1. Point to Multi-Point microwave backhaul in Next Generation mobile backhaul networks TNMO London
May 2010

2. The Company Headquarters in Cambridge UK
Market-driven, world class technology
Research and product design in Cambridge
Manufacture by Benchmark
Largest carrier-class PMP vendor, four-fold increase in sales 2007 to 2009
More than 50 customers in 35 countries
First Backhaul vendor sponsor to join NGMN Alliance

3. Agenda
Evaluating last-mile backhaul alternatives for European Operators
What are the cost implications
PMP Backhaul
Considerations for next generation networks
Conclusions

4. Next Generation Mobile Broadband networks also need to make money
The backhaul crunch
Backhaul Crunch
Speed is key: Coverage ubiquitous
Unlimited Data Plans
New app’s fuelled by multiple open operating systems
Smartphone ownership growing rapidly
Next Generation Mobile Broadband networks also need to make money

5. The wall of mobile data Smartphones and Dongles are just the beginning
2010:
4.6 Billion Mobile Subscribers
2015:
7 Billion Mobile Subscribers
2020:
50 Billion mobile connections
Smartphones and Dongles are just the beginning
Machine-to-machine communications will change dynamics of mobile
Source: Nokia

6. Key Factors in Backhaul Deployment
Equipment plus Installation must meet market targets
Equipment needs to provide services in a few hour, not weeks or months – with minimal planning and licensing
Drive down ever increasing antenna lease and spectrum costs along with radio equipment site costs
Must be enough for Backhaul Requirements of today and tomorrow – with an established capacity roadmap
System Capacity
System Operational Cost
System Capital Cost
Speed to Deploy

7. Evaluating last mile backhaul for European Operators
What are the options?

8. Last Mile Backhaul Options
Western European Operators – Grading Of Principle Backhaul Options
Grading 1-5 where 1 is very poor and 5 is excellent
Source: Informa Telecoms & Media

9. Cost comparison: various backhaul technologies
Source: Informa Telecoms & Media
Forecast cost to transport data traffic: as traffic increases, the need to build or upgrade backhaul increases
Voice traffic is assumed to be carried on E1
Cost increases towards the end of the forecast period due to volume of traffic
Deployed Fibre is second most expensive but is a long term option for some operators
Microwave technologies are the most cost efficient

10. A balanced backhaul solution
PMP has the lowest microwave OPEX
PMP has the
lowest CAPEX
Make sure the source of this analysis is clear. This is an independent research report from Informa Telecoms
Informa Telecoms and Media: “Last Mile Backhaul Options for West European Mobile Operators”

11. What are the cost implications?
Evaluating last mile backhaul for European Operators
What are the cost implications?

12. Mobile operators want backhaul solutions that cost less,
deliver higher performance
and reduce the complexity of
their networks

13. Cost comparison: Tier-1 UK Operator
Cost comparison (Europe) between PMP and the other two prominent technologies, PTP and hybrid fibre (leasing)
Although both leasing fibre and hybrid backhaul technologies are considered cost-efficient, analysis shows that PMP can provide better cost savings in backhaul, even compared to the widely established PTP microwave in Western Europe.
The analysis presented has been undertaken for an international Tier-1 operator running a mobile broadband network in the UK. Calculations are for a 5-year period.
Cost savings of PMP compared with TDM/fibre leasing for the total cost to transfer traffic amounts to US$497 million per year during 2010, increasing to US$2.8 billion per year for 2014
PMP is expected to offer cost savings of US$26 million during 2010 and this will increase to US$248 million during 2014 compared to PTP microwave.
Source: Informa Telecoms & Media

14. PMP Microwave Backhaul
Is there a another way?

15. PMP Microwave Architecture
Point-to-point
Point-to-MultiPoint
Single Hop = predictable latency
Access point
PtP uses 1 frequency, 2 radios and requires 2 installations per link
PMP uses 1 frequency per sector. To backhaul 9 cell sites, VectaStar uses 8 fewer radios:10 vs. 18
This is the best place to make the point that VectaStar is spectrum efficient. Make sure you make the point that each point to point link needs separate planning, spectrum license, two installations, separate frequency (within reuse guidelines), etc.

16. Multi-sector Gigabit Ethernet Hub
Backhaul on Demand GE
Outdoor
Indoor GE
Step 1:
Single PtP link
Step 2:
Zero footprint sector
Step 3:
Multi-sector Gigabit Ethernet Hub GE
Site a PMP Ethernet Hub where there is a need to provide or upgrade backhaul coverage
Add sectors as demand increases
Hub economics enable variable sector sizes/capacities
Radio Controller available to aggregate multiple sectors and provide hybrid support
New sites require one radio – deployment time halved
PMP system architecture enables a paradigm shift in microwave backhaul network design

17. Stat-Mux and Aggregation
Point-to-Point backhaul planners have to provision for peaks, i.e. 30Mb/s per NodeB:
Traffic measurements from 4 HSPA Node Bs in a VectaStar network sector
Total provisioning: 4 x 30Mbps = 120 Mbps
PTP: Bandwidth not used is wasted!
150
Mbps
Sector
th’put
VectaStar aggregates cellsite traffic in sector
Built-in optimisation and statistical multiplexing reduces peak backhaul requirement to 40 Mbps
30Mbps
120
Mbps
Vectastar: Unused bandwidth is available for other cellsites in the sector
40Mbps
40Mbps

18. Case Study: LTE Network London
LTE PMP Backhaul solution for London:
145 Cell sites
8 Hub sites
150Mb/s Peak
30Mb/s Mean
Utilises overlapping sectors to increase capacity in dense, high traffic areas
Comparison showed that at 100Mbps, PtP exhausts available spectrum.
VectaStar used less than half the spectrum needed for PtP

19. VectaStar Cost to Deploy Compared to Point-to-Point
London LTE network business case
VectaStar CAPEX advantage compared to Implemented PtP from 2 links:
Point to Point is 40% more expensive
at 5 links
Point to Point is 80% more expensive
at 15 links
VectaStar Cost to Deploy Compared to Point-to-Point
CAPEX
Broader London Case Study of Savings over 5 year Business Case - With 360 BTS and 13 Hubs – Net Present Value:
Point to Point is 44% more expensive in CAPEX (First Year)
Point to Point is 38% more expensive in OPEX (All Years)
VectaStar used Half the Spectrum of the PtP solution
This economic analysis from the last case study shows how VectaStar has much better financial performance than PtP when comparing the same number of connections coming back to a single aggregation point.
The analysis is shown on two levels – the top of the page looks at the capex and opex at the time of installation – year one
The bottom half of the page looks at the same network over a 5 year period using NPV calculations
Either way – VectaStar outperforms the alternatives.
Deploy PMP Access Point Network for Lower Capex than PtP - AND save on OPEX

20. Next generation backhaul
PMP Microwave Backhaul
Next generation backhaul

21. Key LTE Backhaul Requirements
HSPA 1.8  168
Single or Multi carrier (Multi carrier for Max Rates)
Peak Download: 168Mb/s for multiple 5MHz carrier
Standard final: 2004+, First Deploy:
Commercial: Now (except highest options: 2012(e))
1. Capacity
BTS Backhaul must be more than 30-50Mb/s average & 150Mb/s peak; >300Mb/s peak by 2014
Synchronization
Backhaul must be synchronous with & transparent to several schemes being considered/used.
X2 Switching and Flat Networks
Ability to turn traffic at Hub (not in core) and support simplest flat network hierarchy
4. Low Latency
Backhaul last link latency must be a fraction of total latency requirement of ~10ms end-end
LTE 1x2 SIMO
Variable Carriers: 1.25, 5, 10, 20MHz
Peak Download: 100Mb/s for 20MHz carrier
Standard final: 2009, First Deploy: 2010,
Commercial:
LTE 2x2 MIMO
Variable Carriers: 1.25, 5, 10, 20MHz
Peak Download: 173 Mb/s for 20MHz carrier
Standard final: 2009, First Deploy: 2010,
Commercial:
LTE 4X4 MIMO
Variable Carriers: 1.25, 5, 10, 20MHz
Peak Download: 326 Mb/s for 20MHz carrier
Standard final: 2009, First Deploy: 2013(e),
Commercial:

22. Extremely simple, cost effective microwave backhaul platform
What makes VectaStar different
Extremely simple, cost effective microwave backhaul platform
Gigabit Ethernet ODU
Outdoor
Indoor
-48V DC
Supply
IP/Ethernet Network
IP/Ethernet Network
Gigabit Ethernet Sector
Outdoor
Indoor
-48V DC
Supply
Unique 26 & 28 GHz Radios:
Highest spectral efficiency
5 bits/s/Hz net throughput (data)
All outdoor zero footprint design
Powerful integrated processor
Hitless Dynamic Adaptive Modulation
7 states: QPSK to 256QAM
Supports PtP & PMP architectures
Single platform addresses entire network
VectaStar Terminal
150Mb/s Ethernet throughput
Gigabit interface
Hybrid support via 8xE1 IDU
Typical latency <600 µs
LTE Ready
VectaStar Hub
Gigabit Ethernet
Hybrid and Optimisation support via radio controller
Deploy as PtP or PMP
LTE Ready

23. Buy it now: quadruple capacity tomorrow
IP Optimisation
200% increase in IP throughput (traffic dependant)
Software Upgrade for VectaStar
Complements existing TDM optimisation feature
2+0 resiliency
Enables 300Mbps total sector capacity (2 x 28MHz
Software upgrade for 1+1 redundant AP configurations
If AP1 fails, all AP1’s,Terminals failover to AP2 until AP1 restored.
2+0 sector in normal operation
Sector operation if an Access Point fails
AP1
AP2

24. Point-to-Multipoint microwave backhaul
costs less
high performance
reduces complexity
LTE ready    

25. Thank You!
VectaStar
No other microwave
Solution does this

26. Lance Hiley, VP Marketing LHiley@cbnl.com www.cbnl.com