ITU Regional Development Forum 2008 for the
CIS, CEE and Baltic States
“Bridging the ICT standardization gap in developing
countries”
Tashkent, Uzbekistan, 10-11 June 2008
Telecom Solutions for Rural and LD Areas
Oscar González Soto
ITU Consultant Expert
Strategic Planning and Assessment
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 1
Telecom Solutions for Rural and LD Areas
Content
• Geo-characterization and challenges for Rural and LD areas
• Network solutions per technology or combined technologies
• Solution mapping per scenario
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 2
Telecom Solutions for Rural and LD Areas
Geo-characterization
Large variety of geo-scenarios by combination of following key factors:
• Topology with 3 main types:
• Nucleus of population or villages,
• Rural clusters,
• Dispersed settlements
• Density:
• up to 5 inh./km2 for dispersed rural,
• up to 50 inh./km2 for rural clusters and
• up to 200 inh./km2 for Low Density areas and villages
• Infrastructure availability:
• Civil infrastructure, roads and urbanization level
• Energy
• Telecom infrastructure or Outside Plant
• Services demand and economic level:
• Basic services and payment capability
• Tourist resorts and development settlements
• Context-specific per country: political, cultural, etc.
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 3
Telecom Solutions for Rural and LD Areas
Example of Geo Scenarios modelling
Suburban
L1
L2
R1
R2
Villages
Metropolitan
L5
L4
R3
L3
R4
R5
Rural clusters
Disperse settlements
L6
R6
L(x): Distances between areas
R(y): Area radius
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 4
Telecom Solutions for Rural and LD Areas
Involved population and location
Between 40% and 60% population live in Rural and LD areas
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 5
Telecom Solutions for Rural and LD Areas
Challenges
• Main challenges for the planners, designers and development experts
are highlighted:
• Scarce resources availability
• Higher costs than urban areas and increasing
with lower density
following a quadratic rule
• Low Traffic and Services demand generating low revenues
• Difficult business feasibility with very long recovery time for investments
• Regulatory constraints with rules and tariffs designed for urban areas and
not appropriate for Low Density requirements
• Technology solution mapping needed to select most economic solution as
big differences exist among alternatives
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 6
Telecom Solutions for Rural and LD Areas
Investment Distribution in Greenfield Access
Network Cost Composition
for traditional PSTN and Data
(Villages 1 node Ducts+ Aerial)
5 %5 %
4%
Infrastructure (OSP) Cost
Composition
(Villages 1 node Ducts+Aerial)
4%
12 %
51 %
74%
OSP
PSTN access
PSTN core
DATA Overlay
Transport
7%
25 %
13 %
Primary
Secondary
Civil Works
Engineering
Management
Dominant Outside Plant component compared to Electronic Equipment
for traditional WL technologies
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 7
Telecom Solutions for Rural and LD Areas
Villages total cost
491
430
371
310
249
187
126
Rural total cost
65
2000
1800
1600
1400
1200
1000
800
600
400
200
0
Traditional Wireline cost sensitivity for a
Greenfield Scenario
5
Monetary units
Investment Sensitivity to customer density
Customer density
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 8
Telecom Solutions for Rural and LD Areas
Content
• Characterization and issues for Rural and LD areas
• Network solutions per technology or combined technologies
• Solution mapping per scenario
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 9
Telecom Solutions for Rural and LD Areas
Multiple technology alternatives at access
Multiservice DLC (FTTC)
xDSL
Ethernet
Wireline
SDH/SONET Add Drop Mux
FTTP/APON/EPON
PLC
Access
Technologies
CATV(HFC)
WiMAX/MMDS/WIP
WLAN
LMDS
Wireless
VSAT
IMT 2000 WLL
Hybrid Satellite-WLL
---------------------
- Multiple existing options and growing with time and research efforts
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 10
Telecom Solutions for Rural and LD Areas
Frequent applicability mapping at access
Scenario Type
Technology Solution
LD Villages
LD resorts
WL-DLC/xDSL
99
99
Rural
Clusters
Disperse
settlements
9
(if OSP available)
9
9
9
9
IMT 2000- WLL
99
9
Satellite
9
99
99
9
WL-PLC
FTTx
WiMax
Mobile
9
99
FTTC
FTTP
99
99
99
99
Most frequent applicability is illustrated per solution category
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 11
Telecom Solutions for Rural and LD Areas
Access Network Architecture: Wireline
Typical Access Network structure: (classical)
<40 km
mean value ~1,7 km
mean value ~300 m
(50 % <1,2km, 90 % <3,7 km)
(50 % <200 m, 90 % <500 m)
branching cables
main cable
SDF
.
.
NTBA
ISDN
basic rate
FDF
Local
Exchange
SDF
MDF
FDF
SDF
SDF
drop line
FDF
.
.
MDF
Regional
Exchange
.
.
.
.
SDF
Main Distribution Frame
Feeder Distribution Frame
Subscriber Distribution Frame
SDF
drop line
.
.
Frequent average distance values for EU networks
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 12
Telecom Solutions for Rural and LD Areas
Access Network Architecture: Wireline Evolution: FTTx
Typical Access Network evolution towards BB and Convergence
Local: ~ 40 km
Distribution: mean value ~1,7 km
Drop: mean value ~300 m
branching cables
FO
.
DLC
SDF
.
.
SDF
LEX/GW
LEX
GW
MDF
DLC
SDF
FO
.
.
.
SDF
Optical
Interface
drop line
DLC
drop line
NTBA
.
.
Local Exchange
Gateway
Main Distribution Frame
Digital Loop Carrier
Subscriber Distribution Frame
Fiber Optic
DLC
FO deployed closer to subscriber premises at required investment pace
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 13
Telecom Solutions for Rural and LD Areas
Access Network: xDSL
ISAM
MDF
FO
TV
Set Top
Box
PC
xDSL
Modem
Copper
Local Loop
<≈ d km *
BAS
IP mode
Aggregation Network
NGN
IP mode
core
network
ATM
Splitter
MDF DSLAM
PSTN
SS7
Voice Circuit
Switch Access
* Bandwidth/distances
per solution
- ADSL: up to 4/8 Mbps/800 kbps d <= 3/1,5 km
- ADSL plus: up to4/ 8 Mbps/800 kbps d <= 4.5/2,1 km
- SHDSL: up to 2.3 Mbps symmetric d <= 1.8 km
- VDSL: up to 52 Mbps Assym/ 26 Mbps Sym d <= 300m
( higher distances imply less bitrate following bandwidth shape curve)
IN server
MDF: Main Distribution Frame
DSLAM: Digital Subscriber Line Access Multiplexer
ISAM: IP mode Subscribes Access Multiplexer
IN: Intelligent Network Server
BAS: Broadband Access Server
- Capacity range per customer between 4 Mbps and 52 Mbps
- High reusability of existing infrastructure and equipment
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 14
Telecom Solutions for Rural and LD Areas
Example for Multi-scenario Access Network Architecture
Any
network
Residential
Ethernet
Regional Ring/Network
NGN
ISAM
Business
Central
Office
Residential dispersed
Business Area
ADM
PDH DLC
E1/STM-1
STM-1/STM-4 Access Ring
POP
SDH DLC
Nx2Mb/s
(optical
or HDSL)
SDH Hub
E1/STM-1
Business Park
STM-1
LL
PDH DLC
Residential
Business
BAM
Multitenant
Residential
DLC:Digital Loop Carrier
- High variety of geo-scenarios and capacities covered with a product family
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 15
Telecom Solutions for Rural and LD Areas
Access Network Architecture: WiMax & WLL category
Point-to-multipoint
Transport
SDH/ADM
IP
Backhauling
SU-RT
POC
AU-RE
SU-NI
END
USERS
SU-NI
SU
POP
Border router
POI
Other Networks
PSTN/ISDN
NGN
SDH / ATM/
Ethernet/IP
SU
SU-RT
BAS
E3
AU
BS
ACCESS
SU: Subscriber Unit
SU-RT: Subscriber Unit Outdoor Unit
SU-NI: Subscriber Unit Indoor Unit
EDGE
BS: Base Station
AU: Access Unit
AU-RE: Radio Front-end
MGW: Media Gateway
Aggregation
BS traffic
(ATM/SDH) or IP
POC: Point of Concentration
POP: Point of presence
POI: Point of Interconnection
BAS: Broadband Access Server
MGW
CORE
Note: BAS is needed for an ATM
approach but not for an NGN solution
- Point to multipoint solutions with shared capacity among customers in the same BS
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 16
Telecom Solutions for Rural and LD
Access Network Architecture: FTTP
P a s s iv e O p t ic a l N e t w o r k ( P O N )
ONT
S p litte r (s )
u p to 1 :3 2
1 o r 2 f ib e r s
u p to 3 2
s u b s c r ib e r s
O LT
( in C O )
+ N o re m o te a c tiv e s
+ 5 0 % fe w e r p o rts n e e d e d
+ L o w e r life c y c le c o s t
+ V o ic e , V id e o , D a ta e a s y
- H ig h e r p o r t c o s t
- L o w e r d a ta b a n d w id th th a n P 2 P
u p to 2 0 k m
ONT: Optical Network Termination
OLT: Optical Line Termination
CO: Central Office
P o in t to P o in t ( P 2 P ) S w it c h e d E th e r n e t
E th e rn e t
S w itc h (s )
ONT
1 - 1 0 f ib e r s
O LT
u p to 1 0 0 0
s u b s c r ib e r s
10 KM
1 o r 2 f ib e r s
+
+
+
-
H i g h e r b a n d w id t h
P o s s ib l y l o w e r f i r s t c o s t
G r e a te r s e c u r ity
L e s s r e lia b le ?
H ig h e r m a in te n a n c e ?
V o ic e a n d V id e o o v e r IP
u n p ro v e n
3 0 0 m to 2 K M
- Future oriented solution with a trend to decrease costs with economy of
scale production
- Capacity range per customer between 100 Mbs and 1000 Mbps
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 17
Telecom Solutions for Rural and LD
Access Network : IMT 2000 WLL or FWA
Example for access architecture based on CDMA 2000
- Easy to reuse existing infrastructure from mobile networks or start from scratch
- Provides capability for both voice and data related services
- Allows evolution in parallel to NGN and IMS functionalities
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 18
Telecom Solutions for Rural and LD
Access Network Architecture: VSAT
-Provides wide area coverage with a star like topology from a hub to the multiple remote stations
-Typical capacities up to 256 kbps per customer
- High start-up system costs but marginal costs with advantage at areas without infrastructure
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 19
Telecom Solutions for Rural and LD
Access Network Architecture: PLC
PLC
repeater
Transport
Substation
PLC
head-end
PLC
modem
Distribution
Substation
FO
Backbone
Network
Low Voltage
High Voltage
ie: 400KV
Medium
Voltage
Medium Voltage
ie: 20KV
ie: 220/380 V
ie: 132KV
PLC Domain
- Capacity of the Power Line Communication (~ 45 to135 Mbps with OFDM) shared among
customers reached from same substation. Frequency ranges: 1,6 to 10 Mhz and 10 to 35 Mhz
- Solution quality highly dependent on historical installation electricity cables and topology
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 20
Telecom Solutions for Rural and LD Areas
Content
• Characterization and issues for Rural and LD areas
• Network solutions per technology or combined technologies
• Solution mapping per scenario
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 21
Telecom Solutions for Rural and LD Areas
Methodology to map best solutions per scenario
Compliance
• Services
• Capacities
• Availability
• Operational
constraints
Projects/
Geo-scenarios
Selected
Scenarios
Input criteria
Techno-economical
Evaluation
• Architecture
• Density
• Capital expenditure
• NPV of full costs
• Entry costs
Network
Models
Mapping
Technical
Solutions
Mapping
Economical
Solutions
Results
Qualifiers
• Flexibility
• Speed to service
• Evolution
• Experience
Actions
Selected
Network
Solutions
Mapping
Qualified
Solutions
Recommendations
- Sequential planning activities to quantify solution behavior per geo-scenario type
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 22
Telecom Solutions for Rural and LD Areas
Example for Composition of prices: WL vs WLL cases
Solutions for Greenfield scenarios (excluding Backhauling)
Rural WL
Rural WLL
2%
6%
20%
16%
Switching
0%
Access Equipment
Transmission
Infrastructure
20%
62%
74%
Major differences appear in the cost distribution per network layer:
- WL more intensive in Infrastructure and density dependent
- WLL more intensive in Electronic equipment and traffic demand dependent
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 23
Telecom Solutions for Rural and LD Areas
Example for Cumulated Capex by layers: DLC case
Villages: DLC based solution (Greenfield)
6000000
5000000
monetary units
Infrastructure
Transmission
4000000
Access Equipment
Switching
3000000
2000000
1000000
0
1
2
3
4
5
6
7
8
9
10
Years
- High investment at launching phase with dominant contribution by Infrastructure and access
equipment by geo-coverage and customer volume
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 24
Telecom Solutions for Rural and LD Areas
Example for Cumulated Capex by layers over time: WLL case
Villages: WLL based solution (Greenfield)
18 000 000
16 000 000
Infrastructure
monetary units
14 000 000
Transmission
12 000 000
Access Equipment
10 000 000
Switching
8 000 000
6 000 000
4 000 000
2 000 000
0
1
2
3
4
5
6
7
8
9
10
Years
- High investment at launching and growing phases with dominant contribution by access
equipment both for geo-coverage and traffic demand
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 25
Telecom Solutions for Rural and LD Areas
WL extension in
existing network
.WL solution Greenfield
53
47
40
33
27
20
WLL solution Greenfield
13
5 000
4 500
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
0
7
CAPEX, price per line,
Monetary units
Cost sensitivity to customer density per type of solution
Density: (customers/ km^2)
- Clear cross-point between WL and WLL solutions as a density function
- Important impact of existing network reusability
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 26
Telecom Solutions for Rural and LD Areas
Example of mapping recommendation
WL: Multiservice
and DSLAM
xDSL
8000
High
density
Narrowband
Switching
GPON/FTTH
1000
1000
Overlap area
Rural and Low Density
Medium
density
Quantitative Dif. < 10%
200
- High 200
clustering
Low
density
20
- Low
clustering
“Qualitative assignment”
assignment”
Wireless Access
Narrowband
Wireless Access
Wideband/BB/WiMAX
Fixed GSM/CDMA
Satellite BB
Satellite NB
0.5
Cust./Km2
Services
&Traffic
June 2008
POTS/Fax
POTS/ISDN/Data
POTS/Data nx64
ITU/BDT Solutions for Rural and LD areas - O.G.S.
POTS/data/Video
Multimedia BB
slide 27
Telecom Solutions for Rural and LD Areas
Mapping Recommendations for Access
Large economic differences between solutions (ie: between 20%
and 200%)
• Deployment of DSL and Multimedia Services when existing Outside Plant
infrastructures and villages or resorts
• FO closer to customer (FTTP) when implementing new outside plant or
renovating existing one in nucleus of villages
• New Wireless technologies: WiMAX for low density customer scenarios and
rural areas.
• Satellite or combined Satellite + WiMax for dispersed areas
• Mobile solutions for most scenarios with lower bandwidth et LD areas
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 28
Telecom Solutions for Rural and LD Areas
Gap reduction recommendations for Rural and LD areas
• Characterize country LD geo-scenarios to allow best mapping of most
economical solutions
• Develop a specific regulatory strategy for LD areas to facilitate
property management, right of way rules and leased media to decrease
infrastructure costs
• Develop public-private infrastructure ownership at municipal level to
reduce impact of civil investments
• Use nation level purchasing power and regional agreements to get
benefits of economy of scale for best telecom solutions
June 2008
ITU/BDT Solutions for Rural and LD areas - O.G.S.
slide 29