EIC Ericsson Mikael Prytz Soon, you can do whatever you want, wherever you want Ericsson and KTH turn Mobile Internet up-side-down Mikael Prytz, Olof Lundström Ericsson Research, Wireless Access Networks Klas Johansson, Miguel Berg, Johan Hultell, Jan Markendahl, KTH Jonas Lind and Niklas Kviselius, SSE

EIC Ericsson Mikael Prytz Mobile Communication Systems mobile phone, laptop wireless (mobile) link base station (BS) fixed transmission link terribly complicated magical box other networks, e.g., Internet service area = A service

EIC Ericsson Mikael Prytz Cost of Mobile Systems cost(total)  N user *cost( ) + cost(system) cost(system)  N BS *(cost( ) + cost( to BS)) + other( ) N BS  W user = average user capacity to produce service W system = maximum capacity per base station R max = maximum base station cell radius Note: cost = PV(CAPEX) + PV(OPEX)

EIC Ericsson Mikael Prytz Future Growth – The Cost Barrier W user likely grows ’fold for future mobile services => N BS increases => cost(system) increases Who pays for all the fun? Ultimately the end users. Issue: ARPU(future)  ARPU(now) (Average Revenue Per User) => lower the cost of infrastructure

EIC Ericsson Mikael Prytz Actors in Today’s Mobile Networks End users Operators –integrated scope: mobile services, mobility, wireless connectivity –wide area coverage (national, multi-national, c.f., Vodafone) Regulators

EIC Ericsson Mikael Prytz Observation: Fixed broadband access penetration in homes, small businesses, building societies, etc. is high Local Access Points (LAP) Integrated in Mobile Networks: –end users deploy small base stations, Local Access Points (LAP) –LAPs are connected to the existing fixed broadband connections –other operator subscribers are allowed to use the LAPs LAPs give mobile network operators extra capacity at low cost for less critical services in densely populated areas Research Concept: Local Access Points (LAP) Integrated in Mobile Networks

EIC Ericsson Mikael Prytz LAP Deployment

EIC Ericsson Mikael Prytz LAP Network Architecture

EIC Ericsson Mikael Prytz LAP Technical Features LAP cheap, simple to use black box –zero-configuration –automatic integration into operator network on installation –supports multiple radio access technologies (e.g., 3G, WLAN) end users supply power and space for the LAP no or very low quality-of-service guarantees partly autonomous, but controlled by operator network: –authentication, authorization, accounting –mobility management –charging schemes

EIC Ericsson Mikael Prytz OK, but... LAPs turn end users into operators, or...? –What are the new business roles/actors here? Is there a business case for operators and end users? Incentives and guarantees for end users to let other users in on the private broadband access? Is it secure? –for end users deploying LAP –for other users using LAP –for operator OPEX costs, power, space?

EIC Ericsson Mikael Prytz Business Issues Role of end user deploying LAP in relation to operator –One possible model: Network Franchising Operator is franchiser, end user is franchisee Value proposition for mobile operators –increased capacity, but no control of where it appears Value/Incentives for end users – kickback –lower tariffs when other user’s traffic go through the LAP –Bundled service offerings: LAP + WLAN access + broadband access + free mobile access when connected through LAP +... Role of / value to broadband provider (are LAPs allowed?)

EIC Ericsson Mikael Prytz Open Issues – Opportunities for Innovation complete business case for all actors to be verified –which scenarios / settings? –”what’s in it for me?” potential market size? other business models than network franchising? other, competing solutions that would obviate the LAP concept quantified examples on incentives for end users, service bundles, etc. –how big incentive for end user? (assuming today’s expenditures on broadband (€30-40/month) and mobile services (€30-40/month)) technical challenges (for the brave at heart): –mechanisms for spectrum management (interference control) –mechanisms for network monitoring

EIC Ericsson Mikael Prytz LAP Concept – Status concept investigated from both technical and business perspectives, see references –qualitative and quantitative –cost savings analyzed no detailed specifications of mechanisms no prototype or demonstrator

EIC Ericsson Mikael Prytz Research Projects Low Cost Infrastructure –project within Affordable Wireless Services Initiative –Partners: KTH, SSE (Handels), Ericsson –Financing: SSF, KTH, SSE, Ericsson Ambient Networks –European Union IST 6th Framework Programme –Partners: KTH, Ericsson –Financing: EU, Ericsson

EIC Ericsson Mikael Prytz Selected References “Framtidens mobilnät kan byggas à la Ikea”, artikel i Ny Teknik, K. Johansson, A. Furuskär, P. Karlsson, and J. Zander, “Relation between base station characteristics and cost structure in cellular systems”, Proc. IEEE PIMRC, Barcelona, K. Johansson, M. Berg, J. Hultell, J. Markendahl, J. Lind, N. Kviselius, and M. Prytz, “Integrating User Deployed Local Access Points in a Mobile Operator’s Network,” Proc. WWRF#12, Toronto, F. Loizillon et al., ”Final results on seamless mobile IP service provision economics”, IST TONIC Deliverable number 11, Oct N. Niebert et al., ”Ambient Networks: An Architecture For Communication Networks Beyond 3G”, IEEE Wireless Communications, April 2004.