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Site costs – Light Infrastructure Benefits
AntennasSeparate → Integrated
Active ElementsMany → Few
Civil WorksTower → Pole/Stand
Real EstateTraditional → Innovative
CablingAnalog Coax → Digital
Installation ToolsHeavy Equip. → Hand Tools
CoolingA/C → Convection/Fans
Infrastructure HousingTemp Control Building → All Outdoor
PowerK-amps → amps
Capex Cost Difference
•Traditional Cellular Infrastructure
•(Range: $80k-190k) •Light Infrastructure•(Range: $30k-120k)
•Blended avg: ~$96K •Blended avg: ~$44K
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Flat IP Architecture
- Now on IP Cost and performance curves
- Reduced Capex, backhaul and Opex costs.
By reduced network complexity.
Majority off the shelf equipment
TRADITIONAL CELLULAR ARCHITECTURE
Internet PSTN
MSSSGSN
Base StationControllers
GGSN Media Gateway
Base Stations
CARRIER ACCESS POINT (CAP) ARCHITECTURE
Internet PSTN
Access Points
CAPController
VoIPGateway
or IMSData Gatewayor IMS
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• WiMAX Chipset costs– Design simplicity: Full-duplex TDD streamlines RF design
– Leverage with 802.11a/b/g makes multi-mode cheaper
– 2.5Ghz and 3.5Ghz world-wide spectrum allocations drive economies of scale
• Global ecosystem
Technology cost comparison
Estimate Chipset cost evolution
00.20.40.60.8
11.21.41.61.8
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2005 2006 2007 2008 2009 2010 2011
HSDPA
UMTS
LTE chipset MM device
DO-Rev0
CDMA 1X
GSM
WiFI chipset for MM
DO-RevA
WiMAX voice centric WiMAX MM centric
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WiMAX Business Model
Link Estimation Tool Capacity Simulator
Coverage Analysis Capacity Analysis
Model Input Sheet
Model Result Sheet
Integrated with Model
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Model Inputs and Results
- 10 Year Financial Pro-forma- Estimate TCO and ROI- Capacity is estimated using the pseudo simulator for each year- Includes wireless/wireline backhaul
Model Input Sheet
Model Result Sheet
Inputs Include:
• Frequency band, Channel BW
• Network Type – Fixed, Mobile, Mixed
• Coverage rollout, Design details (Demographics, Antenna Ht etc, Duty Cycle ..)
• Services Offered, Traffic profile and demand
• ARPU, Handset Costs/Subsidies
• Churn Rates, subscriber rollout
• Backhaul details, Existing network synergies
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Operator Business Modeling Methodology & Results
• Applied varied penetration rates, densities, and traffic mixes to mobile and fixed/nomadic models
• Applied most efficient product to carrier business model – Over 60 business models generated
• Summarize results and apply to market segments– Close business cases based on:
• Solving for ARPU vs.. Number of Subscribers
• Product Cost averages 5% to 10% of TCO minimal impact to business case– Big hitters: Site specific costs in backhaul, site acquisition, site rental, and site utilities
• Site Costs: 15% to 30% of TCO
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Summary Carrier Business Model Results
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TCO Comparison
0.00
50.00
100.00
150.00
200.00
250.00
0.40 0.66 1.00 1.33 1.99 3.98 7.97 12.07
Data Usage Per Sub Per Month (GB)
TCO
in $
MN WiMAX - Costs
CDMA - Costs
UMTS - Costs
Mobile Technology Comparisons: TCO based on Data Usage per User
CapacityExpansion Risk
Note: Per subscriber data usage (1 busy hour, 7 non-busy hours per day) based on 15k subscribers in 100 km^2 EVDO-A based on 2.5 GHz with 7 carriers; cell edge rates DL 1 Mbps,UL 256 kbps WiMAX based on 2.5 GHz at 10 MHz channel BW; cell edge rates DL 1 Mbps,UL 256 kbps Backhaul costs assumed operator uses lowest cost solution (owned wireless)
2 GB per Person per Month
TCO tipping point toward WiMax
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Sites Comparison
0
50
100
150
200
250
300
350
400
450
0.40 0.66 1.00 1.33 1.99 3.98 7.97 12.07
Data Per Sub Per Month (GB)
# of
Site
s WiMAX - Sites
CDMA - Sites
UMTS - Sites
Mobile Technology Comparisons: TCO based on Data Usage per User
CapacityExpansion Risk
Note: Per subscriber data usage (1 busy hour, 7 non-busy hours per day) based on 15k subscribers in 100 km^2 EVDO-A based on 2.5 GHz with 7 carriers; cell edge rates DL 1 Mbps,UL 256 kbps WiMAX based on 2.5 GHz at 10 MHz channel BW; cell edge rates DL 1 Mbps,UL 256 kbps Backhaul costs assumed operator uses lowest cost solution (owned wireless)
2 GB per Person per Month
TCO tipping point toward WiMax
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Broadband Capacity Comparison (SIMO)
SIMO (1x2)
DL STBC (Alamouti)
DL Open Loop MIMO (2x2)
DL EBF (4x2)
Specturm Occupancy 1.25 MHz (FDD) 5 MHz (FDD)
#sub-carriers 1.2288 Mcps 3.84 Mcps
DL Sector Throughput (Kbps)Web Browsing with HTTP Traffic 570 2300 3967 3967 4317 7042
DL Sector Throughput (Kbps)Full Buffer Traffic 640 3200 7700 7700 8517 10508
UL Sector Throughput (Kbps)Full Buffer Traffic 500 1100 1125 1125 1125 1125
DL User Packet Call Throughput (Web Browsing with TCP/IP) 85 85 152 152 150 162
DL User Packet Call Throughput (Full Buffer) 140 340 570 570 650 760
DL Voice Capacity (Erlangs) 35 120 150 200 200 >300
UL Voice Capacity (Erlangs) 30 80 120 120 120 120DL sector SE Web Browsing
(bps/Hz/sector) 0.40 0.46 0.54 0.54 0.59 1.02DL sector SE Full Buffer
(bps/Hz/sector) 0.45 0.64 1.06 1.06 1.17 1.53UL sector SE Full Buffer
(bps/Hz/sector) 0.35 0.22 0.45 0.45 0.45 0.42VoIP site SE (E/MHz/Site) 31.5 24.0 36.0 36.0 36.0 36.0DL site SE Web Browsing
(bps/Hz/site) 1.20 1.38 1.63 1.63 1.78 3.07DL site SE Full Buffer (bps/Hz/site) 1.34 1.92 3.17 3.17 3.50 4.59ULsite SE Full Buffer (bps/Hz/site) 1.05 0.66 1.35 1.35 1.35 1.25
1024
10 MHz TDD
Features HRPD-A WCDMA- Rel 5/Rel6
802.16e (1X3x1)
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WiMAX System Simulation Results: SummaryAll MS are @ 30 Kmph
SIMO (1x2)
DL STBC (Alamouti)
DL Open Loop MIMO (2x2)
DL EBF (4x2)
SIMO (1x2)
DL STBC (Alamouti)
DL Open Loop MIMO (2x2)
DL EBF (4x2)
SIMO (1x2)
DL STBC (Alamouti)
DL Open Loop MIMO (2x2)
DL EBF (4x2)
Specturm Occupancy
#sub-carriers
Number of DL data symbols 28 28 28 26 30 30 30 28 30 30 30 28
Number of UL data symbols 9 9 9 9 9 9 9 9 9 9 9 9
DL overhead symbols(Preamble+MAP) 7 7 7 7 5 5 5 5 5 5 5 5
UL overhead symbols(Ranging+ACK+CQICH+sounding) 3 3 3 4 3 3 3 4 3 3 3 4
DL Sector Throughput (Kbps)Web Browsing with HTTP Traffic 3967 3967 4317 7042 9000 9000 10393 13200 5786 5786 6321 9100
DL Sector Throughput (Kbps)Full Buffer Traffic 7700 7700 8517 10508 13393 13393 19821 16000 10982 10982 13929 13500
UL Sector Throughput (Kbps)Full Buffer Traffic 1125 1125 1125 1125 2175 2175 2175 2175 1650 1650 1650 1650
DL User Packet Call Throughput (Web Browsing with TCP/IP) 152 152 150 162 175 175 175 157 152 152 160 140
DL User Packet Call Throughput (Full Buffer) 570 570 650 760 500 500 750 750 450 450 600 540
DL sector SE Web Browsing (bps/Hz/sector) 0.54 0.54 0.59 1.02 0.41 0.41 0.48 0.64 0.40 0.40 0.43 0.66
DL sector SE Full Buffer (bps/Hz/sector) 1.06 1.06 1.17 1.53 0.61 0.61 0.91 0.78 0.75 0.75 0.96 0.98
UL sector SE Full Buffer (bps/Hz/sector) 0.45 0.45 0.45 0.42 0.29 0.29 0.29 0.27 0.33 0.33 0.33 0.30
DL site SE Web Browsing (bps/Hz/site) 1.63 1.63 1.78 3.07 1.23 1.23 1.43 1.92 1.59 1.59 1.73 2.65
DL site SE Full Buffer (bps/Hz/site) 3.17 3.17 3.50 4.59 1.84 1.84 2.72 2.33 3.01 3.01 3.82 3.93ULsite SE Full Buffer (bps/Hz/site) 1.35 1.35 1.35 1.25 0.87 0.87 0.87 0.80 1.32 1.32 1.32 1.22
1024 1024 1024
802.16e (1X3x3) 802.16e (1X4x2)
10 MHz TDD 10 MHz TDD 10 MHz TDD
Features
802.16e (1X3x1)