MOBTEL’s Migration Path to 3G MOBTEL’s Migration Path to 3G Radmila Simic Project Manager for Strategic Development ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G The Union of Serbia and Monte Negro The Republic of Serbia : §Territory: 88.361 sq.km §Population: - 9,2 mil. - 7,5 mil. with 110 inh./sq.km (without Kosovo) §Capital: 2 mil. citizens ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 1 MOBTEL’s Migration Path to 3G Serbian market GSM operators : 1. MOBTEL (started in 1996) 2. “Telekom Srbija” (started in 1998) Total mobile subscribers: 3 millions Total mobile penetration: 40% Market share: nearly 50/50 % Internet penetration: 6% with 47 providers → GDP per capita : 2370 USD → GDP growth : 3% pure fixed lines developing country ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G Operator’s status § MOBTEL, the Company for Mobile Telecommunications “Serbia” BK-PTT,ltd. operates as a joint-venture company founded in 1994 by : 1. “BK Trade” (51% shares – private capital) 2. PTT “Srbija” (49 % shares – state capital) § TELEKOM, operates as a joint-venture company : 1. PTT “Srbija” (80% shares – state capital) 2. OTE Greece (20 % shares – private capital) § TELEKOM operates as a public fixed network operator as well, with monopoly until Jun, 2005.→ liberalization ! ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 2 MOBTEL’s Migration Path to 3G Regulation § Competion market is not yet regulated. § New Telecommunication Law will be put into force in the first half of the next year (licenses,interconnection, transparent, objective and no-discriminatory basis, competion, ...). § No official anouncement has been issued by the National Authority for the IMT-2000 license. § IMT-2000 frequency bands are occupied by other users. ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G MOBTEL GSM Coverage of the Republic of Serbia Current Status § territory coverage: 70%. § population coverage: 94%. Need to enlarge coverage ! ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 3 MOBTEL’s Migration Path to 3G Key figures for the Mobtel network § § § § § § Standard: GSM 900/1800, Phase 2+ Network size: 6 MSC+1 TSC, 430 BTS Release : R9.1 GPRS: in the whole network for post&prepaid; roaming is testing EDGE: pilot Vendor: ERICSSON (NSS, BSS, IN, PPS, WAP, MVPN, GPRS, MMS ) Comverse (SMS, VMS) § Transport network: MW (PDH Ericsson, SDH Marconi) § VAS: SMS-email, MMS, Internet, Intranet, GSM Pro, etc. § VMNO: Astra Simit ( company as service and applications provider) ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G Objectives of M obtel’s Business in 2003 § Subscribers: 1,6 millions (Post/PrePaid = 20%/80%) with 22% penetration growth § Service monthly usage: 150 min/postpaid customers 25 min/prepaid customers § SMS monthly : 90 millions messages § SMS in bussy hour: 230k BHSM § ARPU: 20 USD per postpaid customers ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 4 MOBTEL’s Migration Path to 3G GPRS TRAFFIC MBit 5.000 • 65.000 users (13.000 instant.) • 40 KB/user • BH around 24h 4.500 4.000 3.500 3.000 2.500 2.000 1.500 1.000 ↑ June 03 5.nov.03 12.nov.03 29.okt.03 22.okt.03 8.okt.03 15.okt.03 1.okt.03 24.sep.03 17.sep.03 3.sep.03 10.sep.03 27.avg.03 20.avg.03 6.avg.03 13.avg.03 30.jul.03 23.jul.03 9.jul.03 16.jul.03 2.jul.03 0 25.jun.03 500 date Mostly are for WAP ! Nov 03 GPRS traffic start ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G Multimedia messages in Nov. 03 20000 18000 16000 14000 Total messages sent Success messages sent Push messages Received messages Received E-mail 12000 10000 8000 6000 4000 2000 ITU-BDT SubRegional Seminar on IMT-2000 19.nov.03 17.nov.03 15.nov.03 13.nov.03 11.nov.03 9.nov.03 7.nov.03 5.nov.03 3.nov.03 1.nov.03 30.okt.03 28.okt.03 0 Ljubljana 1-3/12/03 5 MOBTEL’s Migration Path to 3G MULTIMEDIA SERVICES §It takes time to build markets ! §40% are for video §20% are for shoping VIVO FOR ALL VIVO MMS VIVO ENTERTAINMENT VIVO PROMOTION ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G Projected Mobtel’s growth through the year 2006 Expected number of subscribers 5000000 4500000 GSM 4000000 Voice services still main driver ! WAP 3500000 GPRS 3000000 EDGE 2500000 Need to create content and social motion ! UMTS 2000000 MMS 1500000 1000000 500000 0 2001. 2002. 2003. 2004. ITU-BDT SubRegional Seminar on IMT-2000 2005. 2006. Ljubljana 1-3/12/03 6 MOBTEL’s Migration Path to 3G Releases §Due to ongoing standardization work specifications for GSM were grouped into “Releases” enabled industry to proceed with the development including monstrous SW ! §Operators have been forced to implement all enhancements generally annuel introducing numerous new features and technological improvements. §Similarly operators could expect this gradual process will continue, opening the path for the migration to 3G services. ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G Consideration §Operators should set requirements and overall strategy for clear objectives that meet market’s need. §The debate over 3G migration procedures could be described as economical matter and users need for new applications. §There are real concerns that wrong choice will lead operators in the developing countries to costs to high comparing to the investment in building a network expansion and delivering innovated services to 2G customers. ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 7 MOBTEL’s Migration Path to 3G Models for 3G transition strategy GSM operators could concern several models to decide on 3G transition strategy : 1. Continue building out the existing GSM/GPRS network to launch 3G data servicies with the EDGE upgrading and postpone the deployment of the 3G network for the later stage. 2. Continue building out the existing GSM/GPRS network improving quality and capacity and begin in paralel deploying 3G network only in urban areas for high-endusers. 3. Immediately start to deploy 3G network nationwide for the high-end data services. ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G Analysing the factors involved in technology evolution decision § Operators are evaluating technology evolution options and determine the best strategy based upon its specific situation and many factors, including : § Spectrum availability § Subscriber maturity § § § § Mobile Internet services Competition Handsets Financial situation ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 8 MOBTEL’s Migration Path to 3G Analysing the factors involved in transition options As a GSM operator in the developing country with low economy status and subscriber base still mostly voice-centric, MOBTEL has decided to upgrade its network firstly with EDGE technology for 3G service implementation. § § EDGE is included as a complement to 3G systems path to provide 3G data services demanding by market in a cost efficient way. To make a decision rather simple ! § Gradual investments § Simple service migration § High network infrastructure reusability ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G STRATEGY § The MOBTEL`s strategy is to achieve high-quality GSM and GPRS network with the EDGE system upgrading nationwide and to start with 3G technology at moderate speed starting in major cities with high population at the stage when 3G frequencies will be available. § New 3G system requires substantial new investment, since a new Radio Access Network needs to be deployed. § To make reuse possibility of many of the service network components as well as other peripheral systems. ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 9 MOBTEL’s Migration Path to 3G 3G STANDARDIZATION § MOBTEL has adopted the UMTS system with W-CDMA as an option of the migration path from GSM to the 3G system and services providing high capacity link of up to 2 Mbit/s to each user. § Ability to coexist and interworking UMTS system with the existing GSM/GPRS/EDGE network should be the right choice to enable seamless functionality between two systems. §The decision to evolve from GSM to a seamless GSM/GPRS/EDGE/UMTS network as a migration path is the best solution for our company and our customers. ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G Service development in Phases MOBTEL as a 2,5G operator, have recognized three distinct phases in the evolution towards 3G services as the market evolves. According to Ericsson`s White Paper : § Phase I – voice centric § Phase II – high speed data and mobile Internet § Phase III – high speed multimedia and maturing mobile Internet Choosing WCDMA deployment at moderate speed MOBTEL will remain in Phase I and Phase II for a longer period to continue with coverage and capacity expansion, and then slowly enter in Phase III. In our case study I think 2G will be for a long time to fill the gaps for where we have not really got 3G coverage. ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 10 MOBTEL’s Migration Path to 3G Data service evolution in Mobtel network Functionality Long period Short period UMTS 2 Mbps 3G GPRS/EDGE 384 kbps 2,5G GSM/GPRS 160 kbps GSM CS data services 2G 9.6 kbps 96 → 97 98 99 00 01 02 03 04 05 Year 06 Mobtel GPRS network currently support 48 kBit/s, based on QoS ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G GSM/GPRS Architecture (current status) MSC/VLR Gs Gr Gd A BTS SMS GW -MSC HLR SS-7 A’’ Radius BSC PCU SGSN Gb BTS Gb GGSN Gn Gn Frame Relay backbone Gi WAP Mobile ISP Gi Gi IP backbone Radius Host Gi ISP Gp DNS NTP BGw Other PLMNs PXM Radius Host Corporate ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 11 MOBTEL’s Migration Path to 3G GSM Infrastructure Gs Gr IP Infrastructure Gd A BTS SMS GW -MSC HLR MSC/VLR SS-7 A’’ Radius BSC SGSN PCU Gb BTS GGSN Gn Gb Gn Frame Relay backbone Gi WAP Mobile ISP Gi Gi IP backbone Radius Frame Relay Infrastructure Host Gi ISP Gp DNS NTP BGw PXM Radius Other PLMNs Host Corporate ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G EVOLUTION to UMTS in GSM/GPRS/EDGE environment - The most cost-effective option Access network Core network Application server Narrowband 64/115 kbit/s wide area 384 kbit/s local area Application server Service Delivery Platform IN SCP 2G GSM Radio Access GSM Specific GSM /EDGE UMTS Addition BSS 2G 3G 3G GMSC MSC PSTN PSTN ISDN ISDN UMTS HLR/AAA UMTS UMTS Radio Access UTRAN GSM Specific UMTS Addition GGSN SGSN UMTS Internet Internet Intranet Intranet Wideband 384 kbit/s wide area 2 Mbit/s local area ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 12 MOBTEL’s Migration Path to 3G CONCLUSION § ECONOMIC ASPECTS WITH THE COSTS OF THE POSSIBLE OPTIONS. § MINIMIZE THE COSTS OF MANAGING EXISTING 2 G AND A NEW 3 G NETWORK. § COEXIST AND SHARE THE SAME INFRASTRUCTURE. § MARKET DEVELOPMENT FOR MOBILE DATA AND INTERNET. § DEVELOPMENT OF IP-BASED MMS. FAQ: Still many questions about 3G → ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 MOBTEL’s Migration Path to 3G FAQ We have still many questions about real life experience in implementing 2G(GSM) / 3G/UMTS seamless network: § How much will it cost ? § How will make it work efficiently ? § What benefits will we get from it ? § Coexistance between GSM and UMTS ? § Possible network architecture ? § Interworking approaches ? § What parts of GSM core infrastructure can be used for UMTS core network ? § Understanding tha phasing of the core network ? § Functionality within UMTS interfaces and UTRAN protocols ? § Comparison of GSM/UMTS coverage ? § Planning the UMTS radio network design ? § What are the security of the UMTS SIM ? § Users experience in handover or roaming between 2G and 3G network ? Equipment manufacturers will need to offer complex handsets in time ! ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 13 MOBTEL’s Migration Path to 3G Thank You! Radmila Simic Project Manager for Strategic development radmila.simic@mobtel.co.yu ITU-BDT SubRegional Seminar on IMT-2000 Ljubljana 1-3/12/03 14