Fiber, Microwave and Copper in mobile backhaul market development
1. Fiber, Microwave and Copper
in the mobile backhaul
Business Case
Market Development
Nov 2010
Ed. 2
2. Skyrocket data traffic
• New mobile applications
and bandwidth growth
(>100% in 2009 with much
more to come)
Source: Metro Ethernet Forum
Movies, music, news, chat,
social net, web surfing, e-mail
3. Skyrocket data traffic
Traffic
Operators are experiencing a
Gap between traffic
Gap between
dramatic change in mobile Gap between traffic
traffic and revenue
and revenue
services that move from Voice increases
Dominant into Data Dominant
scenarios with an increasing Revenues
gap between the revenues
and the amount of traffic.
That necessarily leads to a big Voice Dominant Data Dominant
issue:
----------- today ----------------
• HOW TO COPE WITH AN INCREASING DEMAND OF BADWIDTH
KEEPING THE BACKHAUL COST UNDER CONTROL ?
• HOW TO DO IT TODAY ?
4. Comparison
Cross comparison among the three main technologies
used for mobile backhauling
COPPER FIBER MICROWAVE
• No Obstacles • Dig permissions • Spectrum licence
Obstacles • Line of Sight Radio Link
• Per site engineering study
Time to deploy • Immediate • Very High • Short
Cost to dploy • Very Cheap • Very High • High
Equipment Reuse • NO • NO • YES
Bandwidth • Limited • Illimited • High but Limited
Future Proof • NO • YES • Presumably NOT
• Compliant ITU G.8162 • Problematic • Yes but it is spectrum
(performance of consuming (Ethernet + E1s)
Synch IEEE 1588 are still too
network dependant)
5. Copper length distribution
The graph represents the NodeB incremental distribution distances
from the nearest Centreal Offices, in a real European scenario*. The
indicated distance is the reach that can be covered, where possible,
by bonded copper.
Incremental NodeB Distance Distribution
12000
10000
Number of Nodes
8000
6000 NodeB
4000
2000
0
1
4
7
0,1
0,4
0,7
1,3
1,6
1,9
2,2
2,5
2,8
3,1
3,4
3,7
4,3
4,6
4,9
5,2
5,5
5,8
6,1
6,4
6,7
Distance (Km)
* The distribution is a real case of a major Fixed Incumbent operator in Europe.
7. Copper with no boundaries
The blue area shows the amount of NodeB that can be
covered using bonded copper with a real downstream
bandwidth of 100Mbit/s*.
Incremental NodeB Distance Distribution
12000
10000
Number of Nodes
8000
NodeB over Threshold
6000
NodeB underThreshold
4000
2000
0
1
4
7
0,1
0,4
0,7
1,3
1,6
1,9
2,2
2,5
2,8
3,1
3,4
3,7
4,3
4,6
4,9
5,2
5,5
5,8
6,1
6,4
6,7
Distance (Km)
* The distribution is the real case of a major Fixed Incumbent operator in Europe.
8. Incumbent and Challenger
Fixed Operators and Mobile Operators:
A DIFFERENT PERSPECTIVE !!
Incumbent Challenger
Fixed Operators Cost Reduction Competitive Competitive
Mobile Operators Advantage
Cost Reduction
Fixed Operators &
with affiliate Competitive
Mobile Operators Advantage
9. Incumbent Costs case
Cost comparison among Fiber, Microwave and Copper
backhaul with 100Mbit/s per NodeB connection.
Breakdown Costs
Fiber Microwave Copper
Item Cost Item Cost Item Cost
Ethernet Switches € 2.800 1+1 Link € 25.000 8 pairs link € 3.500
Fiber (per meter) €4 Tower € 15.000
Digging Trench € 70
Annual Maintenance Included Annual Maintenance Included Annual Maintenance € 510
Total Cost for backhaul infrastructur of 1600 meters
Fiber Microwave Copper
€ 121.200 € 40.000 € 4.010
Costs
€140.000
Incumbent
€120.000
€100.000
€80.000
Costo i n €
€60.000
€40.000
€20.000
€0
10. Challenger Cost case
Cost comparison among Fiber, Microwave and Copper
backhaul with 100Mbit/s per NodeB connection.
Breakdown Costs
Fiber Microwave Copper
Item Cost Item Cost Item Cost
Ethernet Switches € 2.800 1+0 Link € 25.000 SNGA (8 pairs link) € 3.500
Fiber (per meter) €4 Tower € 15.000 Annual Copper Rent € 126
Digging Trench € 70
Annual Maintenance Included Annual Maintenance Included Annual Maintenance € 510
Colocation Trascurated Colocation Trascurated Colocation Trascurated
Total Cost for backhaul infrastructur of 1600 meters
Fiber Microwave Copper
€ 121.200 € 40.000 € 5.018
Costs
€140.000
Challenger
€120.000
€100.000
€80.000
Costs i n €
€60.000
€40.000
€20.000
€0
11. Long term evolution
There’s no doubt that Fiber will emerge as the winner
technology in the future, slowly eroding the microwave and
the copper on longer distnaces, but for a window of 4-5 years
there is surely space for asymmetrical bonded coppers !!
Technology Breakdown Today Technology Breakdown Tomorrow
Fiber
27%
Microwave;
35%
5 Years
late …
Microwave
48%
Fiber; 56%
Copper Copper; 11%
25%
Source by: Heavy Reading
12. Consideration
Considerations:
• Fiber will surely eliminate any other technologies in the long term
future
• Fiber deployment take time: in the meanwhile challenger can
follow different approach gaining competitive advantages
• The copper in the backhaul can enlast for at least 4-5 years,
giving the operators an immediate advantage in terms of service
and cost
• Even when fiber will erode copper investments, lines with reach
under 1Km can maintain position thanks to a bandwidth of
200Mbit/sec or more (see the table in previous slides)
• Copper cost, as stressed in the previous slides, is a fractional part
of the microwave or, worst of any, of the fiber cost deployment
13. Conclusion
Whenever the fierce competition on
mobile services leads to gain an
immediate and economical market
position IT MAKES ENORMOUS
SENSE to set up a business plan with
asymmetrical bonded copper