Connected Train and Customer Communications: Rail and Digital Industry Roadmap

1. www.LStelcom.com
CONNECTED TRAIN AND CUSTOMER
COMMUNICATIONS: DEVELOPMENT OF RAIL
AND DIGITAL INDUSTRY ROADMAP
LS telcom | 14.12.2017 | Saul Friedner and Toby Treacher

2. 2Copyright © 2017 by LS telcom AG
Delivery team
Saul Friedner
Associate Director Spectrum Services
LS Telcom
Richard Womersley
Director, Spectrum Consulting
LS Telcom
Toby Treacher
Associate, Commercial Consulting
LS Telcom
@digitalt
toby.treacher@gmail.com
@sdfriedner
sfriedner@lstelcom.com
@rvwomersley
rvwomersley@lstelcom.com

3. 3Copyright © 2017 by LS telcom AG
IMPROVED RAIL CONNECTIVITY CAN DELIVER UK
WIDE BENEFITS BUT DEPENDS ON THE RIGHT
ACCESS TO TRACKSIDE INFRASTRUCTURE
Key messages
1 Technology
2 Data productivity
3 Collaboration & innovation
4 Infrastructure
5 Investment
6 Government

4. 4Copyright © 2017 by LS telcom AG
Contents
1 Technology
2 Data productivity
3 Collaboration & innovation
4 Infrastructure
5 Investment
6 Government

5. 5Copyright © 2017 by LS telcom AG
Challenges of delivering connectivity to rail
430,000 p/d

6. 6Copyright © 2017 by LS telcom AG
Technical inputs to improve rail connectivity
Availability
Capacity
Coverage
Improved
connectivity
§ Wireless technology
§ Spectrum
§ Infrastructure
Investment

7. 7Copyright © 2017 by LS telcom AG
Wireless technology
§ Available today
§ Rail ready
§ Sufficient bit rates
§ Future proof
Technology
Typical
Range*
Typical cell
throughput
Availability
Penetration
(indicative)
Notes
GSM 7-10 km Max 384 kbps 99% pop 100%+
Requires licensed
spectrum
UMTS/HSPA 5-7 km Max 42 Mbps 99% pop 100%+
Requires licensed
spectrum
LTE 5-7 km Max ~300 Mbps 95 - 98% pop 60%
Requires licensed
spectrum
LTE-
Advanced
5-7 km Max ~1 Gbps 5-10% pop 60%
Requires licensed
spectrum
5G New
Radio
Application
dependent
> 1 Gbps 3 to 5 years N/A
Licensing situation
unclear
LTE-U/LAA
Terrain
limited
Max ~300 Mbps <1% Early deployment Licence exempt
Satellite incl
high tput
National/
regional
Max 100 Mbps
Within 12 – 18
months
In development
Poor in deep cuttings/
trees/tunnels.
WiFi ~ 500 m Max ~600 Mbps 88% homes Mass Consumer Licence exempt
WiGig ~ 200 m Max ~3 Gbps Next 3 years Early deployment Licence exempt
FWA ~ 500 m ~1 Gbps Next 3 years In development Doesn’t support mobile
Some vendors are prepared to support non-standardised bands
*range dependent on clutter type
“It’s possible to have 99.8%
coverage signal of a route
but not 99.8% consistent
throughput”

8. 8Copyright © 2017 by LS telcom AG
Wireless technology specifics
§ Deliver enhanced capacity by either more spectrum or
improved spectrum efficiency (more bits/second/Hz)
§ Carrier frequency and bandwidth impact the ability to
deliver high throughputs
§ Should aim for min. LTE-A and LTE-A Pro as the mobile
technology to deliver the required speeds
§ Cell edge performance is key which is embedded in 4G
and beyond.
§ Wi-Fi may struggle with mobility, handover and cell
edge performance – but there are products available
§ Cell loading management is paramount, this can also
be handled in 4G, carrier grade Wi-Fi also supports this
§ Traffic shaping and dynamic resource allocation helps
to ensure users have good quality of experience
“It’s possible to have 99.8% coverage signal of a route
but not 99.8% consistent throughput”

9. 9Copyright © 2017 by LS telcom AG
Trackside technology overview – The next 3 – 5 years
0
10
100
1000
2018 2019 2020 2021 2022
GSM
UMTS
5G NR (Launch Rel 15)5G NR (Trials)
LTE-A (Launch) LTE-A (Rel 13/14)
LTE-U (Trials) LTE-U (Launch) LTE-U (Commercial)
Satellite (High throughput)
WiFi (802.11n)
LTE (Rel 10)
WiGIG (launch)
FWA (pre-5G)
Mbps(peakthroughput)
WiFi (802.11ac) with additional mobility characteristics
In use today
Needs regulatory intervention
Early deployment
In development or Not in use today
trials
Current and immediately emerging technologies

10. 10Copyright © 2017 by LS telcom AG
Contents
1 Technology
2 Data productivity
3 Collaboration & innovation
4 Infrastructure
5 Investment
6 Government

11. 11Copyright © 2017 by LS telcom AG
Requirements
§ COVERAGE
§ Throughput/utility
§ Operational efficiencies
§ Multi-modal
§ Resilience
§ Safety & security
0
50
100
150
200
250
300
start finish
stations
Passengers
TOC

12. 12Copyright © 2017 by LS telcom AG
Opportunities
Depots & Stations
BIG data
Remote
Condition
Monitoring
Train Health
ETCS
CCTV
Passenger WiFi
Passenger
InformationStaff Operations
Retail
Assisted Journeys
Productivity
Entertainment
Disruption
Emergency
Services`
Ticketing
Advertising
RFID
IoT
Energy
Driver Advisory
Loading
CapacityTrack
Monitoring
Rural BB
Utilities

13. 13Copyright © 2017 by LS telcom AG
Productivity
§ 1.7bn journeys
§ 76 minutes
§ 2.2bn working hours
§ £31.8 GDP per hour (2015)
£69bn

14. 14Copyright © 2017 by LS telcom AG
Contents
1 Technology
2 Data productivity
3 Collaboration & innovation
4 Infrastructure
5 Investment
6 Government

15. 15Copyright © 2017 by LS telcom AG
DCMS enabling opportunity for collaboration
“The government is to consult on commercial
options to improve mobile communications for
passengers, and will provide up to £35m to
upgrade Network Rail’s test track at Melton
Mowbray, install trackside infrastructure on the
Trans-Pennine route between Manchester, Leeds
and York and support the roll-out of full-fibre
and 5G networks.”
Source: http://www.railwaygazette.com/news/single-view/view/rail-in-the-november-2017-uk-budget.html

16. 16Copyright © 2017 by LS telcom AG
Technology landscape
Freight Operators
Train Operators
Government Franchise
Holders
ROSCOs
Manufacturers
Network Operators
Tech Vendors
Tech Services
RailTech
Bodies
§ Existing ecosystem
§ Network operators
§ Technology vendors
§ System integrators
Infrastructure

17. 17Copyright © 2017 by LS telcom AG
Contents
1 Technology
2 Data productivity
3 Collaboration & innovation
4 Infrastructure
5 Investment
6 Government

18. 18Copyright © 2017 by LS telcom AG
Independent Infrastructure
§ Cost of capital
§ Operational efficiencies
§ Higher occupancy
0%
5%
10%
15%
20%
1 2 3
With one tenant annual returns are
low but positive, as more occupants
are found to share infrastructure,
returns increase. Multiple
occupancy is commercial imperative
Occupancy
Infrastructure
Network Operators
Network Operators
Service Providers
Tech Services RailTech Tech Vendors
Pro-competitive – faster & cheaper for all
NRT backbone
BTS/NodeB
Non-safety critical
access
GeneratorMast
Antenna
Compound
PoP
Commercial backbone
Shelter
Possible site model

19. 19Copyright © 2017 by LS telcom AG
Contents
1 Technology
2 Data productivity
3 Collaboration & innovation
4 Infrastructure
5 Investment
6 Government

20. 20Copyright © 2017 by LS telcom AG
OpenMarket
TCO&
finance
Railway(NR)
Operations
(TOCs)
Passengers
Gov
Base case
Single supplier
NRT
Neutral Host
poor good
Option selection

21. 21Copyright © 2017 by LS telcom AG
Hybrid solution – details matter
NR Specialists
Depots & Stations
BIG data
Remote
Condition
Monitoring
Train Health
ETCS
CCTV
Passenger WiFi
Passenger
InformationStaff Operations
Retail
Assisted Journeys
Productivity
Entertainment
Disruption
Emergency
Services`
Ticketing
Advertising
RFID
IoT
Energy
Driver Advisory
Loading
CapacityTrack
Monitoring
Rural BB
Utilities
Hybrid
§ Asset ownership
§ Access
§ Safety
§ Management
§ Development
§ Commercialization
Number of existing assets, current condition, access arrangements, maintenance
obligations, terms of new asset build and the terms of final transfer

22. 22Copyright © 2017 by LS telcom AG
Contents
1 Technology
2 Data productivity
3 Collaboration & innovation
4 Infrastructure
5 Investment
6 Government

23. 23Copyright © 2017 by LS telcom AG
Policy opportunities
Government
§ DCMS – broadband directive, 5G, testbeds and
trials
§ DfT – connectivity within franchise obligations
§ State aid – access to public assets
Regulatory
§ Ofcom – rail corridor coverage obligations
§ Competition and marketplace

24. 24Copyright © 2017 by LS telcom AG
§ Enabling commercial access to NR assets (state aid)
§ [hybrid] neutral host – via specialists – national rail
[telecom] asset register
§ Private investment with [matched] government funding/
R&D/BB infrastructure
§ Consider rail corridor coverage license obligations
§ Develop clear metrics for data coverage, speed & capacity
per route/franchise
§ Review current franchise obligations for data connectivity
Recommendations

25. 25Copyright © 2017 by LS telcom AG
A PRO-COMPETITIVE MARKETPLACE IS NEEDED
• Competitive access to passive equipment; masts,
power, backhaul
• Gantries, cabinets, physical access
Infrastructure market
• Compete/bid for space to mount active equipment,
antennas, cabling
• Bring your own spectrum
Network Operators
market
• Onboard Wi-Fi to passenger, entertainment
• Multimodal passenger/journey information
• Retail, catering and ticketing
• Rural broadband, utilities
Service Providers
market
MARKETPLACE

26. 26Copyright © 2017 by LS telcom AG
PLAYERS AND FINANCE
1. Infrastructure
2. Network Operators
3. Solution Providers
Players/products Finance and intervention
MNOs
Single
supplier
NRT
Neutral
Host
MNOs
Single
supplier
NRT
MNOs TOCs
OB GW
providers
Govt
Corporate Debt/Equity
MNOs
PPP
Vendors
MNOs TOCs
OB GW
providers
LA’s
OB GW: ONBOARD GATEWAY
Single
supplier