1. Slide title In CAPITALS 50 pt Slide subtitle 32 pt Feasibility Study of A-interface over Internet Protocol Masters Thesis Presentation Eero Laitinen, 7.9.2009 Supervisor: Professor Heikki Hämmäinen

2. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Outline Objective of the Study and Methodology Mobile Market Situation All-IP Transition Case Study: Feasibility of AoIP technology Conclusions

3. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Outline Objective of the Study and Methodology Mobile Market Situation All-IP Transition Case Study: Feasibility of AoIP technology Conclusions

4. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Objective of the Study and Methodology Objectives: –Compare GSM A-interface over IP to legacy A-interface over TDM in terms of CAPEX and OPEX –Study factors influencing expected lifetime of GSM Methodology: –Literature survey Books, standards, whitepapers, press releases, etc –Interviews Ericsson expert interviews

5. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Outline Objective of the Study and Methodology Mobile Market Situation All-IP Transition Case Study: Feasibility of AoIP technology Conclusions

6. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Mobile Market Situation 2G GSM currently the most successful 3G technologies are growing importance LTE is at the door step

7. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Outline Objective of the Study and Methodology Mobile Market Situation All-IP Transition Case Study: Feasibility of AoIP technology Conclusions

8. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Transport Technologies Three main transport technologies in mobile networks: –Time Division Multiplexing (TDM) –Asynchronous Transfer Mode (ATM) –Internet Protocol (IP) Why IP? –Some reasons: Packet based data transmission considered more efficient and future proof IP instead of TDM IP used in the datacom índustry IP can utilize the economies of scale IP instead of ATM

9. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 The Traffic and Revenue Challenge

10. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 All-IP Transition Reduce costs –Networks are simply transformed to use IP –Preparing for the future –E.g. Circuit-Switched mobile network from TDM/ATM/IP to IP only Generate revenues –All-IP based core network will provide access to IP based applications via variety of different access systems –3GPP IMS and EPS/SAE

11. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Reduce costs in GSM architecture: A- interface from TDM to IP

12. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Outline Objective of the Study and Methodology Mobile Market Situation All-IP Transition Case Study: Feasibility of AoIP technology CAPEX benefits OPEX benefits GSM lifetime speculation Conclusions

13. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 CAPEX: Transcoding

14. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 CAPEX: MGW Redundancy

15. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 CAPEX: Transmission equipment Network nodes in AoTDM architecture use TDM ports (e.g. STM-1), whereas network nodes in AoIP architecture use Ethernet ports (e.g. Gigabit Ethernet) One STM-1 port can carry 1890-1953 voice calls, whereas one Gigabit Ethernet port can carry over 26 000 voice calls About 13-times more STM-1 ports are needed to fulfil a certain traffic need The CAPEX benefit depends on the unit prices of the ports

16. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 CAPEX Summary Transcoderless BSS –No need for transcoders in BSS anymore Transcoder equipment savings Transcoding in MGW –MGW capacity is impacted due to new transcoding functionality –If capacity decreases, more hardware needs to be purchased, and if capacity increases, existing hardware becomes available –The impact depends on the traffic model MGW redundancy –Extended A-interface enables N+1 MGW redundancy Less MGW capacity overdimensioning Transmission equipment –TDM ports in BSC and MGW are replaced by Ethernet ports Less Ethernet ports are needed than TDM ports and typically Ethernet ports are also less expensive

17. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 AoIP vs. AoTDM: OPEX Single transport technology –Operating one transport technology instead of multiple ones is more cost-efficient –AoIP is only one part of the big picture Node configuration –Reduced node configuration effort in BSC, MGW and MSC-S Service availability –Better service availability due to N+1 MGW redundancy Speech quality –Transcoder Free Operation doesnt reduce voice quality –Same can be achieved with TFO in AoTDM Training –Synergy savings with 3G RAN

18. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 GSM lifetime speculation Operating more than one, not to mentions two, mobile network is considered to be too expensive 3G technologies are expected to replace GSM –3G will enable new revenue streams –However 3G coverage and existing handset base not yet good enough - Situation is expected to get better around 2015 Three competing 3G technologies create market uncertainty LTE commercial operation is expected to begin in the near future Could it be LTE instead of 3G that will replace GSM? –It remains to be seen

19. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Outline Objective of the Study and Methodology Mobile Market Situation All-IP Transition Case Study: Feasibility of AoIP technology Conclusions

20. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Conclusions GSM has still strong market position –3G and LTE are expected to replace GSM eventually AoIP is more cost-efficient option to build and operate GSM networks than legacy AoTDM AoIP is also more future proof AoIP has business opportunities especially in emerging markets In developed markets operators will more likely choose 3G and/or LTE

21. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02 Questions?

22. Top right corner for field-mark, customer or partner logotypes. See Best practice for example. Slide title 40 pt Slide subtitle 24 pt Text 24 pt Bullets level 2-5 20 pt Feasibility Study of A-interface over Internet Protocol2009-09-02