The Backhaul Battle

1
The Backhaul Battle

• Who will win?

Presented to NetEvents 2007 European Press Summit
Date Thursday February 22, 2007
2
Company Background

• Founded in 1997
• Leading Provider of Competitive ResponseTM
  Solutions
• 80 Researchers Analysts Worldwide
• 40,000 Subscribers
• 250 Enterprise Customers
• Headquarters in Washington D.C. Offices in San
  Diego, CA Dallas, TX London and Paris

3
Killer Applications How does all-IP Mobile
Change the Rules of the Game?

• Amazingly enough the killer application is
  going to remain VOICE we are naturally
  talkative!
• Rich-media communications over converged devices
• 4G field-trials by NTT DoCoMo
• 3D virtual reality and interactive video/hologram
  images
• Increased interactions with compatible
  technologies (e.g., smartcard prepaid electronic
  cash apps or putting house heating on before you
  come home)

4
NTT DoCoMo 4G

• Advanced video handset suited to 4G network

• Wrist-phone mobile handset

5
Pure-IP Mobile

• HSDPA will drive mobile VoIP over cellular
• UMA extends to WiFi hotspots

6
Bandwidth Demand and Costs Is there a Scalable
Business Model?

• 3G evolving to HSPA, followed by UTRAN LTE
• Total traffic volume increasing 100 annually
• ARPU not growing in sync. with backhaul costs!
• Operator tendencies
• Mobile operators rely less on traditional Leased
  Lines
• OpEx must reduce
• Self-build interesting to convert OpEx to CapEx
• Achieve ROI on legacy SDH and ATM
• TDM move to Ethernet for HSPA support
• Backhaul statistics
• Backhaul 16 of CapEx
• Backhaul 20 of OpEx
• Leased lines - anything from 6-25 of OpEx

7
Infrastructure

• What's the best in-home technology?
• WiFi
• Femtocells
• Bluetooth
• How long for IMS interoperability?
• Not here yet
• Standards in evolution (new components being
  added)
• How long until mobile networks can support
  bandwidth for all-IP?
• Voice requires good, consistent bandwidth
• HSPA investments just taking place (operators
  want to pay off investments)
• WiMAX still unproven
• LTE still years away

8
Infrastructure Sales Marketing of All-IP Mobile

• Services
• What are the applications? (WiMAX operators say
  that they don't even know!)
• How will operators charge for them?
• How will operators educate market from zero
  momentum?
• Devices
• Will operators need to significantly subsidize
  devices?
• Will an operator subsidize devices that can then
  be used off its own network?
• How long until device costs drop for mass-market?
• How long for entire ecosystem to develop
  including PC, TV, devices, home hub,
  refrigerators, etc.?

9
Transport

• There is an "elephant in the room Internet
  Explorer, we all know it's a problem!
• How long will it take to deploy fiber to meet the
  new bandwidth demand with a realistic cost and
  ROI?

10
Backhaul Issues

• Economics
• More NodeBs, more links, more sites, more
  planning
• P2p links mean lots of aerial infrastructure
• Performance
• Even new-build 2G access not enough for HSPA
• Spectrum is limited
• Interference is increased (smaller cells -gt
  higher density)
• All-IP remains unproven
• TDM/ATM legacy support, carrier grade, flexible
  bandwidth management
• QoS control
• IP knowledge

11
Panel Discussion

• What should be the objective for deployment of
  microwave transmission systems?
• In access-backhaul networks?
• In backbone-core networks?
• How would you describe the current market
  condition of microwave transmission?
• e.g., commodity, competitive, innovating, mature,
  declining, evolving to NGN
• What are your companys overall priorities for
  the transmission network?
• higher capacity, lower costs (opex/capex),
  network renewal, replacement with fixed
  technology
• How are the priorities different in access and
  backbone?
• How important is Ethernet?
• How important is scalable bandwidth?
• How important is a wide range of spectrum options?

12
QA

• Thank you

13
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