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Satellite Backhaul Solutions to Reach the Next Billion

Daniel Enns Senior Vice President


Cellular backhaul
Market Challenges Opportunities

Deploying VSAT to support cellular backhaul Comtech EF Datas VSAT solution l ti

Traffic Growth is Faster Than.

Source: Unstrung Insider

Cellular Network Hierarchical Structure

Digital Di it l E1 Abis interface

70% OPEX




Current Challenges
ARPU ARPUs need d enhancing h i Revenue per voice minute decreasing not the only business model Next growth in rural areas with lower ARPUs and lower revenue per minute due to low population density and higher CAPEX More competition

Source: GSMA Latin America

Cellular Subscriber Growth

49.4% 49 4% of the worlds world s population have mobile phones Implementing solutions to enable mobile usage for populations residing in rural/remote locations is a significant challenge Mobile operators in Africa, Middle East, Latin America and Asia are using satellite space segment to backhaul traffic between remote cell sites and the networks Mobile Switching Center Total number of cellular sites backhauled by satellite is predicted to grow to 35,000+ sites globally by end of 2010 (CAGR = 28%)


Universal Service Obligation

Regulations to enable universal access to mobile services & broadband connectivity to people in rural and remote areas at affordable prices Most countries have a Universal Service Fund that levy contributions from mobile and fixed operators to subsidize the rollout of telecommunications networks Satellite will be a key enabler to delivering services

Peru will P ill reach h over 22.9 22 9 million mobile subscribers with a penetration of mobile p 79.3 lines per 100 inhabitants Peru has 747,235 i t internet t subscribers b ib



6th largest country in the world in terms of mobile connections with 116+ o co ect o s a dg o g by 50% a yea million connections and growing year Mobile penetration is only 50% of the population with connection growth expected to continue Vast majority of Indonesia's mobile connections are prepaid, while highspeed networks and mobile data services are currently limited Indonesia leads South East Asia in adopting Mobile Broadband service
The number of Mobile Broadband connections in Indonesia has surpassed the number of fixed broadband connections



The lack Th l k of f telecommunication t l i ti infrastructure i f t t is i the th main i obstacle in providing all Brazilians with broadband access Backhaul is a part of the PSTN high capacity core network, connecting ti the th access network t k to t the th incumbents i b t Backbone The Brazilians government policy was to spread the B kh l i Backhaul into t all ll Brazilian B ili municipalities i i liti as a Universal U i l Service Goal The Backhaul will provide broadband access to the majority of f th the population l ti

Wireless Backhaul via Satellite

Total Wireless Backhaul via Satellite Market
$600.0 30.0


Total Revenues ($millions) In-service Units (000s)










$2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: NSR


Deploying VSAT to Support Cellular Backhaul

Satellite Efficiency for Wireless-Cellular Backhaul

Source: Ericcson, Comtech, Intelsat


Example VSAT Access Technologies

Courtesy of


VSAT Access Technology Advantages & Disadvantages

Single Channel Per Carrier (SCPC)
Generally provides deterministic bandwidth and superior Quality of Service (QoS) Does not lend itself easily to sharing

Time Division Multiple Access (TDMA)

Well suited for sharing Does not provide deterministic bandwidth or QoS Unsuitable for many y applications pp Most vendor implementations suffer from significant inefficiencies
Legacy outbound encapsulation schemes with very high signaling overhead Poor spectral efficiency of the TDMA return TDMA carrier link budget based on most disadvantaged remote in the group Remote BUC/SSPA sized for the transmission rate of the TDMA return High jitter and packet loss unless the links are significantly over provisioned Bandwidth allocation delays Generally require an annual maintenance contract for support 15

Comtech EF Data Datas s VSAT Solution

Global Leaders in Cellular Backhaul Solutions

Our subsidiary, Memotec, supplies innovative optimization solutions for cellular backhaul networks
Satellite and terrestrial 2G/3G and DCME optimization solutions for GSM and CDMA networks, as well as disaster recovery solutions for mobile applications

Comtech EF Data is the recognized global leader in satellite bandwidth efficiency and link optimization
Our infrastructure products (modems, amplifiers, converters, etc.) are i t ll d in installed i 160+ countries ti Our advanced solutions enable commercial and government users to reduce OPEX/CAPEX and to increase throughput for fixed and mobile / transportable satellite-based applications

The flagship Th fl hi CX Series S i product d t enables bl GSM operators to dramatically reduce network operating expenses by cutting transmission costs and extending the service i capabilities biliti for f evolving l i networks Memotecs solution is proven globally with equipment deployed in over 200 cellular network operations throughout the world

New Advanced VSAT Series

Provides P id a superior i alternative lt ti to t those th requiring high performance, high quality services in a Hub-Spoke environment Incorporates advanced technologies developed by:
Comtech EF Data Comtech AHA Memotec
Common Applications Cellular backhaul with RAN Optimization Universal Service Obligation (USO) ( ) networks Corporate networks Internet access (ISP) Hybrid networks supporting IP & E1 transport 18

Provides the most efficient:

Physical layer transport without compromising latency Link layer transport Higher layer transport Transport for Radio Access Network (RAN) backhaul

Advanced VSAT Series

Key Features
Advanced Forward Error Correction (FEC)
DVB-S2 for the shared outbound
Better performance compared to VSATs using other FEC or DVBS2 Short FEC Frame

VersaFEC short-block low latency LDPC for the return channels

Far better performance compared to other VSAT products

Adaptive Coding and Modulation (ACM) capable

With the ability to maximize throughput under all conditions (rain fade, inclined orbit satellite operation, interference or other impairments), ACM allows each remote to achieve maximum throughput Maximizes network efficiency and availability

Advanced VSAT Series

Key Features
Integrated g router
Header Compression Payload Compression Low Overhead Encapsulation Quality of Service (QoS)

This combination of features provides

The highest quality service Minimal jitter and latency for real-time traffic Priority treatment of mission critical applications Maximum bandwidth efficiency y

Seamless E1 and IP/Ethernet operation

Allows simultaneous E1 and IP/Ethernet operation in a hub-spoke topology, while supporting advanced capabilities

Typical IP Network

2 -S n d B u DV tbo u C O FE n a rs tur Ve Re

Gigabit Ethernet

CDM-800 Gateway Router

GigE CDM-840 Remote Router


CDD-880 Multi-Receiver Router

CDM-840 CDM 840 Remote Router


GigE CDM-840 Remote Router


Advanced VSAT Series

Key Features
RAN Optimization
Si Significantly ifi tl reduces d satellite t llit bandwidth required for cellular backhaul Provides maximum user control by allowing them to select the level of RAN optimization to achieve desired link quality and bandwidth savings Maintains superior voice and service quality even under WAN congestion with pre-emptive bandwidth management g Provides a seamless migration from a legacy E1 RAN to an all IP RAN


Typical Network - E1 RAN and IP

E1 CDM-800 Gateway Router

S2 d B- un V D tbo u O EC aF rn s r tu Ve Re
E1 GigE CDM-840 Remote Router

E1 BSC CXU-810 RAN Optimizer CDD-880 Multi-Receiver Router

CDM-840 CDM 840 Remote Router

E1 GigE

E1 GigE CDM-840 Remote Router


Advanced VSAT Series Benefits

Reduces OPEX & CAPEX
OPEX Reduction
Highest Spectral Efficiency
Most efficient physical layer in both directions Low overhead framing

CAPEX Reduction
Use of VersaFEC reduces the sites transmit EIRP (smaller BUC can be used) BUC/SSPA sized for site traffic requirements Integrated RAN optimization eliminates the need for a separate mediation device at Remote These features can easily provide 30-60% total CAPEX savings compared to legacy VSAT

Most efficient transport of higher g layers y

Payload compression Header compression

Integrated RAN Optimization These features can easily provide 30-60% bandwidth savings compared to legacy VSAT


Advanced VSAT Series Benefits

Seamless S l migration i ti from f an E1 RAN to an all IP RAN S l bl Scalable
Data rate Network size

I Improved d Service S i Quality Q lit

Guaranteed Bandwidth
Once provisioned, the bandwidth is always there

Low Latency
No wait for bandwidth allocation

Improved Availability

Low Jitter
Always available bandwidth allows significantly better jitter performance without the need for excessive buffering and segmentation and reassembly


Typical Cellular Backhaul Savings

(Typical Ku-band Operation)
CAPEXSavings S i
(Typical Kuband)

(Typical Kuband)

100 6

100 6



9 m Hub & 1.2 m Remote




100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

AdvancedVSA ATSavings


500 400 300

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

AdvancedVSAT TSavings

500 400 300 200


Data Network Savings

(Typical Ku-band Ku-band, 512 kbps/128 kbps CIR per Site)

Advance edVSATSavings


CAPEXSavings OPEXSavings



0% 100 200 300 NumberofSites 400 500

9 m Hub & 1.2 m Remote


Unmatched Network Efficiency for Hub-Spoke Networks

Leveraging our global leadership in cellular backhaul solutions, we developed products that are specifically engineered for cellular backhaul and highperformance IP transport in hub-spoke network environments i t Our VSAT solution
Provides significantly superior quality service compared to other VSAT solutions Minimizes OPEX and CAPEX


Comtech Enables Service Expansion

As y you p prepare p for service expansion into rural and remote locations, consider using the global leader in cellular backhaul solutions O advanced Our d d technologies t h l i can enable you to:
Realize bandwidth efficiencies Scale your network Reduce your required capital expenditures and operating expenses

Mobile operators globally are using Comtech equipment to:

Expand into low density regions Replace legacy networks


Contact Us: 2114 W West t 7th St Street t Tempe, AZ 85281 USA Tel 1.480.333.2200 1 480 333 2200 FAX 1.480.333.2540