Wireless Backhaul Evolution

Consolidation, Management and

Strengthening of the Data Network
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Introduction
Backhaul: Once the after thought of the wireless infrastructure
Explosive amounts of data back through the wireless
infrastructure in the last (5) years
4G and LTE are pushing the boundaries of the existing network
Now considered an essential element of the network:
The New Wireless Cash Cow?
Standard T1 copper network unable to meet the new topology
Wireless backhaul is essential to todays network
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Evolution of Wireless Backhaul
Initial providers only focused on voice
As network speed evolved (LTE),
data became the primary driver
Large data streams brought greater
demands on wireless backhaul
20% of copper backhaul is over-
burdened; rising to 50% by 2015
Todays copper T1 backhaul can
handle a maximum of 1.5 to 2 Mbps
Wireless backhaul needs to meet the
ever growing network requirements of today
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Wireless Market Evolution
Consumer Needs
Greater mobile flexibility through
voice, text, email and video
Faster data speeds for mobile
applications
Service Provider Needs
Lower infrastructure costs
High speed radio systems
Ethernet and microwave
backhaul compatibility
VoIP
DATA
Consumer
Provider OEM
The wireless infrastructure is data centric
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Mobile Data Replaces Fixed Data
Broadband subscribers to
reach 3.4 billion by 2014
80% of the users will be
mobile based
Fixed broadband growth
expected to remain near static
Service providers are being
driven by (2) distinct trends
Increase in smart mobile
devices
Data centric applications
4G networks in North America will increase
data traffic 26 fold from 2010 through 2015
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Wireless Backhaul Market Drivers
Cell Site Growth
Approximately 300,000 sites in the US
Expected to grow to 430,000 by 2015 in the US
Smart Phone Impact
Smart phones account for 15% of the market share today,
but they account for 78% of the data traffic
In 2010 over 3 million tablets were connected to the network
generating five times as much data as smart phones
Migration towards LTE (Long Term Evolution 4G)
Speeds increasing from ~3Mbps to 20-100Mbps
Bandwidth increasing from ~20MHz to 100MHz
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Three Main Transport Methods
Copper (T1s)
Fiber
Microwave
Copper/Fiber Hybrid Solution
Copper TDM great for voice, not so great for data
Fiber Ethernet great for data, allows transition to VOIP
Carrier Base Station
Mobile Switching Office
(provisioning, call routing, etc)
Access Network
Handset,
PDA or Laptop
Public Switched
Telephone Network
Copper
Fiber
Source: Fibertower Investor Presentation, April 2008.
Wireless Backhaul 101
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Wireless Backhaul Infrastructure Trends
Fiber quickly replacing
copper to meet LTE
bandwidth requirements
Point-to-point
microwave backhauled
to fiber to save cost
Ethernet over T1
driving savings, greater
data flow and greater
reliability
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Backhaul Transport Comparisons
Capex
Deployment
Speed
Opex/
Mbps
Technical
Flexibility
Usage/
Trend
End-User
Experience
Copper
(T1s)
Fiber
Microwave


US ~75%
ROW ~15%
US ~15%
ROW ~25%
US ~10%
ROW ~60%
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The Dark Side of Backhaul
Revenues may not keep pace with data
surges through the wireless network
Cost to deliver a byte of data will exceed
generated revenue by early 2013
Top two service providers are laying fiber to
the majority of their edge midstream networks
Lower tier suppliers may choose NOT to
upgrade the backhaul infrastructure
Cost to enter may cause a wait and see approach
Risk of increased rate of churn
Small regional/rural service providers may gain access to low
interest loans and funding via government broadband initiative
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Backhaul Technology Comparison


Source: Ceragon Networks Ltd. Mobile Backhaul: Fiber vs. Microwave, October 2009.
Microwave Fiber lines
Capacity Up to several Gbps
Unlimited
Regulation
Requires spectrum
Visual impact considerations
Requires right of ways and infrastructures;
renovation construction works after trenching
Distance influence
on costs and
deployment time
Cost per link with some
incremental cost with the distance
Fast deployment time
Costs increase per feet/meter
Deployment time increases linearly with distance
Terrain
Suitable for any terrain
Requires line-of-sight
between two link end-points
Becomes costly when trenching in difficult terrain
(mountains, deserts, swamps, rocky plains or jungles)
Accessibility - requires access for vehicles
along the trenching path
Reuse options
Equipment can be disassembled
and relocated somewhere else
Fiber, in most cases, cannot be relocated
Copper ducts may be reused for fiber lines
Climate
Influenced by climate
Adaptive modulation and a proper
link planning reduces climate effects
Normally, not influenced, except for floods
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Backhaul Technology Cost Comparison
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Conclusions
Data has become the dominant mobile
transmission vehicle of backhaul topology
Transition to LTE and VOIP
will only increase the burden
on the backhaul network
Providers that securely manage
data in their networks will be
financially successful long term
The wireless backhaul network
will be defined by:
Speed
$$$ (short and long term)
Terrain
Climate
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Contact:
Paul Misar
Director, OSP Cabinet Solutions
Paul.Misar@Emerson.com


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