Solving the Mobile Backhaul Challenge

Wireless Transport Network Optimization: Solving the 4G Backhaul Challenge

This document is confidential and is intended solely for the use and information of the client to whom it is addressed.

2 This document is proprietary and is intended solely for the use and information of the client to whom it is addressed. CFN Services

Solving the 4G Backhaul Challenge

  Clearly 4G requires more fiber and microwave in the backhaul network

  But how much, and how much of each?

  Where and how do I get it cost effectively? ILECs, CLECs, MSOs, AAVs?

  When and how much do I deploy?

  Do I deploy as TDM or Ethernet?

  The answer of course depends on your particular situation

  How much bandwidth do I need today, next year, in 5 years?

  Am I migrating an existing network or building out “greenfield?”

  Do I have voice traffic considerations or is this purely broadband data?

  Am I deploying high density urban sites or lower density in rural markets?


4G Backhaul Rules of Thumb

  The higher your bandwidth requirements the more fiber you’ll need   A 90% microwave architecture can safely support 50-100Mbs per site today

  Increasing the ratio of fiber hubs will support increased capacities per site

  At 50% microwave; 50% fiber capacities can grow to 200Mbs+ per site

  Planning the RAN and Backhaul together reduces lifecycle costs   Planning the RAN sites with a view towards fiber availability is critical

  Failure to plan appropriately leads to high fiber and thus backhaul costs

  This holds true equally for incumbent and green-field providers

  You can add more fiber to the Backhaul “diet” as the bandwidth grows   Ethernet is cheaper but packet over SONET (TDM) offers a smoother

transition for existing networks with voice traffic migrating to 4G   Rural deployments are more costly than urban environments


Fiber Access for 4G Backhaul - Where Do I Get It?

  ILECs and MSOs are aggressively building out the fiber infrastructure

  Verizon (ILEC) will have fiber to 80%+ of all sites in region by 2012

  AT&T (ILEC) has fiber deployed or planned to most high capacity sites

  Time Warner, Comcast, COX, and other MSOs are adding cell sites to their existing (typically Ethernet) fiber networks

  These alternatives will offer broad coverage, but uncertain lifecycle costs

  CLECs, Utilities, and other Alternative Access Vendors

  Over 200 non-ILEC/MSO fiber operators nationwide, over 500 when you count municipal fiber deployments

  More limited fiber footprint than incumbents but better economics

  Better opportunity to leverage ‘owners economics’ via dark fiber and/or shared build outs, thus providing more predictable lifecycle costs


Plan the RAN with a view toward fiber access for backhaul

CFN Services FiberSource® Deployment Planning Platform


Initial RAN design with fiber hub sites pre-selected…



…enables broad-based 4G coverage and lower lifecycle costs


4G World Conference Mobile Backhaul Summit Panel Discussion

Mike Dodson Utopian Wireless September 15th, 2009

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Substantial 2.5 GHz Spectrum Portfolio

•  License areas reach over 7.4 million people in 22 states. •  Focused on bringing WiMax mobile broadband services to rural, remote, and suburban markets.

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WiMax as the Technology Choice   True mobile internet, available TODAY with the momentum and developing ecosystem

necessary to deliver high value products and solutions for our customers.

RAN and Backhaul Considerations   Native Ethernet is the desired backhaul choice.

  Must achieve owner’s economics to make business cases work.

  Wireless backhaul, ring vs. hub architectures.

  RAN designed to deliver targeted services and data rates over the designated footprint.

  Sites selected not just on best RAN coverage, but also to satisfy backhaul needs.

IP Core Considerations   Central vs distributed traffic aggregation, internet handoff.

  Quality of Service tradeoffs.

  Security, harmful content management considerations.

Vendor & Services Partners   No time or funds available to “re-invent the wheel”.

  Partners who can scale as required to achieve rural, remote, and suburban market business objectives are critical to success.

Utopian’s Approach to Market Planning

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Suburban Markets   Roughly 80k pops and greater, higher population density supports a more efficient network

  Significant spectrum depth

  Competitive fixed and wireless incumbent providers

  Attractive demographics, strong demand for wireless broadband services

  Highly mobile usage

Rural & Remote Markets   Limited or no broadband service (fixed or wireless)

  Sparse population

  Social and economic need for broadband services

  Fixed and nomadic usage over mobility

Challenges in both cases   Time to market

  Minimize capital and operating expenses

  Bandwidth is the commodity

Utopian’s Broadband Landscape

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Wireless Backhaul   Delivers scalable bandwidth with owner’s economics.

  Many options in terms of vendors, path length, capacity, licensed vs unlicensed, etc.

  Licensing, site entitlements add time and cost to the deployment.   Good RAN sites won’t all be good microwave sites; microwave backhaul will drive higher candidate

site fallout as compared to traditional wired backhaul.

Traditional Leased Services   T-1s are commonly available from the LEC, even in underserved areas.

  CLEC and Cable MSO native ethernet services may be great for on-net sites.

  Special construction adds time, cost, and overall risk to the deployment.   Bandwidth for leased TDM or “Lit Fiber” services are “pay by the drink”; as bandwidth needs

increase, so do operating costs.

Dark Fiber   Great for on net sites and establishing fixed cost for nearly unlimited bandwidth.

  Limited availability, higher cost, and rural market bandwidth long term needs likely rules out “dark fiber to the site” as a viable backhaul solution.

Backhaul Challenges

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Source the Fiber First   Successful deployment requires a pool of on-net locations suitable for microwave hubs.

  Dark fiber always the preference, provided the market (or groups of markets) can make the economics work.

  Lit services or even TDM hubs can be viable, so long as the economics support the business case and time to market advantage offsets higher operating costs.

IP Core Design Approach   Hybrid centralized / distributed architecture

  Nodes selected based on access to fiber providers and the internet

In-Market Microwave Backhaul   Hub and spoke vs ring architecture choice depends on the market.

  Hub & spoke OK for smaller markets where the number of “spokes” are few.

  For larger markets, ring offers many more choices for fiber aggregation points, more tolerant of site candidate fallout, and higher reliability.

Solutions & How to Get There

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Rural Broadband Stimulus Funding Opportunity   Federal Government’s Broadband Stimulus Funding Program administered by RUS and

NTIA aims to deliver broadband services to unserved and underserved areas across the US.

  Utopian Wireless developed a proprietary methodology for determining underserved areas in its licensed Geographic Service Areas (GSAs).

  Utopian engaged it’s infrastructure vendor partner to collaborate in the development of RAN and Backhaul designs for each area as key elements of the application process.

  Applications require project-specific details for complete end to end designs which demonstrate connectivity from the end user to the internet backbone.

The Challenge: Integrate Underserved Area Designs with the IP Core   CFN supported Utopian’s efforts via it’s in-house expertise and tools including

FiberSource.

  From a list of over 140 target service areas, CFN was able to rapidly identify for each area the fiber providers, on-net locations, mileage and cost.

  This data enabled Utopian to develop preliminary end to end designs for each of the area and produce very high quality funding applications fully compliant with the criteria set out by the agencies.

CFN as a Key Services Partner

4G World Backhaul Summit

Doug Smith Chief Information Officer

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Company Highlights

2nd Largest WiMAX Operator in the US

Highly Capital Efficient Deployment Model

Deep Spectrum Position Averaging 114 MHz Across Footprint

Repeatable, Scalable Market Model

Focus on smaller, more rural markets in the US

Differentiated Product Offering

National Partnership with Rural Telcos and Electric Cooperatives

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Middle Mile Low-cost, high-capacity backhaul •  Regional fiber capacity •  Municipally-supported transport networks •  Utility-owned fiber networks

First Mile Flexible, low-cost back office •  Outsource/integrate: ‐  Arise (customer care) ‐  Aria (billing) ‐  TNI (order mgmt)

•  Outsource overhead •  Scalable – invest as you grow

Last Mile New WiMAX technology to reach end customer •  Underserved/exclusive markets •  Self-provisioned, fast install •  Portable personal broadband •  No one between DBC and

its customers

Small Business

Visitor-based network Schools

MDUs

Military Housing

Single Family Homes Fiber or Wireless

Internet Backhaul

NOC

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Backhaul Best Practices

•  DigitalBridge employs an array of backhaul solutions:

- Fiber and microwave are most often deployed.

•  Cost-efficiency is a primary driver in the selection process.

•  Reliability determines the ultimate network solution.

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Unique Challenges of Backhaul

•  Operators have to think differently about backhaul solutions in context of 4G broadband delivery.

•  Rural markets present unique challenges and backhaul requirements:

–  High-capacity circuit backhaul solutions needed for 4G broadband delivery are not always present.

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The Future of Backhaul

Backhaul technology is evolving…

–  Wireless point-to-point solutions are improving.

–  Fiber solutions continue to be enhanced.

–  Other creative in-band solutions are being developed.

LEAP Wireless Dan Graf

4G World Mobile Backhaul Summit

Dan Graf

Leap Wireless

Company Background

•  Leap Wireless provides innovative, high-value wireless services to a fast-growing, young and ethnically diverse customer base through its subsidiary, Cricket Communications, Inc.

•  Leap is primarily the company’s financial brand, used mostly with investment and industry audiences, not consumers.

•  Leap is traded on the NASDAQ Global Select Market under the ticker symbol “LEAP”.

•  Leap is headquartered in San Diego, Calif.

•  For more information, please visit www.leapwireless.com.

22 Confidential/Proprietary


Cricket Communications, Inc.

•  Cricket Communications, Inc. is the operating subsidiary of Leap Wireless.

•  Cricket is a simple, affordable, flat-rate wireless service offering unlimited usage with no long-term commitments or credit checks.

•  Cricket offers customers access to a variety of the latest handsets and feature-rich mobile applications such as popular games, ringtones, ringback tones and wallpapers.

•  Cricket’s phone service is available on a monthly pay-in-advance basis or daily with Cricket PAYGo, a traditional prepaid service for consumers who want unlimited services on a more flexible payment schedule.


Cricket Communications, Inc.

•  Cricket also offers an unlimited wireless internet service, Cricket Broadband.

•  Cricket is designed to make wireless communications simple, affordable and worry-free. Predictability, simplicity and value are the foundations of our business.

•  Cricket owns and operates its own high-quality, all-digital CDMA2000 1X and 1xEV-DO network that regularly ranks 1st or 2nd in overall market quality from independent tests.

•  The company and its joint ventures now operate in 30 states and hold licenses for 35 of the top 50 U.S. markets.


Current Challenges in Planning for 4G

•  4G will require bandwidth that current TDM networks cannot provide economically.

•  How do we cost effectively build and maintain 3G and 4G networks simultaneously.

•  How do we provide seamless transition between 3G and 4G networks.

•  Competition for last mile backhaul including alternative providers and technologies.

•  Some alternate technologies are new and may not be ready for prime time.

Best Practices in Planning for 4G

•  Trials –  Feasibility testing of Ethernet and other technologies –  Integration of equipment with new technologies –  Training and knowledge base

•  Partnering with vendors on solutions and trials.

•  Backhaul RFQ – What’s available and where available.

•  Create a by market Playbook that includes a set of solutions.

•  Plan solutions based on what’s available and geographical topologies.


Future Challenges

•  How to manage current networks while migrating to 4G networks.

•  Thinking IP and cost per bit.

•  Maintain quality while reducing costs per MB.

•  Reduce legacy TDM networks with least impact to customers.

•  Overall challenge of migration to an all IP network.
