tools
The drive towards vendor neutrality
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
• Operators want multivendor networks
• These are essential for HetNet
economics
• But require multivendor optimization
• Neutral platforms vs bundling
• Market still very open
• 15% committed to NEP solution, down
from 30% in 2013
MNOs planning to implement NEP-supplied or vendor-neutral SON
and optimization solutions. Source: MaRe survey, 29 respondents,
January 2015
0
5
10
15
20
25
30
35
40
45
50
NEP Neutral Combination Undecided No plans
%
SON Optimization

10. CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2013
www.maravedis-bwa.com
10
Opportunities and challenges for optimization specialists
Business impact of vendor neutrality
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
• Key advantages of
vendor neutral
optimization solutions
• Challenges
• Supplier trust and
stability
• Pricing/bundling
• Knowledge of
network and
business
• New opportunity
opening up
Advantages of a vendor neutral optimization/SON solution
Source: MaRe MNO survey January 2015
15
9
18
18
21
12
7
Focused solely on network quality,
not equipment
Best of breed approach encouraged
Multivendor equipment support
No future lock-in
Motivated to deliver best levels of
optimization
Motivated to support operator
business KPIs
Greater operator control in
relationship

11. CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2013
www.maravedis-bwa.com
11
Shift in emphasis from sites to real world customer experience
Operators have all-new network KPIs
May
2015
Copyright © Maravedis Inc 2013.
www.maravedis-bwa.com
From this To this

12. Optimizing the HetNet
Key decision points for mobile
network operators
Neil Coleman
Head of Amdocs Network Solution Marketing
18th May 2015

13. Information Security Level 1 – Confidential
© 2015 – Proprietary and Confidential Information of Amdocs13
Agenda
• Optimization & SON are critical to network ROI
• Real impact being delivered today
• How optimization needs to evolve
• Conclusion & next steps

14. Information Security Level 1 – Confidential
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Optimization & SON are critical to network ROI
The network imbalance
Operators need better not
just bigger networks!

15. Information Security Level 1 – Confidential
© 2015 – Proprietary and Confidential Information of Amdocs15
Optimization & SON are critical to network ROI
What optimization gives operators
Year 1 Year 4
LTE deployment 19 3
WiFi offload 15 8
Public small cells 14 26
Virtualized RAN 5 13
New or refarmed spectrum 21 17
Macro upgrades 15 15
Optimization & SON 11 18
Sweat assets; greater capacity from existing infrastructure
% of required capacity increase delivered by….

16. Information Security Level 1 – Confidential
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Optimization & SON deliver real impact
Align coverage &
capacity with
demand
Balance
load across
infrastructure
Rapid recovery
from network
issues
Seamless HetNet
connectivity
Improved customer
experience
Increased capacity
from existing
infrastructure
Increase revenue
from network
Accelerated
network
transformation
Corporate dropped calls
problems reduced by
75%Tier-1 EMEA operator
Reduction in loaded cells during
busy hour in city
20%Tier-1 LATAM operator
Reduction in time for key
optimization activities
80%Tier-1 EMEA operator
Optimization Impact In numbers

17. Information Security Level 1 – Confidential
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How optimization needs to evolve
Impact has displaced cost in operators considerations
2013 2015
Upfront cost 35% 18%
Reduced or deferred network CAPEX 14% 21%
Reduced network OPEX 22% 24%
Impact on churn and ARPU 18% 22%
Add-on costs during the contract life 12% 15%
ROI is critical: unbundling of equipment & optimization
Importance of five key economic considerations when
choosing an optimization solution

18. Information Security Level 1 – Confidential
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Streamlined HetNet ready processesDisconnected tools
How optimization needs to evolve
New toolkit of capabilities
Investment
Drive test
Call trace
Video
optimization
Coordinated Optimization
Problem resolution
Centralized, intelligent network automation
Rollout
PlanPrioritizeTarget
AcceptIntegrateDeploy
ResolveDiagnoseIdentify
DeployDesignTrigger

19. Information Security Level 1 – Confidential
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Customer & revenue drivenNetwork KPI driven
How optimization needs to evolve
The need for the right drivers
2.5%
DCR
Fault
400
Mbps
NBR
List
Network Customer Location Billing

20. Information Security Level 1 – Confidential
© 2015 – Proprietary and Confidential Information of Amdocs20
Conclusions & Next steps
Operators need better not
just bigger networks
Optimization & SON:
• Critical to network ROI
• Deliver real impact
• Needs to evolve
#1 independent
100% focused on network ROI
Customer value driven
Software Powered Services

21. Information Security Level 1 – Confidential
© 2015 – Proprietary and Confidential Information of Amdocs21
Thank you
Contact:
neil.coleman@amdocs.com
Whitepaper
http://solutions.amdocs.com/O
ptimizingHetNet.html?LeadSou
rce=OnlineBanner&Publication
=WebinarEmail

22. Thank you
Neil Coleman
Head of Amdocs Network Solution Marketing