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Mobile backhauling shifts up a gear

May 2012

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Just so you know that we know what we are talking about!

• We are not a mobile operator, but we are the #1 fixed provider for the UK

• We are the market leader for UK mobile backhaul with over 13,000 ethernet

connections and over 78,000 via TDM

• Our ethernet product supports TDM, ATM & DE with a 99.95% availability

And we’re ready for LTE

• IP-VPN capable

• Timing - 1588 live with SyncE in Q3 12/13

• 6 Classes of Service

• Test data proving our network exceeds the LTE RTD & jitter requirements of LTE

• Cell access options of 100Mbps & 1Gbps with 10Gbps planned for 13/14, Switch

site at 1Gbps & 10Gbps readily available

• A cost model that detaches cellsite growth from the core

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But it’s not just about arteries, its about the capillaries

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• Small Cell Forum (SCF) has grown to 67 operator and 75 vendor members

• Backhaul at the capacity required with right economics is seen as one of the biggest

challenges to deployment of small cells.

• The Special Interest Group will extend the technical work carried out by NGMN Alliance

to :

• understand the deployment scenarios for small cells and scale of deployment

• appreciate the portfolio of backhaul solution available for each scenario

• provide recommendations and identify challenges with each

• The target output is an industry white paper providing insight into backhaul options for

small cells.

BT is chairing the backhaul Special Interest Group in the Small Cell Forum

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Small cells will drive the next evolution of backhaul

Rural Urban

Cost effective coverage in

marginal locations

Capacity where it’s needed

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A long way from East Garston…

• UK Government is providing £150m to deliver 2/3G voice coverage in rural „not-

spots‟

• LTE out of scope; sparse population and low device penetration

• 80,000 un-served premises

• Some main roads also included

• Procurement running until November 2012; build complete by March 2015

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• 15% of required macro sites in

England are in „beauty spots‟……

‘Macro only’ solutions can only cover 50,000 of the 80,000 target not-spots. A hybrid macro and small cell solution hits 70,000

• There‟s a good reason why there are no

macro‟s there!

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Beyond fibre: working with EverythingEverywhere, a shared rural LTE trial with 200 live mobile and fixed wireless customers

Slide 8

• Trial started in September 2011

• 11.6Mbps down 4.7Mbps up typical performance

• External antenna needed in only 20% of cases

• BT also trialling other radio solutions; notably TVWS

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So what does that mean for rural backhaul ?

• Small cells make economic sense

and environmental sense; shared

small cells even more-so

• Leverage fibre deployment, where

available (more later…)

• Microwave will be critical (1000

connections just for the

Government‟s £150m plan)

• BT has over 8,000 Microwave

links today

• P2MP radio solutions to connect

small cell clusters will be required

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Government action is also going to accelerate urban small cell thinking

• £150m state aid Urban Broadband Fund

• 20 cities will benefit; first ten already named

• 3 million will benefit from “wireless broadband”

• Initial requirements are fibre for inclusion and economic uplift

• Looking for operators to fund wireless uplift

• Leverage street furniture

• O2 and Westminster example

• Macro sites „getting harder to come by‟

• WiFi and 3/4G

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Small cells need to be exactly where the traffic hotspot is, NOT where your backhaul is….

Number of small cells

per 250m² ‘bucket’

Red 5

Yellow 4

Green 3

Blue 2

Violet 1

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We are leveraging BT’s £2.5bn investment in fibre for small cell backhaul

• FTTC – available today

• FTTP – available today

• FTTP On Demand will deliver up to 330Mbps and will pilot from June, available

from Spring 2013

• We‟ve requested FTTC/P terminated on „non-served premises‟ – street furniture to

you and me!

• Traffic from macro cells and small cells to be delivered via the same point.

• End to end service guaranteed for both types of cells.

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Comedy and small cells; its all about the timing….

Key to macro offload

• Fundamental for handovers

• Users moving through

“hotspots”

Timing less critical

• Limited handover

requirements

• Broader coverage – so

lower mobility

In-Band Timing

GPS

Macro Timing

?

?

?

?

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Technology risk: • Pico

• Femto „2.0‟

• DAS

Business model risk: • Outdoor WiFi

• Acceptability of shared solutions

• Anchor tenants

Local Authority income

from site and revenue

share

Challenges in urban deployment

Social inclusion and

economic uplift

benefits

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DAS

outdoor ?

Macro radio plan ‘down’

pico deployment

‘femto 2.0’ ubiquitous

outdoor deployment

Small cells are coming: the only question is which urban solution

(or combination of solutions) and when…

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In conclusion:

• Its not just about the last kilometre – the last 100m will be key

• Take the backhaul to your small cell, not your small cell to

your backhaul; radio

• Exploit fibre investment

• Focus on the price point