Location Area Code （ LAC) :  To locate the location of MS, the whole area

covered by each GSM PLMN is divided into different location areas. LAC is used
to identify different location areas.

LAI contains LAC, which is composed of two bytes. LAC adopts hexadecimal
coding. The available range is from 0001H to FFFEH. The code 0000H and FFFFH
cannot be used . One location area can contain one or more cells.

When MS is powered on or LAC of current cell is found to be different from its

originally stored contents, MS will inform network of the current location area via
location update, and the network uses the LAI for paging. Generally the allocation
and coding of LAC is set at the early stage of network construction, and seldom
modified during the operation.

The size of location area (LA) is one of key factors in the system. If the LA
coverage is too small, the chances for MS to update location increase, and this
will increase the signaling load in the system. If the LA coverage is too large,
when network conducts paging to the MS, the same paging information will be
transmitted in a large number of cells, and this will lead to the heavy load on
CCCH.

The adjustment of LA size has no unified standard. Operating departments can

decide whether to adjust the size according to the currently running network. If
the CCCH signaling load is heavy because of too big LA coverage, then reduce
the size of LA, and vice versa.

It is generally recommended to set the LA as large as possible. The calculation of

LA is related with the paging strategies of different manufacturers. In the early
stage of network construction, the traffic is not heavy, so the TRX number in one
LA can be larger than this value. It is necessary to monitor the PCH load and the
increase of traffic in a long term. If necessary, PCH capacity can be increased by
adding one extended BCCH channel.

While making LA planning, try to make use of the geographical distribution and
behaviors of mobile subscribers to allocate the LA, so as to achieve the objective
of reducing the times of location update at the boundary between location areas.
Please note that LAC in cell parameters must be in consistent with that in MSC.
Otherwise, call setup failure will occur.

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