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Fiber isn't everything: Microwave's critical role in North American backhaul
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FIBER ISN'T EVERYTHING
LT E BAC KH AU L AN D IP M IC R O WAVE' S C R IT IC AL R O L E

Presented By: Ron Kline, Principal Analyst, Network Infrastructure, Ovum Stuart Little, Director of Marketing, Aviat Networks
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Fiber Isn’t Everything:
LTE Backhaul and IP Microwave's Critical Role

Agenda:
• LTE's impact on backhaul requirements

• LTE backhaul options analysis (copper,

fiber, microwave)
• Leasing vs. owning backhaul • Can IP-based microwave meet LTE

requirements?
• Next generation IP microwave capacity

features
• Network evolution and the important

role of hybrid microwave

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AVIAT NETWORKS | AUGUST 17, 2010

LTE's impact on backhaul requirements
• Mobile network backhaul

requirements are increasing dramatically
• Average Moving to ~

Theoretical sector maximum backhaul bandwidth required by technology versus the average expected
LTE R8 (20MHz) LTE (10MHz) WiMAX (10MHz) HSPA+ R7 HSUPA R6 HSDPA R5 EV-DO Rev. B EV-DO Rev. A

150Mbps per site in the next 5 years, 450 – 500Mbps in heavily congested areas.
• LTE-Advanced R10

2015
Avg. BW required per sector

1x EV-DO WCDMA R4 0 50

2010
Avg. BW required per sector

theoretical backhaul requirements (2 Gbps) are > 6 times R8

100

150

200

250

300

350

Source: Ovum Note: capacity was determined by adding the peak uplink and downlink speeds for each technology

Initial deployments for LTE are being supported by cell-site backhaul capacity in the range of 10–150Mbps – high areas will grow up to 300 Mbps
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Backhaul media options for LTE
• Copper has low cost but has capacity and reach limitations • Fiber is preferred due to its reliability and nearly limited scalability however

deployment costs are high and sometime prohibitive
• Microwave provides low cost option quickly deployable option that meets

future LTE capacity requirements
Media
Copper (lease)1

Deployment cost
Low- no eqpt. cost High - $15K- > $200K per site Low- no eqpt. cost Medium ~ $30K/link

Recurring charges
Medium ~$1K$2.5K/mo. For 10Mbps Low < $500/mo. High ~ $1,300$4,300/mo. Low < $500/mo.

Scalability
Poor

Deployment time
Weeks

Capacity
1.5–100Mbps

Typical distance
~2 miles

Fiber (own) Fiber (lease1) Microwave

Excellent Excellent Good

Months Weeks Weeks

Tbps Tbps 500Mbps– ~2Gbps

~370 miles ~370 miles ~30 miles2

Source: Ovum Note: 1Leasing assumes facilities are in place. 2 microwave can serve longer distances by using multiple links

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Leasing vs. owning backhaul
• A large portion of North

American mobile backhaul bandwidth is leased
• Ethernet SLA is more important
Cost ($000) Cost($000)

Comparing costs: microwave vs. leased 100Mbps and 1Gbps Ethernet service
$180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Year 1 Year 2 Year 3 Year 4 Leased Ethernet Leased Ethernet Microwave Microwave

than the media on which it’s delivered

• Ethernet (100 Mbps - 1 Gbps)

will be the preferred backhaul technology
• Microwave provides the lowest

Leased Leased Ethernet Ethernet 100Mb – 1G 100Mb – 1G

total cost of ownership
• Very low recurring cost

Years Years

Companies that own and operate their own microwave backhaul networks benefit significantly from reduced backhaul expenses.
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4th Generation Microwave for 4G Backhaul
• Microwave connects 50% of the • • •


• •

world's base stations Technology has evolved to support LTE backhaul Multi-gigabit aggregate IP capacity Efficient nodal architecture reduces cost, space Integrated Layer 2 Ethernet switching Hybrid support for both TDM and Ethernet/IP traffic Compact, power efficient Cost effective

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Frequency Bands available for backhaul
90 GHz

• Unlicensed bands <6 GHz useful for temporary

cellsite links
• Common Carrier FCC licensed bands – L6, U6,

10.5, 11, 18 and 23 GHz
• Privately owned spectrum – 28 & 38 GHz (LMDS)

• New ‘lightly licensed’ E-Band for very short, high

38 GHz
28 GHz 23 GHz 18 GHz 13 GHz 11 GHz 10 GHz 6 GHz 5.8 GHz 2.4 GHz

capacity links – 70/80 GHz
• FCC now examining release of up to 750 MHz of

additional licensed spectrum below 13 GHz, along with relaxation of restrictions on minimum antenna size and capacity efficiency

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Making more efficient use of available spectrum
• New techniques enable better use of available spectrum
• Adaptive Coding and Modulation in conjunction with packet

prioritization:
• Can increase capacity by 4x when conditions are good (99.99% of the time)

• Divide traffic over multiple parallel radio

channels:
• Use both polarizations with XPIC, combine using

Link Aggregation • Optimize Ethernet traffic over microwave link: • Ethernet frame suppression, header compression and payload compression techniques • Throughput gain dependent on frame sizes and traffic mix • Link capacities >1 Gbit/s of guaranteed

throughput
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Microwave is Ready for LTE
Key Characteristic
Capacity to cell site Capacity to aggregation site Distance to cell site (from fiber POP) Time to establish link Availability Cost: Capex / Opex

Microwave Capability
10 to 300+ Mbit/s Up to 2 Gbit/s <1 to >30 miles days to weeks up to 99.999% Low / Low

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But, TDM traffic still dominates!

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The Need for Smooth Network Migration
• Hybrid or dual-

network TDM + Ethernet architecture optimal
• Lowest migration risk • Preserve revenue • Preserve trusted TDM

sync

• Operators can migrate

their networks at their own pace
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Transform
12

Transition

bearing voice traffic

Maintain

Hybrid vs. Pure Ethernet
• Heavy Reading expects hybrid

TDM/Ethernet to dominate initially, accounting for 85% of live Ethernet microwave sites by the end of 2010 and 51% by the end of 2013
• Hybrid - voice and low-speed data is

carried natively over TDM and high speed data is carried over Ethernet.
• Pure Ethernet (data-only) - used solely

for high speed data while keeping voice and low speed data on a separate physical infrastructure
• Pure Ethernet (voice+data) - used for

voice and data, using pseudowires to support legacy TDM or ATM traffic.
Source: Heavy Reading Ethernet Backhaul Quarterly Market Tracker, August 2010
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Microwave Liquid Bandwidth
• Scalable capacity selection

through software
• Programmable assignment

of available bandwidth between TDM and IP
• Simply change traffic mix as

network requirements change
• Efficient support for TDM

and fully future-proofed for all-IP

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There’s no 'one-size-fits-all' in backhaul
• With the right backhaul technology,

Operators can turn the growth in bandwidth demand into an opportunity for competitive advantage
• Fiber will not be the only answer to

the next generation backhaul challenge
• Microwave is LTE-ready, and is a

perfect complement to fiber.
• Hybrid microwave supports packet

transport features and capacity, but with smooth and low risk, low cost migration from existing TDM infrastructure
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About Aviat Networks…..
• Formerly known as Harris

Stratex Networks
• The largest turnkey

microwave provider in the US, and 6th largest worldwide
• 50 year wireless experience • US-based HQ, R&D,

Manufacturing, Service and Support
• Market Leading LTE-Ready

Wireless Backhaul solutions

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AVIATNETWORKS.COM

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