ceragon minimizing tco solution brief and white paper

8/17/2019 Ceragon Minimizing TCO Solution Brief and White Paper

1/23

White Paper

Minimizing TCO for HetNet Hauling Author: Tzvika Naveh, Director of Product Marketing

January 2014

Copyright 2014 Ceragon Networks Ltd. www.ceragon.com


2/23


3/23

Ceragon White Paper Minimizing TCO for HetNet Hauling

www.ceragon.com January 2014

Table of Contents

Introduction ....................................................................................................................... 1

Total Cost of Ownership for HetNet Hauling Networks ................................................ 1

Total Cost of Ownership Defined............................................................................ 1

Capital Expenditure Factors .................................................................................... 2

Site Construction (30% of total CAPEX) ........................................................... 3

Equipment (25% of total CAPEX) ..................................................................... 3

Accessories (20% of total CAPEX) .................................................................... 3

Installation (15% of total CAPEX) .................................................................... 4

Antennas (10% of total CAPEX) ....................................................................... 4

Operating Expenditure Factors ............................................................................... 4

Real Estate (30% of total OPEX) ...................................................................... 4

Operations (30% of total OPEX) ...................................................................... 4

Power Consumption (15% of total OPEX) ....................................................... 5

Hardware and Software (15% of total OPEX) .................................................. 5

Manpower (10% of total OPEX)....................................................................... 5

Trends in Mobile Networks and Their Effects on TCO .................................................. 5

Extension of Tail Sites ............................................................................................. 5

Faster Deployment ................................................................................................. 6

Super-Size Macro Sites ........................................................................................... 6

4G/LTE-Advanced ................................................................................................... 7

Network Sharing ..................................................................................................... 7

Future-Proofing ...................................................................................................... 7

Summary ............................................................................................................................ 8

http://www.ceragon.com/http://www.ceragon.com/


4/23


www.ceragon.com Page 1 January 2014

IntroductionThe accelerating demand for mobile data and applications continues to force mobile network

operators (MNOs) to seek technologies, topologies and methods for coping with rapidly escalating

capacity pressure in their networks. Small cells, LTE, fronthaul and other concepts dot the landscape

of mobile networks in their unceasing effort to cope with demand for more capacity.

Simultaneously, MNOs are facing the unenviable market situation where competition, regulation

and OTT applications have cut into their revenue streams. The plethora of new data services that

mobile networks are expected to transport often does not result in enough of a rise in revenues to

cover the investment in the network, a phenomenon known as the capacity crunch.

In order to cope with the capacity crunch, MNOs are deploying new technologies and strategies at

different points in their networks giving rise to the heterogeneous network or HetNet. These new

trends in hauling networks are obscuring the formerly straightforward analysis of TCO factors. The

access/backhaul/backbone paradigm is giving way to myriad new HetNet concepts so that we can no

longer refer generally to the backhaul network , but instead call it the HetNet hauling network . TCO

analysis must now consider longer life-expectancies of a wide variety of increasingly flexible hauling

solutions.

In this paper, we focus on the cost side of the network equation. Specifically, “What are all the cost-

related factors to consider in deploying and operating a wireless HetNet hauling network?”

In an accompanying paper, we show how Ceragon addresses TCO with its FibeAir IP-20 platform of

advanced wireless solutions designed for HetNet hauling networks. (See Wireless FibeAir IP-20

Platform Reduces TCO to a New Minimum.)

Total Cost of Ownership for HetNet Hauling NetworksAlongside network capacity, Total Cost of Ownership (TCO) is the most critical factor facing mobile

network operators as they deploy, modernize and operate their networks. For 30+ years, network

operators have used Total Cost of Ownership (TCO) to determine the full, life-time cost of owning

and operating their networks.

Emerging trends in hauling networks make TCO analysis particularly important to mobile network

operators. Being able to consider the complete picture of TCO in light of recent advancements in

network technology and strategy is critical to profitability and competitiveness.

Total Cost of Ownership DefinedSimply stated, TCO consists of the costs incurred throughout the life cycle of an asset, including

acquisition, deployment, operation, support and retirement. It provides a framework for good

financial analysis of network investments. Not only are the true financial costs properly computed,

but TCO analysis also allows accurate comparisons of similar alternatives. For example, when

assessing the purchase of wireless HetNet hauling solutions across a network, TCO analysis goes

beyond the cost of the equipment and its deployment; it also considers operational costs like power

consumption, space rental and maintenance, rendering an accurate and complete picture of coststhat is useful for planning, budgeting and management.



5/23



Total Cost of Ownership comprises capital expenditures (CAPEX) and operational expenditures

(OPEX). Capital expenditures refer to the acquisition and deployment of equipment in order to

create the network. Operating expenditures are the costs associated with operating the network

once it is deployed. Adding up the CAPEX and the OPEX over the life of the network yields the TCO.

Every network operator accounts for CAPEX and OPEX in a slightly different manner according to

national accounting standards and management preferences. We learn from consulting and research

companies who track such things1 that a typical operator spends 20-35% of total network

expenditure on its hauling network. So, if the entire network expenditure in a given year is a billion

euros, about €300M will be spent on the hauling part of the network.

Regarding CAPEX and OPEX, here are three helpful rules of thumb:

1. CAPEX is generally lower than OPEX. While capital expenditures rise when a new network is

deployed and fall as an old one continues to run without much investment, over time,

CAPEX is considerably lower than OPEX. In fact, studies show that CAPEX constitutes about30% of expenditure for hauling networks while OPEX takes the lion share of 70%.

2. In general, CAPEX unit costs tend to decrease over time. However, since demand for network

capacity is rising rapidly, total CAPEX still tends to increase over time. Until we reach a point

where networks have caught up sufficiently with demand for capacity, this will be the case.

(We don’t look for this to happen anytime soon.)

3. By its nature, OPEX tends to increase over time as a function of numerous factors such as

people costs. This is true not only in HetNet hauling, but in general.

Capital Expenditure FactorsCAPEX is the measure of all the costs associated with acquiring and installing the assets of the

hauling network in order to bring it to an operational state. CAPEX includes equipment like radios,

antennas, switches, cabling, waveguides, towers, shelters, racks, power generators, site

construction, and even the workers and their tools.

When operators expand or modernize their already-functioning networks, they purchase and install

more equipment. These additional expenditures are also CAPEX. Hauling networks are in a constant

state of modernization, so, CAPEX itself is an ongoing cost to the network operator.

Here is a typical breakdown of the factors that constitute CAPEX in the HetNet hauling network:

1 Drawn from reports by Yankee Group, Accenture Research, Tellabs and Strategy Analytics



6/23



Below are the factors that make up CAPEX with some ideas on how to minimize their cost.

Site Construction (30% of total CAPEX)

Wireless solutions provide fast service and low cost. Site construction expenditure can be

reduced significantly by:

1. Reducing the number of sites that have to be deployed2. Minimizing the size of each site, i.e., fewer pieces of equipment

3. Simplifying installation with lighter, easier-to-install equipment

Equipment (25% of total CAPEX)

The cost of equipment is a product of its purchase price and unit quantity. As mentioned under

Site Construction, reducing the number of sites reduces the amount of equipment and hence its

total cost. Higher capacity wireless equipment can reduce per-bit transmission costs. Network

sharing (discussed later) is an attempt by MNOs to reduce the amount of equipment and its cost

per sharer.

MNOs have varying requirements regarding deployment scenarios. Where power is available

and shelters or equipment rooms are not, outdoor solutions are desirable. Where the opposite

is true, indoor solutions hold costs down. Where highly paid personnel are required to climb

towers to install and maintain equipment, moving more of the equipment into an easy-to-access

equipment room is cost-efficient.

When material costs, such as waveguides, are substantial, split-mount solutions, where the radio

equipment is located outside with the antenna while the baseband unit is deployed in the

equipment room, can be the most cost-effective deployment solution.

In all cases—outdoor, indoor and split-mount—low weight and small footprint are contributors

to lower CAPEX.

Highly reliable equipment with long MTBF reduces expense by minimizing replacement and site

visits.

Accessories (20% of total CAPEX)

The installation of hauling equipment requires plenty of accompanying accoutrements like IF

cables, dehydraters, waveguides, grounding lugs, lightning arresters, mounting fixtures, racks,

enclosures, weather-proofing materials and more. Carefully considering the deployment

strategy can decrease the quantity and cost of accessories.



7/23



Installation (15% of total CAPEX)

Installation is a labor-intensive activity. During the rollout of a new network especially, it can

constitute a huge financial outlay. As mentioned above, reducing the number and size of sites

(towers, shelters, equipment rooms) and simplifying procedures can have a considerable effect

on installation costs.

Antennas (10% of total CAPEX)

Smaller antennas cost less than larger ones. Antenna size and weight also influence the size

requirements of towers. Radio signal strength has a great bearing on the size of antennas as high

signal strength can achieve link budget over greater distances enabling the use of fewer, smaller

and lighter antennas.

Operating Expenditure FactorsOPEX are all those costs that the network operator encounters once the network is deployed in

order to operate it. Operating expenditures are the major cost to the operator constituting 70% ofthe total cost of ownership. Since OPEX is ongoing and its unit prices tend to increase over time,

mobile network operators are especially keen on keeping operating expenditures as low as possible

throughout the life of the network.

Here is a typical breakdown of the factors that constitute OPEX in the hauling network:

Real Estate (30% of total OPEX)

For most operators, real estate (site rental) constitutes one of the highest expenditures in the

hauling network. Fewer and smaller sites are the key to keeping this large expenditure

affordable. Rental is usually a function of space, so the smaller the hauling solution, the lower

the ongoing rent. In the equipment room, space, too, is often at a premium and encourages a

similar quest for smaller solutions.

Operations (30% of total OPEX)

Operations is another large component of OPEX and includes many elements. Spectrum-license

fees are a major factor. The licensed bands are in the 6-42GHz range (6-38GHz in North America)

where the lower part is the more desirable (because of reduced signal attenuation) and thus

more expensive. Operators can alleviate license fees in a couple of ways:

1. With better signal strength, they can compensate for some signal attenuation and

can license a higher, less expensive frequency band.

2. With higher spectral efficiency, they can purchase less spectrum.



8/23



Any wireless hauling solution that minimizes site visits contributes greatly to lower operation

outlays. The MTBF of the equipment itself is a significant factor since the longer the equipment

operates without problem in the field, the less attention and expense it demands. The ability to

use an effective network management system effectively to monitor and diagnose problems

with remotely deployed equipment can make the difference between a profitable and

unprofitable network operation.

Power Consumption (15% of total OPEX)

Whether deployed remotely outdoors, or in the nearby equipment room, power consumption

can eat a hole in the OPEX budget. In addition to its own power requirements, wireless hauling

equipment gives off heat and requires cooling, contributing substantially to higher expenditures.

Think of the difference between a voracious, heat-producing and electricity-consuming radio

and one whose power consumption and cooling requirements are so low that it can run on local

solar power. In fact, in some cases, the overriding deployment-site selection criterion is a

function of power availability and expense.

Hardware and Software (15% of total OPEX)

Over time, MNOs upgrade elements of already-deployed hardware and software, e.g., new

releases of operating systems and applications, and hardware-part upgrades. Sometimes,

software upgrades can be applied remotely, so they are preferable to hardware upgrades that

require site visits. Modular hardware with swappable cards is preferable to wholesale

replacement.

Manpower (10% of total OPEX)

Manpower efficiency can be significantly enhanced by hauling specialists who partner with

MNOs to produce the most effective network configurations and deployment plans. Planning

and project tracking applications are also great assistants in the quest for cost-effective hauling

networks.

Trends in Mobile Networks and Their Effects on TCOIn order to provide significantly increased capacity in a time of revenue limitations, MNOs turn to

new technologies to make their networks more efficient. But unlike in the past when MNOs

undertook blanket upgrades of their radio access technology, e.g., 2G/GSM to 3G/UMTS, the new

technologies are a varied menu of mix-and-match capabilities to be deployed in different scenarioswherever they make sense in terms of cost-efficient capacity improvement. New 4G network

segments will co-exist with already-existing 3G networks for years to come. And many of the trends

mentioned immediately below will be undertaken simultaneously by MNOs.

Extension of Tail SitesThe main trend in HetNet hauling networks is the extension of tail sites to be closer to subscribers. In

the past, a macro basestation constituted the tail site as it served a large geographic area with

coverage and capacity on standby for all. New technologies allow MNOs to economically focus parts

of their networks on smaller, concentrated populations of subscribers providing on-demand capacity

exactly where and when it is needed. Two extend tail sites, MNOs employ two technologies: small

cells and fronthaul.



9/23



Small cells focus coverage and capacity where people congregate, like busy urban streets or a

stadium during sporting events. In fronthaul scenarios, low-cost remote radio heads are distributed

throughout an area and are hauled to a very large macro basestation that can be deployed

economically concentrated in a remote location or in the Cloud (C-RAN).

The HetNet including small-cell and fronthaul deployment scenarios

Backhauling small cells can be economically applied for short distances over non- or lightly-licensed

V/E bands in order to minimize licensing costs. Low-cost, compact wireless equipment is effective for

backhauling small cells in point-to-point and point-to-multipoint topologies.

Fronthaul deployments require very low latency and thus are usually undertaken over fiber where it

is available, mainly in urban settings. Recently, however, less expensive wireless solutions have

achieved the capacity and latency requirements of fronthaul deployments and are starting to be

used to enable economic fronthaul deployments that eliminate the high cost of fiber installation.

The latest wireless hauling solutions enable CPRI-over-wireless reducing CAPEX considerably over

the fiber alternative. Like small-cell backhaul, fronthaul deployments can cut costs further by using

lightly-licensed E-band.

Faster DeploymentThe trend of extending tail sites to closer proximity with subscribers necessitates a high level of

flexibility to meet location-specific capacity demand. Rapid deployment that minimizes service

interruption speeds time to revenue. Mobile operators must consider deployment time in their

analysis as this can have significant ramifications on network profitability, not to mention subscriber

satisfaction.

Super-Size Macro Sites

As small cells proliferate, their backhaul requirements necessitate significant increases in macro sitecapacity. The same is true for fronthaul deployments where numerous remote radio units are



10/23



aggregated at macro sites. What was once a macro site serving subscribers via the access network is

now a super-size macro site that continues to do all that while also aggregating the traffic to and

from a growing population of small cells and/or remote radio heads. As a result, super-size macro

sites carry 3-20 times more capacity than their pre-small cell and pre-fronthaul predecessors. Cost-

effective solutions suddenly need to scale up to achieve the new capacities. The most advanced

wireless solutions are now able to scale up to gigabits-per-second of transport capacity and thus

present a cost-lowering alternative to the high expenditure associated with deploying fiber.

4G/LTE-Advanced4G/LTE-A networks are being deployed for a variety of reasons including better usage of available

spectrum, faster data rates, reduced latency, simpler network architecture, and lower per-bit

transport costs. However, the wholesale upgrade of mobile networks from 3G to 4G is prohibitively

expensive for most MNOs. Operators undertake a careful TCO analysis to decide where, when and

how to implement LTE-A in order to continue to provide current 3G subscriber services while taking

advantage of the benefits of 4G without breaking the bank. In all cases, 4G networks will encouragedemand for capacity and thus will require more cost-effective hauling capacity than ever before.

Network SharingOrthogonal to HetNets is a concept that is becoming the de facto network strategy in many markets:

coopetition (cooperation with competitors). For MNOs, this takes the form of network sharing.

Network sharing enables operators to share the expenses of hauling network deployment and

operation. The goal is for two or more MNOs to boost capacity in tandem in order to realize the

benefits of increased capacity while sharing the costs. It is an economy-of-scale approach. (See

http://www.ceragon.com/component/k2/item/854 for a discussion on Network Sharing.)

Future-ProofingA consideration that is often overlooked in TCO analysis for HetNet hauling is the effect of future-

proofing. While financial people need to take a snapshot or even a moving picture over equipment

life-cycles, recent advancements in hauling necessitate even a longer-term view. Concepts such as

Software-Defined Networks (SDN) extend the time vista of TCO analysis.

The flexibility of some of the latest technological advancements give wireless solutions the ability to

adjust to changing network conditions. Before the advent of such solutions, the then-current level of

technological and operational flexibility was able to extend usability horizons to a certain degreebefore equipment had to be retired to give way to lower-cost, higher-value substitutes. Today, the

situation is quite different. The hardware and software flexibility of wireless HetNet hauling

solutions enables them to maintain their cost-effective operation even while network requirements

are changing. This is a new development in HetNet hauling with far-reaching consequences for TCO.

The role of SDN in hauling networks is gaining significant attention as traffic growth increases the

cost and complexity of network operations. Evolving market dynamics are forcing operators to adapt

to new and more challenging service requirements in order to stay competitive. The operational

complexity and costs associated with high-volume data growth coupled with increasingly volatile

and unpredictable traffic patterns have a direct impact on a hauling network’s TCO.

http://www.ceragon.com/http://www.ceragon.com/component/k2/item/854http://www.ceragon.com/component/k2/item/854http://www.ceragon.com/component/k2/item/854http://www.ceragon.com/


11/23



Simply providing more capacity between pressure points in the wireless infrastructure is no longer

adequate. Those pressure points can vary much more rapidly than ever before with significant

fluctuation in demand between any given points in the network at any time. This operational

complexity slows down provisioning times and increases operational costs.

Software-Defined Networking promises to increase efficiency, flexibility and scalability in a world of

unpredictable traffic patterns. It allows network operators to adjust traffic flow dynamically to meet

changing needs. SDN provides the framework for simplified service management as well as multi-

vendor interoperability.

The predicted effect of SDN on TCO is enormous. In the pre-SDN days, new applications would

necessitate the upgrade of wireless hauling equipment and trigger a new cycle of large-scale CAPEX.

SDN enables the ongoing integration of these new applications with the current equipment. The

network operator incurs the cost of software development, distribution and maintenance while

avoiding the high cost of new equipment. This trade-off from high CAPEX to lower OPEX results in

significant reductions to TCO.

SummaryMobile network operators measure the cost of their networks in terms of CAPEX and OPEX, the two

components of Total Cost of Ownership. The escalating pressure for more mobile data and

applications makes capacity the most significant factor in deciding on HetNet hauling network

deployment and operation strategies. Careful consideration of the long-term implications of HetNet

hauling solutions with a long-term focus on TCO can make the difference between a profitable,

successful network and a dismal failure.

There are many factors that make up CAPEX and OPEX. There are also new technologies that extend

the traditional TCO analysis by adding a significant level of future-proofing to the equation. By

carefully considering all of these factors together, network operators can deploy the most cost-

effective HetNet hauling networks now that will serve them at a low Total Cost of Ownership well

into the future.

About CeragonCeragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless hauling specialist. We provide innovative,

flexible and cost-effective wireless backhaul and fronthaul solutions that enable mobile operators and

other wired/wireless service providers to deliver 2G/3G, 4G/LTE and other broadband services to their

subscribers. Ceragon's high-capacity, solutions use microwave technology to transfer voice and data traffic

while maximizing bandwidth efficiency, to deliver more capacity over longer distances under any

deployment scenario. Based on our extensive global experience, Ceragon delivers turnkey solutions that

support service provider profitability at every stage of the network lifecycle enabling faster time to

revenue, cost-effective operation and simple migration to all-IP networks. As the demand for data pushes

the need for ever-increasing capacity, Ceragon is committed to serve the market with unmatched

technology and innovation, ensuring effective solutions for the evolving needs of the marketplace. Our

solutions are deployed by more than 430 service providers in over 130 countries.



12/23

SOLUTION BRIEF | FibeAir IP-20 Platform Reduces TCO to a New Minimum 1

SOLUTION BRIEF

FibeAir IP-20 Platform Reduces TCO to a NewMinimum

AbstractCeragon’s FibeAir IP-20 platform boosts HetNet hauling capacity while bringing Total Cost of

Ownership to its lowest level ever. This paper describes the many ways that FibeAir IP-20 reduces

hauling costs throughout the heterogeneous network.

IntroductionIn order to cope with the escalating demand for capacity, Mobile Network Operators (MNOs) are

implementing new technologies and strategies at different points in their networks creating, ineffect, heterogeneous networks or HetNets. The traditional access/backhaul/backbone hierarchy is

rapidly retreating before the rush of new HetNet concepts and supporting technologies. We can no

longer refer generally to the backhaul network, but, instead, call it the HetNet hauling network

since it includes fronthaul and other new strategies.

Ceragon Networks’ FibeAir IP-20 platform includes wireless hauling solutions for all HetNet hauling

requirements in any mobile network. It is designed to boost capacity while reducing the cost per

transmitted bit to its lowest point ever. Including its many future-proof technologies, FibeAir IP-20

constitutes the lowest Total Cost of Ownership (TCO) solution in the industry.

Total Cost of Ownership

A complete discussion of HetNet hauling TCO can be found in Ceragon’s White Paper, MinimizingTCO for HetNet Hauling. In this section, we summarize.

Along with network capacity, Total Cost of Ownership is the most critical factor facing mobile

network operators as they deploy, modernize and operate their networks. For 30+ years, network

operators have used TCO to determine the full, life-time cost of owning and operating their

networks.

Simply stated, TCO consists of the costs incurred throughout the life cycle of an asset, including

acquisition, deployment, operation, support and retirement. TCO’s two constituents are capital

expenditure (CAPEX) and operating expenditure (OPEX). CAPEX refers to the acquisition and

deployment of equipment in order to create the network. OPEX are the costs associated with

operating the network once it is deployed. Adding up the CAPEX and the OPEX over the life of thenetwork yields the TCO.

CAPEX is generally lower than OPEX. When a new network is deployed,

CAPEX can suddenly increase for a while, but over time, CAPEX is

considerably lower than OPEX. In fact, studies show that CAPEX

constitutes about 30% of expenditure for hauling networks while OPEX

takes the lion share of 70%.

In general, CAPEX unit costs tend to decrease over time. However, since demand for network

capacity continues to rise rapidly, total CAPEX still tends to increase over time. OPEX unit costs, on

the other hand, always tend to increase over time as a function of numerous factors such as people

costs. This is true not only in HetNet hauling, but in general.


13/23


SOLUTION BRIEF

When MNOs make network deployment decisions, purchase price comparisons between

competing solutions are only part of the picture. Since, over the lifetime of the network, MNOs will

spend much more in OPEX than CAPEX, they need to go beyond acquisition and carefully consider

the costs of operating the equipment over many years. Hauling solutions like the FibeAir IP-20

platform solve HetNet hauling bottlenecks at a lower cost level than competing solutions and are

thus much less expensive to own and operate over the lifetime of the network. In addition, as we

will show, FibeAir IP-20’s built-in versatility and future-proofing capabilities delay or eliminate

expenditures and extend the lifetime of cost-effective operations even as network requirements

change.

FibeAir IP-20’s Capabilities that Reduce TCOFibeAir IP-20 is a service-centric wireless platform for HetNet hauling. The platform includes a full

complement of wireless products that provide innovative, market-leading backhaul and fronthaul

solutions for all HetNet hauling challenges. The products are listed in the appendix and details can

be found at www.ceragon.com.

Powered by a software-defined engine and sharing a common operating system, CeraOS, the IP-20

platform delivers ultra-high capacities while supporting any radio transmission technology, any

network topology and any deployment configuration.

OPEX Considerations

Operating expenditures constitute 70% of total TCO for many mobile network operators. FibeAir IP-

20 reduces OPEX in many ways.

Power Consumption

Running on electricity, hauling equipment requires 24x7 energy sources in order to provide reliable

operation around the clock. Transmitting over long distances, wireless links are often called upon to

provide transmission in difficult, remote terrain where power generation is, at best, challenging. In

some cases, the availability of power is the overriding deployment-site selection criterion. Where

accessible power sources are not available, MNOs must provide solar or diesel power generation

alongside the transmission equipment. Obviously, low power-consuming solutions are an important

factor in network design and operations.

In addition to its own power consumption requirements, wireless hauling equipment gives off heat

and can require significant cooling resources, contributing substantially to higher expenditures.

FibeAir IP-20 products are miserly when it comes to power consumption and heat dissipation. In

fact, they consume less energy per transmitted-bit than any other wireless solution.

FibeAir IP-20 can operate automatically in green mode where power consumption is a function of

transmitted (Tx) power. Electricity consumption decreases in accordance with lower transmission

requirements and only increases when the IP-20 is called upon to transmit at high capacity.

http://www.ceragon.com/http://www.ceragon.com/http://www.ceragon.com/http://www.ceragon.com/


14/23


SOLUTION BRIEF

Several of the IP-20 high-capacity solutions are designed for compact, all-outdoor deploymentwhere they do not require cooling at all. In many cases, they can function on the inexpensive power

generated by solar systems or by minimal diesel generators.

For indoor deployment where heat dissipation is a factor in equipment cooling, IP-20 solutions

include a patented technology called dynamic biasing where the amplifier’s power supply

dynamically varies according to the RF signal level so that minimal power is wasted on heat. In fact,

dynamic biasing cuts some 15W of dissipated heat power translating into considerable savings on

cooling requirements.

FibeAir IP-20 addresses cooling requirements in still another way. Its unique split-mount, long-haul

trunk solution allows the radio unit to be deployed outside near the antenna, while the baseband

unit is deployed indoors. This cuts down on indoor heating management requirements and savesfurther on power consumption.

Below is a practical comparison of costs between a typical long-haul, all-indoor solution and the

equivalent FibeAir IP-20 all-indoor and split-mount solutions.

Typical

All-Indoor

FibeAir IP-20

All-Indoor

FibeAir IP-20

Split-Mount

Power consumption 800W 560W440W outdoor part

120W indoor part

Diesel electricity savings 240W 240W

HVAC power consumption 272W 190W 41W

HVAC electricity savings 82W 231WTotal savings per radio link 322W (30%) 471W (44%)


15/23


SOLUTION BRIEF

Real EstateFor most operators, real estate for sites constitutes one of the highest expenditures in the hauling

network. In general, the fewer the sites, the better. Rental fees are usually a function of space, so

the smaller the hauling solution, the lower the ongoing rental fees. In the equipment room, space,

too, is often at a premium and necessitates a similar quest for smaller solutions.

FibeAir IP-20 reduces space requirements and saves considerable OPEX in many ways:

Compact all-outdoor solutions require no indoor space and put little weight on towers

Ceragon’s weather-proof outdoor enclosures eliminate outdoor sheltering requirements

FibeAir IP-20’s unique split-mount trunk solution allows network operators to move the

radio unit outdoors by the antenna minimizing indoor rack space

The higher system gain (signal strength) of IP-20’s radios offers the same link availability withsmaller antennas than other solutions produce with larger antennas. Smaller antennas reduce rent

outlay for tower space.

In addition, smaller antennas put less load on towers (weight, space, wind) enabling simpler and

less expensive installation, and providing savings on annual antenna lease fees. MNO’s can save

€700-€1,200 per link per year.

FibeAir IP-20 addresses indoor as well as outdoor space requirements in another way—with the

highest carrier density in the industry—further lowering OPEX for real estate and site rental.

Minimizing Site Visits

HetNet hauling networks are dynamic. As traffic patterns change and technologies improve, hauling

equipment often needs to be adjusted, upgraded or swapped out. Technicians often have to be

sent into the field to make the necessary changes, link-by-link. Each and every site visit is a drain onthe OPEX budget and a scheduling headache, so MNOs tend to defer such field activities.


16/23


SOLUTION BRIEF

FibeAir IP-20 makes an enormous contribution to the ongoing efficiency-of-operation of already-

installed equipment. Ceragon’s breakthrough multi-core radio technology is embodied in the

FibeAir IP-20C. Its unique multi-core architecture is based on an advanced, parallel radio-processing

engine built around Ceragon’s in-house baseband modem and RFIC chipsets. The result is superior

radio performance with reduced power consumption and form-factor. Furthermore, the versatile

IP-20C can be deployed either as an all-outdoor node or as a multi-core radio unit in a split-mount

multi-carrier configuration with another IP-20 platform indoor node.

FibeAir IP-20C is future-proof, ready for upgrade from 1+0 to 2+0. Activating the second transceiver

is accomplished remotely without a site visit.

Below, we compare the traditional method for upgrading a link from 1+0 to 2+0 to double the

capacity with the FibeAir IP-20C method:

Tradit ional Upgrade Method FibeAir IP-20C Upgrade Metho d

Buy additional radio link Buy software license upgrade to 2+0

Send technician(s) to the site Activate the 2nd

carrier remotely

Wait for maintenance window

Network downtime for maintenance

Climb tower, install new radio

Repeat for second site of link

The differences in expenses, interruption of service and accuracy are staggering.

Superior Spectral Efficiency

Spectral efficiency is the capacity (information rate) that can be transmitted over a given channelbandwidth. It is a measure of how efficiently a frequency band is utilized.

FibeAir IP-20 solutions feature the industry’s best spectral efficiency. In fact, IP -20 has been shown

to require half the bandwidth of competing equipment. The superior spectral efficiency has two

major effects on OPEX:

1. Network operators can pay for less spectrum (for example, a single channel instead of a

double channel) to achieve the required transmission rates.

2. In licensed bands, operators can transmit over a higher and often less expensive band

still meeting their throughput requirements.


17/23


SOLUTION BRIEF

FibeAir IP-20C brings breakthrough spectral efficiency technology to mobile network operators. Its

unique 4x4 LoS MIMO technology allows MNOs to quadruple capacity over the same channel.1

FibeAir IP-20 also provides numerous other spectral efficiency-boosting capabilities.2

Network Sharing

In order to cope with the capacity crunch, otherwise competing MNOs are increasingly looking to

each other to share hauling-network infrastructure so as to achieve certain economies-of-scale. The

goal is for two or more MNOs to boost capacity in tandem in order to realize the benefits ofincreased capacity while sharing the costs of hauling network deployment and operations.

1 For a discussion of 4x4 LoS MIMO technology, see: http://www.ceragon.com/about-

us/media-center/articles/item/288-boosting-microwave-spectral-efficiency-and-capacity-

with-line-of-sight-mimo-technology

2 The entire IP-20 capacity story can be downloaded in our White Paper The Ceragon Capacity

Story found at: http://www.ceragon.com/home/ceragon-capacity-story

http://www.ceragon.com/about-us/media-center/articles/item/288-boosting-microwave-spectral-efficiency-and-capacity-with-line-of-sight-mimo-technologyhttp://www.ceragon.com/about-us/media-center/articles/item/288-boosting-microwave-spectral-efficiency-and-capacity-with-line-of-sight-mimo-technologyhttp://www.ceragon.com/about-us/media-center/articles/item/288-boosting-microwave-spectral-efficiency-and-capacity-with-line-of-sight-mimo-technologyhttp://www.ceragon.com/home/ceragon-capacity-storyhttp://www.ceragon.com/home/ceragon-capacity-storyhttp://www.ceragon.com/about-us/media-center/articles/item/288-boosting-microwave-spectral-efficiency-and-capacity-with-line-of-sight-mimo-technologyhttp://www.ceragon.com/about-us/media-center/articles/item/288-boosting-microwave-spectral-efficiency-and-capacity-with-line-of-sight-mimo-technologyhttp://www.ceragon.com/about-us/media-center/articles/item/288-boosting-microwave-spectral-efficiency-and-capacity-with-line-of-sight-mimo-technology


18/23


SOLUTION BRIEF

In order for network sharing schemes to work fairly, each participating MNO must be assured of its

portion of the network. FibeAir IP-20 platform introduces a new level of quality-of-service that is

instrumental in upholding fair and enforceable wireless hauling-network sharing arrangements.

IP-20’s Hierarchical Quality of Service (H-QoS) mechanism provides the necessary granularity of

service to allow each network sharer to specify the allocation of the shared hauling network per

service.

Detailed information on H-QoS can be found in our White Paper on Network Sharing here:

http://www.ceragon.com/component/k2/item/854 .

http://www.ceragon.com/component/k2/item/854http://www.ceragon.com/component/k2/item/854


19/23


SOLUTION BRIEF

CAPEX ConsiderationsWhile capital expenditures tend to be lower than operating expenditures, they are still considerable

and deserve careful attention. In a typical mobile hauling network, annual CAPEX can easily exceed

€100M and, when new roll-outs like LTE-A are considered, they can easily soar past €1B for large

operators.

The FibeAir IP-20 platform lowers CAPEX immediately and well into the future. Here’s how.

Wireless Multi-Technology Aggregation Node

The FibeAir IP-20 is a single platform serving all radio technologies. Offering a solution for every

sort of hauling application in the HetNet, the FibeAir IP-20 platform offers MNOs a series of

technologically advanced and unified solutions with numerous advantages that reduce TCO to its

lowest point ever.

Highest Wireless Capacity

Demand for hauling capacity still far outstrips supply. Smartphones and other bandwidth-

consuming mobile devices continue to flourish. The inevitable roll-out of LTE-A will, on one hand,

provide MNOs with new tools and capabilities to cope with capacity demand, while, on the other,

will further encourage subscribers to use their smartphones for even more bandwidth-intensive

applications.

As a result, the first order of business for MNOs is to look to cost-effective wireless solutions to

provide highly scalable levels of capacity to enable them to be deployed in more pressure points in

the HetNet. FibeAir IP-20 platform is designed for superior capacity and is able to service larger

sites more cost-effectively than ever before.

As small cells proliferate, their backhaul requirements necessitate significant increases in macro

site capacity. What was once a macro site serving subscribers via the access network is now a

super-size macro site that continues to do all that while also aggregating the traffic to and from a

growing population of small cells. As a result, super-size macro sites carry 3-20 times more capacity

than their predecessors.

FibeAir IP-20’s ability to scale up to gigabits-per-second of transport capacity addresses all the

growing requirements for capacity while delivering the necessary economies of scale.

Superior Signal Strength

All FibeAir IP-20s make use of Ceragon’s industry-leading radio technology. The superior signalstrength of Ceragon radios allows MNOs to deploy longer-distance links. MNOs can reduce the total

number of links and can consider additional deployment sites sometimes bypassing difficult-to-

access locations.

Protecting Investment

All FibeAir IP-20 solutions are built with long-term high performance in mind. As such they protect

the CAPEX investment farther into the future than ever before.

CeraOS

All FibeAir IP-20 solutions run under the auspice of the CeraOS operating system. CeraOS

creates a unified, simple-to-operate-and-manage approach for building, expanding andmaintaining wireless backhaul and fronthaul networks. An intrinsic part of the FibeAir IP-20


20/23


SOLUTION BRIEF

platform, it provides a complete set of service-centric features and performance-boosting

capabilities across all IP-20 products.

CeraOS cost-effectively manages resources by controlling and unifying complex, distributed

network intelligence. It is the unifying thread that connects otherwise disparate network

elements and provides a scalable migration path as needs evolve. It provides software

intelligence for adding new services, features and applications.

Among the many functions of CeraOS are:

End-to-end service provisioning and monitoring

QoS consistency

Synchronization distribution

Capacity-boosting techniques

Common OA&M user interface

The same CeraOS runs on all IP-20s and provides a new economy-of-scale in network

operations. Feature upgrades to CeraOS become available to all IP-20 solutions in the

HetNet. Upgrades propagate to all IP-20s in the same way making the new functions

available throughout the network immediately.

The common, unifying operating system approach reduces operations complexity by

providing a common interface regardless of hauling application or deployment scenario. It

lowers TCO significantly.

Software-Defined Engine

FibeAir IP-20 is fully aligned with the Software-Defined Network (SDN) concept. The SDN-

ready FibeAir IP-20 platform moves more of its functions away from embedded hardware

into the realm of more flexible software.

Within the hardware of each IP-20 product are programmable network controllers that can

modify functions based on software upgrades and modifications. As such, FibeAir IP-20 is

more flexible and has a longer life-span than any other wireless hauling solution.

FibeAir IP-20’s software-driven flexibility reduces TCO over the long run.

Integrated Ethernet Switch

FibeAir IP-20 solutions include integrated networking capabilities with internal Ethernet

switches. Network operators can avoid CAPEX spending on external switches and routers,

and save on space for external switches and shelters. IP-20 includes intelligent network

functions and MEF Carrier Ethernet 2.0 compliancy for easier network integration.

Multi-Core Radio Technology

Mentioned earlier under OPEX, Ceragon’s unique multi-core radio technology has an

important part to play in the reduction of CAPEX as well. Earlier, we explained how multi-

core radio technology eliminates site visits to double capacity. Here, we expand the story

from a CAPEX perspective.


21/23


SOLUTION BRIEF

1. MNOs can purchase FibeAir IP-20C solutions with multi-core technology within.

They purchase only the use of a single core and are not liable for the capital

expenditure of the second core, unless/until they need it.

2. Deploying the IP-20C in chain sites (East/West configurations), MNOs do not

need to purchase an external switch, a shelter, or a second radio as all these are

available in one IP-20C.

3. IP-20C’s higher system gain (signal strength) offers the same link availability

with a smaller antenna. Smaller antennas cost less as do the smaller towers thatthey sit on. Furthermore, they cause less visual impact.

4. FibeAir IP-20C reduces antenna costs in still another way. Via the IP-20 Radio

Adapter, It is able to use already-installed antennas. MNOs can take advantage

of this high performance solution without incurring the expense of new

antennas and of aligning them. This feature also simplifies and speeds up

installations.


22/23


SOLUTION BRIEF

5. In addition to doubling capacity, IP-20C’s second core can also be used to boost

signal, reduce antenna sizes or double the link distance, ensuring long-term,cost-efficient operation as needs change. Its performance versatility is

unparalleled.

SummaryCeragon Networks, the #1 wireless hauling specialist, maintains industry leadership with its FibeAir

IP-20 platform of HetNet hauling solutions driving TCO to a new low. The unifying FibeAir IP-20

platform addresses all parts of the HetNet, significantly reducing CAPEX and OPEX, and delivering a

new level of software-driven flexibility that extends the life of cost-effective operation.

As Mobile Network Operators continue to seek out technologies that boost network capacity and

lower the cost per transmitted bit, FibeAir IP-20 provides both simultaneously.

About Ceragon

Ceragon Networks Ltd. (NASDAQ: CRNT) is the #1 wireless hauling specialist. We provide innovative,

flexible and cost-effective wireless backhaul and fronthaul solutions that enable mobile operators and

other wired/wireless service providers to deliver 2G/3G, 4G/LTE and other broadband services to their

subscribers. Ceragon's high-capacity, solutions use microwave technology to transfer voice and data

traffic while maximizing bandwidth efficiency, to deliver more capacity over longer distances under any

deployment scenario. Based on our extensive global experience, Ceragon delivers turnkey solutions that

support service provider profitability at every stage of the network lifecycle enabling faster time torevenue, cost-effective operation and simple migration to all-IP networks. As the demand for data

pushes the need for ever-increasing capacity, Ceragon is committed to serve the market with unmatched

technology and innovation, ensuring effective solutions for the evolving needs of the marketplace. Our

solutions are deployed by more than 430 service providers in over 130 countries.


23/23

ceragon minimizing tco solution brief and white paper

Documents