Managing OPEX and CAPEX in small cell backhaul

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Managing OPEX and CAPEX in small cell backhaul

  1. 1. www.cbnl.com Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013
  2. 2. 2 Today’s agenda 1. How to break the ‘backhaul barrier’ 2. Choosing from the backhaul toolbox 3. A simple TCO model for small cell backhaul 4. Multipoint microwave
  3. 3. www.cbnl.com Commercial in confidence 3 How to break the ‘backhaul barrier’
  4. 4. The ‘backhaul barrier’: understanding the perception • Can I even get backhaul at all these funny locations? www.cbnl.com 4 Conviction
  5. 5. The ‘backhaul barrier’: understanding the perception • Can I even get backhaul at all these funny locations? • Most operators will deploy small cells to increase the QoE for the end user by increasing network capacity. Can I get enough backhaul capacity at all these locations? www.cbnl.com 5 Conviction Capacity
  6. 6. The ‘backhaul barrier’: understanding the perception • Can I even get backhaul at all these funny locations? • Most operators will deploy small cells to increase the QoE for the end user by increasing network capacity. Can I get enough backhaul capacity at all these locations? • Will I be able to deploy small cell sites en masse at 10% the cost of a macro site? www.cbnl.com 6 Conviction Capacity Cost
  7. 7. How to break the ‘backhaul barrier’: conviction www.cbnl.com 7 Documents use cases, backhaul requirements and backhaul solutions (4 wired and 8 wireless) Key messages: • Backhaul is NOT a barrier to small cell deployment • Many technically feasible solutions for small cell backhaul exist • Total cost of ownership will dictate optimal solution
  8. 8. How to break the ‘backhaul barrier’: capacity How much backhaul capacity do I need for a small cell? www.cbnl.com 8 1 10 100 Backhaul traffic generated, Mbps (log scale) Source: ngmn.org Small Cell Backhaul Requirements See cbnl.com/bursty for more details
  9. 9. How to break the ‘backhaul barrier’: capacity Pragmatic backhaul for small cells uses wireless technology as an “on-ramp” for fibre 81% of operators said wireless was the primary backhaul option for the last mile to small cells Source: Infonetics www.cbnl.com 9 Wireless • Great availability at small cell locations • Capacity depends on chosen frequency Fibre • Availability at small cell locations uncertain • Capacity unlimited to all intents and purposes
  10. 10. How to break the ‘backhaul barrier’: capacity and spectrum www.cbnl.com 10 Source: Frequency Band Review for Fixed Wireless Service, Ofcom Sub 6GHz: 1.54 GHz for licensed and unlicensed, fixed & mobile, access and backhaul Microwave: 16.4GHz for terrestrial fixed links millimetre wave 18.3GHz Unlicensed Light licensed Link licenced (PTP) Area licensed (PMP) Area licensed Unlicensed
  11. 11. www.cbnl.com 11 Choosing from the backhaul toolbox
  12. 12. Choosing from the backhaul toolbox www.cbnl.com 12 Solution Spectrum available Capacity fit TV Whitespace ~ 0.2 GHz* Poor Satellite ~ 0.5 GHz* Poor Sub-6GHz licensed 0.5 GHz Marginal Sub-6GHz unlicensed 0.3 GHz Marginal Microwave multipoint 6.7 GHz Good Microwave PTP 9.6 GHz Good 60GHz mm-wave PTP 6.8 GHz Good 70-80GHz mm-wave PTP 9.5 GHz Good * variable
  13. 13. Choosing from the backhaul toolbox: capacity screening www.cbnl.com 13 Solution Spectrum available Capacity fit TV Whitespace ~ 0.2 GHz* Poor Satellite ~ 0.5 GHz* Poor Sub-6GHz licensed 0.5 GHz Marginal Sub-6GHz unlicensed 0.3 GHz Marginal Microwave multipoint 6.7 GHz Good Microwave PTP 9.6 GHz Good 60GHz mm-wave PTP 6.8 GHz Good 70-80GHz mm-wave PTP 9.5 GHz Good * variable
  14. 14. www.cbnl.com 14 A simple TCO model for small cell backhaul
  15. 15. A simple TCO model for small cell backhaul www.cbnl.com 15 We use this model to compare the microwave and millimetre-wave PTP and PMP solutions that pass the ‘capacity’ screening criterion
  16. 16. TCO comparison: multipoint v point-to-point www.cbnl.com 16 Multipoint microwave Point-to-point microwave/mm-wave Bandwidth dynamically shared between links Statically provisioned bandwidth for each link At hub, shared radio and antenna for all links At hub, dedicated radios and antennas for each link
  17. 17. Compare TCO to backhaul 5 small cells: equipment www.cbnl.com 17 SC PoP SC SC SC SC Assume hub is 2× price of small cell end Each additional small cell needs only the remote end of the link 7 cost Unit of cost = 1 radio transceiver. Assumes PMP and PTP radios are equally priced, which is valid for microwave comparison. Millimetre wave radios are currently ~2× price of microwave radios. Source: Maravedis-Rethink, Wireless Backhaul Market from an Intermodal Perspective SC SC PoP SC PoP SC PoP PoP SC PoP Each additional small cell needs equipment at both ends of the link (for star or chain configurations) 1 link per small cell site 10 cost Multipoint microwave Point-to-point microwave
  18. 18. Compare TCO to backhaul 5 small cells: installation www.cbnl.com 18 SC PoP SC SC SC SC Assume hub is 2× price of small cell end Each additional small cell needs only the remote end of the link 7 cost Each new link to a site needs two teams and simultaneous access to each end of the link for alignment. Assume this is 3× price of sending one team to one site 15 cost Link Link Link Link Link Unit of cost = 1 site installation Multipoint microwave Point-to-point microwave
  19. 19. Compare TCO to backhaul 5 small cells: site rental & power www.cbnl.com 19 SC PoP SC SC SC SC Hub site may have higher rental or power consumption than small cell site Single antenna at each small cell site 7 cost Unit of cost = 1 year’s site rental and power SC SC PoP SC PoP SC PoP PoP SC PoP Rent is per antenna, and power consumption per radio, so each additional link incurs another two units 1 link per small cell site 10 cost Multipoint microwave Point-to-point microwave
  20. 20. - 20,000 40,000 60,000 80,000 100,000 120,000 0 1 2 3 4 5 6 7 8 9 10 5yearTCO,NPV Small cells per backhaul hub 5 Year TCO Comparison www.cbnl.com Commercial in confidence 20 - 20,000 40,000 60,000 80,000 100,000 120,000 0 1 2 3 4 5 6 7 8 9 10 5yearTCO,NPV Small cells per backhaul hub Conclusion — Microwave PMP can offer very significant TCO savings versus microwave or (especially) millimetre wave PTP for small cell backhaul — Spectrum rental and coordination costs are decisive Consensus view is 3-5 small cells per macro in 5 year timeframe PTP millimetre wave PTP microwave Multipoint microwave
  21. 21. www.cbnl.com 21 Multipoint microwave
  22. 22. VectaStar Metro – small cell backhaul solution www.cbnl.com 22 Small cell multipoint microwave backhaul from the market leaders • 600Mbps throughput • 600µs mean round-trip latency • SyncE, 1588v2 support • 26GHz and 28GHz ETSI Built on the established VectaStar platform • Used by 7 of the 10 largest mobile operator groups in the world • Deployed in 37 countries worldwide for 2G, 3G, 4G, Wi-Fi
  23. 23. www.cbnl.com 23 Summary • The backhaul barrier of ‘conviction’, ‘capacity’ & ‘cost’ – has been broken • Good end-user quality of experience requires much more backhaul capacity than there is low frequency backhaul spectrum • Microwave and millimetre wave (PTP and multipoint), can all “do the job” for small cell backhaul • Multipoint microwave for small cell tail links offers significant TCO savings through higher utilisation of equipment and spectrum
  24. 24. Small cell backhaul: the big picture www.cbnl.com 24 Pick up a copy of our new small cells white paper! • Market progress • Deployment drivers • Styles of deployment • Backhaul requirements • Backhaul solution overview • Backhaul TCO analysis Available from: cbnl.com/smallcells

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