small cells and c-ran: can they work together- mobile world congress 2014

1

Mobile Operator Strategy Analysis

Copyright © Maravedis Inc 2014.CLIENT CONFIDENTIAL

1

Small cells and C-RAN: can they work together?

Caroline GabrielResearch DirectorMaravedis-Rethink

February 2014Agenda

• The operators’ 4G challenge

• Small cells – part of a wider network

• Evolution of C-RAN

• Early adopters

• How the two architectures support each other

• Next steps to HetNet

www.maravedis-bwa.com222


222

February 2014The 4G Challenge

New topologies needed for profitable 4G• Operators must invest to

handle 13fold rise in mobile data

• With conventional technology, 4G capex will outrun revenue at least until 2017

• Solution: new infrastructure topologies and intelligence

• LTE not enough on its own – a new way to build networks is needed for 4G to deliver full benefits

3

Operator predicted capacity capex vs revenueSource: MOSA, MaRe survey 65 carriers

33

www.maravedis-bwa.com


333

0

20

40

60

80

100

120

140

160

180

200

2013 2014 2015 2016 2017 2018$

bn

Capacity investments Data revenues

February 2014Two architectures

Macro and small cell layers – new economics

• Compact small cells overtakemacrocells in numbers 2014, by capex2016

• Small cell sales reach 15.2m in 2017,CAGR of 240%

• But this could be chaotic capacity

• Move towards two architectures –distributed and metrocell

• Macro base stations increasinglydeconstructed leading to Cloud-RAN

• Intelligence focused in core or at theedge? Key to have intelligence end-to-end

4

Small cell and C-RAN macrocell growthSource: Maravedis Rethink RAN Services

Source: MOSASource: MOSA, MaRe survey 65 carriers

44



444

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

0

50

100

150

200

250

300

350

2013 2014 2015 2016 2017 2018,0

00

un

its

Macrocell C-RAN Small cells

February 2014Many tools needed

• Operators will use many tools

• Rising value of access to LTE spectrum and fiber

• But many other tools in play to achieve capacity

5

Capex spend on 4G RAN by base station type


55



555

New technology % of required

capacity increase

% of required TCO

decrease

LTE upgrade 17% 14%

Wi-Fi offload 16% 20%

Public access small

cells

14% 18%

Deconstructed RAN

(RRH and distributed

antennas)

11% 17%

New or refarmed

spectrum and carrier

aggregation

17% 9%

LTE-A key features

CoMP, eICIC

14% 10%

Adaptive

networking/SON

11% 12%

February 2014Technology milestones

C-RAN part of a broader trend

• Build on existing trend to separate radio

head from baseband, RRH, base station

hotel

• RRH becomes intelligent antenna array

• Enablers - antenna/radio integration;

Active Antenna System

• Elements of C-RAN

• Baseband processing virtualized for

>50 BTS per central server blade

• Each BTS can be further extended

with low cost antennas

• Target $50 cell site at low power

666



666

Source: VPISystems

February 2014

7

C-RAN at China Mobile. Source: Intel


77



777

Early deployersThe first trials

• China Mobile driving ecosystem

• Intel, ALU etc

• KT Cloud Communication Center

• ‘Connect and Development’ to

address intercell interference

• NTT Docomo Advanced C-RAN

• AAS trials, driving Supercell and

Phantom Cell

• SK Telecom SCAN

• Seoul 1722 RUs, 609 DUs, 200K

repeaters

• European interest eg DT

• All major small cell deployers also

February 2014What’s needed to reach reality?

Key steps still required to hit new economics

• A C-RAN which integrates fully with small cells and Wi-Fi– Key enablers – CoMP, SuperCell

• A C-RAN architecture which does not require fiber at everycell site– Key enablers – CPRI over microwave, CPRI/DAS integration,

wireless fronthaul

• Commoditized software and chip platforms– Key enablers – off-the-shelf Intel or ARM processors, common

programming languages, ultra-low cost modem

888



888

February 2014

999



999

C-RAN challenges and solutionsIntegration with small cells

• Advanced C-RAN – master BTS• Small cells and distributed antenna extend BTS• Shifts economics again

February 2014

10

C-RAN in the NFV, Intel

Source: MOSASource: MOSA, MaResurvey 65 carriers

1010



101010

C-RAN challenges and solutionsSDN and elastic networking

• Software driven capacity

• Dynamic switching of capacity in urban areas

• Move to SDN – C-RAN one app in NFV

• But specialized processing and local presence also needed

11



111111

Developments

11

February 2014

• More processing power at the edge

• Distributed core

• Virtualized core and RAN functions

• Backhaul

• Advanced SON, location and presence

• Changes to OSS/BSS approaches

• Operator confidence

Source: Intel

February 2014

Copyright © Maravedis Inc 2013.


• Macro layer continues to evolve too

• Key trends• Cloud-RAN• Super Macro

• Hybrid architectures

• Integration of these technologies• Offload• Super sites• CoMP

Cloud-RAN deploymentsSource: Tearing the Network Apart; The economics of the new RAN, Maravedis-Rethink October 2013

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0

100

200

300

400

500

600

700

800

900

2013 2014 2015 2016 2017 2018

,00

0 s

ite

s

,00

0 s

ite

s

C-RAN primary sites C-RAN sub-sites Small cells inc WiFi

Macro interworkingSmall cells achieve full potential

February 2014Evolution of HetNet

The two layers converge in Elastic network

13

The HetNet evolves. Source: ASOCS

1313



131313

• Carriers’ ultimate goal isheterogeneous network

• Full interworking and hand-offbetween macro layer and metro layer

• Different technologies (3G, 4G, WiFi)in different spectrum bands behaveas single pool of capacity

• Common core, management andpolicy tools allocate resources wheremost needed

14



Contact Information

www.linkedin.com/in/adlanefellah

www.twitter.com/maravedis

MaravedisRethink

[email protected]

http://www.maravedis-bwa.comhttp://www.rethinkresearch.biz/

(305) 865-1006

(514) 313-5656

Adlane Fellah, Customer Engagement