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Wi r e l e s s B a c k h a u l Optimization: A M ar a r k e t Wa i t i n g t o Happen Keith Mallinson EVP Research The Yankee Group
[email protected]
Backhaul Management An OpEx Reduction Opportunity
Agenda
Wireless market overview Evolving backhaul requirements Service provider business model evolution Impact of wireless backhaul on service provider OPEX Technology solutions for improving wireless backhaul efficiencies Conclusions and recommendations
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Backhaul Management An OpEx Reduction Opportunity
2 .5 G/3 G M i g r a t i o n : T e c h n o l o g y Dr i v en A c r o n ym Ch o w d e r “GSM “GSM migration migration path path ” ” 80% global market by 2007 GSM
IS-136 TDMA
GPRS
2001
2004
“CDMAOne “CDMAOne migration path” 18% 18% global global market market by by 2007 2007
/ 0 2 2 0 0 1 2 00 1 / 0 2
CDMAOne
iDEN Average Practical Data Rates (per user)
WCDMA or UMTS
EDGE
CDMA2000 1X
2001/02
WiDEN
2004
20-40kbps
2004
? 40 - 180kbps
CDMA2000 1x EV DO CDMA2000 1x EV DV 300-600kbps
Throughput estimates based on February 2004 commercial service offerings by U.S. carriers and confirmed by the Yankee Group as follows: •Sprint PCS claims 50-70 kbps average with peak speeds up to 144 kbps for CDMA2000 1X; •Verizon Wireless claims 40-60 kbps with bursts up to 144 kbps for CDMA2000 1X; •AT&T Wireless claims 25-40 kbps average for GPRS and 100-130 kbps for EDGE (bursts up to 200). 5
Backhaul Management An OpEx Reduction Opportunity
I m p l ic a t i o ns o f T e c h n ol o gy Ev o l u t i o n o n Wi r e l e s s B a c k h a u l Requirements
Wireless networks are becoming increasingly complex GSM/EDGE overlaid with WCDMA TDMA overlaid with GSM/EDGE TDMA overlaid with CDMA2000 GSM overlaid with CDMA2000 (e.g. China Unicom)
Wireless network capacity requirements are increasing Networks are becoming increasingly extensive to include macro, micro and pico-cells
6
Backhaul Management An OpEx Reduction Opportunity
Se r v i c e Pr o v i d e r B u s i n e s s Ev o l u t i o n — M at u r e M ar k e t s
Service providers have focused on rapid deployment and CAPEX minimization, with insufficient regard for OPEX
Transmission network design and optimization has been neglected Minimization of CAPEX has resulted inefficient designs from an OPEX perspective
Service providers in mature markets are becoming increasingly focused on OPEX For network overlays (e.g. WCDMA) OPEX management becomes more challenging
Service providers are paying a great deal of attention to the design and optimization of their transmission networks
Significant opportunities in mature markets for advanced transmission solutions 7
Backhaul Management An OpEx Reduction Opportunity
Se r v i c e Pr o v i d e r Op e r a t i o n a l Ex p e n d i t u r e s Cr e a t e Op p o r t u n i t i e s fo r B ac k h a u l 3%
6%
13%
15%
Total OPEX 29%
30% 34% Field Maintenance and Product Support Technical Personnel
43%
Site Rental 7%
Transmission Utilities
Technical Operations Customer Care Cost of Goods Sold Marketing Sales and Admin
Other
20% 8
Backhaul Management An OpEx Reduction Opportunity
L e a se d L i ne v e r su s M ic r o w a v e Transmission
Some operators use microwave transmission to reduce leased line expenses Microwave typically used by pure-play mobile operators in Europe Microwave rarely used in North America
10-15 percent of all transmission Consequence of tradition and focus towards lower CAPEX Difficult to transition because of existing lease obligations
Microwave used more extensively in emerging markets
Limited availability of robust landline infrastructure Leases are often particularly expensive
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Backhaul Management An OpEx Reduction Opportunity
Wi r e l e s s Se r v i c e Pr o v i d e r Business Analysis — Em e r g i ng Ma r k e t s
Greater focus towards minimizing both CAPEX and OPEX Benefit of green field (or near green-field) implementations Significant subscriber growth and deployment occurring Challenged by lack of supporting infrastructure (e.g. terrestrial transmission) Less “tradition” and greater receptivity to alternative network architectures
Emerging Markets represent a significant opportunity for advanced transmission solutions
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Backhaul Management An OpEx Reduction Opportunity
T e c h n o l o g y So l u t i o n s f o r Op t i m i zi n g T r a n s m i s s i o n GSM GSM
GSM
UMTS
UMTS
UMTS
Grooming Grooming Packetization
Independent transmission
Consolidated transmission
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Optimized transmission
Backhaul Management An OpEx Reduction Opportunity
B u s i n e s s Ca s e f o r B a c k h a u l
Average monthly price per T1/E1 is $500 in US, EUR600 in Europe Average cell site has between 1 and 2 T1/E1s Upgrades such as EDGE and WCDMA create demand additional T1/E1s Operators planning a network overlay (EDGE or WCDMA) can expect more than 30 percent savings in back haul costs
Number of sites Average T1/E1 per site (with overlay) Monthly lease cost per T1 Annual Lease Costs ($ million)
Before Optimization 10,000
After Optimization 10,000
2.75 500
1.925 500
165.00
115.50
Annual savings with Optimization ($ million)
49.50
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Backhaul Management An OpEx Reduction Opportunity
Co n c l u s i o n s a n d Recommendations
Wireless service providers business models are changing Network efficiency as opposed to speed of deployment becoming increasingly important Transmission networks in need of optimization solutions to reduce operational costs Service providers are retrofitting grooming and packetization solutions to optimize their transmission networks Expect more than 30 percent savings in transmission costs when optimization used for GSM/EDGE overlaid networks
13
Mobile Operator Considerations for Backhaul Deployment: Experience in Backhaul Opex Reduction Basilio Sadindi, Director of Operations & Keith Pitout, Technical Director
Celtel, DRC
[email protected] [email protected]
Backhaul Management An OpEx Reduction Opportunity
B a c k h a u l Op e x Re d u c t i o n DRC Experience with NMS AccessGate application
Celtel Network: ¾Currently 4 MSC’s, 5 BSC’s and 168 BTS sites ¾Celtel are owner of fixed backhaul MW network. ¾Completely Ericsson NSS and BSS network. ¾Currently using 24 VSAT links for remote BTS installations over a vast geographic area.
Initial trial on one VSAT link Expanded to two more. Experiencing up to 50% reduction on capacity required over VSAT.
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Backhaul Management An OpEx Reduction Opportunity
B a c k h a u l Op e x Re d u c t i o n Operational Experience
Only in service for a few months. No degradation of speech quality experienced GSM Fax and Data fully functional over the link. Easy to set up and Operate. Stable and reliable. Currently in process of expanding to another 7 links Expecting a total of $250 000 per month on VSAT costs. Considering application over Microwave links.
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Backhaul Management
B a c k h a u l Op e x Re d u c t i o n
An OpEx Reduction Opportunity
Application Example
E1 cable IP LAN Ethernet cable
3 E1 links (2 carry A.bis traffic)
Butembo Nord RBS
1 E1 link (backhaul)
Cell side AccessGate
1 E1 link (backhaul)
Satellite modem
Satellite modem
17
MSO side AccessGate
OAM Workstation with AccessView
3 E1 links (2 carry A.bis traffic)
BSC
Ericsson Expander solutions
Backhaul Management An OpEx Reduction Opportunity
What if the most cost-efficient alternative available comes at a price of 10.000 € per E1 per month?
Transmission 77.6%
What can be done? 19
Backhaul Management An OpEx Reduction Opportunity
St a n d a r d B SS RA N So l u t i o n
B sub
Circuit-Switched RBS/ BTS
Standard A”
BSC & Server
A sub
A+-interface Signaling /E1
MSC & Server
Standard A”
Standard A”
RBS/ BTS
Call routing of a PLMN-PSTN call: Via the BSC and MSC 16 kbps on the PCM Circuit-switched Abis Transmission TS allocated to every Basic Channel in TRU Std: 10 TRU per E1 or 8 TRU per T1 LAPD-C: +20–30% capacity/Abis LAPD-M: +30–50% capacity/Abis
RBS/ BTS A sub
RBS/ BTS
B sub
20
Backhaul Management An OpEx Reduction Opportunity
T h e L a ye r ed N e t w o r k A r c h i t e c t u r e !!
Each layer can grow independently
Control
End-user applications
Centralized location of servers reduces O&M cost Independent of transport technology
MSC
HLR
GMSC/Transit SG
Control
Connectivity
Same transport for all services Free choice of transmission technology Distributed MGws enables transmission savings Enables transport of coded voice Pooled media stream resources 21
SGSN
PSTN ISDN
Connectivity
WCDMA Access MGW GSM/ EDGE Access
GGSN
MGW Internet Intranet
Backhaul Management An OpEx Reduction Opportunity
Ot h e r T r a n s m i s s i o n -Sa v i n g Functionality 1) Bandwidth optimization Silent call suppression, 30–50% savings on CS Flexible Abis, up to 30% savings on packet switched AMR subrate switching, 50% savings on CS
2) IP Abis 30–50% lower cost per Mb over Abis (xDSL, Ethernet vs. E1/T1) Bandwidth optimization possible on top of this
3) Local switching
Additional 20–50% savings on top of bandwidth optimization
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Backhaul Management An OpEx Reduction Opportunity
T h e Si l e n t Ca l l Su p p r e s s i o n Solutions
Circuit-Switched
RBS/ BTS
Silent Call Supression Box
One box handles 8 E1 RBS/
A+-interface Signaling /E1
Standard A”
BSC & Server
MSC & Server
Saving: Discontinous transmission Saving up to 50% NW impact: HW: NMS AccessGate SW: BSS
Silent Call
BTS Supression Box
RBS/ BTS RBS/ BTS
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Backhaul Management An OpEx Reduction Opportunity
A MR Su b ra t e Sw i t c h i ng Circuit-Switched RBS/ BTS
A+-interface Signaling /E1
Standard A”
BSC & Server
MSC & Server
Standard A”
RBS/ k 1 6 S T
BTS
AMR subrate switching over Abis: Subs are ordered to AMR 7.15 kbps
Standard A” A
RBS/
B
BTS A sub
RBS/ BTS
AMR 7.15
B sub
AMR 7.15
24
Two subs can be squeezed into every 16kb Abis TS Savings: +50% on Abis AMR mobiles needed
Backhaul Management An OpEx Reduction Opportunity
T h e I P So l u t i o n Circuit-Switched RBS/ BTS
A+-interface Signaling /E1
Standard A”
BSC & Server
MSC & Server
IP Support
IP GSM Radio Access
RBS/ BTS RBS/
IP Support
Packet-Switched Abis Dimension transmission links based on peak traffic over link HW: IP switch card added SW: BSS
BTS IP Support
RBS/ BTS IP Support
25
Thank You
Wi r e l e s s B a c k h a u l Technologies
Backhaul Management An OpEx Reduction Opportunity
Wi r e l e s s B a c k h a u l T o d a y GSM N e t w o r k Ch a ra c t e r is t i c s
Large number of geographically-dispersed cell sites One or more E1/T1s per cell site — inefficiently utilized New technology deployments require additional, separate, E1/T1 facilities
BSC GSM/ GPRS/ EDGE CDMA
MSC
TRAU
E1/T1s x n
E1/T1s x n
E1/T1s x n
A.bis
A.ter
A interface
2G/3G Wireless Backhaul
TDMA UMTS 28
Backhaul Management An OpEx Reduction Opportunity
Ea r l y B a c k h a u l Op t i m i za t i o n
BSC
Groomer
TDM groomers save unused DS0s Simple approach No statistical multiplexing No help for Abis inefficiencies
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Backhaul Management An OpEx Reduction Opportunity
3 G B a c k h a u l — T he V is i o n BSC
ATM SW
ATM SW ATM SW
RNC
2G & 3G traffic combined on ATM backhaul Statistical multiplexing gain; may avoid stranded DS0s No help with Abis inefficiencies; Adds ATM cell tax Will be superceded by IP backhaul, eventually
30
Backhaul Management An OpEx Reduction Opportunity
T y pi c a l GSM A.b i s o n E1
16 kbps TRAU channels, occupied even during silence
Unused DSOs
Multiple lightly loaded signaling channels
31
Backhaul Management An OpEx Reduction Opportunity
GSM 2 G B e f o r e Op t i m i za t i o n BTS MW/Fiber
2 T1/E1s A.bis
3 T1/E1s A.bis
BTS 13 TRX
BTS 22 TRX
5 T1/E1s Total BSC Central Office
32
Backhaul Management An OpEx Reduction Opportunity
B a c k h a u l Op t i m i za t i o n s
Eliminate traffic from Call inactivity Voice silence periods Other TRAU idle frames GPRS & EDGE idle PCU frames
Multiplex signaling channels Recover stranded timeslots (TDM grooming) Handle other cell site traffic Location measurement unit IP links for other remote third-party equipment
33
Backhaul Management An OpEx Reduction Opportunity
St r i n g en t Re q u ir e m e n t s
Radio vendor inter-op certification
Minimum added end-to-end latency
10 ms or more added delay has unacceptable impact on voice quality
Automatic payload analysis
Vendor-specific interface issues are time consuming, but critical for successful deployment
Critical to avoid manual provisioning of timeslot assignments
Minimum footprint
Typically must fit within existing BTS cabinet
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Backhaul Management An OpEx Reduction Opportunity
U M T S Su p p o r t
Remove non-active cells from the ATM Pool/multiplex UMTS traffic over the common backhaul
Avoid inefficient ATM circuit emulation More efficient than any ATM over fractional E1
2G BTS
Cell Site
2 T1/E1s A.bis
2 T1/E1s A.bis
SPAN1SPAN2 10/100ETHERNET
2G BTS
Cell Site
SPAN1SPAN2 10/100ETHERNET
Poli cyP oint
Poli cyP oint
T1/E1 Iub 3G Node B
3G Node B RNC
BSC A interface
ATM RANAP Gateway
TDM
MSC
Central Office 37
Backhaul Management An OpEx Reduction Opportunity
Ev o l ut i o n t o I P B a c k h a u l
2G & 2.5G optimizations are still required ROP* over IP
IP Network
Router Router
2G BTS
Cell Site
Router Router
2 T1/E1s A.bis SPAN1SPAN2 10/100ETHERNET
Poli cyP oint
ROP* o ver IP w /HC** ove r T1/E1
3G Node B
RNC
* ROP – RAN Optimized Protocol ** HC – IP Header Compression
ATM
BSC A interface
Mobile Switching Facilities 38
Backhaul Management An OpEx Reduction Opportunity
B a c k h a u l Op t i m i za t i o n Sa v e M o ne y — Su p po r t N e w Se r vi c e s
Reduce operating expenses
Backhaul can be 30% of OpEx
Provide new services and/or new capacity with limited or existing backhaul capacity
39
Wi r e l e s s B a c k h a u l Technologies
Q&A
Fo r m o r e i n f o r m a t i o n …. Contact: Keith
Mallinson, The Yankee Group,
[email protected] Basilio
Sadindi, Celtel,
[email protected] Martin
Bäckström, Ericsson,
[email protected] Brough
Turner, NMS Communications,
[email protected]