ITU / BDTBDT- COE workshop Bangkok, Thailand, 11 – 15 November 2002 Network Planning Lecture NP NP-- 5.1 Supporting Network Planning Tools November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 1 BDT - COE workshop on Network Planning Module 1: Introduction and Experiences in the Region Module 2 Role of Network Planning in the current Telecom scenario Module 3 Integrated Planning Process Module 4 Specific Network Planning per Layer Module 5 Supporting Network Planning Tools November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 2 Content Chapter 5.1 Network Planning Tools • Objectives and classification for the different tool types • Overall techno-economical evaluation • Network design and optimization • Network evaluation and simulation • Tool mapping per class ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. November 14th Lecture NP - 5 .1 - slide 3 Network Planning Strategic view: Network Layer Modeling IP SMP SMS-C SCP Service and Control level Voice Mail IN HLR/AuC TSC EIR BTS SSP TEX MSC SSP BSC Functional level Int’l POP/LEX WLL/Mobile POP/LEX Fixed NB network DATA/IP network LL network Transport/SDH Infrastructure and Cable level November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 4 Planning Methodology: Integrated Iterative Planning Process Analysis of Initial Context Business Assessments Generation of Competitive Scenarios (Inputs) Traffic Demand Forecasting Network Design & Configuration Business & Financial Planning Technical and Economic Results (Outputs) Procedures and Tools ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. November 14th Lecture NP - 5 .1 - slide 5 Network Planning Tools: Tool categories by coverage and detail Network Design and Optimization Detailed Design and Configuration + Network coverage + Level of detail Overall techno-economical evaluation Analysis and Simulation November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 6 Network Planning Tools : Tool categories by coverage Overall technoeconomical evaluation Multilayer, Multitechnology Optimization Detailed Design and Configuration Network coverage Level of detail Design and Specific methods for given Network segment, and/or Technology Detailed alghorithms for a given system family Analysis and Performance evaluation for a given system/configuration Simulation November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 7 Network Planning Tools : Tool examples per category Overall technoeconomical evaluation STEM, Excel applications Optimization Detailed Design and Configuration Analysis and Simulation November 14th Network coverage Level of detail Design and PLANITU, NetWORKS, VPI-Maker family, NetQUAD, CHIRplus family VPI-Configurator family NetWORKS - Pro, CIRCEE OPNET,COMNET, SPECTRA family ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 8 Network Planning Tools : STEM Objective : STEM by “Analysys” (in Cambridge) is a business decision making support tool that Business enables the analysis of business Planning models for Telecommunication Networks and services over a period of time. ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. November 14th Lecture NP - 5 .1 - slide 9 Business Planning Tools : STEM • Coverage –Service Demand Projection –Evaluation of network investment –Evaluation of revenues for given tariffs and installation rate –Interrelation between network growth and operational cost –Pre-programmed for Standard Telecom and Finance calculations and for facilitating the rapid development of new models –Produces the standard financial results like Cash Flow, Profit & Loss, Balance Sheet. –Interfacing to other MS Windows applications like Excel, Word,.... November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 10 Business Planning Tools : STEM Activity Flow: Replacement of Resources Demand Parameters Incremental Demand for service Resource Depreciation & Decommissioning Total Incremental Demand for Resources Tariff and Revenue Resources Costs (And trends) Incremental Resource Supply Production & Costing of Resources Service costs & charges Input data Tariff Policy November 14th Others costs (Admin/mkt) ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Phase of calculation Lecture NP - 5 .1 - slide 11 How the STEM engine works Time period Definition of the the Resources (cost elements) (capacity, physical and financial lifetime, unit costs) Definition of the Services (demand, tariff structure) Definition of the dimensioning rule (or how the demand is satisfied by some resources) Calculation of the number of resources Calculation of costs (capex, opex, depreciation…) Calculation of revenues Standard technical and financial results (NPV, EBITDA, Cash flow,…) November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 12 Business Planning Tools : STEM Services Resources physical lifetime n traffic-carrying capacity n depreciation period n economies of scale n capital expenditure n operating expenditure subscribers service rates n annual and busyhour traffic n Erlang or BW demand n resources required n n n STEM* Time n cost-related tariffs and demand elasticity n age-based cost profiling n non-linear resourcing STEM allows both a macroscopic and microscopic approach to modelling Examples: Macroscopic November 14th One Resource used to model all BTSs in a mobile network Intermediate approach BTSs grouped by area type, e.g. urban/suburban/rural/highways Microscopic BTSs modelled one by one ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 14 The user must choose the level of detail to be modelled The user decides the best level of granularity, which involves a trade-off between… November 14th The complexity of modelling and the large volume of input required when geographical factors are considered in great detail Inaccuracies involved in averaging out over sites when using the intermediate approach (e.g. urban/suburban/ rural/highways) ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 15 STEM focuses on telecoms objects Resource comparison and transition Allocation of costs to tariffs Subscribers November 14th Traffic Tariffs Resource requirement Cost dependent tariffs Price elasticity of demand Capacity Lifetime (physical and financial) Costs (capex, opex) Age profile Economies of scale ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 16 STEM is demand driven and allocates costs to demand Cost causality chain November 14th Demand causality chain • Demand driven • The STEM Editor emphasises the demand causality chain between services and resources • The cost causality chain flows in the opposite direction ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 17 Business Planning Tools : STEM Modeling Elements The modelling basics Market Segment Services Resources Transformations Locations Financial model November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 18 Market Segment 1. Choose the Size of the Market 2. Select the Service(s) to which this Market Segment is associated 3. You can define a set of inputs which can be referenced in formulae, and also in the definitions of derived results November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 19 Understanding the Type menu • The Type menu is a commonly-used menu for inputting data: – Constant – Exponential Growth – Floor & Multiplier – S-Curve – Dual S-Curve – Interpolated Series – Transformation November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 20 Services A Service is anything you can draw a revenue from, such as mobile telephony, X.25, house rentals… 1. Define the Demand for this service (customer base, traffic unit, penetration rate…) 2. Define the Tariff of this service (connection, rental usage tariff) 3. Select the Resources the operator must install to provide that service November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 21 Resources A Resource is anything that will cost you something, such as switches, leased lines, staff, a licence… 1. Define the capacity and the lifetime (physical, financial) of the Resource 2. Define the cost (capital cost, maintenance and operation costs…) of the Resource November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 22 Transformations can use a variety of inputs and can drive several elements • DRIVERS can be: – Resources – Services – Transformations l November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. DRIVEN elements can be: w Resources w Services w Transformations w Locations w Market Segments Lecture NP - 5 .1 - slide 23 Transformations allow Resources to be driven by other Resources rather than by Services • This is particularly useful when: – there is a natural relationship between two Resources • e.g. towers are driven by base stations – Resources are distant from end customers and Services • e.g. in backbone networks • However, all Resources in a STEM model are ultimately driven by Service demand November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 24 The rationale for Transformations is to act as secondary sources of demand e.g. number of installed units e.g. time lag Input Transformation Output November 14th e.g. roll-out other resources ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 25 Transformation: an example Node Link Input: Number of Installed Units for NODES Transformation type: Expression Transformation Expression=Input1*(Input1-1)/2 Output: used to roll out LINKS November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 26 Erlang B Transformations can be used to convert Erlangs into channels The input to the Transformation is the Service busy hour traffic The Erlang B formula returns the number of channels required to meet that level of traffic (given the GoS) and the number of sites (because the formula is nonlinear) ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. November 14th Lecture NP - 5 .1 - slide 27 Business Planning Tools : STEM Example of results for business analysis * Under licence of Analysys November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 28 Business Planning Tools : STEM Example of results for business analysis November 14th ITU/BDT-COE Network Planning/ Supporting Tools - O.G.S. Lecture NP - 5 .1 - slide 29