Transport Networks for Mobile Operators

Explaining Where Ethernet FitsInto the Mobile Operator’sNetwork Evolution Plans

IIR Transport Networks for Mobile Operators

The Pseudo-Wire Company®

Amsterdam, May 2008

http://www.axerra.com/events.asp

2 - © 2008 Axerra Networks®. All rights reserved.

Mobile Backhaul - Key Market Trends Enhanced user-experience demands

higher-speed data rates– HSDPA – the “killer application” for

mobile backhaul – Flat rate 4G technology (WiMAX and LTE)

standardization is in the final stage ofapproval process

– Will take 3-4 years till mass deployment– Many operators will use PW as IP solution

till LTE availability in order to skip one hardware upgrade phase

Access is definitely the bandwidth bottleneck– PDH/TDM is not a scalable solution

Backhaul networks migrating to Ethernet– The mobile RAN is migrating from

TDM and ATM to IP/ETH All IP RAN evolution will happen

gradually and not in one step– 2G/3G Base Stations will co-exist for

a long time with 3G taking over gradually– Base Stations with TDM/ATM I/Fs

will stay for at last 3~5 years

Source: Heavy Reading, Ethernet BackhaulQuarterly Market Tracker, November 2007


Typical 2G/3G RAN Backhaul Architecture

Both, 2G TDM and 3G ATM traffic are backhauled over TDM leased lines

Radio Access Network

Leased lines for backhaul accounts today 40%-60%of Mobile Operators Operational Expenses (OpEx)

BTS

NodeB

Abis

E1

RNC

Iu

ATM/IMA, n x E1

BSC

A

ATMSwitch

STM-1 ATM

PDH/SDHTDM Leased Lines

DXCE1/

ChSTM-1

E1/ ChSTM-1

E1/ ChSTM-1

Iub

Abis

Iub


Global Market Dynamics – Cell Site GrowthSource: Infonetics ResearchMobile Backhaul Equipment,Installed Base & Services, March 2007

Worldwide Mobile Backhaul Connections: Installed vs New

0

1,000

2,000

3,000

4,000

5,000

CY05 CY06 CY07 CY08 CY09 CY10

Calendar Year

Con

nect

ions

(K)

New connections

Installed connections

Installed Worldwide Cell Site connections will grow from 2.9M in 2006to 4.8M in 2010

– The vast majority of today Installed Cells are T1/E1 based– Many of the Cells can’t be upgraded to Ethernet

Ethernet to the Cell Site will be required in order to support future NodeB Many want pseudowire to support 2G BTS and NodeB cell sites (and site with

collocated 2G/3G) Increased pressures to use Ethernet for all traffic from a cell site


TDM Backhaul Hits the Breaking-Point Ethernet Solutions for Cell Backhaul

Source: Heavy Reading (11/2007) – A large European mobile operator


3G is great, but what is next? Ethernet Solutions for Cell Backhaul is driven by WCDMA/HSPA Evolution

WiMAX and 4G (LTE) technologies standardization coming soon Continuous Improvement of Data Capabilities

– T1/E1 will not scale, Ethernet is the only solution Ethernet will be supported in latest releases of NodeB

– During this year new NodeB will support Ethernet– This will increase the demand for Ethernet to the cell site


Ethernet is the Accepted Solution Ethernet Solutions for Cell Backhaul

Ethernet Backhaul will become available before Ethernet RBS– This gap will force the early use of Pseudo-Wire technology– Pseudo-Wire will stay in the cell in order to support Hybrid cells


Migrating to Ethernet Transport - MEF Use Cases

Hybrid RAN/HSDPA Offload -Enables phased migration to

Ethernet while:Utilizing low cost and available

broadband technology fortransport HSDPA traffic

Packet offload over Carrier Ethernet (HSDPA offload) Overlay MEN does bandwidth offloading onto Ethernet services Legacy network continues to transport voice and deliver timing/signaling Voice services are migrated onto Ethernet in a second phase

Emulation over Carrier Ethernet (legacy services over Ethernet) RAN nodes with legacy interfaces transport all traffic over Ethernet services using

emulation technologies – from Day 1

“Big Bang”


Multiple Services Over PSN with PWE3 Solution Examining the application of Ethernet to GSM, GPRS, UMTS & HSPDA/HSUPA

Service Supported Service Cell Site Interface MSC Interface Benefit

CES Pseudowire AMPS, GSM, CDMA TDM: T1/E1, DS3/E3, OC3/STM-1

TDM: T1/E1, DS3/E3, OC3/STM-1,

B/W gains from DS0 grooming

ATM Pseudowire UMTS, HSDPA ATM & ATM IMA: T1/E1, DS3/E3, OC3/STM-1

ATM: T1/E1, DS3/E3, OC3/STM-1

Stat-mux gainsNo ATM switch needed in CO

HDLC Pseudowire 1xRTT, EV-DO, Abis HDLC: T1/E1, DS3/E3 HDLC: T1/E1,

DS3/E3, OC3/STM-1

Stat-mux gainsHDLC data interface

FR Pseudowire iDEN FR: T1/E1, DS3/E3 FR: T1/E1, DS3/E3, OC3/STM-1

Stat-mux gainsFR data interface

Ethernet Pseudowireswitching

EV-DO, WiMax, 4G Ethernet: FE Ethernet: GigENo TDM interfaces needed on CO router

WiMAX/LTE

EVDO

3G

2G

MultiprotocolPseudowires

GigE

TDM

ATM

RNC

RNC

BSCMSCCell Site

Pseudowire Tunnel

Ethernet

Service

CES T1/E1

ATM IMAnx E1/T1

Ethernet

Ethernet

PWE3Access Device

PWE3Gateway


Traffic Differentiation and QoS with PWE3 Mobile Backhaul

Three level of Priorities are required as minimal– Priority 1 for Voice and Management– Priority 2 for R99 3G Data– Priority 3 for HSPA/HSUPA– Priority 4 might be needed for HSDPA (Best Effort Service)


Pseudo-Wire – the Packet-based RAN Migration Enabler

For the next few years the vast majority of cell site connections will be based on T1/E1 interfaces

About 1/3 of overall cell sites are collocated 2G/3G sites Growing demand for Ethernet connectivity to high capacity cell sites

– The amount of bandwidth per cell site is estimated to grow by 3x to 4x over time – New 3G and 4G NodeB will use Ethernet interfaces

Most additions of 3G cell sites will take place in existing 2G cell sites– Operators use existing foot print of 2G cell sites

All traffic originating from Hybrid cell site will be carried over Ethernet using PWE3 gear

Use PWE3 gear to servecollocated 2G/3G sites

Use PWE3 gear withadvanced functionality

(Ethernet Link/Services OA&M and PM)

PWE3 CPE will become anEthernet Demarcation Device


Widespread Consensus on the need for Pseudo-Wires

Major operators are deploying PW solutions at the cell site and it playsan important role in the evolution of mobile backhaul networksto IP/Ethernet

– T-Mobile, Telecom Italia, Swisscom, Taiwan Mobile and eMobile (Japan) are just few operators that announce PW deployment in 2007

– For many carriers Pseudo-Wire is not a question of “if” any more but a question of “where?” and “when?”

BTSBSC

Carrier EthernetRAN

Emulated TDM/ ATM/HDLC PW Service

ETHETH

TDME1

IPETH

R5/4G/ WiMax

PWE3 Cell Site Device PWE3

GatewayG.823/824 Compliant Clock

ATM RNC R99

RNC R5

ATM/IMA

NodeB


Different Design Topologies For Pseudo-Wire in the RAN

(1) Stand-alone Pseudowires in the RAN

(2) Integrated Pseudowires in the RAN

RNC

ETH

PWE3 Access Device

Iub

OC-3 ATM

PWE3 Gateway T1/Ch OC-3

AbisETH

Iub - ATM PseudowireAbis - CES Pseudowire

PSN Tunnel

BSCT1/E1

IMA

ETH

PWE3 blade

ETH

Carrier Ethernet/

MPLS ETH

Iub - ATM PseudowireAbis - CES Pseudowire

PSN Tunnel

Both integrated RAN and stand-alone PWE solutions are valid and will be deployed in volume during the next few years

The market will be dominated by stand-alone solutions through 2008


Ethernet demarcation features enables:– End to End Service Level Assurance

–Ethernet QoS– Investment protection

–PWE3 CPE of today will evolve to Ethernet Demarcation device– Lower total cost of ownership

–Fewer boxes in the Cell Tower

PW OAM

UNI

PWE3Gateway

PWE3CPE

Ethernet Service OAM802.1ag

CECE PE

UNIAC AC

PEPSN Tunnel

Eth Link OAM802.3ah

Eth Link OAM802.3.ah

Subscriber Interface

OAM

Network Interface OAM Subscriber

Interface OAM

Network Interface OAM

Ethernet Link OA&M: Discovery,Link Monitoring, Remote Failure Indication,and Loopback

PWE3 CPE will become an Ethernet Demarcation DeviceMonitoring SLA Over 3rd Party Transport Networks


Mobile Backhaul over Ethernet Case StudyHSPA Mobile Backhaul – Tier 1 Mobile operator in Japan

HSPA data traffic runs over Ethernet network – 3rd party Ethernet network is used– Clock recovery over Packet is supported – Fast, easy deployment with perfect migration to Carrier Ethernet– Hundreds of cells already deployed

Ethernet Network

RNC

NodeB

STM-1 ATM

AXN800 NodeB

Iub

STM1 ATM

GigE

AXN10-A55

AXN10-A55

Emulated ATM circuits

HPCR Clock Transmission

FE

FE

STM1 ATM

Iub


Mobile Backhaul over Ethernet Case Study Taiwan Mobile - GSM/UMTS Backhaul over PSN

Use of Pseudo-Wire technology for TDM (2G) and ATM (3G) Circuit and Service emulation over Carrier Ethernet

– Support HSDPA and HSUPA No changes to the existing RAN infrastructure Clock architecture not changed Future-proof investment, including ability to add IP/Ethernet in the Cell

3G RNC

2G BSC

Metro Ethernet from 3rd party SP

PWE3 GW

Abis

NMS

GigE with LAG

FE

FE

Emulated TDM and ATM Circuits

Ethernet LL

Wireline / MSO DomainPWE3 CPE

OC3/STM-1ATM (Iub)

CH OC3/STM-1or T1/E1

2G BTS

T1/E1 TDM(Abis)

1xT1/E1 ATM(Iub)

3G NodeB

2G BTS

T1/E1 TDM(Abis)

1xT1/E1 ATM(Iub)

3G NodeB


Conclusions Migration to IP/MPLS backhaul networks is inevitable

– Drivers are RAN capacity growth, IP base stations, and service evolution Immediate OpEx savings and short ROI

– Carriers will deploy Ethernet for 3G and 4G backhaul to realize significant cost advantages and close the gap between mobile revenue and expense

– Pseudo-Wire allows OpEx saving with minimal CapEx investment by skipping some upgrades on the way to LTE

Investment protection– Shifting to Ethernet Assurance and other added value features…

RAN Evolution versus Revolution– 2G/3G Base Stations are collocated and will co-exist for a long time

with 3G taking over gradually– Migration to All IP RAN will happen gradually and not in one step

PW Mobile Backhaul solutions are picking up, becoming mainstream– Pseudo-Wire is the Packet-based RAN Migration Enabler– Field proven with large deployment over ANY packet transport network

PW Mobile Backhaul Solutions Available Today..for 2G, 3G, and Beyond

The Pseudo-Wire Company®

Thank You

Documents

Transport Networks for Mobile Operators