technology disrupts but monetization uncertain
DESCRIPTION
Radisys CTO Manish Singh discusses what technologies and applications are going to be the most disruptive to the marketplace at Small Cells Asia 2012.TRANSCRIPT
Technology to Drive Disruption, Monetization Mired in Uncertainty
Manish Singh, CTO
Small Cells Asia, March 2012
2 Radisys Corporation Confidential
At a Glance
Embedded
Wireless
Infrastructure
Solutions
Protocol Software
Professional
Services
COTS Platforms Media Server / MRF
Single Solutions Source Worldwide Customer Base
Market Research Report Available at Radisys Stand
3 Radisys Corporation Confidential
Technology to Drive Wireless Disruption, Service Monetization Mired in Uncertainty
Global survey of mobile operators
to get decision-maker insights
Devices continue to drive change
among subscribers & operators
VoLTE is seen as necessary but
not a top priority
Small Cells and Wi-Fi offload
provide a capacity boost
LTE Advanced will bring improved
spectrum efficiency & lower costs
FDD & TDD will both succeed, but
not yet clear how they will coexist
4 Radisys Corporation Confidential
Data Remains the Growth Engine
Capacity Mind The Gap
Text
Traffic Doubling every 12 months
Video = Operators’ Albatross
Increase ARPU
Lower Cost per Bit
Source: Cisco VNI Source: Heavy Reading
Revenues
Traffic
Revenues &
Traffic Gap
Widening
Revenue vs. Traffic Growth
Voice Era
Data Era
5 Radisys Corporation Confidential
Devices Drive New Usage Models
“New form factors will emerge, but change will continue to be driven by smartphones and tablets,
entering new segments and expanding their functionality.” – European survey participant
Devices will continue changing
the usage model
Smartphone adoption spreading
to feature phone users
Tablets may create a second
wave of traffic increase
Increase adoption of data-centric
devices drives innovation among
operators
Cloud applications will have an
impact on design of devices
6 Radisys Corporation Confidential
Smartphones, Tablets, Notebooks…
Cameras, eBooks, Med Devices, Gaming, Navigation…
Mobile Internet of Things
Smartphones Tablets Notebooks
IP Cameras eBooks
Personal
Medical
Devices Gaming Consoles Connected Cars
7 Radisys Corporation Confidential
Intelligence Flight Continues
eNodeB
eNodeB
eNodeB
MME / Serving GW
X2
S1 S1
MME / Serving GW Cloud
Devices
Dumb Pipe?
Intelligence Flight from Network to Devices & Cloud
8 Radisys Corporation Confidential
VoLTE: Eventually Needed, But Not Yet
“Circuit-switched voice is not going to disappear over the next five years. But we do need VoLTE to
gradually reduce our dependency from legacy 3G and 2G networks.” – APAC survey participant
Voice is still an essential
component and necessary to
LTE’s success
VoLTE needed to decrease
dependency on legacy
networks
Concurrent voice and data
connectivity is a driver to
deploy VoLTE soon
Revenues are largely
unaffected by introduction of
VoLTE
9 Radisys Corporation Confidential
MPX-12000 – VoLTE MRF Video & Voice over LTE
VoLTE Media Resource Function
• High Definition Voice, including AMR-WB
• VQE – critical media conditioning in noisy
wireless environment
Conversational Video
• Video calling – HD video 720p, H.264
• Video conferencing
• Video Transcoding
Audio/Video VAS
• Conferencing, Ringback, Multimedia mail…
Open 40G ATCA Platform
"Mavenir has already integrated the Radisys CMS-9000 media server with our mOne Convergence
Platform for one of our LTE operator deployments…. Products like the MPX-12000 – with a design
objective to increase MRF media processing capacities for mobile video services – offers an enticing
MRF product evolution for LTE operators"
– Terry McCabe, CTO, Mavenir Systems
10 Radisys Corporation Confidential
Small Cell and Wi-Fi Offload: the Quest for Capacity Density
“Today it is Wi-Fi offload, but in the long-term small cells will become more important to increase
capacity.” – North American survey participant
11 Radisys Corporation Confidential
3G / LTE Small Cells
3G Femtotality
LTE TOTALeNodeB
Multi-mode.. 3G + LTE + Wi-Fi
60+ LTE / 3G Small Cell Licenses
Coverage
Cap
acit
y
Macro
Micro
Pico
Metro
Femto
Our Focus: Small Cells
12 Radisys Corporation Confidential
SEG – Wi-Fi & LTE Security
Macro Backhaul Security Small Cells Backhaul Security
Secure Wi-Fi Offloading
MME
eNodeB
S1u X2
S11
SGW
4G
MME
Femto
Metro
IPsec Tunnel
SGW Untrusted IP
Network
PGW
AAA
Wm
Gn‟
Wu
Wi-Fi
AP ePDG
Untrusted IP
Network
SEG + TTG + ePDG
IPsec Tunnel
IPsec Tunnel
13 Radisys Corporation Confidential
LTE’s Future: LTE-A, TDD-FDD Networks
“LTE-A will be a gradual & incremental upgrade, with carrier aggregation as its main component. Without it, most
operators without 20MHz channels cannot fully benefit from the new technology.” – North American participant
“Traffic loads are growing so fast that FDD LTE will not be sufficient alone. We will need TD-LTE as well.”
– APAC survey participant
14 Radisys Corporation Confidential
Fragmented Spectrum Challenge & Opportunity
The Spectrum Challenge
• 700MHz
• 2.6GHz
• AWS bands
• Digital Dividend
• 900 / 1800MHz re-farming
Roaming Requires Harmonization
Frequency Impacts Network Costs
• Increases with frequency
TD-LTE = Opportunity
• FDD for Macro
• TDD for Small Cell
Multi-Band Deployment
• 700MHz for Macro
• 2.6GHz for Small Cell
2.6 GHz
2.6 GHz
2.6 GHz
700 MHz
Cell radius ~30 – 300m
Cell radius ~1 – 3km
15 Radisys Corporation Confidential
Wired Backhaul
LTE-Advanced (LTE-A) ITU-T’s True 4G… Marketing’s 5G…
3GPP R10
Carrier Aggregation • Aggregate multiple contiguous & non-contiguous carriers up to 100MHz
• Peak data rates 1Gbps
LTE Relay Node (RN)
• Over-the-air (OTA) backhaul
• Coverage
• Cell-edge throughput
3G
5 MHz
LTE
20 MHz
LTE-A
20 MHz
LTE-A
20 MHz …
Macro
„Donor eNB‟ Relay (RN)
16 Radisys Corporation Confidential
A Conspicuous Absence: Service Creation and Monetization
Drivers related to new
services & monetization
did not make it the top six
drivers: Why?
Path to revenues not as
clear as the technology
and device path
Many opportunities,
unclear strategy
“We cannot afford to manage traffic growth without a corresponding increase in revenues. We have
ways to increase capacity, but we cannot necessarily afford it.” – European operator
Source: The observer effect, theobservereffect.wordpress.com
“Counting packets is not the way to make money.” – North American operator
17 Radisys Corporation Confidential
Video Calling – LTE’s Killer App Bringing Intelligence Back
Video Calling Today Video Calling Tomorrow
Infrastructure in Place: Smartphones, Tablets, etc.
3G / LTE networks
Operators’ Opportunity Beyond a Bit Pipe
ARPU Generator
Device Silos iPhone: Facetime-to-Facetime ONLY
Skype breaking silos
WiFi Access Limited Mobility, hotspot bound
Internet Core Best effort, no QoS
Breaking Silos Ubiquitous video calling
Interworking = MRF transcoding
3G/LTE Access Ubiquitous mobility
EPC + DPI Conversational managed QoS
LTE + IMS
18 Radisys Corporation Confidential
Video Conferencing Today
Video Conferencing Tomorrow’s Value Added Service
Extend Video Conferencing Beyond conference rooms
Mobile work force, remote executives
Video Ringback, Video mails, etc.
Operators’ Opportunity Beyond a bit pipe
ARPU generator
New revenue streams
Counter OTT threat
LTE+IMS
Video Conferencing Tomorrow
19 Radisys Corporation Confidential
Taking Charge of the Mobile Broadband Experience
“RAN-aware real-time traffic management brings the operator closer to what subscribers wants to
do, when and where they are.” – European operator
Carriers control a precious
asset: information on
subscribers’ location, activity,
and devices
Yet, they feel distant from
subscribers
What’s needed: fine tune
services to match network
resources & subscribers’
behavior & expectations
How: active, real-time traffic
management
Encourage service adoption,
increased data consumption to
reach sustainable profitability
20 Radisys Corporation Confidential
DPI = Control
Tiered SLAs
App- based QoS
Maximum Network
Monetization
Video Conference
Operator VoIP
Gaming
Video on Demand
Business Class VPN
P2P
Browsing
Platinum
Bronze
Silver
Gold
21 Radisys Corporation Confidential
Enabling LTE End-to-End Solutions From Access to IMS
Embedded Wireless Infrastructure Solutions
Evolved Packet Core Policy Control Radio Access Network IMS
Application
Server
Media
Resource
Function
IP
Multimedia
Subsystem
Internet
Policy &
Charging
Routing
Function
Policy &
Charging
Enforcement
Function
Mobility
Management
Entity
LTE Security
Gateway
Serving
Gateway
Packet
Gateway
eNodeB
User
Equipment
Macro Small Cells
60+ Customer Wins
Audio Video Conf
~65% Market Share
10G 40G ATCA
~40% ATCA Market Share
Dumb Smart Pipes
Traffic Management
Home eNodeB
User
Equipment
22 Radisys Corporation Confidential
Embedded Wireless Infrastructure Solutions