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Building a 4G Smart Grid In Rural America

Dr. Mo Shakouri

Corp Vice President

12 years of proven experience

All products are RUS certified and “Buy American” approved

Focus on Rural America

Alvarion helps accelerate Rural Innovation byenabling affordable fixed and mobile broadband services

Our 4G Customers Provide Differentiating Services to Rural America

Wireless broadband services for residential and business

customers across 12 states in midwest and western US

Broadband wireless services to consumers, businesses, educational,

healthcare, and public safety in 15 underserved markets across the USA

Bringing affordable high speed internet access and digital phone service

to un-served and underserved markets in the southeast US

4G services to un-served and underserved customers across 17

states in rural America. Stimulate local development for over 546

rural communities.

Why do we Need 4G for the Rural SmartGrid WAN?

• WiMAX today, LTE tomorrow• 5 - 8 miles coverage• 25-45 Mbps capacity• Flat All-IP network

• Low Latency• Utility applications that demand sub 100ms latency• Real-time consumption measurement by the utility call center

• QoS• Allow real-time activation of critical DA devices• Voice & Data applications

• Mobility• Line truck crews connectivity to Smart Grid applications

4G Wireless Architecture for Rural Smart Grid

Platform options Carrier-class WiMAX 802.16e certified platform Wide range of frequencies (2.X GHz, 3.X GHz…) Data, Voice and Video – Fixed & Mobile Security: AES128, NERC-CIP

Deployment options Macro and all-outdoor Micro BST Outdoor remote RF heads Scalable platform with up to 6 sectors

Coverage & Capacity Optimized air link coverage and capacity 2nd/4th order diversity, MIMO and Beamforming

Performance <100MSec roundtrip configuration QoS levels for different applications

4G Requirements for Rural Smart Grid Key Attributes Key Attributes

Private 4G vs. Commercial Infrastructure

Why Private Networks for Rural Smart Grid

Commercial Operators can’t guarantee QoS

Commercial Operators provide limited Coverage

SPG is Mission Critical not Commercial

Ability to add applications- Not a point fix solution

“ …in the future, most utilities will rely as much, if not more, on private, internal networks that can be built and maintained to their standards” [UTC Report January 2009]

Business Case Analysis for 4G Rural Smart Grid

• Use business case tools to analyze and understand the key technology and financial trade offs for an rural utility’s particular deployment needs

• Examine trade offs for network deployment approach; build your own network vs. partner with existing operator

• Analyze technical deployment issues; cost differences with manufacturers, different architecture approaches, impact of additional services

• Analyze financial trade offs; understand payback scenarios, maximize returns

• Case studies using the WiROI business case tool Dashboard GUI for Sensitivity Analysis and “What If” Scenarios to maximize a rural smart grid deployment

The WiROI™ Tool demo is available free at: www.wireless2020.com

Comparison Build your Own Network vs, Lease From Broadband Wireless Operator

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 $-

$5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000

Total Cost for Build vs. Lease

Total Costs for Smart Grid Lease OptionTotal Costs for Smart Grid Build Option

• Example of Large Rural Deployment; estimate 40K sq km of coverage area

• Total Cost over 10 Years• Lease Option- $203M• Build Option- $154M

• Build Option requires CapEx to complete the network in first two years

• Lease Option requires higher OpEx continuing through out 10 year period

• Payback crossover estimate Year 5-6.

Additional Benefits for owning network• Coverage where it is needed• Other internal and external service when network is in place

• Communication network for distribution automation and demand response• Service vehicle broadband communication• Long term value of network asset