2019 IHS Markit. All rights reserved. 1 30 January 2019 5G best choice architecture White Paper 30 January 2019 IHS Markit Technology | White Paper Stephane Teral Executive Director Research and Analysis, Mobile Infrastructure operators need not replace their EPC with 5GC unless they know that 5G adoption among their subscribers is 100%. In other words, operators with only 5GC will not be able to service subscribers with 4G-only UE, or early UE that supports only NSA and needs EPC to connect to the network. Exhibit 9 Migration to 5G SA network architecture Phase II: 5GC deployment Source: IHS Markit 2019 IHS Markit After phase II is realized, operators will be able to offer all 5GC-dependent use cases. The deployment of 5GC and ability to perform E2E network slicing will allow operators to serve new verticals. Which deployment strategy is better? Both deployment strategies have an end goal which is the deployment of an independent 5G network. One of them moves directly to the end goal, optimizing investment and claiming a market leadership position in new verticals. The other is keener to leverage the current infrastructure to maximize its ROI, risking losing a significant market share in new markets. The common ground between both options is the fact that they must maintain the LTE network for a period of time. How much time exactly depends on the following factors: - The availability of sub-6GHz spectrum band - User adoption of 5G technology - Operators ability to deploy nationwide 5G coverageIHS Markit | 5G best choice architecture: White Paper 2019 IHS Markit. All rights reserved. 13 30 January 2019 Vendor readiness: ZTE as an example There are several vendors competing to offer the first 5G deployment. ZTE is the most active vendor that advocates and fully supports 5G, especially on standalone architecture. The company provides end-to-end 5G products and solutions and partnered with many operators and performed many field trials in commercial setups to verify the performance and maturity of 5G SA network architecture. For example, ZTE, in cooperation with China Mobile and Qualcomm, built an E2E 5G network on the 3.5GHz band. This trial put 3GPP release 15 standard into actual context. The trial verified many advanced 5G technologies, including the scalable OFDM numerology, new advanced channel coding and modulation schemes, and the low-latency self-contained slot structure. ZTE also partnered with Orange to test the E2E 5G SA network and demonstrate the validity of E2E network slicing and low latency. Results achieved by ZTE and its partners in field trials includes two network setup scenarios: “network setup one” and “network setup two”, both of which are detailed below. - Network setup one: Co-sited 1.8GHz FDD LTE and 3.5GHz 5G NR. The test involved 17 test points on two floors in the test building, including good, medium, and bad points of coverage. The comparison results show that the 3.5GHz NR uplink rate of all 17 test points is better than 1.8GHz LTE, and the 3.5GHz NR uplink rate of 16 test points has more than 100% performance gain compared to 1.8GHz FDD LTE. Exhibit 10 Field comparison between 1.8GHz FDD LTE and 3.5GHz 5G NR uplink coverage Source: IHS Markit 2019 IHS Markit In the outdoor long-range driving test for the normal test route, 99.7% of the test points of 3.5GHz uplink resulted in better throughput, and most test points have a gain of more than 100%. In the extreme long-range test route, the 3.5GHz NR upstream throughput of the 97.3% test point is better than the 1.8GHz FDD.IHS Markit | 5G best choice architecture: White Paper 2019 IHS Markit. All rights reserved. 14 30 January 2019 Exhibit 11 Field comparison between 1.8GHz FDD LTE and 3.5GHz 5G NR uplink throughput Source: IHS Markit 2019 IHS Markit - Network setup two: 2.6GHz TDD LTE and 3.5GHz 5G NR with Massive MIMO The indoor and outdoor drive test data shows that the 3.5GHz NR coverage is generally better than the 2.6GHz LTE, and the center-far field position has a significant gain. 5G Massive MIMO can also fully utilize its advantages in outdoor NLOS scenarios, verifying the networking capabilities of 3.5GHz NR. Exhibit 12 Field comparison between 2.6GHz TDD LTE and 3.5GHz 5G NR uplink coverage Source: IHS Markit 2019 IHS Markit In the synchronous broadcast channel coverage enhancement test, the 5G base station is deployed on a 45-meter landscape tower. Within a radial distance of 1.2 km, the coverage route covers the traversal normal level in the cell +-30, using a wide beam configuration and narrow beam configuration for test comparison. The results show that 5G can fully utilize the beamforming advantages of Massive MIMO. Exhibit 13 Field comparison between 2.6GHz TDD LTE and 3.5GHz 5G NR DL THP with Massive MIMO Source: IHS Markit 2019 IHS MarkitIHS Markit | 5G best choice architecture: White Paper 2019 IHS Markit. All rights reserved. 15 30 January 2019 Conclusion The analysis presented in this white paper of 5G SA versus NSA considered all important comparison aspects including investment, spectrum, and KPI requirements. From the investment perspective, operators are better off spending their money on 5G SA network. But looking at the wider picture, we find that SA deployment mode also achieves many other economic benefits such as increased sources of revenues and can enable an operator to capture significant market share in the new verticals. As for spectrum availability, operators will need, sooner or later, to acquire a spectrum band in the sub-6GHz range. Investing in other spectrum bands will only mean more delays for the eventual 5G SA setup. That is because operators will need to make sure its ROI is reached before putting new investment in the network. Finally, better network KPIs ensure that users receive a significant upgrade in the overall experience. To make this upgrade significant, operators must aim at improving not only data rates, but also network latency, capacity, and support for advanced data applications. All this is achieved by deploying an E2E 5G network. The best way for operators to adopt the right decision and make the network upgrade smooth is by performing rigorous testing and field trials for all 5G network components as well as newly introduced features such as E2E network slicing, beam forming, URLLC, and more. This report, which offers an independent assessment of 5G deployment methods, was produced as custom research at the request of ZTE. IHS Markit is exclusively responsible for this report and all the analysis and content contained herein. The analysis and metrics developed during this research represent the independent views of IHS MarkitIHS Markit | 5G best choice architecture: White Paper 2019 IHS Markit. All rights reserved. 16 30 January 2019 Contacts Stephane Teral Executive Director Research and Analysis, Mobile Infrastructure & Carrier Economics Disclaimer COPYRIGHT NOTICE AND DISCLAIMER 2018 IHS Markit. Reprinted with permission from IHS Markit. Content reproduced or redistributed with IHS Markit permission must display IHS Markit legal notices and attributions of authorship. 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