managing opex and capex in small cell backhaul

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Managing OPEX and CAPEXin small cell backhaulDr John Naylon, CTO, CBNL

Small Cells World Summit, 4 June 2013

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Today’s agenda

1. How to break the ‘backhaul barrier’

2. Choosing from the backhaul toolbox

3. A simple TCO model for small cell backhaul

4. Multipoint microwave

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How to break the ‘backhaul barrier’

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The ‘backhaul barrier’: understanding the perception

• Can I even get backhaul at all these funny locations?

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Conviction

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The ‘backhaul barrier’: understanding the perception

• Can I even get backhaul at all these funny locations?

• Most operators will deploy small cells to increase the QoE for the end user by increasing network capacity. Can I get enough backhaul capacity at all these locations?

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Conviction

Capacity

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The ‘backhaul barrier’: understanding the perception

• Can I even get backhaul at all these funny locations?

• Most operators will deploy small cells to increase the QoE for the end user by increasing network capacity. Can I get enough backhaul capacity at all these locations?

• Will I be able to deploy small cell sites en masse at 10% the cost of a macro site?

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Conviction

Capacity

Cost

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How to break the ‘backhaul barrier’: conviction

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Documents use cases, backhaul requirements and backhaul solutions (4 wired and 8 wireless)

Key messages:

• Backhaul is NOT a barrier to small cell deployment

• Many technically feasible solutions for small cell backhaul exist

• Total cost of ownership will dictate optimal solution

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How to break the ‘backhaul barrier’: capacity

How much backhaul capacity do I need for a small cell?

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1 10 100Backhaul traffic generated, Mbps (log scale)

Source: ngmn.org Small Cell Backhaul Requirements

See cbnl.com/bursty for more details

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How to break the ‘backhaul barrier’: capacity

Pragmatic backhaul for small cells uses wireless technology as an “on-ramp” for fibre

81% of operators said wireless was the primary backhaul option for the last mile to small cells Source: Infonetics

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Wireless• Great availability at

small cell locations

• Capacity depends on chosen frequency

Fibre• Availability at small cell

locations uncertain

• Capacity unlimited to all intents and purposes

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How to break the ‘backhaul barrier’: capacity and spectrum

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Source: Frequency Band Review for Fixed Wireless Service, Ofcom

Sub 6GHz:1.54 GHz for licensed and unlicensed, fixed & mobile,access and backhaul

Microwave:16.4GHz for terrestrial fixed links

millimetre wave18.3GHz

UnlicensedLight licensed

Link licenced (PTP)Area licensed (PMP)

Area licensedUnlicensed

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Choosing from the backhaul toolbox

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Choosing from the backhaul toolbox

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Solution Spectrum available

Capacity fit

TV Whitespace ~ 0.2 GHz* Poor

Satellite ~ 0.5 GHz* Poor

Sub-6GHz licensed 0.5 GHz Marginal

Sub-6GHz unlicensed 0.3 GHz Marginal

Microwave multipoint 6.7 GHz Good

Microwave PTP 9.6 GHz Good

60GHz mm-wave PTP 6.8 GHz Good

70-80GHz mm-wave PTP 9.5 GHz Good

* variable

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Choosing from the backhaul toolbox: capacity screening

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Solution Spectrum available

Capacity fit

TV Whitespace ~ 0.2 GHz* Poor

Satellite ~ 0.5 GHz* Poor

Sub-6GHz licensed 0.5 GHz Marginal

Sub-6GHz unlicensed 0.3 GHz Marginal

Microwave multipoint 6.7 GHz Good

Microwave PTP 9.6 GHz Good

60GHz mm-wave PTP 6.8 GHz Good

70-80GHz mm-wave PTP 9.5 GHz Good

* variable

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A simple TCO model for small cell backhaul

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A simple TCO model for small cell backhaul

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We use this model to compare the microwave and millimetre-wave PTP and PMP solutions

that pass the ‘capacity’ screening criterion

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TCO comparison: multipoint v point-to-point

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Multipoint microwave

Point-to-point microwave/mm-wave

Bandwidth dynamically shared between links

Statically provisioned bandwidth for each link

At hub, shared radio and antenna for all links

At hub, dedicated radios and antennas for each link

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Compare TCO to backhaul 5 small cells: equipment

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SC

PoP

SCSCSCSC

Assume hub is 2× price of small cell end

Each additional small cell needs only the remote end of the link

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cost

Unit of cost = 1 radio transceiver. Assumes PMP and PTP radios are equally priced, which is valid for microwave comparison. Millimetre wave radios are currently ~2× price of microwave radios.Source: Maravedis-Rethink, Wireless Backhaul Market from an Intermodal Perspective

SC

SC

PoP

SCPoP

SCPoP

PoP

SCPoP Each additional small cell

needs equipment at both ends of the link (for star or chain configurations)

1 link per small cell site

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cost

Multipoint microwave

Point-to-point microwave

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Compare TCO to backhaul 5 small cells: installation

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SC

PoP

SCSCSCSC

Assume hub is 2× price of small cell end

Each additional small cell needs only the remote end of the link

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cost

Each new link to a site needs two teams and simultaneous access to each end of the link for alignment.

Assume this is 3× price of sending one team to one site

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cost

Link

Link

Link

Link

Link

Unit of cost = 1 site installation

Multipoint microwave

Point-to-point microwave

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Compare TCO to backhaul 5 small cells: site rental & power

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SC

PoP

SCSCSCSC

Hub site may have higher rental or power consumption than small cell site

Single antenna at each small cell site

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cost

Unit of cost = 1 year’s site rental and power

SC

SC

PoP

SCPoP

SCPoP

PoP

SCPoP Rent is per antenna, and

power consumption per radio, so each additional link incurs another two units

1 link per small cell site

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cost

Multipoint microwave

Point-to-point microwave

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0 1 2 3 4 5 6 7 8 9 10 -

20,000

40,000

60,000

80,000

100,000

120,000

Small cells per backhaul hub

5 y

ea

r T

CO

, N

PV

5 Year TCO Comparison

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0 1 2 3 4 5 6 7 8 9 10 -

20,000

40,000

60,000

80,000

100,000

120,000

Small cells per backhaul hub

5 y

ea

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, N

PV

Conclusion— Microwave PMP can offer very significant TCO savings versus

microwave or (especially) millimetre wave PTP for small cell backhaul

— Spectrum rental and coordination costs are decisive

Consensus view is 3-5 small cells per macro in 5 year timeframe

PTP millimetre wavePTP microwaveMultipoint microwave

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Multipoint microwave

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VectaStar Metro – small cell backhaul solution

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Small cell multipoint microwave backhaul from the market leaders

• 600Mbps throughput

• 600µs mean round-trip latency

• SyncE, 1588v2 support

• 26GHz and 28GHz ETSI

Built on the established VectaStar platform

• Used by 7 of the 10 largest mobile operator groups in the world

• Deployed in 37 countries worldwide for 2G, 3G, 4G, Wi-Fi

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Summary• The backhaul barrier of ‘conviction’, ‘capacity’ & ‘cost’ –

has been broken

• Good end-user quality of experience requires much more backhaul capacity than there is low frequency backhaul spectrum

• Microwave and millimetre wave (PTP and multipoint), can all “do the job” for small cell backhaul

• Multipoint microwave for small cell tail links offers significant TCO savings through higher utilisation of equipment and spectrum

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Small cell backhaul: the big picture

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Pick up a copy of our new small cells white paper!

• Market progress• Deployment drivers• Styles of deployment• Backhaul requirements • Backhaul solution overview• Backhaul TCO analysis

Available from:

cbnl.com/smallcells