Backhaul Strategy

Developing a Backhaul Strategy for 4G and Beyond
Ben Parker

1
Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

What has happened
• The web is the medium
– The web has become core to modern society

• Internet as a Platform
– There is an irreversible shift of the data moving to the cloud

• IP
– No longer are there disparate networks for each application

• Fiber
– – – – EBH, 4G FTTH The death of the PSTN is looming Bandwidth consumption is growing as fast as it can be delivered

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Mobile Data Traffic
• The volume of traffic is growing.
– 3G is driving double-digit growth Quarterly – 6X Growth from 2010 to 2016

QoS
– As we move toward 4G and LTE, IP voice, IP video and data grow each of which may be real time (with low delay and latency demands) and each with different quality of service requirements.

The Traffic is Changing.
– DROID! – iPhone – Massive metamorphoses from Feature Phones and Laptops to Smartphones

• •

The traffic is becoming more critical
– Mobile only Homes drive dramatic changes in backhaul traffic

ARPU is Flat
– Traffic is growing with dramatic speed – Data plans are generally quite low

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Drivers for Change
• Video
– IP Video – CDNs

• Mobile
– Wireless Web – Mobile Only Homes

• Connected Devices
– Content Portability – Web enabled TV – Most electronic devices will be connected to the Internet

• Software
– Google, Apple, MS,HP and others are gaining influence in the telecom market – HTML5 is emerging as the way to deliver ubiquitous multi-screen applications

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

New Consumers
• All digital kids will be adults
– Different perspective on customer service – On-Demand everything – Open
• They will demand ubiquitous capabilities across all end-points • They will vote with money

– Different perspectives on privacy
• No concerns about personal information in the cloud

• Eastern Culture will have a much greater influence
– The rapid development of the BRIC will influence content and delivery

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Challenges for Verizon
• >40,000 Cell Sites • 80 Mbps Peak Sector Throughput • ~250 Cell Sites per MTSO/MSC
Traffic Gap between traffic Gap between Gap between traffic traffic and revenue and revenue increases

Revenues

Voice Dominant

Data Dominant

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Smartphones • Massive migration from feature phones to Smartphones
– Feature phones often never have a Data Connection – Smartphones are “always on” – 300% to 500% Growth of Smartphone Subscribers
• Many are existing customers transitioning to Smartphones

– All LTE devices will be Smartphones or Embedded or USB data devices

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Drivers
• • 4G and Beyond
– The need for additional link capacity continues to drive mobile backhaul deployments.

Cost
– Cost per bit transported remains a critical component of the mobile backhaul CapEx and OpEx models. – Ethernet and optical transport suppliers have to varying degrees provided significant enhancements to their OAM capabilities, remote management tools, and the ability to prioritize traffic on a per-service/per-subscriber level. – Standardized features such as OAM are being built to adhere to IEEE and ITU standards.
• Most vendors are also achieving various MEF certifications for Ethernet service delivery, further promoting the focus on interoperability.

Growth & Revenue
– As traffic growth continues to ramp, we are faced with the challenge of increasing their share of the revenue stream beyond that of just providing connectivity. – Service Providers are turning to new business models not only to facilitate the launch of new innovative services, but also to participate actively and share in these lucrative new revenue opportunities.
Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Backhaul Objectives
• Transition from TDM to packet-based backhaul.
– TDM is a largely inefficient use of expensive bandwidth. – Voice traffic on a TDM network utilizes, at best, 40 percent of the bandwidth. – Data utilization is no better.
• Data traffic will burst up to the full capacity of the line and disappear the next millisecond, but your TDM channel is nailed up for the duration of the session.

– Packet networks are much more efficient at filling the channel, which brings us to the next strategy.

Unify the voice and data networks’ mobile networks, particularly for backhaul.
– Service providers do not want to jeopardize their voice revenue. – Ideally they would cap their TDM voice network and put all new customers as well as all data traffic on the IP network. – The economics of provisioning, managing and maintaining separate networks do not add up in the 2010 to 2011 network. – Develop an architecture to implement a backhaul that makes efficient use of the bandwidth and doesn’t just maintain, but improves, the level of service to their voice customers.

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Simplify with Ethernet
• Ethernet is cheap and ubiquitous
– With the emerging Carrier Ethernet transport standards of PBB-TE and MPLSTP, – Service providers will finally be able to achieve per-flow end-to-end monitoring and management, sub-50ms recoverability and scalability—the attributes identified by the Metro Ethernet Forum (MEF) for carrier-grade Ethernet.

The economics of using Ethernet in the backhaul are compelling as the backhaul requirements of the MNOs grow to 10 Mbps, 100 Mbps and beyond

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Backhaul Architecture
CDMA
Cell Site LEC, Cable Company Microwave MSC Site

MSC ECP

1x

DO MSPP FPS

NxT1 or Ethernet

CSR
10/100/1000

1x RNC

LTE
10/100 Ethernet Backhaul

DO RNC

eNB IP Camera MME

OAM VLAN CPE VLAN DO VLAN 1x VLAN S1-U VLAN S1-AP VLAN CPE VLAN

SGW
Highest QoS High QoS Lower QoS EVC Voice & Delay-Sensitive Traffic Control and Signaling Best Effort Data

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Backhaul Engineering Guidelines
Minimum Performance Goal 300-500 100 99.99% 300-500 100 99.99% 100-300 30 99.99 100-300 30 99.99%

Demographic Guidance Large Cities

PIR (Mbps) CIR (Mbps) PDR PIR (Mbps) CIR (Mbps) PDR PIR (Mbps) CIR (Mbps) PDR PIR (Mbps) CIR (Mbps) PDR

Medium Cities

Small Cities

Rural Cities Highways and Freeways not Addressed Above

PIR = Peak Information Rate – Future Target Peak Rate CIR = Committed Information Rate PDR = End-to-End Packet Delivery Rate

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

The Backhaul Evolution
• Transition to a combination of fiber- and microwave-based backhaul. • Fiber First!
– Key to future success is designing their backhaul network today to meet the gathering storm of data traffic. – Implement fiber where the return on investment is obvious
• Fiber is the only media with, for all practical purposes, no limitation in speed or distance.

– It is the only technology that will virtually guarantee that your backhaul network is future-proof. – If you don’t need 50 to 300 Mbps of capacity and don’t own your own facilities, microwave may be less expensive. – Implement microwave where speed of deployment and Capital Costs are critical, and where the growth trajectory of the traffic can be satisfied by microwave for at least 36 months.

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

The End of Alloys
• Transition away from copper, both T1s and twisted pair.
– – – – – The copper plant is aging. It is already responsible for the majority of network outages. It will not keep pace with traffic demands. It will not meet the performance goals of 4G/LTE. Copper will become less and less economically viable as we move toward 2012.

Although, we cant throw the baby out with the bath water
– There is always a speed/distance trade-off with DSL. If you are within 500 meters of fiber plant, you have it made. – It is possible to bond DSL connections to speeds up to 500 Mbps. – However, if you are not so fortunate to have a Fiber Hub nearby your choices are more limited. – The second issue is a regulatory one, DSL connections are being sold as enduser connections when, used for backhaul, their function is really wholesale connectivity, and therefore subject to different unbundling regulations.
• The facilities-based providers are arguing this issue with their regulatory boards. If they succeed in their arguments, xDSL as a leased backhaul strategy will no longer be a bargain

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Microwave
• Wireless microwave backhaul has a number of characteristics to recommend it, provided the spectrum is available:
– – – It is rapid to install Reasonable CapEx It is flexible—able to be installed virtually anywhere.

• •

Because of these attributes, it is the backhaul technology of choice for the high percentage of carriers that do not own their facilities. Microwave accounts for almost 70 percent of all backhaul installations today.
– – – – The bulk of the cost of microwave backhaul (between 30 percent and 40 percent) can be attributed to the antenna lease. Spectrum leases can also account for up to 30 percent of total costs.
• Microwave, with a channel size up to 50 MHz, has a practical limitation, in terms of data rate, of 200 Mbps.

With some performance tuning (e.g. combining multiple radios and channel sharing with high order interference cancellation) microwave can approach GigE speeds. In addition, the two millimeter “e-bands”—71 to 76 GHz and 81 to 86 GHz—offer a higherspeed wireless backhaul option.
• • E-band channel sizes are 100 times greater than the largest of the microwave bands, data rates of 1 Gbps and beyond for point-to-point connections can be achieved. However, the e-band is very sensitive to rain fade, again limiting the practical deployment to one to two miles, particularly for 4G/LTE implementations that need to achieve five nines of availability.

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Cost Based Decision
80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 20 40 120 Mbps 140 150 $
MW 1+0 MW 1+1 FTTCS - Option A FTTCS - Option B FTTCS - Option C

• Very tactical decision making process to select Microwave over Fiber • Cost of FTTCS • Path Availability • Tower Loading • Microwave capital costs are declining rapidly • Capital costs for Construction of Fiber compared to Microwave should drive basic GoGoNo/Go • MRC for Tower Lease should not be excessively more expensive that Fiber
Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Packet Microwave
• • • Ethernet in the wireless backhaul network is growing rapidly, with more than 65 percent of new microwave implementations supporting Ethernet. In addition to using Ethernet over microwave to support data traffic, Ethernet can be used to aggregate TDM and Ethernet transmissions onto a packet microwave backhaul. Ethernet, in the form or pseudowires or eventually MPLS-TP and PBB-TE, can be the aggregation technology connecting the legacy TDM RAN technologies with ngRAN with greater efficiency than the separate TDM and packet streams

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Adaptive Modulation
– New Ethernet radios support Adaptive Modulation
• Takes advantage of available radio bandwidth during fade events • Increasing overall throughput but guaranteeing committed services

– Key Aspects in Evaluating Microwave Technologies
• Error free modulation switches (with fading up to 100 dB/sec) with any type of services (voice, PseudoWire, Ethernet) • Restoration time from 4QAM to 256QAM less than 2 ms

Ethernet Priority 4

256 QAM
Not committed traffic Priority 3 Rreal time traffic Priority 2 Voice -Guaranteed Priority 1

64/32/16 QAM

256 QAM

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

Thank you

Confidential and proprietary material for authorized Verizon Wireless personnel only. Use, disclosure or distribution of this material is not permitted to any unauthorized persons or third parties except by written agreement.

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