Transcript Document

Packet Backhaul 2010
The 2010 Opportunity
For Backhaul Wholesalers
Thursday, February 4, 2010
Moderated by
Jim Hodges
Senior Analyst
Agenda
• Business Opportunities & Challenges
for Backhaul Wholesalers
• Backhaul Network Transition Strategies
Our Panelists
• Ralph Santitoro
Director of Carrier Ethernet Market Development
Fujitsu
• Jon Baldry
Technical Marketing Manager
Transmode
Mobile Backhaul:
A Tale of Two Entities
• Mobile backhaul involves a Wireless Provider and a Backhaul Provider
• Even if one parent company owns both parts
• Money/services exchanged between the two entities (separate P&Ls)
• Two network deployments
• Two sets of network and operational requirements
Mobile Switching Center
Cell Site
Backhaul Network
BTS
NodeB
eNodeB
BSC
RNC
S-GW
Wireless Provider
BTS
NodeB
eNodeB
Cell Site
CE
Service Layer
Transport Layer
Backhaul Provider
CE
BSC
RNC
S-GW
Mobile Switching
Center
Challenges Facing
Wireless Operators
• Data rate grows with 3G and beyond, but revenue doesn’t
• Flat-rate data plans
• Network operations
• How do you ensure uninterrupted service to millions of subscribers?
• Backhaul networks must be ultra available with predictable QoS
• What if LTE ubiquity makes it the “mobile WiFi”?
• Integrated into wide range of devices; applications run “in the cloud”
• 3G radios now built into eBook readers, e.g., Amazon Kindle
• Years to upgrade to new backhaul technologies
• 2G, 3G, and 4G at same cell sites for years to come
• Tremendous pressure to make right choice to achieve ROI objectives
Many business issues affect backhaul technology selection
Critical Factors Affecting Third
Party Wholesalers’ Success
• Ability to retrain network operations personnel for Ethernet
• Current Sonet/SDH engineering staff needs to learn Ethernet
• Having a flexible backhaul network architecture to address
current and emerging wireless services
• Today T1s/E1s – tomorrow Ethernet
• Need a good transition plan
• Ability to make acceptable ROI to meet margin objectives
• Three-year service contracts with wireless operators
• Ability to address wireless operators’ stringent SLAs over
an Ethernet (packet) network
•
•
•
•
5ms latency
1ms jitter
3x10-7 loss
5x9s availability
The following statements should be considered as debating points.
They do not necessarily represent the opinions – either wholly or
partially – of Heavy Reading or of any one panelist.
“Third-party backhaul wholesalers
cannot guarantee the same level of
SLA performance as incumbents.”
“Wholesalers face challenges in setting up
administration and control mechanisms.”
“Incumbent backhaul providers have proven
they can support large-scale deployments.”
Mobile Backhaul Migration:
On the Road to Ethernet
• 2G traffic growth small so T1/E1 MRC essentially flat
• What to do with high-growth 3G traffic?
• Some base stations will be upgraded to Ethernet
• Add Connection-Oriented Ethernet (COE)
Bandwidth
• Compelling case to keep 2G traffic on TDM
3G/4G
Data
Voice +
2G Data
Time
• If you have a Sonet/SDH infrastructure
• COE over Sonet/SDH: Simplest to implement / maximal BW efficiency
• Legacy, low-growth 2G services remain on TDM
2G BS
3G BS
4G BS
T1s/E1s (TDM)
T1s/E1s
Ethernet
Ethernet
Sonet/SDH

COE over Sonet/SDH

COE over Fiber
Mobile
Switching
Center
Backhaul providers must deploy a solution that evolves with the
wireless operator’s evolving network  longer recurring revenue
Attributes Of
Connection-Oriented Ethernet
Standardized Services
• MEF 6.1 Service Definitions
• MEF 10.2 Service Attributes
Deterministic QoS
Scalability
• Lowest Delay, Delay Variation, Loss
• Bandwidth Resource Reservation
• Connection Admission Control
• Layer 2 Aggregation
• Statistical Multiplexing
COE
Reliability / Availability
Ethernet OAM
• 802.3ah Link Fault Management
• Y.1731 Service Fault Management
• G.8031 50ms EVC Protection
• 802.3ad UNI & ENNI Protection
Security
• Bridging disabled-MAC DoS attacks mitigated
• Completely Layer 2 - no IP vulnerabilities
COE facilitates the migration from Sonet/SDH to Ethernet
Mobile Broadband:
In Search of Profitability
• Mobile broadband still in build-out phase
• 3G HSPA and EV-DO in 3rd/4th year of rollout
• iPhone, BlackBerry & Android-based smartphones and new 3G devices
• Generate significant new bandwidth demands
• Operators investing for near-term subscriber acquisition
• And long-term transformation of their business models
• Mobile broadband (data) isn’t profitable (yet)
• In 3G, voice and data still discrete network services
• If costs allocated separately to voice and data, mobile broadband (data)
isn’t profitable today
• Mobile broadband driving majority of new network capex
Mobile backhaul opex plays a key role
in realigning profitability
The following statements should be considered as debating points.
They do not necessarily represent the opinions – either wholly or
partially – of Heavy Reading or of any one panelist.
“Changes in the broadband economics
model will have a greater impact on
third-party wholesalers.”
“In order to make wireless broadband profitable,
costs must come down.”
“Incumbent backhaul providers can absorb a squeeze
on margins better than third-party wholesalers.”
Cell tower  MSC
Evolution From Sonet/SDH
To Ethernet
PMO:
Sonet/SDH
MSPP
Sonet/SDH
TDM
T1s/E1s
EoS
Ethernet
2G/3G
FMO Step 1:
Add PONP using COE over
Sonet/SDH to increase
bandwidth efficiency
Packet
Optical
Networking
Sonet/SDH
TDM
T1s/E1s
COE
Ethernet
2G/3G 3G/LTE
FMO Step 2:
Begin Migration to Ethernet
over Fiber (EoF) network
Existing services unaffected
Packet
Optical
Networking
Sonet/SDH
TDM
T1s/E1s
EoF
COE
Ethernet
2G/3G 3G/LTE
Packet-optical networking platforms with COE facilitate
MBH network migration of multi-generation 2G/3G/LTE services
Meeting MBH Networks’
High-Availability Requirements
• Link Protection using IEEE 802.3ad Link Aggregation
• For local diversity and protection at cell tower and MSC UNIs and NNIs
• LAGs across different cards in a network element
• In-Service Software Upgrades
• Network continues to operate as new software is tested and deployed
• Equipment Protection
• Redundant switch fabric, control processors, etc.
• Service/Network Protection of Ethernet Virtual Connections (EVC)
• EVC path diversity with sub-50ms path protection using ITU-T G.8031
• Similar to Sonet UPSR path protection (Working path and Protect path)
• Dual-homed connections at the mobile switching center (MSC)
Bottom Line: No single point of failure
Mobile Backhaul Deployments:
Overlay vs. Integrated
2G, 3G, 4G
Nx 3G E1/T1 leased lines
Nx 2G E1/T1 leased lines
BSC
RNC
aGW
SDH/Sonet
HSPA Data offload
2G, 3G
Remote
cell site
2G, 3G, 4G
LTE
Ethernet
(Best effort?)
Ethernet
(Carrier QoS?)
LTE
GW
• Overlay model:
• Pre-LTE (2G/3G) and LTE backhaul managed as separate networks
• Avoids technical issues such E1/T1 packetization and E1/T1 synchronization
• Capex is driven by parallel networks, and opex is a challenge
• Integrated model:
• Pre-LTE and LTE backhaul managed a combined network
• Technical considerations such E1/T1 and Ethernet synchronization options
• Options to cost reduce backhaul capex with varying degrees of complexity (opex)
Network Synchronization
Challenges: Backhaul Over Fiber
Mbit/s
time
Source: Heavy Reading’s “Ethernet Backhaul Quarterly Tracker” July 2009
•
•
•
•
More fibered-up cell sites, more capacity per site
Fiber assets often owned by third-party wholesalers
Excellent opportunities for wholesalers with the right fiber plant
Drives the requirement for multiple synchronization domains
– different operators and different wireless technologies
– support for legacy E1/T1 and Ethernet
Multiservice
Mobile Backhaul
Physical
fiber
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
Wavelength
n
Wavelength
n+1
4x individually
synchronized
TDM groups
4x individually
synchronized
Ethernet signals
Multiple technologies and
multiple operators all
delivered within a
single wavelength BSC
RNC
Additional wavelengths
only required if additional
capacity required
Hub node
DSLAM
Backhaul node
Access node
2G, 3G, 4G
2G, 3G, 4G
2G, 3G 2G, 3G, 4G
Backhaul node
Hub node
Remote
cell site
Access node
aGW
Backhaul node
Concentration Hub (Site)
With Multi-Operator/Technology
Uniquely supporting wholesale solutions for mobile backhaul
Concentration hubs
BSC
RNC
aGW
Operator 1
LTE
Operator 1
3G
Operator 2
3G
Access node
Hub node
Access node
Backhaul node
Operator 1
3G
Operator 2
3G
Operator 3
LTE
Microwave link
E1/T1
Ethernet
Fiber
LTE Migration Path:
Legacy to Hybrid
1. Supporting legacy connectivity, synchronization, and OAM
2. Supporting simultaneous native TDM and Ethernet for mobile services
and also fixed-line capabilities in the access
Supporting native TDM and Ethernet with multiple synchronized domains
BSC
RNC aGW
3. Transparent Ethernet connectivity to/from core routers/switches
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
Hub node
SDH/SONET
SDH/Sonet
DSLAM
Access node
Ethernet
DSLAM
4. Supporting distributed LTE core architecture (aligned with fixed)
LTE
GW
E1/T1
Ethernet
Fiber
LTE Migration Path:
Hybrid to All-IP
1. Access solution to fully support an all-IP architecture
(option of supporting legacy with CES)
BSC
RNC
aGW
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
Hub node
SDH/SONET
DSLAM
TDM
Access node
Ethernet
LTE
GW
Ethernet / IP-MPLS
DSLAM
E1/T1
2. Deployable on a per-end-customer (mobile operator) basis
Ethernet
Fiber
LTE With Centralized Core
1. Supporting a centralized core architecture for both
hybrid and all-IP networks
BSC
RNC
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
aGW
DSLAM
SDH/SONET
Hub node
Access node
Ethernet / IP-MPLS
2G, 3G, 4G
2G, 3G, 4G
2G, 3G, 4G
Backhaul node
Hub node
Access node
DSLAM
2. Simplified LTE network for mobile operator with further
backhaul opportunities for the wholesale carrier
E1/T1
Fiber
The following statements should be considered as debating points.
They do not necessarily represent the opinions – either wholly or
partially – of Heavy Reading or of any one panelist.
“Third-party wholesalers are making
some early inroads, but it’s a matter
of time before the incumbent providers
get going and out-scale them.”
“Aggressive fiber builds by these providers will be able to provide
capacity to meet existing and future 4G requirements.”
“What are the impacts of network sharing?”
“A mix of TDM and Ethernet is a better match for incumbent providers.”
“This is even more pronounced in emerging markets,
since in these markets third-party wholesaling hasn’t really taken off.”
Conclusion
• Significant mobile backhaul revenue opportunities for third-party
wholesale providers
• Driven by wireless operators’ need to significantly reduce opex given the
explosive growth of 3G/4G applications
• Third-party wholesale providers must carefully select their
mobile backhaul solutions
• Need flexible packet optical networking with connection-oriented Ethernet
to support growing TDM and emerging Ethernet-based backhaul
• Capacity growth drives unique challenges in mobile backhaul
deployments
• Capacity vs. cost = deeper fiber deployments
• Opportunities for facility sharing brings better economics but adds further
challenges, e.g., synchronization
• Overall driving 2 dimensions of convergence:
• Technology convergence – E1/T1 and Ethernet
• Fixed and mobile backhaul convergence
Q&A