The Telecommunications Market

“The telecom sector continues to be at the epicentre for growth,

innovation, and disruption for virtually any industry. Mobile devices
and related broadband connectivity continue to be more and more
embedded in the fabric of society today and they are key in driving
the momentum around some key trends such as video streaming,
Internet of Things (IoT), and mobile payments.”
–  Deloitte

Source: https://www2.deloitte.com/us/en/pages/technology-media-and-telecommunications/articles/2016-telecommunications-industry-outlook.html
The Telecommunications Market (Cont.)

“Think of telecommunications as the world's biggest machine. Strung

together by complex networks, telephones, mobile phones and
internet-linked PCs, the global system touches nearly all of us. It
allows us to speak, share thoughts and do business with nearly
anyone, regardless of where in the world they might be. Telecom
operating companies make all this happen.”
– Investopedia

Source: https://www.investopedia.com/features/industryhandbook/telecom.asp
Wireless Telecommunications

 Fixed has grown over the last 100 years or more

 Wireless has exploded over last 3 decades
Mobile Communications: From 1G to 4G

1G 2G
Year: early 80s Year: 2001
Standards: AMPS, TACS Standards: UMTS / HSPA
Technology: Analog Technology: Digital
Bandwidth: - Bandwidth: Broad Band
Data rates: - Data rates: up to 2 Mbit/s
SMS/MMS, Internet access, Video calls,
Mobile TV

Year: 1991
Standards: GSM, GPRS, EDGE
Technology: Digital
Bandwidth: Narrow Band
Data rates: <80-100 Kbit/s
SMS/MMS
3G 4G Year: 2010
Standards: LTE, LTE Advanced
Technology: Digital
Bandwidth: Mobile Broad Band
Data rates: xDSL-like experience
1 hr HD movie in 6 minutes, SMS/MMS,
Internet access, Video calls, Mobile TV,
Gaming services, Cloud computing

Source: http://www.sicomtesting.com/blog/en/dal-1g-al-5g-il-passato-e-il-futuro-degli-standard-gsm-umts-hspa-ed-lte/
Telco Architecture 5G Core Scope
4G Core Scope
Wireless Microwave
IMS
Access
Mobile P
Backhaul

GiLAN
Wireless Core

WiFi Optical Transit

Hybrid Approaches
Common

Enterprise
DSLAM
CDN
Metro
Ethernet Mesh
P

BRAS PE

OLT
The 5G Core will distribute beyond 4G
core locations to enable low latency, high
CCAP bandwidth and IoT use cases.
Mobile Forecast (Ericsson)

Early 5G adoption in 2018, Mainstream migration starts in 2020 – 500M subscribers by 2022. IoT not shown - 16B devices
by 2022
Source: https://www.ericsson.com/en/mobility-report/reports/november-2017/mobile-subscriptions-worldwide-by-region
Demand for 5G
Ultra-reliable Communications: Extreme Real-time Communications
E-Health Services Robotic control for manufacturing
Remote Medical Treatment

Controller

Broadband Access Everywhere Massive Internet of Things (IoT)

Over 50 Mbps even near cell edge Smart wearables and sensor networks

Controller
Long Term Evolution (LTE) i.e. 4G

E-UTRAN Evolved Packet Core (EPC)

Simplified architecture Simplified architecture
Evolved NodeB IP-based services

Internet
UE eNB
EPC
E-UTRAN
eNB MME/S-GW P-GW
EPC Architecture

2G/3G
UTRAN MME HSS
PCRF
SGSN

Operator
EPC Services

E-UTRAN

EPC Functions
• Network access control
S-GW P-GW • Locating users
• QoS and policy enforcement
• Charging
• Lawful intercept
EPC Architecture
• Idle-mode mobility management
• Bearer establishment
• S-GW and P-GW selection
2G/3G
UTRAN MME HSS
PCRF
SGSN

Operator
EPC Services

E-UTRAN

S-GW P-GW
EPC Architecture
• Master database
• Subscription data
• Security information
2G/3G
UTRAN MME HSS
PCRF
SGSN

Operator
EPC Services

E-UTRAN

S-GW P-GW
EPC Architecture

2G/3G
UTRAN MME HSS
PCRF
SGSN

Operator
EPC Services

E-UTRAN

• Packet data routing

• Mobility anchor S-GW P-GW
• Idle-mode packet buffering
• Lawful intercept
EPC Architecture • Sets QoS Rules
• Bridge between IMS and LTE

2G/3G
UTRAN MME HSS
PCRF
SGSN

Operator
EPC Services

E-UTRAN

S-GW P-GW
Virtualization Drivers
Economics to
accommodate mobile
device and traffic growth Rapid Service
Standard
Innovation
“virtualization” MME HSS
Benefits
PCRF

Gx Services
EPC (IMS,
etc.)
E-UTRAN SGi

S-GW P-GW
Network Function Virtualization in EPC

VNF VNF VNF

Deployment of Support of service function

virtualized functions chaining to provide services
in EPC

Standard Compute
Resources

Standard Storage Standard Network

Resources Resources
Summary

 4G Networks are now ubiquitous, and technology is mature.

 Virtualized EPC has been gaining traction for several years and vEPCs are
now offered by all vendors.
– All deployments to date have been on Intel® Architecture
 Most markets are in late deployment phases, adding incrementally where
needed.
 Major vendors continue to be Huawei, Ericsson, and Nokia.
– Expected to continue for 5G
 Next spending curve expecting 2020+ for 5G rollouts.
– Geo dependant