The challenge of providing enough capacity for mobile users in future networks asks for innovative networks. The paper presents home base stations owned by the user as an alternative to femtocells owned by the network operators. Coverage aspects are linked to business perspectives, and show that network costs can be reduced by more than 70% through the introduction of prosumer base stations.

1. Telecom Line, May 2010
The future of Telecom:
Customers becoming their own
operator
represented by:
on behalf of
Josef Noll Movation AS
Chief Technologist, Movation AS,
MoMo - Mobile Monday
Professor, University of Oslo/UNIK
josef.noll@movation.no CWI - Center for Wireless
Innovation Norway
Nerd &
Professional
www.movation.no, www.mobilemonday.no, cwin.no, www.unik.no, www.innovationstockexchange.no
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

2. best
ere so me of the egian
ng ini tiative wh to build the Norw
on is a v ery exciti lves
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"Movati comm
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compani in wireles Chaffey, A
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national
team – Pa u l
founded by:
“Innovation by Design” in open communities - co-founder of MobileMonday Norway
torsdag 20. mai 2010

3. Center for Wireless Innovation Norway CWI
http://cwin.no
A facilitator for industry and seven research
institutions to form strategic partnerships in
wireless R&D
B3G BS
Sensor
Networks
Sensor Network Aggregation
Abstraction & Home/Office
Monitoring
Sensor
Networks
Car Offshore
Sensor
Networks Sensor
Networks
May 2010, Josef Noll
torsdag 20. mai 2010

4. Postulation
“Let the user own his own network, and
your revenue as a Telecom operator will
increase”
“Open Innovation in a Networked Knowledge Society”
4
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

5. Postulation
“Let the user own his own network, and
your revenue as a Telecom operator will
increase”
Stoneage:
• A phone is related to a household
• The PC/Laptop belongs to your company
• Your Mobile Phone is owned by your company
still remaining
SMS
• The Network is owned by an operator versus
video
but
• An operator can’t charge for mobile costs
“Open Innovation in a Networked Knowledge Society”
4
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

6. Beyond 4G - the heterogeneous network
B4G
5G? Seamless heterogeneity
Seamless heterogeneity
LTE Personalisedbroadband
Personalised broadband
B3G:
“4G” wireless services
wireless services
3G:
3G Multimedia communication
Multimedia Communication
2G: Mobile telephony, SMS, FAX,
Mobile telephony, SMS, FAX,
2G
Data Data
1G:
1G
Mobile telephony
Mobile telephony
1970 1980 1990 2000 2010 2020
“It is all about service delivery”
5
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

7. Beyond 4G - the heterogeneous network
3D-TV,
mobile home
B4G
5G? Seamless heterogeneity
Seamless heterogeneity
Spotify,
YouTube,...
LTE Personalisedbroadband
Personalised broadband
B3G:
“4G” wireless services
wireless services
Apps, Web,
Video
3G:
3G Multimedia communication
Multimedia Communication
SMS
2G: Mobile telephony, SMS, FAX,
Mobile telephony, SMS, FAX,
2G
Data Data
1G:
1G
Mobile telephony
Mobile telephony
1970 1980 1990 2000 2010 2020
“It is all about service delivery”
5
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

8. B4G - the service aspect
• Can mobile operators provide sufficient bandwidth at
home/in the office?
• Service experience from mobile
broadband/LTE roll-out
– 70-80% of all mobile broadband users are inside
a building
– fixed services like TV, video, streaming are more
dominant
– USA today: more data/apps traffic than voice
traffic [source: J. Waring, 2010]
• Mobile modems are part of home/business
infrastructure
– iPad, set-top box, TV, projector
– iPhone (AppStore), Android: Widgets, Applets
– streaming: YouTube, Spotify, mobile-TV,
Revenue does not relate to bandwidth
6
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

9. 5G access - business considerations
• Access challenge: More bandwidth with less revenue
• The radio dilemma Capacity increase
related to 900 MHz capacity
– frequency !, bandwidth ! 3
relative Capacity increase
– frequency !, range ↓
– outdoor to indoor 2
outdoor
• The business dilemma 1
outdoor to indoor
– 4G access is expensive (range)
– changing access means 0
900 1800 2100 2600
loosing revenue
frequency [MHz]
7
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

10. LTE radio dimensioning
Aggregated data rate
> 65 Mbit/s
> 20 Mbit/s
> 7 Mbit/s
> 1.2 Mbit/s
Interference at the edge of the network, can be resolved through intelligent frequency reuse
8
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

11. Indoor dilemma
• Coverage [Motorola 2009]
– 38% of users > 20 Mbit/s
– 32% of users 7...20 Mbit/s
– 30% of users 1.2...7 Mbit/s
70-80% indoor
usage
70-80% indoor usage
70% indoor users means 30% reduction of cell capacity, and only 45% of satisfied users
9
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

12. Indoor dilemma
• Coverage [Motorola 2009]
– 38% of users > 20 Mbit/s
– 32% of users 7...20 Mbit/s
– 30% of users 1.2...7 Mbit/s
70-80% indoor • Indoor coverage
usage – 70-80% of traffic from indoor
– decreased signal quality
– users experience less bandwidth than
promised
16% 17% 32% 35%
– 35% of users out of service coverage
70-80% indoor usage
– Operators has up to 30% reduced cell
capacity
70% indoor users means 30% reduction of cell capacity, and only 45% of satisfied users
9
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

13. Telenor expectations
source: Jørgen Grinnes, Telenor, Dec 2009
• NPT has opened for “cognitive radio” (April 2010) in 800 band
Enough capacity in LTE 800 network? Bad indoor coverage with LTE 2600.
10
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

14. Alt 1: Over-dimensioning
• Increase of Tx
– 10 dB increased Tx -> 70% increased
coverage
– cell overlap causes interference
– total network capacity is reduced
Over-dimensioing costs too much network capacity
11
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

15. Alt 2: Femtocells
16% 17% 32% 35% service availability without
femtocells
• Femtocell
– operator-owned
– full QoS control
– enable hand-over
– equipment
– transmission
– installation and deployment cost
– site acquisition or rental cost
– operation and maintenance cost
• Customer perspective
– DnBNOR, FFI.... provide only “Telenor”
coverage?
– WLAN hotspot: “freedom to select”
Operator-owned femtocells for indoor coverage
12
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

16. Alt 2: User-owned home BS
• Home base station (BS) • Conditions
– 70-80% indoor usage – spectrum ownership: 2600 GHz
– voice produced on 3G should be “unlicensed” (NPT, EU,...)
– mainly data usage with application- – Alt: “Give away” guard band spectrum
based hand-over – adaptive signal adaptation
– “break than make”
– provision to all customers, “home
authentication” • Collaborative business
– “0%” OpEx costs for operators – known from NFC - “trusted service
manager” (TSM)
– trust relation and “prosumer” approach
• Maintenance cost
reduction
– 12 %/year for an operator-owned
– user owned: 2 %/year customer
maintenance support
Home BaseStations for Increased User-Experience
13
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

17. Alt 2: User-owned home BS
OpEx and CapEx
calculations based on 40% market share
“free provisioning” of
home base stations
[source: H. Claussen, 2007]
Annual Network Costs [$]
total costs
percentage of customers with home-BS
Total network cost reduction more than 70% with user-owned base stations
14
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010

18. Conclusions
• 70-80% of 3G/”4G”
from indoor users
outdoor out/inn
>20 Mbit/s 38 % 16 %
7-20 Mbit/s 32 % 17 %
1.2-7 Mbit/s 30 % 32 %
-35%
• Femtocell
– effective if >30% penetration
– limited user experience “where is my
operator”
• User-provided Femto
– “no maintenance”
– requires trust relations
• Collaborative Radio
Collaborative Radio & Operation, the driver for cost-effective future wireless broadband networks
16
Telecom Line - May 2010 - Josef Noll
torsdag 20. mai 2010