1. EIC 2005 - Ericsson Mikael Prytz 2005-02-171 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

2. EIC 2005 - Ericsson Mikael Prytz 2005-02-172 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

3. EIC 2005 - Ericsson Mikael Prytz 2005-02-173 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)

4. EIC 2005 - Ericsson Mikael Prytz 2005-02-174 Future Growth – The Cost Barrier W user likely grows 10-100’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

5. EIC 2005 - Ericsson Mikael Prytz 2005-02-175 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

6. EIC 2005 - Ericsson Mikael Prytz 2005-02-176 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

7. EIC 2005 - Ericsson Mikael Prytz 2005-02-177 LAP Deployment

8. EIC 2005 - Ericsson Mikael Prytz 2005-02-178 LAP Network Architecture

9. EIC 2005 - Ericsson Mikael Prytz 2005-02-179 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

10. EIC 2005 - Ericsson Mikael Prytz 2005-02-1710 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?

11. EIC 2005 - Ericsson Mikael Prytz 2005-02-1711 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?)

12. EIC 2005 - Ericsson Mikael Prytz 2005-02-1712 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

13. EIC 2005 - Ericsson Mikael Prytz 2005-02-1713 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

14. EIC 2005 - Ericsson Mikael Prytz 2005-02-1714 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

15. EIC 2005 - Ericsson Mikael Prytz 2005-02-1715 Selected References “Framtidens mobilnät kan byggas à la Ikea”, artikel i Ny Teknik, 040123. K. Johansson, A. Furuskär, P. Karlsson, and J. Zander, “Relation between base station characteristics and cost structure in cellular systems”, Proc. IEEE PIMRC, Barcelona, 2004. 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, 2004. F. Loizillon et al., ”Final results on seamless mobile IP service provision economics”, IST-2000-25172 TONIC Deliverable number 11, Oct. 2002. N. Niebert et al., ”Ambient Networks: An Architecture For Communication Networks Beyond 3G”, IEEE Wireless Communications, April 2004.