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Overview
Top stories
Ericsson reports strong third quarter
Ericsson has reported net sales of SEK49.2 billion for the third quarter of 2008, 13 percent higher than for the same quarter in 2007, mainly driven by healthy growth in the Networks business across all regions except Western Europe (Press release).
Sony Ericsson continues near break-even performance
Sony Ericsson has reported net sales of EUR2,808 million for the third quarter of 2008, 10 percent lower than for the same quarter of 2007. Unfavorable exchange rate fluctuations and lower average selling price resulted in a net loss for the quarter of EUR25 million (Press release).
STMicroelectronics and Ericsson form world-leading mobile platform provider
STMicroelectronics and Ericsson have agreed to merge Ericsson Mobile Platforms and ST-NXP Wireless into a joint venture. The 50/50 joint venture will have the industry's strongest product offering in semiconductors and platforms for mobile applications and will be an important supplier to Nokia, Samsung, Sony Ericsson, LG and Sharp (Press release).
Viewpoint – Mobile backhaul: How to avoid the capacity crunch
By Thomas Edwall, Director, Mobile Backhaul Solutions
and Michael Lisanti, Solution Manager, Mobile Backhaul
The increasing popularity of mobile broadband services, along with continued subscriber growth in emerging markets, provides welcome additional revenue streams for mobile operators. However, the resulting surge in traffic means operators must deploy additional backhaul resources if they are to avoid a potentially reputation-damaging capacity crunch.
More and more people are not only turning to mobile technology for voice and text message communications: a growing number are turning to mobile broadband – either as a complement to fixed broadband or as their primary way to access Internet-based services, including Web, corporate networking and email on the move.
With the advent of inclusive data packages, subscribers are increasingly likely to use cellular-based broadband access in the same way they use WiFi in the home or office. Ericsson’s studies of our customers’ HSPA networks worldwide show a 3.5-fold increase in traffic in the 12 months to July 2008.
This is, however, only the first wave of mobile broadband. Mobile networks already serve some 3.5 billion people worldwide, and this number will nearly double over the next five years. By 2013, there are likely to be almost 3 billion broadband subscriptions, of which 2.2 billion will be mobile – up from 250 million today.
What is more, these growing numbers of mobile broadband users will have access to ever-higher data rates, as today’s WCDMA/HSPA networks with typical downlink speeds of 3.6Mbit/s evolve to LTE, which will offer downlink speeds of 100Mbit/s and higher.
Such speeds will only be widely available to subscribers, however, if some serious bottlenecks are removed in the backhaul transport network that serves radio access networks (RANs). How this is done will have a profound effect on the overall capacity, flexibility and cost-efficiency of mobile operators’ networks.
Building up the backhaul
Before WCDMA, transport network planning was relatively simple, at least in terms of functionality and capacity requirements. Dimensioning the backhaul was essentially a matter of provisioning enough E1/T1 links relative to the number of transceivers at each cell site.
But it is simply not economical to meet the exponential growth in global mobile data traffic – which is predicted to multiply from this year’s 750,000 terabytes to 3 million terabytes in 2011 – by multiplying the number of E1/T1 TDM backhaul links. Most people agree that the solution lies in migrating to all-IP transport over Ethernet-based networks, because of the efficient aggregation and multiplexing, flexible interfaces and lower costs they offer. The question is how to get there from today’s TDM-based backhaul networks.
Mobile operators need to take a number of factors into consideration when planning the evolution of their backhaul networks. While there will certainly be more traffic at cell sites, the timing of this increase is harder to predict: the backhaul network needs to be flexible enough to scale quickly to meet demand as mobile broadband grows in popularity. Operators need to consider the relative costs of fiber, microwave and copper transmission resources, whether self-built or leased. They also need to consider how best to manage the transition from legacy circuit-switched transmission networks to packet-based networks, while minimizing operational expenditure per transported bit.
The planning parameters used to dimension WCDMA and HSPA radio access networks – including peak rates and average monthly data consumption – can also be applied to the RAN transport network. Capacity planning for the RAN and the backhaul network can be more tightly integrated. In addition, Layer 2 networking functionality will be available in both base stations and transport network products, enabling even closer integration.
Whether this convergence is handled by the mobile operator or the transport provider, the challenge will be to combine services, technologies and network elements in a way that reduces complexity, increases capacity and optimizes total cost. There is no ‘one size fits all’ solution.
Low and high RAN
An efficient, optimized end-to-end converged RAN demands a holistic view of service requirements, mobile applications and every element of the mobile network infrastructure. Deploying integrated solutions from the cell site to the mobile core network reduces risk for operators working towards a common IP-based backhaul network, by helping maintain the focus on service requirements.
One way to simplify network planning is to separate mobile backhaul into low RAN (LRAN) – the part of the RAN that provides first- and second-order aggregation nearest the RBSs – and high RAN (HRAN), essentially a ring or mesh metro network that provides higher-order aggregation of traffic from LRANs. Each part of the radio network has very distinct requirements.
The LRAN may encompass tens of thousands of cell site connections. The key requirements here are low cost, reuse or augmentation of existing infrastructure where possible, simple point-to-point connections, and high-bandwidth connectivity that can be deployed and managed in large numbers. Native Ethernet achieves the lowest possible total cost.
In the HRAN, traffic is aggregated and transported for connection to the radio controllers. Here the focus is much more on resilience, fault tolerance and aggregation gains. Depending on the operator assets available, the HRAN may be Layer 2 carrier Ethernet or a richer multiservice Layer 3 IP or IP/MPLS network.
For RANs with mixed-generation base stations, a site integration unit (SIU) is available to consolidate traffic from the different generations of base stations into a single ‘pipe’. Ericsson’s installed base of more than 1.2 million base stations can already be equipped for native IP in this way. Newer 2G/3G multi-standard base stations, such as the Ericsson RBS 6000 which provides GSM, WCDMA, HSPA and LTE coverage, offer integrated transmission capabilities in a single site solution.
Evolution to match traffic
Operators’ starting points, and the pace of traffic growth, will influence backhaul network evolution.
Where there is moderate traffic growth, especially if it is mainly from voice services, operators may choose to introduce limited packet data capabilities into the existing network. If the uptake of mobile broadband services is substantial, however, it may make sense to deploy additional rings in parallel to the existing network to accommodate pure packet data, leaving existing rings in place to accommodate TDM-based voice services.
In greenfield environments, new packet data services can be deployed over a carrier Ethernet-based infrastructure that offers native IP interfaces from day one.
The key to ensuring an economically viable evolution is to optimize capacity through efficient traffic handling, with native transport and aggregation, balanced with increasing physical capacity.
Regardless of the evolutionary choice or underlying implementation, an overriding requirement is to build for packet capacity while keeping complexity down. This may mean catering for multiple access technologies in the LRAN: if there is fiber available to the cell site, it should be used. Microwave has long been a popular choice for mobile network backhaul and is able to meet the needs of full-scale HSPA and LTE network deployments. Copper access should be used primarily as a transition technology – as a precursor to microwave or fiber – where there is copper already in the ground.
The HRAN is typically optical and carrier Ethernet, with microwave trunks occasionally used to provide long-distance capacity over difficult terrain.
All network elements should be managed under a common system, preferably with additional mobile services integration and elements in the packet RAN.
For mobile backhaul of converged RANs, Ericsson recommends an all-IP RAN with packet Ethernet transport, verified from the cell sites through the mobile backhaul transport network to the mobile core switch sites. Such an end-to-end solution will scale for capacity, de-risk the deployment and simplify O&M. Above all, it has been proven to provide a 20–30 percent total cost of ownership advantage over the traditional TDM approach.
Please also see this white paper on High Speed Technologies for Mobile Backhaul
If you would like to discuss this issue in more detail, please contact: industry.analysts@ericsson.com.
Mobile networks
Kuzey Kibris Turkcell selects Ericsson WCDMA/HSPA
The leading mobile operator in northern Cyprus, Kuzey Kibris Turkcell has selected Ericsson as sole supplier of a WCDMA/HSPA network that will enable it to offer high-speed mobile broadband services to its subscribers (Press release).
Grameenphone rolls out all-IP core in Bangladesh
Bangladeshi mobile operator Grameenphone has chosen Ericsson to expand the capacity of its all-IP core network, following tremendous growth in subscriber numbers and traffic on its GSM network over the past year (Press release).
New wind-powered radio base station concept
In partnership with Vertical Wind AB and Uppsala University in Sweden, Ericsson has unveiled a research project for a pioneering wind-powered version of its Tower Tube, an energy-optimized radio base station site concept that already offers 40 percent lower power consumption than traditional base station sites (Press release).
Digicel rolls out EDGE in Panama
Digicel Group has selected Ericsson as sole supplier for the nationwide deployment of a GSM/EDGE network in Panama, enabling the operator to cost-effectively increase data capacity and offer high-speed mobile data services over the GSM network (Press release).
Star-Cell deploys solar-powered bases stations in Cambodia
Cambodian mobile operator Star-Cell has been able to expand its network coverage in remote areas using an innovative Ericsson solution that combines a GSM base station and satellite transmission in a solar-powered site. The new solution is intended to offer affordable communications for all, and is based on Ericsson’s energy-optimized main-remote base-station (Press release).
Iceland’s Síminn expands HSPA network into 900MHz band
Icelandic operator Síminn has selected Ericsson to expand its WCDMA/HSPA network into the 900MHz band, which will enable the operator to deliver enhanced mobile data services to remote areas across Iceland. Under the two-year agreement, Ericsson will be the sole supplier of WCDMA/HSPA radio access equipment and the GSM/WCDMA common core network (Press release).
Multimedia services
KPN selects innovative mobile advertising solution
Dutch mobile network operator KPN has chosen Ericsson to provide a hosted mobile advertising solution – the first of its kind – which will provide an innovative and flexible end-to-end business solution for managing and delivering targeted advertisements to mobile phones and other devices (Press release).
Sonaecom in world-first trial of new IMS-integrated IPTV solution
Portuguese triple play operator Sonaecom has selected Ericsson to provide and integrate an open, standards-based, end-to-end IPTV solution. The project includes the first commercial trial of Ericsson’s new IMS-based IPTV middleware, which enables Sonaecom to deliver interactive and personalized TV experiences to its subscribers (Press release).
New IMS IPTV middleware integrated with leading TV technology providers
Ericsson’s open, standards based, end-to-end IPTV solution is the first in the world to be pre-integrated with IMS, offering ease of integration and vendor choice for operators. Leading TV technology providers have integrated their consumer devices, content protection solutions, video servers and applications software with the new solution (Press release).
Intel and Ericsson are working together to embed HSPA mobile broadband into Mobile Internet Devices (MIDs). Ericsson’s HSPA data solution will be used in Intel's Moorestown platform, scheduled for release during 2009/10 (Press release).
Ericsson and other industry leaders unite to deliver mobile broadband future
Ericsson and 15 of the world’s leading IT and mobile companies have united behind a GSMA-led initiative to create a new category of always-connected mobile broadband devices, delivering a compelling alternative to WiFi. This will give consumers the freedom to get online on the move, while enabling operators to address a multi-billion dollar market opportunity. In the first phase of the initiative, mobile operators, PC manufacturers and chipset providers are uniting to pre-install mobile broadband into a range of notebook PCs that will be ready to switch on and surf straight out of the box in 91 countries around the world (GSMA press release).
LG Electronics adds Ericsson mobile broadband to notebooks and netbooks
LG Electronics has selected Ericsson HSPA mobile broadband modules for inclusion in its notebooks and netbooks (Press release).
Ericsson has won an exclusive contract to supply, build, integrate, operate and manage multiplay broadband infrastructure for Saudi Arabia's high-tech flagship King Abdullah Economic City. The five-year agreement with Emaar, developer of the smart-city project, is Ericsson’s first GPON-enabled IPTV contract, the first fiber optic contract and the first fixed-network IMS contract where Ericsson provides systems integration and network roll-out services (Press release).
Telcel deploys microwave transmission in Mexico
Mexico’s leading mobile operator Telcel has selected Ericsson to provide microwave transmission links for its high-speed mobile broadband roll-out. Under the agreement – the largest microwave deal in Latin America to date – Ericsson will provide its MINI-LINK TN microwave transmission solution for Telcel’s 2G and 3G/HSPA networks (Press release).
Telekom Malaysia expands nationwide optical network
Malaysia's leading next-generation communications and broadband provider, Telekom Malaysia Berhad (TM), has signed a two-year contract with Ericsson for the nationwide expansion of its optical network infrastructure and associated network management. The move will enable TM to meet growing consumer appetite for broadband services, including advanced applications such as IPTV (Press release).
Telecom Liechtenstein to upgrade nationwide ADSL network
Telecom Liechtenstein has awarded Ericsson a three-year contract to upgrade and expand its ADSL network with new VDSL2 technology, bringing high-speed broadband to the operator’s customers nationwide (Press release).
40Gbit/s DWDM solution enters service at Deutsche Telekom
Following extensive testing, optimization and systems integration, Deutsche Telekom has put the advanced 40Gbit/s multihaul WDM solution supplied by Ericsson into commercial operation in its core network. This is a vital step to providing the core network bandwidth needed to meet growing levels of broadband traffic from business and residential customers using new multimedia services (Press release).
Ericsson has opened a new Global Service Delivery Center (GSDC) in Lahore, Pakistan, which will support the company’s leadership in managed services and form a regional base for offerings in consulting and education for emerging markets (Press release).
Cable & Wireless signs five-year GSM managed network deal
Global operator Cable & Wireless has signed a five-year agreement with Ericsson to design, build and operate a complete GSM mobile network for its Europe, Asia and US operation, as it launches new Fixed Mobile Convergence (FMC) services in the UK (Press release).
Hanoi Telecom in Vietnam’s largest ever network modernization deal
Hanoi Telecom and Ericsson have signed the largest single contract in Vietnam to develop and modernize the operator’s nationwide mobile network. Under the three-year managed services agreement, Ericsson will be responsible for the management, operation and design of Hanoi Telecom's mobile network, including field operations and support services (Press release).
Telefónica to roll out revenue assurance solution across Latin America
Global operator Telefónica has selected Ericsson to provide business consulting and systems integration services for the operator’s fixed and mobile operations across Latin America. Under the agreement, Ericsson will provide services including financial-risk evaluation and revenue assurance life-cycle management, supported by technical analysis, to enable Telefónica to improve control of its revenue streams (Press release).
Corporate news
Ericsson to establish mobile innovation center in Africa
Ericsson is to establish an innovation center in sub-Saharan Africa to develop mobile applications, with a special focus on meeting the needs of poor and rural populations. The initiative will focus on solutions in health, education, agriculture and small business development, and is another important step in Ericsson’s ongoing commitment to the United Nations Millennium Development Goals (MDGs), which aim to reduce extreme poverty worldwide (Press release).
Ericsson joins UN digital health initiative
Ericsson is joining forces with the UN Office for Partnerships to use telecommunications to bring mobile health applications and services (m-health) and telemedicine to rural Africa (Press release).
Mobile broadband pilot to boost socioeconomic development in Bangladesh
Ericsson has conducted a pilot project in Bangladesh to demonstrate improvements in productivity and quality of life through the use of high-speed Internet services and 3G/HSPA technology. The pioneering project, called Alokito Bangladesh (Enlightened Bangladesh), is being used to demonstrate high-speed Internet access and a range of advanced services – including mobile health and mobile learning – around the capital, Dhaka (Press release).
Executive Vice President Björn Olsson to leave Ericsson
Björn Olsson, Executive Vice President of Ericsson and deputy head of Business Unit Networks, has decided to pursue opportunities outside Ericsson and will leave the company at the end of 2008 (Press release).
Latest white papers
Delivering broadband’s full potential
Broadband has been one of the telecom industry’s biggest success stories. Ensuring that broadband achieves its full potential – delivering economic and social benefits to all – requires timely and efficient infrastructure investment, with continued commitment and support of government and regulators. (White paper).
Personalized and interactive TV – enabled by IMS
An IMS-based TV solution provides common functions and service enablers for integrating communication and entertainment services, tailoring content and services to individual users and enabling them to interact with content. (White paper).
Full-Service Broadband access
Full-Service Broadband access solutions can give consumers instant access to – and seamless interaction with – all services, on any screen, anywhere at any time. (White paper).
High-speed technologies for mobile backhaul
Several technologies – including all-IP networks and high-capacity fiber, microwave, or VDSL2 links – will be able to handle demand for HSPA and LTE backhauling. The backhauling solutions will enable the introduction of high-capacity mobile broadband networks. (White paper).
Unified Communications – business gets personal and dynamic
Mobility and unified communications (UC) will open up new opportunities for mobile service providers. They will get additional revenue from new enterprise services, an opportunity to provide content and applications, as well as enhanced service level agreements. (White paper).
For the latest Ericsson white papers, please click here.
Latest publications
Ericsson Review 02/2008
The latest issue of Ericsson Review – which covers the latest Ericsson technology research, development and production achievements – takes an in-depth look at: the new Multimedia Communication Suite (MCS); end-to-end solution for remote access services; the evolution of GPON and associated industry trends; Service Delivery Platforms (SDPs) for the multimedia marketplace; simplified network management in the wireless industry; key features of the LTE radio interface; and IMS multi-access. (Ericsson Review).
Events
Industry events
October 26–29
Transport Networks for Mobile Operators Middle East
Crowne Plaza Hotel, Dubai
October 26
Technical briefing: IP RAN evolution strategies for mobile broadband and for new networks
Speakers: TBD
October 28
Examining the evolution options for a predominantly microwave network migration
Speaker: Hans Mähler, Portfolio Strategy Manager
Panel discussion: Considering the evolution of packet radio for mobile backhaul
Panelist: Hans Mähler, Portfolio Strategy Manager
October 27–30
CASBAA
CASBAA Dome, PopTV Arena, Hong Kong
October 29
The Individual TV Experience
Speaker: Noel Matthews, Vive President Business Development
October 30
Panel discussion: Mobile Minutes: Content on the move
Panelist: Magnus Stjerna, Director Business Development Media
October 28–29
LTE USA conference and exhibition
The Sheraton, Atlanta, USA
October 28
Will lessons be learnt from 3G to enable successful LTE deployments?
Speaker: TBD
November 3–4
IPTV World Forum
Jumeirah Beach Conference Center, Dubai
November 17–20
LTE World Summit
Millennium Gloucester hotel, London
November 19
Industry alignment for global LTE implementation
Speaker: Erik Ekudden, Vice President and Head of Standardization
Backhaul cost implications of LTE
Speaker: Prof. Stephen Ferguson, Market Strategy Director
November 17–21
Transport Network Strategies
Rey Juan Carlos, Barcelona, Spain
November 17
Technical briefing: Explaining the key optical networking elements and feature requirements of the NGN
Speaker: Prof. Stephen Ferguson, Market Strategy Director
November 18
Detailing the evolution of optical network deployment – examining the evolution from TDM to IP and Ethernet/optical networks and considering the strategic benefits of their implementation as legacy upgrade or overlay
Speaker: John Ash, Network Strategy Director
Panel discussion: A strategic evaluation of key developments in Next Generation optical networks and the business opportunities they present to service providers
Panelist: John Ash, Network Strategy Director
November 21
Exploiting Carrier Ethernet to reduce cost per bit in mobile backhaul
Speaker: Klas Rapphed, Product Marketing Manager Microwave and Mobile Backhaul
November 18–20
Mobile Asia Congress
The Venetian, Macau
November 18
The Role of Mobile in Sustainable Social Economic Development
Speaker: Krishna Kumar, President, Ericsson Malaysia
Wednesday Nov 19
Strategies for Growth: Technology Evolution Debate
Speaker: Jan Färjh, Vice President and Head of Ericsson Research
Ericsson events & telebriefings
November 5
Ericsson North America Update
Presenter: Arun Bhikshesvaran, Chief Technology Officer and Vice President of Strategy
Ericsson North America
To sign up for the industry analyst telebriefings and technology updates, please send an e-mail to industry.analysts@ericsson.com or refer to our website.
Contacts and further information
If you would like further information about any stories in this newsletter, or to arrange a briefing, please send an e-mail to industry.analysts@ericsson.com.
Ericsson’s global industry analyst relations team is: Peter Olofsson (Global, Head of Industry Analyst Relations), Kathy Egan (North America), Colleen Rosander (North America) Rob Elston (Europe/Middle East/Africa) and Eva E Andersson (Asia Pacific). Please contact the person responsible for activities in the region in which you are based.
The next newsletter will be issued following the quarterly report January 29, 2009. For further details regarding the quarterly reports, please check here.
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