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Wireless Backhaul Evolution Consolidation, Management and Strengthening of the Data Network
2 © Emerson Electric Co.; Proprietary Information IntroductionIntroduction 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 todays network
3 © Emerson Electric Co.; Proprietary Information Evolution of Wireless Backhaul 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 over- burdened; rising to 50% by 2015 Todays 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
4 © Emerson Electric Co.; Proprietary Information Wireless Market Evolution Consumer Needs Greater mobile flexibility through voice, text, and video Faster data speeds for mobile applications Service Provider Needs Lower infrastructure costs High speed radio systems Ethernet and microwave backhaul compatibility VoIP The wireless infrastructure is data centric
5 © Emerson Electric Co.; Proprietary Information Mobile Data Replaces Fixed Data Broadband subscribers to reach 3.4 billion by % 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
6 © Emerson Electric Co.; Proprietary Information Wireless Backhaul Market Drivers Cell Site Growth Approximately 300,000 sites in the US Expected to grow to 430,000 by 2015 in the US Smart Phone Impact 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 Migration towards LTE (Long Term Evolution – 4G) Speeds increasing from ~3Mbps to Mbps Bandwidth increasing from ~20MHz to 100MHz
7 © Emerson Electric Co.; Proprietary Information Three Main Transport Methods Copper (T1s) Fiber Microwave Copper/Fiber Hybrid Solution Copper – TDM great for voice, not so great for data Fiber – Ethernet great for data, allows transition to VOIP Carrier Base Station Mobile Switching Office (provisioning, call routing, etc) Access Network Handset, PDA or Laptop Public Switched Telephone Network Copper Fiber Fixed-Wireless/Microwave Source: Fibertower Investor Presentation, April Wireless Backhaul 101
8 © Emerson Electric Co.; Proprietary Information Wireless Backhaul Infrastructure Trends 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
9 © Emerson Electric Co.; Proprietary Information Backhaul Transport Comparisons Capex Deployment Speed Opex/ Mbps Technical Flexibility Usage/ Trend End-UserExperience Copper (T1s) Fiber Microwave US ~75% ROW ~15% US ~15% ROW ~25% US ~10% ROW ~60%
10 © Emerson Electric Co.; Proprietary Information The Dark Side of Backhaul 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
11 © Emerson Electric Co.; Proprietary Information Backhaul Technology Comparison Source: Ceragon Networks Ltd. Mobile Backhaul: Fiber vs. Microwave, October MicrowaveFiber lines Capacity· Up to several Gbps · Unlimited Regulation · Requires spectrum · Visual impact considerations · Requires right of ways and infrastructures; renovation construction works after trenching Distance influence on costs and deployment time · Cost per link with some incremental cost with the distance · Fast deployment time · Costs increase per feet/meter · Deployment time increases linearly with distance Terrain · Suitable for any terrain · Requires line-of-sight between two link end-points · Becomes costly when trenching in difficult terrain (mountains, deserts, swamps, rocky plains or jungles) · Accessibility - requires access for vehicles along the trenching path Reuse options · Equipment can be disassembled and relocated somewhere else · Fiber, in most cases, cannot be relocated · Copper ducts may be reused for fiber lines Climate · Influenced by climate · Adaptive modulation and a proper link planning reduces climate effects · Normally, not influenced, except for floods
12 © Emerson Electric Co.; Proprietary Information Backhaul Technology Cost Comparison
13 © Emerson Electric Co.; Proprietary Information ConclusionsConclusions 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
14 © Emerson Electric Co.; Proprietary Information Contact: Paul Misar Director, OSP Cabinet Solutions Dont forget to visit us online at: EmersonNetworkPower.com/EnergySystems
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