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Capacity planning in mobile data networks
  experiencing exponential growth in demand.
  Informa’s 3G, HSPA & LTE Optimization Conference,
  17th April 2012, Prague, Czech Republic.
  .




Dr. Kim Kyllesbech Larsen,
Technology, Deutsche Telekom AG.
The mega disruptive challenges …




                                  Mega Hz




                Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   2
A typical data traffic day in Europe.

                                                                                                            Illustration




      data                 voice
   00:00                    6:00      8:00        10:00 12:00            14:00             17:00                        22:00
                                                                      Small Cells
             @Home            On the                        @Work                          On the               @Home
           (1 – 2 Cells)       Go                        (2 – 4 Cells)                      Go                (2 – 3 Cells)




                                   Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   3
Today’s bit pipe and the bottlenecks.
Network expansion as traffic “management” remedy.
                 Air/TRX/Site         Node             Backhaul                     Backbone                  Core                   Web
                  Spectrum &        Processing         bandwidth                    bandwidth               Switching           Apps servers
                  Floor space        capacity                                                                                 Bandwidth, CPU &
                                                                                                                                  Storage.
                                                                         traffic pressure points
                                + Sectorization
                                + Small cells                              due to aggregation
                                + Additional spectral
                                  capacity (if available)
  Off Loading                   + Introduce more
(AP, Femto, …)                    efficient technology
                                                                          RNC
                                                                          RNC                    SGSN
                                                                                                 SGSN                     GGSN
                                                                                                                          GGSN


                                              LL → MW → Fiber
                                                    → + Colors                                                Packet               Web 2.0
                                                                                                               Core
                                  Node
                                      +CPU

                           +CPU (i.e., CE, etc.)
                           (up-to system limit)                                     + Colors                  + CPU
                                                                                  + switching              + switching
                                                                                    capacity                 capacity



                                          RRC                                                   RAB                PDP context


            Optimized radio resource management (control plane)



                                           Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.     4
Data traffic trend to be considered.
Most mobile data traffic is fixed-like in its usage.
                                                                                                                         Illustration
            Number of sites utilized per
                usage category.
    35
                                 31                  100% traffic
    30
                                                     80%+ traffic
    25                                                                         50% of all traffic generated in 1 cell1.
    20                                     “20% mobility”                      80% data traffic carried by 3 cells1.
    15
    10                                                                          Remaining 20% carried over 28 cells.
    5       2      3    4    3    3    2    2    2    1    1    1    1
    0




                            Traffic off-load via WiFi & small-cell should be
                                       pursued more aggressively.

         1 on   a per user basis. Note: This empirical law applies to volume as well as packet switched signaling.
                                                Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   5
Law of small numbers of large consumption.
Usage trend very much Pareto like.
                                                                                                                Illustration
               Customers versus
          Data Volumetric Consumption



                                                                   12 month ago
                                                                        80% subs took 20% of data traffic.
                                                                   Today
                                                                        A bit more than 30% of data traffic1



               Data Volumetric Consumption

         Ca. 5% of active data users consume more than 1GB per
             month, more than 3 × the average monthly usage.

     1 Some   of the diffusion over the 12 month might also be impacted by FUP cutting off the extreme usage.
                                       Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   6
3G traffic distribution
50% of sites carries 80% of 3G devices and 95% of 3G traffic.
  @ Busy Hour 3G-Devices, 3G-Traffic                                                                     Illustration
 100%

  80%                                                  20% of 3G-cells carries 50% of 3G devices.

  60%
                                                       50% of 3G-cells carries 80% of 3G devices.


  40%
                                                       20% of 3G-cells carries 60+% of 3G traffic.
  20%                    3G Devices
                                                       50% of 3G-cells carries 95% of 3G traffic.
                         3G-Traffic Volume

  0%
        0%   20%   40%   60%      80%        100%
                   3G-Cells

         Relative few network resources serves most of the demand.



                          Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   7
Postpaid trends – growth slowing down?
                                                                                Data growth
      100%                      iPhone                                                                                      Volume growth
                                                                                    180%
                                Smartphone                                                                160%              Smartphone
                                                                                                                            penetration



                                                                                                                                80%

                                                                                                                                       65%
                                “Basic phone”                                                                    50%
                                                                                           30%

 Active Postpaid                                                                       2009                  2010                  2011
   Data users
                                       Other
                                       15%                                      Data customer growth
                                                                                                                                    275%
                                                       Android
                                                        27%                           Total
                             Blackberry
                                                                                                          Android
                                                                                      Android
                                14%

                                                                                  95%
                                                                                                              120%
                                                                                                        35%                   40%
                                                                                         65%
                                               Apple
 Illustration                                   44%
                                                                                     2009                  2010                  2011


     Note: >90% of all smartphones are active data users. 65% of all postpaid have a smartphone, iPhone has a 40% share of all postpaid smartphones.

                                            Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.          8
Prepaid trends – the next growth wave!

     100%                                                                                          Prepay data growth
                                                                                                                                 500%
                                                                                      Volume growth
                                                                                      Smartphone
                                                                                      penetration
                               Smartphone                                                                  250%
                               iPhone.

                                                                                              3%                    7%                   22%

                               “Basic phone”                                             2009                  2010                  2011
 Active Prepaid
  Data users                                                                             Prepay data customer growth
                                    Other
                                    16%          Android                                                                               550%
                                                  19%
                                                                                      Total
                                                                                      Android                   400%
                                                        Apple
                                                         10%
                                                                                                                                170%
                                     Blackberry
                                        55%
                                                                                                          60%

 Illustration
                                                                                       2009                  2010                  2011


     Note: 61% of all prepaid smartphones are active data users. Ca. 20% of all prepaid have a smartphone, iPhone share is 10% of all prepaid smartphones.

                                            Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.                9
The difference between post- & pre-paid?

 Illustration
       Daily volumetric profile                                        Busy Hour usage patterns

                                                                                                                   Postpaid
                                                                                                                   Prepaid




                           15 : 1
                Postpaid
                Prepaid

     00 02 04 06 08 10 12 14 16 18 20 22




        4 distinct postpay usage segments with 3 similar for prepay

      1 ….


                               Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   10
OS …Last 12 month in smartphone heavy MNO.

 Illustration
                       PS Signaling
                       development                                                           Jan-11
                        per device
                                                  RIM                                        +12 Month

                                        - 30% Signaling
                                                                                   Android: from 10%                  25% share

                                                                                     + 25% volume

                                                  Windows                                     - 35% signaling
                                                                               Apple iOS

                                                  Symbian

                                             “Basic phone”

                                                         Volume development per device



   Great improvement in iOS & RIM signaling load … Android not so!

      1 Size   of bubbles = share of active devices.
                                            Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   11
PS Signaling … The network challenge?
Remains a challenge for network aggregation points.
 Illustration                     CAGR +95% over period

                                                         Introducing
                                                     3GPP Fast Dormancy
                               Introducing
                               CELL-PCH 1


                                +140%
                                                                           +200%
                                           -50%




  Much have been done on signaling … and “we” have gotten smarter.

      1 NSN   based feature.
                                 Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   12
3G Growth …will continue … for some time
   growth …will continue
and eventually decline as subs convert to LTE.
 Illustration                                                                      Illustration of a European Market
                                                                                       with ca. 50+% prepaid base.

                 Total 3G Data Traffic1
                                                                   CAGR 45% @ 2012 - 2017

 GSM                3G Conversion
                                                   3G
                                                 Prepaid                           3G    LTE
                   CAGR 75%                                                        Conversion
                  @ 2006 - 2011
                                                             3G
                                                           Contract

                              2006                                        2017                               2025




     1 Note:   Due to the complex dynamics of technology migration and dependency on operator policy the phase-off of 3G is highly uncertain.
                                            Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   13
Total growth … another leap with LTE.

 Illustration                                                       Illustration of a European Market
                                                                       LTE introduction 2013 earliest.

                                                                           CAGR 52% @ 2020 - 2025
      Total Data Traffic
                                                                                                    by 2025
                       3G         LTE Conversion                                                500+ 2015 traffic
                                                                                                @ 100% LTE share
                 LTE CAGR 84%
                  @ 2013 - 2018

          LTE 2 3G Traffic
          @ 30% LTE share                                                      LTE


                2012                    2018                                          2025




                            Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   14
When data demand exceeds spectral efficiency gains.
”Houston we have problem”.
           Illustration of a European market 1
                                                                                                                     The spectrum crunch.
                                      Total spectrum in use for mobile data
                           10     20      40     60     85 120 120 120 120 120 120
                     15                                                                                        Leapfrog network capacity, e.g.,
                                     Spectral Efficiency (*)
                                     Spectral demand (limited)                                                          Small cells topologies
                                     Spectral demand (unlimited)                                                      Spectral demand could
Increase over 2010




                     10
                                                                                                                      Smart antennas
                                                                                                                     exceed spectral efficiency
                            3G          LTE     LTE-a                                                                 Early LTE deployment
                                                                                                                       between 2014 - 2016.
                                       Conversion
                                                                                                               Price, Control & Policy.
                      5
                                                                          NOT GOOD
                                                                             AT                                More spectrum.
                                                                            ALL!
                      0
                          2010           2012         2014         2016       2018        2020


                          1 Mobile
                                 operator with (1) 20MHz @ 800MHz (LTE), (2) 20MHz @
                                                                                                                     A lot more
                          900MHz (2G HSPA),(3) 50MHz @ 1800MHz (2G LTE), (4)
                          30MHz @ 2100MHz (HSPA+). Total spectrum position 120 MHz.                          Complexity, Capex and Opex

                                (*) realWireless report for Ofcom,: 4G Capacity Gains, Final Report, January 2011.
                                                                          Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   15
Data Mining – perception versus real experience.
Tangible network factors impacting customer perception.
                                                                                                                            Etc..

                      Financial                                                                                                 Data
                                                                                                Network
                        Data                                                                   Experience                       QoE
                                                    Satisfaction                                  Data
                                                                                                                            Speed
      Segmentation
                                                                                                               CSSR
          Data                                                                                 CDR



          Expectations                                                Expectations
          unfulfilled                                                 fulfilled

    Customer
                                                                                               Behavioral
   Service Data
                                                                                                   Data
                                                    Dis-satisfaction                                                       Device
                      Network State
                                                                              Mobility
                     From cell level up                                                                                  Data

                                                                                          Voice            SMS
                  Signaling       Load



                                   Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   16
Data Mining – customer perception versus experience.
Strength of market survey data with hard network-centric data.
                                                                                                                     Illustration
    Dissatisfied Groups Characteristics
   < 90% of the time on 3G when using data.                                3G Coverage & Capacity.
   Successful PDP context creations < 80%.
   3G Voice Call Setup Duration > 3 seconds.
                                                                            Network Optimization.
   2G Voice Call Setup Duration > 5 seconds.
   Postal code areas (i.e., coverage/capacity)                             Re-prioritizing deployment.
   Handset type
     (e.g., iPhone 3GS and Blackberry 9700) .                               Ca. 35+% of smartphones.
   Data usage > 300MB per month.                                           Ca. 30% of active customer.
   Number of sites visited > 60.                                           < 5% of active customer.
   Voice call duration per month >450 minutes.                                    Out of Technology Scope
   A relatively high bill.
     (i.e., higher bill, higher expectations)
                                                                            Dependency on perceived quality.


       *Participants in the survey are informed and agreed (i.e., opt in policy applied) that their data will be used for research. No DPI applied.
                                            Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.         17
Data Mining – the Big Data picture 1.
Capacity planning on the cell level using data mining strategies.
  Illustration                                                                                     Cell Input Xj (per hour).
                                                                                         <Voice calls>, <R99 users>UL, DL

                       C4ell                                                             <HS-D/U-PA users>, Max HS-D/U-PA users,
                                                                                            Radio Resource Control Attempts*,
     C1ell                                                                                  Radio Access Bearer (total, voice, data)
                                                                                         <Soft-HO area>, < DL / UL Speed>
                      Cn-2ell
                            Cnell                                                        <Voice / Data proportion originating in cell>
                      Cn-1ell

                                                                                                         Cell Output: Ci=1..5
    n = 20,000 Cells                                                                              1.      RAB release by interference
    5 load-functions (output)                                                                     2.      Average Noise Raise (ANR)
    16 input cell-level parameters (input)                                                        3.      R99 specific ANR
    Up-to 100,000 regression models.                                                              4.      Consumed DL Power
    Planning validity < 4+ month                                                                  5.      No Code Available


      1 Paperon “Mass Scale Modeling for Prediction and Simulation of the Air-Interface Load in 3G Radio Access Networks”, by Radosavljevik, v.d. Putten & K. Kyllesbech
      Larsen submitted to The 18th ACM SIGKDD Conference on Knowledge Discovery and Data Mining’12, *One 1 RRC per active device.
                                                  Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.                        18
The network state-equation .. is there such a thing?
Calculating the critical driver limit for capacity demand.
                             nj #active devices                                                                          Illustration

                                                                                  Fundamental load drivers
                                                                         Number of devices per cell.
                                                                         Rate of concurrent instances of demand
                                                                          per unit time.

                                        Effective rate pj
                                        per device

                                               Cell

          Ci Installed capacity




     *k   is the number of standard deviation over the mean that is considered.
                                          Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   19
The network state-equation ...practical applications.

      Examples from a 3,000+ Node 3G network
             RRL limit            RRL limit
             for Ultrasite        for Flex2
           350                                                               100%              350                                                           100%
                         CE limit
                         @ 128 CE                                                                         Ca. 1,250 smart-
           300                                                                                 300
                                                                             80%
                                                                                                          phones per 3-carrier                               80%
                                                                                                          Node-B, carrier
           250                                                                                 250
                                                                                                          expansion should be
                                                                                                          expected.                                          60%
                                                                             60%




                                                                                     Node-Bs
                                                                                               200
 Node-Bs




           200                                                                                                          2,500 smart-phones
                                 CE limit
                                                                                                                        per 6-carrier Node-B,
                                 @ 256 CE
           150                                                                                 150                      carrier expansion                    40%
                                                                             40%
                                              CE limit                                                                  should be expected.
           100                                @ 396 CE                                         100
                                                             Frequency                                                                    Frequency          20%
                                                                             20%
           50                                                Cumulative %                      50                                         Cumulative %


             0                                                               0%                  0                                                           0%




                             Number of smart-phones per Node-B                                           Number of smart-phones per Node-B


                 The network (cell-based) state-equation allows reliable long-term
                              3G radio resource capacity planning.

                  1 ….


                                                         Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.          20
What about FUP? ...Fair? Effective? … or a FAD?

 Illustration                                                       FUP flavors
   Volume per User                                                   Hard volume-limit throttling.
                                 Throttling                          BH throttling.
                                                                     Service based (dpi) throttling.
         FUP Limit
                                        64 kbps
                                                                     Traffic de-prioritization … etc…
                                 Days of
                                 “normal” usage
                   1 Mbps                                           Re-active remedy.
    0                                                  31           Typically capture <2% of users.
               Subscription days per month
                                                                    Does not address signaling
                                                                     challenge from smartphone Apps.

               Mobile FUP implementations might not be very efficient
                     as a structural traffic management remedy.

        1 ….


                                  Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   21
FUP or FAD?
Volume-driven FUP (of today) has little structural impact.
   Time to                                 80%        98%
                                                                       < 0.5%             FUP Addressable
  FUP limit                                                     < 2%

 >2,500 Years                                                                          Example:
  >250 Years
                                                                                       2,000 FUP relevant users
   >25 Years
                                                                                       20,000 Cells in Network

    >2.5 Year                                                                          50% of FUP in 20% of Cells
                                                                                       1,000 FUP served by 4,000 Cells
    100 Days              30 Days = Reset
     10 Days
                                                                                       BH mean value of users1 per cell
                               Days to reach 500MB                                     is 185 in the Top 20% Cells.
       1 Day                   Days to reach 2GB
                                                                                         1 FUP relevant customer would
     2.5 Hour                                                                          compete for resources with at least
                                                                                         185 others in the Busy Hour 2.

Illustration                Daily usage per active user

         1   Approx. log-norm distribute, 2 in max ¼ of the Top-20% cells.
                                               Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   22
Pre- & post-FUP implementation.
Marginal traffic reduction achieved with FUP.

            Daily Tail Volume Profile                                                    Daily Active Customer Profile
                  >2 GB usage                                                                    > 2 GB usage

                                                                                                        Max. 0.25% of total
                                55% of total traffic                                                           Active Base
                        -15% Drop                                                                   Max -0.05% Drop
                                                                                     Pre-FUP
                           Max -10% Drop
                                 Pre-FUP


                                                                                                            Post-FUP
                              Post-FUP
   00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23          00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23




  Illustration

         Note: Fair Use Policy with throttling to 64kbps after limit has been reached.
                                               Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.         23
What we need to be passionate about.



       Customer usage, experience and imposed policies impact.



              Deep understanding of data traffic is crucial.



 Automation (data mining combined with machine learning) way forward.



    Ensuring best customer experience at all times & at lowest cost.



                      Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   24
Detecon is specialized in providing ICT management
consulting services with the infrastructure of a global player.
                                                                                                     DETECON International GmbH
Detecon advises on the issues of strategy, organization, and
technology design for Telecommunications and IT companies.
                                                                                           Contact: M.-A. Schultze
                                                                                                             Phone +49 160 8841957
Established in 1977, Detecon is experienced, thanks to the
successful realization of more than 6,000 projects.                                                                        www.detecon.com
                                                                                                                          info@detecon.com

Detecon is international, with worldwide representation, clients in
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Detecon has in-depth knowledge of the
industry and a consulting approach
oriented towards implementation
and cooperation as partners.

Detecon is part of
Deutsche Telekom Group.




                                                                    Detecon Branch Offices


                                   Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic.   25
Acknowledgement: I am indebted to Veli-Pekka Kroger and Dejan                 Contact: kim.larsen@telekom.de
Radosavljevik for greatly enhancing this work with valuable discussions and
sharp analytical insights. Last but not least I acknowledge my wife Eva
                                                                              Mobile: +31 6 2409 5202
Varadi for her great support and understanding during the creation of this    http://nl.linkedin.com/in/kimklarsen
presentation.                                                                 http://www.slideshare.net/KimKyllesbechLarsen

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Capacity planning in mobile data networks experiencing exponential growth in demand

  • 1. Capacity planning in mobile data networks experiencing exponential growth in demand. Informa’s 3G, HSPA & LTE Optimization Conference, 17th April 2012, Prague, Czech Republic. . Dr. Kim Kyllesbech Larsen, Technology, Deutsche Telekom AG.
  • 2. The mega disruptive challenges … Mega Hz Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 2
  • 3. A typical data traffic day in Europe. Illustration data voice 00:00 6:00 8:00 10:00 12:00 14:00 17:00 22:00 Small Cells @Home On the @Work On the @Home (1 – 2 Cells) Go (2 – 4 Cells) Go (2 – 3 Cells) Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 3
  • 4. Today’s bit pipe and the bottlenecks. Network expansion as traffic “management” remedy. Air/TRX/Site Node Backhaul Backbone Core Web Spectrum & Processing bandwidth bandwidth Switching Apps servers Floor space capacity Bandwidth, CPU & Storage. traffic pressure points + Sectorization + Small cells due to aggregation + Additional spectral capacity (if available) Off Loading + Introduce more (AP, Femto, …) efficient technology RNC RNC SGSN SGSN GGSN GGSN LL → MW → Fiber → + Colors Packet Web 2.0 Core Node +CPU +CPU (i.e., CE, etc.) (up-to system limit) + Colors + CPU + switching + switching capacity capacity RRC RAB PDP context Optimized radio resource management (control plane) Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 4
  • 5. Data traffic trend to be considered. Most mobile data traffic is fixed-like in its usage. Illustration Number of sites utilized per usage category. 35 31 100% traffic 30 80%+ traffic 25  50% of all traffic generated in 1 cell1. 20 “20% mobility”  80% data traffic carried by 3 cells1. 15 10  Remaining 20% carried over 28 cells. 5 2 3 4 3 3 2 2 2 1 1 1 1 0 Traffic off-load via WiFi & small-cell should be pursued more aggressively. 1 on a per user basis. Note: This empirical law applies to volume as well as packet switched signaling. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 5
  • 6. Law of small numbers of large consumption. Usage trend very much Pareto like. Illustration Customers versus Data Volumetric Consumption 12 month ago  80% subs took 20% of data traffic. Today  A bit more than 30% of data traffic1 Data Volumetric Consumption Ca. 5% of active data users consume more than 1GB per month, more than 3 × the average monthly usage. 1 Some of the diffusion over the 12 month might also be impacted by FUP cutting off the extreme usage. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 6
  • 7. 3G traffic distribution 50% of sites carries 80% of 3G devices and 95% of 3G traffic. @ Busy Hour 3G-Devices, 3G-Traffic Illustration 100% 80%  20% of 3G-cells carries 50% of 3G devices. 60%  50% of 3G-cells carries 80% of 3G devices. 40%  20% of 3G-cells carries 60+% of 3G traffic. 20% 3G Devices  50% of 3G-cells carries 95% of 3G traffic. 3G-Traffic Volume 0% 0% 20% 40% 60% 80% 100% 3G-Cells Relative few network resources serves most of the demand. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 7
  • 8. Postpaid trends – growth slowing down? Data growth 100% iPhone Volume growth 180% Smartphone 160% Smartphone penetration 80% 65% “Basic phone” 50% 30% Active Postpaid 2009 2010 2011 Data users Other 15% Data customer growth 275% Android 27% Total Blackberry Android Android 14% 95% 120% 35% 40% 65% Apple Illustration 44% 2009 2010 2011 Note: >90% of all smartphones are active data users. 65% of all postpaid have a smartphone, iPhone has a 40% share of all postpaid smartphones. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 8
  • 9. Prepaid trends – the next growth wave! 100% Prepay data growth 500% Volume growth Smartphone penetration Smartphone 250% iPhone. 3% 7% 22% “Basic phone” 2009 2010 2011 Active Prepaid Data users Prepay data customer growth Other 16% Android 550% 19% Total Android 400% Apple 10% 170% Blackberry 55% 60% Illustration 2009 2010 2011 Note: 61% of all prepaid smartphones are active data users. Ca. 20% of all prepaid have a smartphone, iPhone share is 10% of all prepaid smartphones. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 9
  • 10. The difference between post- & pre-paid? Illustration Daily volumetric profile Busy Hour usage patterns Postpaid Prepaid 15 : 1 Postpaid Prepaid 00 02 04 06 08 10 12 14 16 18 20 22 4 distinct postpay usage segments with 3 similar for prepay 1 …. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 10
  • 11. OS …Last 12 month in smartphone heavy MNO. Illustration PS Signaling development Jan-11 per device RIM +12 Month - 30% Signaling Android: from 10% 25% share + 25% volume Windows - 35% signaling Apple iOS Symbian “Basic phone” Volume development per device Great improvement in iOS & RIM signaling load … Android not so! 1 Size of bubbles = share of active devices. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 11
  • 12. PS Signaling … The network challenge? Remains a challenge for network aggregation points. Illustration CAGR +95% over period Introducing 3GPP Fast Dormancy Introducing CELL-PCH 1 +140% +200% -50% Much have been done on signaling … and “we” have gotten smarter. 1 NSN based feature. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 12
  • 13. 3G Growth …will continue … for some time growth …will continue and eventually decline as subs convert to LTE. Illustration Illustration of a European Market with ca. 50+% prepaid base. Total 3G Data Traffic1 CAGR 45% @ 2012 - 2017 GSM 3G Conversion 3G Prepaid 3G LTE CAGR 75% Conversion @ 2006 - 2011 3G Contract 2006 2017 2025 1 Note: Due to the complex dynamics of technology migration and dependency on operator policy the phase-off of 3G is highly uncertain. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 13
  • 14. Total growth … another leap with LTE. Illustration Illustration of a European Market LTE introduction 2013 earliest. CAGR 52% @ 2020 - 2025 Total Data Traffic by 2025 3G LTE Conversion 500+ 2015 traffic @ 100% LTE share LTE CAGR 84% @ 2013 - 2018 LTE 2 3G Traffic @ 30% LTE share LTE 2012 2018 2025 Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 14
  • 15. When data demand exceeds spectral efficiency gains. ”Houston we have problem”. Illustration of a European market 1 The spectrum crunch. Total spectrum in use for mobile data 10 20 40 60 85 120 120 120 120 120 120 15 Leapfrog network capacity, e.g., Spectral Efficiency (*) Spectral demand (limited) Small cells topologies Spectral demand (unlimited) Spectral demand could Increase over 2010 10 Smart antennas exceed spectral efficiency 3G LTE LTE-a Early LTE deployment between 2014 - 2016. Conversion Price, Control & Policy. 5 NOT GOOD AT More spectrum. ALL! 0 2010 2012 2014 2016 2018 2020 1 Mobile operator with (1) 20MHz @ 800MHz (LTE), (2) 20MHz @ A lot more 900MHz (2G HSPA),(3) 50MHz @ 1800MHz (2G LTE), (4) 30MHz @ 2100MHz (HSPA+). Total spectrum position 120 MHz. Complexity, Capex and Opex (*) realWireless report for Ofcom,: 4G Capacity Gains, Final Report, January 2011. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 15
  • 16. Data Mining – perception versus real experience. Tangible network factors impacting customer perception. Etc.. Financial Data Network Data Experience QoE Satisfaction Data Speed Segmentation CSSR Data CDR Expectations Expectations unfulfilled fulfilled Customer Behavioral Service Data Data Dis-satisfaction Device Network State Mobility From cell level up Data Voice SMS Signaling Load Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 16
  • 17. Data Mining – customer perception versus experience. Strength of market survey data with hard network-centric data. Illustration Dissatisfied Groups Characteristics  < 90% of the time on 3G when using data.  3G Coverage & Capacity.  Successful PDP context creations < 80%.  3G Voice Call Setup Duration > 3 seconds.  Network Optimization.  2G Voice Call Setup Duration > 5 seconds.  Postal code areas (i.e., coverage/capacity)  Re-prioritizing deployment.  Handset type (e.g., iPhone 3GS and Blackberry 9700) .  Ca. 35+% of smartphones.  Data usage > 300MB per month.  Ca. 30% of active customer.  Number of sites visited > 60.  < 5% of active customer.  Voice call duration per month >450 minutes. Out of Technology Scope  A relatively high bill. (i.e., higher bill, higher expectations)  Dependency on perceived quality. *Participants in the survey are informed and agreed (i.e., opt in policy applied) that their data will be used for research. No DPI applied. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 17
  • 18. Data Mining – the Big Data picture 1. Capacity planning on the cell level using data mining strategies. Illustration Cell Input Xj (per hour). <Voice calls>, <R99 users>UL, DL C4ell <HS-D/U-PA users>, Max HS-D/U-PA users, Radio Resource Control Attempts*, C1ell Radio Access Bearer (total, voice, data) <Soft-HO area>, < DL / UL Speed> Cn-2ell Cnell <Voice / Data proportion originating in cell> Cn-1ell Cell Output: Ci=1..5  n = 20,000 Cells 1. RAB release by interference  5 load-functions (output) 2. Average Noise Raise (ANR)  16 input cell-level parameters (input) 3. R99 specific ANR  Up-to 100,000 regression models. 4. Consumed DL Power  Planning validity < 4+ month 5. No Code Available 1 Paperon “Mass Scale Modeling for Prediction and Simulation of the Air-Interface Load in 3G Radio Access Networks”, by Radosavljevik, v.d. Putten & K. Kyllesbech Larsen submitted to The 18th ACM SIGKDD Conference on Knowledge Discovery and Data Mining’12, *One 1 RRC per active device. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 18
  • 19. The network state-equation .. is there such a thing? Calculating the critical driver limit for capacity demand. nj #active devices Illustration Fundamental load drivers  Number of devices per cell.  Rate of concurrent instances of demand per unit time. Effective rate pj per device Cell Ci Installed capacity *k is the number of standard deviation over the mean that is considered. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 19
  • 20. The network state-equation ...practical applications. Examples from a 3,000+ Node 3G network RRL limit RRL limit for Ultrasite for Flex2 350 100% 350 100% CE limit @ 128 CE Ca. 1,250 smart- 300 300 80% phones per 3-carrier 80% Node-B, carrier 250 250 expansion should be expected. 60% 60% Node-Bs 200 Node-Bs 200 2,500 smart-phones CE limit per 6-carrier Node-B, @ 256 CE 150 150 carrier expansion 40% 40% CE limit should be expected. 100 @ 396 CE 100 Frequency Frequency 20% 20% 50 Cumulative % 50 Cumulative % 0 0% 0 0% Number of smart-phones per Node-B Number of smart-phones per Node-B The network (cell-based) state-equation allows reliable long-term 3G radio resource capacity planning. 1 …. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 20
  • 21. What about FUP? ...Fair? Effective? … or a FAD? Illustration FUP flavors Volume per User  Hard volume-limit throttling. Throttling  BH throttling.  Service based (dpi) throttling. FUP Limit 64 kbps  Traffic de-prioritization … etc… Days of “normal” usage 1 Mbps Re-active remedy. 0 31 Typically capture <2% of users. Subscription days per month Does not address signaling challenge from smartphone Apps. Mobile FUP implementations might not be very efficient as a structural traffic management remedy. 1 …. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 21
  • 22. FUP or FAD? Volume-driven FUP (of today) has little structural impact. Time to 80% 98% < 0.5% FUP Addressable FUP limit < 2% >2,500 Years Example: >250 Years 2,000 FUP relevant users >25 Years 20,000 Cells in Network >2.5 Year 50% of FUP in 20% of Cells 1,000 FUP served by 4,000 Cells 100 Days 30 Days = Reset 10 Days BH mean value of users1 per cell Days to reach 500MB is 185 in the Top 20% Cells. 1 Day Days to reach 2GB 1 FUP relevant customer would 2.5 Hour compete for resources with at least 185 others in the Busy Hour 2. Illustration Daily usage per active user 1 Approx. log-norm distribute, 2 in max ¼ of the Top-20% cells. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 22
  • 23. Pre- & post-FUP implementation. Marginal traffic reduction achieved with FUP. Daily Tail Volume Profile Daily Active Customer Profile >2 GB usage > 2 GB usage Max. 0.25% of total 55% of total traffic Active Base -15% Drop Max -0.05% Drop Pre-FUP Max -10% Drop Pre-FUP Post-FUP Post-FUP 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Illustration Note: Fair Use Policy with throttling to 64kbps after limit has been reached. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 23
  • 24. What we need to be passionate about. Customer usage, experience and imposed policies impact. Deep understanding of data traffic is crucial. Automation (data mining combined with machine learning) way forward. Ensuring best customer experience at all times & at lowest cost. Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 24
  • 25. Detecon is specialized in providing ICT management consulting services with the infrastructure of a global player. DETECON International GmbH Detecon advises on the issues of strategy, organization, and technology design for Telecommunications and IT companies. Contact: M.-A. Schultze Phone +49 160 8841957 Established in 1977, Detecon is experienced, thanks to the successful realization of more than 6,000 projects. www.detecon.com info@detecon.com Detecon is international, with worldwide representation, clients in 165 countries, and employees from more than 30 nations. Detecon has in-depth knowledge of the industry and a consulting approach oriented towards implementation and cooperation as partners. Detecon is part of Deutsche Telekom Group. Detecon Branch Offices Dr. Kim Kyllesbech Larsen, 3G, HSPA+ & LTE Optimization, April 17th 2012, Prague, Czech Republic. 25
  • 26. Acknowledgement: I am indebted to Veli-Pekka Kroger and Dejan Contact: kim.larsen@telekom.de Radosavljevik for greatly enhancing this work with valuable discussions and sharp analytical insights. Last but not least I acknowledge my wife Eva Mobile: +31 6 2409 5202 Varadi for her great support and understanding during the creation of this http://nl.linkedin.com/in/kimklarsen presentation. http://www.slideshare.net/KimKyllesbechLarsen