Creating the UK’s first LTE network
in 800MHz
Delivering Broadband For All: The UK’s first LTE network in 800MHz
a. Background
b. Technology Economics
c. The Business Model and Opportunity
d. What Preseli Tells Us
e. Case Study: Pembrokeshire
f. Scaling to a National Level
g How and When
Contents
Delivering Broadband For All: The UK’s first LTE network in 800MHz
There are currently 2
million homes in the
UK that cannot
receive basic
broadband
Up to 250,000 small
and medium
enterprise are also
currently unable to
obtain service
Wireless offers the
best economics in
delivering
connectivity to the
final 10%
Additional benefits of
increased mobile
coverage
Broadband for all
before 2015
Broadband for all
homes increases
GDP by £8.7bn
(+0.6%)
Connection of SMEs
could increase GDP
by a further £7.9bn
(+0.55%)
Potential for an
overall >1% increase
UK Background - Broadband For All
1 2 3
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Delivering the Vision
Single Point of
Interconnection
ensuring:
Multiple providers
of retail services,
ISPs and MNOs
Access for new
entrants
Minimal integration
costs
Maximisation of
accessible market
Competitive Service
Layer enabling end
users to:
Choose the
optimum service
provider
Benefit from
providers bundling
offers
Obtain access to
innovative services
and offerings
The Challenge
Deliver a model which:
Minimises costs and
associated subsidy
Maximises economic
benefit
Ensures competition
Delivers universality
Dovetails with other
solution roll out
Delivering Broadband For All: The UK’s first LTE network in 800MHz
The Neutral Host
Neutral Host makes total rural coverage economically viable, minimises
subsidy requirements and delivers a competitive market
Single Shared InfrastructureSingle Point of Interconnect Competitive Service Layer
MNOs
ISPs
New Entrants
Core Network Aggregation Sites and Active ElectronicsPeering Points
E2E Monitoring and Optimisation
Delivering Broadband For All: The UK’s first LTE network in 800MHz
The Preseli Network
HD Touch screen
The Demonstrations
Demonstration System2 × 0dBi
iPhone4
WiFi Bridge
3G Femto
+23dBm800MHz Modem
2x30 Watt10MHz channel
800 MHz
The eNode B
2dB coax loss
Core + Internet
17dB gainDowntilt of 8o
2 × 11dBi gain
Realising the Vision
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Technology Economics
Current BT FTTC ProgrammeLikely Fixed Reach with
Matched Subsidy
c.18m c.24m 27m
66% 10 - 15%19 - 24%
National View1
0
No SolutionFTTC
c.90% to 100%2
90% 94%
BET
96% 100%
Technical feasibility of fixed technology Economics of Different Technologies
Wireless Fixed Satellite
£500
£2,500
£2,000
£1,500
£1,000
Total Costs 2011 to 2020 per subscriber
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Technology Economics
Fibre Hub Model2Macro Deployment1
Fibre PoP
Higher short range frequencies such as 3.5 and
5.8 GHz
Streetwork deployment within local communities
at multiple locations
Harder to engineer an end to end wholesale
solution and ensure quality of service across
the network
Path to NGA less certain, may involve
extending fibre reach
Low long range frequencies are ideal
Macro site deployment utilising existing
infrastructure
Microwave connection to fibre for backhaul
Integrated end to end network with single
wholesale interface to multiple consumers
Path to NGA based on additional sites and
further spectrum (e.g. 2.6 GHz)
Macro Site
Macro Site
Macro Site
Fibre PoP
Delivering Broadband For All: The UK’s first LTE network in 800MHz
The Business Model
Sizing the Market1
Residential
Government reports indicate that 2
million (7.5%) homes cannot currently
get broadband
Our analysis shows 1.3m homes are
located more than 3km away from a BT
exchange
There are a range of technical (e.g. line
length) and individual (e.g. in home
wiring) reasons why people cannot
receive service
Total number of potential connection is between 1.4m and 2.25m
Small and Medium Enterprises
There are 4.8m SMEs in the UK
1.1m employ more than 1 person
30% are located in rural areas
The current unaddressed market is
between 100,000 (CLA) and 257,000
(FoSB) connections
A weighted average indicates a market
of c.190,000 organisations
a b
Delivering Broadband For All: The UK’s first LTE network in 800MHz
The Business Model
Valuing the Market2
Access to a
market worth
up to £450m
per annum
Consumer
Market of
c£360m per
annum
SME Market
of £90m per
annum
Total Addressable Market of 2.0m homes
UK Broadband Penetration is 71%
Market size of circa 1.4m over time
Revenue of £21 per month
Total Addressable Market of 190,000
91% of UK SMEs use broadband
Market size of circa 174,000 over time
Revenue of £45 per month
Delivering Broadband For All: The UK’s first LTE network in 800MHz
What Preseli Tells Us
2,216 addresses are
within 10km of Preseli
within Pembrokeshire
1,587 addresses are
more than 3km from an
exchange
This is equates to circa
70% of households
Homes within 3km of an
exchange may also have
line lengths greater than
3km due to layout
Therefore the market size
may be greater
Delivering Broadband For All: The UK’s first LTE network in 800MHz
What Preseli Tells Us
Post Code Premises Sam Knows Speed Checker
Locations Outside of 3km
SA66 7SB 8
<0.512 Mbps
0.25 – 1. 5 Mbps
SA66 7XN 10 0.25 – 1.5 Mbps
SA66 7SH 1 0.25 – 1.5 Mbps
SA66 7SG 2 0.25 – 1.5 Mbps
SA66 7XJ 23 0.25 – 1.25 Mbps
SA66 7RY 22 0.5 – 4 Mbps
SA66 7RU 16 0.25 – 1.25 Mbps
SA66 7RT 4 0.25 – 1.5 Mbps
SA66 7RX 4 0.25 – 1.25 Mbps
SA66 7SF 1 0.25 – 1.25 Mbps
SA66 7JP 6 0.25 – 1.5 Mbps
SA66 7SE 16 1.5 – 6.5 Mbps
SA66 7SN 8 0.25 – 1.5 Mbps
Location Within 3km
SA66 7SA
>2 Mbps
1 – 5 Mbps
SA41 2QW 1.5 – 6.5 Mbps
SA41 3QT 1.5 – 6.5 Mbps
SA34 0YN 1 – 5 Mbps
SA34 0XS 1.5 – 6.5 Mbps
SA34 0XR 2.4 – 8 Mbps
Not Spot
Postcodes
Analysed
50 and 4 Mbps peak downlink throughputs achieved close to the site and at
cell edge respectively
As part of an LTE network, an average sector throughput of around 80Mbps
would be achievable assuming 2x30MHz and a fixed directional antenna
With the above rate and number of not spots identified, average user rate of
c.625 kbps forecast, with a 3:1 contention ratio over air with 2Mbps minimum
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Case Study: Pembrokeshire
Arqiva worked with Ofcom to evaluate the feasibility of delivering 2 Mbps to each household pre DSO
The study assumed:
– an external directive antenna mounted 10 meters above ground level
– 30 MHz of paired 800 MHz spectrum
– Use of TV transmitter sites to minimise the risk of interference, using the same antennas (Omni pattern)
Land Area: 1,644 Sq Km
Premises in Area: 58,213
Premises >3km from Exchange: 7,953
Proportion >3km: 14%
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Case Study: Pembrokeshire
St David’s
Trefin
Newport Bay
St Dogmaels
Haverfordwest
Broad Haven
Pembroke Dock
Greenhill
Tenby
Fishguard
Results
90 percent of delivery points >3
km from exchanges covered by
10 existing relay sites
The study concluded at 50%
user penetration an average
rate of 150Kbps is delivered
Key Points to Note
Sites had the TV antenna only,
therefore no sectorisation
Additional sites and network
optimisation would provide total
coverage and increase average
user throughput
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Nationwide DeploymentMulti Site User Trial
Scaling to a National Level
Preseli
Until January 2011 Spectrum Selection Dependant
Single Site Demonstration
Proof of technology and
translation of radio planning
to physical deployment
Multiple sites enabling end
user participation
Location TBC
Delivered via a partnership of
fixed, ISPs and MNOs
Up to 2,500 sites in 800 MHz
Collaborative roll out by partnership
Alignment to procurement process
Dependency on spectrum access
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Delivery of Broadband for All is possible before 2015
Spectrum DeploymentPartnerships
Realisation of the vision is reliant on the right partnerships forming, accessing suitable spectrum and ensuring
scale deployment to drive efficiency:
All stakeholders need to work
together to minimise cost and
maximise delivery
Approach to procurement will
dictate delivery timescales
A nationwide rural sub 1 GHz
macro deployment would
require up to 2,500 sites
This is deliverable within a
2.5 year period
Smaller scale deployments
will follow individual
trajectories
Infrastructure
Provider
Service
Providers
Backhaul
and Core
GovRDAs
BIS Ofcom
Key variable in determining
when broadband for all can be
delivered
Sub 1 GHz Bands: 2013
Higher bands: Now via
partnership arrangements
Unlicensed Bands: Now but
present end to end QoS issues
Requires joined procurement
and regulatory regime
Delivering Broadband For All: The UK’s first LTE network in 800MHz
What We Can Deliver
▌ Proven LTE RAN, ePC and IMS technology
selected by Verizon Wireless in USA for
2010 network commercial launch
▌ Leading provider to the worlds Service
Providers with Number 2 Market share in IP
edge routing
▌ Expertise in designing, building and
managing increasingly complex networks
helps customers deliver converged services
across a variety of networks and devices
▌ The UK’s largest independent provide of
radio sites - 8,000 operational and 13,000
Marketable sites
▌ Provider of network managed services for
entire UK television and radio industry
▌ Extensive network deployment expertise
▌ 24/7 operations and maintenance services:
350 field operations engineers
▌ Backed major infrastructure shareholders
TechnologyNeutral Host
PlatformImplementation
Infrastructure
Consulting
Integration
Capital
Operations
IT Systems
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Conclusion
Shared infrastructure makes a rural service viable1
Universal access could increase GDP >1%2
Neutral host provides competitive service to 2.25m users3
Wireless is the optimal technology in the final 10%4
Nationwide deployment delivers universality within 3 years5
Q&A Session
Appendix
Delivering Broadband For All: The UK’s first LTE network in 800MHz
Economic Benefit of Broadband
Direct
Benefits
Immediate Value Creation from direct
investment in networks
Multiplier effects from impact of broadband
investment on suppliers, content providers
etc….
Indirect
Benefits
Foreign direct investment as a result of
good ICT infrastructure
Productivity increases from more efficient
business processes
Human capital formation due to increase in
knowledge and skills
0.6%
1.2%
1.3%
0.6%
0.9%
McKinsey OECD World Bank Allen Average
Benefits of increased broadband penetration1 Impact of a 10% increase in broadband on GDP2