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Development of LTE Femtocell September 2 nd, 2009 Jinri Huang SK Telecom /26 Development of LTE Femtocell September 2 nd, 2009 Jinri Huang SK Telecom /26

Contents 1. Story of SK Telecom 2. Femtocell background 3. SKT’s Wi. Bro Femtocell Contents 1. Story of SK Telecom 2. Femtocell background 3. SKT’s Wi. Bro Femtocell 4. SKT’s perspectives on LTE Femtocell 5. Conclusions 1 /26

Story of SK Telecom u 25 -Year Mobile Experience u Several world-first… World First Story of SK Telecom u 25 -Year Mobile Experience u Several world-first… World First Satellite DMB Service S-DMB World 1 st EV-DO World 1 st CDMA Commercial IS-95 A/B AMPS 1996 C 2 K 1 X 2000 WCDMA 2003 2005 World First Wi. MAX HSUPA 2007 2006 HSDPA World First MNO Service in Vietnam (S Telecom) 1984 1 G 2 G 3 G 2 /26

Business Innovation u Leading Korea’s mobile market with new technologies & innovative services. − Business Innovation u Leading Korea’s mobile market with new technologies & innovative services. − Mobile Phone Service − Wireless Internet Service − Ubiquitous & Convergence Service − Video Telephony Service − Others. u More than 50% market share in Korea Music Download Mobile Money Satellite Digital Mobile Broadcasting UCC Service u No. 1 in major 3 Customer Networking Satisfaction Indices for 11 years Social. Service Pazama Widgets Mobile Banking Total Mobile Brand 3 G Multimedia Portal GPS Navigation Video Phone MAP Navigation Fixed/Mobile Portal Segmentation for young customers Ringback Tone CDMA 1 x. EV-DO 2000 1 x ‘ 99 3 D Game Portal ’ 00 ’ 01 ’ 02 WCDMA ’ 03 Wi. Bro ’ 04 ’ 05 HSDPA ’ 06 HSUPA ’ 07 ’ 08~ 3 /26

Network coverage IS-95 A/B CDMA 1 X/EVDO WCDMA (HSPA) Wi. Bro (m-Wi. Max) ‘ Network coverage IS-95 A/B CDMA 1 X/EVDO WCDMA (HSPA) Wi. Bro (m-Wi. Max) ‘ 06 ‘ 07~’ 08 IS-95 A/B 1 X/DO ‘ 09 Seoul JEJU IS-95 A/B: Nationwide 1 X/DO: Cover 92% Population Nationwide Coverage Metropolitan Area (Seoul) & Hot Zones in other Major Cities 800 MHz (BW 25 MHz) 2. 1 GHz (BW 20 MHz) 2. 3 GHz (BW 27 MHz) 53% of total subscribers 47% of total subscribers Data by Aug. 2009 4 /26

Contents 1. Story of SK Telecom 2. üFemtocell background 3. SKT’s Wi. Bro Femtocell Contents 1. Story of SK Telecom 2. üFemtocell background 3. SKT’s Wi. Bro Femtocell 4. SKT’s perspectives on LTE Femtocell 5. Conclusions 5 /26

Femtocell at a glance 2006 Concept proposed 2007 Femto Forum established 2008 Femtocell test Femtocell at a glance 2006 Concept proposed 2007 Femto Forum established 2008 Femtocell test 2009 World first Femtocell standardization Today Commercially launched Femtocell services − Sprint, Verizon, SOFTBANK, NTT Do. Co. Mo, Chunghwa Telecom, Star. Hub Many other operators waiting in the wings, including SKT 6 /26

Why Femtocell? Cooper’s law: The number of conversations including both data and voice has Why Femtocell? Cooper’s law: The number of conversations including both data and voice has doubled every 2. 5 years Technological contributions u Wider spectrum (25×) u Frequency division (5×) u Modulation and coding (5×) u Topology / smaller cells (1600×) 1 Trillion 10 Billion 100 Million 100 1 1900 1950 2000 From 1954 to 1999, 106 times capacity increase: Smaller and smaller cells is the key factor further improvement of future network capacity 1, 000 = 25 × 5 × 1600 7 /26

Why Femtocell? High penetration loss due to high frequency Low data rate due to Why Femtocell? High penetration loss due to high frequency Low data rate due to sharing with other UEs Poor indoor coverage & Poor indoor capacity Too expensive for traditional DAS solution u Traditional macro solution is not so satisfactory for UMTS syst -ems for indoor coverage 8 /26

What can Femtocell bring? Short-term: coverage & capacity is the king For users ü What can Femtocell bring? Short-term: coverage & capacity is the king For users ü Improved coverage, quality and data rate ü Potential services ü Lower price Benefits Long-term: development of new business/services For operators ü Decreased management work ü Decreased transmission cost ü Decreased churn rate ü No need to rent sites ü Increased ARPU 9 /26

Contents 1. Story of SK Telecom 2. Femtocell background 3. üSKT’s Wi. Bro Femtocell Contents 1. Story of SK Telecom 2. Femtocell background 3. üSKT’s Wi. Bro Femtocell 4. SKT’s perspectives on LTE Femtocell 5. Conclusions 10 /26

Conventional in-building systems u Macro BS with RF Extensions – High Cap. Ex & Conventional in-building systems u Macro BS with RF Extensions – High Cap. Ex & Low Capacity • High price : Macro BS [In-building Configuration] • High construction cost : installing RF cables • Limited capacity : Limited to one BS capacity [Core Network Office] [Base station Office] RF cable -MIMO Path 1 Wi. MAX BS (2 2 MIMO) Wi. MAX ASN-GW u High Core N/W Combiner Used by the other System Wi. MAX RU Donor RF cable -MIMO Path 2 Optic Wi. MAX MRDU To support MIMO, an additional RF Cable req. [Config. in a floor] Cap. Ex is critical obstacle for successful business. – Internal survey shows that the major portion of BWA demands happen inbuilding. 11 /26

SKT’s Wi. MAX business Femtocell (Wi. Bro) GPS IBcell. EMS Ethernet (UTP or Optic SKT’s Wi. MAX business Femtocell (Wi. Bro) GPS IBcell. EMS Ethernet (UTP or Optic Fiber) Switch UTP Cable IBcell-AP (Omni ant. ) IBcell-AP (Patch ant. ) IBcell-ACR IBcell : The name of SK Telecom’s Wi. Bro business Femtocell UTP Cable IBcell. Digital IBcell-RRH IBcell Digital + RRH type BS Digital part : IBcell-Digital BS RF part : IBcell-RRH 12 /26

Installation example u Big Enterprise Case –In-building IBcell-ACR u SME Case –IBcell-ACR supports multiple Installation example u Big Enterprise Case –In-building IBcell-ACR u SME Case –IBcell-ACR supports multiple buildings IBcell-ACR 13 /26

Advantages of IBcell solution u High Performance –Over 20 Mbps/7 Mbps DL/UL throughput is Advantages of IBcell solution u High Performance –Over 20 Mbps/7 Mbps DL/UL throughput is provided by each IBcell-AP u High Flexibility –Tiny-sized IBcell-AP, easy installation, UTP cable based N/W construction –Power over Ethernet (Po. E) u Low Cap. Ex –Comparing to the conventional solution, less than 50% of Cap. Ex needed. • E. g. : 20 -story building, 1 IBcell-ACR included. Much higher business opportunity than the conventional! 14 /26

Contents 1. Story of SK Telecom 2. Femtocell background 3. SKT’s Wi. Bro Femtocell Contents 1. Story of SK Telecom 2. Femtocell background 3. SKT’s Wi. Bro Femtocell 4. üSKT’s perspectives on LTE Femtocell 5. Conclusions 15 /26

Why LTE Femtocell? Is it ready? u 3 GPP recommended femtocell architecture Iu_CS UE Why LTE Femtocell? Is it ready? u 3 GPP recommended femtocell architecture Iu_CS UE Uu HNB Iuh GW MSC Iu_PS UE Uu He. NB HNB S 1 GW MME S 1_U SGW SGSN Femtocell architecture in R 8 S 1_M ME Femtocell architecture in R 9 u Vendors made out LTE Femtocell plan u Chip vendors planned to develop LTE femtocell chips u Operators sensed the possible application of LTE femtocell −Leverage nationwide WCDMA/HSPA networks −Utilize high data rate for home, offices, hotspots, etc. 16 /26

Difference of LTE Femtocell from WCDMA Femtocell u Backhaul of higher requirement u Voice/SMS Difference of LTE Femtocell from WCDMA Femtocell u Backhaul of higher requirement u Voice/SMS support u TDD or FDD? u Multimode LTE femtocell AP WCDMA CN HNB GW UE Dual-mode W/L Femto AP LTE CN He. NB GW −It is not likely to have only one type of UE −It is not likely to buy multiple different types of femto AP −It can save cost for operators 17 /26

SKT’s perspectives on LTE Femtocell Category LTE Business Femto Service Area • In-Building, could SKT’s perspectives on LTE Femtocell Category LTE Business Femto Service Area • In-Building, could also be considered for Hot Spot coverage. Target Service • PS (Fixed and Pedestrian): Data. Topology/Configuration • Star and Daisy Chain configurations Point to Point Wifi connection also considered. • Capacity & Performance • MIMO needed • 10 MHz or 20 MHz bandwidth I/F • Ethernet Connectivity (Gigabit Ethernet) H/O • Full mobility supported. RF Extension • Distributed Antenna System SON (Self-organizing Networks) • Synchronization • Auto-configuration (Automatic Neighbour cell setting) - Autooptimization. • Autonomous network element managed by FMS/XMS. NTP or IEEE 1588 for cost effective solution. 18 /26

A deployment example • Star Configuration UTP Ethernet Network UTP • Chain Configuration Wifi A deployment example • Star Configuration UTP Ethernet Network UTP • Chain Configuration Wifi Conf. 19 /26

Mobility support • Cell 1 • Cell 2 • Macro Cell 1 • Macro Mobility support • Cell 1 • Cell 2 • Macro Cell 1 • Macro Cell 2 Full Mobility Support • Indoor Cell Femto §Femto to Femto Mobility §Femto to Macro Mobility §Macro to Femto Mobility §Inter-RAT Mobility (to 3 G network CDMA and W-CDMA). • Local MME 1 • Local MME 2 • Femto Pool • MME Macro • Macro Pool u MME/SGW Pooling: reduce and minimize the MME relocation u Local MME: manage femtocell inside the building and interact with Macro MME to absorb signalling traffic 20 /26

SON challenges: interaction b/w He. NB and e. NB u interference mitigation Challenges!! CSG SON challenges: interaction b/w He. NB and e. NB u interference mitigation Challenges!! CSG He. NB Macro LTE Femto UE u u Macro LTE Femto UE UE Reduce the interference to improve the capacity No X 2 interface in femtocell 21 /26

SON challenges: load balancing Challenges!! Load balancing Macro LTE Femto UE 3 UE 1 SON challenges: load balancing Challenges!! Load balancing Macro LTE Femto UE 3 UE 1 u u UE 2 Absorb the traffic for macro cell, reducing the burden of macro e. NB Basic idea and essence −Cell reselection/handover 22 /26

SON challenges: handover optimization Macro LTE UE Challenges!! Movement Too many possible serving cells SON challenges: handover optimization Macro LTE UE Challenges!! Movement Too many possible serving cells u Interaction, i. e. , information exchange is essential to improve HO efficiency u 23 /26

Contents 1. Story of SK Telecom 2. Femtocell background 3. SKT’s Wi. Bro Femtocell Contents 1. Story of SK Telecom 2. Femtocell background 3. SKT’s Wi. Bro Femtocell 4. SKT’s perspectives on LTE Femtocell 5. üConclusions 24 /26

Conclusions u LTE Femtocell is important for future network improvement u It is time Conclusions u LTE Femtocell is important for future network improvement u It is time for the ecosystem to begin developing LTE Femtocell u SKT has experience on developing Wi. Bro business Femtocell u SKT has interest in LTE Femtocell Technical issues, e. g. , SON challenges are essential for LTE network optimization u 25 /26

Thank You! 26 /26 Thank You! 26 /26