Telefonicas

Journey to 5G_
Enrique Blanco - Global CTO

You choose. We connect_

DISCOVER, DISRUPT, DELIVER

We want our Clients to enjoy all the Benefits of the Digital World

DISCOVER, DISRUPT, DELIVER

New Services Demand Higher Speeds and Quality Assurance

More
Spectrum

Greater
Bandwidth

(Frequencies)

Need to Evolve our Networks

DISCOVER, DISRUPT, DELIVER

DISCOVER, DISRUPT, DELIVER

Under a New Technological Approach

BEFORE

NOW

5G
STARTS
TODAY
Already anticipating desired 5G features on LTE-Advance Networks
DISCOVER, DISRUPT, DELIVER

".

From Conventional LTE Networks

Conventional LTE Network: single carrier approach

2600 Band

1800 Band

800 Band

20MHz

20MHz

20MHz

150*
Mbps
Up to
150
Mbps

Second carrier sits idle

Third carrier sits idle

CONVENTIONAL
LTE Devices
* TEORICAL with 20 MHz

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".

To already commercial LTE- Advanced Networks

LTE Advanced Network: 2x Carrier carrier aggregation

2600 Band

1800 Band

800 Band

20MHz

300*
Mbps

Up to
300
Mbps

20MHz

20MHz

Third carrier sits idle

CATEGORY 6
LTE device

* TEORICAL with 40 MHz

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A World where Capable Devices are KEY

LTE CAPABLE DEVICES

CAT.3

NOW AVAILABLE

CAT. 4

DL 100 Mbps

DL 150 Mbps
1 band at a time
Up to 20MHz of
combined spectrum

DOWNLOAD
4K ULTRA HD MOVIE
under ideal conditions*

CAT. 6
DL 300 Mbps
UL 50 Mbps
More than 1 band at a time
Up to 40MHz of combined spectrum

Cat6 will save

HALF THE TIME

* https://www.qualcomm.com/news/onq/2014/06/20/importance-lte-cat6-samsungs-galaxy-s5-broadband-lte

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CAT. 9

CAT.10

DL 450 Mbps
UL 50 Mbps
Up to 60 MHz of
combined spectrum

Addition of a
second 20 MHz
UL 100 Mbps

1.5x FASTER peak

download speeds
swift application
response times

".

At MWC we go one step further

LTE Advanced Network: 3x Carrier carrier aggregation

2600 Band

1800 Band

800 Band

LTE Advanced
Tri-Band Carrier
Aggregation
enabled Samsung
Galaxy Note 4

20MHz

20MHz

370
450*
Mbps

CATEGORY 9
LTE Devices

10 MHz
20MHz

First experience out of Asia of up to 3x LTE Advanced CA in live network 800 +

1800 + 2600 (50 MHz) with Category 9 Ready to Market Devices from
Samsung
* TEORICAL with 60 MHz

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".

And even further

Dual CA + the most advanced indoor coverage solution
SAMSUNG
CATEGORY 6
LTE Devices
2600 Band

20MHz

1800 Band

10MHz

800 Band

20MHz

225
Mbps

Third carrier sits idle

Last MWCs most applauded vendor solution (Ericssons Radio Dot System) First
time in a large event live in a commercial network
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SPECTRUM IS A SCARCE AND LIMITED

RESOURCE

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11

5G Full-Duplex Revolution: multiplies the speed /no added

spectrum
IN THE FUTURE & IN TEF BOOTH AT MWC
FULL-Duplex enables to transmit and receive
on the same channel

TODAY
Radios cant transmit and receive at the same
time on the same channel

TX

RX

TX

RX

RX

TX

RX

TX

Self-Interference is billions of times stronger

than the received signal

A patented self-interference cancellation

technology isolates receiver from transmitter

Self-interference cancellation enables full-duplex and doubles spectral

efficiency
12
DISCOVER, DISRUPT, DELIVER

Common vision on the expected functionalities of 5G

X1000 VOLUME OF DATA TRANSPORTED PER UNIT

Existing Technologies
New Complementary
Tech
2010

2020

2030

10-100X MORE DEVICES CONNECTED

SIMULTANEOUSLY
100MBPS WHEREVER NEEDED

5G
+2020

10X INCREASE IN BATTERY LIFE.

-5X END-TO-END
ULTRA-RELIABILITY
1 MILLISECOND LATENCY

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To provide a new whole range of services

Autonomous
DRIVING

AUGMENTED
Reality

Virtual
REALITY

LATENCY

DELIVERED BY LEGACY
Real Time
GAMING

AUTOMOTIVE
eCall
DISASTER
Alert
DEVICE
Remote
Controlling
MONITORING
Sensor Networks

Multi VIDEOCALL

BIDIRECCIONAL
Remote Controlling

First Responder
CONNECTIVITY
Personal
CLOUD

Video
STREAMING

Better provision of
current services (lower
cost, improved
performance, better
experience continuity)
Support new services,
unthinkable with 4G
Technologies (ultra low
latency, massive IoT
services,)

WIRELESS
CLOUD Based
Office

ENABLED BY 5G

M2M

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TACTILE Internet

14

Nomadic

On the Go

Source: based on GSMA

Ability to personalize
services for specific
applications (vertical
industrial applications,
safety,)

Telcos networks make the Digital Revolution possible

Content

Apps

Operadoras
Telco

O.S.

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Devices

Telefnica has a strong focus

75% CapEx

+ FTTH

devoted to
transformation
& growth
+ IT Modernization
+ LTE

Record in investment FY2014: almost 16% CapEx/sales

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in accelerating its technological transformation

LTE (FY2014)
>20K

Sites in Service

60%

Coverage (%pop)

10

x2
y-o-y

OBs with 4G rolled-out and ...

4G in all markets by 2015

FIBRE (FY2014)
14.7 Mill.

(1)

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Premises passed

2014 including UK and E+

17

~x2
y-o-y

 to have differential future-proof network ready by 2016

MAJOR NETWORK
DATA TRAFFIC EVOLUTION
TRANSFORMATION IN PLACE
(2016E)
Total Data Traffic

ADVANCED DEPLOYMENTS
IN ALL NETWORK LAYERS

LTE

CAGR 14-16E

LTE sites

LTE
Coverage

~50,000

>+40%

>55%

>+35%

+~60%

Video traffic
CAGR 14-16E

FIBRE passed
premises

up to
22 mill

(1)

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2016 excluding UK, including E+

Deploying Optical IP solutions in

Core & Transport

First LTE-A features: 2 carrier

aggregation

Small cells & Indoors solution

deployments

Mobile

Fixed
>85%

~60%

Specific TOP PRIORITY projects

for ENTERPRISE Services