Primary Enabling Infrastructure For The Mobile Internet

Presented by: Ian Serrao Director – Network Services Columbus Communications Trinidad Ltd.

Mobile Industry Observations

• Currently Over 3 billion mobile phone users, estimated to grow to 5 billion in 2010 – Growing dependence on mobile connectivity – Demand for Data mobility – Significant increase in Data, video and application development • Traffic growing exponentially due to consumer demand for mobile data services for e-mail, text messaging, web access etc • Push for more bandwidth accelerated by new handsets such as iPhones that combine digital media entertainment with web based applications

Source: Infonetics Research, 2008

Analyst Predictions, Statistics and Trends

• Demand for bandwidth will grow exponentially while revenue for the operator will taper off • Carriers are exploring various technologies to provide cheaper

Gap between and revenue

and more effective ways to meet the capacity growth at a lower CAPEX and OPEX cost • Evolution towards Ethernet/IP based mobile solutions Voice Dominant • Bandwidth demands – Mobile Call -16k, – Text Messaging– 9.6 -240k – Web browsing – 128-384k (min) – Media Streaming – 2-15 Mbps

Worldwide M obile 1st M ile Backhaul Connections: Installed vs New

5,000 4,000 3,000 2,000 1,000 0 CY05

Worldwide Cell Site Connections Growing

New connections Installed connections • Installed WW connections • 2006 = 2.9 million • 2010 = 4.8 million • Ethernet fastest growing through 2010 • Mobile operators pay incremental charges for 2x to 10x bandwidth • New options solve major problem for operators CY06 CY07 CY08

Calendar Year

CY09 CY10

Source: Infonetics Research Mobile Backhaul Equipment, Installed Base & Services, 2007

Backhaul the Critical Link

• The Mobile Backhaul network : • Is the critical link between the mobile subscriber and the • • network or the Internet Links the remote base stations and cell towers to the mobile operators core networks Provide access to both the voice network and the internet Wireless handset Copper Fiber Carrier Base Station Mobile Switching Office (provisioning, call routing, etc)

Mobile Evolution

With downstream data rates capable of delivering a theoretical 14.4 Mbps of user throughput, the demand for bandwidth in the backhaul network is increasing by an order of magnitude from where it is today

Impact of New Services on Backhaul Circuits

• New services provide additional capabilities but require more bandwidth.

• T1/E1 TDM Backhaul Circuits traditionally used are ideal for carrying high-value voice services but are not optimized for high bandwidth data services.

• Backhaul links are becoming congested

Possible Solutions

• Separate mobile voice services directly at the cell site.

• Data traffic can be backhauled using lower cost broadband technologies (xDSL, cable modem, Carrier Ethernet) • Migrate all services voice and data to a single platform that meets all the needs required to deliver service to the customer

The Future of Mobile Backhaul

• Economic advantages of Ethernet will lead to its widespread use for mobile backhaul networks • Introduction of Ethernet and IP interfaces in mobile base stations and radio controller equipment • Migration of legacy TDM circuits to Carrier Ethernet Solutions • Global Consensus and Adoption of Carrier Ethernet Standards

•

Advantages of Carrier Ethernet Backhaul

Ethernet – Economically meets exploding bandwidth requirements currently constrained by the prohibitive costs of legacy network upgrades – Efficient and simple for service providers to manage and maintain – Reliable with full SLA support and full OAM capabilities • • • • Most mobile data traffic is broadband/IP centric – Ethernet is optimized for packet data traffic Overcomes TDM (T1/E1) scalability – This makes Carrier Ethernet the compelling choice Packet can be extended to the cell site over other physical technologies: –

WiMAX

– – –

xDSL Bonded Copper GPON/EPON

Time/urgency – Ethernet NodeB’s are being deployed now by all major networks – Carrier Ethernet removes the barrier for timely network upgrades

Ethernet Options Solve Backhaul Cost Problem

$40,000

Worldwide M obile 1st M ile Backhaul Service Charges per Connection: PDH and ATM over PDH vs New Wireline

Stay on PDH

$37,044

$30,000 $20,000 Ethernet $10,000

$6,887

$0 CY05 CY06 CY07 CY08

Calendar Year

CY09 CY10 PDH and ATM over PDH New wireline • PDH (T1/E1 etc.) costs climb directly with bandwidth • Ethernet wire-line costs grow gently with large bandwidth increases (Eth, DSL, PON, cable) • New IP/Ethernet wire-line options to satisfy the the #1 investment driver: operational cost savings

Source: Infonetics Research Mobile Backhaul Equipment, Installed Base, and Services, 2007

BTS Node B

Traditional Transport

nxT1/E1 IMA Agg Site With Legacy ATM Switch BSC E1 FR ATM STM1 RNC SDH ATM Core Site PDSN or SGSN ATM FR MSC BSC RNC IP/MPLS Core     Backhaul traffic via TDM/SDH network All bandwidth is “nailed-up” All scaling must be planned well before provisioning Separate networks for backhaul and core

Pseudowires – The solution to the Internetworking Challenge

• Enable the use of new packet networks • Provides a choice among multiple available packet network technologies • Uniquely combine circuit emulation and service emulation over a packet network • Deliver a solution allowing the transport of TDM, HDLC, and ATM based services over frame based technologies such as MPLS, IP and Ethernet Networks

BTS

Future Transport Network

Node B nxT1/E1 IMA E1 FR BSC Psuedowires STM1 RNC Core Site PDSN or SGSN ATM FR MSC BSC RNC IP/MPLS Extends into the RAN     Pre-aggregation sites shorten TDM/SDH runs Backhaul traffic via psuedowires Preprovisioning for intuitive scaling MPLS core is extended into the Backhaul Network

Carrier Ethernet Access Technology Benefits

When To Use Key Attribute(s) Ethernet Backhaul Solution

Ethernet over Copper /Mid Band Ethernet Copper Pairs Available. No fiber or radio.

7x more bandwidth per pair than traditional T1/E1 services. Greater reliability, lowest cost per bit to deploy Ethernet over PDH No dark fiber available. Long distances.

Straightforward provisioning. Works over existing T1, E1, DS3, E3 circuits Ethernet over Microwave No available Terrestrial Facilities Ethernet over Fiber Fiber Available No wireline or fiber facility required Rapid deployment Low OPEX Full ownership and control Optimal performance. ‘ Unlimited ’ bandwidth (up to 10GbE)

Mobile Backhaul Equipment Market Trends

Worldwide M obile 1st M ile Backhaul Equipment Revenue by Technology

$9,000 $6,000 $3,000 $0 CY05 Microwave CY06 CY07 CY08

Calendar Year

CY09 CY10 Other PDH NIU SONET/SDH PDH/SDH microwave Ethernet microwave Ethernet copper and fiber

Source: Infonetics Research Mobile Backhaul Equipment, Installed Base & Services, 2007

Thank You