Alcatel-Lucent BSS GSM Solutions. Designed to Optimize Network TCO

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1 Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO

2 Faced with the continuous growth of voice and data traffic, mobile operators must expand network infrastructure, despite flat ARPUs. As a result, you need to master your investment s total cost of ownership (TCO) by addressing CAPEX and OPEX globally, with an awareness of interdependencies. The Alcatel-Lucent Base Station Subsystem (BSS) portfolio can help by drastically reducing all TCO contributors. This systematic approach provides innovative solutions, with TCO savings ranging from 35 to 55 percent. Combined with innovative civil works and site environment designs, these solutions enable significantly enhanced business cases to meet today s crucial operator challenges. 2 Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO

3 The Challenge: Supporting Increasing Customer Demand Today, your subscribers are generating ever-increasing voice and data traffic. But their experience as fixed subscribers often drives them to require flat fee subscriptions, which limits ARPU. To address this trend, you need to make sure that the TCO of every network investment is optimized, TCO being defined as the sum of the CAPEX amortization plus the OPEX. Mastering TCO requires a broad awareness of all factors that affect both CAPEX and OPEX, including interdependencies, cost drifts and unexpected side effects. It begins with the understanding that telecommunications equipment, itself, represents only about 20 percent of a radio site s TCO as shown in Figure 1, but that its features and performance have a direct influence on the remaining 80 percent (civil works and site equipment costs, as well as energy, transmission, operations and maintenance expenses). Figure 2 shows typical unit radio site TCO figures in three environments. In each environment, OPEX and civil works play key roles in TCO. Rural environments are coverage driven, requiring high radio performance to reduce the number of sites. Dense urban environments are capacity driven, requiring highly compact, flexible equipment that can fit the available space. In fact, sites are often very difficult to acquire or install in these dense urban environments. Figure 1. Alcatel-Lucent Decreases GSM Network TCO by 35 to 55 Percent Civil Works, Site Rental, Power Supply, Transmission, etc. Telecom Equipment CAPEX (Network OPEX and CAPEX Amortization) TCO 100% 75% Savings enabled by Alcatel-Lucent BSS solutions: From 35% to 55% 3 50% 2 1 Telecom equipment CAPEX contribution to RAN TCO is less than 20%... 25%... but Telecom Equipment features and performances directly influence all TCO contributors 0% Such savings are achieved through factor 2 enhancements compared to Alcatel-Lucent previous generation equipments. From 35% to 55% TCO savings thanks to Alcatel-Lucent complete TCO-minded boosted BSS portfolio Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO 3

4 Alcatel-Lucent BSS GSM Solutions The Alcatel-Lucent boosted BSS portfolio can lower TCO through optimal efficiency. It enables savings ranging from 35 to 55 percent, depending on the environment. These savings are enabled by recent factor-2 enhancements in key BSS characteristics, along with a systematic approach to addressing all TCO contributors. Whether you need to deliver mobile services to subscribers in dense urban areas, suburban communities or remote regions, Alcatel-Lucent BSS GSM systems can help you cut costs in a variety of ways. They address site rental, installation, shelter and power costs for each site location. In addition, they help you take a global approach to TCO reduction, by decreasing the overall number of your network s radio sites, reducing transmission costs and minimizing O&M costs while maintaining QoS. Alcatel-Lucent BSS GSM solutions also help lower TCO per subscriber, to enable new services for low-arpu market segments. These end-to-end GSM radio access solutions include base stations and their sub-elements, base station controllers, packet control units and transcoders. The features and performance of these elements have been examined for their role in overall TCO prior to inclusion in the boosted BSS portfolio. Now, their enhanced capabilities provide the foundation for solutions that optimize your TCO. Figure 2. Typical TCO, Depending on the Environment Site Acquisition and Installation Difficulty Site TCO (per year): CAPEX Amortization + OPEX Capacity-Driven (Lowest $ per Subscriber) Coverage-Driven (Lowest $ per km 2 ) Combination of Telecom and Site Equipment is Key 100% 75% Key Product Characteristics Capacity Flexibility Key Product Characteristics Coverage 50% 25% 0% Dense Urban (Outdoor + Rooftop) TCO Contributors RAN equipment Site rental Suburban (Shelter + Tower) TCO Contributors Civil works RAN equipment Roads and Rural (Outdoor + Tower) TCO Contributors Civil works Power Consumption OPEX Site Type RAN Equipment CAPEX Contribution to TCO 24% 17% 14% 4 Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO

5 Reducing Site Rental Costs Because site rentals are among the most important contributors to a unit site s TCO, Alcatel-Lucent solutions offer exceptional space savings. So indoor and outdoor site locations are much easier to find. Civil works are greatly reduced, and site rental costs can be decreased by half. To deliver these benefits, Alcatel-Lucent has developed the Twin TRX, a new generation TRX that s a key building block of our boosted BSS portfolio. This ultra-compact transceiver now provides twice the functionality of previous-generation TRXs, in the same amount of space. The Twin TRX is compatible with all Alcatel-Lucent base station cabinets. And up to 24 TRXs can be supported in a single Alcatel-Lucent 9100 Macro Base Station cabinet, when the Twin TRX is used as two different logical TRXs (capacity mode). With this exce ptionally compact design, it s easier to find new site locations and minimize rental expenses. Figure 3. Providing More Capacity in Less Space - the Alcatel-Lucent 9100 Macro Base Stations and Twin TRX in Capacity Mode 90 TRX/Sqm! New module = 2 TRXs EDGE in 1 housing TRX1 TRX2 22 TRX/Sqm! Up to 24 TRXs in a single cabinet. Sites location are much easier to find. Civil works are highly reduced. Site rental costs are divided by 2. Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO 5

6 Providing Zero-Footprint Deployment To reduce TCO for small- and medium-capacity suburban and rural deployments, Alcatel-Lucent BSS GSM solutions can deliver maximum coverage using an ultra-compact cabinet. These solutions incorporate another important building block of the Alcatel-Lucent boosted BSS portfolio, the flexible Compact Base Station Outdoor. This all-in-one base station combines a footprint of less than 0.5 m and a weight of less than 150 Kgs. Yet it can support up to 3x2 macro TRX configurations and provides the same radio performance as any other Alcatel-Lucent macro base station. The Compact Base Station Outdoor is easily installed in any outdoor location, including roofs, masts and poles. And the solution can also integrate battery backup systems (for AC versions), microwave or satellite transmission equipment or a solar panel for power supply. Removing Shelter Costs Figure 4. Maximum Coverage Using an Ultra-Compact Cabinet The Alcatel-Lucent 9112 Compact Base Station Outdoor A N B ev Option 1U Option 1U Option 1U A N B ev Dummy panel TRX TRX TRX TRX S U M A TRX Fan Stage Air Inlet 3x2 TRX Medium Power (Twin) A N B ev TRX Example CBO Deployments in China Up to 3x2 macro TRXs zero-footprint solution Outdoor base stations offer TCO- efficient solutions. To enable those cost savings, Alcatel-Lucent outdoor base stations can withstand humidity, sand, dust, earthquake, vandalism and climatic constraints. These capabilities are now enhanced by a direct air cooling system (DACS), which enables safe deployment of outdoor base stations in environments reaching 55 C ambient temperature. Because DACS incorporates highly advanced air filtering technology, these deployments remain safe, even in sandy, dusty or humid conditions. As a result, you can eliminate the costs of heavy shelters and air conditioning to house and cool an indoor base station. Case studies have shown that these streamlined outdoor deployments offer TCO savings of up to 35 percent, compared to indoor base stations in shelter deployments. With approximately 40,000 Alcatel-Lucent outdoor base stations deployed worldwide, these solutions have proven their resilience and dependability in wideranging conditions. 6 Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO

7 Decreasing Power Supply Costs Powering up the telecom equipment installed on a radio site can represent up to 35 percent of the total site TCO, especially in hot environments. These costs include the power supply equipment such as rectifiers, batteries, gensets, fuel tanks or solar panels and the energy cost itself, including electricity, fuel for the genset and maintenance of the overall power solution. Increases in energy efficiency need to start with design features that enhance the radio site s ability to withstand harsh environments. That s why Alcatel-Lucent provides outdoor solutions that can withstand harsh environmental conditions without power-hungry air cond itioning systems. Then, the overall energy efficiency of a base station site depends on the Base Station power consumption itself. Alcatel-Lucent offers best-in-class performance in lowering power consumption, both in normal and backup conditions. The Twin TRX provides a high level of hardware integration, enabling higher power savings than previous generation TRXs in full traffic conditions. In addition, Alcatel-Lucent is designing a Dynamic Power Save feature that lowers the BTS power consumption in no traffic conditions. As a result, typical power consumption for the Alcatel-Lucent 9100 Macro Base Stations is 30 to 40% lower than power consumption of other solutions, as certified by Telus, an independent certification body. They enable huge TCO savings on the complete power supply and power storage solutions of the Base Stations sites. Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO 7

8 Reducing the Number of Radio Sites To decrease TCO, you need to reduce the overall number of sites in your network, especially in coverage-limited environments. Alcatel-Lucent has added valuable new coverage features to the boosted BSS portfolio to help with these reductions. For example, the transmit diversity functionality (Tx Div) feature enables a very high equivalent output power up to 175W by using a single Twin TRX module in coverage mode. This allows you to obtain the same quality of coverage while using fewer radio sites. With the optional 4RxDiv (or TMA) feature, you can increase coverage even further for uplink limited environments. Based on your link budget, you can use different radio configurations to reduce the number of sites in remote rural and suburban areas. Typical savings are fully field proven at greater than 30 percent. Figure 5 illustrates the results of a case study in India, in the 1800 MHz band. Figure 5: Reduction in Sites Enabled by an Alcatel-Lucent Solution 45 Sites Without Tx-Div Tx-Div From 30% to 50% Gain on Sites 23 Sites With Tx-Div Signal Level >= -65 dbm Signal Level >= -70 dbm Signal Level >= -80 dbm Signal Level >= -90 dbm 8 Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO

9 Containing Transmission Costs Because transmission infrastructure costs can represent up to 30 percent of overall network OPEX, Alcatel-Lucent BSS solutions offer a full range of options to help you reduce these expenses. They include smooth and flexible transition paths to IP, along with backhauling options such as satellite bandwidth compression to enable remote site connection with a viable business case. Reducing TCO at BSC Sites Today, BSC capacity must address growing voice and data use while urban rental costs are greatly increasing. To help you meet this challenge, the Alcatel-Lucent boosted BSS portfolio includes large-capacity solutions using the Alcatel-Lucent Evolution BSC. It can support up to 2800 TRXs in one rack, while offering a footprint reduction of about 70 percent, compared to competing solutions. With this compact design, the existing floor space in a crowded technical room gains a significant extension. The fully field-proven, ATCA-based Evolution platform is ready for economical IP transport from day one, with no hardware changes. Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO 9

10 Streamlining O&M If not managed efficiently, O&M costs can also have a significant impact on network TCO. But with the Alcatel-Lucent Network Performance Optimization (NPO) tool application, you can quickly monitor and diagnose the Quality of Service provided by your BSS network. With exceptional automation of QoS analysis, diagnoses, and the ability to capitalize your own network engineering expertise within the tool, NPO enables up to 45 percent savings on operation and maintenance manpower costs, while supporting best-in-class QoS on the network. Decreasing TCO per Subscriber You can obtain further TCO savings by activating features that differentiate the quality of service among users. These features enable you to attract new low-arpu subscribers, without altering QoS for high-arpu users and without any additional capacity investments. These low-arpu features include grade of service differentiation with a preemption feature and queuing with priority, coupled with activation of half rate only for certain type of users. 10 Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO

11 The Alcatel-Lucent Advantage Because telecom equipment features and performances have a direct effect on your network s total cost of ownership, the Alcatel-Lucent BSS portfolio can drastically reduce all TCO contributors. This systematic approach enables: Innovative TCO solutions TCO reductions ranging from 35 to 55 percent, compared with competing solutions More capacity in less space Flexible zero-footprint deployments Removed shelter costs with field-proven, direct-air-cooled outdoor solutions Decreased power consumption High-quality coverage with fewer radio sites Minimized transmission costs Streamlined O&M Incorporation of new technologies, such as GERAN Evolution, by software upgrade only Figure 6. Alcatel-Lucent BSS Portfolio Summary Only 3 BTS modules to reduce spare parts Network Performance Optimization (NPO) tool Compactness Zero footprint RAN sharing Operation and Maintenance Site Rental Outdoor BTS to avoid shelter Compact CBO for min. footprint Coverage solutions to reduce number of sites Civil Works Site Equipment Telecom Equipment No air conditioning HEX or DACS (up to 55ºC ambient) Minimized gensets thanks to low power consumption High capacity BTS 24 TRX, BSC 2800 TRX New features through SW upgrade; full backward compatibility Technology evolution: MCPA Power Consumption Transmission Best-in-class power consumption 1283 W at full traffic for a 4,4,4 BTS IP Transport Flexible transmission including satellite, MW, etc. Alcatel-Lucent Boosted BSS Portfolio Addresses all Categories of Network TCO Enabling 35% to 55% TCO Savings Alcatel-Lucent BSS GSM Solutions Designed to Optimize Network TCO 11

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