indoor multi operator solutions - network sharing and outsourcing
DESCRIPTION
Indoor solutions as a part of cellular mobile networks’ planning have been used for years in a way to fulfill the lack of an admissible coverage while subscribers experienced using cellular phones indoors. On the other hand, network sharing is a commonly used solution for mobile operators in order to lower their network capital and operational expenditures; that has also commonly been used for Distributed Antenna System (DAS) solutions in indoor deployments. Besides sharing, outsourcing network operation and maintenance has also been widely accepted by wireless carriers all around the world after that IT outsourcing flow, which started in late 90s, seemed to be quite promising for lowering operational costs. The raise of new technologies in this domain that always promise higher, better and more to subscribers, little by little started to become worrisome since operators began to experience lower revenues from voice services during last couple of years as well as higher demand of capacity. As a result, operators started considering deploying indoor networks as a part of their planned network, with regard to the fact that during recent years the femtocell technology became the hot topic for smallcell deployments. This way, MNOs could exploit benefits of covering customers indoors efficiently as well as offloading mobile data traffic from macro cellular networks. But a question rose afterwards; why sharing and outsourcing in smallcell networks have not taken off yet? as they have been commonly used in macro cellular networks and DAS solutions? In this MSc thesis, cooperation between different actors of the shared indoor mobile network ecosystem is studied by investigating both possible sharing models and the concept of outsourcing network operation and management for smallcell networks. This investigation has been done based on femtocells as the most suitable technology both for better coverage and higher capacity. During this process, different roles of actors in the ecosystems, the business relations between them and the main drivers of sharing were studied as well as discussing the main beneficiary of sharing, in order to find different types of cooperation and correlation in the ecosystem. The main research questions in the thesis revolve around absence of sharing either active or passively in indoor mobile networks as well as outsourcing network operation and management. Eventually, a series of possible deployment models for shared and outsourced indoor mobile networks are presented where they have been tried to be verified by a number of use cases. As a result, this study proposes a set of recommendations for different possible operators in the ecosystem in order to formulate a profitable business model for them. These recommendations are believed to enable taking off sharing and outsourcing in smallcell networks.TRANSCRIPT
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A m i r h o s s e i n G h a n b a r i
Under supervision of: J a n I M a r k e n d a h l
S P R I N G 2 0 1 3
W I R E L E S S @ K T H
Indoor multi-operator solutions, Network sharing and Outsourcing
network management and operation
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing in IMNs
• Outsourcing in IMNs
• Analysis
• Conclusion
• Looking forward
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Introduction
� Raise of mobile data consumption � Revenues from endusers
A European MNO expenditure
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How to bring maximum benefit?
Co-opetition
1. Outsource Network operation and maintenance
2. Share Networks
3. Share and Outsource
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What has happened to Cooperation
in Smallcell networks?
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Goal
We wanted to see:
Why Network Sharing plus Outsourcing Operation and Management has not been applied and/or promoted in
indoor mobile networks?
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Problem Definition
� The missing ring ¡ Proper technology, ¡ Suitable business models, ¡ Or someone who
understands both.
� Multi-operator Shared Network vs. Roaming
� Different Actors
� 3rd parties’ Qualifications
� Technical Considerations
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Current situation How it should be
indoor solu*ons & Deployment
Outsourcing
Sharing Network
Contribution
indoor solu*ons & Deployment
Outsourcing Sharing Network
MOSN or Roaming?
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing in IMNs
• Outsourcing in IMNs
• Analysis
• Conclusion
• Looking forward
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Methodology
� Data collection ¡ Secondary Data
¡ Individual interviews ¡ Group Discussions
NEC Scandinavia AB
Cloudberry Mobile
3GNS R&D Solutions
KarNET AB
Ericsson AB
Data Secoi
Market Reports
Scholarly Journals
Business Articles
Tech reviews
� Literature study
¡ Business model concepts
¡ State of the art contributions
¡ Technology acceptance theories
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Methodology
� Recommendation formulation
¡ Mediate between technology & economic values
� Data analysis
¡ Main frameworks: ÷ Value analysis ÷ Empirical data analysis
¡ Analysis of
Actors-Resources-Activities
(ARA model)
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing in IMNs
• Outsourcing in IMNs
• Analysis
• Conclusion
• Looking forward
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Existing solutions
� Repeaters
� DAS
� Picocells
� Femtocells
Indoor mobile networks
Core Network
IP/Ethernet Router
Femto Gateway
Modem
FAPISP (Internet)
“We Live and Work in
Clusters” BTS
BSC
Enterprise Femto NW
FAP
FAP
FAP
FAP
Hand O
ver
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing in IMNs
• Outsourcing in IMNs
• Analysis
• Conclusion
• Looking forward
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Drivers of Sharing
� OpEx prevention and saving
� CapEx prevention
� Improved Spectral Efficiency
� Enhanced Capacity
� Better network (coverage and quality)
� Regulations
� Less entry barriers
� Data crunch
� Spectrum allocation
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Multi-Operator Radio Access Network
Operator Green’s Core NW
Operator Red’s Core NW
Operator Blue’s Core NW
Femtocell
Local cellular networkWith femtocell
Femto GW
Internet
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Multi-Operator Core Network
Operator Green’s Core NW
Operator Red’s Core NW
Operator Blue’s Core NW
Femtocell
Local cellular networkWith femtocell
Femto GW
Internet
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Roaming
Operator Green’s Core NW
Operator Red’s Core NW
Operator Blue’s Core NW
Agreements
LocalOperatorCore NW
Femto/Pico
Local cellular networkWith pico/femtocell
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Mutual Roaming Non-Mutual Roaming
Roaming (cont'd)
Operator Green’s Covered area
Operator Red’s covered premises
Enterprise Femto
BTS
BSC
Roaming
Operator Green’s Covered area
Operator Red’s covered premises
Enterprise Femto
BTS
BSC
Roaming
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing in IMNs
• Outsourcing in IMNs
• Analysis
• Conclusion
• Looking forward
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Outsourcing
� Roots in the manufacturing industry late 1970s ¡ Cut costs
� Late 1990s ¡ IT & ICT
� Telecom Industry ¡ IT and/or Network O&M
� Different business perspective ¡ Focus on core business
÷ CRM and
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Operational Expenditure of an indoor network Authoritative third party
� Network OpEx
� Customer Relations
� Interconnect
� IT
� Other
Network O&M Outsourcees
33%
21% 10%
7%
3%
21%
5% Ericsson
Nokia Siemens
Alcatel-Lucent
ZTE
Motorola
Huawei
Others
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Network O&M Outsourcees
� Small Cell as a Service
÷ Cloudberry Mobile: a case study
Operator Green’s Core NW
Operator Red’s Core NW
Operator Blue’s Core NW
Agreements
LocalOperatorCore NW
Femto/Pico
Local cellular networkWith pico/femtocell
Premises Owner, a 3rd party
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing in IMNs
• Outsourcing in IMNs
• Analysis
• Conclusion
• Looking forward
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Actors and their roles
� MNO/JV
� Network Vendors
� Regulator
� Premises Owners
� Managed service partner (MSP)
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Detailed shared indoor mobile ecosystem
MNO / JV
End-‐to-‐End System providers
Network Element producers
Smallcell Access-‐point producers
Component & Software providers
Regulator
Premises
Premises Owners
Subscribers
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Do you remember how it should be !
indoor solu*ons & Deployment
Outsourcing Sharing Network
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Basic indoor mobile network deployment
MNO/JV
NW Vendor
Premises Owner
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Outsourcing only O&M
MNO/JV
NW Vendor
Premises Owner
MSP
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Small Cell as a Service
MNO/JV
NW Vendor
Premises Owner
MSP
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Stand alone third party
MNO/JV
NW Vendor MSP
Premises Owner
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Wholesale Sharing
MNO/JV
MSP/NW Vendor
Premises Owner
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing in IMNs
• Outsourcing in IMNs
• Analysis
• Conclusion
• Looking forward
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Research Questions
� The missing ring ¡ A proper win-win model
÷ Wholesalehsaring
� Exposed and Hidden actors ¡ MNO/JV ¡ Network Vendor ¡ Regulator ¡ Premises Owner ¡ MSP
� 3rd party qualifications ¡ O&M outsourcee
� MOSN vs. Romiang ¡ Both
� Technical considerations ¡ Spectrum
÷ Licensed vs. unlicensed
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Challenges
� Big brother dilemma
� Coverage dilemma
� ISP dilemma
� Regulator
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing
• Outsourcing
• Analysis
• Conclusion
• Looking forward
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Technology domain Business domain
� Smallcells in Heterogeneous
Networks
� Unlicensed spectrum; ¡ Femtocells
¡ Integrated Femto/Wi-Fi
� Integrated Femto/Wi-Fi access points
� SWOT analysis of proposed models
� Role of Regulatory Authorities
Future work
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Questions J
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Additional Slides
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing
• Outsourcing
• Analysis
• Conclusion
• Future work
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Cost vs. Traffic vs. Revenue
� End User (Premises)
� Spectrum
� Backhaul
� Femtocell devices
� Installation
� Operation & Maintenance Scissors Effect
Traffic volume vs. Costs vs. Revenues
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Smallcell NW from subscribers' point of view
Core Network
Modem
FAPINTERNET
BTS
BSC
Hand
Over
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing
• Outsourcing
• Analysis
• Conclusion
• Future work
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Capacity sharing at FeGW
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Sharing - Important factors
� Differentiation ¡ Traditionally: Better coverage, higher data rates and better
quality of services ¡ Untraditionally: Putting telecommunications on top of the
contents/services, business processes and consumers � Spectrum vs. Capacity vs. Coverage
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing
• Outsourcing
• Analysis
• Conclusion
• Future work
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Typical OPEX Breakdown for a European Mobile Operator
23%
27% 23%
8%
7%
12%
Network OPEX
Subscriber Acquisition and Retention
Interconnect
Customer Service
IT
Other
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Typical Network OpEx break down based on Macrocell Networks
27%
24% 21%
19%
9%
Site Rental and Electricity
Leased Line Costs
O&M + Planning System
Employee Costs
Support Syst. & General
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing
• Outsourcing
• Analysis
• Conclusion
• Future work
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Indoor network
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Most viable options taking Sharing and Outsourcing into account
1) A JV between MNOs deploys and operates the indoor networks.
2) A MNO/JV deploys the network and a third party only handles the network’s O&M regardless of
network deployment.
3) A MSP deploys the network and handles its O&M as well, for either one MNO/JV or more.
4) A MSP deploys its own Smallcell network and makes roaming agreements with MNOs/JVs for
outdoor coverage.
5) An enterprise deploys an indoor network and manages it itself making roaming agreements for
outdoor coverage.
6) The MSP (that is also a NW vendor) deploys the network and also takes care of its O&M offering a
comprehensive system based on Service Layer agreements while making roaming agreements for
outdoor coverage.
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Cross comparison of Operators and third parties points of view on Smallcell networks
From Operators’ point of view From third parties’ point of view
Type of partnership Main actor Outcome
Valid option Main actor Outcome
Valid option
Share JV Save CapEx 1 JV Added value 2
Outsource Authoritative third party Save OpEx 2 MSP Added value 2
Share & Outsource
MSP-JV Save CapEx & OpEx 2 or 3
MSP Added value 3
Enterprise Special services 5
Comprehensive System
MSP Great Flexibility 6 MSP New revenue stream 6
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Premises Owner acting as an outsourcee
MNO/JV
NW Vendor
Premises Owner
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ICOMERA case2
MNO/JV
NW Vendor
Premises Owner
MSP-‐MNO/JV
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Outline
• Background
• Methodology
• Deployment of indoor mobile NWs
• Sharing
• Outsourcing
• Analysis
• Conclusion
• Future work
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Recommendation
Operators
Traditional operators
MNO
incumbent greenfield
JV MVNO
Third party
MSP Premises Owner Auth. 3rd party
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Recommendation (Cntd.)
Traditional operators
Type of partnership MNO
JV MVNO Incumbent Greenfield
Rationale Reducing OpEx
mainly by outsourcing
Reducing CapEx mainly by sharing
Reducing CapEx & OpEx
Reducing CapEx & OpEx
Recommended option 2 or 3 3 6 6
Justification
They already have SMP and are not
willing to risk their position by sharing
They have enough financial
credibility to implement their
solo network
Sharing is the origin of JVs so, reducing costs is
a quite convincing
factor
SMP deficit is their reason to
be a virtual operator so,
lowered costs is a KPI
Further recommendation Act as a CS provider
Benefit from CSs and focus more on
core business activities
Outsource as much as possible
Focus on CR and stay flexible
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Recommendation (Cntd.)
Third party
Type of partnership MSP Premises
Owner Auth. 3rd party
Rationale Generate new revenue stream
To offer specific services
To obtain added value
Recommended option 6 5 2
Justification
Their philosophy is to partner-up
with other actors and offer CSs
They try to cover a niche market
They are believed to be specialists in O&M that do the
job in an optimized manner
Further recommendation ---
Create a new format of model 6 and benefit from
CSs
---
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Smallcell Repeater
� Adds both coverage and capacity, with ability to
improve data rates
� Generates its own signal
� Reduces uplink interference by removing handsets
from outdoor network
� Provides full control of handover
� Fault and performance monitoring and full O&M
support
� Generates operator-specific signal
� Requires broadband IP connection to connect back
into network
� Can feed a DAS system
� Only extends coverage, no additional capacity (feeds
off macro network)
� Requires donor antenna which can be expensive to
install on roof
� The repeater itself can cause uplink interference
creating radio planning problems
� Handover neighbors same as the macrocell
� Most repeaters are unmanaged with no automated
fault reporting
� Cheap repeaters amplify competitors’ signals
� Works in isolation, but needs nearby macro site
� Can feed a DAS system
Smallcell vs. Repeater