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CALY Networks
Converting Spectrum to Profit
Cees van der Stoep
Broadband Wireless world forum 2001
[email protected]
C A L nYe
t w o r k s
Cannot Deploy Fiber Fast
Enough
If XO Communications had its
way, all its customers would be
connected to fiber. “But it will take
decades” admitted CTO Doug
Carter.
BWB Oct 2000
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C A L nYe
t w o r k s
The Opportunity:
Businesses Need Bandwidth
Wired
Wireless
High Bandwidth
Fiber OC3
LMDS 28GHz
Low Bandwidth
DSL/Cable
MMDS (ISM)
mm-wave radio can deliver lots of bandwidth
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t w o r k s
“Last Mile” Challenges
“Bandwidth bottleneck”
Wireline broadband solutions are costly and have
long installation lead-times
Current wireless solutions have problems
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Wireless Point-to-Multipoint
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Wireless Point-to-Multipoint
30% of buildings
are in the shade
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Meshed Network using
Point to Point
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t w o r k s
Meshed Network using
Point to Point
15 links 30 radios to be
planned , installed and aligned
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t w o r k s
Limitations for Deploying
Wireless Networks Today
Cost and availability of equipment
Scalability of emerging PMP - PP architecture
–
–
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Complexity and deployment cost
–
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Capacity restrictions
Effective coverage
Difficult to add customers, expand
Site planning
Frequency planning, reuse models
Regulations, Roof Rights, CO-locations
High Cost of Ownership
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C A L nYe
t w o r k s
CALY Hybrid Fiber RadioTM
Dynamic Wireless Networking
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Less than half the amount of
equipment and <10% of
install cost
C A L Y
10
n e t w o r k s
Where is the Money ?
Services Revenue : – Web hosting
Cost :
– Telecommuter
– ERP
– B2B exchange
– VPN
– Content
– Security
– Equipment
– License
– RF planning
– Installation
– Interconnect
– Roof rights
– Churn
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C A L nYe
t w o r k s
Explosive Growth in Internet
& IP Services
Requirements of Network Infrastructure
Multimedia
VPN
Wireless
LAN
Wireless
Internet
Intranet
Internet
Backbone
Fax
Internet
Access
E-Commerce
Unified
Messaging
Video
SoftwareDefined
Services
VOIP
Voice
Source Chase H&Q
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Complexity
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C A L nYe
t w o r k s
Businesses Need QoS
Mission critical,
real time applications:
–
–
–
–
–
B2B e-Commerce
hosted business apps
stock trades
streaming audio/video
collaborative computing
Failed/Delayed
Connection
Loss of revenue
Loss of productivity
When transaction delays mean losses of real dollars
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C A L nYe
t w o r k s
RITA
Wireless Routing Algorithms
Data Packet Scheduling
–
–
–
–
ISP A
Bandwidth allocation
QoS support
Priority differentiation
Fairness
IP Backbone
ISP B
Data Packet Routing
–
–
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Path diversity
Load balancing
Link and node failure redundancy
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C A L nYe
t w o r k s
Multipoint To Multipoint
“Sweet Spot”
TCP/IP
– Ethernet
– Fast Ethernet
– Giga Ethernet
Wireless Access and
Metropolitan Networks
MTU/MDU and
Business Users
100 Gbps
Fiber Optic
10 Gbps
-
1 Gbps
100 Mbps
T3----
Transmission Rate
E3----
MPtMP
Free-Space-Optical
10 Mbps
E1----
T1----
LMDS PMP
1 Mbps
DSL
DSL
0.1 Mbps
Residential
Vioice and
Data
Copper Cable
Long
Haul
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WLL
Satellite,
Dense
Industrial
Residential Rural Remote
Urban
Urban
SubUrban
SubUrban
Geographic and Population Topology
C A L nYe
t w o r k s
Business Case
Financial model compares broadband wireless
access networks
–
–
–
PMP Wireless Local Loop (LMDS, BWA)
Point-to-Point
CALY Hybrid Fiber Radio
Analysis includes:
–
–
–
Network coverage
Cash flow and profit & loss
Financial measures: NPV, IRR, funding requirements
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Business Case Methodology
Models entire city: Manchester, UK
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Market demand driven
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All businesses with more than 10 employees
Network coverage grows organically
Demand peaks at 15% after 4 years
Models growth on quarter by quarter basis
User-chosen node locations
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Network Coverage - CALY
City of Manchester
50
40
30
number companies
market demand
CALY customers
CALY seed nodes
20
10
0
0
10
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30
40
18
50
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Network Coverage - PMP
City of Manchester
50
40
30
number companies
market demand
PMP customers
PMP seed nodes
20
10
0
0
10
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30
40
19
50
C A L nYe
t w o r k s
Cumulative Cashflow
($M)
Cumulative Cash Flow
UK Business Case
25
20
15
–CALY
10
–PtP
5
–PMP
0
-5
1
2
3
4
5
6
7
8
9
10
-10
Year
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C A L nYe
t w o r k s
CALY Hybrid Fiber Radio
Intelligent Wireless Choice
End User Benefits:
Broadband bandwidth
access to Internet
backbone
IP QoS
Resilient network
Cost-effective
connection
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LDMS Operator Benefits:
Limited initial capital
requirements, yielding
high IRR
Grow network with new
customers
No RF planning, site
acquisition issues
Fast, easy installation
Self-healing network
Automatic load balancing
QoS offers new services
potential
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C A L nYe
t w o r k s
Summary
Broadband IP wireless solution that finally
solves the “last mile” bandwidth bottleneck
Elimination of wireless implementation obstacles
and lower costs enable broader deployment
Enables delivery of new high-margin IP QoS
services
High-Performance Wireless Networking made Feasible
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Conclusion
Commercial Broadband
IP Wireless Solution @
Breakthrough Economics
Converting Spectrum to Profit
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C A L nYe
t w o r k s
Wireless Networking Redefined
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C A L nYe
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Back-up
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C A L nYe
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CALY Networks
Corporate:
CALY Networks
295 Santa Ana Court
Sunnyvale, CA 94085
USA
Tel: 408.730.8800
Fax: 408.739.7453
Europe:
World Trade Center
1300, route des Cretes, BP255
[email protected]
www.calynet.com
[email protected]
Broadband Wireless world forum 2001
06905 Sophia Antipolis, CEDEX
France
Tel: +33(0)4 92 94 00 27
Fax: +33(0)4 92 94 03 40
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