Communications, Media & Technology

Long Term Evolution (LTE) Deployment

What Telcos need to consider before starting their 100% data journey

Mobile data traffic is outstripping voice traffic. The new digital consumers - armed with an array of mobile devices - are driving this phenomenon, which is seeing data traffic overtake not just voice, but also approach DSL usage, as users make increasing use of the same applications on both fixed and wireless networks. Demand for bandwidth continues to grow while this is not reflected in additional revenues with HSPA and HSPA+ technologies struggling to keep pace. It is increasingly evident that the need for a new technology is imminent. Seizing the profitable opportunities resulting from this boom in mobile data depends on having an infrastructure in place that can scale

600 Millions of Mobile Broadband Connections 500 400 300 200 100 0

2009-15 CAGR = 35%

2009

2010
North America Japan

2011
Asia/Paci c

2012
Eastern Europe

2013

2014

2015

Latin America Western Europe

Middle East and Africa

Figure 1 - Total mobile broadband connections worldwide, by region, 2009-20151

with total cost of ownership (TCO). Long Term Evolution (LTE) enables operators to achieve the necessary throughputs, in some cases offer an alternative to their DSL service, and add crucial premium value through mobility. 30 operators, mainly in the USA and the Nordics, have already launched commercial LTE services, and more than 200 operators have declared their intention to launch LTE in the next two years (source: IDATE: Digiworld Summit 2011). However, the evolution in access infrastructure is just the beginning. The real challenge for operators will lie in the transformation of operations and business models. To successfully deliver what digital consumers are asking for, it is fundamental that operators move their focus from selling voice minutes to selling data services where the future lies. This document describes Accentures point of view on how to successfully drive this 100% data journey.

Particular focus has been given to the aspects that will benefit from LTE deployments, and that at the same time, will be most affected by it. This report analyzes the journey through four main layers, giving answers to the following questions:

Strategy/innovation

How can operators successfully start their LTE journey? What is the key to seamless LTE adoption?

Roll-out & planning

How can the impacts of the initial roll-out be minimized? How should the network planning process be updated?

OSS

What are the impacts of LTE deployment on OSS systems? What are the key elements to focus on initially?

Services

How will LTE help to manage bandwidth-hungry services? Are there any solutions that could help to monetize them?

100% voice centric market

100% data centric market

2012
Data as an add-on to voice 2 Fundamental change in Telco business

2014-15
Data 50%

20XX
1. Source: Gartner, Inc. Forecast: Mobile Broadband Connections, Worldwide, 20092015, Jessica Ekholm, Hugues J. De La Vergne, Stephanie Baghdassarian, 22 August 2011.

Figure 2: The 100% data journey

The LTE journey starts with a robust strategy

LTE is much more than simple radio network deployment. Moving from UMTS to LTE, from legacy circuit switched services to an all-IP world, means a deep change in operations and business model. LTE deployment requires a complete value chain or ecosystem of different enhancements in the company to offer a comprehensive service to the end user. A clear transition strategy must be designed, in order to pave the way for the mid to long term while preserving current revenues. In some cases, small strategic investments in network quality can generate greater customer satisfaction improvements than huge investments in long-term transformation programs. The key is not to find an end-to-end solution for the mid to long term, but to execute a safe transition towards the all-IP world. A phased transition has to be defined in order to prevent cannibalization of the existing GSM/ UMTS revenue streams. The following high-level stages can be identified: be applied to differentiate between offerings. For example, best effort traffic under UMTS or LTE coverage should be experienced in a similar way, with LTE enhanced capabilities reserved for LTE premium data plans. Backhauling and transport networks may require substantial upgrades in order to maintain control over the customers experienced quality. Investments need to be carefully evaluated based on ROI in relation to customer satisfaction. New metrics and service models have to be adopted to measure service quality as perceived by the customer when evolving towards all-IP multimedia services.

3. Enhanced billing deployment:

to generate new revenue streams, billing systems have to be updated to enable flexible and dynamic cooperation with network capabilities. Customers will be able to change their plans and services using selfcare channels.

1. LTE RF coverage deployment:

LTE is deployed in downtown areas, with hot-spot coverage, for pure data access with improved bandwidth and latency. Commercial offerings at this stage focus on differentiating LTE enhanced capabilities from existing UMTS capabilities. UMTSLTE interoperability is needed to guarantee a seamless experience of broadband data in mobility to the end customer.

introducing new services on top of the data bearer will be enabled either by operators or OTT content providers by enhancing the current service layer. Support for voice and messaging needs to be treated with special care to avoid jeopardizing current revenue streams and customer quality expectations. The service and control layer is crucial as it acts as the gateway between the dumb bit pipe and the OTT content providers by letting out and controlling various applications and basic services. The timing and execution of the stages will differ between different markets and different operator strategies. New network capabilities such as software defined radio can help operators to make future proof investments, reconfiguring newly installed GSM/UMTS capacities in LTE when needed. Nevertheless, the LTE radio access layer is not a stand-alone domain, and transition has to be diligently planned in conjunction with the capabilities in the continuously evolving GSM/UMTS networks and support systems.

4. IMS and service layer enhancement: the possibility of

A move to LTE, and the all-IP world, will result in a transformation of revenue streams for operators. The key issue is to plan and execute a safe, phased transition.

2. Policy management deployment: growing data traffic

and use of LTE-enabled devices will shortly bring access network capacity to saturation level. To avoid this, policy enforcement rules need to

Roll-out & network planning management

Initial LTE roll-out is relatively easy to deploy, especially for operators who have already renewed radio access technology: they can enable LTE by switching on software features in their network. However the access layer is not a stand-alone domain and the roll-out has to be carefully planned in conjunction with capabilities in the backhauling, transport networks and support systems. The right trade-off between these factors should be taken into account in operator strategy for effective transformation with the LTE deployment. The network planning should be re-engineered to include such elements as backhauling, landlord agreements and reconstruction of antenna systems. The roll-out process, in the short to mid-term, will benefit from existing GSM/UMTS infrastructures, minimizing the acquisition of new sites by reusing existing ones. E.g. a 900MHz grid can guarantee good indoor coverage and throughput for LTE@800, and a 1800 and/ or 2100 grid can guarantee a good infrastructure re-use for LTE@1800. Nevertheless, the deployment of the new access layer would not leverage only the existing infrastructures. Backhauling needs to be re-engineered to guarantee correct bandwidth and latency, and new core network architecture needs to be implemented (e.g. an IMS control layer) in order to guarantee new services such as multimedia over LTE. Mindful of past experiences with optical fiber deployment, operators will need to re-engineer the site creation process in order to avoid bottlenecks in making the new LTE capacity commercially available. There is no silver bullet to hit such a delivery goal. The definition of a centralized command center
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Infrastructure unconstrained
RF interference

Service delivery constrained

Backhauling connectivity Site activation 100% on air

Stage of completion TEXT = site completion issues Expected throughput Cell sites

Figure 3 Planned vs. realized site coverage example

focused on production and tightly integrated with process improvement and system automation initiatives will help operators to manage the different process streams through an industrialized approach. The use of new network analytics solutions can improve understanding of traffic and user behaviour, enhancing network-wide visibility. The ability to gather real-time usage and user profile data enables operators to make real-time decisions regarding service plans, management policies, infrastructure investments and premium offerings which empowers them in making confident business decisions. The delivery process should be tightly connected with the network planning process. Re-engineering should take into account the end-to-end scope: from civil work infrastructure, to radio and backhaul capacity, to transport and core network capabilities. A common suite of planning tools would provide the capabilities to optimize capital-intensive investment planning; in some cases shifting investment to the most advantageous time in the future; in other cases

Site construction completed

infrastructure for 800Mhz layer deployment in rural areas while keeping 2600Mhz infrastructure separate in urban areas. All barriers not related to technology have to be taken into account in order to fully exploit LTE. A clear strategy and a detailed operating model have to be defined to address shared infrastructure requirements.

Yearly planned new sites

LTE roll-out is more than the initial radio deployment. Roll-out and capacity planning processes should be re-engineered under an industrialized approach in order to optimize capital intensive investment planning.

Site coverage

avoiding bottle-necks arising in the network due to the launch of a new service or device. There is also a great amount of valuable information in logical and physical inventories that can be exploited to improve the efficiency of the network capacity planning process and optimize the most capital-intensive network domains, radio and backhauling. The definition of centralized and common tools for all the involved streams (e.g. delivery, creation) will help rationalise and improve the use of such information, usually spread between different departments and siloed tools. Closing the loop between inventories and planning systems will allow operators to fine-tune forecasting on traffic growth versus financial and service quality. Particular attention should be given during re-engineering of capacity planning and deployment processes, in order to include a specific strategy for network sharing. Different levels of network sharing are available through LTE, allowing operators to select the best strategy per region and cluster area, e.g. sharing
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OSS modernization
The introduction of new capabilities and the coming of new innovative services will shift the vision of network operations from circuit-oriented to packet-oriented and from platform to service operations. Existing processes and tools have to be adjusted to the new requirements and this may strongly impact existing systems, justifying a complete change towards a more modern OSS domain. Impacts specific to LTE technology introduction cover the following areas:

Provisioning & Activation: to configure and activate the new services in the new LTE components Service Assurance: to manage the
new services reactively

Service Operation Center: to

centralize proactive service quality management as perceived by the customer

Network Creation & Inventory:

including capacity planning, resource design, inventory, configuration and deployment

Figure 4 OSS modernization

Applications are driving operators capacity forecasts. Facebook increased its mobile traffic consumption by 200% during the first half of 2010, while Twitter grew by 310% (Source: Allot, Mobile Trends Report, H1, 2011). The fact that services will be more device-independent and accessible from different access networks implies yet another dimension in verifying interoperability between devices and networks. Device and application certification and testing can guarantee the operator control of the potential impact when introducing new devices or applications to the market. As a side product, the behaviour and loads from various applications both in terms of signalling and user plane can be planned for.

LTE introduction will shift the vision of network operations from circuit-oriented to packet-oriented and from platform to service operations.

Network Creation & Inventory

LTE technology and the quick growth of traffic volume will require the enhancement of the OSS Network Creation & Inventory capabilities to support operators in the migration to LTE. Including: E2E capacity planning strategies: to support capacity and coverage planning and dimensioning activities of the new LTE cell sites and of the whole network Resource Design & Inventory: to design the network, links and the interoperability with existing 2G/3G networks, and model new logical and physical resources into the network inventory Configuration & Deployment: to install and properly configure the new LTE components and interfaces according to the capacity plan. During deployment, adoption of coverage tools supports progress tracking of the network deployment in terms of radio coverage 8

Provisioning & Activation

The introduction of new LTE technology enables innovative, dynamic and structured bundled services to be provisioned and activated. Enhanced capabilities require: More complex flows and orchestration features (e.g. access to multimedia content with the upgrade of broadband profile for a limited time) Specific hot provisioning features in changing user profiles Enhanced activation processes for the new LTE components Enhanced policy manager capabilities to enforce QoS according to subscriber profile Enhanced service inventory to manage the more structured product and service catalogues

Service Assurance
The introduction of new LTE network components, related devices and complex services will require the enhancement of the reactive service and network management capabilities. Including: Fault & Performance Management: to support network surveillance and performance monitoring, with KPIs defined on measures and counters available from the new components Service Troubleshooting: to execute specific use case tests, correlate data and execute specific actions to address problems as perceived by customers Trouble Ticket Management: to guarantee problem handling through enhanced logics and diagnosis trees specific to the new LTE components, complex services and devices

Service Operation Center

Increasingly complex data services enabled by LTE and expectations of higher quality by end users are pushing operators towards a customer and service-centric approach, where more structured and effective end-to-end service quality management capabilities proactively monitor the quality of running services as perceived by customers. In this context, the Service Operation Center (SOC) centralizes the capabilities and infrastructures needed to activate and oversee the continuous improvement cycle, to measure, evaluate and optimize operations, processes, performance, quality of delivered services, and client satisfaction.

Core and service layer

The boom of devices, such as tablets and multimedia-capable smartphones, has provided users with the tools to access bandwidth-hungry services on-the-go. Higher bandwidth, lower packet loss and more enhanced services will keep driving this behaviour and heightening the problem of revenue cannibalization by OTT and third party service providers. Between all of the services, mobile video is the key application driving demand for mobile traffic, and it is impacting network capacity in many markets. LTE deployment gives operators the opportunity to meet this demand, developing specific infrastructures that allow free and premium video to be differentiated, and enabling them to seize new revenue opportunities. LTE architecture does not offer support for a Circuit Switched (CS) domain for voice and video calls. As a pure all-IP solution, it leverages on IP Multimedia Subsystem (IMS) capabilities to deliver a complete IP communications service for audio, video and short messages. Nevertheless, operators want to include voice services in their LTE launch in order to avoid massive OTT adoption (e.g. Skype, WhatsApp, Viber and similar applications). In order to deliver video services, two different scenarios have taken place in the telco market: CS fallback (CSFB): a solution that moves subscribers to legacy 2G-3G infrastructures in order to obtain CS telephony services, e.g. voice calls, SMS, and supplementary services.

IMS-based voice over LTE (VoLTE): an IMS compliant solution

that delivers IP-based telephony services, e.g. voice calls, SMS, and supplementary services.

Planning a safe journey to the allIP world will be fundamental. It should include a phased transition in which 2G/3G infrastructure reuse is maximised and the cannibalisation of existing GSM/UMTS revenue streams is prevented, thereby paving the way towards an IMS evolution. Video represented approximately 50% of the worlds mobile traffic in 2010 (Source: IDATE, Digiworld Summit 2011) and is creating network capacity issues for operators across many markets. User-generated content and video streaming are the key mobile video segments with the latter starting to compete with traditional broadcast channels, as demonstrated by the similarities between mobile and TV users watching the latest American Super Bowl. The degree of usage of video depends on several different factors, including: Quality of user experience, including speed and coverage of networks Availability of video content

Radio will not limit capacity. LTE will offer, especially in the initial roll-out, plenty of bandwidth available in the radio interface. However, a simple prioritization of video traffic may not be enough to give users their desired QoS. The main challenge will be the ability to manage traffic and its prioritization in backhauling and transport networks, avoiding bottlenecks and network overloads. Operators will be driven by the users asking for more bandwidth and E2E QoS on one side, and OTT and third party service providers trying to cannibalize their revenues on the other side. A combination of commercial agreements with OTT/content providers, and the deployment of a dedicated video infrastructure will give operators the opportunity to meet this demand and enable new business models for revenue creation. The deployment of an LTE-enabled mobile CDN (Content Delivery Network), will allow for the separation of Internet-based video from revenueproducing premium video, optimizing the experience of the latter and managing the cost of delivering the former. The provisioning of services and profiles enabled by the new technology introduces a large range of profiles if compared with typical current mobile 2G/3G activation flows. Moreover, LTE will require a high level of dynamicity in terms of user profile changes and service activation/de-activation, high level interaction with BSS and a customer self-provisioning capability to be supported in real time. To support these upcoming requirements, the current network customer data layer has to evolve towards HSS functionalities and Diameter signalling. This, together with limitations in the existing HLR system disaster recovery functionality implies a deep change in the current HLR infrastructure. Operators can close the loop on all data layers on a single

platform, giving more stable services, improved data consistency and enabling new service creation with shorter timeto-market. The introduction of enhanced data capabilities will lead to even more innovative and diversified mobile devices. Smartphones, dongles, tablets, residential gateways and M2M devices probably only represent the start of a wave of increasingly specialised mobile communication devices. Enhanced remote device management capabilities are required to guarantee the activation, configuration and maintenance of the new devices.

Accenture: distinctive capabilities and resources

Accenture is the only partner that is able to combine Management and Technology Consulting, System Integration, and Managed Services, to effectively support the challenges and complexities of LTE driven transformations. Accenture has specific solutions that can help operators to speed up their journey towards LTE: from advice during spectrum auctions, to supporting infrastructure design and build, to ground breaking OSS solutions.

OSS

Integrated solutions that can minimize the impacts on the OSS and ensure cost-effective network deployment while maintaining maximum service levels.

Service Layer Evolution

The boom of new devices, such as 4G tablets and HD smartphones, is altering how users access high-definition (HD) video, causing any underlying network issues to be magnified. LTE gives operators the opportunity to meet this demand and seize new revenue opportunities.

Specific solutions to enhance the stability of services and improve data consistency, ensuring a shorter time-tomarket for new service deployments. Accenture knows that driving profitable growth during challenging economic times requires both a reduction of costs and an increase of the pace of innovation. The Accenture 100% Data Journey framework helps you to do both. Let it be your catalyst for high performance.

Network & Product Transformation

An industrialized approach that minimizes the burdens, risks, time, costs and complexity of LTE adoption: from the initial spectrum auction, to potential market and revenue estimates, to the development of innovative LTE services.

Infrastructure Design & Build

Holistic solutions to minimize the impact of initial LTE roll-out, focusing both on reducing costs and increasing the pace of innovation: from enhanced planning, to end-to-end optimized rollout management, to network sharing optimization solutions.

Voice Solution
CS fallback

Pros
Uses 2G/3G, no IMS investments Re-uses roaming agreements Good choice for initial stages but not for Greenfield implementation scenarios Single IMS point, efficient and low in complexity Convergent fixed/mobile services all-IP based Enhanced voice, video and multimedia services for new revenues and differentiation from OTT

Cons
During calls, users have to stop LTE data connections to switch to the CS domain Longer call set-up latency

NW & Product Transformation Spectrum Auction Advisory Infrastructure Design & Build Enhanced Planning Roll-Out Management NW Sharing Strategic Planning LTE Product Innovation Lab OSS Impact on OSS Service Layer Evolution Data Layer Consolidation

IMS-based voice over LTE

IMS deployment costs and time Interoperability of optional features Time to market requires OSS/BSS re-integration

Figure 5 Accenture 100% Data Journey solutions framework 11

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Contact:
Paolo Sidoti paolo.sidoti@accenture.com Emanuele Procaccioli emanuele.procaccioli@accenture.com Mats Lundback mats.lundback@accenture.com

About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 246,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the worlds most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.

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