Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei

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Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
Target Networks in 5G Era
Embracing Mobile Network 2020s
Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
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
    3.1   Large-scale 4T4R Deployment: Foundation for 5G                   05
    3.2   Massive MIMO for Hotspot                                         06
    3.3   Antenna Modernization                                            07
    3.4   Sites Ready for 5G NR                                            08
    3.5   Indoor Digitalization                                            09
    3.6   Site Acquisition                                                 10

4   Mobile Cloud Transformation                                            11
    4.1   Flexible 5G-Oriented CloudRAN Architecture                       11
    4.2   CloudAIR Spectrum Sharing                                        12
    4.3   Uplink and Downlink Decoupling for Enhancing 5G Coverage         13
    4.4   Evolution of All Spectrum Towards 5G                             14
    4.5   NSA Architecture Anchored on LTE for Initial Stages of 5G        15

5   New Capabilities Enable New Services and Growth                        16
    5.1   VoLTE and Video Drive Operators' Revenue Growth                  16
    5.2   WTTx Emerges as Fourth Access Mode                               17
    5.3   Mobile IoT Will Shift from Narrowband to Broadband               18
    5.4   Wireless X Labs Explore New Businesses                           19

6   Vision of Target Networks in 5G Era                                    20
Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
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 signifi-
 cantly 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 tech-
 nologies, 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 - Huawei
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 users 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 admiring 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 users 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.

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Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
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

                                                   Target Network
                         2G/3G:
                                                       2020s                               Sub-3 GHz:
            Shut down, releasing                                                           Continuous LTE evolution
                spectrum for 4G        Fusion                               Evolution      C-band:
                             4G:     of All RATs                         of All Spectrum   5G's first commercial spectrum
            Continuous evolution                                                           mmWave:
            Co-existence with 5G                                                           Hotspot capacity boosting

       Evolution of all spectrum: C-band is a globally harmonized 5G spectrum and is set to be the first band for commer-
       cial 5G deployment. mmWave will serve scenarios such as home broadband as well as indoor or outdoor hotspot
       locations. Sub-3 GHz spectrum will support 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 user 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 facili-
       tate 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 develop-
       ment and will flourish in the new 5G era.

04
Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
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 user experience challenges for various operators. Operators must discover greater spectral efficiency, and multi-
ple-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 users in
particular will be able to enjoy better voice and video services. These improvements in coverage and user 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
      1800 MHz LTE                    4T4R @ 1.8 GHz

                              Legacy 2T2R @ 1.8 GHz                                        +2.5 dB*

               2T2R                          0.81 km

               4T4R                                    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 user experience. As the terminal is upgraded from 2R to 4R, the single-user
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-user downlink and uplink peak rates respectively.

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Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
TARGET NETWORKS IN 5G ERA
 Embracing Mobile Network 2020s

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

                                          Better User 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                               4R 5G NR
                                                              terminal                             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 terms of termi-
     nals, major manufacturers including Huawei, Samsung, and Sony have rolled out a total of over 20 models of 4R termi-
     nals. 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 opera-
     tors 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 users and transmits data through a user-spe-
     cific space isolation system. This helps increase system throughput by dozens of times. Leading operators around the
     globe have already begun deploying commercial Massive MIMO.

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Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
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 user 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 user 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 user experience. The combi-
nation of Massive MIMO and highly competitive data packages was the perfect pairing to attract many new users 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 user 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" passive antenna solution is Huawei's answer to alleviate such concerns. A single antenna can
support 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 support all RATs.

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Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
TARGET NETWORKS IN 5G ERA
 Embracing Mobile Network 2020s

 Figure 3-5 Antenna modernization

                   All-in-One Modern Antenna

                   Two antennas per sector                                   All-in-One Passive Antenna                 5G Antenna
                   Difficult new antenna addition

                      Ant 1          Ant 2                                                  Ant 1                            AAU 1
                      4-port         6-port                                                14-port*
                                                                                                          L-band
                                                                                                          1800
           Now                 900            2600                       Future                   900     4T4R
                                              2100                                                800     2100                    C-band
                               800                                                                        4T4R                    Massive MIMO
                                              1800                                                700
                                                                                                          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 support 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, boast-
     ing high performance and low power consumption. One of the low-frequency band modules supports sub-1 GHz (700 to
     900 MHz) and has 2T4R as its basic configuration. The other supports 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

                          One Plug-in, All 5G                                                5000 Series Radio Units

           4G                                 5G-Ready Site

                                                          Reserved for
                                          All-in-One
                                                          Massive MIMO

                                                                           BBU5900            Blade RRU       EasyMacro          Massive MIMO
                    4T4R
                    Massive MIMO        Blade RRU                          2x capacity
                                                                                                                 Power consumption: 5% to 15%
                                                                           72 4T4R cells
                                                                                                                 Size: 40%
                                                                           2G/3G/4G/5G in one module
                                           BBU5900                                                               PIM: 75%
                                                                           New BBP boards with maximum
                                                                                                                 Installation time: 30%
                                                                           capacity of 64T64R massive
                                                                                                                 Multi-antenna technology
                                                                           MIMO (3x3x100 MHz)

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Target Networks in 5G Era - Embracing Mobile Network 2020s - Huawei
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 upcoming arrival of the 5G era, indoor networks emerge as a competitive focus. Much atten-
tion 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 compari-
son, the LampSite3.0 indoor digital solution improves deployment efficiency and reduces costs. It supports 5G-oriented
evolution in terms 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 supporting a smooth evolution to 5G

 Operator A                                                                            Supporting 5G by Adding 5G NR pRRUs
 BTS/RRU                                                                                     Sub-2.6 GHz 4 bands in one

                 DCU           RHUB                                              RHUB

                                             pRRU                                                 pRRU
                                   CAT5/6                                              CAT5/6

                        CPRI
                                   Sub-2.6 GHz 4 bands in one
                                   Future proof with embedded cables                                              New 5G NR pRRU

 Operator D
  BTS/RRU

Table 3-1 DAS and LampSite technical comparison

                                            DAS                                                    LampSite

                       Feeders are used to transmit analog RF signals          CAT5/6 Ethernet cables are used to transmit digital
     Transmission
                       (signal attenuation increases with signal frequency).   RF signals (signals are not sensitive to frequency).

                       Passive components such as couplers and                 5G can be supported by embedding a CAT5/6
       Evolution
                       antennas do not yet support C-band and can’t            Ethernet cable and adding pRRUs supporting 5G
    capability to 5G
                       support 5G NR                                           NR (all cables are unchanged).

                                                                               Gbps-level user experience can be provided with
                       Multiple feeders and antennas are required for the
                                                                               the support of multiple frequency bands (900 MHz
    User experience    support of MIMO (deployment is difficult and
                                                                               to 2.6 GHz), multiple RATs including 2G, 3G, and 4G,
                       expensive).
                                                                               virtual 4T4R, and 5CC CA.

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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 download 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 construc-
tion. 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 proce-
dures, 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 account 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
user experience to increase both network capacity and user 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 support 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 support
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
                               3*RF Antennas
           Antenna
           Section
             (4m)              MW Antenna(Optional)                                                                            BBU 3910C
                                                                                                  MW             OR                             RRU5909

                                                                                                                              Yagi Antenna
           Extension           3*Massive MIMO(Reserved)                                                        Easy   Book
             Section                                                                                           Macro RRU
          (3.7m/9.7m)                                                                                                            RRN3911
                                                                     Max 15*RRUs
18m/24m                        Combiner Cabin

 Height
                               RRU Cabin
                                                      Max      Max             Transmission                       Blade BBU

          Equipment                                   2*BBUs   5*3000W         (Fiber or MW)
           Section             BBU/Power/TX                                                     Blade Power
           (10.3m)             Cabin                                                           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                   Network Convergence                                    Adaptive Openness

                                               Ultimate experience & reliability
        20ms                                                                          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 verify the flexible
       deployment and gains on network performance. CloudRAN is scheduled to support 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 user 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.

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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 differ-
ence. However, site acquisition is difficult and the cost is high. As a result, Huawei proposes uplink and downlink decou-
pling 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         GH
                                           @3            z
                                              .5
                                                   GH
                                                     z

                                                                                           Enlarged Coverage

                                                                                             3.5 GHz UL Coverage

                                                                                             3.5 GHz DL Coverage
                                                             13.7 dB
                                                                                             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 supports 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                                                       Complementary Capacity Layer
                                                                           · Hotspot capacity boosting
                                                                           · Self-backhaul for easy site acquisition
 G30           G40       G70                                               · Fixed wireless access

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

                                                                           Primary Coverage Layer
                               Sub-3 GHz                                   · CloudAIR for rapid development of NR
                                                                           · 4T4R as basic configuration

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                                             EPC

         S1                                             S1               S1-U                        S1                    S1-U

                 X5                                             X5-C                                             X5
  LTE                          NR                 LTE                       NR                 LTE                              NR

         Option 3: MCG split                                 Option 3a                                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 enhance-
 ment of traditional and new mobile services based on 4G networks can expand the scope of the industry and achieve
 business success in the upcoming 5G era.

 Figure 5-1 5G business prospect

                                                Rich 5G Business Cases based on 4G

                                                                                          Smart          Smart
           Voice                                                                      Transportation     Energy
                                  Business to Vertical
                                  NB-IoT, the best practice of 5G IoT
                    Data                                                     Smart               uRLLC             Smart
                                                                        Agriculture                                Meters

     4G
                                  Business to Household

     LTE
                                  WTTx helps rapid success in 4G era
                                  and evolve to smart home in 5G era.
                                                                          Smart
                                                                         Factory
                                                                                          mMTC   5G                 Drones

                    HD Video                                                                           mMBB
                                  Business to Customer                        WTTx                                AR/VR
                                  Smooth evolution to 5G eMBB
           WTTx
                                                                                            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 cover-
 age, improve VoLTE user experience, and enable a smooth evolution of VoLTE services to emerge as a basic service of 5G
 networks.

16
TARGET NETWORKS IN 5G ERA
                                                                                                 Embracing Mobile Network 2020s

Recent years have witnessed an exponential increase in video services which account 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 joint launch of unlimited packages (based on the Tencent platform).
These packages are designed to allow users the benefit of streaming mobile video anytime and anywhere, while stimu-
lating traffic growth.

Figure 5-2 Mobile video as a basic service

            2G                                     3G                                       4G/5G
                                                                             Social video   HD video       Mobile game

                                             Web    360p/480p

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

5.2 WTTx Emerges as Fourth Access Mode

Based on 4G networks, WTTx supports nTnR, carrier aggregation (CA), Massive MIMO, and other advanced technologies
to provide a peak rate of over 1 Gbps and a fiber-like user experience. WTTx supports 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 (CPE), WTTx can offer end-to-end assurances for an extensive range of MBB
services. This is combined with an enjoyable user experience and a further increase in operators' average revenue per
user (ARPU).

SoftBank released Air service based on WTTx using the most advanced technologies (2.6 GHz+3.5 GHz Massive MIMO
and CPE that supports CAT11 features). The Air service meets user demands for rapid service provisioning (261 Mbps)
and supports plug-and-play (PnP) deployment. Within one year, this service matured to host 1 million WTTx users and
was able to achieve an annual increase of 51.9% in overall broadband revenue.

                                                                                                                              17
TARGET NETWORKS IN 5G ERA
 Embracing Mobile Network 2020s

 Figure 5-3 WTTx user experience

                                   Easy Deployment and Gbps Experience of WTTx

     Speed
     (Mbps)
                                                                                                           +WTTx

      1000
                                                                                                           Telecom
                FTTH                    Cable
                                                                                                           Cable
       400

                                        FTTc

       250

                                                                          vDSL

       100

                                                                                                     Coverage
                                                                                                   (population)
                       10%                                       50%                65%

 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.

18
TARGET NETWORKS IN 5G ERA
                                                                                                Embracing Mobile Network 2020s

Figure 5-4 NB-IoT ecosystem

                                      NB-IoT Incubates New Business Models

      E2E Network Ready                           Ecosystem Ready                         Business Model Ready

1 Mn+ pcs Module      Site ready           20+ verticals and 600+ partners           Sell         Sell           Sell
chipset   partners                                                                Connection     Service         Data
shipment
per month

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 commer-
cial deployment of NB-IoT helps accumulate experience, develop user 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. Joint 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 joint
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

                                                                                                                             19
TARGET NETWORKS IN 5G ERA
 Embracing Mobile Network 2020s

 Figure 5-5 Wireless X Labs progress

                                                 Jointly Accelerating 5G Business

                                                         4                     186+                                     45+
                                              Research Topics for 2017        Industry Partners                    Joint Innovation Projects

     Begin to Accumulate
     Ecosystem Capability

                                                    Wireless VR/AR       Connected Drones                  Connected Cars     Wireless Robotics

     Vision of Target Networks in
     5G Era
             VoLTE                      Video                   WTTx                               NB-LoT

                                                                                                                                        Indoor
                                                     Nationwide 4T4R     “All In One” Antenna                                        Digitalization

                                         Wireless                                      UL/DL Decoupling
                                         Backhaul
                                          (Hop1)
                                                                                  UL
                                                                                       @
                                                                                           Lo
                                                                                                                      Hot Spot
                                                                                             w
                       Wireless
                       Backhaul
                                                                                DL
                                                                                  @
                                                                                                  Ba
                                                                                                      nd
                                                                                                                      M-MIMO
                                                                                      Hi
                        (Hop2)                                                          gh
                                                                                             Ba
                                                                                                 nd

                                                    TubeStar
                                   PoleStar

           RuralStar
                                  “All Cloud”
                                  Architecture

                    All                                               All                                                  All
                 Spectrum                                            RATs                                               Industries

20
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