Consolidation, Management and
Strengthening of the Data Network

 Backhaul: Once the “ after thought ” of the wireless infrastructure
 Explosive amounts of data back through the wireless infrastructure in the last (5) years
 4G and LTE are pushing the boundaries of the existing network
 Now considered an essential element of the network:
The New Wireless Cash Cow?
 Standard T1 copper network unable to meet the new topology
Wireless backhaul is essential to today ’s network
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 Initial providers only focused on voice
 As network speed evolved (LTE), data became the primary driver
 Large data streams brought greater demands on wireless backhaul
 20% of copper backhaul is overburdened; rising to 50% by 2015
 Today ’s copper T1 backhaul can handle a maximum of 1.5 to 2 Mbps
Wireless backhaul needs to meet the ever growing network requirements of today
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Consumer Needs
 Greater mobile flexibility through voice, text, email and video
 Faster data speeds for mobile applications
Service Provider Needs
 Lower infrastructure costs
 High speed radio systems
 Ethernet and microwave backhaul compatibility
 VoIP
OEM
Consumer
DATA
Provider
The wireless infrastructure is data centric
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 Broadband subscribers to reach 3.4 billion by 2014
 80% of the users will be mobile based
 Fixed broadband growth expected to remain near static
 Service providers are being driven by (2) distinct trends
 Increase in smart mobile devices
 Data centric applications
4G networks in North America will increase data traffic 26 fold from 2010 through 2015
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 Approximately 300,000 sites in the US
 Expected to grow to 430,000 by 2015 in the US
 Smart phones account for 15% of the market share today, but they account for 78% of the data traffic
 In 2010 over 3 million tablets were connected to the network generating five times as much data as smart phones
 Speeds increasing from ~3Mbps to 20-100Mbps
 Bandwidth increasing from ~20MHz to 100MHz
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Access Network
Handset,
PDA or Laptop
Copper
Fiber
Carrier Base Station
Public Switched
Telephone Network
Mobile Switching Office
(provisioning, call routing, etc)
Source: Fibertower Investor Presentation, April 2008.
 Copper (T1s)
 Fiber
 Microwave
 Copper – TDM great for voice, not so great for data
 Fiber – Ethernet great for data, allows transition to VOIP
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 Fiber quickly replacing copper to meet LTE bandwidth requirements
 Point-to-point microwave backhauled to fiber to save cost
 Ethernet over T1 driving savings, greater data flow and greater reliability
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Copper
(T1s)
Capex
Deployment
Speed
Opex/
Mbps
Technical
Flexibility
Usage/
Trend
End-User
‘ Experience ’
US ~75%
ROW ~15%
Fiber
US ~15%
ROW ~25%
US ~10%
ROW ~60%
Microwave
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 Revenues may not keep pace with data surges through the wireless network
 Cost to deliver a “ byte ” of data will exceed generated revenue by early 2013
 Top two service providers are laying fiber to the majority of their edge midstream networks
 Lower tier suppliers may choose NOT to upgrade the backhaul infrastructure
 Cost to enter may cause a “ wait and see ” approach
 Risk of increased rate of churn
 Small regional/rural service providers may gain access to low interest loans and funding via government broadband initiative
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Microwave Fiber lines
Capacity · Up to several Gbps · Unlimited
Regulation
Distance influence on costs and deployment time
· Requires spectrum
· Visual impact considerations
· Cost per link with some incremental cost with the distance
· Fast deployment time
Terrain
Reuse options
Climate
· Requires right of ways and infrastructures; renovation construction works after trenching
· Costs increase per feet/meter
· Deployment time increases linearly with distance
· Suitable for any terrain
· Requires line-of-sight between two link end-points
· Equipment can be disassembled and relocated somewhere else
· Influenced by climate
· Adaptive modulation and a proper link planning reduces climate effects
· Becomes costly when trenching in difficult terrain
(mountains, deserts, swamps, rocky plains or jungles)
· Accessibility - requires access for vehicles along the trenching path
· Fiber, in most cases, cannot be relocated
· Copper ducts may be reused for fiber lines
· Normally, not influenced, except for floods
Source: Ceragon Networks Ltd. Mobile Backhaul: Fiber vs. Microwave, October 2009.
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 Data has become the dominant mobile transmission vehicle of backhaul topology
 Transition to LTE and VOIP will only increase the burden on the backhaul network
 Providers that securely manage data in their networks will be financially successful long term
 The wireless backhaul network will be defined by:
 Speed
 $$$ (short and long term)
 Terrain
 Climate
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Contact:
Director, OSP Cabinet Solutions
Paul.Misar@Emerson.com
Don ’t forget to visit us online at:
EmersonNetworkPower.com/EnergySystems
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