challenges in r&d transformation to china -...

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Challenges in R&D Transformationto ChinaJRC-IPTS, European CommissionFebruary 17, 2011

Jörg SiewerthNokia Siemens NetworksHead of Productivity

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Outline

About Nokia Siemens Networks

Characteristics of Chinese Telecom Market

Challenges in R&D Transformation

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Nokia Siemens NetworksGlobal company with a rich heritage

• Joint Venture of Nokia and Siemens• Started operations on April 1, 2007• €12.7 billion net sales in 2010• 120+ years of telecom experience• 65,000+ employees• 28,000 service employees• 75 of top 100 operators worldwide• 150 countries• 2 billion connections served

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Every day, a quarter of the world’s population connect over our infrastructure and solutions

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Global Network of R&D Centers close to our Lead Customers around the World

Main Development Centers in China

Main Development Centers in India

Main Development Centers in Europe

Main Development Centers in North America

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Nokia Siemens Networks in Europe

• More than 25.000 employees; thereof more than 10.000 in R&D

• Company’s corporate headquarter• One of the company’s three laboratories

is located in Finland. It has a full network environment available 24/7 to its global R&D teams for testing

• Key manufacturing location for its radio products in Europe; essential part of the company’s global manufacturing network

Germany

Finland

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Nokia Siemens Networks in China

• 7.000 employees (10% of Nokia Siemens Networks’ global workforce)

• Research, R&D, Product Management, Manufacturing, Sales and Services

• Suzhou factory manufactures for both global and local customers

• Continuous investment in 6 R&D centers in China

• Serving all 3 Chinese mobile network operators China Mobile, China Unicom and China Telecom

China

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Outline

About Nokia Siemens Networks

Characteristics of Chinese Telecom Market

Challenges in R&D Transformation

9 © Nokia Siemens Networks 2011

2007 2008 2009 2010 2011 2012

GSM/EDGE

GSM/EDGE

FDD-LTE

TD-LTE

W-CDMA/HSPA FDD-LTE

2G 3G 4GTechnology GenerationPossibility / Alternative Path

CDMA/1x CDMA/EVDO

FDD-LTE

TD-LTE

UL >50Mbps DL >100Mbps

UL >50Mbps DL >100Mbps

UL >50Mbps DL >100Mbps

UL >50Mbps DL >100Mbps

TD-SCDMA driven from China

WCDMA/HSPA and FDD-LTE driven from Europe

CDMA/1x driven from US

China’s Evolution of Mobile Industry

TD-SCDMA/ HSPA ~ 550 mio. mobile subscribers

~ 160 mio. mobile subscribers

~ 75 mio. mobile subscribers

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• Development path for TD-SCDMA• Strongly backed and promoted by China

Mobile• Solution for un-paired spectrum• Integrated part of 3GPP LTE standard• Potentially 30% of total LTE market • First deployments in mid 2011• Synergies with global LTE

Brief TD-LTE IntroductionWhat is driving the momentum

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Confidential 10 © Nokia Siemens Networks

TD-LTE Roadmap Overview (Oct ’09)

High speed BroadbandSelf-Organizing Network

Quality of ServiceAdditional IRAT mobility

Spectral efficiency maximization

MIMO 2x2Intra-frequency mobilityFrequency reuse >1Inter-frequency mobilityFair schedulerNetAct - FMFlexi System Module: FSMEFrequency bands:• 2300 MHzCell Bandwidth: 10, 20 MHzEthernet transportSynchronization from GPS2DL:2UL configuration

GBR EPS bearerMultiple EPS bearersSupport of higher order MIMO:• 4x2• 4x4• 4 way RX divCS fallbackSRVCCSON:• SON - Automatic Neighbor Relation

(ANR) for LTECell Bandwidth: 15 MHzAdditional Frequency bands:• 2600 MHzUp to 6 cells per Flexi BTSIPv4/IPv6 dual stackFlexi System Module: FSMDSynchronization from Ethernet

Active Antenna SystemBeamformingTTI bundlingUL Multi User MIMOFemto eNBAdditional Frequency bandsCell Bandwidth: 1.4, 3MHz

Air Interface PerformanceFlat ArchitecturePre-commercial

S1 FlexSON:• BTS Auto connectivity• BTS Auto configuration• NetAct Optimizer for LTE Integration• Automatic Neighbor Relation with

OAM for LTEBandwidth: 5MHz77 km cell rangeReconfigurable TDD frame structure:• 3DL:1UL configurationInter RAT handover to TD-SCDMANACC to GSM

RL05TD Under Development

RL15TDUnder Development

RL25TDUnder Planning

RL35TDStudy Items

Does Not Reach Customer Expectation

NSNRoadmap

CMCC/MIITTestingschedule

Top u

p com

plian

ce

testin

g with

gap f

illers.

Specia

l team

LTE common

TDD specific

R&D

TD-LTE – How Nokia Siemens Networks has done it

• Moved R&D and Product Management close to the lead customer

• R&D, sales and product management share the same fact base from the customer

• Significantly improved R&D capability• Reviewed and reprioritized roadmaps

according to the customers time table• Compliance team to win the admiration of

China Mobile and score well in the test

R&DSalesProdM

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• Leverage Hangzhou R&D facility• Smart phone and terminal testing facility • Practical know-how sharing• Interoperability and Functionality of devices

across TD-LTE networks• Expert pool of interoperability testing (IOT)

Hangzhou, China – April 16, 2010Industry’s first TD-LTE Open Lab to Accelerate TD-LTE Ecosystem

Holistically driving the TD-LTE EcosystemIndustry’s 1st TD-LTE Open Lab

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Outline

About Nokia Siemens Networks

Characteristics of Chinese Telecom Market

Challenges in R&D Transformation

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Challenges in R&D Transformation

Human Resources Technology Transfer Regulations

• Increasing competition about talents

• High attrition in China tier 1 cities

• Finding senior and middle management candidates

• Higher expectation for career development

• New demands for leadership and management style

• Product ownership to encourage site identity

• Responsibility for know-how transformation at receiving end

• Expatriates to support sustainable know-how transfer

• Restricted access to public funded R&D programs for foreign companies and joint ventures with foreign majority

• IPRs generated in public funded R&D programs accessible to foreign companies cannot be owned by the inventor

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Opportunities

Human Resources Company Culture Market Evolution

• Company brand is important for new employees

• European corporate values and culture are seen as asset and help retaining talents

• Availability of professionals with high education and world-class skills

• Raising awareness for company IPR values

• New generation of Chinese employees are challenge for Chinese managers of previous generations

• European leadership culture has tools to work with the new generation

• European companies have long experience and tradition to work with unions

• Growth of the domestic market in China

• European companies should join the effort to develop interior of China and gain goodwill and utilize government benefits

• European companies should have access to government benefits similarly as Chinese companies have in Europe

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The Future changes every Day