Mobile Backhauling Using Copper Bonding

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Mobile Backhauling using ADSL2+/VDSL2 copper bonding at a fractional cost of fiber or microwave.

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Mobile Backhauling Using Copper Bonding

  1. 1. Fiber, Microwave and Copper in the mobile backhaul Business Case Market Development Nov 2010 Ed. 2
  2. 2. Skyrocket data traffic• New mobile applications and bandwidth growth (>100% in 2009 with much more to come) Source: Metro Ethernet Forum Movies, music, news, chat, social net, web surfing, e-mail
  3. 3. Skyrocket data traffic Traffic Operators are experiencing a Gap between traffic Gap between dramatic change in mobile Gap between traffic traffic and revenue and revenue services that move from Voice increases Dominant into Data Dominant scenarios with an increasing Revenues gap between the revenues and the amount of traffic. That necessarily leads to a big Voice Dominant Data Dominant issue: ----------- today ---------------- • HOW TO COPE WITH AN INCREASING DEMAND OF BADWIDTH KEEPING THE BACKHAUL COST UNDER CONTROL ? • HOW TO DO IT TODAY ?
  4. 4. Comparison Cross comparison among the three main technologies used for mobile backhauling COPPER FIBER MICROWAVE • No Obstacles • Dig permissions • Spectrum licence Obstacles • Line of Sight Radio Link • Per site engineering study Time to deploy • Immediate • Very High • Short Cost to dploy • Very Cheap • Very High • High Equipment Reuse • NO • NO • YES Bandwidth • Limited • Illimited • High but Limited Future Proof • NO • YES • Presumably NOT • Compliant ITU G.8162 • Problematic • Yes but it is spectrum (performance of consuming (Ethernet + E1s) Synch IEEE 1588 are still too network dependant)
  5. 5. Copper length distribution The graph represents the NodeB incremental distribution distances from the nearest Centreal Offices, in a real European scenario*. The indicated distance is the reach that can be covered, where possible, by bonded copper. Incremental NodeB Distance Distribution 12000 10000 Number of Nodes 8000 6000 NodeB 4000 2000 0 1 4 7 0,1 0,4 0,7 1,3 1,6 1,9 2,2 2,5 2,8 3,1 3,4 3,7 4,3 4,6 4,9 5,2 5,5 5,8 6,1 6,4 6,7 Distance (Km)* The distribution is a real case of a major Fixed Incumbent operator in Europe.
  6. 6. Copper performances VDSL2 Bonding Performances (Mbit/s) 4 pairs 6 pairs 8 pairsDistances (m) 150 DS 188,3 US 97,1 DS 282,4 US 145,6 DS 376,5 US 194,1 Performances (UpStream and 300 168 84,9 251,9 127,4 335,9 169,8 DownStream bandwidth) on 500 750 135,2 110,7 57,2 26,6 202,8 166,1 85,8 39,8 270,4 221,4 114,4 53,1 PE04 cable with ETSI TS- 1000 90,4 12,4 135,5 18,5 180,7 24,7 101.271 environment. 1200 74,5 6,6 111,7 9,9 148,9 13,2 1400 63,3 3,7 94,9 5,5 126,5 7,3 1500 57,1 2,7 85,6 4,1 114,1 5,4 VDSL2 Bonding Performances 1800 39,3 2,6 59 3,8 78,6 5,1 400 350 300 DS 4 pairs Focus on the 250 US 4 pairs Mb/sec 100Mbit/s threshold DS 6 pairs 200 US 6 pairs with 8 pairs 150 DS 8 pairs 100 US 8 pairs 50 0 150 300 450 600 750 900 1050 1200 1400 1800 meters
  7. 7. Copper with no boundaries The blue area shows the amount of NodeB that can be covered using bonded copper with a real downstream bandwidth of 100Mbit/s*. Incremental NodeB Distance Distribution 12000 10000 Number of Nodes 8000 NodeB over Threshold 6000 NodeB underThreshold 4000 2000 0 1 4 7 0,1 0,4 0,7 1,3 1,6 1,9 2,2 2,5 2,8 3,1 3,4 3,7 4,3 4,6 4,9 5,2 5,5 5,8 6,1 6,4 6,7 Distance (Km)* The distribution is the real case of a major Fixed Incumbent operator in Europe.
  8. 8. Incumbent and Challenger Fixed Operators and Mobile Operators: A DIFFERENT PERSPECTIVE !! Incumbent Challenger Fixed Operators Cost Reduction Competitive Competitive Mobile Operators Advantage Cost Reduction Fixed Operators & with affiliate Competitive Mobile Operators Advantage
  9. 9. Incumbent Costs case Cost comparison among Fiber, Microwave and Copper backhaul with 100Mbit/s per NodeB connection. Breakdown Costs Fiber Microwave Copper Item Cost Item Cost Item Cost Ethernet Switches € 2.800 1+1 Link € 25.000 8 pairs link € 3.500 Fiber (per meter) €4 Tower € 15.000 Digging Trench € 70 Annual Maintenance Included Annual Maintenance Included Annual Maintenance € 510 Total Cost for backhaul infrastructur of 1600 meters Fiber Microwave Copper € 121.200 € 40.000 € 4.010 Costs €140.000Incumbent €120.000 €100.000 €80.000 Costo i n € €60.000 €40.000 €20.000 €0
  10. 10. Challenger Cost case Cost comparison among Fiber, Microwave and Copper backhaul with 100Mbit/s per NodeB connection. Breakdown Costs Fiber Microwave Copper Item Cost Item Cost Item Cost Ethernet Switches € 2.800 1+0 Link € 25.000 SNGA (8 pairs link) € 3.500 Fiber (per meter) €4 Tower € 15.000 Annual Copper Rent € 126 Digging Trench € 70 Annual Maintenance Included Annual Maintenance Included Annual Maintenance € 510 Colocation Trascurated Colocation Trascurated Colocation Trascurated Total Cost for backhaul infrastructur of 1600 meters Fiber Microwave Copper € 121.200 € 40.000 € 5.018 Costs €140.000Challenger €120.000 €100.000 €80.000 Costs i n € €60.000 €40.000 €20.000 €0
  11. 11. Long term evolution There’s no doubt that Fiber will emerge as the winner technology in the future, slowly eroding the microwave and the copper on longer distnaces, but for a window of 4-5 years there is surely space for asymmetrical bonded coppers !! Technology Breakdown Today Technology Breakdown Tomorrow Fiber 27% Microwave; 35% 5 Years late … Microwave 48% Fiber; 56% Copper Copper; 11% 25% Source by: Heavy Reading
  12. 12. Consideration Considerations: • Fiber will surely eliminate any other technologies in the long term future • Fiber deployment take time: in the meanwhile challenger can follow different approach gaining competitive advantages • The copper in the backhaul can enlast for at least 4-5 years, giving the operators an immediate advantage in terms of service and cost • Even when fiber will erode copper investments, lines with reach under 1Km can maintain position thanks to a bandwidth of 200Mbit/sec or more (see the table in previous slides) • Copper cost, as stressed in the previous slides, is a fractional part of the microwave or, worst of any, of the fiber cost deployment
  13. 13. Conclusion Whenever the fierce competition on mobile services leads to gain an immediate and economical market position IT MAKES ENORMOUS SENSE to set up a business plan with asymmetrical bonded copper

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