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www.cbnl.com Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013
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Managing OPEX and CAPEX in small cell backhaul · Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

Jan 25, 2020

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Page 1: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

www.cbnl.com

Managing OPEX and CAPEX

in small cell backhaulDr John Naylon, CTO, CBNL

Small Cells World Summit, 4 June 2013

Page 2: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

2

Today’s agenda

1. How to break the

‘backhaul barrier’

2. Choosing from the

backhaul toolbox

3. A simple TCO model

for small cell backhaul

4. Multipoint microwave

Page 3: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

www.cbnl.com Commercial in confidence 3

How to break the

‘backhaul barrier’

Page 4: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

The ‘backhaul barrier’: understanding the perception

• Can I even get backhaul at all these

funny locations?

www.cbnl.com 4

Conviction

Page 5: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

The ‘backhaul barrier’: understanding the perception

• Can I even get backhaul at all these

funny locations?

• Most operators will deploy small cells

to increase the QoE for the end user

by increasing network capacity.

Can I get enough backhaul capacity

at all these locations?

www.cbnl.com 5

Conviction

Capacity

Page 6: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

The ‘backhaul barrier’: understanding the perception

• Can I even get backhaul at all these

funny locations?

• Most operators will deploy small cells

to increase the QoE for the end user

by increasing network capacity.

Can I get enough backhaul capacity

at all these locations?

• Will I be able to deploy small cell sites

en masse at 10% the cost of a macro site?

www.cbnl.com 6

Conviction

Capacity

Cost

Page 7: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

How to break the ‘backhaul barrier’: conviction

www.cbnl.com 7

Documents use cases, backhaul

requirements and backhaul solutions

(4 wired and 8 wireless)

Key messages:

• Backhaul is NOT a barrier

to small cell deployment

• Many technically feasible solutions

for small cell backhaul exist

• Total cost of ownership

will dictate optimal solution

Page 8: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

How to break the ‘backhaul barrier’: capacity

How much backhaul capacity do I need for a small cell?

www.cbnl.com 8

1 10 100

Backhaul traffic generated, Mbps (log scale)

Source: ngmn.org Small Cell Backhaul Requirements

See cbnl.com/bursty for more details

Page 9: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

How to break the ‘backhaul barrier’: capacity

Pragmatic backhaul for small cells uses wireless

technology as an “on-ramp” for fibre

81% of operators said wireless was the primary

backhaul option for the last mile to small cells Source: Infonetics

www.cbnl.com 9

Wireless

• Great availability at

small cell locations

• Capacity depends on

chosen frequency

Fibre

• Availability at small cell

locations uncertain

• Capacity unlimited to

all intents and purposes

Page 10: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

How to break the ‘backhaul barrier’: capacity and spectrum

www.cbnl.com 10

Source: Frequency Band Review for Fixed Wireless Service, Ofcom

Sub 6GHz:1.54 GHz for licensed and unlicensed, fixed & mobile,access and backhaul

Microwave:16.4GHz for terrestrial fixed links

millimetre wave18.3GHz

UnlicensedLight licensed

Link licenced (PTP)Area licensed (PMP)

Area licensedUnlicensed

Page 11: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

www.cbnl.com 11

Choosing from the

backhaul toolbox

Page 12: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

Choosing from the backhaul toolbox

www.cbnl.com 12

Solution Spectrum

available

Capacity fit

TV Whitespace ~ 0.2 GHz* Poor

Satellite ~ 0.5 GHz* Poor

Sub-6GHz licensed 0.5 GHz Marginal

Sub-6GHz unlicensed 0.3 GHz Marginal

Microwave multipoint 6.7 GHz Good

Microwave PTP 9.6 GHz Good

60GHz mm-wave PTP 6.8 GHz Good

70-80GHz mm-wave PTP 9.5 GHz Good

* variable

Page 13: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

Choosing from the backhaul toolbox: capacity screening

www.cbnl.com 13

Solution Spectrum

available

Capacity fit

TV Whitespace ~ 0.2 GHz* Poor

Satellite ~ 0.5 GHz* Poor

Sub-6GHz licensed 0.5 GHz Marginal

Sub-6GHz unlicensed 0.3 GHz Marginal

Microwave multipoint 6.7 GHz Good

Microwave PTP 9.6 GHz Good

60GHz mm-wave PTP 6.8 GHz Good

70-80GHz mm-wave PTP 9.5 GHz Good

* variable

Page 14: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

www.cbnl.com 14

A simple TCO model

for small cell backhaul

Page 15: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

A simple TCO model for small cell backhaul

www.cbnl.com 15

We use this model to compare the microwave

and millimetre-wave PTP and PMP solutions

that pass the ‘capacity’ screening criterion

Page 16: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

TCO comparison: multipoint v point-to-point

www.cbnl.com 16

Multipoint

microwave

Point-to-point

microwave/mm-wave

Bandwidth dynamically

shared between links

Statically provisioned

bandwidth for each link

At hub, shared radio

and antenna for all

links

At hub, dedicated

radios and antennas

for each link

Page 17: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

Compare TCO to backhaul 5 small cells: equipment

www.cbnl.com 17

SC

PoP

SCSCSCSC

Assume hub is 2× price of

small cell end

Each additional small cell

needs only the remote end

of the link

7

cost

Unit of cost = 1 radio transceiver. Assumes PMP and PTP radios are equally priced, which is valid for

microwave comparison. Millimetre wave radios are currently ~2× price of microwave radios.

Source: Maravedis-Rethink, Wireless Backhaul Market from an Intermodal Perspective

SC

SC

PoP

SCPoP

SCPoP

PoP

SCPoP Each additional small cell

needs equipment at both

ends of the link (for star or

chain configurations)

1 link per small cell site

10

cost

Multipoint

microwave

Point-to-point

microwave

Page 18: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

Compare TCO to backhaul 5 small cells: installation

www.cbnl.com 18

SC

PoP

SCSCSCSC

Assume hub is 2× price of

small cell end

Each additional small cell

needs only the remote end

of the link

7

cost

Each new link to a site

needs two teams and

simultaneous access to each

end of the link for alignment.

Assume this is 3× price of

sending one team to one site

15

cost

Link

Link

Link

Link

Link

Unit of cost = 1 site installation

Multipoint

microwave

Point-to-point

microwave

Page 19: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

Compare TCO to backhaul 5 small cells: site rental & power

www.cbnl.com 19

SC

PoP

SCSCSCSC

Hub site may have higher

rental or power consumption

than small cell site

Single antenna at each

small cell site

7

cost

Unit of cost = 1 year’s site rental and power

SC

SC

PoP

SCPoP

SCPoP

PoP

SCPoP Rent is per antenna, and

power consumption per

radio, so each additional

link incurs another two units

1 link per small cell site

10

cost

Multipoint

microwave

Point-to-point

microwave

Page 20: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

-

20,000

40,000

60,000

80,000

100,000

120,000

0 1 2 3 4 5 6 7 8 9 10

5 y

ear

TC

O,

NP

V

Small cells per backhaul hub

5 Year TCO Comparison

www.cbnl.com Commercial in confidence 20

-

20,000

40,000

60,000

80,000

100,000

120,000

0 1 2 3 4 5 6 7 8 9 10

5 y

ear

TC

O,

NP

V

Small cells per backhaul hub

Conclusion

— Microwave PMP can offer very significant TCO savings versus

microwave or (especially) millimetre wave PTP for small cell backhaul

— Spectrum rental and coordination costs are decisive

Consensus view is 3-5 small cells

per macro in 5 year timeframe

PTP millimetre wave

PTP microwave

Multipoint microwave

Page 21: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

www.cbnl.com 21

Multipoint microwave

Page 22: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

VectaStar Metro – small cell backhaul solution

www.cbnl.com 22

Small cell multipoint microwave

backhaul from the market leaders

• 600Mbps throughput

• 600µs mean round-trip latency

• SyncE, 1588v2 support

• 26GHz and 28GHz ETSI

Built on the established VectaStar

platform

• Used by 7 of the 10 largest mobile

operator groups in the world

• Deployed in 37 countries worldwide

for 2G, 3G, 4G, Wi-Fi

Page 23: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

www.cbnl.com 23

Summary

• The backhaul barrier of ‘conviction’, ‘capacity’ & ‘cost’ –

has been broken

• Good end-user quality of experience requires much more

backhaul capacity than there is low frequency backhaul spectrum

• Microwave and millimetre wave (PTP and multipoint),

can all “do the job” for small cell backhaul

• Multipoint microwave for small cell tail links offers significant

TCO savings through higher utilisation of equipment and spectrum

Page 24: Managing OPEX and CAPEX in small cell backhaul ·  Managing OPEX and CAPEX in small cell backhaul Dr John Naylon, CTO, CBNL Small Cells World Summit, 4 June 2013

Small cell backhaul: the big picture

www.cbnl.com 24

Pick up a copy of our new

small cells white paper!

• Market progress

• Deployment drivers

• Styles of deployment

• Backhaul requirements

• Backhaul solution overview

• Backhaul TCO analysis

Available from:

cbnl.com/smallcells