transmission network strategies(final)
DESCRIPTION
TRANSCRIPT
Shared Back Haul SolutionsNetwork Strategies
Monday 16th November 2009
Allan Oakman
Business Development Manager
1
The case for shared Back Haul
• Current environment
impacting strategies
• The response to reduce
costs
• The opportunity and
solutions
Agenda
2
Mobile Data Traffic Demand
Operators always find it difficult to prepare for demand tomorrow by rolling out capacity today; under
or overestimating demand has serious implications on operator’s bottom line
5.76
7.5
8.1 8.1
0
2
4
6
8
10
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009
Uniq
ue A
udie
nces (
mill
ions)
Growth of UK Mobile internet users
Source : Ofcom Communication Market Report 2009Source : Ofcom Predicting Areas of Spectrum Shortage 2009
Cellular Traffic Demand Growth (TeraBytes/ Hour)
MNO’s Network Challenges
• Prediction of demand for new services
• How much capacity should they build?
• Length of time it takes to upgrade and deploy a back haul network
• Availability of back haul spectrum may impact the strategies that can be deployed
30 TB
70 TB
110 TB
150 TB
190 TB
2009 2012 2015 2108 2021 2024
3
Existing Strategies and Options
• Site Share – towers and sites with separate base station equipment savings of ~ 40% against site Opex costs
• Site Share with RAN share – Recent announcement of merger between Orange UK and T-Mobile savings of more than €4 billion (£3.5 billion)
• Back Haul sharing using both self provide and leased service providers are being implemented
• Cost saving initiatives are dependent on consolidation partnering agreements
• Driving down cost base associated with suppliers will provide limited benefits
• Consolidation is creating uncertainties
Operators have exploited obvious cost reduction strategies through shared network models based on
consolidation of infrastructure. Innovative solutions previously considered unacceptable are now
being considered
Core
MNO1
RNC/BSC
Core
MNO2
Shared RAN and backhaul
Separate Core
MNO1
MNO2
MNO1
MNO2
4
Shareable Back Haul – leased services
• Typical product in UK assumes delivery by fibre based on incremental bandwidth supporting TDM, ATM
and Ethernet
– Synchronisation typically provided by discreet E1
– Zero contention to defined bandwidth threshold
– Typical Services assume 10Mb, 30Mb and 60Mb
• Current leased services utilising Microwave may require additional connection charges to cater for 3rd
party MW dish rental and cost of hardware changes to support Ethernet based network solutions
• Typical architecture assumes network would require ~ 45% of sites served by MW due to lack of available
fibre with aggregation at fibre POP for 2nd mile connection
Access NW
DSLAM
TDM/Ethernet using xDSL
TDM/Ethernet over Fibre
Traditional
Leased Service Provider
TDM/Ethernet over Radio
EP
C
MNO fibre network
Self Provide MW Leased Services
The extent of leased services varies by MNO strategy but typically for 3G and future LTE ~ 55% of
network connectivity is forecast to be delivered by leased services. This is likely to increase.
5
Synergies and Optimised Cost Reductions
• Shared services on common sites
provide opportunities in the following
areas:
– Site rental
– Antenna Sharing
– RAN sharing
– Back Haul sharing
• Providers capable of delivering
aggregated savings offer greatest
potential and benefit to MNO’s
• Back Haul sharing is only feasible where
both service provider and customer
requirements are satisfied
– Contention
– Disparate QoS capabilities
– Scale & Growth potential
– Commercially attractive
• Architectures will involve use of MW and
associated Opex costs
Operators are examining cost saving initiatives based on individual Opex sectors. The value of
grouping multiple sectors & initiatives under a single service provider will increase due to synergies
Site Infrastructure
Provider
Base Station
Vendor
Outsourced
Managed Svc
Provider
Back Haul
Services
Base Station
Vendor
Outsourced
Managed Svc
Provider
Site Infrastructure
Provider
Back Haul
Services
Site Infrastructure
Provider
Base Station
Vendor
Outsourced
Managed Svc
Provider
Back Haul
Services
Value
New Service Propositions
6
Shared Back Haul potential
A shared transmission network can potentially deliver > 30% cost savings per operator but can be
enhanced where 3rd party site providers provide the service.
Co
st
pe
r sh
are
r
Number of shares
1 2 3 4 5
Neutral host transmission network Independent transmission network
Cost savings of circa 30% if two operators share
transmission
• Back haul networks are a mixture of self
provide MW and leased services
• Leased service providers often limit
service to a single MNO/Entity
• Prediction of demand for new services split
across geographic locations is not clear
• Uncertainty of bandwidth demand is
impacting upgrade strategies associated
with upgrading legacy networks
• Implementation of network upgrades take longer than expected and impact both
customer experience and costs
• Latest generation MW can compete with
fibre service offerings but spectrum
availability & costs are problematic*
* Estimated to ~ 400Mbp
MNO’s Network Challenges
Delivery by MW may be limited by licensed
spectrum but can be managed through use
of hybrid architectures
Constraints
7
Use of Flexible Leased Services
Key Advantages of Flexible Network Outsourcing Solutions
• Predictable cost to MNO’s without need for large scale Capex programmes
• SLA’s/ QoS capable of managing real and non real time traffic tailored to MNO requirements
• MNO’s need not worry about Network/Technology where service provider guarantees performance
• Options to consider extend lifecycle legacy networks through gradual migration onto leased services
• New options to provide both permanent and temporary network connectivity solutions
• Providers who own spectrum can provide an alternative managed service proposition to traditional providers
XLegacy TDM P
DH Link
Logical Overlay Point to MultipointPoint to Point
8
Integrating Point to Point/Multipoint Solutions
• Developed network Back Haul strategies tend to use a mix of PTP and fibre based solutions
• The deployment of PMP solutions is inhibited by the availability of licensed spectrum or risks associated with using unlicensed spectrum
– WiMax options on Back Haul may provide an additional alternative
– Lack of capacity is considered to be a problem but capacities of 250Mb –600Mb per sector are achievable
• PMP solutions are capable of integrating PtP within the same platform, extending range and service options
• Arqiva owns suitable spectrum and sites and is well placed to offer hybrid solutions
• LTE PMP Backhaul solution for London:
• 145 Cell sites – 30Mbps (Mean)
• 8 Hub sites (4x28MHz)
Source: Cambridge Broadband
9
Use of Optimised Bandwidth on Leased Services
• Source: Cambridge Broadband
• MNO Self Provide networks dimensioned to assumed growth for future use
• Bandwidth and Opex related spectrum fixed limits scope for optimisation of costs relative to service
• Managed service provider has a reduced cost base through aggregation and optimisation to ensure PCR and
SLA’s are achieved.
• New Managed services can provide mix of guaranteed + best effort within defined QoS class across multiple
customers
• Increased competition between service providers benefiting MNO’s
• Customer self provide provision
bandwidth x Mbps and associated
opex costs. Utilisation < 100%
• Managed service provider
dimensions total bandwidth to
target customers’ PCR
• Actual aggregated traffic levels
typically below sum of customer
PCR
• Statically multiplex gain over managed service provider network
10
Managing Disparate Service Requirements
Technology Impacting Strategies
• Adaptive Modulation and increased spectral
efficiencies providing increased bandwidth on
MW back haul
• Ability to use both PtP and PtMP overlay
solutions using service provider spectrum
• Transmission optimisation techniques
increasing overall customer experience
• Reduced costs to provider are passed on to
customers with low cost per Mb
Management & Control
• Each customer has unique SLA and QoS
capable of being managed within a total
bandwidth domain
• Compliance and reporting capabilities through
NMS on a per link basis and/or network
• Use of VLAN and QoS parameters to
discriminate and manage traffic flows
• Capable of hand off to 2nd mile service provider
or MNO fibre/exchange aggregation point
Managed back haul services are changing with increased interest by MNOs’ in aggregating
benefits and disparate savings associated with Back Haul and site related costs.
• Move from traditional approaches to flexible wider ranging managed services will be critical in achieving
cost reduction across the sector. A growth of more cost effective solutions will deliver enhanced savings
• Migration to a flat I.P based network can be achieved including the provision of optimised back haul for legacy networks
Service Solution
11
Summary
• Delays associated with network consolidation will lead to poor customer experience through back haul bottlenecks
• A new flexible managed service solution will support network growth
• Grouped cost reduction strategies are most effective
• Cost savings are most likely to be achieved through innovative Back Haul strategies
• Legacy infrastructure can have an extended life cycle
• Hybrid solutions and managed services will resolve Back Haul bottlenecks
13