Mobile Broadband CAPEX cut by 40 percent as TeliaSonera Finland takes up Direct Tunnel

Foresight, skill and excellence in execution brought significant CAPEX savings and helped a leading provider respond to rapidly growing mobile broadband demand. The project demonstrated how seamless teamwork and timely action can launch critical new technologies on a tight schedule and budget.

 

“We cut CAPEX by 40 percent and freed up 90 percent of capacity.”
 
Olavi Koistinen
Vice President
Products & Production
TeliaSonera Finland

The right action at the right time
Often, the best cases are those solved in advance. So is the case with TeliaSonera Finland. As flat rate mobile broadband had started to pick up in Finland, the team knew the pace would only intensify. It was evident that throughput capacity would be nearing its limits by December 2008.

Faced with finding a solution to handle massively growing throughput the team knew more than the usual solution was called for. In evaluating the alternatives, the TeliaSonera Finland and Nokia Siemens Networks teams saw their benefits overlap.

“Our cooperation proves how the right team really can reach goals that would seem impossible on paper. We are extremely satisfied with Nokia Siemens Networks’ efforts in reaching the tight five-month timeframe.”
 
Kirsi Kummunmäki
Head of Direct Tunnel project
Products & Production
TeliaSonera Finland

TeliaSonera Finland had a fairly easy choice to make. Instead of investing heavily in new hardware, they would activate the Direct Tunnel software and implement a flat architecture for data – taking a first step towards Long Term Evolution (LTE).

CAPEX cut by 40 percent, 90 percent of throughput capacity freed
Up until the decision was made, the standard choice had been investing in further SGSN hardware. Acting on Nokia Siemens Networks’ advice, the decision to opt for a Direct Tunnel solution in favor of the conventional two-tunnel SGSN/GGSN was made.

Challenges

  • Matching the dramatic increase in data traffic of flat rate mobile broadband
  • Increasing network capacity without the heavy investments of adding SGSNs
  • Critical timeline due to heavy use of mobile broadband, leading to slowing down of the service

With Direct Tunnel, data packets between the IP-based internet and the WCDMA network would be tunneled directly from the RNCs to the GGSNs. The SGSN would only establish the connection and handle location and charging-related tasks – and would no longer handle data traffic between the RNCs and GGSNs.

The main benefits are the CAPEX and capacity savings, which during a two-year period amount to 40 percent. On the technical side, fully 90 percent of throughput capacity was freed up by bypassing the SGSN with the Direct Tunnel solution. These benefits would not have materialized if the choice had been to purchase further SGSN units.

Success in just five months
The timetable was challenging, with little to no room for errors. The progress from testbed to pilot was rapid, taking just over a month. Due to TeliaSonera Finland’s high-grade telecom expertise they did most of the planning and configuration, which Nokia Siemens Networks matched with timely, insightful and accurate support.

 

Solution

  • Software-based Direct Tunnel solution
  • Dramatic increase in network efficiency by bypassing the SGSNs
  • Cost-effective capacity upgrade without hardware investments
  • Competent and fast technical support ensured critical ontime delivery

The pilot proved very valuable to both parties. The overall experience was very positive, with mutual trust and thoroughness being the keywords. This mutual commitment was instrumental to carrying the project to launch in just five months.

As Kirsi Kummunmäki, the head of the Direct Tunnel project at TeliaSonera Finland, notes: “Our cooperation proves how the right team really can reach goals that would seem impossible on paper. It’s not just the technology, capacity or CAPEX savings, it’s also the great teamwork that one remembers afterwards.”

Benefits

  • 40% cost savings during first two years compared to SGSN hardware investment
  • Unlimited throughput capacity, 90% of SGSN throughput capacity freed up with Direct Tunnel
  • Continued high-quality mobile data services both for consumers and business customers
  • Ability to meet planned subscriber growth targets
  • Flexibility to adapt quickly to changing capacity requirements
  • Flexibility to handle flat rate customers with better service, at lower cost
  • Long term-solution enables flat architecture and takes a step towards LTE

Ready for mobile broadband growth
TeliaSonera Finland is known as a high-quality mobile broadband provider for consumers and businesses and the Direct Tunnel solution helps them keep this strategic advantage on the Finnish market. And with the new flat network architecture, the first key move to LTE is already taken. 

The fact that TeliaSonera Finland was able to answer the current huge growth in mobile broadband demand through prior planning bodes well for the future. Now with Direct Tunnel, the capacity for growth is far bigger. “We see rapid near-future growth in the form of integrated 3G laptops, and this is the solution that enables us to flexibly match market growth and change” says Kummunmäki.“

The fact that we are capable of answering the heavy demand can be attributed having a logical strategy of moving towards LTE”, states Olavi Koistinen, Vice President, Products & Production Finland.

And, as Kummunmäki further confirms: “We are extremely satisfied with the commitment, teamwork and knowledge of the Nokia Siemens Networks team. It very much matched the needs of a time-critical project.”

The cooperation continues strongly with further projects using Nokia Siemens Networks solutions and technologies.