wireless – it’s complicated! by albert kangas
TRANSCRIPT
March 12th, 2015
NewCore Wireless is owned mainly
by independent phone companies.
We are based in St. Cloud MN and
provide hosted switching services to
small to medium sized operators
RAN Network – over 300 hosted sites
in 11 different states
Experienced senior management
Cellular 2000 Network – 1988-2005
• 40 sites, 40,000 subs
Sprint Affiliate Network – 1999-2007
• 400 sites, 160,000 subs
Who is NewCore Wireless
2
Network Elements NewCore owns and operates the core switching elements of
a wireless network “Cloud switching in St. Cloud” Our partners operate their own towers and own their own
subscribers Some partners use the 3G and LTE networks for fixed
broadband Some use 3G and LTE networks for 100% cell phone
(mobility) Some use as a hybrid to serve both mobility and fixed
broadband Other partners operate flat networks such as Motorola and
Ubiquiti and NewCore provides managed ISP services along with Engineering to support those networks
Partner Spectrum
4
Let’s Simplify This Acronyms
This industry is full of them but don’t let that get you
distracted or confused
Wireless people are usually multi-taskers, and it is easier to use acronyms to save time.
Ask them to explain what these mean; sometimes they forget that not everyone talks their language.
It’s Just Communications
Whether it is broadband over copper, fiber to the premise, hybrid coax or wireless, it accomplishes the same thing - connecting people and things
Wireless Advantages
Mobility
Faster deployment compared to fiber or copper
Lower cost – usually
Geographic boundaries are less constrictive
Option for licensed or unlicensed spectrum
Ecosystem is huge for some wireless technologies
Important Things to Remember The lower the frequency, the greater distance it will travel
Ex. 900 MHz will travel farther than 2.4 GHz
Capacity is dictated by the amount of spectrum, the technology used and amount of power at the radio (there are more variables, but these are the big ones)
Radio Frequencies are absorbed by all materials and the more “clutter” there is, the less the radio frequencies will be able to pass through
Frequency Division Duplex (FDD) and Time Division Duplex (TDD) FDD technology uses separate transmit and receive “paired”
frequencies for duplex transmission TDD technology uses a one block of spectrum for both and uses time
spacing to provide the duplex transmission
Impact of Terrain and Clutter on Radio Frequencies
Trees have a significant impact on propagation of radio frequencies and the higher the frequency the more impact
Buildings have a significant impact on propagation (i.e.) steel siding, concrete) thus the reason your cell phones don’t always work indoors
Hilly and mountainous areas have a negative impact on radio frequencies
Gas-filled windows will prevent radio frequencies from passing through
Types of Spectrum
Unlicensed examples
900 MHz, 2.4 GHz, 1900 MHz DECT
Licensed examples
850 MHz Cellular, 1900 MHz PCS
11 GHz point to point
Pseudo Licensed example
3.65 GHz
Unlicensed Spectrum 2.450 GHz
Traditional Wi-Fi use
Point-to-Point Microwave
Cordless Phones
Wireless Internet
Many uses worldwide
Cameras
Unlicensed Spectrum 900 MHz
Cordless Phones
Wireless Internet
John Deere and Case IH assisted GPS network
SCADA or short range telemetry
Baby Monitors
Cameras
Unlicensed Spectrum 5 GHz band
Wireless Internet
Point-to-Point microwave
Traditional Wi-Fi
Tier 1 Operators adding LTE technology
Licensed Spectrum – The Facts The FCC allocates all of the spectrum; spectrum that is
licensed is made available through auctions, lotteries, direct assignment, registration and other means.
Radio stations, TV stations, cellular providers all use spectrum assigned by the FCC
Some spectrum, such as point-to-point microwave, is not auctioned and is obtained through registration
The FCC started auctions after the cellular networks started growing, realizing that significant revenue could be attained
The most recent auction generated $41 Billion
Smaller operators are being forced out of the licensed spectrum opportunities
Technologies First Cellular Systems in 1980’s
Analog technology
One voice call used 30 KHz of spectrum
Channelized network where different frequencies are used for each channel or call
Digital Technologies are deployed in the US
CDMA technology
1.25 MHz channel supported up to 100 calls plus data
All sites and sectors used the same frequency
TDMA technology
30 KHz channel divided up into three channels
still channelized where different sites used different channels
Technologies (continued) In most of the world outside of the US, carriers
deployed GSM for the digital standard
200 KHz channels and 8 users per channel
Still channelized and different sites and sectors had different channels
In the US, most operators that deployed TDMA, converted to GSM by 1999
Technologies (continued) Data capabilities on wireless evolved and new technologies were added
CDMA added EVDO
3.1 Mbps per sector
All sites and sectors are on the same channel
GSM added HSPA
14.4 Mbps per sector
All sites and sectors are on the same channel
WiMax and LTE were evaluated by all carriers for the next evolution of data
LTE is selected by most major carriers as the mobile data technology of the future
Scale is Critical Wireless technologies success are largely impacted by
the adoption rate and the ability to drive down costs by adding scale
Example: Wi-Fi routers are relatively low cost due to the global scale
GSM has global scale and that is why GSM devices are usually lower cost than CDMA as CDMA is used only in the US and portions of Asia
Vendors will not produce equipment without millions of units committed to it
What scale can Wireless Internet achieve on the “low cost” spectrum
WiMax was titled the “most disruptive technology”, but because it wasn’t adopted by the Tier 1 carriers it has slowly started to be replaced by other technologies Cost per subscriber module is very high
Proprietary technology, such as Motorola’s or Ubiquiti’s own technology, usually result in lower costs; the systems are not interchangeable Cost per subscriber module is usually low
LTE is now being made available on unlicensed 5 GHz bands, as well as 3.65 GHz band
Partner together to share knowledge and create a Buying Group
What is Driving Broadband Needs? Not long ago, entire companies operated on a 1.5 Mbps
circuit to the internet
Streaming video has changed broadband
Today nearly 60% of the global broadband consumption is from one company and application - Netflix
Non-entertainment streaming video protocols are driving the bandwidth needs, as well
Broadband utilization spans all generations and cultures and is considered critical infrastructure
Engineering the System
Today, each broadband user contributes approximately 200 Kbps of usage to the busy hour calculation.
An LTE system with 20 MHz of spectrum can deliver an aggregate capacity of approximately 40 Mbps per sector.
That sector at today’s usage requirements should handle approximately 200 broadband users but in reality, 150 users is more accurate
Spectrum quantity and quality is critical for a wireless system to be successful
Using unlicensed spectrum or Pseudo licensed spectrum in a populated area where other competitors are using the same spectrum is very challenging
In rural areas or areas where other operators are not using unlicensed spectrum, a wireless broadband operator can be very successful
Subscriber Installation The cost per subscriber can be impacted by the type of
device used and if it is an outdoor installation or indoor installation
Higher frequencies impacted by building materials usually require an outdoor installation
Indoor installations usually use a lower cost device, and the labor is greatly reduced or eliminated
Technologies require the best possible signal level and quality to be the most efficient
Some customers should not be served due to the negative impact on the overall system
Base Station Trends Base Stations or Access Points are being installed at or
near the antennas to reduce signal loss in the coax
Tier 1 carriers are deploying this strategy where once only Wireless Internet Service Providers utilized this practice
Equipment is becoming more reliable, and it is changing how networks are deployed
Distributed antenna systems and in-building solutions are more prevalent
Each tower location is typically served with 100 Mbps service either by fiber or wireless backhaul
Summary Wireless is a great solution to provide broadband
Streaming video has impacted all internet service providers capacity needs, but wireless is impacted more negatively due to the finite resources and the cost of spectrum
Rural areas served by the larger national carriers will require Wireless Internet Service Providers to fill the void left by their inability to serve the low populated areas
A mix of fiber, copper, coax and wireless will need to be utilized to meet the demand in our rural areas
Wireless cannot meet all of the needs we have, but it can be an important tool in the toolbox.
Capex and Opex Communications tower $145,000
3G/LTE/Commerical Equipment $40,000 to $60,000
Unlicensed base station equipment $200 to $20,000
Antennas, coax, installation $10,000 to $40,000
Option to Lease Tower
Average monthly tower rent $1,300
Leasing transport/backhaul $1,000
Revenue needs To support the operating expenses and recovering
capital, each site should generate at least $4,000 in revenue per month
Tower Ownership Build and own it if you can!
Enough said
