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Target Networks in 5G EraEmbracing Mobile Network 2020s

2 Target Networks in 5G Era = 4.5G Evolution + 5G NR

ContentsForeword 02

1 Opportune Development of Target Networks

3 Evolve SingleRAN with 5G Technology Make Sites 5G-Ready in Evolution

4 Mobile Cloud Transformation

3.1 Large-scale 4T4R Deployment: Foundation for 5G

3.2 Massive MIMO for Hotspot

3.3 Antenna Modernization

3.4 Sites Ready for 5G NR

3.5 Indoor Digitalization

3.6 Site Acquisition

4.1 Flexible 5G-Oriented CloudRAN Architecture

4.2 CloudAIR Spectrum Sharing

4.3 Uplink and Downlink Decoupling for Enhancing 5G Coverage

4.4 Evolution of All Spectrum Towards 5G

4.5 NSA Architecture Anchored on LTE for Initial Stages of 5G

5 New Capabilities Enable New Services and Growth

6 Vision of Target Networks in 5G Era

5.1 VoLTE and Video Drive Operators' Revenue Growth

5.2 WTTx Emerges as Fourth Access Mode

5.3 Mobile IoT Will Shift from Narrowband to Broadband

5.4 Wireless X Labs Explore New Businesses

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0607080910

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Foreword Digital transformation is at a critical juncture, with a diverse range of industries making changes that signifi-

cantly transform the way people live and work. These shifts have been driving advancements in the financial,

transportation, manufacturing, governmental, and many more sectors. Innovative mobile broadband tech-

nologies, an underlying infrastructure, are a key driving force behind the digitalization of all walks of life. With

the rapid development of 5G, an increasing number of new applications and business models will reshape

the social and economic formation.

Such changes will stimulate strategic planning regarding industry opportunities, technical evolution,

network architecture, and other areas. Telecom operators are growing increasingly concerned with the

creation of a new target network to maximize return on investment (ROI) and achieve business success while

maintaining a competitive edge for the future. Global operators are promoting early deployment of 5G and

innovative business models through continuous 4G evolution. This has led to today's business achievements

and has laid a solid foundation for the huge potential of 5G.

With a gradual consensus being formed for the entire industry, all related players in the industry chain will

develop close collaboration to embrace a brighter future for the wireless network industry.

Continuous 4G evolution, a road to 5G!

Dr. Peter ZhouCMO, Wireless Network Product Line, Huawei

TARGET NETWORKS IN 5G ERAEmbracing Mobile Network 2020s

02


Opportune Development of Target Networks

Target Networks in 5G Era = 4.5G Evolution + 5G NR

As 5G standardization and commercialization accelerate, the world is about to witness a transition from 4G to 5G. At this

critical time, operators must bear in mind the ultimate goals, make advanced preparations, and engage themselves in

the deployment of 5G-oriented target networks. Highly competitive networks will play a decisive role to the success of

5G.

Leading global operators now have clear viewpoints about future target networks. For example, a Chinese operator

perceives the addition of the 5G new radio (NR) to the continuously evolving LTE system as the defining feature of 5G era

target networks. According to a Japanese operator, 2020 will witness the co-existence of 5G and the ongoing evolution of

4.5G, while users can enjoy Gbps-level data rate. An operator from Korea believes that target networks will adopt the

None-standalone Architecture (NSA) with LTE as the anchor. C-band and millimeter wave (mmWave) will be added for 5G

while sub-3 GHz bands are going to be used for continuous LTE evolution. The European Union (EU) generally agrees with

Japan and Korea and notes that 5G deployment will begin in urban areas.

As a Chinese saying goes, "It is better to start weaving your fishing nets than merely coveting fish at the water." Instead

of admiring the myriad promises of 5G, related parties must act now to invest in 5G target networks, build early 5G

competitiveness, and cultivate new businesses. More importantly, operators can reap the benefits of 5G on 4G networks,

while smoothly shifting users from LTE to the next generation of mobile networks.

Huawei believes that network competitiveness in the 5G era is not solely decided by the newly introduced 5G spectrum,

but by multiple radio access technologies(RATs) and multiple frequency bands. In other words, target networks in the

5G era will be marked by the evolution of all spectrum, the fusion of all RATs, and the development of all industries.

03


04

Evolution of all spectrum: C-band is a globally harmonized 5G spectrum and is set to be the first band for commer-

cial 5G deployment. mmWave will serve scenarios such as home broadband as well as indoor or outdoor hotspot

locations. Sub-3 GHz spectrum will support continuous LTE evolution. Network-wide 4T4R will be the base for

future networks with Massive MIMO deployed at hotspot areas. Sites will become ready for 5G NR and all spectrum

will be available for 5G.

Fusion of all RATs: More than 20 global operators are shutting down or are planning to withdraw from 2G or 3G

services. The spectrum resources released from legacy RATs are refarmed for 4G. Continuous 4G evolution is

constantly improving user experience while co-existence of 5G and 4G evolution is expected to arise as the

long-term standard. Just as new technologies once brought 4G to 4.5G, the introduction of nTnR, Massive MIMO,

"one-plug in, all 5G" solution, antenna modernization, and other technologies on current 4.5G networks can facili-

tate smooth 5G-oriented evolution.

Development of all services: As 5G technologies mature, voice, video, and other conventional B2C services will keep

getting better, while B2H services such as WTTx and B2V services such as NB-IoT will also become more advanced.

Various innovative businesses such as Internet of Vehicles (IoV), drones, and AR/VR are currently under develop-

ment and will flourish in the new 5G era.

Figure 2-1 Essence of target networks

Target Network 2020s

Development of All Industries

B2C: Voice, videoB2H: WTTx

B2V: NB-IoTMore new businesses…

Sub-3 GHz: Continuous LTE evolution

C-band: 5G's first commercial spectrum

mmWave: Hotspot capacity boosting

2G/3G: Shut down, releasing

spectrum for 4G

4G: Continuous evolutionCo-existence with 5G

Fusion of All RATs

Evolution of All Spectrum


05

Evolve SingleRAN with 5G Technology

Rapid growth of MBB services such as mobile video has generated an exponential surge in data traffic, creating capacity

and user experience challenges for various operators. Operators must discover greater spectral efficiency, and multi-

ple-antenna technology is an effective solution to help tackle these concerns.

Network-wide extensive 4T4R deployment can greatly boost cell capacity and enhance cell coverage. Cell edge users in

particular will be able to enjoy better voice and video services. These improvements in coverage and user experience will

become more pronounced with the enabling of software features like TTI Bundling(TTIB) and Turbo Receiver.

4T4R can offer a substantially enhanced user experience. As the terminal is upgraded from 2R to 4R, the single-user

downlink peak rate can be increased to 1.8 times, while that in the uplink will increase to 1.4 times. With the deployment

of 5G, shifting from an LTE 4R handset to a 5G NR device will produce a further 1.51 times and 1.23 times improvements

in single-user downlink and uplink peak rates respectively.

Figure 3-1 Enlarged coverage with 4T4R

3.1 Large-scale 4T4R Deployment: Foundation for 5G

Legacy 2T2R @ 1.8 GHz

+3 dB 4T4R @ 1.8 GHz

+2.5 dB*

2T2R 0.81 km

0.989 km

1.163 km

1800 MHz LTE

4T4R

4T4R*

*Features

TTIB+Turbo Receiver

MCS/RB Traversal for Best Transmission Block(TB)*

Make Sites 5G-Ready in Evolution

4T4R Enlarging Coverage


06

The idea of deploying 4T4R as the foundation for 5G has been widely accepted throughout the industry. In terms of termi-

nals, major manufacturers including Huawei, Samsung, and Sony have rolled out a total of over 20 models of 4R termi-

nals. This indicates the arrival of a new stage of smart terminal development marked by Gbps-level data rates. As 4R

terminal's penetration rate rises, the gains of 4T4R will also continue to increase. As for networks, more than 60 opera-

tors worldwide now boast large-scale commercial 4T4R deployment and this figure is expected to exceed 100 by the end

of 2017.

Figure 3-2 Gradual user experience improvement as 4R terminals increase

Figure 3-3 High rises with heavy traffic, severe interference, and suppressed uplink

3.2 Massive MIMO for Hotspot

Massive MIMO provides independent narrow beams targeted at multiple users and transmits data through a user-spe-

cific space isolation system. This helps increase system throughput by dozens of times. Leading operators around the

globe have already begun deploying commercial Massive MIMO.

Better User Experience as 4R Terminals Increase

2T2R LTE

4R LTEterminal

Heavy Traffic High Rise Severe Interference Suppressed Uplink

* UL/DL data rate* Simulation result with some 5G NR features

4R 5G NRterminal

1.4×（UL）

1.8×（DL）

1.23×（UL）*

1.51×（DL）*

4T4R LTE 5G NR


07

China Mobile has adopted Massive MIMO to serve high rises that suffer heavy traffic, severe interference, and

suppressed uplink. According to the test results, Massive MIMO delivers pronounced enhancement in capacity, coverage,

and user experience. At present, Beijing, Shanghai, Tianjin, and many other Chinese cities have all seen large-scale

Massive MIMO deployment. This technology has been used for the Tianjin National Games, the BRICS Summit, concerts,

and a myriad of other grand events. This technology has proven to enhance user experience in heavy-traffic areas such

as central business districts (CBDs), business streets, high rises, university campuses, traffic hubs, and sports venues,

while helping to unleash traffic demand.

SoftBank Japan is another operator with large-scale commercial Massive MIMO deployment. In September 2016,

SoftBank launched a Massive MIMO-based "5G Project". The test reveals that even in densely-populated areas with

heavy traffic such as stations and city centers, the average data rate remained stable at around 400 Mbps. Large-scale

commercial Massive MIMO deployment enabled SoftBank to continuously deliver superior user experience. The combi-

nation of Massive MIMO and highly competitive data packages was the perfect pairing to attract many new users for

SoftBank. This year, SoftBank has sought to increase its investment in commercial Massive MIMO deployment. It has

also released the "50 GB plan" with its industry-leading network and user experience as a solid base.

The traditional approach requires the addition of new antenna and radio frequency modules whenever new bands are

introduced. Such mode often results in heavily-loaded towers, high rents, and difficult maintenance, leaving no space for

either band addition or the deployment of 4T4R and Massive MIMO. An alternative solution must be realized to help meet

the network construction demands of 5G.

The latest "all-in-one" passive antenna solution is Huawei's answer to alleviate such concerns. A single antenna can

support all sub-3 GHz frequency bands and high-band 4T4R. The site will grow simpler, towers will be free from heavy

equipment, and more space can be reserved for future addition. When it comes to 5G deployment, all operators are

required to do is to simply add 5G antennas to the reserved space on the mounting poles. Two antennas per sector will

then be able to support all RATs.

Figure 3-4 SoftBank's release of Massive MIMO-based "5G Project"

3.3 Antenna Modernization


08

After incorporating advanced solutions such as 4T4R, 8T8R or even Massive MIMO, antennas, radio frequency (RF)

modules, and other 4G hardware are ready for 5G-oriented evolution. With just a few simple extra steps, sites will be fully

5G compatible. This smooth evolution process features low demand on equipment, reduced costs, and decreased site

operating expense (OPEX).

Huawei's latest BTS5900/DBS5900 multimode base stations support 5G NR, 4T4R, and Massive MIMO. When it comes

to 5G deployment, operators only need to simply add new 5G NR baseband boards and upgrade the software, making

"one plug-in, all 5G" a reality.

The industry-leading 5000 series RF modules feature innovative radio platform and multi-antenna technologies, boast-

ing high performance and low power consumption. One of the low-frequency band modules supports sub-1 GHz (700 to

900 MHz) and has 2T4R as its basic configuration. The other supports sub-1 GHz to sub-3 GHz, and features 4T4R

configuration (multiple blade RRUs or multi-band modules). The 5000 series new platform boasts one-time deployment

and instant payback, protecting operators' investment while accelerating the introduction of 5G.

Figure 3-5 Antenna modernization

3.4 Sites Ready for 5G NR

Figure 3-6 Site modernization

All-in-One Modern Antenna

Two antennas per sectorDifficult new antenna addition

One Plug-in, All 5G

5G-Ready Site

All-in-One

Blade RRU

BBU5900

Reserved for

Massive MIMO

4T4RMassive MIMO

5000 Series Radio Units

BBU5900 Blade RRU EasyMacro Massive MIMO

2x capacity

72 4T4R cells

2G/3G/4G/5G in one module

New BBP boards with maximum

capacity of 64T64R massive

MIMO (3x3x100 MHz)

4G

Ant 14-port

Now

Ant 26-port

900

800

2600

2100

1800

Ant 114-port*

900

800

700

L-band

18004T4R

C-band Massive MIMO

21004T4R

26004T4R

Future

AAU 1

5G AntennaAll-in-One Passive Antenna

Power consumption: 5% to 15%

Size: 40%

PIM: 75%

Installation time: 30%

Multi-antenna technology


09

Based on the analysis of the abundance of data on the live network, over 70% of the data traffic in mobile networks is

generated indoors. With the upcoming arrival of the 5G era, indoor networks emerge as a competitive focus. Much atten-

tion must be paid to indoor network quality and capacity improvement. Traditional indoor distributed networks use the

distributed antenna system (DAS) originating from the 2G/3G era to solve the issue of weak indoor coverage. In compari-

son, the LampSite3.0 indoor digital solution improves deployment efficiency and reduces costs. It supports 5G-oriented

evolution in terms of network architecture and main hardware platforms, protecting operators' mid- and long-term

investments and meeting requirements for 5G-oriented service experience.

Figure 3-7 LampSite 3.0 supporting a smooth evolution to 5G

Table 3-1 DAS and LampSite technical comparison

3.5 Indoor Digitalization

DAS

Transmission

Evolution capability to 5G

User experience

Feeders are used to transmit analog RF signals (signal attenuation increases with signal frequency).

CAT5/6 Ethernet cables are used to transmit digital RF signals (signals are not sensitive to frequency).

Passive components such as couplers and antennas do not yet support C-band and can’t support 5G NR

5G can be supported by embedding a CAT5/6 Ethernet cable and adding pRRUs supporting 5G NR (all cables are unchanged).

Multiple feeders and antennas are required for the support of MIMO (deployment is difficult and expensive).

Gbps-level user experience can be provided with the support of multiple frequency bands (900 MHz to 2.6 GHz), multiple RATs including 2G, 3G, and 4G, virtual 4T4R, and 5CC CA.

LampSite

Operator ABTS/RRU

DCU

CPRI

RHUB RHUB

Supporting 5G by Adding 5G NR pRRUs

Sub-2.6 GHz 4 bands in one

New 5G NR pRRU

pRRU pRRUCAT5/6 CAT5/6

Sub-2.6 GHz 4 bands in one

Future proof with embedded cables

Operator DBTS/RRU


In 2016, Baotou China Unicom deployed the Huawei LampSite solution in Baotou Vocational Education Campus. The 4G

peak download rate in the campus increased from 29.3 Mbps to 130.4 Mbps. However, since February 2017, campus

network traffic has increased by five times within one month after the release of high-traffic packages. The cell capacity

over the 1.8 GHz band deployed at the early stage becomes saturated and so an urgent need exists to implement rapid

capacity expansion. Solutions such as indoor cell split and 2.1 GHz LTE carrier usage are then adopted based on an

analysis of current traffic conditions. The duration between the customization and deployment of the LampSite capacity

expansion solution is limited to only one week. After the expansion, the daily traffic in the campus is increased to 2.5 TB.

Compared with the traditional DAS solution, LampSite does not require secondary design, coordination and construc-

tion. This simplifies capacity expansion and shortens the construction period, facilitating the service development of

Baotou China Unicom in the campus market.

With the rapid development of mobile broadband services and continuous network evolution, more frequency bands and

sites are required to provide services and meet the requirements of ubiquitous coverage and heavy traffic. However, the

traditional approach of additional macro site deployment encounters difficult site acquisition, complex approval proce-

dures, and high OPEX. This impacts the speed of site deployment, which cannot meet the requirements of growing

services. For example, site acquisition in some areas can generally require two to six months, with site construction

lasting for 12 months. The total construction, energy, and site rental costs can account for up to 55% of total cost of

ownership (TCO).

TubeStar, PoleStar, and RuralStar reconstruct site TCO and enable cost-efficient site deployment in various scenarios.

These new site solutions help operators reduce site acquisition difficulty, decrease construction costs and site rentals,

and resolve the issue of transmission and power supply. These solutions efficiently provide basic coverage and excellent

user experience to increase both network capacity and user quantity.

TubeStar: This solution enables the pipe to be integrated with the cabinet with the bottom diameter of 800 mm and

built-in main equipment. The large-capacity cabinet can support five to seven frequency bands. The footprint is reduced

from 30–100m² to 2m² and the site acquisition period is shortened from six to two months. The 5 year TCO can be

reduced by 30%. In addition, Massive MIMO evolution ports and 8T8R expansion cabins are reserved to further support

5G-oriented evolution.

PoleStar: This pole-mounted site solution is applicable to reused poles, new poles, and aggregation sites. This solution

shares traffic, improves deep coverage, enhances coverage in hotspots, and fills coverage holes (TCO reduced by 40%).

RuralStar: This solution meets requirements for low costs and accurate coverage in remote rural areas. It uses idle LTE

spectrum in rural areas and non-line of sight (NLOS) transmission of the relay to convert tower-mounted sites into

pole-mounted sites, providing wide and accurate coverage for remote villages. The TCO can be reduced by 30%, with ROI

obtained within three years of a village with about 2.000 people.

3.6 Site Acquisition


11

Along with the improved network hardware capabilities, the future network architecture must offer enhanced features

to face several challenges brought by various services. The entire mobile network architecture is redesigned based on

the cloud technology to include resource management, multi-connectivity, and flexible architecture. As a result,

unit-based on-demand deployment and agile service provisioning are realized to help handle any future unexpected

eventualities.

Compared with the traditional RAN architecture, CloudRAN splits the real-time part and non-real-time part of the base

station to form a CU/DU split architecture. CU and DU are short for central unit and distributed unit, respectively. Huawei

CloudRAN allows the CU to be deployed on different platforms. CU and DU can be deployed centrally or separately. For

example, the CU can either be deployed on a common commercial off-the-shelf (COTS) server or be deployed on a BBU or

CloudBB in combination with DUs. CloudRAN's flexible architecture can accommodate diverse 5G services with the CU

deployed in different positions of the network based on service latency requirements. For example, Internet of Vehicles

(IoV) requires a low latency, and the CU is ideally deployed in close relative proximity near to the base station.

Figure 3-8 Three new "Star" sites

4.1 Flexible 5G-Oriented CloudRAN Architecture

Mobile Cloud TransformationEnables Flexible and Agile Architecture

Camouflage cover

3*RF Antennas

MW Antenna(Optional)

3*Massive MIMO(Reserved)

Combiner Cabin

RRU Cabin

BBU/Power/TX

Cabin

Battery Cabin

Max 15*RRUs

MW OR

Easy

Macro

Book

RRU

Yagi Antenna

RRN3911

BBU 3910C

RRU5909

2~4km

Blade BBU

Blade Power

Blade Battery

PoleStar RuralStarTubeStar

Antenna

Section

(4m)

Extension

Section

(3.7m/9.7m)

Equipment

Section

(10.3m)

Footprint~2㎡@24m

18m/24m

Height

3 “Star” Help to Acquire more Sites for 5G Preparation

Max

2*BBUs

Max

5*3000W

Transmission

(Fiber or MW)

Battery

4*100AH


12

Figure 4-1 CloudRAN, Agile Architecture for Diversified Services

Huawei is committed to exploring and promoting CloudRAN standardization and commercialization.

CloudAIR spectrum sharing uses innovative technologies to handle spectrum resource restrictions on RATs, remove the

bottleneck for introducing new RATs, and change the spectrum usage method from refarming to sharing. This allows

different RATs to share the same spectrum and maximize spectrum value. The CloudAIR spectrum sharing solution has

the following characteristics:

More efficient use of air interface resources: Spectrum cloudification allows for faster deployment of new RATs and

improves user experience using the same air interface resources.

Faster introduction of new RATs: This requires the existing spectrum to be shared by the new and legacy RATs based

on permeability and traffic changes.

Long tail issue of legacy RATs: In many regions, full disuse of 2G and 3G networks is expected to be a lengthy

process. CloudAIR allows new and legacy RATs to dynamically share spectrum resources, automatically reallocating

the majority of spectrum resources to new standards based on traffic requirements.

Huawei proposed the concept of CloudRAN at the Global Analyst Summit in April 2016, released the CloudRAN

solution at 2016 Global Mobile Broadband Forum, and published a white paper at the 2017 Global Analyst Summit.

The split architecture of CU and DU in CloudRAN has been recognized by the 3GPP standard organization and will

be included in R15 by Q2 2018.

Huawei and tier-1 operators have implemented Proof of Concept (POC) tests on CloudRAN to verify the flexible

deployment and gains on network performance. CloudRAN is scheduled to support pre-commercial use in Q1 2018

and achieve full commercial use in Q4 2018 along with 5G.

4.2 CloudAIR Spectrum Sharing

<5ms Latency >20ms Ultimate experience & reliability

Indoor Navi.

API

API

API

Months Months

TTM

18 3-6Video Ace. Precise Ads.

On-Demand Deployment Network Convergence Adaptive Openness

ADS

Agile Service Delivery


13

1-Dimension Sharing 2-Dimension Sharing

GSM

200 KHz

Frequency

Frequency

NR RB LTE RB

LTE

180 KHz

Time

CloudAIR spectrum sharing mainly includes GU, GL, UL, as well as LTE and NR spectrum sharing and other solutions. GU,

GL, and UL spectrum sharing enable different RATs to implement sharing in the frequency domain. Both 4G and 5G are

based on orthogonal frequency division multiplexing (OFDM). Therefore, LTE and NR spectrum sharing allows for the

flexible sharing of more frequency- and time-domain resource blocks, facilitating a quick introduction of 5G NR on

low-band spectrum. Up to now, the LTE and 5G NR spectrum sharing standardization proposal has been adopted into

3GPP, and will be concluded in Release 15.

The higher frequency leads to larger penetration loss and poor coverage. For example, 3.5 GHz (as the first commercially

used 5G band), provides insufficient coverage. There is a 13.7 dB gap in the uplink coverage between the 3.5 GHz and 1.8

GHz bands, and the traditional solution of increasing the number of sites is often implemented to help bridge this differ-

ence. However, site acquisition is difficult and the cost is high. As a result, Huawei proposes uplink and downlink decou-

pling to efficiently solve this troubling dilemma. Typically, 3.5 GHz is used in the downlink to transmit signals and 1.8 GHz

or 3.5 GHz is used on the terminal side to send signals. This provides the same uplink and downlink coverage as that of

1.8 GHz. And it is confirmed that 5G NR uplink and downlink decoupling will be included in 3GPP Release 15.

Figure 4-2 CloudAIR spectrum sharing

4.3 Uplink and Downlink Decoupling for Enhancing 5G Coverage

GSM&LTE Sharing NR&LTE Sharing


14

UL and DL Decoupling Enlarging 5G NR Coverage

3.5 GHz Covering the Same Distance with 1.8 GHz

1.8 GHz+3.5 GHz Co-Site

Will comply with 3GPP Release 15.

Enlarged Coverage

3.5 GHz UL Coverage

3.5 GHz DL Coverage

1.8 GHz Coverage13.7 dB

[email protected] GHz

[email protected] GHz

Figure 4-3 Enlarged 5G NR uplink coverage with uplink and downlink decoupling

C-band and mmWave are critical new spectrum resources for 5G. C-band (as the primary capacity layer), uses

large-scale antenna technology to improve network capacity and coverage. mmWave (as the complementary capacity

layer), applies to indoor and outdoor hotspots, home broadband access, and self-backhaul for simple site acquisition.

Sub-3G spectrum realizes LTE-oriented evolution using solutions such as CloudAIR spectrum sharing, and spectrum

refarming and further supports 5G-oriented evolution through site modernization.

LTE and 5G NR spectrum sharing allows for the smooth introduction of 5G into existing LTE networks. Related technical

proposals have been submitted for discussion and are expected to be included in 3GPP Release 15.

4.4 Evolution of All Spectrum Towards 5G


15

mmWave

S1

X5

Option 3: MCG split Option 3a Option 3X: SCG split

X5-C X5

S1 S1-U S1-US1

EPC

LTE NR

EPC

LTE NR

EPC

LTE NR

C-Band

Sub-3 GHz

G30 G40 G70

SuburbanUrban Rural

Complementary Capacity Layer· Hotspot capacity boosting · Self-backhaul for easy site acquisition· Fixed wireless access

Primary Capacity Layer· C-band with Massive MIMO for capacity & coverage· UL&DL decoupling for coverage extension

Primary Coverage Layer· CloudAIR for rapid development of NR· 4T4R as basic configuration

The first 3GPP-based 5G release R15 will be completed by June 2018 with a keen focus on Enhanced Mobile Broadband

(eMBB). The first-phase NSA 5G NR features are expected to be launched by December 2017, with the second-phase

Standalone (SA) 5G NR features completed by June 2018. SA is intended for the target architecture of 5G.

The NSA architecture reuses the 4G core network to implement the functions of access, authentication, and voice

services. This helps minimize network reconstruction and rapidly deliver 5G based on a 4G network. This architecture

primarily applies to the initial deployment of 5G. The SA architecture introduces the 5G core network. NSA can be

upgraded to SA by overlaying the 5G core network. In compliance with 5G standardization specified by 3GPP, Huawei

schedules the release of a commercial 5G NSA architecture by Q4 2018, followed by a commercial 5G SA architecture by

Q2 2019.

Figure 4-4 Evolution of all spectrum towards 5G

Figure 4-5 NSA architecture

4.5 NSA Architecture Anchored on LTE for Initial Stages of 5G


16

VoiceSmart

Transportation

SmartAgriculture

SmartEnergy

Drones

AR/VR

3D VideoVoLTE

WTTx

Smart Factory

Smart Meters

Data

HD Video

WTTx

Rich 5G Business Cases based on 4G

New Capabilities Enable New Services and Growth

Figure 5-1 5G business prospect

Powerful hardware capabilities, a cloud-based architecture, and highly efficient network management allow mobile

networks to provide optimal capabilities that enable new services and growth. Application scenarios of mobile services

have gradually extended from personal services to households and vertical industries. VR/AR, drones, and many other

innovative applications are proposed to promote sustainable growth of the wireless industry. The continued enhance-

ment of traditional and new mobile services based on 4G networks can expand the scope of the industry and achieve

business success in the upcoming 5G era.

Voice remains a basic service that defines operators' competitiveness. VoLTE will gain increasing importance in the 5G

era. The large-scale commercial deployment of VoLTE enables a rapid exit of legacy RATs from the network and increases

O&M efficiency, while providing innovative VoLTE-based services such as screen, camera, and freehand sketch sharing

during calls. The commercialization process of VoLTE is accelerating, with the deployment of 60 new networks in 2016.

An excellent VoLTE experience is dependent upon LTE coverage. It is of critical importance to enhance LTE network cover-

age, improve VoLTE user experience, and enable a smooth evolution of VoLTE services to emerge as a basic service of 5G

networks.

5.1 VoLTE and Video Drive Operators' Revenue Growth

Business to VerticalNB-IoT, the best practice of 5G IoT

Business to CustomerSmooth evolution to 5G eMBB

Business to HouseholdWTTx helps rapid success in 4G era and evolve to smart home in 5G era.

4G 5GLTE

uRLLC

mMTC

mMBB


17

2G 3G

Web 360p/480p

Social video HD video Mobile game

4G/5G

Recent years have witnessed an exponential increase in video services which account for over 50% of the total traffic.

Video has manifested as a new basic service of mobile networks to increase revenue and data of usage (DOU). Global

operators have designed a diverse range of attractive packages to respond to the industry's quickly changing trends. For

example, operators worked with Netflix and other OTT providers to offer large-traffic data packages specifically to target

heavy video content subscribers. These actions influenced the marketing strategies of several renowned industry

players such as China Unicom and Tencent, with the joint launch of unlimited packages (based on the Tencent platform).

These packages are designed to allow users the benefit of streaming mobile video anytime and anywhere, while stimu-

lating traffic growth.

Based on 4G networks, WTTx supports nTnR, carrier aggregation (CA), Massive MIMO, and other advanced technologies

to provide a peak rate of over 1 Gbps and a fiber-like user experience. WTTx supports a 5G-oriented evolution and can

deliver a higher data rate based on 5G NR to help operators expand boundaries, promote the convergence of personal

and home services, and fully explore new potential markets. WTTx will be the first use case in the 5G era.

WTTx features excellent performance, low cost, quick deployment, easy O&M, and diverse services. With the use of

high-gain customer premise equipment (CPE), WTTx can offer end-to-end assurances for an extensive range of MBB

services. This is combined with an enjoyable user experience and a further increase in operators' average revenue per

user (ARPU).

SoftBank released Air service based on WTTx using the most advanced technologies (2.6 GHz+3.5 GHz Massive MIMO

and CPE that supports CAT11 features). The Air service meets user demands for rapid service provisioning (261 Mbps)

and supports plug-and-play (PnP) deployment. Within one year, this service matured to host 1 million WTTx users and

was able to achieve an annual increase of 51.9% in overall broadband revenue.

Figure 5-2 Mobile video as a basic service

5.2 WTTx Emerges as Fourth Access Mode

Voice + SMS Voice + SMS + Data packageBasic package (voice/data) + Top-up (scenario-based tariff)


18

1000

FTTH

FTTc

vDSL

+WTTx

Telecom

Cable

Coverage

(population)

Cable

Speed(Mbps)

400

250

100

10% 50% 65%

Easy Deployment and Gbps Experience of WTTx

Figure 5-3 WTTx user experience

5.3 IoT Business Start from NB-IoT, Then Copy to 5G Era

Huawei has deployed over 100 commercial WTTx networks that serve 50 million households in five continents. 2017

witnessed an increasing rapid deployment of over 50 new commercial WTTx networks. According to Ovum, WTTx will

serve nearly 350 million global households by 2020 to create a vast market space. WTTx will allow mobile operators to

reshape their market presence through broadband upgrades and receive a welcome entry into the blue ocean market of

wireless home broadband.

Narrowband Internet of Things (NB-IoT) is an optimal choice for the era of Internet of Things (IoT). This technology

features wide coverage (20 dB improvement compared with GSM), low power consumption (battery lifespan of over 10

years), and accurate positioning (30–50 m without GPS). NB-IoT has gained a reputation as the best mainstream

technology for mobile IoT. Thanks to the maturity of the industry chain, NB-IoT has been deployed in over 20 industries

with the development of more than 600 industry partners. Up till now, over 18 commercial NB-IoT networks have been

deployed, with the number of active sites exceeding 330,000. By the end of 2017, it is expected that over 30 commercial

networks will be available.


19

The commercial deployment of 5G is expected around 2020, but the applicable industries and scenarios as well as the

role played by 5G remain unknown and need advanced exploration. In 2016, Huawei founded Wireless X Labs and

pursued the construction of a comprehensive platform which is open to the entire industry. Joint efforts were then

instrumental in developing new technologies, applications, and new markets to build a capable ecosystem for the

imminent 5G era. X Labs has developed a sound relationship with 186 global partners with the launch of 45 joint

innovation projects and the publication of 17 white papers. X Labs set four research topics for 2017:

IoT is set to produce huge global market space in the future. According to Gartner, by 2020, there will be 26 billion IoT

connections that create a market space of USD$1.9 trillion. IoT has emerged as a driving force behind new growth of

mobile networks. With the advent of the IoT era, there will be an increasing number of connections and diversified

services, such as WTTc, smart transportation, autonomous driving, and drones. The demands for connections between

things will effectively lift the bandwidth restriction and enable the shift from narrowband to broadband IoT. The commer-

cial deployment of NB-IoT helps accumulate experience, develop user habits, and accumulate ecosystem capability,

while creating new business models and attracting new industries to use mobile networks. This also enables operators

to deploy new services and business models to seize new business opportunities.

Figure 5-4 NB-IoT ecosystem

NB-IoT Incubates New Business Models

E2E Network Ready

Modulepartners

1 Mn+ pcs chipset shipment per month

Site ready 20+ verticals and 600+ partners SellConnection

SellService

SellData

Ecosystem Ready Business Model Ready

5.4 Wireless X Labs Explore New Businesses

Connected drones (including video backhaul, site preventive maintenance inspection, security protection, logistics)

Wireless robotics (including smart factory and service robots)

Cloud VR/AR (including the application for entertainment, education, and engineering)

Connected cars and remote driving


20

Figure 5-5 Wireless X Labs progress

Jointly Accelerating 5G Business

Begin to Accumulate

Ecosystem Capability

VoLTE

Nationwide 4T4R “All In One” Antenna

UL/DL Decoupling

UL @ Low BandDL@ High Band

RuralStar

Wireless Backhaul

(Hop1)

“All Cloud” Architecture

IndoorDigitalization

Hot Spot M-MIMO

Video WTTx NB-LoT

Research Topics for 2017 Industry Partners Joint Innovation Projects

Wireless VR/AR Connected Drones Connected Cars Wireless Robotics

4 186+ 45+

Vision of Target Networks in 5G Era

All Spectrum

All RATs

AllIndustries

PoleStar

TubeStar

WirelessBackhaul

(Hop2)

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