Overcoming Barriers to Providing Mobile Coverage Everywhere · broadband, 3G or 4G, infrastructure but do not use Internet services and those with no access to mobile networks at

© 2018

Published by

Overcoming Barriers to Providing MobileCoverage Everywhere

WHITE PAPER

Introduction

WHITE PAPER | 3

New international efforts to tackle digitalinequality have made expanding broadbandinfrastructure a global priority. The UnitedNations’ Broadband Commission for SustainableDevelopment recently set ambitious targets for2025 to connect the remaining half of theworld’s population to the Internet. The goalsinclude a mandate for all countries to establishfunded national broadband plans, or broadbanduniversal service requirements, as well as makingaffordable broadband services available indeveloping countries (costing less than 2% ofmonthly gross national income per capita) by2025.

Mobile Internet connectivity will be key toachieving these broadband sustainabledevelopment goals that will bring economic andsocial benefits to billions of people worldwide.There are two categories of unconnectedpeople: those that are covered by mobilebroadband, 3G or 4G, infrastructure but do notuse Internet services and those with no accessto mobile networks at all. According to theGSMA, about 3.3 billion people are covered butnot connected, while 1 billion people are notcovered.

The challenge for mobile operators is that 60%of the world’s unconnected people live in ruralareas, which requires significant time andinvestment to build networks in extremelydifficult environments. To put the size of thechallenge into perspective, the InternationalTelecommunication Union (ITU) estimates that itwill cost US$450 billion to connect the next 1.5billion people.

As national governments implement the UN’sbroadband targets, mobile network operatorshave an opportunity to expand networkcoverage to close the connectivity gap and offeraffordable Internet services to unservedcommunities in developing as well as developedcountries. Reaching into new territories allowsthem to add new subscribers in the short termwhile stimulating local economic growth that willdeliver higher returns on the investment in thelonger term.

While connecting the unconnected is animportant driver for expanding coverage, it’s notthe only one. Operators in developing anddeveloped countries are under pressure to buildout infrastructure for a variety of business andregulatory reasons. Depending on the market,operator requirements include meeting coverageobligations attached to spectrum licenses,providing national emergency or disasterrecovery services, reducing roaming and leasedline costs and growing their customer base.

But mobile network expansion plans are oftenhindered by the high cost and slow pace oftraditional infrastructure deployment methodsand deterred by low returns on investment. Thiswhite paper examines the challenges ofexpanding mobile networks in remote areas andexplains how space-based managed backhaulsolutions offer an alternative to traditionaldeployments that allow operators to rapidly andcost efficiently build out coverage anywhere inthe world.

“Mobile Internetconnectivity is key toachieving sustainabledevelopment goals thatwill bring economic andsocial benefits to billionsof people worldwide.”

4 | Overcoming Barriers to Providing Mobile Coverage Everywhere

The Remote Coverage ImperativeMobile operators worldwide need to expandnetwork coverage for a variety of regulatory andbusiness reasons.

Tougher Coverage Targets. Despite governmenttargets for population coverage, many peoplestill have poor mobile service quality. Europeanoperators can claim 90% population coveragefor 4G, but this measure ignores large regionswhere people cannot get mobile signals, letalone 4G mobile broadband. In Sweden, amobile operator could have 90% populationcoverage but only cover 50% of the country’sland mass.

To make mobile services available to all citizens,national regulators are attaching strictercoverage obligations to new spectrum licensesby mandating targets for geographic coveragerather than population coverage, along withhefty fines for missed targets. This trend is wellunderway in the EU as regulators in Denmark,France, Portugal and Sweden have alreadyimposed geographic coverage requirements.

Meeting these regulatory demands and avoidingonerous penalties requires faster, more cost-effective ways to expand coverage. If operatorscan demonstrate the ability to rapidly build outnetworks to unserved areas to meet nationalcoverage goals, they also will be in strongerpositions to negotiate better terms and lowerlicense fees when spectrum licenses are up forrenewal.

Competition for New Subscribers. Operatorsthat can quickly build out coverage to remoteareas will have the first-mover advantage inwinning new customers and increasing marketshare, whether they are in a developing ordeveloped market. And since network coverageis also one of the biggest factors thatdetermines customer satisfaction, a sure way tokeep subscribers happy and minimize churnrates is to provide consistently good mobileservice, even in remote areas.

Roaming and Leased Capacity Costs. Operatorsin some markets depend on leased transmissionor roaming agreements to fill coverage gaps,which incurs high, unpredictable operating costs.Minimizing and controlling these costs are bigincentives for operators to expand their owninfrastructure.

Disaster Recovery and Emergency Services. Inlocations that are vulnerable to earthquakes,hurricanes, floods or other natural disasters,operators need infrastructure to provide backupcommunications for disaster recovery efforts.Also, 4G-based emergency services areemerging that require near-ubiquitousgeographic coverage. Without consistentlyreliable network coverage, mobile operators willmiss the opportunities to deliver these services.

“National regulators are mandating tougher coverage obligations along with hefty fines for missed targets.”

“Rapid network expansion in remote areas creates first-mover advantage for winning new customers.”

Barriers to Expanding Mobile Coverage

WHITE PAPER | 5

Despite many drivers for expanding coverage,it’s difficult to make the business case forbuilding out beyond existing infrastructure.Deployments involve costly construction overlong distances -- sometimes with difficult terrainand no power facilities -- to serve smallcommunities that will deliver lower trafficvolumes. If the same deployment models areused as in the rest of the network, the practicalchallenges of remote buildouts often defeat themost well-intentioned coverage plans andnational broadband strategies. Operators needto consider new deployment solutions as well asthe ratio between capital and operatingexpenditure (CAPEX and OPEX) in the costequation.

Cost is the Highest Hurdle. The biggest barrierto remote deployments is cost, both in terms ofCAPEX and OPEX. Generally, the Radio AccessNetwork (RAN) is the most expensive part of themobile network, and a major component of RANcosts is the backhaul transport network thatconnects base station sites to the core network.

Since remote sites can be located anywherefrom 10 to 70 kilometres or more from the corenetwork’s nearest endpoint, installing terrestrialbackhaul using fibre connections or microwavelinks quickly becomes cost prohibitive. For just9.65 kilometres of fibre (with tubing), forexample, the cost can range from US$31,680 –US$190,080 in the U.S. And the longer the

distance, the higher the cost of fibre backhaul.Costs also dramatically increase when fibreneeds to be deployed in places where there aremountains, rivers, or rocky terrain that is difficultto dig.

For microwave backhaul, the costs to reach aremote site in a network can reach an average ofUS$100,000 per site. Considering thatmicrowave requires line of site and that signalsstart to fade after 48 to 64 kilometres, operators

need to install many repeater towers to coverlonger distances. Just one microwave repeatersystem can cost more than US$160,000.Microwave costs escalate in relation to thenumber of sites needed to cover longerdistances and when mountains or dense forestsblock line of site.

“Operators need to consider new deployment solutions as well as the ratio between capital and operating expenditure(CAPEX and OPEX) in the cost equation.”

“The faster an operator can get to market, the bigger the competitive advantage.”

6 | Overcoming Barriers to Providing Mobile Coverage Everywhere

The initial CAPEX for traditional terrestrialbackhaul solutions is a big hurdle. But OPEXconsiderations also affect network expansionplans, such as energy costs. The monthly energybill for bringing power to multiple microwaverepeater and base station sites can be significantin remote areas. In some places, theinfrastructure sites are powered by dieselgenerators, which incurs costs not only for thefuel but also for the trucks and drivers needed todeliver the fuel to the sites.

Delayed ROI Challenges the Business Case.Remote territories can have sparse populationsor low-income communities, which create theconditions for low usage or low AverageRevenue Per User (ARPU). In these markets, ittakes longer for operators to reach ROIthresholds in the business case. To achieve ROIin a reasonable timeframe, the deploymentcosts must be extremely low. This is entirelypossible with alternative backhaul solutions thatspread the cost of each site over multiple sitesbased on average demand and usage scenarios,rather than traditional deployments that allocatecosts to provide a fixed amount of bandwidth toevery site.

Remote Deployments Take Too Long. Thefaster an operator can get to market, the biggerthe competitive advantage. Laying fibre isespecially time consuming. It can take an entireday to lay just 30 – 50 metres of fibre inchallenging geological environments. To lay 10kilometres of fibre can take anywhere from sixmonths to one year.

Fibre and Microwave Can’t Be DeployedEverywhere. Sometimes it’s just not feasible toreach a planned site, especially when mountains,valleys, rivers or dense jungle stand in the way.Access is often limited due to eroded roads, noriver crossings, treacherous roadways alongsteep cliffs, or no roads at all, making itimpossible to use the usual large trucks totransport heavy network equipment andbuilding materials. In some cases, the onlyoptions for hauling equipment to the remote siteare via small all-terrain vehicles or by carrying itall on foot, which are impractical workaroundsthat add time and cost to the project.

Remote Maintenance Challenges WorkforceLogistics. Once it’s up and running, theinfrastructure needs regular maintenance andthat requires teams of skilled field engineers. Inremote regions, field personnel need to makeregular site visits, sometimes in harsh conditions,to maintain equipment, check power supply,inspect backhaul connectivity and repairnetwork faults when they occur.

“Sometimes it’s just not feasible to reach a planned site, especially when mountains, valleys, rivers or dense jungle stand in the way. ”

WHITE PAPER | 7

New Deployment Models Overcome Remote Coverage ChallengesTraditional fibre and microwave backhaulinfrastructure are simply not cost effective forrapid expansion of mobile networks indeveloped and developing markets. Newdeployment models are available today that canchange the equation for operators by takingtime and cost out of remote network projects.

Where fibre and microwave backhaul are notpractical, operators can deploy space-basedcellular backhaul managed services or turnkeysolutions for fast deployment to multiple remotesite locations. Satellite-based backhaul connectsremote sites and the mobile core network usingHigh-Throughput Satellites (HTS) and satellite-based terrestrial network technology. Once thecell sites are built, satellite-based backhaulprovides instant connectivity.

Rapid Deployment. Satellite backhaul servicescan be deployed quickly anywhere in the worldwith no geographic or topology limitations,whether coverage is needed in rural, remote orthe suburban edge of the network. Provided as amanaged service, it is the most cost-efficientway to connect hundreds – even thousands – ofremote cell sites to the core network.

Low Capex. Space-based backhaulservices do not require a majorupfront CAPEX investment, whicheliminates the biggest barrier toremote deployments. In addition,costs do not increase based ondistance or terrain as they do withfibre or microwave backhaul.

Cost Efficiency Enables ROI. In addition to lowCAPEX, the key to the cost efficiency of space-based managed cellular backhaul is that it is apoint-to-multipoint system that enables the costof bandwidth to be shared across all the sites(100s or even 1,000s) connected to the mobileoperator’s core network using dynamicbandwidth allocation. The dynamic allocation ofcapacity is determined by the average usageacross all sites, which is typically low in remoteareas, while also supporting bursts of peakusage whenever they occur on any site. Ratherthan calculating the cost of bandwidth on a per-site basis and over-provisioning fixed capacity tolow usage remote sites to allow for traffic bursts,operators can spread the bandwidth costsacross the entire remote deployment whiledelivering consistently high quality of service.

Simplified Deployment and Management. Themanaged services are also easily re-deployableto new sites, which gives operators flexibility andminimizes deployment times. The managedservice solution also provides expert fieldresources for ongoing management of thespace-based technologies as well as the remotesite infrastructure.

8 | Overcoming Barriers to Providing Mobile Coverage Everywhere

The Case for Satellite-Enabled Backhaul Managed Solutions A leading Asia/Pacific operator wanted toexpand 3G and 4G coverage into rural andremote areas to grow its subscriber base in ahighly competitive, developed market. It alsoneeded to reduce its dependency on leasedtransmission capacity as well as establish robustinfrastructure for disaster recovery services. Thearea to be covered was mostly remote islandlocations where summer holiday and winter skiresorts have seasonal visitors.

When planning the network deployment, theoperator determined that fibre backhaul wascost prohibitive and microwave backhaul wasunfeasible for the terrain. In the search for theright solution, the operator found that satellite-based managed services allowed them toquickly and cost-effectively roll out the network.

The operator deployed over 4,000 3G and 4Gsmall cells, macro cells and disaster recoverysites and leveraged satellite backhaul managedservices. The average traffic across the sitesduring peak usage times is less than 1 Mbps.

Transmission capacity is dynamically allocatedwhere it is needed and shared across many sites– often more than 100 sites -- so that thetransmission profile is configured to deliver 100Mbps on the downlink and 10 Mbps on theuplink. A user at a remote ski resort, for example,can experience a 50-60 Mbps 4G service, whileone user could potentially burst to 100 Mbps.

With a low CAPEX outlay for the backhaulnetwork, the operator was able to reduce costsfor leased transmission and deliver high-quality4G services to customers in the remotest parts ofthe country at any time of year. In addition, thisnetwork expansion also ensured that backupcommunications are in place for disaster recovery.

“With a low CAPEX outlay for the backhaul network, the operator was able to reduce costs for leased transmission and deliver high-quality 4G services to customers in the remotest parts of the country.”

Satellite Innovations Take Mobile Coverage Farther, Faster

WHITE PAPER | 9

While mobile operators have historically viewedsatellite as a last resort – mainly due to perceivedhigh costs, complexity and inferior service quality –recent innovations have greatly improved satelliteperformance, quality and cost efficiency to supportmobile network expansion.

High-Throughput Satellites (HTS). HTS systems, like Intelsat EpicNG, are next-generation satellites that deliver up to 10 times more throughput using the same amount of frequency on orbit compared to traditional fixed-satellite service (FSS). For mobile backhaul deployments, the high capacity of HTS systems easily support 4G speeds on each cell site in a network. HTS systems also dramatically lower the cost-per-bit for delivering services.

HTS systems feature high power density, whichallows mobile operators to leverage smaller VSATantennas. Particularly in remote coveragescenarios, smaller equipment is easier to deployand install.

Intelsat EpicNG satellites cover 99% of the globe to provide truly ubiquitous coverage, which enables mobile operators to expand their networks anywhere in the world. Intelsat’s next-generation satellites also feature a flexible architecture that can be configured to deliver backhaul transmission in any country. That is, any traffic carried over Intelsat satellite backhaul from a cell site to the core is landed in the same country and doesn’t leave the country’s borders. This capability allows mobile operators to meet regulatory requirements for lawful intercept, content filtering, as well as billing.

Mobile Network Integration. Satellite networkscan easily interface with mobile operator’s 4Gall-IP Evolved Packet Core (EPC) networks. Thismakes satellite backhaul services less complexand easier to manage. The integration alsoenables mobile operators to deliver consistentquality of service and policies across theterrestrial and satellite networks.

Managed Services and Turnkey Solutions. Intelsat’smanaged mobile backhaul services support anymobile technology, whether it’s 2G, 3G and/or 4G,and are flexible to support and interoperate withany RAN vendor as chosen by the mobile operator.Intelsat also partners with leading small cell andVSAT vendors to provide complete turnkeysolutions for network deployments to support basicmobile services, mobile data or high-speed mobilebroadband in remote areas. The satellite serviceprovider shoulders the burden of managing theentire mobile backhaul solution, reducingcomplexity and costs and speeding deploymentsfor mobile operators.

Future Satellite Advances. Looking ahead to newsatellite developments, low earth orbit (LEO)satellites will provide an additional layer of lowlatency coverage and capacity to support mobilenetworks. Meanwhile, new antenna technologyand design will create smaller satellite antennasthat are easier to install and more powerful thanprevious generations. These advances will make iteven easier for mobile operators to access flexible,high-throughput satellite capacity.

ConclusionSatellite-based mobile backhaul managed services open new territory formobile network expansion. In sparsely populated communities with limited orslow return on investment, far from any existing power, transport andcommunication infrastructure, satellite-based backhaul allows mobile operatorsto rapidly and cost effectively deliver services to these unserved markets. Butthe benefits are not limited to the remotest corners of the globe. Inunderserved markets, where mobile coverage is patchy or not dense enough todeliver broadband quality of service, satellite-based backhaul services enableoperators to fill in these areas quickly and at low cost. With ubiquitouscoverage, satellite services enable mobile operators to reach further, faster andwherever they want to go.

© 2020

Produced by the mobile industry for the mobileindustry, Mobile World Live is the leading multimediaresource that keeps mobile professionals on top of thenews and issues shaping the market. It offers dailybreaking news from around the globe. Exclusive videointerviews with business leaders and event reportsprovide comprehensive insight into the latestdevelopments and key issues. All enhanced by incisiveanalysis from our team of expert commentators. Ourresponsive website design ensures the best readingexperience on any device so readers can keep up-to-date wherever they are.

We also publish five regular eNewsletters to keep themobile industry up-to-speed: The Mobile World LiveDaily, plus weekly newsletters on Mobile Apps, Asia,Mobile Devices and Mobile Money.

What’s more, Mobile World Live produces webinars,the Show Daily publications for all GSMA events andMobile World Live TV – the award-winning broadcastservice of Mobile World Congress and exclusive hometo all GSMA event keynote presentations.

Find out more www.mobileworldlive.com

Disclaimer: The views and opinions expressed in this whitepaper are those of the authorsand do not necessarily reflect the official policy or position of the GSMA or its subsidiaries.

As the foundational architects of satellite technology, Intelsat operates the largest, most advanced satellite fleet and connectivity infrastructure in the world. We apply our unparalleled expertise and global scale to reliably and seamlessly connect people, devices and networks in even the most challenging and remote locations. Transformation happens when businesses, governments and communities build a ubiquitous connected future through Intelsat’s next-generation global network and simplified managed services.

At Intelsat, we turn possibilities into reality. Imagine Here, with us, at Intelsat.com.

For more information, visit www.intelsat.com.

18/11/8159-Mobile Coverage