1. Wireless Backhaul Evolution Consolidation, Management and Strengthening of the Data Network

2. Wireless backhaul is essential to today’s network
Introduction
Backhaul: Once the “after thought” of the wireless infrastructure
Explosive amounts of data back through the wireless infrastructure in the last (5) years
4G and LTE are pushing the boundaries of the existing network
Now considered an essential element of the network: The New Wireless Cash Cow?
Standard T1 copper network unable to meet the new topology
Wireless backhaul is essential to today’s network

3. Evolution of Wireless Backhaul
Initial providers only focused on voice
As network speed evolved (LTE), data became the primary driver
Large data streams brought greater demands on wireless backhaul
20% of copper backhaul is over- burdened; rising to 50% by 2015
Today’s copper T1 backhaul can handle a maximum of 1.5 to 2 Mbps
Wireless backhaul needs to meet the ever growing network requirements of today

4. Wireless Market Evolution
Consumer Needs
Greater mobile flexibility through voice, text, and video
Faster data speeds for mobile applications
Service Provider Needs
Lower infrastructure costs
High speed radio systems
Ethernet and microwave backhaul compatibility
VoIP
DATA
Consumer
Provider
OEM
The wireless infrastructure is data centric

5. Mobile Data Replaces Fixed Data
Broadband subscribers to reach 3.4 billion by 2014
80% of the users will be mobile based
Fixed broadband growth expected to remain near static
Service providers are being driven by (2) distinct trends
Increase in smart mobile devices
Data centric applications
4G networks in North America will increase data traffic 26 fold from 2010 through 2015

6. Wireless Backhaul Market Drivers
Cell Site Growth
Approximately 300,000 sites in the US
Expected to grow to 430,000 by 2015 in the US
Smart Phone Impact
Smart phones account for 15% of the market share today, but they account for 78% of the data traffic
In 2010 over 3 million tablets were connected to the network generating five times as much data as smart phones
Migration towards LTE (Long Term Evolution – 4G)
Speeds increasing from ~3Mbps to Mbps
Bandwidth increasing from ~20MHz to 100MHz

7. Wireless Backhaul 101 Three Main Transport Methods
Carrier Base Station
Mobile Switching Office (provisioning, call routing, etc)
Access Network
Handset, PDA or Laptop
Public Switched Telephone Network
Copper
Fiber
Fixed-Wireless/Microwave
Source: Fibertower Investor Presentation, April 2008.
Three Main Transport Methods
Copper (T1s)
Fiber
Microwave
Copper/Fiber Hybrid Solution
Copper – TDM great for voice, not so great for data
Fiber – Ethernet great for data, allows transition to VOIP

8. Wireless Backhaul Infrastructure Trends
Fiber quickly replacing copper to meet LTE bandwidth requirements
Point-to-point microwave backhauled to fiber to save cost
Ethernet over T1 driving savings, greater data flow and greater reliability

9. Backhaul Transport Comparisons
Capex
Deployment
Speed
Opex/
Mbps
Technical Flexibility
Usage/
Trend
End-User ‘Experience’
Copper
(T1s)
Fiber
Microwave
US ~75%
ROW ~15%
US ~15%
ROW ~25%
US ~10%
ROW ~60%

10. The Dark Side of Backhaul
Revenues may not keep pace with data surges through the wireless network
Cost to deliver a “byte” of data will exceed generated revenue by early 2013
Top two service providers are laying fiber to the majority of their edge midstream networks
Lower tier suppliers may choose NOT to upgrade the backhaul infrastructure
Cost to enter may cause a “wait and see” approach
Risk of increased rate of churn
Small regional/rural service providers may gain access to low interest loans and funding via government broadband initiative

11. Backhaul Technology Comparison
Microwave
Fiber lines
Capacity
· Up to several Gbps
· Unlimited
Regulation
· Requires spectrum · Visual impact considerations
· Requires right of ways and infrastructures; renovation construction works after trenching
Distance influence on costs and deployment time
· Cost per link with some incremental cost with the distance · Fast deployment time
· Costs increase per feet/meter · Deployment time increases linearly with distance
Terrain
· Suitable for any terrain · Requires line-of-sight between two link end-points
· Becomes costly when trenching in difficult terrain (mountains, deserts, swamps, rocky plains or jungles) · Accessibility - requires access for vehicles along the trenching path
Reuse options
· Equipment can be disassembled and relocated somewhere else
· Fiber, in most cases, cannot be relocated · Copper ducts may be reused for fiber lines
Climate
· Influenced by climate · Adaptive modulation and a proper link planning reduces climate effects
· Normally, not influenced, except for floods
Source: Ceragon Networks Ltd. Mobile Backhaul: Fiber vs. Microwave, October 2009.

12. Backhaul Technology Cost Comparison

13. Conclusions
Data has become the dominant mobile transmission vehicle of backhaul topology
Transition to LTE and VOIP will only increase the burden on the backhaul network
Providers that securely manage data in their networks will be financially successful long term
The wireless backhaul network will be defined by:
Speed
$$$ (short and long term)
Terrain
Climate

14. Questions? Paul Misar Contact: Director, OSP Cabinet Solutions
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