An overview of total cost of ownership in modern backhaul

1. www.cbnl.com
Total cost of ownership in modern backhaul
Comparative TCO of microwave backhaul systems
John Naylon, CTO
August 2013

2. About CBNL and VectaStar
CBNL is the global market leader in point-to-multipoint
(PMP) microwave backhaul and access solutions
We have a single product family – VectaStar – that has
been under continuous development for over 10 years
www.cbnl.com Commercial in confidence 2
Wireless Backhaul from Intermodal Perspective (2013)
50%
market
share
PtMP Wireless Market for Small Cells and LTE (2013)

3. A simple TCO model for wireless backhaul
www.cbnl.com 3
This model encompasses the ―big ticket‖ items; numerous
other factors could be included, but the final total is unlikely
to be significantly affected

4. PMP and PTP are complementary technologies
www.cbnl.com 4
Multipoint
microwave
Point-to-point
microwave/mm-wave

5. TCO comparison: multipoint versus point-to-point
www.cbnl.com 5
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

6. Compare TCO backhauling 5 sites: equipment
www.cbnl.com 6
Remote
Hub
Remote
Remote
Remote
Remote
Assume hub is 2× price of
remote end
Each additional site 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, April 2013
Remote
Remote
Hub
Remote
Hub
Remote
Hub
Hub
Remote
Hub
Each additional site needs
equipment at both ends of
the link (for either star or
chain configurations)
Each end of the link is the
same price in PTP
10
cost
Multipoint
microwave
Point-to-point
microwave
3
4
5
6
2
4
8
6

7. Compare TCO backhauling 5 sites: installation
www.cbnl.com 7
Remote
Hub
Remote
Remote
Remote
Remote
Assume hub install is 2×
price of remote terminal
install
Each additional site needs
only the remote terminal
install
7
cost
Each 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
Point-to-point
microwave
Multipoint
microwave
3
4
5
6
3
6
9
12

8. Compare TCO backhauling 5 sites: site rental and power
www.cbnl.com 8
Remote
Hub
Remote
Remote
Remote
Remote
Hub site may have higher
rental or power consumption
than remote site
Single antenna rental and
unit of power consumption
added per site
7
cost
Remote
Remote
Hub
Remote
Hub
Remote
Hub
Hub
Remote
Hub
Rent is per antenna, and
power consumption per
radio, so each additional
link incurs another two units
Each end of the link
comprises a radio and
antenna
10
cost
Point-to-point
microwave
3
4
5
6
2
4
8
6
Unit of cost = 1 year’s site rental and power
Multipoint
microwave

9. Compare TCO backhauling 5 sites: spectrum
www.cbnl.com 9
Point-to-point
microwave
Multipoint
microwave
Example: spectrum costs vary widely but PMP bands are
often relatively under-utilised, hence spectrum affordable

10. -
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
Sites per backhaul hub
Bottom line: PMP drives down backhaul capex and opex
www.cbnl.com Commercial in confidence 10
Typical average number of sites per
backhaul hub is between 4 and 6
PTP millimetre wave
PTP microwave
Multipoint microwave
Conclusion
— Microwave PMP can offer very significant TCO savings versus
microwave or (especially) millimetre wave PTP for last mile links in
dense backhaul networks; PTP is better suited to the middle
mile, trunking applications and long range links

11. www.cbnl.com
Thank you for your time
John Naylon, CTO
August 2013
Comparative TCO of microwave backhaul systems