OperatorStrategiesforMobileBroadband

MrcioNunes DiretordeEngenharia

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

BroadbandinBrazil
Numberofsubscribers(inmillions)
CAGR25% CAGR155%
10,0 11,5 14,0 15,0

Broadbandpenetration
CAGR23%
7,2%

7,8%

CAGR155%
5,2%

6,0%

7,7 5,7

7,0

4,1% 3,1%

3,6%

2,3 0 2006 2007 0 2008 2009 2010E

1,2% 0% 2006 Mobile Broadband 0% 2007 2008 2009 2010E

Fixed Broadband

MobileBroadbandislikelytoovertakeFixedBroadbandin2010
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source:Teleco;Huawei

BroadbandinBrazil
BroadbandPenetrationin2009
9,5 7,1 6,0 3,6 2,1 2,5 0,5 World Brazil Argentina Chile Mexico 10,0 9,8 9,2
Fixed
Mobile

MobileBroadbandParticipationinCellPhonesBase

World
12,8% 8,2% 5,7% 1,6% 2004 3,3%
1,4%

Brazil
6,0% 4,0% 2,0% 2,5% 2,9%

10,1%

2005

2006

2007

2008

2009

4Q08

1Q09

2Q09

3Q09

4Q09

jan/10

3yearsdelay

MobileBroadbandinBrazilhasroomtogrow
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source:Teleco;Huawei

Trends Devicesophistication
WebBrowsing Websearch PublishingandSharing
520MHzprocessor runningWindowsCE5.0. MicrosoftOfficeMobile, 256MBofRAM,20GBhard drive,WiFi,Bluetoothand triband GSM/EDGE/CDMAEVDO networkaccess,Ethernet andUSBports,LCDtouch screen,Webvideo SXGenultramobilecomputer camera,andafoldout QWERTYkeyboard.

SamsungSGHV820L
1GBmemory, WiFi,HSDPA, 2Mpixels camera

Web

DigitalTV, GSM/HSDPA,28MB memory,2Mpixels camera,WiFi

BlackBerryBold

Entertainment

Gaming Audio Video

3,5inchesWidescreen, Touchscreen,32GB, WiFiwebbrowsing,

Mediaplayer,480x272 pixelwidescreen, 1,8GB,WiFicapabilities

WindowsMobile6,800 MHz,1GBRAMmemory, 40GBHD,WiFi,Bluetooth, 3G(HSDPA),Webcam, Biometricreader,Touch Screen

Communication

Voice Video Messaging

Bluetooth,7.1Dolby SurroundSound, USB2.0,BluRay,80 GB,1.080p

iPodTouch SonyPlaystationPortable
GSM/HSDPA, 160MB memory,GPS, 5Mpixels camera,WiFi, Mp3player

HTCShift

UMTS,HSDPA,Wi Fi,EDGE,GPS, Bluetooth,Music, PushMail,Calendar

Sony Playstation3

Nokia N95

iPhone

ThedeviceweformerlyknewasthecellphoneisevolvingintoanInternetenabledconsumerdevice
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source:Vendorsites

Trends Devicesophistication
GlobalDevicesSales(inmillions) SmartphonesmarketshareinBrazil

SmartphonesareagainingmomentuminBrazil
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source:Teleco;Huawei

Trends Sophisticateddevicesdrive broadbandgrowth

83%

60% Utilization rate

59% 50%

30% 25% 13% 7% Email Web search Web services iPhone 6% Social Networks 7% MobileTV/ Video 2% Online games 21%

Marketaverage

Improveduserexperiencedrivebroadbandgrowth
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source:MMetrics;Nielsen;Cisco

Trends MobileDataTrafficGrowth
3,6EB
4% 5% 8%

CAGR108%

17%

2,2EB

1,2EB
66%

0,6EB 0,09EB
2009

0,2EB
2010 Video 2011 Web/Data/Other 2012 P2P Gaming VoIP 2013 2014

Videowilldrivemobiledatatrafficgrowth
*EB=Exabyte=1.000.000TB;Source:CiscoVisualNetworkingIndex2009 2014

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source:Cisco

MobileBroadbandevolution
Devicesevolution
Convergenceofcommunications
Communications Webcapabilities Multimedia

Connectivitytovariousaccessnetworks

Usersevolution
UserbehaviourtrendfromWired toWireless Endusersutilizingincreasingly advancedcommunications servicesandapplications
SameRichAppsandServicesinall environments(Multimedia,High bandwidth,latencydependent) ConsistentQualityofExperience

Networkevolution
Highdatarates AllIPNetwork QoS Coexistenceandintegrationof differentaccessnetworks

Individualsbecomingcontent creators TrendsaredrivingRANevolution

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

RANTechnologiesEvolution

y enc nce ici eff xperie er igh sere H u ter F as

RANtechnologiesevolvingtowardsLTE
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
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HSPAEvolution

84
y e nc enc cie eri ffi xp re re he s e g Hi r u ste Fa

Combinations

42
MIMO
WRAN P7FP

Multi Carrier
WRAN W10A

28

21

15 codes, 64QAM
WRAN P7

10 codes, 16QAM
WRAN P5

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

Portugal
AllonHSPAEvolution
Thousands 3 500 3 000 2 500 2 000 1 500 1 000 500 0 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Mobile Broadband Fixed Broadband

3millionMobile Broadbandsubscribers YoYgrowth55%

21
Mbps

Allthreemobile operatorslaunched HSPAEvolution with21Mbps

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source: ANACOM, Portuguese telecom regulator #

RANEvolution

IndustryforecastshighadoptionratesforLTE
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source:Qualcomm

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RANEvolution
UMTS Networksin service Countriesin service Networks Planned/In deployment 346 140 79 HSPA 325 137 92 HSPA+ 42 24 N/A LTE 2 2 135

137 LTE operations in 55 countries to be deployed

Up to 25 LTE networks in service by end 2010

HighnumberofLTEcommitments
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source: 3GAmericas

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Backhaulbottleneck
GSM

14.4Kbps
RBS

2.5G/3G

384Kbps

RBS
RBS

HSPA

3.6Mbps
RBS

RBS

BSC
RBS

14Mbps
RBS

HSPA+ 42Mbps
RBS

RNC

RBS

RBS

LTE
Source: Ericsson

80160Mbps

Backhaul
1
14

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

NetworkArchitectureevolution
Verticalnetworks Transition ALLIP

MobileService

MobileService MobileService IPMPLS Transport IPMPLS Ethernet Access TDM ATM

Transport

FrameRealy

Transport

Access

Evolution

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

FrameRealy

Ethernet

TDM

IP

ATM

Access

IntegrateandSimplify
15

NetworkArchitectureevolution
IPextensiontoaccesslayers Trafficoptimization Flexibilityinexpansions

RAN
2 IPRANMETROETHERNET CoreIPMPLS 1

MetroEthernet IPRANenabler

IMS LTEandcurrentaccess networksintegration enabler NewServices

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

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RANevolution Coverageexpansion
GSMcoverageoftodaynormallyverygood HSPAcoveragestillnotshowingitsfull potential LTEisaroundthecornerbutwillnotprovide countrywidecoverageinmanyyears
HSPA HSPA LTE

HSPA

GSM/EDGE

GSM/EDGE

HSPAcoveragewillgrowbeforeLTElargescaledeployments
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
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IPupgrade Singleinterface NativeIP/Eth

Transportconvergence Optimize CommunicationNetworks

Aggregation

IPupgrade Singleinterface NativeIP/Eth

BTS

BSC

ATM/IP
NodeB

RNC

eNB

Fullyflexiblenetwork Withlowesttotalcostofownership AllIPRANoverEthernet

CGW

BTS/NodeB/eNodeB CommonSite

BSC/RNC/CGW

GOAL:ONESINGLEIPTRANSPORTINTERFACE@RAN
Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
Source: Ericsson

NetworkArchitectureevolution
Airinterface MobileBackhaul RANEDGE

CoreIP/MPLS SGSN MGW GMSC

BSC

BTS

SDHRings
GGSN
NodeB

PSTN

RNC

ATMoMPLS FRoMPLS TDMoMPLS

IP/MPLS MGW

Internet
BTS

BSC

MSS
NodeB

SDH/PDH Microwaves

RNC

CellSites

Aggregation

Core
19

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

NetworkArchitectureevolution
Airinterface MobileBackhaul RANEDGE CoreIP/MPLS SGSN MGW GMSC
BSC

BTS

PSTN

GGSN
NodeB

RNC

IP/MPLS

ATMoMPLS FRoMPLS TDMoMPLS

IP/MPLS MGW

Internet
BTS

BSC

MSS
NodeB

RNC

CellSites

Aggregation

Core
20

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

NetworkArchitectureevolution IMS
RedesSegmentadas Services IMS Services

Applications 2G 3G LTE IMS 2G 3G LTE

Transport,SwitchingandAccess

Transport, Switching and Access IMSastheenablerofLTEandcurrentaccessnetworksintegration

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010
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KeyTakeaways
TrendsaredrivingRANevolution MobileBroadbandislikelytoovertakeFixedBroadbandin2010 ThedeviceweformerlyknewasthecellphoneisevolvingintoanInternetenabledconsumerdevice Videowilldrivemobiledatatrafficgrowth RANtechnologiesevolvingtowardsLTE StrongindustrydriversforLTE IndustryforecastshighadoptionratesforLTE HighnumberofLTEcommitmentsworldwide Backhaulbottleneck Networkarchitectureevolutiondemands AllIPTransportconvergence RANevolvestoIPandtheBackhaulevolvestoEthernet IMSastheenablerofLTEandcurrentaccessnetworksintegration

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

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Thankyou!
MrcioNunes Marcio.Nunes@claro.com.br

Mobile Broadband Outlook for the Americas, Rio de Janeiro, 26 April 2010

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