Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul

Transcription

1 Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul Michael Howard, Moderator Co-founder and Principal Analyst Infonetics Research Ran Avital VP of Strategic & Product Marketing Ceragon Networks Craig Easley VP of Marketing & Product Management Accedian Abel Tong Vice President of Marketing Omnitron Hal Roberts Systems Engineer and Architect II Calix Organized by:

2 Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul Trends, Market Forces, and Drivers Affecting MBH Business Models

3 Mobile cell site backhaul BTS NodeB HUB RNC/BSC RNC/BSC enodeb RNC/BSC Cell site RNC/BSC site 1 st Mile (LRAN) 2 nd Mile (HRAN) Network between the BTS/NodeB/eNodeBs at a cell site to the BSC/RNC site, whether over air, copper or fiber

4 IP/Ethernet Stages to LTE LTE enodeb 2G BTS 3G NodeB Ethernet BSC RNC Internet Gateway All IP/Ethernet 2G BTS 3G NodeB E1/T1 Ethernet BSC RNC Hybrid/Dual Backhaul 2G BTS E1/T1 BSC PDH Backhaul 3G NodeB RNC IP/Ethernet backhaul solves ARPU-traffic disconnect today and backhaul problem for HSPA today and LTE tomorrow

5 Data dramatically increases traffic load 40 TB 30 Live network KPI data Operators: 9 Europe, 4 APAC, 6 Americas Average Y-Y growth over 500% Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Total HSDPA Traffic per Day Operators increasing mobile broadband capacities via EDGE, EV-DO, HSPA, WiMAX, LTE but flat-to-slow ARPU changes JRA Source: Nokia Siemens Networks

6 ~3M new MBH connections ,000 7,000 6,000 Worldwide Mobile Backhaul Connections: Installed vs New Installed Connections New Connections Connections (K) 5,000 4,000 3,000 2,000 1,000 0 CY08 CY09 CY10 CY11 CY12 CY13 CY new: ~1.4B mobile subs, ~1.2B mobile broadband subs More base stations, cell site connections (+equipment), higher backhaul capacity Connections and bandwidth-per-connection drive equipment spending Source: Infonetics Research Mobile Backhaul Equipment and Services, October 2010

7 Costs Drive Operators to IP/Ethernet Ethernet s cost-per-bit drop almost matches the 2x to 10x traffic uptick IP/Ethernet naturally fits WiMAX and LTE as well Source: Infonetics Research Mobile Backhaul Equipment and Services, October 2010

8 New cell site connections go Ethernet 1,600 Worldwide Mobile Backhaul New Connections by Technology Number of New Connections (Thousands) 1,400 1,200 1, CY08 CY09 CY10 CY11 CY12 CY13 CY14 Ethernet -400 PDH Ethernet copper SONET/SDH and WDM Microwave-TDM ATM over PDH Ethernet fiber Microwave-Ethernet and dual TDM/Ethernet Other New connections move quickly to mostly IP/Ethernet, whether fiber, copper or microwave Source: Infonetics Research Mobile Backhaul Equipment and Services, October 2010

9 Installed mobile backhaul connections 1 North America 7 Rest of World: EMEA, APAC, CALA Fiber Copper Microwave Fiber Copper Microwave % of installed MBK connections that are FIBER North America Rest of World % 25% % 35% Source: Infonetics Research Mobile Backhaul Equipment and Services, October 2010

10 LTE Deployments Are Becoming a Reality 180 Operators in 70 Countries Investing in LTE 128 Commercial Commitments - Another 52 Pre-Committed Trials Countries with Commercial LTE Service Countries with LTE Network Deployments On-going Countries with LTE Network Trial

11 Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul Market Forces Bring on Challenges to Business Models and Network Operations

12 Spectrum allocation Rethinking Network Concepts S1 S4 Wireless Native 2 Ring S5 S1 Fiber site S3 S2 Protection means redundancy Mobile traffic is symmetric

13 Latency Requirements Rethinking Network Concepts Actual Broadband Wireless Access deployment Longer Radio chains & Rings Shorter recovery times More broadband Services 13

14 Top Synchronization Problems Frequency All technologies need 50ppb Actually 16ppb for MBH Phase (ToD) All TDD need 1-3us Some CDMA need 1-3us Advanced Features 0.2us 3us MBMS Coordinated MIMO, CoMP Location Mobile Technology CDMA2000 Frequency Phase ±50 ppb Goal: <3µs GSM 50 ppb N/A WCDMA-FDD 50 ppb N/A WCDMA-TDD 50 ppb 2.5µs TD-SCDMA 50 ppb LTE (FDD) 50 ppb N/A LTE (TDD) LTE MBMS 50 ppb 50 ppb FemtoCell 250 ppb N/A WiMAX (TDD) 2 ppm absolute, ~50 ppb between base stations 3µs inter-cell phase difference **3µs inter-cell phase difference **1 µs inter-cell phase difference Typically µs

15 High Quality, Highly Reliable Data Mobile backhaul applications impose demanding requirements for backhaul networks Scalable bandwidth (50Mbps to 1Gbps) Low latency (5ms) Minimal jitter (1ms) High availability (99.99% with 50ms protection switching)

16 Multi-Provider Networks 250,000 cell sites, 2.5 Wireless Carriers per site Most Wireless Carriers have data backhauled by a different provider (other than themselves)

17 Multi-Provider Network Requirements Backhaul provider needs Deliver Carrier grade Ethernet transport services Deliver bandwidth plus meet strict SLA requirements Wireless carrier needs Carrier-grade Ethernet at to ALL cell sites Leverage backhaul providers for coverage to off-net sites Standard interfaces for managing services

18 Mobile Backhaul Application Study 3G+/4G Deployments Require Ethernet Business Model for Accelerated Build out to over 40,000 Towers Buying vs Building Access to Towers From over 50 Alternative Access Vendors (AAVs)

19 Mobile Backhaul Service Creation Each Access Provider Network is Unique Performance characteristics CoS Settings / Burst-tolerance

20 Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul Challenges Require New Solutions to Improve Business Models

21 More capacity with MWV Spectral link Wireless Network Modulation Header compression Payload compression Latency System gain Adaptive Power ACM QoS mechanism Resiliency (ABR, ) Asymmetricity At every level

22 Less Latency up to 70% reduction in frame delay

23 Protect, don t duplicate Protected-ABR: Adaptive Bandwidth Recovery Conventional Protection (Based on SNCP 1+1) ABR Protection (Adaptive Bandwidth Recovery) Alternate path reserved and allocated! Alternate path reserved AND available for extra traffic Standard capacity Double capacity More bandwidth for broadband for free! E1 traffic on main path E1 traffic on main path Double the ring capacity - at no extra cost!

24 Asymmetrical Bandwidth Download Upload Aggregation Network BTS Aggregation / Hub site Download Upload Aggregation Network BTS Aggregation / Hub site 50% More DL Capacity - Enhanced User Experience

25 Solutions for Frequency Synchronization 1. Adaptive Clock Recovery Methods Can operate over any Ethernet network Susceptible to excessive packet delay variation Example 1: PWE3 T1/E1 transport over packet network Example 2: IEEE 1588v2 is an adaptive clock recovery method 2. Synchronous Ethernet - SyncE Requires an unbroken chain of SyncE network elements Impervious to packet delay variation High performance

26 Frequency Synchronization Adaptive CR Field Example from an ITC in Minnesota 13 exchanges 10k IOC lines 4K CLEC lines Sync Flow T1s Deployed 70 Cell Sites Adaptive CR No slips/errors

27 Phase and ToD Synchronization Why not GPS everywhere? Susceptible to jamming or intentional degradation Not good for Femtocells and indoor DAS IEEE 1588v2 High packet delay variation or upstream/downstream asymmetry prevents accurate phase and ToD Solution: All network elements must act as Boundary Clocks or Transparent Clocks, increasing accuracy Hybrid Timing Architecture Pick any two Sync over Mobile Backhaul using IEEE 1588v2 Sync via GPS Sync via Atomic Clock Stabilizes during outage

28 Phase and ToD Synchronization Solution for Phase Network must be all BCs or TCs Sync Flow Solution Phase and Frequency SyncE and 1588

29 Ethernet Service OAM Network Interface Devices provide Intelligent Demarcation to Monitor the Entire Ethernet Service IEEE 802.1ag End-to-End Connectivity Fault Management Fault Management, Service Monitoring, Loopback ITU-T Y.1731 End-to-End Performance Monitoring Delay, Delay Variation, Frame Loss, Service Availability Service OAM can be run at multiple levels, across multiple Networks for Different Stakeholders

30 High Quality, Highly Reliable Data Solution Intelligent demarcation devices enable Service OAM Ethernet Service OAM for SLA assurance

31 HybridNID Feature and Benefits Feature Intelligent Ethernet Demarcation (Full NID Functionality for Multiple Providers) Single HybridNID Device (vs. 2x NIDs) Dual Management with Secure Access Zero-Touch / One-Touch Provisioning Tiered Database Backup and Restore Standards Compliance Benefit Full NID functionality including Carrier Ethernet services, Policing/shaping, Ethernet SOAM, SLA Assurance Lower cost, higher reliability, easier to use, deploy, maintain, troubleshoot Support 2 operators, protecting each domain with settable access privileges Ease of installation and turn-up; Reduce cost, increase speed to market Each operator can backup/restore configuration data for the operator Standards promote interoperability, 2010 EANTC Interoperability Event

32 Circuit Validation and Turn-up Circuit Validation Verify delivered circuits Remote diagnostics Service Birth Certificate RFC-2544 turn-up test Throughput, loss Delay, Delay Variation Inconsistent Performance from Access Providers Required Oversight Monitor SLA performance Verify SLA objectives SLA EMS Network Network Loopback/reflector for test sets

33 SLA & Performance Monitoring Real-time, per-second performance reporting Guaranteed deliver Ultra-low telemetry bandwidth Over 20 detailed KPIs Charts Reports Dashboards

34 In-Service Throughput Testing Non-disruptive SLA validation Layer 2 & 3 traffic generation & analysis Unidirectional: up/download testing NO waiting for maintenance windows Capacity and throughput testing CIR, EIR, CBS, EBS validation Delay, FDV, Out-of-Order, Frame Loss NO disruption to customer traffic Customer Traffic Traffic over time Generated Y.1731 Traffic 1,000 Mbps CIR = 200 Mbps Traffic Generator Provider Network Traffic Analyzer Uses end-customer traffic as part of the test pattern NID generates supplemental test traffic in real-time

35 Flexible Service Creation / Service Mapping Traffic Classification Per-Flow Traffic Manipulation Classify S-VID Push EVC S-VID Pop CoS A P-bit Read EVC P-bit Re-Map CoS B EVC EVC Backhaul Provider Backhaul Provider EVCs S-Tag Creation CoS Marking / Re-Marking

36 Real-time Traffic Engineering Bandwidth Profile Traffic Shaping Tower Link Dropped Packets Provider Priority Queues Real-Time Queue Fast-PAAs Priority Other H-QoS >CIR Provider Priority Marked Establish CIR, EIR, burst profile, CoS Shapes Bursty Traffic into Profiles

37 Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul Service Providers are Implementing these new Solutions

38 Implementing more capacity Access Aggregation 3xE1 for 3G (Ethernet) 1xE1 for 2G First Mile On top of the TDM, required capacity: 6Mbps per site for data Traditional Planning Radio Channel Optimization Ethernet capacity per site Traffic Traffic Model 1 Model 2 28MHz None MHz None F 3xE1 for 3G (Ethernet) 2xE1 for 2G Bandwidth recovery Radio Channel Optimization Ethernet capacity per site Traffic Traffic Model 1 Model 2 14MHz ABR Increase capacity by applying all 3 techniques 1. ABR: Adaptive Bandwidth Recovery 2. Asymmetrical: Bandwidth planning and delivery 3. Compression: Multi layer header compression Risk free by using 1. Low delay: jitter and transport 2. Synchronization: complete tool kit Asymmetrical Radio Channel Optimization * Traffic Models based on specifications in ITU-T G.8261 Ethernet capacity per site Traffic Traffic Model 1 Model 2 21MHz ABR MHz ABR times more capacity for broadband By-product: better spectrum reuse

39 Packet Mobile Backbone Mobile operator in Puerto Rico Implemented a protected IP backbone Serving both voice and data Traffic 16 long haul hopes with low latency requirements All indoor with limited rack space Solution Compact long haul all packet microwave radio Strict RFC2544 tests for Low latency Ring optimized RSTP for fast recovery E-t-E Ethernet services management

40 Calix Case Study - GPON Cell tower in a remote location requires fiber transport Nearest fiber route is near exhaust Base station is housed in remote cabinet No mounting space for rack mount gear Immediate need is for T1, but expect Ethernet request in near future Solution: GPON transport Wall Mount 760GX Wall Mount 766GX for T1 and Ethernet service delivery Locally powered by 24VDC from base station cabinet Integrated Ethernet OAM Base station Cabinet NEMA type telco enclosure Mobile Operator provided 24VDC power

41 Calix Case Study Active Ethernet Cell tower in an urban location requires fiber transport Nearest fiber run has significant spare fiber Base station is housed in hut 50Mbps Ethernet is requested, with higher speeds expected in near future Solution: Active Ethernet Transport Rack Mount 760GX Ethernet service delivery Base station hut Rack Mount 760GX Locally powered by 24VDC or 48VDC from hut rectifier system Integrated Ethernet OAM

42 HybridNID Mobile Backhaul Challenge: Deliver Ethernet Backhaul with strict SLA and SOAM requirements Wireless Carrier Monitors service from the Mobile Switching Center to the Tower Tracks frame delay, delay variation, and frame loss Uses HybridNID SOAM for service assurance and troubleshooting Backhaul Provider Establishes transparent CE service across the backhaul network Delivers Ethernet bandwidth plus Classes of Service Provides full-featured, Carrier Ethernet NID functionality with SOAM

43 Ethernet Service OAM for Multi-Provider Backhaul Provider Network Wireless Carrier Network Backhaul Provider Network End-to-End Ethernet Service Wireless Carriers Monitors Wholesale Tunnel Uses Ethernet Service OAM endto-end across multiple networks Backhaul Provider Uses Ethernet Service OAM Collects delay, variation, frame loss metrics across the Tunnel Ethernet OAM remote fault and SLA monitoring simplifies deployments and reduces operational costs

44 Remote Provisioning Accelerates Rollout 1 Automated Deployment Remote install Tech connects NID to n/w & power Automated Deployment Remote Installation 2 Discovery Management IP address Port / media detection & negotiation Advertises itself to EMS TM EMS adds newly installed units to inventory Workflow-based provisioning configures units using operator s standard procedures Units join dynamic groups with predefined backup, inventory, upgrade & security policies 3 Inventory Tracking NID Beaconing NID EMS

45 Automation Accelerates Deployment Flexible Inventory Manager Associates installed NIDs with automated inventory procedures Automated Provisioning Backup Restore Audit Backup Restore Inventory Audit Security

46 Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul and now a quick word from our sponsors

47 Ceragon New for North America: Compact Long Haul Ceragon networks acquires Nera networks, creating the Premier Wireless Backhaul Specialist NASDAQ: CRNT Available Affordable

48 Why Calix? Transport options: GPON or Pt-Pt GE Deployment options: Wall Mount or Rack Mount Service options: T1 or Ethernet Timing Support: Adaptive or Differential Ethernet OAM: 802.1ag, 802.1ah, Y.1731, RFC-2544

49 About Omnitron Systems Headquarters: Irvine, CA Incorporated since 1992 Design and manufacture products in US Products Intelligent Network Interface Devices (NIDs), including HybridNID TM Carrier-Grade Fiber Access products CWDM / TDM Multiplexers Power over Ethernet products Media Converters

50 About Accedian Mobile Backhaul Service Assurance Ethernet & IP service assurance Service demarcation: UNI Type I & II Loopback / Test Reflector Low Latency Ethernet OAM Integrated testing Real-time performance monitoring Carrier Ethernet service creation Service Mapping (CoS Re-Mapping) Bandwidth Shaping and Profile Assignment Service deployment, simplified Plug & Go Automated remote installation Making Ethernet Work for Mobile Backhaul M S C Backhaul Network

51 Latest Strategies and Best Long-Term Solutions Successful Business Models for Mobile Backhaul Conclusions Traffic growth mobile broadband--compels changes to mobile network designs Mobile operators and backhaul transport providers moving to IP/Ethernet backhaul Microwave based backhaul offers headroom for still further growth Most operators will use PTP IEEE 1588v2 for timing/clock synchronization on packet networks Good OAM tools available to help provisioning and automation