Charting the Course

for Mobile Broadband

Heading Towards High-Performance
All-IP with LTE/SAE

Executive Summary
Contents
02
03
04
05
06
08
09


10


14
15
15

Executive Summary
Background
Market drivers and expectations
User benefits
Operator expectations
System approach
Standardization of the LTE air
interface and enhanced packet
system
Optimizing total value of
ownership with Nokia Siemens
Networks LTE/SAE
Conclusions
Abbreviations
References

Nokia Siemens Networks expects five

billion people to be connected to the
web and a 100-fold traffic increase in
the networks by 2015. Wireless access
to the Internet will be in step with
wireline access. Access via mobile
phone supporting enhanced data
applications will complement notebook
based usage. Wireless networks will be
used to extend broadband penetration
beyond the reach of wireline networks.
More and more user communities will
enjoy multimedia services, driving total
bandwidth demand. This affords
mobile network operators a business
opportunity they can capitalize on by
improving their networks performance
and efficiency.

With a view to taking the next step up

the evolutionary ladder beyond HSPA,
3GPP Rel8 has standardized a
technology called Long Term Evolution/
System Architecture Evolution (LTE/
SAE). It is designed to
Make the most of scarce spectrum
resources: Deployable in paired and
unpaired spectrum allocations with
bandwidths ranging from 1.4 MHz
to 20 MHz, LTE/SAE offers up to
four times the spectral efficiency
of HSDPA Release 6
Afford users an experience on
par with todays best residential
broadband access: LTE/SAE
delivers peak user data rates
ranging up to 173 Mbps and
reduces latency to as low as 10 ms
Leverage flat all-IP network
architecture and a new air interface
to significantly cut per-Mbyte costs,
with later product innovations
improving performance even further:
For instance a 4x4 Multiple Input/
Multiple Output (MIMO) scheme
will boost downlink data rates up
to 326 Mbps
Nokia Siemens Networks takes a costeffective approach to introducing LTE/
SAE, enabling GSM-/WCDMA-, CDMA-,
and greenfield network operators to
grow their business and margins in
the fast-approaching era of ubiquitous
mobile broadband.

Network Evolution LTE/SAE

Background
The Internet has changed many
peoples lives in the last decade.
Services delivered across the web
now supplant many offline processes.
The Internet has become a major
delivery platform for text, music, video,
and other multimedia content. All this
has spurred broadbands growth. With
broadband adoption outpacing cellular
voice, Nokia Siemens Networks predicts
that five billion people will enjoy Internet
access by 2015 and traffic in the
networks will increase 100-fold.
Whats more, mobile broadband is
tracing mobile telephonys trajectory,
becoming a widespread service to be
enjoyed by the user anywhere, anytime.
More and more people are embracing
mobile broadband and enjoying dataheavy video and other multimedia
content. This coincidental development
presents a promising business
opportunity for network operators,
who responded by launching HSDPA
and flat rates in 2006, attracting many
business users. And while this user
segment may be small compared to
the huge consumer market, overall
mobile data traffic grew up to 400%
within 6 months after service
introduction in many networks.

Mobile broadband users will expect

services, data rates, VoIP and multimedia
capabilities similar to those enjoyed
by fixed broadband users today, at
affordable prices. This is why NGMN
Ltd., a group of globally active mobile
operators determined to match DSL
offerings performance and cost, has
raised the bar for the next generation
of mobile networks (NGMN) and
described their requirements in a
white paper [1]. Seeking to satisfy
these demands, Nokia Siemens
Networks and its parent companies
participated in the Long Term Evolution
(LTE) and System Architecture Evolution
(SAE) studies conducted by the Third
Generation Partnership Project (3GPP).
LTE/SAE aims to improve performance
and cost-efficiency with a more efficient
air interface, more flexible use of radio
spectrum, and flat, packet based
network architecture. The ultimate
goal is to enable wireless broadband
communication commensurate with
DSL in fixed networks.
The study phase of 3GPP work on
LTE and SAE ended in mid-2006,
transitioning to the specification phase
for the new radio access system (LTE)
and the enhanced packet-based core
network (SAE).
3GPP plans to complete the first set
of specifications by the end of 2008,
enabling friendly user trials in 2009
and the first commercial network
rollouts at the beginning of 2010.

Network Evolution LTE/SAE

Market drivers and expectations

Evolving user services
Video streaming

Common, access-independent
Internet applications will replace
silos for mobile and residential
applications
Web2.0 applications empower users
to participate in communities, and
will generate content and interact in
virtual worlds
Streaming services that deliver
individual video content on demand
and mobile TV on demand are
emerging as a favored application
Mobile, interactive remote
gaming and real-time gaming
will undoubtedly become a major
industry in its own right
Mobile office comprising smart
phones, notebooks, ubiquitous
broadband access and advanced
security solutions will free business
users from their office desk.

Traffic volume

Network cost
(existing technologies)

Revenue
Profitability
Network cost
(LTE)
Time
Voice
dominated

Data
dominated

Price per MByte has to be reduced to remain profitable

Figure 2: Traffic increase requires low cost/bit technologies

Network Evolution LTE/SAE

1 Mb/s

Bandwidth

Video conferencing Realtime

gaming
m2m:
robot security;
video broadcast

Audio/video
download

FTP

Mobile
office/e-mail

MMS,
web-browsing
< 64kb/s

Figure 1 shows some of these services

and their typical bandwidth and network
latency requirements. Services expected
to become major growth drivers are
highlighted. While voice remains the
most popular application for large user
segments, several distinct trends will
influence mobile communications in the
years ahead:

> 5 Mb/s

New services will center on data and

multimedia communication alongside
or within the context of voice.

Multiplayer
games

Interactive
remote
games

Video telephony
Audio streaming

SMS

Growth drivers

Voice telephony
m2m: remote control

Voice mail

Network
Latency
Source: IST-2003-507581 WINNER, D1.3 version 1.0, Final usage scenarios. 30/06/2005;
Parameters for Tele-traffic Characterization in enhanced UMTS2, University of Beira,
Portugal, 2003
> 1 sec

200 ms

100 ms

20 ms

Figure 1: Latency and bandwith requirements for various services

The key enabler for these trends to

materialize in mobile communications is
user gratification, which will depend on:
The networks capacity to support
high peak user data rates and high
average data throughput rates
Low user data planes and signalling
channels response time, or latency
Guaranteed radio coverage
ensuring full use of services with
acceptable throughput up to the
cells edge
Service continuity between
access networks
Competitive prices, with many users
favoring flat-rate fees for reasons of
transparency and cost control
As users discover personal mobile
services on par with household-centric
services, they are sure to take advantage
of mobile operators great strength
mobility. The key is to satisfy users
expectations of access whenever
and wherever they want it.

Rising traffic, falling tariffs

Overall traffic (voice and data) in mobile
networks is expected to grow fast.
Data traffic in some European HSPA
networks is edging towards exponential
growth. Analysts predict average price
per MB will decline as voice and
non-voice services drive traffic growth.
A strong trend towards flat-rate pricing
is already sweeping the market. Data
and multimedia service offerings with
attractive service packages and flat
rates are key business differentiators.
Voice services, in turn, are fast becoming
a commodity, and price pressure is
bound to rise. This compels operators
to respond by offering voice service by
migrating it to packet based VoIP. And
as flat rates become more popular,
operators will have to cut the per MB
cost of sending data across the network.
Fair usage policies need to be applied
in order to prevent bandwidth-greedy
applications, especially peer-to-peer
file sharing, from overloading the
network.

Figure 2 shows that in Voice dominated networks the revenue was about
proportional with the traffic volume increase. In Data dominated networks
offering flat rate or fair usage flat rate tariffs the traffic volume is expected to
rise exponentially; but the revenues will only slightly increase, stay constant,
or in some markets even decline. In order to stay profitable in the long term
operators are forced to introduce new network technologies offering much lower
costs, which are decoupled from the traffic volume to the greatest possible extent.

User benefits

Advances in technology
Optimizing digital signal processing
algorithms and advances in antenna
technologies will push the air interfaces
spectral efficiency ever closer to its
theoretical limits.

While many consumers have no

particular interest in technology, they
do expect unimpeded access to the
Internet and personalized services,
at anytime and in any place.

Improved IP transport (pervasive

Gbit Ethernet) and QoS assurance
technologies boost packet-centric
networks data and voice performance,
efficiency and carrier-grade reliability.
Together with advances in IP
integration in network equipment and
implementation of spectrally efficient
VoIP techniques, this all will soon make
the all-IP vision a reality. LTE/SAE
enables operators to implement all
services on a single IP-centric, purely
packet based network. This will make
IP applications as genuinely mobile
as voice is in todays mobile networks.
These advances, alongside a simplified
architecture, will also reduce
operational expenditures and,
consequently the networks lifecycle
costs.

Todays residential broadband access

shapes consumers expectations of
Internet access and their perceptions
of network performance.
This perceived network performance,
in turn, is formed by a blend of the
peak user data rate, average user
throughput, cell throughput, signaling
delays, and user data latency. One
of the keys to differentiating mobile
products is boosting perceived mobile
broadband performance.

300

2x20MHz

70

Downlink
Uplink
U

50
2x20MHz

200

Mbps/cell

Mbps

1 carrier,
2x20MHz

Downlink
Uplink

60

250

150
100
50

Coexistence, interoperability, roaming,

and handover between LTE/SAE and
existing 2G/3G networks and services
are inherent design goals, so full mobility
support is given from day one.

Average cell throughput

(marco cell, 2x20MHz or equivalent) *

Maximum peak data rate *

350

Figure 3 compares LTE/SAEs peak

data rates, average cell throughput,
VoIP capacity and latency with earlier
WCDMA/HSPA releases. On the
physical layer, LTE/SAE with 2x2
MIMO delivers peak downlink data
rates ranging up to about 173 Mbps,
and even 326 Mpbs with 4x4 MIMO.

2x5MHz

40

4 carriers,
each 2x5MHz

30
20

1 carrier,
2x20MHz

4 carriers,
each 2x5MHz

10

2x5MHz

0
HSPA R6

HSPAevo
(2x2 MIMO
+ 64QAM)

LTE
(2x2 MIMO/
16 QAM)

LTE
(4x4 MIMO/
64 QAM)

HSPA R6

Latency (Roundtrip delay) **

HSPAevo
Rel8

LTE
(2x2/1x2
(MIMO)

LTE
(4x4/1x4
MIMO)

VoIP capacity *
80
70

GSM/EDGE

Downlink
Uplink

HSPAevo
(Rel 8)
min.

LTE
0

20

40

60

80 100

max.

120 140 160 180 200 ms

Calls/MHz/Cell

60
HSPA Rel6

50
40
30
20
10
0

DSL (~ 20 - 50 ms, depending on operator)

* LTE values according to Nokia and Nokia Siemens Networks
simulations for NGMN performance evaluation report V1.3
(marco cell, full buffer, 500m ISD, pedestrian speed)

HSPA R6

LTE FDD

** Server near RAN

Figure 3: Comparison of throughput (maximum, typical) and latency: LTE shows excellent performance

Network Evolution LTE/SAE

Operator expectations
1

Superior User Experience

Peak throughput

Competitive Network Cost

Latency

Cost per MByte

~ 50%

Factor 10

Factor 2-3
> 70%

HSPA

LTE

HSPA

LTE

UMTS

HSPA

I-HSPA

LTE

Figure 4: Key building blocks of operator success

The user benefits outlined above

translate into revenue potential for the
operator. To tap this potential and turn
into profits, operators must optimize
both revenues and costs. And the need
to improve cost efficiency increases as
data traffic rises and per-MB prices drop.

Air interface performance

and flexibility
Driving down cost per MB entails
improving the air interfaces efficiency
and applicability by:
Increasing spectrum efficiency
and cell edge bit rates, and flexibly
allocating bandwidth by making the
most of available spectrum
Operating in the 3G spectrum if
necessary, alongside a 3G system
and in soon-to-be assigned new
spectrum

Network Evolution LTE/SAE

Gearing up to re-farm frequency

bands such as GSM and possibly
operating in lower frequency bands
to exploit spectrum options and
to maximize coverage at lower
investment, especially in rural
areas with lower traffic density.
Re-farming GSM and CDMA
requires a solution suitable for small
bandwidth allocations, as operators
probably can not release much
spectrum from the beginning due to
legacy GSM or CDMA traffic.
Reducing the latency of user data
transmitted over the air interface in
order to reduce the overall download
times of Web pages and thus
improve the overall throughput on
the application level
Supporting fast service access to
minimize system load and maximize
the number of simultaneously
served users

Major operators formulated their

expectations for the LTE air interface
performance in a whitepaper [1]:
High spectral efficiency (3-4 times
that of HSPA Rel 6 in DL and 2-3
times that of HSPA Rel 6 in UL) and
cell edge performance
High peak data rate >100 Mbps in
DL and >50 Mbps in UL for 20 MHz
bandwidth
Low latency
(round trip delays below 20 ms)
Flexible and scalable bandwidth
deployable in all IMT2000 spectrum
(450 MHz up to 2.6 GHz) both for
paired (FDD) and unpaired (TDD)
frequency bands

Network complexity
The consensus is that the complexity
of system architectures and diversity
of protocols are major cost drivers for
networks and terminals. This complexity
and diversity can be mastered by:
Simplifying the network architecture
with a flat hierarchy and much fewer
protocol conversions (or content
mappings)
Introducing open, streamlined
interfaces and reducing protocol
options
Employing IP-centric communication,
equipment and VoIP throughout the
core and radio networks
Extensively employing low-cost
backhauling such as carrier-grade
Ethernet rather than E1/T1 based
leased lines
Supporting self-configuring and selfoptimizing network technologies to
reduce installation and management
costs

Service provisioning
Recent surveys indicate that user
expectations are difficult to predict
over the long-term. In reality, analysts
expect services to become a short-term
business offering. This means operators
need to consider:
The means to create highly
personalized services, and deliver
every type of service, including
end-user self-provisioning
Individual support for every type of
access based on a common service
control and provisioning platform
An improved user experience
for every service offering and
diversified offerings, including
flexible service bundling across
all breeds of access
Simple and transparent billing
procedures which foster
subscriber loyalty

Asset reuse
When introducing new network
technologies, operators expect that their
existing investment will be protected
and that deployed infrastructure can be
re-used to the greatest possible extend.
The main focus is thereby directed to
topics representing a major part of
operators total cost of ownership,
such as:

Deployment of LTE on existing

sites and sharing of common
infrastructure (e.g. antenna masts;
site infrastructure like power supply,
air conditioning, and security
equipment; feeder cables and even
antennas)
Sharing of backhauling equipment
between LTE/SAE and existing
network technologies provided
at the same site
Common network management
platforms
Depending on the implementation
of existing network elements, the
upgradability of their HW platforms to
LTE/SAE or even a sharing of parts
of the network element HW platform
with existing 2G/3G technologies
offers opportunities for CAPEX and
OPEX savings.

Size of the ecosystem

Mobile systems based on 3GPP
standards represent with a market
share of more than 85% by far the
greatest ecosystem in the mobile
industry, which provides enormous
cost advantages to operators and
end users:
A huge variety of different terminals,
starting from simple and cheap
voice only terminals up to real
multimedia terminals
Cost benefits for terminals and
network infrastructure products due
to the huge quantity of produced
products and the amount of different
vendors offering such products.

Operators expect that this huge

ecosystem can be leveraged for
LTE/SAE as most terminals will
be UMTS/LTE or GSM/UMTS/LTE
multimode terminals offering cost
advantages from the common terminal
platform and production quantities.

Interworking with and

migration from non-3GPP
radio access systems
Optimal interworking with existing
GSM/WCDMA networks, including
service continuity when roaming
between LTE/SAE and such networks,
is a natural expectation of operators
and inherent design goal for the LTE/
SAE standard. However, operators of
non-3GPP radio access systems, like
CDMA, also expect an easy evolution
of their networks to LTE/SAE, in order
to benefit from the scale of the 3GPP
ecosystem representing more than
85% market share in the mobile industry.
3GPP acknowledged this need by
specifying an improved interworking
between LTE/SAE and non-3GPP radio
access systems. In particular the
standard supports seamless mobility
and handover between LTE and
CDMA2000.

Network Evolution LTE/SAE

System approach
In light of the efforts to standardize LTE/
SAE underway, 3GPP defined the air
interface, network architecture, and
system interfaces. Figure 5 shows
an LTE/SAE networks high-level
architecture. 3GPP standardized a
packet-based network architecture with
fully IP-based transmission. LTE/SAE
will not entail a circuit-switched domain
anymore; that is, VoIP will serve to
implement voice. The IP backbone
network will support guaranteed QoS
on demand with a very simplified, but
backward compatible QoS concept.
The goal is to use carrier-grade Ethernet
where possible; in particular to connect
the eNode B, the LTEs base station.

Service Control and Data Bases

IMS

Access

PCRF

HSS/AAA

Core Switching & Transport

MME
SAE
GW
Internet
eNode B

Serving GW PDN (HA)

Figure 5: LTE/SAE target architecture

Simplified network
architecture

High-performance
air interface

Todays WCDMA core network

architecture for the PS domain
comprises SGSN and GGSN.
The radio network architecture
comprises NodeB and RNC.

The LTE air interface will differ markedly

from legacy technology. Figure 6
summarizes the technologies applied
at the LTE air interface.

LTE/SAE architecture is streamlined to

optimize network performance, maximize
data throughput, and minimize latency.
Rather than four nodes in the user data
plane (Node B, RNC, SGSN, GGSN),
the LTE architecture will comprise a far
simpler configuration of just eNode B
and the SAE Gateway (SAE GW). The
SAE GW consists of two logical user
plane entities, the Serving Gateway
and PDN Gateway. The Serving Gateway
provides the user plane anchor that
manages mobility between GSM and
WCDMA/HSPA access systems
standardized according to LTE and
3GPP. The PDN Gateway interworks
with the Internet or intranets and the
user plane anchor to enable mobility
between LTE and non-3GPP based
access systems such as CDMA
networks. It also provides policy control
and charging functions. For roaming
purposes, the Serving Gateway resides
in the visited network, and the PDN
Gateway in the home network.
The interface between Serving GW
and PDN Gateway is standardized
to support roaming scenarios; but both
functionalities can be implemented on
the same physical platform.
The signaling protocols of the control
plane will be handled by the Mobility
Management Entity (MME).
Because the access network operates
without a central controller (BSC, RNC),
base stations (eNode B) interconnect
via standardized interfaces to exchange
control and user information. They also
connect directly to the core network.
This approach entails fewer interfaces
and minimal complexity caused by
protocol conversion and content
mapping.

Network Evolution LTE/SAE

Advanced applied Orthogonal

Frequency Division Multiplexing
(OFDM) technologies achieve
performance and savings goals
based on low total cost of ownership.
Many sub-carriers may be allocated
according to carrier bandwidth available
in the downlink. The uplink employs
a single carrier FDMA technology
(SC-FDMA) to preclude high peakto-average power ratios, thereby
streamlining the RF design and
extending the battery life of the
terminals.
Advanced scheduling in the time and
frequency domain, MIMO antenna
technology, Hybrid Automatic Repeat
Request (HARQ) and higher order
modulation (up to 64 QAM), combined
with fast link adaptation methods and
a short Transmit Time Interval (TTI)
of 1 ms, maximize spectral efficiency.
In principle, operators need not acquire
new spectrum. The LTE air interface is
designed to operate in the same spectrum
as and in parallel with the legacy
WCDMA/HSPA air interface, for example
on a separate carrier. The systems
flexible spectrum allocation (including
scalable bandwidth) allows carriers to
be spread across any suitable spectrum
licensed for 2G or 3G operation.
Deployable in spectrum bands with
bandwidths of 1.4, 3, 5, 10, 15, and
20 MHz, LTE offers unique spectrum
flexibility. The small 1.4 and 3.0 MHz
bandwidths are optimized for GSM and
CDMA re-farming, where operators
might not initially be able to free up
more bandwidth.
LTE air interface is designed for
deployment in paired (FDD Mode) and
unpaired (TDD mode) spectrum bands.
The initial deployments outside China
are expected to be for FDD mode in
paired spectrum.

scalable

DL: OFDMA

64 QAM
Modulation

Hybrid ARQ
2
NACK

UL: SC-FDMA

ACK

1
Combined
decoding

TX

Sub-carriers
...
OFDM
symbols
Guard
intervals

RX

MIMO
Channel RX

Available bandwidth

2
Rx Buffer

Short TTI =1 ms
Transmission time interval

TX

Fast Link Adaptation

Advanced Scheduling
Time & Frequency
(Frequency Selective Scheduling)

Frequency
...

Time

Figure 6: The beauties of LTE

Channel only changes amplitude and phase of sub-carriers

Standardization of the
LTE air interface and
enhanced packet system
3GPP (3rd Generation Partnership
program) is standardizing the LTE/SAE
system for their Release 8.

Now 3GPP working groups are working

hard on finishing all protocol (stage 3)
and performance specifications.

Their RAN working groups started LTE/

SAE standardization in December 2004
with a feasibility study for an evolved
UTRAN and the System Architecture
Evolution (SAE) for the all IP based,
flat core network architecture. This
was transformed into the Work Item
phase in June 2006. In December
2007 all LTE functional specifications
(stage 2) were finished. SAE functional
specifications reached major milestones,
both for interworking to 3GPP and
CDMA networks.

It is expected that all LTE/SAE

specifications will be finished by
end of 2008, the specification of the
physical layer of the air interface
(forming the basis of the chip design)
for the FDD mode of operation by
mid-2008 already.

Network Evolution LTE/SAE

Optimizing total value of

ownership with Nokia
Siemens Networks LTE/SAE
LTE/SAE will provide a mobile multimedia
network that delivers broadband wireless
services with fixed-line quality and the
cost efficiency of IP technologies. Nokia
Siemens Networks leverages leading
architectural and systems expertise to
allow operators to seamlessly evolve
their networks to LTE/SAE.
Nokia Siemens Networks has ample
experience in implementing and
upgrading complex system architectures.
The company is committed to enabling
smooth migration, and is preparing its
products to accommodate LTE/SAE
technology. The track record of Nokia
Siemens Networks in efficient system
migration includes:
Easy introduction of EDGE
without system downtime
HSPA (HSDPA and HSUPA), where
a software download upgrades the
entire installed base
Combined 2G/3G networks enabling
smooth migration from 2G to 3G and
ensuring cost-efficient operations
The SGSN and GGSN for the packet
core, which today can handle both
2G and 3G traffic

Multimode UE

For many years, Nokia Siemens

Networks and its parent companies
have driven radio access and network
technology innovation by:
Participating in international
research programs
Pursuing many joint research
activities in these areas with diverse
industry and academic partners
Driving 3GPPs efforts to
standardize LTE/SAE
The worlds first live demonstrations of
the LTE air interfaces capabilities at
the 3G World Congress in Hong Kong
in December 2006 and 3GSM World
Congress in Barcelona in February
2007 underscore Nokia Siemens
Networks leadership in LTE/SAE.
In this demonstration (refer to figure 7)
a High Definition Television (HDTV)
video was sent with a peak data rate of
160 Mbps over an air interface based on
the preliminary LTE specifications and
handed over in real time to an HSPDA
air interface.

Access

Core

Services

MIMO

eNode B

IPv6

IMS
(control node and AS)

Video application
(IMS-controlled
video supervision)

Access Gateway
(packet core)

Video application
IMS client

HSPA
Node B

luB
IPv6

Figure 7: Nokia Siemens Networks` LTE demonstrator: First live NGMN air interface
with applications and interworking with legacy 3G system service continuity in one equipment

10

Network Evolution LTE/SAE

Video application
(Real-time video
streaming HDTV)

Further Nokia Siemens Networks initiated

together with Nokia and six other vendors
and operators the so-called LTE-SAE
Trial Initiative (LSTI). The goal is to early
demonstrate the capabilities of LTE/
SAEthrough performing a series of
joint tests including radio transmission
performance tests, early interoperability
tests, field tests and full customer trials
(refer to figure 8). By giving early feedback about the LTE-SAE
performance and interoperability to
standardization and industry, the time
for commercial product availability is
expected to be significantly reduced.
In the meantime further operators,
terminal- and chipset vendors joined
the group, which is open to any
organisation that is committed to
actively contribute to above goals.

eNB Site: HHI Building

300 m

MIMO/SIMO
120 Mbps
100 Mbps

600 m

80 Mbps
60 Mbps
40 Mbps
20 Mbps
DLink

900 m

Figure 9: Nokia Siemens Networks multi-user LTE field trial in the

centre of Berlin

Nokia Siemens Networks drives LSTI.

Schedule & Program Office Activities:
2007

2008

Test of OFDM Air Interface

2010

2009

Proof of Concept
Test of basic functions
Interoperability

IODT
IOT
Friendly customer trials

Public Relation work

Trials

PR

Figure 8: LSTI program and schedule

The first proof of concept tests on

physical layer performance of the LTE
air interface (performed independently
by several companies) where already
finished by the end of 2007 and
successfully demonstrated that the
physical layer of the LTE air interface
specifications can be implemented and
fulfils the performance expectations.
In December 2007 Nokia Siemens
Networks demonstrated LTE in a multiuser field trial under realistic urban
deployment scenarios in the center of
Germanys capital Berlin, reaching with
a 2x2 MIMO antenna system peak
data rates of up to 173 Mbps and still
more than 100 Megabits per second
over distances of several hundred
meters (refer to figure 9). This trial
also successfully demonstrated that
future LTE networks can run on
existing base station sites.

An operators strategy for gaining the

competitive edge in mobile broadband
builds on three fundamental insights:
The key to sustaining fast subscriber
growth is being part of a large
ecosystem that accommodates
many different as well as the
latest user devices, as is evident
from the recent churn from
CDMA to GSM networks. GSM/
WCDMA is by far the largest
mobile communications ecosystem
worldwide.
Once traffic attains critical volume,
there is only one way to achieve
cost-efficient scale network capacity
via flat network architecture and
Ethernet based transport network.
Until now, fixed broadband networks
provided the blueprint; now I-HSPA
(Internet-HSPA) introduces flat
architecture to cellular networks.
Ubiquitous mobile broadband
demands optimum use of scarce
spectrum resources, cost-efficient
networks, and high network
performance as perceived by users.

Network Evolution LTE/SAE

11

Nokia Siemens Networks is committed

to providing a smooth evolutionary
path for every operator, following a
roadmap that factors each operators
installed base and strategy into the
equation (see figure 10).
3G operators who have deployed
I-HSPA have flat network
architecture similar to LTE/SAE in
place, and can thus cost-efficiently
introduce LTE/SAE.
3G operators with a deployed
WCDMA/HSPA network can
migrate directly to LTE/SAE.
Migrating to the flat network
architecture of Internet High
Speed Packet Access (I-HSPA)
may also be beneficial because
it accommodates LTE/SAEs flat
IP-based network architecture while
supporting legacy WCDMA/HSPA
handsets. The operator can thus
enjoy the transport and network
scaling benefits immediately and
easily upgrade the network to LTE/
SAE later.

Operators running 2G networks

(GSM/GPRS) can introduce LTE/
SAE directly or via one of the above
WCDMA/HSPA paths, depending
on their timetables for introducing
mobile broadband services and
the spectrum they have available.
Because LTE supports bands as
small as 1.4 MHz, spectrum may be
re-farmed smoothly and gradually
from GSM to LTE.
CDMA operators can introduce LTE/
SAE networks directly or follow one
of the above paths. GSM/EDGE
may be a good choice for strategies
more immediately focused on voice
centric business. The same applies
to Greenfield operators. Operators
opting to take the I-HSPA path
can capitalize on the ecosystem
of HSPA terminals, benefit from
the flat architecture today, and
quickly optimize mobile broadband
performance.
Operators with TD-SCDMA
networks, which are currently
deployed in China only, will probably
migrate directly to LTE, preferably
using the TDD mode of LTE.

GSM/WCDMA
handset base

Nokia Siemens Networks provides all

products of a mobile network end-to-end
solution using innovative technologies
and future-proof platforms:
Nokia Siemens Networks designs
innovative base stations enabling
operators to flexibly upgrade to future
radio standards while reusing legacy
modules and without adding to the
footprint. This affords operators total
investment protection. One example
is the innovative Flexi-Multimode
BTS platform, designed to support
different radio standards and being
SW upgradable to LTE. It is modular,
with the flexibility required to upgrade a
2G/3G site to support LTE. To this end,
it shares LTE-ready equipment in the
RF chain the antenna, the feeder, as
well as given deployment in the same
spectrum RF modules. Different radio
standards supported at the same site
can also share the backhaul system.
Dedicated but identical hardware
baseband and control modules serve
to run the different radio standards
smoothly and independently. All this
minimizes the operators spare parts
inventory, logistics costs and
installation efforts.

Enabling flat broadband architecture

LTE
I-HSPA
WCDMA/
HSPA

GSM/
(E)GPRS

TD-SCDMA

CDMA

Figure 10: The architectural evolution of existing 2G/3G networks to LTE

12

Network Evolution LTE/SAE

RAN

Evolved Packet Core (EPC)

GSM
SGSN/MME

PCRF

BSC
BTS

SGSN

WCDMA

SAE Gateway

Serving
GW

RNC
NodeB

PDN
GW

Content
and service
networks

LTE

MME

Control plane
User plane

HSS

eNodeB
Figure 11: 3GPP Rel8 LTE/SAE network architecture (simplified)

PS domain network nodes connect

multiple access technologies and
interfaces to service control and
database functions. The SGSN and
GGSN will evolve to serve as the
SAE networks MME and SAE GW.
Operators may also install SGSNand MME-functions on separate
physical nodes
(refer to figure 11).
A powerful means of migrating
all services, the IP Multimedia
Subsystem (IMS), provides
common service control.
The Nokia Siemens Networks
network management system
supports common operational
procedures.
These products feature high
performance technologies that
configure and adapt flexibly to suit
deployment requirements. They
also bring to the table all the benefits
of reliable carrier-grade systems.

The Nokia Siemens Networks LTE/

SAE solution enables operators to costefficiently introduce and run LTE/SAE:
No additional site preparations
required: Nokia Siemens Networks
BTS platforms enable LTE radios to
be easily added to legacy equipment
without enlarging the footprint
Flexible approach: If necessary,
operators may run LTE alongside
GSM/EDGE, WCDMA/HSPA or
other radio access systems such
as CDMA, WLAN or WiMAX
Painless migration: LTE/SAE fully
supports security, roaming, QoS,
and similar features
Reusable infrastructure: Current
2G/3G applications may be used
again in LTE

This approach ensures cost-effective

network migration, early system
availability and stability, and protects
investments in the overall LTE/SAE
solution.

Network Evolution LTE/SAE

13

Conclusions
The evolving mobile broadband business
opportunity calls for high performance
all-IP mobile broadband networks.
The motivations, requirements and the
solution based on the LTE/SAE standard
have been discussed. Several user
studies lead to the conclusion that
traffic in mobile networks will snowball
in the years ahead. The driving forces
behind this growth are:
Broadband Internet access offering
a DSL-like user experience
On demand video content and
Web2.0 applications
Fixed voice substitution
Service convergence across
multiple access technologies
While WCDMA/HSPA has made
significant strides towards efficient
mobile data and multimedia information
exchange, LTE/SAE will provide
extended network performance and
reduced cost per MB that are able
to deliver on the promise of future
broadband mobile wireless
communications.

14

Network Evolution LTE/SAE

LTE/SAE charts a natural evolutionary

course for 2G/3G operators because
it offers:
Investment protection by reusing
sites and network elements to the
maximum
A superior user experience
enhanced by high throughput and
low latency, offering rich potential
for subscriber uptake
Low cost per MB courtesy of a flat,
IP-based network architecture and
high spectral efficiency, enabling
operators to cost-efficiently
introduce flat rates
Scalable bandwidth ranging
from 1.4 up to 20 MHz, enabling
operators to exploit lower and
other economically-attractive
frequency bands where relatively
little spectrum is available, achieving
nationwide coverage at far lower
costs
As an industry pacemaker, Nokia
Siemens Networks has a clear vision
and strategy for implementing LTE/
SAE. Geared to reuse as many system
components as possible, Nokia Siemens
Networks LTE/SAE solution will
enable early migration to flat network
architecture, optionally with I-HSPA as
an intermediate step. Complying fully
with the 3GPP LTE/SAE standard, this
high performance mobile broadband
network will be reliable and interoperable.
By enabling its smooth, early introduction,
Nokia Siemens Networks will optimize
the LTE/SAE solutions total value of
ownership.

Abbreviations
3GPP

AAA

aGW
AS
ASN
BS
BSC
BSS
BTS
CDMA

DSL
EDGE

EGPRS

eNode B
ePDG

FDMA

FMC
FTP
GGSN

GSM

HA
HLR
HSDPA

HSPA
HSUPA

HDTV
HSS
I-HSPA

IMS
IP
ISD
LTE

Third Generation
Partnership Project
Authentication,
Authorization, Accounting
Access Gateway
Application Server
Access Service Network
Base Station
Base Station Controller
Base Station Subsystem
Base Transceiver Station
Code Division Multiple
Access
Digital Subscriber Line
Enhanced Data rates
for GSM Evolution
Enhanced General Packet
Radio Service
enhanced Node B
Evolved Packet Data
Gateway
Frequency Division Multiple
Access
Fixed Mobile Convergence
File Transfer Protocol
Gateway GPRS Service
Node
Global System for Mobile
Communications
Home Agent
Home Location Register
High-Speed Downlink
Packet Access
High-Speed Packet Access
High-Speed Uplink Packet
Access
High-Definition Television
Home Subscriber Server
Internet High-Speed Packet
Access
IP Multimedia Subsystem
Internet Protocol
Inter Site Distance
Long-Term Evolution

LSTI
LTE-SAE Trial Initiative
m2m
Machine-to-Machine
MGW
Media Gateway
MIMO
Multiple Input / Multiple

Output
MME
Mobility Management Entity
NGMN
Next Generation of Mobile

Networks
OFDM
Orthogonal Frequency

Division Multiplexing
PCF
Policy Control Function
PCRF
Policy and Charging Rule

Function
PDN-GW Packet Data Network

Gateway
PDSN
Packet Data Serving Node
PS
Packet-switched
PSTN
Public Switched

Telephone Network
QAM
Quadrature Amplitude

Modulation
QoS
Quality of service
RAN
Radio Access Network
RF
Radio Frequency
RNC
Radio Network Controller
SAE
System Architecture

Evolution
SAE GW System Architecture

Evolution Gateway
SC-FDMA Single Carrier Frequency

Multiple Access
SGSN
Service GPRS Service

Node
SMS
Short Message Service
UE
User Equipment
UL
Uplink
UMTS
Universal Mobile

Telecommunications

System
VoIP
Voice over IP
WCDMA Wideband Code Division

Multiple Access

References
[1] NGMN white paper version 3.0:
Next Generation Mobile Networks Beyond HSPA and EVDO
http://www.ngmn.org/fileadmin/content/documents/downloads/
White_Paper_-_Beyond_HSPA_and_EVDO.pdf

Network Evolution LTE/SAE

15

Nokia Siemens Networks

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Order-No. C401-00143-WP-200711-3-EN
Copyright 2008 Nokia Siemens Networks.
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