Liquid Radio making waves in the future

Liquid Radio – making waves in the future of communications Orlin Nedialkov April 2012, Sofia 1 © Nokia Siemens Networks Customer confidential

How to offer the network capacity efficiently for the big regular moves? Spring, Autumn, Winter Summer Customer confidential 2 © Nokia Siemens Networks

How to bring capacity to the places where heavy user are? Voice and basic data Hot spots Suburban, rural, small city Business district, airport Customer confidential 3 © Nokia Siemens Networks

Nokia Siemens Networks answer - Liquid Net: unleashing the broadband opportunities of existing networks What Unleashes frozen network capacity into a reservoir of resources that can flow to fulfill unpredictable demand How • Self-aware and self-adapting • Software-defined applications on multi-purpose hardware • Inter-linked architecture • Evolutionary Why • Higher network utilization: Up to 65% capacity gain in radio cells • Lower operating costs: Up to 15% core network savings through automation • Superior customer experience: Streaming optimization can halve video standstills • Business potential: Increase revenues by up to 10% with temporary broadband upgrade Customer confidential 4 © Nokia Siemens Networks

The business context: four broadband challenges in an increasingly dynamic world Location and context Win new revenue Data volume How to deliver a compelling and profitable customer experience? Time Leverage technology advances Software Hardware Customer confidential 5 © Nokia Siemens Networks Revenue Unpredictable data growth

Demand is unpredictable Different times, various locations Suburbs Sudden peaks City Residential 12 am Time 12 am Up to 80% idle capacity Users Up to 50% idle capacity Radio Core Customer confidential 6 © Nokia Siemens Networks Content

Liquid Net comprises solution components in all network domains Liquid Net Liquid content and traffic management for superior customer experience and new revenues Liquid resource allocation for flexibility and enhanced efficiency Intelligent Broadband Management Integrated Qo. S and Content Delivery Network Liquid Radio Liquid Core Liquid Transport Baseband Pooling Core Virtualization Flexible Optics Single RAN Flexi MR Antenna SON for Core IP Transport Integration Unified and SON-enabled Het. Net Customer confidential 7 © Nokia Siemens Networks Intelligent Control

Liquid Radio - The solution 8 Copyright © Nokia Siemens Networks 2012 Customer Confidential

Liquid Radio: Redefining base station-based architecture Conventional Radio Liquid Radio Flexible sharing of resources Baseband Pooling Static cells Automated multi-radio beam forming Single RAN Active Antenna System Fragmented radio access Coordinating macro and small cell layers Unified and SONenabled Het. Net ‘One size fits all’ architecture Customer confidential 9 © Nokia Siemens Networks

Capacity demand at a given time Liquid Radio: Demand is like a wave in modern networks Hotspot demand is rapidly outpacing the ability to add capacity Busy hour Excess Bandwidth Demand in 20 Km² business or downtown area (GB/hour/Km²) over average bandwidth demand Network coverage Source: i. GR, 2012 Customer confidential 10 © Nokia Siemens Networks

Liquid Radio: Key elements and what’s new Single RAN Active Antenna Systems Baseband pooling Unified and SON-enabled Heterogeneous Networks Small Cells Macro Cells Cell 1 Cell 2 SON for AAS: automated beam forming for dynamic cells based on time of day or demand Flexi Zone: new small cell architecture Baseband pool Customer confidential 11 © Nokia Siemens Networks Small cells strategy SON for small cells SON for Het. Net

Liquid Radio: World-first vertical sectorization Flexi Multiradio Antenna System Active Antenna with beam forming Active Antenna System Automation Radio cells defined by software (on/off) Vertical beam steering for best user experience Lowest TCO – 35% saving Customer confidential 12 © Nokia Siemens Networks 65% more capacity 30% more coverage at same time Compact, power efficient, easy to deploy

Liquid Radio: Baseband Pooling - static capacity becomes fluid and adaptive The challenges. . . LTE-A • The ‘ebb and flow’ of demand leaves capacity LTE stranded in conventionally dimensioned networks • 2 G, 3 G, LTE and LTE-A coexist in the same sites • Introducing small cells addresses just one aspect of congestion – fronthaul, backhaul and core need to be considered too • Signal quality does not equal throughput and thus Qo. S/Qo. E Customer confidential 13 © Nokia Siemens Networks HSPA+ GSM

Liquid Radio: Going fluid from today’s architecture Onsite and off-site baseband pooling Radio Fronthaul Baseband Base station Distributed RAN RF RF RF Centralized RAN RF A baseband pool for each base station, with baseband shared across sectors and radio technologies A baseband pool serves several connected baseband units that dynamically serve several remote RRUs Customer confidential © Nokia Siemens Networks Multiradio and software defined hardware platform BB Short distance Long distance 14 BB BB Small Cells: Flexi Zone Macro Cell: Proof of Concept

Liquid Radio: Unified and SON-enabled Heterogeneous Networks The challenges. . . High complexity • Multi-RAT, multi-layer, multi-vendor • Thousand of multiple variables • Increasing level of expertise required by systems demands more human interaction • Introduction of smaller cells into already complex network environment • Capacity in the right technology layer • Challenging interoperability Customer confidential 15 © Nokia Siemens Networks

Liquid Radio: Unique 360 degrees strategy and portfolio Macro Modernize, upgrade, refarm and squeeze spectrum AAS Small cells volume SON Macro Base Station SON for Radio SON for Core Capacity offload Enhance coverage Small Cells Hot Zone In-building Rural 2012 2013 Customer confidential 16 © Nokia Siemens Networks Hotspot

Liquid Radio: A complete and unified portfolio Flexi Lite BTS Flexi Zone Micro / pico Macro Pico cluster Full capacity Small outline Proven Cost-effective Innovative Flexible 3 G Femto In-building SWLANC Solutions Wi-Fi Offload Mature products Expert services Seamless integration Capacity relief Femtocell Fully standardized Fully scalable Packet Core Backhaul Managed services – Consulting services Customer confidential 17 © Nokia Siemens Networks OSS / SON

Liquid Radio: GSM Software Suite Making network resources fluid for multiradio re-farming Capacity demand is like a wave in radio networks GSM Software suite HSPA / LTE GSM • More bandwidth for 3 G HSPA / LTE • One more carrier for GSM with limited spectrum • More RF power for 3 G HSPA / LTE HW SW Add more RF units, split BTS sites, create micro layers Activate Liquid Radio GSM Software Suite features: • • • Flexible MCPA Tx power pooling Orthogonal Sub-channel (OSC) Smart Resource Adaptation (SRA) Dynamic Frequency and Channel Allocation (DFCA) Precise Paging (PP) Key financial benefits: • 20% lower Total Cost of Ownership (TCO) • 30% more GSM spectrum can be allocated to 3 G HSPA/LTE Key operational benefits • • Same GSM service in reduced spectrum Fluidity of multi-radio resources Doubled 3 G HSPA/LTE data throughput with less hardware Easier spectrum re-farming to 3 G HSPA/LTE Customer confidential 18 © Nokia Siemens Networks

Liquid Core - The solution 19 Copyright © Nokia Siemens Networks 2012 Customer Confidential

Liquid Core: The two pillars Core Virtualization Any core software application on: • COTS ATCA • Ultimately, other generic multipurpose hardware • Resources balanced as traffic needs change • Extreme hardware efficiency • Extreme flexibility Automation Core applications SON for Core Automated network management: • Flexible resource allocation for different core applications • Traffic distribution across multiple instances of the same core application 20 Copyright © Nokia Siemens Networks 2012 Virtualization layer Legacy hardware COTS ATCA hardware Customer Confidential Other multi-purpose hardware Balanced traffic and services loading: • Highest core investment utilization • Reduced operational costs • Improved service stability

Liquid Core: Core Virtualization - multiple applications on multipurpose hardware Same hardware for all core applications 21 Copyright © Nokia Siemens Networks 2012 One application software for legacy, COTS ATCA and ultimately other multi-purpose generic hardware Flexible capacity adaptation to meet traffic needs Customer Confidential Less hardware – reduced investment, lower implementation costs

Liquid Core: Intelligent SON network management automation expands to core Proactively detect, analyze and react to changes in traffic demand network conditions SON for Core PCS 500 Flexi NG MGW • Prevents bottlenecks and traffic loss • Highest utilization of investments MSS Flexi NS • Higher operational efficiency SON for Core self-optimizes and self-configures core networks key operational processes, e. g. by • automated traffic load balancing • optimized transport capacity distribution • Improved network stability SON for Core evolves to automated management for allocating resources from a virtualized core to different core applications 22 Copyright © Nokia Siemens Networks 2012 Customer Confidential

Liquid Core: Clear and substantial benefits Up to 65% lower energy costs Up to 75% lower site costs Up to 80% smaller footprint 50% lower service introduction costs From 2 G and 3 G data to LTE, re-use 100% of hardware investments (reuse GGSN/SGSN hardware) 23 Copyright © Nokia Siemens Networks 2012 From CS voice to Vo. LTE, re-use all open MSS hardware to reduce new investments by 50% Customer Confidential

Liquid Transport - The solution 24 Copyright © Nokia Siemens Networks 2012 Customer Confidential

Liquid Transport: A world of requirements on transport Intelligent Broadband Management • Minimized latency • e 2 e Qo. S support Liquid Radio • High capacity connectivity to every base station • Fast shifting of capacity 25 Copyright © Nokia Siemens Networks 2012 How to make transport ‘liquid’? What would it have to do? Customer Confidential Liquid Core • High capacity, high availability backbone • Flexible capacity

Liquid Transport: Intelligent flow of traffic across network layers Transport control IP Optimized service setup (MPLS & GMPLS, PCE) End-to-end IP partner integration End-to-end Quality of Service and SLA assurance Multi-Layer Integration Multi-Layer Optimization Sub-Lambda grooming and switching: OTN and MPLS-TP Optics 26 Copyright © Nokia Siemens Networks 2012 • Software-configurable bandwidth and reach • Flexible switching: Colorless - directionless contentionless - gridless • Next Generation Optical Access Customer Confidential Intelligent control Perfect connectivity services IP Transport Integration Multi-dimensional network integration Flexible Optics Zero-constraint optical networking

Liquid Transport: Flexible Optics Multi-reach from access to longhaul Flexible Optics Zero-constraint optical networking Cost effective packet transport and quick service provisioning Flexible optical and electronic switching Software definable bandwidth from 1 G to 100 G+ Software defined, multi-purpose hardware 27 Copyright © Nokia Siemens Networks 2012 Inter-linked Customer Confidential Evolutionary

Liquid Transport: IP Transport Integration Multi-dimensional network integration Maximum efficiency Optimized user experience Multi-layer integration Improved scalability Multi-Layer Optimization Self-aware Self-adapting 28 Copyright © Nokia Siemens Networks 2012 Minimized risk Software defined, multi-purpose hardware Customer Confidential Inter-linked Evolutionary

Liquid Transport: Intelligent Control Service creation and modification Intelligent Control Perfect connectivity services Service availability in seconds ‘On-demand’ capacity Assured customer experience End-to-end service quality assurance Reduced TCO Self-aware Self-adapting 29 Copyright © Nokia Siemens Networks 2012 Software defined Customer Confidential Evolutionary

With Liquid Net we innovate today’s network to meet the forthcoming broadband wave • Unleash frozen network capacity • Fluidly adapt to meet unpredictable broadband demand • Enhanced network capital and operational efficiency • Superior customer experience and new revenues Liquid Net 30 Copyright © Nokia Siemens Networks 2012 CEM 2. 0 Customer Confidential Total Expertise

Thank you Customer confidential 31 © Nokia Siemens Networks