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Target Networks in 5G Era Embracing Mobile Network 2020s

Contents Foreword

02

1

Opportune Development of Target Networks

03

2

Target Networks in 5G Era = 4.5G Evolution + 5G NR

03

3

Evolve SingleRAN with 5G Technology Make Sites 5G-Ready in Evolution

05

4

5

6

3.1

Large-scale 4T4R Deployment: Foundation for 5G

05

3.2

Massive MIMO for Hotspot

3.3

Antenna Modernization

3.4

Sites Ready for 5G NR

3.5

Indoor Digitalization

3.6

Site Acquisition

06 07 08 09 10

Mobile Cloud Transformation 4.1

Flexible 5G-Oriented CloudRAN Architecture

4.2

CloudAIR Spectrum Sharing

4.3

Uplink and Downlink Decoupling for Enhancing 5G Coverage

4.4

Evolution of All Spectrum Towards 5G

4.5

NSA Architecture Anchored on LTE for Initial Stages of 5G

New Capabilities Enable New Services and Growth

11 11 12 13 14 15 16

5.1

VoLTE and Video Drive Operators' Revenue Growth

5.2

WTTx Emerges as Fourth Access Mode

5.3

Mobile IoT Will Shift from Narrowband to Broadband

5.4

Wireless X Labs Explore New Businesses

16 17 18 19

Vision of Target Networks in 5G Era

20

TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

Foreword Digital transformation is at a critical juncture, with a diverse range of industries making changes that significantly transform the way people live and work. These shifts have been driving advancements in the financial, transportation, manufacturing, governmental, and many more sectors. Innovative mobile broadband technologies, an underlying infrastructure, are a key driving force behind the digitalization of all walks of life. With the rapid development of 5G, an increasing number of new applications and business models will reshape the social and economic formation. Such changes will stimulate strategic planning regarding industry opportunities, technical evolution, network architecture, and other areas. Telecom operators are growing increasingly concerned with the creation of a new target network to maximize return on investment (ROI) and achieve business success while maintaining a competitive edge for the future. Global operators are promoting early deployment of 5G and innovative business models through continuous 4G evolution. This has led to today's business achievements and has laid a solid foundation for the huge potential of 5G. With a gradual consensus being formed for the entire industry, all related players in the industry chain will develop close collaboration to embrace a brighter future for the wireless network industry. Continuous 4G evolution, a road to 5G!

Dr. Peter Zhou CMO, Wireless Network Product Line, Huawei

02

TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

Opportune Development of Target Networks As 5G standardization and commercialization accelerate, the world is about to witness a transition from 4G to 5G. At this critical time, operators must bear in mind the ultimate goals, make advanced preparations, and engage themselves in the deployment of 5G-oriented target networks. Highly competitive networks will play a decisive role to the success of 5G. Leading global operators now have clear viewpoints about future target networks. For example, a Chinese operator perceives the addition of the 5G new radio (NR) to the continuously evolving LTE system as the defining feature of 5G era target networks. According to a Japanese operator, 2020 will witness the co-existence of 5G and the ongoing evolution of 4.5G, while s can enjoy Gbps-level data rate. An operator from Korea believes that target networks will adopt the None-standalone Architecture (NSA) with LTE as the anchor. C-band and millimeter wave (mmWave) will be added for 5G while sub-3 GHz bands are going to be used for continuous LTE evolution. The European Union (EU) generally agrees with Japan and Korea and notes that 5G deployment will begin in urban areas. As a Chinese saying goes, "It is better to start weaving your fishing nets than merely coveting fish at the water." Instead of iring the myriad promises of 5G, related parties must act now to invest in 5G target networks, build early 5G competitiveness, and cultivate new businesses. More importantly, operators can reap the benefits of 5G on 4G networks, while smoothly shifting s from LTE to the next generation of mobile networks.

Target Networks in 5G Era = 4.5G Evolution + 5G NR Huawei believes that network competitiveness in the 5G era is not solely decided by the newly introduced 5G spectrum, but by multiple radio access technologies(RATs) and multiple frequency bands. In other words, target networks in the 5G era will be marked by the evolution of all spectrum, the fusion of all RATs, and the development of all industries.

03

TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

Figure 2-1 Essence of target networks

B2C: Voice, video B2H: WTTx B2V: NB-IoT More new businesses…

Development of All Industries

2G/3G: Shut down, releasing spectrum for 4G 4G: Continuous evolution Co-existence with 5G

Target Network 2020s Fusion of All RATs

Evolution of All Spectrum

Sub-3 GHz: Continuous LTE evolution C-band: 5G's first commercial spectrum mmWave: Hotspot capacity boosting

Evolution of all spectrum: C-band is a globally harmonized 5G spectrum and is set to be the first band for commercial 5G deployment. mmWave will serve scenarios such as home broadband as well as indoor or outdoor hotspot locations. Sub-3 GHz spectrum will continuous LTE evolution. Network-wide 4T4R will be the base for future networks with Massive MIMO deployed at hotspot areas. Sites will become ready for 5G NR and all spectrum will be available for 5G. Fusion of all RATs: More than 20 global operators are shutting down or are planning to withdraw from 2G or 3G services. The spectrum resources released from legacy RATs are refarmed for 4G. Continuous 4G evolution is constantly improving experience while co-existence of 5G and 4G evolution is expected to arise as the long-term standard. Just as new technologies once brought 4G to 4.5G, the introduction of nTnR, Massive MIMO, "one-plug in, all 5G" solution, antenna modernization, and other technologies on current 4.5G networks can facilitate smooth 5G-oriented evolution. Development of all services: As 5G technologies mature, voice, video, and other conventional B2C services will keep getting better, while B2H services such as WTTx and B2V services such as NB-IoT will also become more advanced. Various innovative businesses such as Internet of Vehicles (IoV), drones, and AR/VR are currently under development and will flourish in the new 5G era.

04

TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

Evolve SingleRAN with 5G Technology Make Sites 5G-Ready in Evolution 3.1 Large-scale 4T4R Deployment: Foundation for 5G Rapid growth of MBB services such as mobile video has generated an exponential surge in data traffic, creating capacity and experience challenges for various operators. Operators must discover greater spectral efficiency, and multiple-antenna technology is an effective solution to help tackle these concerns. Network-wide extensive 4T4R deployment can greatly boost cell capacity and enhance cell coverage. Cell edge s in particular will be able to enjoy better voice and video services. These improvements in coverage and experience will become more pronounced with the enabling of software features like TTI Bundling(TTIB) and Turbo Receiver. Figure 3-1 Enlarged coverage with 4T4R

4T4R Enlarging Coverage +3 dB 4T4R @ 1.8 GHz

1800 MHz LTE

+2.5 dB*

Legacy 2T2R @ 1.8 GHz

2T2R

4T4R

0.81 km

0.989 km

4T4R*

1.163 km

*Features TTIB+Turbo Receiver MCS/RB Traversal for Best Transmission Block(TB)*

4T4R can offer a substantially enhanced experience. As the terminal is upgraded from 2R to 4R, the single- downlink peak rate can be increased to 1.8 times, while that in the uplink will increase to 1.4 times. With the deployment of 5G, shifting from an LTE 4R handset to a 5G NR device will produce a further 1.51 times and 1.23 times improvements in single- downlink and uplink peak rates respectively.

05

TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

Figure 3-2 Gradual experience improvement as 4R terminals increase

Better Experience as 4R Terminals Increase

2T2R LTE

4T4R LTE

5G NR

1.4×（UL）

1.23×（UL）*

1.8×（DL）

1.51×（DL）* 4R LTE terminal

4R 5G NR terminal

* UL/DL data rate * Simulation result with some 5G NR features

The idea of deploying 4T4R as the foundation for 5G has been widely accepted throughout the industry. In of terminals, major manufacturers including Huawei, Samsung, and Sony have rolled out a total of over 20 models of 4R terminals. This indicates the arrival of a new stage of smart terminal development marked by Gbps-level data rates. As 4R terminal's penetration rate rises, the gains of 4T4R will also continue to increase. As for networks, more than 60 operators worldwide now boast large-scale commercial 4T4R deployment and this figure is expected to exceed 100 by the end of 2017.

3.2 Massive MIMO for Hotspot Figure 3-3 High rises with heavy traffic, severe interference, and suppressed uplink

Heavy Traffic

High Rise

Severe Interference

Suppressed Uplink

Massive MIMO provides independent narrow beams targeted at multiple s and transmits data through a -specific space isolation system. This helps increase system throughput by dozens of times. Leading operators around the globe have already begun deploying commercial Massive MIMO.

06

TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

China Mobile has adopted Massive MIMO to serve high rises that suffer heavy traffic, severe interference, and suppressed uplink. According to the test results, Massive MIMO delivers pronounced enhancement in capacity, coverage, and experience. At present, Beijing, Shanghai, Tianjin, and many other Chinese cities have all seen large-scale Massive MIMO deployment. This technology has been used for the Tianjin National Games, the BRICS Summit, concerts, and a myriad of other grand events. This technology has proven to enhance experience in heavy-traffic areas such as central business districts (CBDs), business streets, high rises, university campuses, traffic hubs, and sports venues, while helping to unleash traffic demand. SoftBank Japan is another operator with large-scale commercial Massive MIMO deployment. In September 2016, SoftBank launched a Massive MIMO-based "5G Project". The test reveals that even in densely-populated areas with heavy traffic such as stations and city centers, the average data rate remained stable at around 400 Mbps. Large-scale commercial Massive MIMO deployment enabled SoftBank to continuously deliver superior experience. The combination of Massive MIMO and highly competitive data packages was the perfect pairing to attract many new s for SoftBank. This year, SoftBank has sought to increase its investment in commercial Massive MIMO deployment. It has also released the "50 GB plan" with its industry-leading network and experience as a solid base.

Figure 3-4 SoftBank's release of Massive MIMO-based "5G Project"

3.3 Antenna Modernization The traditional approach requires the addition of new antenna and radio frequency modules whenever new bands are introduced. Such mode often results in heavily-loaded towers, high rents, and difficult maintenance, leaving no space for either band addition or the deployment of 4T4R and Massive MIMO. An alternative solution must be realized to help meet the network construction demands of 5G. The latest "all-in-one" ive antenna solution is Huawei's answer to alleviate such concerns. A single antenna can all sub-3 GHz frequency bands and high-band 4T4R. The site will grow simpler, towers will be free from heavy equipment, and more space can be reserved for future addition. When it comes to 5G deployment, all operators are required to do is to simply add 5G antennas to the reserved space on the mounting poles. Two antennas per sector will then be able to all RATs.

07

TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

Figure 3-5 Antenna modernization

All-in-One Modern Antenna Two antennas per sector Difficult new antenna addition

All-in-One ive Antenna

Ant 1 14-port*

Ant 2 6-port

Ant 1 4-port

5G Antenna

AAU 1 L-band

Now

900 800

2600

900

Future

2100

800

1800

700

1800 4T4R C-band Massive MIMO

2100 4T4R 2600 4T4R

3.4 Sites Ready for 5G NR After incorporating advanced solutions such as 4T4R, 8T8R or even Massive MIMO, antennas, radio frequency (RF) modules, and other 4G hardware are ready for 5G-oriented evolution. With just a few simple extra steps, sites will be fully 5G compatible. This smooth evolution process features low demand on equipment, reduced costs, and decreased site operating expense (OPEX). Huawei's latest BTS5900/DBS5900 multimode base stations 5G NR, 4T4R, and Massive MIMO. When it comes to 5G deployment, operators only need to simply add new 5G NR baseband boards and upgrade the software, making "one plug-in, all 5G" a reality. The industry-leading 5000 series RF modules feature innovative radio platform and multi-antenna technologies, boasting high performance and low power consumption. One of the low-frequency band modules s sub-1 GHz (700 to 900 MHz) and has 2T4R as its basic configuration. The other s sub-1 GHz to sub-3 GHz, and features 4T4R configuration (multiple blade RRUs or multi-band modules). The 5000 series new platform boasts one-time deployment and instant payback, protecting operators' investment while accelerating the introduction of 5G. Figure 3-6 Site modernization

5000 Series Radio Units

One Plug-in, All 5G 5G-Ready Site

4G

All-in-One

4T4R Massive MIMO

Reserved for Massive MIMO

BBU5900 Blade RRU

Blade RRU

2G/3G/4G/5G in one module New BBP boards with maximum capacity of 64T64R massive MIMO (3x3x100 MHz)

08

Massive MIMO

2x capacity 72 4T4R cells

BBU5900

EasyMacro

Power consumption: Size:

40%

PIM:

75%

Installation time:

5% to 15%

30%

Multi-antenna technology

TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

3.5 Indoor Digitalization Based on the analysis of the abundance of data on the live network, over 70% of the data traffic in mobile networks is generated indoors. With the arrival of the 5G era, indoor networks emerge as a competitive focus. Much attention must be paid to indoor network quality and capacity improvement. Traditional indoor distributed networks use the distributed antenna system (DAS) originating from the 2G/3G era to solve the issue of weak indoor coverage. In comparison, the LampSite3.0 indoor digital solution improves deployment efficiency and reduces costs. It s 5G-oriented evolution in of network architecture and main hardware platforms, protecting operators' mid- and long-term investments and meeting requirements for 5G-oriented service experience.

Figure 3-7 LampSite 3.0 ing a smooth evolution to 5G

Operator A BTS/RRU

ing 5G by Adding 5G NR pRRUs Sub-2.6 GHz 4 bands in one DCU

RHUB

RHUB pRRU

CAT5/6

CAT5/6

pRRU

RI Sub-2.6 GHz 4 bands in one New 5G NR pRRU

Future proof with embedded cables

Operator D BTS/RRU

Table 3-1 DAS and LampSite technical comparison

DAS

LampSite

Feeders are used to transmit analog RF signals (signal attenuation increases with signal frequency).

CAT5/6 Ethernet cables are used to transmit digital RF signals (signals are not sensitive to frequency).

Evolution capability to 5G

ive components such as couplers and antennas do not yet C-band and can’t 5G NR

5G can be ed by embedding a CAT5/6 Ethernet cable and adding pRRUs ing 5G NR (all cables are unchanged).

experience

Multiple feeders and antennas are required for the of MIMO (deployment is difficult and expensive).

Gbps-level experience can be provided with the of multiple frequency bands (900 MHz to 2.6 GHz), multiple RATs including 2G, 3G, and 4G, virtual 4T4R, and 5CC CA.

Transmission

09

TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

In 2016, Baotou China Unicom deployed the Huawei LampSite solution in Baotou Vocational Education Campus. The 4G peak rate in the campus increased from 29.3 Mbps to 130.4 Mbps. However, since February 2017, campus network traffic has increased by five times within one month after the release of high-traffic packages. The cell capacity over the 1.8 GHz band deployed at the early stage becomes saturated and so an urgent need exists to implement rapid capacity expansion. Solutions such as indoor cell split and 2.1 GHz LTE carrier usage are then adopted based on an analysis of current traffic conditions. The duration between the customization and deployment of the LampSite capacity expansion solution is limited to only one week. After the expansion, the daily traffic in the campus is increased to 2.5 TB. Compared with the traditional DAS solution, LampSite does not require secondary design, coordination and construction. This simplifies capacity expansion and shortens the construction period, facilitating the service development of Baotou China Unicom in the campus market.

3.6 Site Acquisition With the rapid development of mobile broadband services and continuous network evolution, more frequency bands and sites are required to provide services and meet the requirements of ubiquitous coverage and heavy traffic. However, the traditional approach of additional macro site deployment encounters difficult site acquisition, complex approval procedures, and high OPEX. This impacts the speed of site deployment, which cannot meet the requirements of growing services. For example, site acquisition in some areas can generally require two to six months, with site construction lasting for 12 months. The total construction, energy, and site rental costs can for up to 55% of total cost of ownership (TCO). TubeStar, PoleStar, and RuralStar reconstruct site TCO and enable cost-efficient site deployment in various scenarios. These new site solutions help operators reduce site acquisition difficulty, decrease construction costs and site rentals, and resolve the issue of transmission and power supply. These solutions efficiently provide basic coverage and excellent experience to increase both network capacity and quantity. TubeStar: This solution enables the pipe to be integrated with the cabinet with the bottom diameter of 800 mm and built-in main equipment. The large-capacity cabinet can five to seven frequency bands. The footprint is reduced from 30–100m² to 2m² and the site acquisition period is shortened from six to two months. The 5 year TCO can be reduced by 30%. In addition, Massive MIMO evolution ports and 8T8R expansion cabins are reserved to further 5G-oriented evolution. PoleStar: This pole-mounted site solution is applicable to reused poles, new poles, and aggregation sites. This solution shares traffic, improves deep coverage, enhances coverage in hotspots, and fills coverage holes (TCO reduced by 40%). RuralStar: This solution meets requirements for low costs and accurate coverage in remote rural areas. It uses idle LTE spectrum in rural areas and non-line of sight (NLOS) transmission of the relay to convert tower-mounted sites into pole-mounted sites, providing wide and accurate coverage for remote villages. The TCO can be reduced by 30%, with ROI obtained within three years of a village with about 2.000 people.

TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

Figure 3-8 Three new "Star" sites

3 “Star” Help to Acquire more Sites for 5G Preparation Camouflage cover Antenna Section (4m)

3*RF Antennas

BBU 3910C

MW Antenna(Optional) MW

Extension Section (3.7m/9.7m)

3*Massive MIMO(Reserved)

Easy

RRU5909 Book

Yagi Antenna

Macro RRU

RRN3911

Max 15*RRUs

Combiner Cabin

18m/24m

OR

Height RRU Cabin Equipment Section (10.3m)

Max

Max

Transmission

2*BBUs

5*3000W

(Fiber or MW)

BBU/Power/TX Cabin

Blade BBU Blade Power Blade Battery

Battery Cabin

Battery

2~4k

4*100AH

m

Footprint~2㎡@24m

TubeStar

PoleStar

RuralStar

Mobile Cloud Transformation Enables Flexible and Agile Architecture Along with the improved network hardware capabilities, the future network architecture must offer enhanced features to face several challenges brought by various services. The entire mobile network architecture is redesigned based on the cloud technology to include resource management, multi-connectivity, and flexible architecture. As a result, unit-based on-demand deployment and agile service provisioning are realized to help handle any future unexpected eventualities.

4.1 Flexible 5G-Oriented CloudRAN Architecture Compared with the traditional RAN architecture, CloudRAN splits the real-time part and non-real-time part of the base station to form a CU/DU split architecture. CU and DU are short for central unit and distributed unit, respectively. Huawei CloudRAN allows the CU to be deployed on different platforms. CU and DU can be deployed centrally or separately. For example, the CU can either be deployed on a common commercial off-the-shelf (COTS) server or be deployed on a BBU or CloudBB in combination with DUs. CloudRAN's flexible architecture can accommodate diverse 5G services with the CU deployed in different positions of the network based on service latency requirements. For example, Internet of Vehicles (IoV) requires a low latency, and the CU is ideally deployed in close relative proximity near to the base station.

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TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

Figure 4-1 CloudRAN, Agile Architecture for Diversified Services

On-Demand Deployment

<5ms

Latency

>20ms

Network Convergence

Adaptive Openness

Ultimate experience & reliability ADS

Indoor Navi. Video Ace. Precise Ads.

18

3-6

Months

Months

API API

API

TTM

Agile Service Delivery

Huawei is committed to exploring and promoting CloudRAN standardization and commercialization. Huawei proposed the concept of CloudRAN at the Global Analyst Summit in April 2016, released the CloudRAN solution at 2016 Global Mobile Broadband Forum, and published a white paper at the 2017 Global Analyst Summit. The split architecture of CU and DU in CloudRAN has been recognized by the 3GPP standard organization and will be included in R15 by Q2 2018. Huawei and tier-1 operators have implemented Proof of Concept (POC) tests on CloudRAN to the flexible deployment and gains on network performance. CloudRAN is scheduled to pre-commercial use in Q1 2018 and achieve full commercial use in Q4 2018 along with 5G.

4.2 CloudAIR Spectrum Sharing CloudAIR spectrum sharing uses innovative technologies to handle spectrum resource restrictions on RATs, remove the bottleneck for introducing new RATs, and change the spectrum usage method from refarming to sharing. This allows different RATs to share the same spectrum and maximize spectrum value. The CloudAIR spectrum sharing solution has the following characteristics: More efficient use of air interface resources: Spectrum cloudification allows for faster deployment of new RATs and improves experience using the same air interface resources. Faster introduction of new RATs: This requires the existing spectrum to be shared by the new and legacy RATs based on permeability and traffic changes. Long tail issue of legacy RATs: In many regions, full disuse of 2G and 3G networks is expected to be a lengthy process. CloudAIR allows new and legacy RATs to dynamically share spectrum resources, automatically reallocating the majority of spectrum resources to new standards based on traffic requirements.

12

TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

CloudAIR spectrum sharing mainly includes GU, GL, UL, as well as LTE and NR spectrum sharing and other solutions. GU, GL, and UL spectrum sharing enable different RATs to implement sharing in the frequency domain. Both 4G and 5G are based on orthogonal frequency division multiplexing (OFDM). Therefore, LTE and NR spectrum sharing allows for the flexible sharing of more frequency- and time-domain resource blocks, facilitating a quick introduction of 5G NR on low-band spectrum. Up to now, the LTE and 5G NR spectrum sharing standardization proposal has been adopted into 3GPP, and will be concluded in Release 15.

Figure 4-2 CloudAIR spectrum sharing

1-Dimension Sharing

2-Dimension Sharing

Frequency

GSM

LTE

200 KHz 180 KHz

NR RB LTE RB

Time

Frequency

GSM&LTE Sharing

NR&LTE Sharing

4.3 Uplink and Downlink Decoupling for Enhancing 5G Coverage

The higher frequency leads to larger penetration loss and poor coverage. For example, 3.5 GHz (as the first commercially used 5G band), provides insufficient coverage. There is a 13.7 dB gap in the uplink coverage between the 3.5 GHz and 1.8 GHz bands, and the traditional solution of increasing the number of sites is often implemented to help bridge this difference. However, site acquisition is difficult and the cost is high. As a result, Huawei proposes uplink and downlink decoupling to efficiently solve this troubling dilemma. Typically, 3.5 GHz is used in the downlink to transmit signals and 1.8 GHz or 3.5 GHz is used on the terminal side to send signals. This provides the same uplink and downlink coverage as that of 1.8 GHz. And it is confirmed that 5G NR uplink and downlink decoupling will be included in 3GPP Release 15.

13

TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

Figure 4-3 Enlarged 5G NR uplink coverage with uplink and downlink decoupling

UL and DL Decoupling Enlarging 5G NR Coverage 3.5 GHz Covering the Same Distance with 1.8 GHz

1.8 GHz+3.5 GHz Co-Site

UL @1 .8

DL @3

.5

GH

z

GH

z Enlarged Coverage 3.5 GHz UL Coverage 13.7 dB

3.5 GHz DL Coverage 1.8 GHz Coverage

Will comply with 3GPP Release 15.

4.4 Evolution of All Spectrum Towards 5G

C-band and mmWave are critical new spectrum resources for 5G. C-band (as the primary capacity layer), uses large-scale antenna technology to improve network capacity and coverage. mmWave (as the complementary capacity layer), applies to indoor and outdoor hotspots, home broadband access, and self-backhaul for simple site acquisition. Sub-3G spectrum realizes LTE-oriented evolution using solutions such as CloudAIR spectrum sharing, and spectrum refarming and further s 5G-oriented evolution through site modernization. LTE and 5G NR spectrum sharing allows for the smooth introduction of 5G into existing LTE networks. Related technical proposals have been submitted for discussion and are expected to be included in 3GPP Release 15.

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TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

Figure 4-4 Evolution of all spectrum towards 5G

Urban

Suburban

Rural

mmWave

G30

G40

Complementary Capacity Layer · Hotspot capacity boosting · Self-backhaul for easy site acquisition · Fixed wireless access

G70

Primary Capacity Layer · C-band with Massive MIMO for capacity & coverage · UL&DL decoupling for coverage extension

C-Band

Primary Coverage Layer · CloudAIR for rapid development of NR · 4T4R as basic configuration

Sub-3 GHz

4.5 NSA Architecture Anchored on LTE for Initial Stages of 5G The first 3GPP-based 5G release R15 will be completed by June 2018 with a keen focus on Enhanced Mobile Broadband (eMBB). The first-phase NSA 5G NR features are expected to be launched by December 2017, with the second-phase Standalone (SA) 5G NR features completed by June 2018. SA is intended for the target architecture of 5G.

Figure 4-5 NSA architecture

EPC

EPC S1

S1 X5

LTE

Option 3: MCG split

NR

LTE

EPC S1-U

X5-C

Option 3a

NR

S1 LTE

S1-U X5

NR

Option 3X: SCG split

The NSA architecture reuses the 4G core network to implement the functions of access, authentication, and voice services. This helps minimize network reconstruction and rapidly deliver 5G based on a 4G network. This architecture primarily applies to the initial deployment of 5G. The SA architecture introduces the 5G core network. NSA can be upgraded to SA by overlaying the 5G core network. In compliance with 5G standardization specified by 3GPP, Huawei schedules the release of a commercial 5G NSA architecture by Q4 2018, followed by a commercial 5G SA architecture by Q2 2019.

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TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

New Capabilities Enable New Services and Growth Powerful hardware capabilities, a cloud-based architecture, and highly efficient network management allow mobile networks to provide optimal capabilities that enable new services and growth. Application scenarios of mobile services have gradually extended from personal services to households and vertical industries. VR/AR, drones, and many other innovative applications are proposed to promote sustainable growth of the wireless industry. The continued enhancement of traditional and new mobile services based on 4G networks can expand the scope of the industry and achieve business success in the 5G era.

Figure 5-1 5G business prospect

Rich 5G Business Cases based on 4G Smart Transportation

Voice

Data

4G

Business to Vertical NB-IoT, the best practice of 5G IoT

Business to Household WTTx helps rapid success in 4G era and evolve to smart home in 5G era.

LTE

Smart Agriculture Smart Factory

uRLLC

mMTC

5G

Smart Meters

Drones

mMBB

HD Video

WTTx

Smart Energy

Business to Customer Smooth evolution to 5G eMBB

WTTx

AR/VR VoLTE

3D Video

5.1 VoLTE and Video Drive Operators' Revenue Growth

Voice remains a basic service that defines operators' competitiveness. VoLTE will gain increasing importance in the 5G era. The large-scale commercial deployment of VoLTE enables a rapid exit of legacy RATs from the network and increases O&M efficiency, while providing innovative VoLTE-based services such as screen, camera, and freehand sketch sharing during calls. The commercialization process of VoLTE is accelerating, with the deployment of 60 new networks in 2016. An excellent VoLTE experience is dependent upon LTE coverage. It is of critical importance to enhance LTE network coverage, improve VoLTE experience, and enable a smooth evolution of VoLTE services to emerge as a basic service of 5G networks.

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TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

Recent years have witnessed an exponential increase in video services which for over 50% of the total traffic. Video has manifested as a new basic service of mobile networks to increase revenue and data of usage (DOU). Global operators have designed a diverse range of attractive packages to respond to the industry's quickly changing trends. For example, operators worked with Netflix and other OTT providers to offer large-traffic data packages specifically to target heavy video content subscribers. These actions influenced the marketing strategies of several renowned industry players such as China Unicom and Tencent, with the t launch of unlimited packages (based on the Tencent platform). These packages are designed to allow s the benefit of streaming mobile video anytime and anywhere, while stimulating traffic growth.

Figure 5-2 Mobile video as a basic service

2G

3G

4G/5G Social video

Web

Voice + SMS

HD video

Mobile game

360p/480p

Voice + SMS + Data package

Basic package (voice/data) + Top-up (scenario-based tariff)

5.2 WTTx Emerges as Fourth Access Mode Based on 4G networks, WTTx s nTnR, carrier aggregation (CA), Massive MIMO, and other advanced technologies to provide a peak rate of over 1 Gbps and a fiber-like experience. WTTx s a 5G-oriented evolution and can deliver a higher data rate based on 5G NR to help operators expand boundaries, promote the convergence of personal and home services, and fully explore new potential markets. WTTx will be the first use case in the 5G era. WTTx features excellent performance, low cost, quick deployment, easy O&M, and diverse services. With the use of high-gain customer premise equipment (E), WTTx can offer end-to-end assurances for an extensive range of MBB services. This is combined with an enjoyable experience and a further increase in operators' average revenue per (ARPU). SoftBank released Air service based on WTTx using the most advanced technologies (2.6 GHz+3.5 GHz Massive MIMO and E that s CAT11 features). The Air service meets demands for rapid service provisioning (261 Mbps) and s plug-and-play (PnP) deployment. Within one year, this service matured to host 1 million WTTx s and was able to achieve an annual increase of 51.9% in overall broadband revenue.

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TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

Figure 5-3 WTTx experience

Easy Deployment and Gbps Experience of WTTx Speed (Mbps)

+WTTx

1000

Telecom Cable

FTTH

Cable

400 FTTc 250 vDSL 100

Coverage 10%

50%

65%

(population)

Huawei has deployed over 100 commercial WTTx networks that serve 50 million households in five continents. 2017 witnessed an increasing rapid deployment of over 50 new commercial WTTx networks. According to Ovum, WTTx will serve nearly 350 million global households by 2020 to create a vast market space. WTTx will allow mobile operators to reshape their market presence through broadband upgrades and receive a welcome entry into the blue ocean market of wireless home broadband.

5.3 IoT Business Start from NB-IoT, Then Copy to 5G Era Narrowband Internet of Things (NB-IoT) is an optimal choice for the era of Internet of Things (IoT). This technology features wide coverage (20 dB improvement compared with GSM), low power consumption (battery lifespan of over 10 years), and accurate positioning (30–50 m without GPS). NB-IoT has gained a reputation as the best mainstream technology for mobile IoT. Thanks to the maturity of the industry chain, NB-IoT has been deployed in over 20 industries with the development of more than 600 industry partners. Up till now, over 18 commercial NB-IoT networks have been deployed, with the number of active sites exceeding 330,000. By the end of 2017, it is expected that over 30 commercial networks will be available.

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TARGET NETWORKS IN 5G ERA

Embracing Mobile Network 2020s

Figure 5-4 NB-IoT ecosystem

NB-IoT Incubates New Business Models E2E Network Ready

1 Mn+ pcs Module chipset partners shipment per month

Site ready

Ecosystem Ready

20+ verticals and 600+ partners

Business Model Ready

Sell Connection

Sell Service

Sell Data

IoT is set to produce huge global market space in the future. According to Gartner, by 2020, there will be 26 billion IoT connections that create a market space of USD$1.9 trillion. IoT has emerged as a driving force behind new growth of mobile networks. With the advent of the IoT era, there will be an increasing number of connections and diversified services, such as WTTc, smart transportation, autonomous driving, and drones. The demands for connections between things will effectively lift the bandwidth restriction and enable the shift from narrowband to broadband IoT. The commercial deployment of NB-IoT helps accumulate experience, develop habits, and accumulate ecosystem capability, while creating new business models and attracting new industries to use mobile networks. This also enables operators to deploy new services and business models to seize new business opportunities.

5.4 Wireless X Labs Explore New Businesses The commercial deployment of 5G is expected around 2020, but the applicable industries and scenarios as well as the role played by 5G remain unknown and need advanced exploration. In 2016, Huawei founded Wireless X Labs and pursued the construction of a comprehensive platform which is open to the entire industry. t efforts were then instrumental in developing new technologies, applications, and new markets to build a capable ecosystem for the imminent 5G era. X Labs has developed a sound relationship with 186 global partners with the launch of 45 t innovation projects and the publication of 17 white papers. X Labs set four research topics for 2017:

Connected drones (including video backhaul, site preventive maintenance inspection, security protection, logistics) Wireless robotics (including smart factory and service robots) Cloud VR/AR (including the application for entertainment, education, and engineering) Connected cars and remote driving

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TARGET NETWORKS IN 5G ERA Embracing Mobile Network 2020s

Figure 5-5 Wireless X Labs progress

tly Accelerating 5G Business

4

186+

45+

Research Topics for 2017

Industry Partners

t Innovation Projects

Begin to Accumulate Ecosystem Capability

Wireless VR/AR

Connected Drones

Connected Cars

Wireless Robotics

Vision of Target Networks in 5G Era Video

VoLTE

WTTx

Nationwide 4T4R

NB-LoT Indoor Digitalization

“All In One” Antenna

UL/DL Decoupling

Wireless Backhaul (Hop1)

UL Wireless Backhaul (Hop2)

DL @

@

Hi

Lo w

gh

Ba

nd

Hot Spot M-MIMO

Ba

nd

TubeStar PoleStar RuralStar

“All Cloud” Architecture

All Spectrum

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All RATs

All Industries