We would like to invite you to an exclusive webinar entitled 'Towards a Converged Network: Transport Network Strategies at Telekom Austria. This will present key new research findings from Maravedis-Rethink, and will feature our guest speaker, Alexander Schneider. Mr Schneider is head of transport network development at Telekom Austria Group, a frontrunner in European operators' move towards fixed/mobile convergence and all-IP networks. Mr Schneider will discuss key elements of Telekom Austria's strategy for deploying a twenty-first century network which harnesses some of the most important new technologies in fixed and mobile telecoms. These include small cells, software defined networking and the migration to all-IP infrastructure. In particular, the presentation will focus on the strategies and challenges in backhaul and IP migration. The webinar will offer a unique opportunity to gain details and insights into issues which are now facing many operators, and their suppliers, round the world, in the face of mounting data demands. Mr Schneider's presentation will be complemented by highlights from Maravedis-Rethink's most recent research into the 4G RAN and backhaul deployment plans of the world's leading mobile providers. Maravedis-Rethink tracks the top 100 4G operators and their business strategies, and has a per-carrier analysis of small cell and Cloud-RAN deployment plans, among other topics. Research Director Caroline Gabriel will share exclusive data in areas including small cell backhaul and SON (self-optimizing networks).

1. 1
June
1
CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink 2014
Towards a Converged Network
Transport network strategies at
Telekom Austria Group
January 28 2014
Alexander Schneider
Head of transport network
development, Telekom Austria
Caroline Gabriel, Research Directo
Maravedis-Rethink

2. 2
January
2014
Copyright © Maravedis Inc 2013.
Welcome and housekeeping
> Caroline Gabriel, Research Director
Maravedis-Rethink’s research services
> Adlane Fellah, head of customer engagement
Key findings from latest RAN research
> Caroline Gabriel, Research Director
Transport network strategies
> Alexander Schneider, Telekom Austria
Q&A
www.maravedis-bwa.com
Agenda

3. 3
CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink
2013
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3
Methodology
January
2014
Copyright © Maravedis Inc 2013.
dis-bwa.com
Top 40 cellco groups
Number and profile
of cell sites
Data requirements,
location, business
model, spectrum,
regulatory
Cell sites required to
be added or
upgraded
Equipment and
software deployed
2013-2018 + capex
Demand driven forecast
Primary and secondary data + modelling for each operator
Additional detailed survey
Vendor input on shipments and expectations
Forecasts by region, technology, equipment type, mode, spectrum etc

4. 4
CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink
2013
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4
Complexity of converged HetNet
January
2014
Copyright © Maravedis Inc 2013.
dis-bwa.com
0
5
10
15
20
25
30
35
New licensed
spectrum
LTE upgradesWi-Fi offload Small cells
inc Wi-Fi
Cloud-RAN Flexible
networks,
SON
LTE-A
features eg
CoMP
%ofnewdatacapacity
2013 2018 Over period to 2018 2020
• Operators will use
many tools
• Rising value of
access to LTE
spectrum and fiber
• But many other
tools in play to
achieve capacity

5. 5
CLIENT CONFIDENTIAL
Copyright © Maravedis-Rethink
2013
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5
Small cells and Cloud-RAN
January
2014
Copyright © Maravedis Inc 2013.
dis-bwa.com
• Modernization vs
build-out, decline in new
primary cells
•New architectures
•Metrocells
•Cloud-RAN
•Super Macro
•To fulfil potential
• Interworking with
other layers
• Flexible spectrum
• SON etc
0
10,000
20,000
30,000
40,000
50,000
60,000
0
2,000
4,000
6,000
8,000
10,000
12,000
2013 2014 2015 2016 2017 2018
unitsAPAC
units
Africa CALA CIS Europe Middle East North America APAC
Cloud-RAN deployment by region
Source: MaRe RAN Service report

6. 6
CLIENT CONFIDENTIAL
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2013
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6
The need for fiber
January
2014
Copyright © Maravedis Inc 2013.
dis-bwa.com
• Widening gulf between
fiber haves and have-
nots
• Small cell backhaul
• Cloud-RAN fronthaul
• Balance of power
shifts to those with
wirelines
• Pace of innovation in
alternatives
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013 2014 2015 2016 2017 2018
primarysites
Fronthaul links total Wireless fronthaul
Fronthaul deployment
Source: MaRe Cloud-Ran report

7. www.maravedis-bwa.com
Wireless Infrastructure Analyst Firm
Since 2002
CLIENT CONFIDENTIAL
© Maravedis Inc.
CLIENT CONFIDENTIAL

8. Research Offering
www.maravedis-bwa.com
© Maravedis Inc.
CLIENT CONFIDENTIAL
RAN Backhaul
Clearspectrum Core Network
Wireless Watch
Faultline
Consulting

9. Analyst Team
Customer Engagement
Miami
Senior Analyst Video
London
www.maravedis-bwa.com
CLIENT CONFIDENTIAL
Adlane
Fellah
Caroline
Gabriel
Research Director
London
Robert
Syputa
Peter
White
Senior Advisor
Seattle
Claus
Hetting
Small Cells & WiFi
Copenhagen
Earl
Lum
Backhaul & Core Analyst
California
Basharat
Ashai
Market Analyst
APAC and MEA
India
Luis
Reyes
Regulatory
Research
Mexico
© Maravedis Inc.
CLIENT CONFIDENTIAL

10. www.maravedis-bwa.com
Expert Analysts.
Carrier
Relationships.
Real Time Value.
© Maravedis Inc.
CLIENT CONFIDENTIAL
Why Maravedis-Rethink?

11. www.maravedis-bwa.com
CLIENT CONFIDENTIAL
What are your objectives?
CLIENT CONFIDENTIAL
© Maravedis Inc.
Objective #1: Support Your Strategy and R&D?
Objective #2: Support Your Product Managers?
Objective #3: Support Your sales team?

12. 2014 Research Offering
© Maravedis Inc.
CLIENT CONFIDENTIAL
Service Description Deliverables Lead Analyst
RAN Service • Covers Macro cells, small cells
and Carrier WiFi.
• Vendor Profiles & SWOT Analysis
• Shipments and Market Forecasts
• Carrier expectations & Trends.
 2 comprehensive reports
per year (PDF and Excel)
 6 research notes
 Analyst Support
Caroline Gabriel
Backhaul
Service
• Covers PTP , NLOS and emerging
backhaul technologies
• Vendor Profiles & SWOT Analysis
• Shipments and Market Forecasts
• Carrier expectations & Trends
 2 comprehensive reports
per year (PDF and Excel)
 Analyst Support
Earl Lum
Wireless Watch Assess the impact of events which
have happened through the week,
in the world of wireless.
 48 Weekly Research Issues Caroline Gabriel

13. 2014 RESEARCH OFFERING (CONT.)
Q1
– Global Macrocell BTS Transceiver Market Analysis
– Global Macrocell Base Station Market Analysis
– Global Microcell Base Station Market Analysis
• Q2
– Global PTP Radio Market Analysis
–– Global BTS Antenna Market Analysis
• Q3
– Global DAS Market Analysis
• Q4
– Global Picocell Market Analysis
– Global Fiber Optic Cables/Connector Analysis
– Various DNA-I Teardown Reports, Ex: Ericsson W-CDMA/LTE AIR21 17/2100MHz
Semi-Active Antenna Unit to its DesigN Analysis Infrastructure (DNA-I) series of
teardown reports.
© Maravedis Inc.
CLIENT CONFIDENTIAL

14. “”Ceragon subscribes to Maravedis-Rethink’s backhaul research service which provides us
with in-depth analysis of the microwave market. We particularly value their coverage of
emerging trends and their ability to think outside of the box and investigate the newest
disruption in the industry.”
Ran Avital, Vice President Strategic Marketing, Ceragon Networks
"We have been using MOSA for information on the LTE and WiMAX deployments from the
devices availability, operator interviews and spectrum information. The service is very useful
and augments other sources of information that we use for our qualitative research."
Hasan Sharif, Senior Manager Spectrum Strategy, TRA, United Arab Emirates
"Wireless Watch is a great way of keeping in touch with the wireless industry. Caroline's
insights and deep understanding of the industry makes the newsletter something I would
recommend to anyone."
Ronny Haraldsvik, CMO, SpiderCloud Wireless
www.maravedis-bwa.com
CLIENT CONFIDENTIAL
What our Clients Have to Say…
© Maravedis Inc.
CLIENT CONFIDENTIAL

15. Contact Information
© Maravedis Inc.
CLIENT CONFIDENTIALBROADBAND WIRELESS INTELLIGENCE
www.maravedis-bwa.com
www.linkedin.com/in/adlanefellah
www.twitter.com/maravedis
MaravedisRethink
info@maravedis-bwa.com
http://www.maravedis-bwa.com
http://www.rethinkresearch.biz/
(305) 865-1006
(514) 313-5656
Adlane Fellah
Customer Engagement

16. 16
Transport Network Strategy in
Telekom Austria Group
Alexander Schneider,

17. 17
Content Table
1 Group Overview
2 Group Backbone
3 Convergent Network Strategy
4 Transport NW Development a IP/MPLS
b
c
d Small Cell Backhauling
DWDM
Ethernet MW
e Migration to All IP
f
g
h SDN
Security
Synchronization

18. 18
Telekom Austria Group: Who We Are
> One of the leading
communication providers in
Central and Eastern Europe
> We operate in eight countries.
> Our almost 17,000
employees deliver
> Products and services of voice
telephony, broadband Internet,
multimedia services, data and IT
solutions, wholesale as well as
m-payment solutions
> For more than 23 million
customers across our markets of
operations.
Home Overview Brand Facts OpCos History Innovation CSR Holding Vodafone

19. 19
TAG International Backbone

20. 20
Convergent Networks
Strategy
20

21. 21
TAG develops it´s companies differentiated based on market
maturity, regulatory conditions and competitive situation
towards full communication providers
TAG MARKET EVOLUTIONARY PATH
Single Brand Multibrand
Mobile
Only
Convergent
Segmentation
MarketApproach&Offering
Austria
Slovenia
Bulgaria
Serbia
Croatia
Belarus
Macedonia
Full communication provider to
exploit all growth opportunities
Multibrand strategy to exploit
new mobile market segments
and protect the main brand
• Push operations to achieve
significant size.
• Focus on mobile-only
strategy & screen for
convergence entry
opportunity
21

22. 22
TAG – Fixed Access Footprint
22
Austria / A1: incumbent
>FTTEx/C/B:
DSL & Vectoring
>FTTH: GPON
Croatia / Vipnet: Bnet
acquired
>HFC (Coax Cable) Network;
>Bitstream (ADSL) - Wholesale
Offer
>Fiber connections to
corporate customers
Bulgaria / MTEL:
Spectrumnet & Megalan
acquired
>FTTH (GPON)
>Active Ethernet
Slovenia / Si.mobil:
>Bitstream DSL via Wholesale
offering of incumbent

23. 23
TAG Fixed Access Networks: Further Goals
23
> Reduction of leased lines
> Faster connection of mobile sites through fiber
> Consolidate the transport network
> Reduce the number of PoP locations and network elements
> Offloading Data traffic from cellular to fixed nw in home environment

24. 24
Transport Network
Development
24

25. 25
IP MPLS for Core and converged Backhaul
Telekom Austria Group issued an RFP in 2011 and selected 2 vendors for the group.
Access Service Edge
Internet
Aggregation
MSAN/DSLAM/
OLT
Core
Video
Voice
Gateway
10GE
GE
Customer Site
FE
E1/
MLPPP/TDM PW
Customer
CPE L2/L3 VPN
VoIP
TV 3-Play
L2/L3 VPN
xDSL/
FTTx
MPLS VPN
40/100GE
Mobile
RNC/EPC
PDH (microwave)
chSTM1/MLPPP/
TDM PW
Mobile
BSC/RNC
Core 1
Core 3
Agg 1
Agg 3Agg 2
Acc 1
Acc 2
nxE1
DHCP, Radius
Core 2
S C O P E O F R F P
8 Node
Types:
Core1
Core2
Core3
Agg.1
Agg.2
Agg.3
Acc.1
Acc.2

26. 26
Optical Layer
Telekom Austria Group TAG issued an RFP in 2012 for Metro/Access
WDM and selected 2 vendors for the group.
The Core WDM Layer shows 3 vendors in TAG, no RFP last year and
this year because book values still high compared to new
investment.
Cross layer optimization between the optical layer and the IP layer
is done in order to optimize the transport cost.

27. 27
Fiber vs. Microwave Decision Tree
Fiber Invest < x
AND possible to
construct until T ? Build Fiber
MW possible ? Build MW
Copper possible? Build Copper
yes
yes
yes
no
no
no
Fiber BC positive ? Build Fiber
Do nothing
yes
no
Fiber 60% - 70%
MW 30% - 40%
Copper 0% - 1%
x= Microwave TCO
Resulting Technology split for Mobile Backhaul
in A1 (incumbent operator):

28. 28
Ethernet Microwave
Telekom Austria Group TAG issued an RFP in 2009 and selected 1 vendor for the group.
Short Haul only
Telekom Austria Group issued an RFP in 2012 and selected 2 vendors for the group
Short Haul
Long Haul
E Band
Fiber and
Ethernet Microwave
are the main pillars
For Mobile Broadband
1Gbit/s1Gbit/s
Fiber
MW in the last hop for
rapid and cost effective
Roll out of mobile
networks. Fiber Roll out
for converged network.

29. 29
Small Cell Backhauling Concept
29
TAG has defined a concept for Small Cell Backhauling
Depending on the use case (e.g. capacity hot spot or indoor coverage) there
is a toolset of technologies already defined in TAG (E Band MW, Fiber, TDD
LTE, xDSL, Coax, Low Band MW)
Additional focus needs to be put on V Band Microwave (60 GHz)
• Higher attenuation reduces interference and allows frequency reuse of 1
• Wider beam allows fast mounting on lamp post and insensitivity to
misalignment and wind
• Low Cost all outdoor equipment with small footprint
• Low installation cost with “auto alignment” for mass deployment

30. 30
Migration of the Backbones from Legacy to IP
30
• All national Backbones in TAG are IP/MPLS capable
• However in most OpCos SDH is still in place.
• There are no new investments in SDH, new services are
provisioned on the IP/MPLS backbonde, existing services are
migrated from SDH to IP/MPLS whenever possible and as soon as
possible.
• Traffic reduction in the SDH network allows to reuse parts as
spare.
• Timeline SDH Phase out until 2018

31. 31
Migration of the Backhaul from Legacy to IP
31
Hypothetical distribution of Backhaul connections over time if TAG goes to All IP
(only IP) in the Backhaul Network by the end of 2017. The figures below the graph
indicate the year. The distribution shown until 2013 reflects the real situation.
Year
8 9 10 11 12 13 14 15 16 17
#BackhaulConnections
SRAN IP
4G IP
3G IP
3G ATM
2G TDM

32. 32
Security Strategy for LTE Backhaul
32
3GPP Technical Specification 33.401, recommends the following approach:
“if your are using shared or unsecure transport networks you should
encrypt traffic”.
Transmission of LTE user plane and control plane data should be regarded as
unsecure/untrusted in several cases:
• transport domain/infrastructure (e.g. leased lines) not owned by OpCo
• locations of eNodeBs are not owned by OpCo
• Radio Access Network (RAN) or other network equipment is shared with other
operators
In such a scenario, an operator should deploy a VPN gateway (security gateway) in
order to encrypt the LTE traffic in the backhaul network:
• Backhaul traffic between eNodeBs and mobile core network
• Backhaul traffic between eNodeBs

33. 33
Security Strategy for LTE Backhaul
33
IPSec security gateway overview

34. 34
Synchronization Strategy
34
Investment for synchronisation within TAG is mainly driven by the need to deliver
accurate frequency to the air interfaces of ~20.000 Radio sites especially when
migrating from TDM to IP.
For TDM-based aggregation networks (SDH/E1) every site can derive frequency in
sufficient quality via its network interface.
For base station sites without E1-uplinks (eg. SRAN with GbE-uplink) there are today
two standardised solutions for NodeB synchronisation.
• Synchronous Ethernet - SyncE
• Precision Time Protocol PTP - 1588v2
TAG shall use these two technologies in combination

35. 35
Synchronization Strategy – Frequency
35
Migration from SDH to Synchronous Ethernet requires that all Network Elements in
the chain support Synchronous Ethernet.

36. 36
Synchronization Strategy - Time
36
• PTP 1588v2 will be needed at the point of time when phase- and time of
day (ToD) sync is needed for some LTE_advanced features. SyncE will be
also a backup for 1588 Time synchronization and it will improve the
accuracy/robustness of the 1588 time synchronization.
• Time/Phase source could be taken from national timekeeping
organisations (e.g. for A1 from Austrian “Bundesamt für Eich- und
Vermessungswesen”). This has got the advantage that the government
has to make the strategic decision where to get the time information
from which may affect the national security.
• GPS based Time sources and NTP are not seen to be the future primary
timing reference for TAG Transport Networks.

37. 37
Phasing out legacy technologies
PDH Microwave will be replaced with Ethernet MW in the next years.
Today more Ethernet MW links in operation than PDH MW links.
ATM will be replaced with IP/MPLS in the next years.
Outphasing of SDH in the fixed network will be done later. SDH will
be here to stay for some more years.
Other technologies like Frame Relay, X.25 etc. have been phased out
already.

38. 38
Software Defined Networks SDN
TAG introduces SDN and NFV (Network Function Virtualization) in
the Core and IT (Datacenters) now and will introduce it in the
Transport in the mid term future.

39. 39

40. 4040
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Contact Information
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(305) 865-1006
(514) 313-5656
Adlane Fellah, Customer Engagement