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Wireless Technology: Breaking the Limits of TCO Reduction in Mobile Networks
A Frost & Sullivan
White Paper
December 2011
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 2
Contents
Executive Summary ...................................................................................................................... 3
1. Mobile Industry Context........................................................................................................... 4
1.1 The Era of “Big Data” and Traffic Explosion ........................................................................................ 4
1.2 The Three Curves Dilemma ................................................................................................................. 4
2. The 3 Curves Dilemma: What are the Strategies for Network Modernization? ............... 6
2.1 A Combination of Challenges .............................................................................................................. 6
2.2 Main Concerns and Strategies for Network Modernization ............................................................... 6
2.3 Making the Right Investment Choices ................................................................................................ 7
2.4 Technological Approaches .................................................................................................................. 8
2.5 Architectural Approaches ................................................................................................................... 8
2.6 The Limit to the TCO Reduction: The Need to Focus beyond Telecom Equipment ......................... 10
3. Breaking the Limits of TCO Reduction using Technology Innovation .............................. 13
3.1 Mobile Network Deployment Challenges ......................................................................................... 13
3.2 The Wireless Technology will break today’s Limits of TCO Reduction ............................................. 13
3.3 The Benefits of the Wireless Technology for Site Acquisition and Site Construction ...................... 14
3.4 A Practical Implementation: E-Blink’s Wireless RRH™ ...................................................................... 16
3.5. Examples of Sites built with E-Blink’s Wireless RRH™ ..................................................................... 17
Conclusion.................................................................................................................................... 20
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 3
Executive Summary
Mobile operators around the world are crafting strategies to seize the fast-growing data services market. To
truly create value added benefits to their customers, and at the same time achieve a sound financial
performance, mobile operators would need to enhance the performance, capacity and flexibility of their
network infrastructure. But when considering the current approaches toward network modernization,
investment costs would soon exceed revenues.
The possibilities for reducing the total costs of ownership of the mobile network infrastructure are limited.
Although telecom vendors have developed the state-of-the-art products and the equipment is smaller, lighter,
and more energy-efficient, technological advances are not always enough. To reduce the cost of network
modernization, mobile operators will have to re-think the way they are approaching the upgrade and
construction of cell sites. In particular, mobile operators will have to look at the increasing costs (in terms of
both time and resources) derived from site acquisition and site construction.
In this white paper, Frost & Sullivan reviews various architectural approaches to network modernization and
technological solutions that are, or will soon be, available in the market. These architectural approaches and
technological solutions will generate the urgently needed reductions to the investments in infrastructure.
As far as approaches are concerned, Frost & Sullivan believes that the infrastructures of tomorrow will heavily
rely on a combination of macro- and small-cells, distributed architecture, as well as network sharing. In terms
of technological solutions, Frost & Sullivan considers that remote radio heads and active antennas will have a
crucial role in improving the flexibility and performance of the network.
But to fully exploit the capabilities of these solutions and the advantages of the abovementioned approaches,
mobile operators may draw on a simple yet effective technology. A wireless link between the antenna and the
base station will further facilitate the site acquisition and site construction processes, bringing in further
savings in time and money to mobile operators.
The white paper concludes with how mobile operators can leverage a wireless connection between the
antenna and the base station, and explores some of the advantages of a wireless link versus the traditional
optic fiber and the old-fashioned coaxial cables.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 4
Industry estimates
indicate that the CAGR
of data traffic for the
period 2010-2015 is
between 90% to 95%.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks
1. Mobile Industry Context
1.1 The Era of “Big Data” and Traffic Explosion
Statisticians have coined the term “big data” to describe data sets that become so complex that they are very
difficult to work with using simple database management tools. The term has been used to describe the
continuous—and exponential—growth of computing power and databases that characterize our economies
and societies.
The ubiquity of computing and the proliferation of intelligent mobile connected devices—including
smartphones, tablets, netbooks and sensors—are generating rapid increases in the flow of new information
that accentuate the “big data” scenario. The evolution of the telecommunications industry has been the
medium for this growth. We are at the onset of a paradigm shift, moving from a world of voice to a world of
data. As shown in the chart below, global mobile data traffic is increasing dramatically; by the end of 2015,
traffic volumes are expected to reach 6.3 exabytes (EB) per month, a near 26-fold increase over 2010 levels.
Figure 1: Mobile Data Traffic Volumes – Increasing at an Exponential Rate
Source: Cisco VNI Mobile, 2011
1.2 The Three Curves Dilemma
This astonishing growth in data traffic has caused a mixed reaction among the management boards of mobile
network operators. On the one hand, mobile network operators (MNOs) are pleased to move from a world of
pure voice and messaging-based services to a world of data-based services. At the same time, there is anxiety
about supporting and managing these data traffic needs in the face of weak revenue growth. Without a clear
and substantial revenue stream or new revenue opportunities to support data traffic demand, industry
sustainability is at risk. This dilemma is referred to as the “Three Curves Problem,” illustrated below.
0.0
2.0
4.0
6.0
8.0
2010 2011 2012 2013 2014 2015
0.2 0.61.2
2.2
3.8
6.3
Exab
yte
s p
er
Mo
nth
Year
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 5
Figure 2: Three Curves Dilemma – Data Traffic Explosion, Investment Costs, and Slow Revenue Growth
Source: Frost & Sullivan
Today, operators have two possible lines of actions. The first one is to reduce or, at least optimize, capital and
operational expenditure (CAPEX and OPEX) without compromising the quality of the value proposition. The
second line of action is to identify solutions and monetization models that can strongly boost revenue growth.
The growth in data traffic is driving exceptional changes for mobile network operators, radically changing the
basic nature of these companies. A mobile network operator is becoming a mobile experience provider,
offering a variety of services for mobility and using the mobile network as the essential building block. From
this perspective, mobile network operators are moving toward a process of modernization that involves all
aspects of their organization. The modernization of the network infrastructure plays a key part in this process.
This paper examines the challenges faced by mobile operators and the main technical options and building
blocks available to cost-effectively adapt the radio access network to the huge growth in data traffic. This
paper highlights the new technologies that mobile operators will leverage in order to successfully meet their
network modernization objectives.
Time
Data Traffic
Investment Cost (Current Technologies)
Revenue
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 6
2. The 3 Curves Dilemma: Which Strategies for Network Modernization?
The rapid explosion of mobile data traffic is threatening the business sustainability of mobile network
operators. The modernization of infrastructure plays a fundamental role, as it provides the basis for both
profitable growth and value for customers.
2.1 A Combination of Challenges
Building a reliable and robust infrastructure presents key economic, technical, environmental and regulatory
challenges.
Economic Challenges of Network Modernization: The immediate challenge facing MNOs is to find
cost-effective ways to deal with the increase in data traffic. In defining their network modernization
strategy, MNOs should consider the existing infrastructure, the impact of legacy systems on the
migration to new technologies, and the business case around the introduction of new technologies to
upgrade the infrastructure.
Technological Challenges of Network Modernization: From a technological perspective, MNOs have a
number of approaches, such as data offloading or frequency re-farming, that alleviate the demands
for network capacity. However, MNOs are still figuring out what the right combination of approaches
is and what the costs and potential savings are for each of these approaches.
Regulation & Environmental Challenges of Network Modernization: MNOs’ challenges are intensified
by the demands of various stakeholders requiring that infrastructures comply with strict standards.
The purpose of these standards is to diminish any negative impact on the environment where new cell
sites are being built, and to ensure that new technologies do not represent health risks.
Environmental concerns also have an influence on the site owners’ decision-making process, as a
rising number of them demand information about the impact of new cells on the environment. Based
on this information, they select what technologies may be installed on their sites. In many cases, even
the aesthetics of the cell site can affect the entire installation process. This is particularly true when it
comes to buildings with historical, religious or cultural significance.
2.2 Main Concerns and Strategies for Network Modernization
There are several prevailing concerns in network modernization projects.
Network Capacity: MNOs see the imminent LTE migration as an opportunity to lessen the pressure on
capacity constraints. LTE would establish more advanced QoS attributes, which would facilitate the
monetization of data transport services. Nonetheless, LTE migration may also add complexity to the
maintenance and upgrade procedures.
Energy Efficiency: The energy consumed by the equipment deployed throughout the network
represents a great portion of MNOs’ OPEX. Deploying more equipment would mean higher energy
bills and a greater adverse impact on the environment.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 7
TCO Reduction: Telecom equipment vendors are rolling out new base stations and antennas with
multi-frequency, multi-standard, reduced-size and energy-efficient features. The new generation of
telecom equipment is becoming significantly smaller, lighter and cheaper. However, site acquisition
and site construction costs are dramatically rising, exerting more pressure on MNOs’ finances.
The table below illustrates solutions that mobile operators can adopt in the short- and long-term. While the
short-run solutions intend to alleviate the pressures on data traffic, the long-run solutions aim to ensure
profitable growth and the ability to support large data traffic.
Source: Frost & Sullivan
Mobile operators should consider these options in the light of their network capabilities (capacity bottlenecks,
area of coverage, ease of network upgrade, etc.) and of market-specific considerations (regulations,
competitive landscape, etc.).
2.3 Making the Right Investment Choices
A majority of MNOs did not anticipate the phenomenal data growth experienced over the past two years or,
at least, were taken by surprise at the speed of this growth.
Now these operators are accelerating toward a process of modernization, and are confronted with multiple
options and modernization paths. They cannot afford to make the wrong investments, which is why mobile
operators around the world are currently evaluating all available technical solutions in order to master the
new technologies that will give them the edge.
Frost & Sullivan believes that the major challenges facing the industry today relate more to strategic decisions
than to technological considerations. However, an informed assessment requires a holistic understanding of
the different technological and architectural approaches currently available.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 8
2.4 Technological Approaches
Frost & Sullivan believes that mobile operators will need to implement a combination of 3G, 4G and offload
strategies to effectively handle the sharp increase in data traffic. Fortunately, several technical and
architectural options are available to adapt and improve the network performance. Radio remote head (RRH)
technologies and active antennas are solutions that mobile network operators are adopting for network
modernization. These technologies and their benefits will be explored on the following pages.
The Role of RRH in Network Evolution—A Small Technology Playing a Big Role
Placing a base station right next to an antenna used to be a burdensome task, and connecting them through
coaxial cables could be both impractical and expensive. As a result, mobile operators were facing poor
deployment flexibility until remote radio heads (RRH) were introduced to the market.
Modern base stations are separated into two parts: the baseband unit (BBU) and a remote radio unit (RRU or
also referred to as RRH). The BBU and the RRH are connected through optic fiber and communicate via
industry-standard interfaces (such as CPRI or OBSAI and soon ORI). RRHs enable a greater physical distance
between the base station and the antenna, significantly enhancing deployment flexibility. In addition, BBUs
can be placed in strategic locations where power, backhaul, security and access requirements are met.
RRH is a fundamental element in new cell site deployments, and enhances network performance in terms of
capacity, coverage and energy consumption.
Antenna Technology Evolution
For performance and aesthetic reasons, traditional antennas have been subject of continuous enhancements.
A new generation of “active antennas” (smart antennas) will have a beam-forming capacity, which will
improve transmission speed by detecting the signals and sending feedback to the transmitter.
The first generation of active antennas, sometimes referred to as “semi-active antennas,” have a RRH and an
amplifier connected and integrated into the RF antenna. “Semi-active antennas” will be available soon and
will improve network performance.
2.5 Architectural Approaches
Network Sharing between Operators
Confronted with the “three curve dilemma,” many mobile operators around the world are considering
network sharing as a means of alleviating CAPEX and OPEX pressure. According to industry estimates, cost
savings can reach 25-50 percent on-site rental, and up to 50 percent on-site building and cabinet costs.
Network sharing projects range from simple passive site sharing (for instance, sharing physical site
infrastructure but without sharing telecom equipment) to building a joint mobile network. Network sharing
projects can also include the consolidation of the existing infrastructure assets of two mobile operators, in
order to generate substantial CAPEX and OPEX savings.
There are numerous challenges for the successful implementation of network sharing. The technical issues are
not necessarily being the most complex as compared to the regulatory, legal and governance-related aspects
of such projects.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 9
Distributed Architecture
Distributed architecture consists of placing several BBUs in a single location, a base station hotel, where they
share a supply of power and backhaul connection. Mobile operators are able to reduce backhaul-related
CAPEX and OPEX by grouping various BBUs together. Multiple radio heads are connected to the centralized
facility.
By adopting a distributed architecture, mobile operators aim to improve the coverage and capacity of the
radio access network by deploying remote radio heads in locations where there is high traffic demand. The
principle behind distributed architecture is that remote radio heads are easier to deploy than traditional base
stations. The main requirement for having a distributed architecture is to have access to a fiber-based
network connection where the RRH is installed.
Figure 3: Non-distributed versus Distributed Architecture
Source: Frost & Sullivan
Combination of Macro-Cells and Small Cells—“The Big Wave Deployment Project”
An approach that uses only macro cells requires large investments to achieve high QoS and QoE. The macro-
cell approach provides poor flexibility because areas of high data demand tend to be concentrated in specific
locations, for instance, a business district. The aggregation of macro cells usually results in “idle” or “lost”
capacity, as the coverage of the new macro cell extends throughout areas of both high and low data demand.
Moreover, the installation of macro cells in areas of high data demand is increasingly impossible.
By contrast, an approach that combines both macro and small cells enhances the flexibility of the entire
system, as it offloads traffic when possible to small cells, and enhances the end users’ QoS and QoE.
Many credible market research groups believe that small cell deployment will be key in facing this capacity
challenge and anticipate that small cells will represent more than 50 percent of mobile networks deployment
by 2015. The combination of macro cells and small cells will play an important role in the strategy of mobile
operators.
Given the current coverage of macro cells in urban and rural areas (in a majority of developed countries),
upgrading mobile networks through small cells becomes essential. A number of reasons support this view:
Compared to macro sites, small cells are less expensive in terms of equipment costs and installation.
According to equipment vendors, small cells may provide savings of more than 50 percent.
In urban areas, small cells provide more flexible coverage than macro cells. They can be deployed in
strategic sites, such as street lamp poles.
Base Station Hotel
Non - Distributed Architecture
Distributed Architecture
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 10
Small cells improve the QoS and QoE of macro cell users by decongesting (offloading) traffic from the
macro cell. They also improve the QoS and QoE of small cell users by allocating a large bandwidth for
a limited number of users.
Small cells provide strong benefits in terms of energy performance and environment integration.
Figure 4 - Migrating from Macro Cells Architecture to Combined Micro Cells
Source: Frost & Sullivan
2.6 The Limit to the TCO Reduction: The Need to Focus beyond Telecom Equipment
After a decade of continuous pressure on infrastructure vendors, the prices of telecom equipment have been
drastically reduced and radio access equipments such as base stations and antennas now represent only a
fraction of the overall site costs. In order to continue generating CAPEX and OPEX savings, mobile operators
must pay attention to the costs of site acquisition, site construction and site rental.
Figure 5: High-Level Breakdown of Site CAPEX and Expected Costs Evolution in Time
Source: Frost & Sullivan
25%
50%
25%Telecom Equipment
Site Construction
– Civil Works
Site Acquisition
CAPEX ShareCAPEX Type Evolution in time
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 11
2.6.1 Site Acquisition – A Time-Consuming Process
The challenge related to site acquisition resides in the length and complexity of the process. Generally, it
includes the following steps:
Planning: This phase consists of determining where there is a coverage gap or a capacity bottleneck in
the network and deciding, from a marketing and business standpoint, where it is worthwhile to
deploy new sites for coverage or capacity reasons.
Site search: Based on network planning, this phase consists of identifying the most suitable and
available locations to build the cell sites required for coverage or capacity reasons.
Zoning: Simultaneously, it must be ensured that building a cell site in the selected location complies
with all relevant regulations.
Site negotiation/acquisition: Once a site location has been selected, there is discussion and
negotiation with the landowner about site construction and site rental. Support of local authorities
and residents, accessibility to the site and proximity to a power supply are all determining factors in
these negotiations.
Construction: The cell site is built in compliance with any applicable regulations.
Figure 6: Different Stages in the Deployment of a New Cell Site
Source: Frost & Sullivan
The complexity of this process is considerably increased when it comes to a macro cell in urban and suburban
areas. Procedures to obtain permissions from local regulators can be an extremely arduous and time-
consuming task. It is not unusual for the site acquisition process to extend over two or three years. Worse yet,
mobile operators are now frequently unable to even find suitable locations in given areas despite extensive
site searches.
2.6.2 Site Acquisition – A Costly Process
Besides the length of the site acquisition process, many other factors increase the cost of acquiring a macro
cell site: public environmental awareness, public policy, and the scarcity of available sites. While mobile
operators need to reduce the network TCO, the acquisition cost of macro-cell sites keeps increasing. It is
imperative for mobile operators to find solutions to reverse the current trend because of the negative cost
implications. In addition, mobile operators are often required to pay an up-front fixed fee to sub-contractors
to search for sites in difficult areas.
Time
90% of the process 10%
Planning Site search ZoningSite
AcquisitionConstruction / operation
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 12
The lack of suitable site locations, particularly in urban areas, is driving mobile operators to redefine their
network architecture and to look at small cells deployment. Although it may be easier to deploy a small-cell
site, mobile operators must not underestimate the site acquisition time, particularly if civil works are required
to connect the small cells to the network. It is anticipated that many small cells will be installed on city
structures such as light poles or advertising panels. As a result, mobile operators should be able to negotiate
global frameworks for small cells deployment instead of negotiating on a site-by-site basis.
In summary, although the newest telecom equipment is smaller and easier to install, and should, in theory,
facilitate site acquisition, the search process has evolved very little. As a result, site acquisition costs have not
decreased in recent years. In fact, the increased difficulty of finding and negotiating sites in most urban and
suburban areas is driving the costs up. Unless mobile operators are able to break the existing TCO reduction
limits with more radical site acquisition strategies, the current trend of rising costs is likely to continue.
2.6.3 Civil Works: A Substantial Part of Cell Site Cost
Civil Works for Macro-Cells
According to industry estimates, site construction and civil works represent up to 50 percent of the macro-
cell’s CAPEX for a typical site in a developed country. In order to reduce the cost of civil works, mobile
operators are looking at solutions that are easy to install, flexible, and do not require heavy civil works.
In an urban or suburban environment, connecting the base station to the antenna can represent a big
challenge and a significant part of the civil works, in particular when the distance between the base station
and the antenna exceeds several dozen meters. Lack of flexibility is an inherent problem in the use of coaxial
cable or optical fiber, which can lead to expensive civil works and even to sites being blocked for years.
Civil Works for Small-Cells
Even though equipment vendors have reduced the size and weight of their equipment, deploying a large
number of small cells is a laborious task. It is believed that civil works costs will total up to 80 percent of the
TCO of small-cells architecture. Laying down fiber will be one of the main contributors to civil work costs.
Laying the optical fibers may be very costly in urban and suburban areas.
Since small-cells architecture is needed to accommodate the surge in data traffic, mobile operators must
adopt innovative solutions that will allow them to deploy small-cells faster and more easily in order to
decrease the cost of civil works.
2.6.4 Site Rental: Driving Up Mobile Network OPEX
In most countries, landlords are taking advantage of the expiration of their lease contract to demand higher
rental fees. The scarcity of sites in urban/suburban areas has placed mobile operators in a weak negotiating
position because they cannot afford to lose any site. Also, most landlords are hiring experienced telecom
consultants who assist them in the negotiation with operators. To extend the site lease, operators are obliged
to accept higher rent and often must take on additional costs related to site integration or camouflage.
To alleviate this problem, mobile operators are trying to negotiate generic agreements with public
municipalities in order to avoid costly site-by-site discussions. Often, the municipality is confronted with
criticism from the public about lack of coverage or low data speed, and therefore is open to discussions with
mobile operators, provided that the deployment of new sites respects certain urbanism requirements.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 13
3. Breaking the Limits of TCO Reduction using Technology Innovation
3.1 Mobile Network Deployment Challenges
Fiber optic or coaxial cables between the base stations and the radio antennas pose significant limitations to
the growth and upgrade of networks, making infrastructure deployment and expansion an arduous task.
Mobile operators are scouting for ways to eliminate coaxial and fiber optic cables from base station
deployment in order to reduce site acquisition time, save on civil work costs, and obtain maximum flexibility in
terms of antenna location (either for better radio performance or to reduce site rental costs).
A plethora of network modernization solutions are available to mobile operators for offloading traffic and
increasing network coverage and capacity. Remote radio heads, active antennas, site sharing, distributed
architecture and small-cells solutions are particularly attractive, as they offer various advantages in terms of
reduced CAPEX, OPEX and enhanced deployment flexibility. In spite of their benefits, significant challenges
persist:
Source: Frost & Sullivan
3.2 The Wireless Technology will Break Today’s Limits of TCO Reduction
Until now, the deployment process for mobile operators has consisted in calculating the number of cell sites
needed for coverage and capacity expansion, pre-designing and searching for sites that match the radio
engineers’ requirements, and only then negotiating with site owners. As a result, deployment projects often
end in a waste of time or a deadlock.
To address the challenges posed by the 3 curves dilemma, Frost & Sullivan believes that it is imperative for
mobile operators to adopt new technologies and methods to overcome the rising number of obstacles in cell
site deployment. Keys to ensuring a successful expansion and upgrade of the mobile network infrastructure
include reverse engineering methods, coupled with the use of flexible and environment-friendly solutions that
will allow mobile operators to break the existing limits to significantly lower CAPEX and OPEX.
Among all the technologies studied, Frost & Sullivan has discovered that one of the most effective solutions to
break today’s barriers faced by mobile operators is to build the wireless technology into the base station and
the antenna. It creates a paradigm shift because the wireless technology eliminates the need for coaxial
cables or fiber optics between the base station/network access point and the radio heads/antennas.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 14
Figure 7: Using Wireless Technology to Connect the Base Station to the Antenna
Source: Frost & Sullivan
The wireless technology brings a new value proposition to the site deployment of mobile networks as it
greatly simplifies site acquisition and site construction, hence translating into cost savings and shorter
deployment lead times.
3.3 The Benefits of the Wireless Technology for Site Acquisition and Site Construction
With the wireless technology, mobile operators can design and deploy cell sites differently, faster, and at a
lower cost, while meeting the requirements of landlords and local authorities in terms of urban integration.
The elimination of optical fiber and/or coaxial cables considerably improves the odds of success in acquiring
and deploying new cell sites in urban and suburban areas. With the wireless technology, antennas can be
installed in locations previously impractical or impossible due to the high cost of civil works or the
unwillingness of a site owner for aesthetic reasons.
Figure 8: Simplifying Site Acquisition and Site Construction with the Wireless Technology
Source: Frost & Sullivan
The wireless technology considerably facilitates the process of small-cells deployment, as mobile operators do
not have to connect the base station and the antenna through optical fiber or coaxial cables. Also, the use of
the wireless technology is more appealing to site owners, as it is invisible to passers-by and requires few, if
any, modifications to the physical layout of the buildings.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 15
New site typologies, previously
discarded due to site acquisition
issues or unreasonable civil
works costs, are now becoming
available at an affordable cost.
Site acquisition and construction
costs have increased over time
due to negotiation issues or civil
work complexity.
For a deployment based on distributed base stations architecture, laying down optical fiber from the network
access point all the way up to the antennas is often a challenge and consequently imposes significant
limitations for the positioning of the antennas close to an optical fiber access point. Thanks to the use of the
wireless technology, it is possible to overcome the last meters gap where optical fiber connection is not
available and where the cost of installing it would be a costly and lengthy administrative process.
Figure 9: Using Wireless Technology in Non-distributed and in a Distributed Architecture
Source: Frost & Sullivan
In deciding whether to employ traditional fiber technology or to use the wireless technology, mobile
operators should assess the complexity of the site, taking into account the different factors that have already
been mentioned: the cost of civil works, the difficulty of laying down optical fiber and/or coaxial cables, the
willingness of site owners to allow a cell installation, and environmental and aesthetic considerations. The
more complex the site, the more attractive the use of the wireless technology, because it simply tackles all
challenges that may exist on a given site.
Figure 10: The Wireless Technology Generates New Site Possibilities at Affordable Costs
Source: Frost & Sullivan
Base Station Hotel
Non - Distributed Architecture
Distributed Architecture
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 16
The wireless technology reduces time-to-market, site CAPEX and site OPEX. It minimizes the time spent on site
acquisition and installation, and maximizes the flexibility of radio antenna deployments. Moreover, it
overcomes most of the operational drawbacks of distributed network architecture and of small-cell
deployment.
3.4 A Practical Implementation: E-Blink’s Wireless RRH™
Frost & Sullivan has researched companies that have successfully developed and implemented products using
the wireless technology, and has identified E-Blink solution as an innovative approach that enables mobile
operators to rapidly expand and upgrade the network infrastructure by removing the limitations associated
with coaxial cables or optic fiber.
E-Blink’s patented Wireless RRH™ technology consists of a wireless link currently operating in license- free
bands (and, if needed, in licensed frequency bands) that connects the antenna to any base station supporting
2G, 3G and LTE. The solution is in commercial service in several mobile networks in Europe.
Figure 11: E-Blink Wireless RRH™ Solution
Source: Frost & Sullivan
E-Blink’s Wireless RRH™ stands out in terms of product performance, market readiness and record of
successful deployments. It is a highly scalable and flexible solution, which enables mobile operators to
smoothly expand their network coverage and capacity.
In terms of QoS, E-Blink’s Wireless RRH™ performs just as well as traditional fiber RRH. The solution is field-
proven and has demonstrated radio KPIs similar to fiber RRH. Compared to traditional mobile backhaul
solutions, E-Blink’s Wireless RRH™ has an outstanding performance, since it isn’t subject to the capacity
limitation of digital microwave transmission.
E-Blink technology can be used as a standalone product or can be integrated into the base station and the
antenna. It provides mobile operators with a competitive edge:
It reduces both CAPEX/OPEX of the network infrastructure. As the complexity of the sites increase, so
do the savings.
It is a non-intrusive solution. It respects the environment, is invisible to passers-by and, therefore, has
a greater public acceptance.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 17
The site was blocked for years.
The proposal to use E-Blink’s
Wireless RRH™ resolved the
negotiation issues and the site
was on air a few weeks after.
Due to radio mask, the antenna
had to be moved to the adjacent
building. E-Blink’s Wireless RRH™
was the only available solution
to build the site.
It eliminates the need for fiber or coaxial cables, reducing civil works to a minimum. This not only
reduces construction costs, but increases site owners’ approval for the site construction.
With Wireless RRH™, any location becomes a potential deployment site. Complex building
infrastructures or reluctant site owners are no longer obstacles in deploying a new cell site or
upgrading an existing site.
Time spent on site searches, zoning, negotiation and installation is sharply reduced, which ultimately
translates into cost savings. This is particularly true in urban and suburban areas, where, with existing
technologies, the number of candidate sites is decreasing.
It delivers a faster ROI, as radio sites are on air more rapidly and deployment costs are considerably
reduced.
3.5. Examples of Sites Built with E-Blink’s Wireless RRH™
The Wireless RRH™ solution has been installed on sites ranging from simple rooftop or pylon, to more
complex sites such as historical or religious monuments. Below are a few examples of sites where the Wireless
RRH™ solution is in commercial service.
Negotiation issue on a historical monument
Rooftop to rooftop connection
base station2
wireless link3
antenna 1
antenna 1 base station2wireless link3
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 18
The site owner wanted to
remove the cable tray previously
installed on the building. E-
Blink’s Wireless RRH™ allowed the
operator to keep the site on air.
Heavy civil works were required
to connect the base station to
the antenna. With E-Blink’s
Wireless RRH™, the operator
reduced construction cost.
significantly.
Expensive pylon reinforcement
was required due to the wind
load on coaxial feeders. The use
of E-Blink’s Wireless RRH™
significantly reduced the site.
construction cost.
Site integration was a must—no cable allowed
Avoiding heavy and costly civil works
Avoiding expensive pylon reinforcement
antenna 1
base station2
wireless link3
base station2
wireless link3
antenna1
antenna1
base station2
wireless link3
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 19
Earlier this year, E-Blink introduced to the market a version of its products integrated into a light pole. This
pre-packaged solution can be installed with minimum civil works and is ideal for deployment in suburban
areas. Mobile operators are very supportive of the solution because it is easy and cost-effective to find light
pole sites for deployment. Municipalities are also favorable, as the solution meets with environmental and
urbanism constraints.
Figure 12: Turning a Light Pole into a “Stealth” Radio Site
Source: Frost & Sullivan
With E-Blink’s Wireless RRH™, it is now possible to deploy mobile sites that meet the demands of mobile
operators, while respecting the requirements of local communities and municipalities.
Wireless Technology: Breaking the Limits of the TCO Reduction in Mobile Networks © Frost & Sullivan, 2011 20
Conclusion
The mobile communications industry is undergoing a shift from a voice-centric industry to a data-centric
industry. This new scenario, and the resulting 3 curves dilemma, is driving radical changes in mobile operators’
strategies. Mobile operators are confronted with the challenge of rapidly adapting and modernizing their
network infrastructure to support the high demand for data traffic while keeping CAPEX and OPEX under
control. To improve network performance and reach higher cost-efficiency, mobile operators are introducing
a new generation of radio technologies. However, these technologies have proven insufficient to break the
existing TCO reduction limits related to site acquisition, site construction and civil works.
Frost & Sullivan recognizes that the emergence of the wireless technology represents a shift that will allow
mobile operators to overcome these operational challenges and break today’s TCO reduction limits.
Figure 13: Unlike the Fiber Technology, the Wireless Technology Breaks the Limits of TCO Reduction
Source: Frost & Sullivan
Frost & Sullivan believes that the mobile operators that today leverage the wireless technology as part of their
site acquisition and site construction processes are taking a step ahead of their competitors that continue to
design and build networks based on traditional coaxial cables of fiber technology. Indeed, the benefits of the
wireless technology will prove to be decisive in the race between operators to secure sites for 4G and small-
cells deployment in urban and suburban environments.
Frost & Sullivan also considers that the wireless technology is an opportunity for telecom equipment vendors
to build back value into radio infrastructure products, such as base stations or antennas, and counter the price
erosion deeply affecting their profitability. Indeed, the wireless technology is a way to move mobile operators’
CAPEX spending away from civil works and back into telecom products.
The wireless technology is the missing link that allows mobile operators to break the TCO reduction limits and
cost-effectively deploy, evolve and modernize their network infrastructure to meet the spectacular demand
for data services.