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RAN Sharing White Paper

Issue 01

Date 2007-03-14

HUAWEI TECHNOLOGIES CO., LTD.

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Huawei UMTS RAN Sharing White Paper

About This Document

Intended Audience
This document describes the UMTS RAN network sharing principles and two popular
RAN sharing modes, dedicated carrier and shared carrier. The two modes are
depicted in terms of system information broadcasting, operator deployable features,
mobility control, license management and O&M functions. Key customer values such
as huge CAPEX and OPEX savings, quick Time-to-Market brought by the
deployment have also been described. The text also lists existing RAN Sharing
cases around the globe some of which are provided by Huawei RAN sharing
solution.
This document is intended for:
Network planning decision makers
Third party consulting companies reference

Change History
Updates between document issues are cumulative. Therefore, the latest document
issue contains all updates made in previous issues.

Changes in Issue 01 (2010-09-10)

Initial release.

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Contents

1 Executive Summary.......................................................................................................1-1
2 Introduction....................................................................................................................2-3
2.1 RAN Sharing................................................................................................................................ 2-3
2.2 MOCN.......................................................................................................................................... 2-4

3 RAN Sharing Functionalities........................................................................................3-6

3.1 RAN Sharing Functionalities........................................................................................................ 3-6
3.1.1 System Information Broadcasting........................................................................................ 3-6
3.1.2 Features for Operators........................................................................................................ 3-6
3.1.3 Mobility Control.................................................................................................................... 3-6
3.1.4 License Management.......................................................................................................... 3-6
3.1.5 Operation and Maintenance................................................................................................ 3-6
3.2 MOCN Functionalities.................................................................................................................. 3-7
3.2.1 System Information Broadcasting........................................................................................ 3-7
3.2.2 Features for Operators........................................................................................................ 3-8
3.2.3 Mobility Control.................................................................................................................... 3-8
3.2.4 MOCN Operator Types........................................................................................................ 3-8
3.2.5 License Management in MOCN...........................................................................................3-8
3.2.6 MOCN Operation and Maintenance.....................................................................................3-9

4 RAN Sharing Experiences..........................................................................................4-10

5 Conclusions and Customer Values...........................................................................5-12
5.1 Conclusions................................................................................................................................ 5-12
5.2 Customer Values........................................................................................................................ 5-12

6 Abbreviations...............................................................................................................6-14

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Figures

Figure 1-1 Architecture of UTRAN sharing........................................................................................1-2

Figure 3-1 OM architecture used in RAN sharing mode....................................................................3-7

Figure 3-2 OM architecture used in MOCN mode.............................................................................3-9

Tables

Table 4-1 Global RAN Sharing cases.............................................................................................. 4-10

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1 Executive Summary

Due to the large number of base stations and related site acquisition expenses along
with site transmission cost, RAN (Radio Access Network) side always accounts for a
majority of CAPEX (CAPital EXpenditure) in a wireless telecommunication network.
Statistics also indicate that RAN side still prevails In terms of OPEX (OPerational
EXpenditure).
Improving BTS/Node B module capacity to reduce site number is one way to lower
TCO (Total Cost of Ownership). But it is definitely not the only way. Global operators
have been focusing on another alternative, RAN sharing. According to an ABI
Research report, the global OPEX and CAPEX savings from RAN infrastructure
sharing may reach $60 billion in the next five years. The study also indicates that
operators can save a minimum of 40 percent besides those available from passive
site sharing. Network construction period is shortened and operators are able to
provide services quickly. This provides operators with the leverage to dominate the
market.
Passive sharing involves components such as the towers, cables, physical site or
rooftop, shelters, power supply, air-conditioning and alarm systems, etc. Active
sharing refers to the sharing of antenna systems, backhaul transmission systems and
the base station equipment itself. This text deals with active sharing only in UMTS
(Universal Mobile Telecommunication System) RAN network.
The UTRAN (UMTS RAN) sharing solution can be divided into Multi-Operator Core
Network (MOCN) solution and RAN sharing solution depending on whether spectrum
resources are shared or not. The sharing of spectrum resources is known as MOCN
solution, whereas the independent use of spectrum resources is known as RAN
sharing solution. This text describes these two solutions in terms of technical
principles, software/hardware impacts, and deployment scenario analysis.
Please note, the meaning of RAN Sharing may vary in different contexts. Under
most cases in this text, it refers to the dedicated carrier mode of UTRAN sharing. It
could also mean a broad sense of UTRAN sharing, which includes dedicated carrier
mode and shared carrier mode (MOCN).
Currently, more and more operators prefer network sharing, because it helps them to
complement each other in coverage, fulfill the deployment plan within the specific
time, and reduce investment risks.
In UTRAN sharing, operators own CNs respectively. They share a UTRAN only in the
shared area. This solution is cost-effective in site acquisition, site construction,
transmission, and RAN equipment. It also keeps operators' CNs, services, and
charging independent.
Figure 1.1 shows the architecture of UTRAN sharing, which consists of a shared
RAN and an OM system. The introduction of UTRAN sharing brings changes in

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functions, interfaces, license management, and configuration, which will be depicted

in the following chapter.

Figure 1.1 Architecture of UTRAN sharing

UTRAN sharing, however, has some limitations, like KPIs and service introduction,
etc. The operators become less independent and they need to closely cooperate with
each other to overcome the limitations especially during network rollout and
expansion.

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2 Introduction

In RAN sharing solution, each operator uses dedicated carrier resources. All sets of
RAN equipment, for example, RNCs and Node Bs, are shared physically. By dividing
the RAN into different logical RANs, multiple operators can use dedicated
frequencies on a physical RAN to cover the same area. This solution is independent
of the core network (CN) and user equipment (UE). Only the upgrade of the
equipment on the RAN side is required.
The RAN sharing solution eliminates complete dependency for operators in the RAN
side. It supports independent operation and maintenance (OM) at the cell level,
which reduces the cost of network construction and protects the independency of
service and OM (including Performance Management, Fault Management and
Configuration Management). This also effectively ensures the differentiated operation
policies between operators who are sharing the network. So far Huawei is the only
vendor can help operators maintain independent in RAN Sharing.
The MOCN solution enables all the operators to share common carrier resources,
and therefore all sets of RAN equipment, for example, RNCs and Node Bs, are
completely shared. This solution requires the interoperability between the CN and the
UE. The UEs of R6 or later versions, namely, supporting UEs, support this solution.
The pre-R6 UEs do not support this solution. On the Huawei system side, however,
the pre-R6 UEs can access the MOCN and be routed to an appropriate CN, at the
same time balancing load for roaming UEs.

2.1 RAN Sharing

RAN sharing is an independent carrier network sharing solution. In RAN sharing,
operators have a complete CN of their own, and what they share is only common
hardware resources such as RNCs and Node Bs. That is to say, operators share
RAN equipment but not radio frequency resources.
In a shared RNC or Node B, each operator manages and only uses its frequency
resources. An operator has exclusive use of frequency resources, and a UE that
subscribes to an operator can camp on only a cell belonging to this operator.
RAN sharing has the following characteristics:
A shared RAN is connected to multiple CNs, which belong to different operators.
Frequencies of each operator are not shared. That is, each operator owns a
license and uses specific frequencies.
Huawei RAN sharing solution enables two to four operators to share RNCs and Node
Bs and at the same time to use their own CNs. Their frequencies, however, are
different; therefore, multiple operators can use their own frequency on the same RAN
equipment to cover the same area. When the UE visits an operator's network, the

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RNC identifies the operator by the cell, and broadcasts a unique PLMN-ID in the
operator-specific cell.
Huawei RAN sharing solution also supports independent Iub transport, which
enables operators to share physical bandwidths and at the same time to
independently control logical bandwidths. RAN sharing allows flexible networking
modes where a shared RNC can be connected to a shared or non-shared RNC or
Node B. With this solution, the operators can share part of a network at the minimum
granularity, make utmost use of the RNC capacity, integrate the networks that
logically belong to the same operator into an independent whole, and deploy services
of the shared network independently.

2.2 MOCN
In MOCN solution, operators share resources of the entire RAN, including spectrum
resources. This solution is applicable to the following scenarios:
A 3G-licensed operator shares spectrum resources with other operators.
The operator who owns multiple spectrums uses these spectrums as a resource
pool and shares the pool with the operators who have no spectrums.
MOCN has the following characteristics:
The shared RAN is constructed by one operator and shared by other operators.
These operators contribute their spectrum resources (if any) and share all
spectrum resources between each other (no matter whether an operator
contributes spectrum resources or not).
The shared RAN is connected to the CNs of multiple operators.
Each operator is allowed to deploy Iu Flex, and the CN nodes within an
operator's network form a CN pool.
The UEs in the same shared cell are routed from the RAN to the CNs of
respective operators.
Just like RAN sharing mode, MOCN solution enables two to four operators to share
RNCs and Node Bs and at the same time to use their own CN. With the application
of this solution, a cell can broadcast a Multiple PLMN ID LIST containing PLMN-IDs
of multiple operators. The MOCN-enabled supporting UE can choose a PLMN-ID and
send it to the RNC. The RNC selects an appropriate route for this UE. If a non-
supporting UE exists in the shared cell, the UE does not report any PLMN
information to the RNC. Usually, at this time the RNC determines a route according to
the PLMN-ID derived from the International Mobile Subscriber Identity (IMSI) or
according to the Network Resource Identifier (NRI) in the Temporary Mobile Station
Identity (TMSI) TMSI or Packet TIMSI (P-TMSI).
If the PLMN-ID or NRI corresponds to one of the CNs that the RNC is connected
to, the RNC is directly routed to the corresponding CN node.
If the PLMN-ID or NRI does not correspond to any of the CNs that the RNC is
connected to, the RNC tries to connect to each CN according to a certain
principle. If the routing fails, the RNC tries the next CN node by following the
redirection process until the routing succeeds.
If the IMSI, TMSI, or P-TMSI is unavailable, the RNC keeps trying the CNs one by
one according to a certain principle.

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The MOCN solution uses only one set of OSS equipment (operators still need to
deploy their own NMS systems.).

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3 RAN Sharing Functionalities

3.1 RAN Sharing Functionalities

3.1.1 System Information Broadcasting
Because of dedicated carrier, each cell pertains to a unique PLMN identity. The
PLMN-ID is broadcast in the master information block of each cell. For system
information broadcasting, there is no essential difference between a shared RNC and
a non-shared RNC except that the shared RNC supports multiple PLMNs.

3.1.2 Features for Operators

In RAN Sharing solution, most UTRAN features can be deployed upon operator
request since the cell is physically independent. However, there are features that
have to be deployed together. Please contact Huawei local office for more
information.

3.1.3 Mobility Control

Both inter-RAT handovers and intra-RAT handovers between different operators are
supported. Switches are available to activate/deactivate this function. By default, this
feature is disabled. However, there are no impacts on intra-operator handovers.

3.1.4 License Management

For a shared RAN, there are still one RNC license and one Node B license. Licenses
define all the functions and equipment resources, which can be distributed among
different operators. The licenses must be activated before these functions and
resources are used.
The Node B license is able to be distributed among different operators. It is managed
only on the M2000, whereas the RNC license can be managed either on the M2000
or on the LMT.

3.1.5 Operation and Maintenance

Most OM procedures in a shared network are the same as those in a non-shared
network. This section describes the OM architecture used in RAN sharing mode and
the way of data management through the Itf-N.
For RAN sharing, the OM architecture is composed of shared master Operation
Support System (OSS), Network Management System (NMS), and interfaces.

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Figure 1.2 shows a typical OM architecture used in RAN sharing mode, which is
composed of the NMS of operator A, NMS of operator B, shared master OSS, and
interfaces.

Figure 1.2 OM architecture used in RAN sharing mode

The components of each part are described as follows:

Shared master OSS: including the LMT, CME, and M2000
Operator NMS: including the managers
Interface: including the Itf-N FM/PM/CM
The shared master OSS provides network management and OM functions. One of
the operators or a third party is expected to operate the shared master OSS, which is
specified in the commercial agreement among operators. Huaweis RAN sharing
solution provides cell-level Fault Management (FM), Performance Management
(PM), and Configuration Management (CM) for each operator. Although some
vendors do claim the support of RAN sharing mode, they can not provide a fully
independent OSS system, therefore multiple operation and support teams from
sharing parties and close cooperation between sharing parties will be needed. This
also introduces operational complexity and cost.

3.2 MOCN Functionalities

3.2.1 System Information Broadcasting
In the MOCN solution, the MOCN cells belong to all the operators in sharing mode.

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The PLMN identity (Common PLMN-ID), MIB PLMN identity, and Multiple PLMN ID
LIST fields must be set in the system information MIB in the MOCN cell.
The Common PLMN-ID and Multiple PLMN ID LIST field values are available in the
cell configuration information.
Two kinds of UE are defined in 3GPP, e.g. supporting UE and non-supporting UE.
Thus two UE behaviors can be expected. A supporting UE uses the PLMN-ids that
are broadcast in the Multiple PLMN ID List information element and sends an
indication to the RNC. Thus, the RNC can select a route to the target CN node
according to the indication from the UE.
Non-supporting UE ignores the broadcast system information that is relevant for
network sharing and uses the broadcast "common PLMN-id" in its PLMN
(re)selection processes.
If the RNC obtains the IMSI, it extracts the PLMN-ID from the IMSI, then the RNC
routes the UE to the HPLMN according to the PLMN-ID.
If the RNC obtains the TMSI (P-TMSI), it extracts the NRI value from the TMSI (P-
TMSI), then RNC routes the UE to the CN nodes according to the NRI.
If the RNC cannot obtain the IMSI or TMSI (P-TMSI), or the NRI extracted from the
TMSI (P-TMSI) is invalid, the RNC selects the CN node of the primary operator
preferentially from the CNs of the operators that share the RNC. Alternatively, the
RNC can select the CN nodes of the operators in balanced probabilities through the
Round Robin algorithm. In such a case, the RNC must try each CN node according
to the PLMN LIST of the cell by using the redirect mechanism.

3.2.2 Features for Operators

In the MOCN solution, all the features have to be deployed in the same way because
the cell is shared by the operators.

3.2.3 Mobility Control

Handovers similar to those in the non-shared network are supported. The UEs in the
MOCN cell of operator A can be handed over to a dedicated neighboring 3G/2G cell
of operator A. In addition, the UEs in the dedicated neighboring 3G/2G cell of
operator A can be handed over to the shared MOCN cell.

3.2.4 MOCN Operator Types

In the MOCN mode, there are two types of operators, primary operator and
secondary operator. A primary operator has a higher priority in authority management
than a secondary operator. The primary operator can be any one of the sharing
parties. For example, the primary operator can be the third party who provides
network sharing or the operator who provides the RAN equipments.
When a new operator is added to an RNC, operator type shall be specified, a primary
operator or a secondary operator. In an RNC, the primary operator is mandatory, and
a maximum of four operators can be connected to a shared RNC.

3.2.5 License Management in MOCN

Node B license is shared by all the operators and not set separately.

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Each operator has its dedicated RNC license in which the Capacity License can be
independent set, but the Optional Function License shall be identical. The sum of
shared operators Capacity License cannot exceed the max capacity purchased from
the License center.

3.2.6 MOCN Operation and Maintenance

In MOCN mode, most OM procedures are the same as those in the traditional
network.
The shared master OSS is responsible for network management and OM. According
to the commercial agreement among operators, one of the operators or the third
party is expected to operate the shared master OSS. The shared master OSS
provides the northbound interface for the NMS of each operator. Because of the
shared carrier, CM and FM statistics are shared completely while partial PM statistics
like Iu interface separation, RAB setup success rate and release reason (by
operators) and operators CS AMR and Video Phone Erlangs, etc.

Figure 1.3 OM architecture used in MOCN mode

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4 RAN Sharing Experiences

Generally, implementing RAN Sharing would also involve new software features
besides network infrastructure construction activities. In Huawei solution, Features
can be categorized into two classes, RAN Sharing Introduction Package and
MOCN Introduction Package. Co-existence of these two modes is not
recommended and therefore operators may choose one package to deploy.
Several RAN sharing cases have been announced till now. The following table
indicates published RAN sharing cases. Most RAN sharing cases happen in
developed and highly competitive markets. In the Canada Telus and Bell case,
MOCN has been used. Huawei provides 70% of RAN side equipments (Node B
number is estimated to reach 5,000 by 2010). The nation is divided into East and
West parts. Eastern region is constructed by Bell, and Telus takes the Western
Region. Each operator only needs to deal with its own region while acquiring a nation
wide coverage thanks to the introduction of MOCN. Investment spent on network
infrastructures has been reduced sharply because site, tower, antenna and feeder
system, transmission and BTS equipments are being totally shared between the two
parties. Thus both Telus and Bell are able to focus on their region. If the network is
deployed in the traditional way, each operator will have to do the job nationwide.
Investment will increase and construction period will be extended. The MOCN
network has reached its initial acceptance and will be commercially launched in Q1,
2010. Bell Canadas coverage surged to 98% from 65% while site number are being
reduced by 50%.
In order to balance anticipated TCO savings and expand network coverage with the
inevitable loss of independence, Vodafone Spain began RAN sharing solution studies
early 2007. Vodafone Spain then signed a deal with Orange Spain to share Huawei-
deployed radio access networks in regions surrounding Madrid, Valencia and Bilbao.
RAN sharing brings greater flexibility in the management of essential infrastructure,
network deployment, and TCO savings of up to 30%. According to report from
Vodafone Spain, subscribers increased by 20% while CAPEX reduced by 33% and
OPEX by 38%. Vodafone Spain also introduced 7.2 Mbps HSDPA and 1.92 Mbps
HSUPA in Madrid and Barcelona, which takes the lead in the market.

Table 3.1 Global RAN Sharing cases

Country Operator Mode

VDF
Spain RAN Sharing(Dedicated Carrier)
Orange
T-Mobile
UK RAN Sharing(Dedicated Carrier)
H3G
TeliaSonera
Sweden MOCN
Tele2

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VDF
Australia RAN Sharing(Dedicated Carrier)
Optus
Telstra
Australia MOCN
H3G
Telus
Canada MOCN
Bell
H3G
Sweden MOCN
Telenor
Sferia
Poland RAN Sharing
AERO2
One of the reasons why operators have not been so embracing of network sharing is
that in the past, an operators network coverage and quality were significantly
differentiating factors and this might have mitigated attraction of network sharing
more or less. Another reason is from the telecom regulators. Till recently, green lights
have been shown in many countries and this lifts regulatory bans on network sharing.
Losing competitive edge in terms of coverage and losing control of priorities for future
roll-out of the RAN have also been operators concerns in hailing network sharing.
However, these may be well outweighed over the coming years by the intensifying
pressure on their CAPEX and OPEX budgets, especially when confronting the global
economic downturn. There should be a lot reasons to make operators more willingly
take this deal more seriously than ever.

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5 Conclusions and Customer Values

5.1 Conclusions
Currently, more and more operators are accepting the RAN sharing idea because
RAN sharing saves the network construction cost at the initial phase, speeds up
network rollout, and widens the initial coverage in a very cost effective way.
Infrastructures are being shared and sharing parties focus on their own region
instead of the whole nation. When the traffic increases and network capacity needs to
be expanded, operators can set up their own networks and migrate smoothly to the
independent network or choose to strengthen their cooperation in case they prefer to
protect the original investment. On one hand, this solution supports sharing of some
network infrastructure; on the other hand, this solution supports different services and
applications provided by different operators to remain competitive.
The RAN sharing solution allows operators to broadcast independent PLMN-ID on
their own carriers. The UE can receive system information only from the operator to
which it subscribes, and thus it can select the network correctly. The MOCN solution
allows operators to broadcast multiple PLMN-IDs in a cell and allows the supporting
UE to display the logo of the operator of the home network. It enables operators to
develop their own users and brands independently.
The RAN sharing and MOCN solutions support independent deployment of CN
services and independent charging. The RAN sharing solution also supports
independent deployment of RAN services in the shared RAN.
As the leading supplier in the industry, Huawei has profound experience and unique
predominance in the network sharing solution. Unlike some vendors that only focus
on one of the two RAN sharing techniques, Huawei supports both RAN sharing and
MOCN mode. Huawei is committed to continuously tracking customer demand,
cooperating with other industrial chain partners to provide operators with ideal and
quality UTRAN sharing solution.
Huawei initiated studies on RAN Sharing in 2006 and released its first commercial
version that supports RAN Sharing in 2007 in its RAN6.0 release. Thanks to constant
research and development, further improvements are being added into new RAN
releases.

5.2 Customer Values

In UTRAN sharing, multiple operators share costs of mobile network deployment,
which economizes on fast network deployment and increases utilization of network
resources. This solution is beneficial for all UMTS operators.
Cost-effectiveness

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The driving force for operators to share networks is that network sharing can
substantially reduce CAPEX and OPEX. UTRAN sharing can decrease CAPEX
and OPEX by approximately 30% to 40%.
Short to Market
UTRAN sharing accelerates network deployment and enlarges network
coverage, thus facilitating UMTS network deployment. Time-to-market is
shortened up to 50% than usual.
Hardware complement
UTRAN sharing can effectively solve the problems of environment restrictions,
for example, limited number of antennas and sites.
Better services
UTRAN sharing frees operators from the heavy workloads and long durations of
network deployment so that the operators have more time to focus on end-user
services. For end-users, UTRAN sharing provides them with better services and
larger coverage.
It is more like that a nation wide mobile network has been divided into several parts
and constructed by different mobile operators (up to 4 mobile operators are
supported now) respectively. Each mobile operator takes the full responsibility of its
own region including site acquisition, tower erection, transmission backhaul
provisioning and BTS equipment delivery and commissioning. Along with Huaweis
carrier-class, flexible and green site solution, the TCO-saving can be even higher.
Aiming at OPEX saving, easy maintenance and CO 2 emissions cutoff, Huawei site
solution covers power (solar, wind and battery), shelter, tower and antennas. Huawei
Mini-shelter has various configurations, like one-unit, two-unit, three-unit, equipment
cabinet, battery cabinet and auxiliary cabinet. Customers are able to choose the most
suitable shelter for their products. Huawei mini-shelter has boasts the following
highlights: footprint saving, material saving, energy saving, fast deployment and
smooth expansion.
RAN sharing provides access to subscribers from its sharing parties as if roaming
subscribers are using its subscribing operators network facilities. On the other hand,
each operators very own subscribers will enjoy the same access service (even
displaying its subscribing network name) in regions constructed by other mobile
operators. They may share the same standard level of KPI requirements to ensure
roaming user experience is not degrading. In the old 2G times, operators will have to
put their own BTSs to cover the very same region. With the introduction of RAN
Sharing, operators will be able to save a huge amount of investment not only in terms
of infrastructure but also operation maintenance.

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6 Abbreviations

Abbreviation Full Spelling

3G Third-generation technology
3GPP 3rd Generation Partnership Project
CAPEX Capital Expenditure
OPEX Operational Expenditure
RAN Radio Access Network
CN Core Network
HLR Home Location Register
IMSI International Mobile Subscriber Identity
MCC Mobile Country Code
MNC Mobile Network Code
MSC Mobile Switching Center
MOCN Multi-Operator Core Network
UTRAN Universial Terrestrial Radio Network Access
PLMN Public Land Mobile Network
RNC Radio Network Controller
SGSN Serving GPRS Support Node
TMSI Temporary Mobile Subscriber Identity
UE User Equipment

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