managed transmission - an alternative approach to delivering backhaul
TRANSCRIPT
IM2442.5
An introduction to Arqiva Wireless Access
Managed Transmission –
An alternative approach to delivering backhaul
Allan OakmanBusiness Development ManagerTransmission Networks for Mobile Operators
May 2010
▌2 Transport Networks for Mobile Operators: May 2010
Powering Communications
2,300 employees based in locations across the UK and IrelandTurnover of c. £800m pa
Owned by consortium of Canadian and Australian investors
Wireless Access Terrestrial Broadcast Satellite & Media
•
UK’s largest independent site provider
•
16,000 marketable sites
•
Provider of design, build and installation services, and backhaul
•
Support services to ‘blue light’
and other public sector organisations
•
Private Mobile Radio networks and services
•
Mobile data solutions
•
Delivering services to 98.5% of UK households
•
Transmission for all UK terrestrial TV channels (BBC, ITV, C4, C5)
•
Management Digital Switchover (DSO) technical programme
•
Transmission for all BBC and circa 300 national, regional and local commercial radio services on AM, FM, and DAB
•
Founder shareholder of Freeview
•
Launch of VoD
service SeeSaw
•
Scale and worldwide footprint
•
100+ earth stations at 10 teleports in UK, US and France
•
Services to Broadcast, Media & Enterprise
•
Play-out services, Outside Broadcast
•
Occasional Use for Sports & News
•
Uplinking
of over 400 channels worldwide
•
Carrier & Enterprise connectivity
▌3 Transport Networks for Mobile Operators: May 2010
The case for Managed Transmission
Current environment forcing tough decisions on back haul investmentThe response -
a changed approach? The benefits of managed back haul solutions
Summary
▌4 Transport Networks for Mobile Operators: May 2010
Mobile Data Traffic Demand
Operators considering future demand; under or overestimating demand has serious financial implications
5.76
7.58.1 8.1
0
2
4
6
8
10
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009
Uni
que
Aud
ienc
es (m
illio
ns)
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 be deployed?
•
Length of time it takes to upgrade and deploy a back haul network –
takes longer and is expensive
•
Availability of licensed spectrum impacting deployment strategies –
is ownership of spectrum a strategic imperative?
30 TB
70 TB
110 TB
150 TB
190 TB
2009 2012 2015 2108 2021 2024
▌5 Transport Networks for Mobile Operators: May 2010
Existing Strategies and Options
Site ShareSite Share with RAN share Shared Back Haul
BUT……………………..
Cost saving initiatives are dependent on consolidationDriving down cost base with suppliers will provide limited benefitsNetwork consolidation is creating challenges in coverage and capacity terms
Operators have exploited cost reduction strategies through shared network models based on consolidation of infrastructure. Innovative solutions previously considered unacceptable are now being considered
CoreMNO1
RNC/BSC
CoreMNO2
Shared RAN and backhaul
Separate Core
MNO1
MNO2
MNO1
MNO2
▌6 Transport Networks for Mobile Operators: May 2010
Shareable Back Haul – Managed services
Typical product in UK assumes delivery by fibre, based on incremental bandwidth supporting TDM, ATM and Ethernet
SynchronisationZero contentionTypical Services 10Mb, 30Mb and 60Mb
Managed services utilising Microwave may require additional connection chargesTypical architecture assumes network would require ~ 30% -40% of sites served by MW with aggregation at fibre POP for 2nd mile connection
The use of Managed services varies; a significant proportion of network connectivity may be delivered by Managed Services.
DSLAM
TDM/Ethernet using xDSL
TDM/Ethernet over Fibre
TraditionalLeased Service Provider
TDM/Ethernet over Radio
Core
MNO fibre network
Self Provide Network
▌7 Transport Networks for Mobile Operators: May 2010
Synergies and Optimised Cost Reductions
Shared services on common sites provide opportunities:
Site rentalAntenna SharingRAN sharingBack Haul sharing
Providers capable of delivering aggregated savings offer greatest potential
Back Haul sharing is feasibleContentionDisparate QoS capabilitiesScale & Growth potentialCommercially attractive
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
New Service Propositions
Base StationVendor
OutsourcedManaged Svc
Provider
Site InfrastructureProvider
Base StationVendor
OutsourcedManaged Svc
Provider
Back HaulServices
Site InfrastructureProvider
Back HaulServices
Value
Partnership Option
▌8 Transport Networks for Mobile Operators: May 2010
Shared Managed Back Haul potential
A shared transmission network can deliver ~ 30% cost savings per operator but can be enhanced where site providers provide the service.
•
Migration of existing managed service contracts to new flexible
•
Demand for bandwidth varies across geographic locations
•
Uncertainty of bandwidth demand is impacting upgrade strategies
•
Implementation of network upgrades take longer than expected
•
Latest generation MW can compete with fibre service offerings but there is a limit
•
Spectrum availability and migration into unlicensed
MNO’s Network Challenges
Delivery by MW may be limited to use of licensed spectrum
Constraints
Cos
t per
sha
rer
Number of shares1 2 3 4 5
Neutral host transmission network Independent transmission network
Cost savings of circa 30% if two operators share transmission
▌9 Transport Networks for Mobile Operators: May 2010
Service Solutions: Logical Architecture & Technology
Point to Multipoint - SectorPoint to Point
Managed Services across the access layer based on point-to-point (PtP) or point-to-multi-point (PMP) microwave technology.
Link
Link
Connection
Ethernet Only
WiFi
EthernetInternet
Corporate Customers with in building solutions
E1 and Ethernet
2G
3G
PMP Hub Site
Aggregation
Point
MNO POP for onward routing to RNC or WANManaged Service Provider Core
2G
3G
•
Data Offload?
▌10 Transport Networks for Mobile Operators: May 2010
Integrating Point to Point/Multipoint Solutions
Developed network Back Haul strategies tend to use a mix of PTP and fibre based solutionsThe deployment of PMP solutions is impacted by available spectrum or risks associated with using unlicensed spectrumPMP solutions are capable of integration with PtP solutions
•
LTE PMP Backhaul solution for London:
•
145 Cell sites –
30Mbps (Mean)
•
8 Hub sites (4x28MHz)Source: Cambridge Broadband
▌11 Transport Networks for Mobile Operators: May 2010
Managing New Service Requirements
Alternate Managed back haul services must offer increased benefits associated with different operational and service requirements.
•
Move from traditional approaches to flexible wider ranging managed services will deliver enhanced cost savings
•
Operational constraints associated with service delivery can be enhanced with temporary traffic alleviation services
•
Tactical managed services
•
Migration to I.P based networks can be achieved including optimised back haul for legacy networks
•
Tactical solutions can provide an opportunity to extend the life of existing infrastructure
▌12 Transport Networks for Mobile Operators: May 2010
Economics of Managed Transmission
Managed Transmission provides options to remove the upfront Capex requirement of upgrading existing network while keeping Opex comparable to a fixed line
These numbers are based on the TCO of theoretical 2,000 site network
•Fixed line: Managed Services provide end to end solution with fixed cost
•Self Provide: MNOs self provide can be a cheaper option than fixed line.
•Alternative Managed Transmission: Flexible solutions with low start up cost
-
£10.0 m
£20.0 m
£30.0 m
£40.0 m
£50.0 m
£60.0 m
£70.0 m
£80.0 m
£90.0 m
Year 1 Year 2 Year 3 Year 4 Year 5
Self Provide MW
MW -
Managed Transmission
Fixed Line
TCO
▌13 Transport Networks for Mobile Operators: May 2010
Managed Transmission: Tactical back haul solutions
Managed tactical transmission solutions can deliver ~ 20% of TCO savings over temporary Self Provide MW links
•
Network consolidation and data growth increasing demand for flexible back haul solutions
•
Overlay PMP solution provides an alternative back haul solution
•
Tactical use of temporary links can provide a significant benefit
•Data offload
•Business Continuity •Network consolidation
£1 m
£2 m
£3 m
£4 m
£5 m
£6 m
Year 1 Year 2 Year 3 Year 4 Year 5
Self Provide MW
MW -
Managed Transmission
TCO
▌14 Transport Networks for Mobile Operators: May 2010
Summary
A new flexible managed transmission service will support network growthTactical use of a managed transmission service is a viable alternative to traditional approachesAdoption of a managed transmission service will provide cost savingsThe key enabler to delivering this type of service will be site infrastructure and access to licensed spectrum.
▌15 Transport Networks for Mobile Operators: May 2010
[email protected]://uk.linkedin.com/in/allanoakman
Thank you