5G is a forcing factor to rethinking Mobile Network economics. Virtualization is driving cost savings, enabling services and capabilities...and virtualizing the RAN (vRAN) is a critical success factor.

1. 5G: A Forcing Factor to Rethinking
Mobile Economics
JOHN BAKER
SVP Business Development
October 2018
1

2. Operator Data Growth Challenges
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0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
2018 2019 2020 2021 2022 2023
Avg users ARPU (Local) Data traffic per month per sub (GB)
• Declining ARPU
• Limited subscriber growth
• Data doubling YoY
Source: Mavenir

3. Network Cost Challenges
Mavenir_John Baker_NextGenWireless_October2018 3
€ -
€ 1.00
€ 2.00
€ 3.00
€ 4.00
€ 5.00
€ 6.00
€ 7.00
2018 2019 2020 2021 2022 2023
Network charges per sub per month (Local) EPC estimate per GB sub per month (Local) Euro
Access charges per sub per month (Local) Euro
• Network cost increasing
• Access charges
• Network license cost
need to decrease
greater than data growth
Source: Mavenir

4. Network challenges with declining ARPUs
Mavenir_John Baker_NextGenWireless_October2018 4
• How to handle with projected Data volumes?
• How to support increased demand on low latency?
• How to decrease network costs to maintain profitability?
• How to maximise use and increase longevity of existing investments?
– GTP & IP Transmission
– EPC
• How to migrate of centralized services to the edge?
– Monitoring of Signalling and Media
– Lawful intercept

5. The Network of the Future
Mavenir_John Baker_NextGenWireless_October2018 5
RAN HW Core HW
Static TransportStatic Backhaul
Data
Center
Distributed Open Automated
RAN SW
Functions
Flexible Transport (SDN)
HW HWHW HW
NFVI/Cloud
Service
NFVI/Cloud

6. Telco Cloud requires New Web-scale Approach
From Network Functions to Services
Cloud Compute
Cloud Native
Virtualization
NFV and SDN
Network Slicing and DevOps Ready
For Web-Scale agility
Stateless
1
2
34
5
6
Micro-services
Modularity and reusability
State externalized
Commodity, shared, independent
Not monoliths
Mavenir_John Baker_NextGenWireless_October2018 6

7. Drivers for Open RAN
Mavenir_John Baker_NextGenWireless_October2018 7
• Dependence on walled garden suppliers
• Frustration around the ability to change
• Open standards for RAN are achievable
• OpenRAN ecosystem in formation
• Not a revolution – need Carrier adoption
Operators need to start now or face the consequences

8. Just announced …
Mavenir_John Baker_NextGenWireless_October2018 8
Vodafone and Telefónica have today announced the selection of
vendors as "leading candidates“ for RAN solutions.
Mavenir, Altiostar and Parallel Wireless

9. Core Moving to the Edge
BBU
vEPC
NIC
VM VM
MEC micro
services
Internet
• Deliver low latency services (AR, VR etc.)
• Reduce cost (e.g. Caching)
• Improve customer experience (video caching)
• Split control and user plane
• Private LTE networks
• Combined Cloud RAN and vEPC functionality
• Cloud RAN is an edge function
9Mavenir_John Baker_NextGenWireless_October2018

10. 10
“Open interface Software on open market hardware –
Anything else is considered proprietary”
Mavenir_John Baker_NextGenWireless_October2018
Cloud RAN (vRAN)

11. Addressing 5G Challenges
Mavenir_John Baker_NextGenWireless_October2018 11
Low Latency – Micro Services at Network Edge
Bits/sec/hertz/$ - New Business Models, Cost and Resiliency
Virtualization - All Elements Virtualized except the Radio
Open Interfaces – Front haul and Networking
Low cost RRUs - Massive Densification
Spectral efficiency – Massive MIMO

12. One Solution to the Problem: Cloud RAN
12
Operators can save 49% in CAPEX
Front haul bandwidth
reduction
Dramatic cost reduction
Up to 10x compared to CPRI
Increased distance
between RRU and VBBU
Significantly expanding choices
in network planning
Enhanced business agility
Provides network elasticity,
flexibility, ease of deployment, and
dynamic RAN
Mavenir_John Baker_NextGenWireless_October2018
Source: Senza Fili TCO study

13. Mavenir_John Baker_NextGenWireless_October2018 13

14. Operator Vendor Selection Mantra
“Nobody ever got fired if they buy from ……”
WRONG
Mavenir_John Baker_NextGenWireless_October2018 14
100,000 redundancies
have been
completed/notified
in the last 6 months
with major Tier one
operators
Current business
models are not
sustainable within the
next three years.
“Three suppliers
shrinking to Two”

15. Summary
Mavenir_John Baker_NextGenWireless_October2018 15
• Operators need to start now our face the consequences
• Virtualization
• Open standards and interfaces are achievable
• OpenRAN ecosystem in formation
• Not a revolution – need Carrier adoption
• RAN is an edge service
• Moving the core to the edge allows great cost savings against
declining ARPUs
With 5G Industry is about to see significant transformation

16. Thank You
Mavenir_John Baker_NextGenWireless_October2018 mavenir.com