technology disrupts but monetization uncertain

Technology to Drive Disruption, Monetization Mired in Uncertainty

Manish Singh, CTO

Small Cells Asia, March 2012

2 Radisys Corporation Confidential

At a Glance

Embedded

Wireless

Infrastructure

Solutions

Protocol Software

Professional

Services

COTS Platforms Media Server / MRF

Single Solutions Source Worldwide Customer Base

Market Research Report Available at Radisys Stand

http://www.samsung.com/us/index.html

http://www.comba-telecom.com/Default.aspx

http://www.nei.com/default.asp

http://www.lgericsson.com/gindex.laf

http://www.arkadin.com/

http://radisysbrandguide.findsubstance.com/downloads/Trillium_Mark_Master.zip


Technology to Drive Wireless Disruption, Service Monetization Mired in Uncertainty

Global survey of mobile operators

to get decision-maker insights

Devices continue to drive change

among subscribers & operators

VoLTE is seen as necessary but

not a top priority

Small Cells and Wi-Fi offload

provide a capacity boost

LTE Advanced will bring improved

spectrum efficiency & lower costs

FDD & TDD will both succeed, but

not yet clear how they will coexist


Data Remains the Growth Engine

Capacity Mind The Gap

Text

Traffic Doubling every 12 months

Video = Operators’ Albatross

Increase ARPU

Lower Cost per Bit

Source: Cisco VNI Source: Heavy Reading

Revenues

Traffic

Revenues &

Traffic Gap

Widening

Revenue vs. Traffic Growth

Voice Era

Data Era


Devices Drive New Usage Models

“New form factors will emerge, but change will continue to be driven by smartphones and tablets,

entering new segments and expanding their functionality.” – European survey participant

Devices will continue changing

the usage model

Smartphone adoption spreading

to feature phone users

Tablets may create a second

wave of traffic increase

Increase adoption of data-centric

devices drives innovation among

operators

Cloud applications will have an

impact on design of devices


Smartphones, Tablets, Notebooks…

Cameras, eBooks, Med Devices, Gaming, Navigation…

Mobile Internet of Things

Smartphones Tablets Notebooks

IP Cameras eBooks

Personal

Medical

Devices Gaming Consoles Connected Cars


Intelligence Flight Continues

eNodeB

eNodeB

eNodeB

MME / Serving GW

X2

S1 S1

MME / Serving GW Cloud

Devices

Dumb Pipe?

Intelligence Flight from Network to Devices & Cloud


VoLTE: Eventually Needed, But Not Yet

“Circuit-switched voice is not going to disappear over the next five years. But we do need VoLTE to

gradually reduce our dependency from legacy 3G and 2G networks.” – APAC survey participant

Voice is still an essential

component and necessary to

LTE’s success

VoLTE needed to decrease

dependency on legacy

networks

Concurrent voice and data

connectivity is a driver to

deploy VoLTE soon

Revenues are largely

unaffected by introduction of

VoLTE


MPX-12000 – VoLTE MRF Video & Voice over LTE

VoLTE Media Resource Function

• High Definition Voice, including AMR-WB

• VQE – critical media conditioning in noisy

wireless environment

Conversational Video

• Video calling – HD video 720p, H.264

• Video conferencing

• Video Transcoding

Audio/Video VAS

• Conferencing, Ringback, Multimedia mail…

Open 40G ATCA Platform

"Mavenir has already integrated the Radisys CMS-9000 media server with our mOne Convergence

Platform for one of our LTE operator deployments…. Products like the MPX-12000 – with a design

objective to increase MRF media processing capacities for mobile video services – offers an enticing

MRF product evolution for LTE operators"

– Terry McCabe, CTO, Mavenir Systems


Small Cell and Wi-Fi Offload: the Quest for Capacity Density

“Today it is Wi-Fi offload, but in the long-term small cells will become more important to increase

capacity.” – North American survey participant


3G / LTE Small Cells

3G Femtotality

LTE TOTALeNodeB

Multi-mode.. 3G + LTE + Wi-Fi

60+ LTE / 3G Small Cell Licenses

Coverage

Cap

acit

y

Macro

Micro

Pico

Metro

Femto

Our Focus: Small Cells


SEG – Wi-Fi & LTE Security

Macro Backhaul Security Small Cells Backhaul Security

Secure Wi-Fi Offloading

MME

eNodeB

S1u X2

S11

SGW

4G

MME

Femto

Metro

IPsec Tunnel

SGW Untrusted IP

Network

PGW

AAA

Wm

Gn‟

Wu

Wi-Fi

AP ePDG

Untrusted IP

Network

SEG + TTG + ePDG

IPsec Tunnel

IPsec Tunnel


LTE’s Future: LTE-A, TDD-FDD Networks

“LTE-A will be a gradual & incremental upgrade, with carrier aggregation as its main component. Without it, most

operators without 20MHz channels cannot fully benefit from the new technology.” – North American participant

“Traffic loads are growing so fast that FDD LTE will not be sufficient alone. We will need TD-LTE as well.”

– APAC survey participant


Fragmented Spectrum Challenge & Opportunity

The Spectrum Challenge

• 700MHz

• 2.6GHz

• AWS bands

• Digital Dividend

• 900 / 1800MHz re-farming

Roaming Requires Harmonization

Frequency Impacts Network Costs

• Increases with frequency

TD-LTE = Opportunity

• FDD for Macro

• TDD for Small Cell

Multi-Band Deployment

• 700MHz for Macro

• 2.6GHz for Small Cell

2.6 GHz

2.6 GHz

2.6 GHz

700 MHz

Cell radius ~30 – 300m

Cell radius ~1 – 3km


Wired Backhaul

LTE-Advanced (LTE-A) ITU-T’s True 4G… Marketing’s 5G…

3GPP R10

Carrier Aggregation • Aggregate multiple contiguous & non-contiguous carriers up to 100MHz

• Peak data rates 1Gbps

LTE Relay Node (RN)

• Over-the-air (OTA) backhaul

• Coverage

• Cell-edge throughput

3G

5 MHz

LTE

20 MHz

LTE-A

20 MHz

LTE-A

20 MHz …

Macro

„Donor eNB‟ Relay (RN)


A Conspicuous Absence: Service Creation and Monetization

Drivers related to new

services & monetization

did not make it the top six

drivers: Why?

Path to revenues not as

clear as the technology

and device path

Many opportunities,

unclear strategy

“We cannot afford to manage traffic growth without a corresponding increase in revenues. We have

ways to increase capacity, but we cannot necessarily afford it.” – European operator

Source: The observer effect, theobservereffect.wordpress.com

“Counting packets is not the way to make money.” – North American operator


Video Calling – LTE’s Killer App Bringing Intelligence Back

Video Calling Today Video Calling Tomorrow

Infrastructure in Place: Smartphones, Tablets, etc.

3G / LTE networks

Operators’ Opportunity Beyond a Bit Pipe

ARPU Generator

Device Silos iPhone: Facetime-to-Facetime ONLY

Skype breaking silos

WiFi Access Limited Mobility, hotspot bound

Internet Core Best effort, no QoS

Breaking Silos Ubiquitous video calling

Interworking = MRF transcoding

3G/LTE Access Ubiquitous mobility

EPC + DPI Conversational managed QoS

LTE + IMS


Video Conferencing Today

Video Conferencing Tomorrow’s Value Added Service

Extend Video Conferencing Beyond conference rooms

Mobile work force, remote executives

Video Ringback, Video mails, etc.

Operators’ Opportunity Beyond a bit pipe

ARPU generator

New revenue streams

Counter OTT threat

LTE+IMS

Video Conferencing Tomorrow


Taking Charge of the Mobile Broadband Experience

“RAN-aware real-time traffic management brings the operator closer to what subscribers wants to

do, when and where they are.” – European operator

Carriers control a precious

asset: information on

subscribers’ location, activity,

and devices

Yet, they feel distant from

subscribers

What’s needed: fine tune

services to match network

resources & subscribers’

behavior & expectations

How: active, real-time traffic

management

Encourage service adoption,

increased data consumption to

reach sustainable profitability


DPI = Control

Tiered SLAs

App- based QoS

Maximum Network

Monetization

Video Conference

Operator VoIP

Gaming

Video on Demand

Business Class VPN

P2P

Email

Browsing

Platinum

Bronze

Silver

Gold


Enabling LTE End-to-End Solutions From Access to IMS

Embedded Wireless Infrastructure Solutions

Evolved Packet Core Policy Control Radio Access Network IMS

Application

Server

Media

Resource

Function

IP

Multimedia

Subsystem

Internet

Policy &

Charging

Routing

Function

Policy &

Charging

Enforcement

Function

Mobility

Management

Entity

LTE Security

Gateway

Serving

Gateway

Packet

Gateway

eNodeB

User

Equipment

Macro Small Cells

60+ Customer Wins

Audio Video Conf

~65% Market Share

10G 40G ATCA

~40% ATCA Market Share

Dumb Smart Pipes

Traffic Management

Home eNodeB

User

Equipment


Embedded Wireless Infrastructure Solutions

technology disrupts but monetization uncertain

Technology

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