Primary Enabling Infrastructure For The Mobile Internet

Presented by:Ian Serrao

Director – Network ServicesColumbus Communications Trinidad Ltd.

Mobile Industry Observations

• Currently Over 3 billion mobile phone users, estimated to grow to 5 billion in 2010– Growing dependence on mobile connectivity

– Demand for Data mobility

– Significant increase in Data, video and application development

• Traffic growing exponentially due to consumer demand for mobile data services for e-mail, text messaging, web access etc

• Push for more bandwidth accelerated by new handsets such as iPhones that combine digital media entertainment with web based applications

Source: Infonetics Research, 2008

Analyst Predictions, Statistics and Trends

• Demand for bandwidth will grow exponentially while revenue for the operator will taper off

• Carriers are exploring various technologies to provide cheaper and more effective ways to meet the capacity growth at a lower CAPEX and OPEX cost

• Evolution towards Ethernet/IP based mobile solutions

• Bandwidth demands– Mobile Call -16k, – Text Messaging– 9.6 -240k– Web browsing – 128-384k (min)– Media Streaming – 2-15 Mbps

Revenues

Traffic

Gap between traffic Gap between traffic and revenue

increases

Gap between traffic

Data Dominant

Gap between traffic and revenue

increases

Revenues

Traffic

Gap between traffic Gap between traffic and revenue

increases

Gap between traffic

Data Dominant

Gap between traffic and revenue

increases

Voice Dominant

Worldwide Cell Site Connections Growing

• Installed WW connections• 2006 = 2.9 million• 2010 = 4.8 million

• Ethernet fastest growing through 2010

• Mobile operators pay incremental charges for 2x to 10x bandwidth

• New options solve major problem for operators

Source: Infonetics Research Mobile Backhaul Equipment, Installed Base & Services, 2007

Worldwide Mobile 1st Mile Backhaul Connections: Installed vs New

0

1,000

2,000

3,000

4,000

5,000

CY05 CY06 CY07 CY08 CY09 CY10

Calendar Year

Co

nn

ec

tio

ns

(K

)

New connections

Installed connections

Backhaul the Critical Link

Carrier Base Station Mobile Switching Office (provisioning, call routing, etc)

Wireless handset

Copper

Fiber

Fixed-Wireless/Microwave

•The Mobile Backhaul network :• Is the critical link between the mobile subscriber and the

network or the Internet • Links the remote base stations and cell towers to the mobile

operators core networks• Provide access to both the voice network and the internet

Mobile Evolution

With downstream data rates capable of delivering a theoretical 14.4 Mbps of user throughput, the demand for bandwidth in the backhaul network is increasing by an order

of magnitude from where it is today

Impact of New Services on Backhaul Circuits

• New services provide additional capabilities but require more bandwidth.

• T1/E1 TDM Backhaul Circuits traditionally used are ideal for carrying high-value voice services but are not optimized for high bandwidth data services.

• Backhaul links are becoming congested

Possible Solutions

• Separate mobile voice services directly at the cell site.

• Data traffic can be backhauled using lower cost broadband technologies (xDSL, cable modem, Carrier Ethernet)

• Migrate all services voice and data to a single platform that meets all the needs required to deliver service to the customer

The Future of Mobile Backhaul

• Economic advantages of Ethernet will lead to its widespread use for mobile backhaul networks

• Introduction of Ethernet and IP interfaces in mobile base stations and radio controller equipment

• Migration of legacy TDM circuits to Carrier Ethernet Solutions

• Global Consensus and Adoption of Carrier Ethernet Standards

Advantages of Carrier Ethernet Backhaul

• Ethernet – Economically meets exploding bandwidth requirements currently constrained by the prohibitive

costs of legacy network upgrades – Efficient and simple for service providers to manage and maintain– Reliable with full SLA support and full OAM capabilities

• Most mobile data traffic is broadband/IP centric– Ethernet is optimized for packet data traffic

• Overcomes TDM (T1/E1) scalability – This makes Carrier Ethernet the compelling choice

• Packet can be extended to the cell site over other physical technologies:– WiMAX– xDSL– Bonded Copper– GPON/EPON

• Time/urgency– Ethernet NodeB’s are being deployed now by all major networks– Carrier Ethernet removes the barrier for timely network upgrades

Worldwide Mobile 1st Mile Backhaul Service Charges per Connection:

PDH and ATM over PDH vs New Wireline

$37,044

$6,887

$0

$10,000

$20,000

$30,000

$40,000

CY05 CY06 CY07 CY08 CY09 CY10

Calendar Year

Re

ve

nu

e PDH and ATM over PDH

New wireline

Ethernet Options Solve Backhaul Cost Problem

• PDH (T1/E1 etc.) costs climb directly with bandwidth

• Ethernet wire-line costs grow gently with large bandwidth increases (Eth, DSL, PON, cable)

• New IP/Ethernet wire-line options to satisfy the the #1 investment driver: operational cost savings

Source: Infonetics Research Mobile Backhaul Equipment, Installed Base, and Services, 2007

Stay on PDH

Ethernet

Node B

BTS

STM1

RNC

FRE1

BSC

FR

ATM

Agg SiteWith LegacyATM Switch

ATMSDH IP/MPLS

Core

BSC

RNC

PDSN orSGSN

Core Site

Traditional Transport

ATM

Backhaul traffic via TDM/SDH network All bandwidth is “nailed-up” All scaling must be planned well before

provisioning Separate networks for backhaul and core

IMA MSC

nxT1/E1

Pseudowires – The solution to the Internetworking Challenge

• Enable the use of new packet networks• Provides a choice among multiple available

packet network technologies• Uniquely combine circuit emulation and service

emulation over a packet network• Deliver a solution allowing the transport of TDM,

HDLC, and ATM based services over frame-based technologies such as MPLS, IP and Ethernet Networks

Future Transport Network

Node B

BTS

nxT1/E1

STM1

RNC

IMA

FRE1

BSC

FR

ATM

IP/MPLS Extends into the RAN

BSC

RNC

PDSN orSGSN

Core Site

Pre-aggregation sites shorten TDM/SDH runs Backhaul traffic via psuedowires Preprovisioning for intuitive scaling MPLS core is extended into the Backhaul Network

Psuedowires

Psuedowires

MSC

Carrier Ethernet Access Technology Benefits

Ethernet Backhaul Solution

When To Use Key Attribute(s)

Ethernet over Copper /Mid-Band Ethernet

Copper Pairs Available. No fiber or radio.

7x more bandwidth per pair than traditional T1/E1 services. Greater reliability, lowest cost per bit to deploy

Ethernet over PDH No dark fiber available. Long distances.

Straightforward provisioning. Works over existing T1, E1, DS3, E3 circuits

Ethernet over Microwave No available Terrestrial Facilities

No wireline or fiber facility requiredRapid deploymentLow OPEXFull ownership and control

Ethernet over Fiber Fiber Available Optimal performance. ‘Unlimited’ (up to 10GbE) bandwidth

Mobile Backhaul Equipment Market Trends

Source: Infonetics Research Mobile Backhaul Equipment, Installed Base & Services, 2007

Microwave

Worldwide Mobile 1st Mile Backhaul Equipment Revenue by Technology

$0

$3,000

$6,000

$9,000

CY05 CY06 CY07 CY08 CY09 CY10

Calendar Year

Re

ve

nu

e (

$M

)

Other

PDH NIU

SONET/SDH

PDH/SDH microwave

Ethernet microwave

Ethernet copper and fiber

Thank You