Published on March 11, 2014
1 June 1 CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2014 Towards a Converged Network Transport network strategies at Telekom Austria Group January 28 2014 Alexander Schneider Head of transport network development, Telekom Austria Caroline Gabriel, Research Directo Maravedis-Rethink
2 January 2014 Copyright © Maravedis Inc 2013. Welcome and housekeeping > Caroline Gabriel, Research Director Maravedis-Rethink’s research services > Adlane Fellah, head of customer engagement Key findings from latest RAN research > Caroline Gabriel, Research Director Transport network strategies > Alexander Schneider, Telekom Austria Q&A www.maravedis-bwa.com Agenda
3 CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 3 Methodology January 2014 Copyright © Maravedis Inc 2013. dis-bwa.com Top 40 cellco groups Number and profile of cell sites Data requirements, location, business model, spectrum, regulatory Cell sites required to be added or upgraded Equipment and software deployed 2013-2018 + capex Demand driven forecast Primary and secondary data + modelling for each operator Additional detailed survey Vendor input on shipments and expectations Forecasts by region, technology, equipment type, mode, spectrum etc
4 CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 4 Complexity of converged HetNet January 2014 Copyright © Maravedis Inc 2013. dis-bwa.com 0 5 10 15 20 25 30 35 New licensed spectrum LTE upgradesWi-Fi offload Small cells inc Wi-Fi Cloud-RAN Flexible networks, SON LTE-A features eg CoMP %ofnewdatacapacity 2013 2018 Over period to 2018 2020 • Operators will use many tools • Rising value of access to LTE spectrum and fiber • But many other tools in play to achieve capacity
5 CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 5 Small cells and Cloud-RAN January 2014 Copyright © Maravedis Inc 2013. dis-bwa.com • Modernization vs build-out, decline in new primary cells •New architectures •Metrocells •Cloud-RAN •Super Macro •To fulfil potential • Interworking with other layers • Flexible spectrum • SON etc 0 10,000 20,000 30,000 40,000 50,000 60,000 0 2,000 4,000 6,000 8,000 10,000 12,000 2013 2014 2015 2016 2017 2018 unitsAPAC units Africa CALA CIS Europe Middle East North America APAC Cloud-RAN deployment by region Source: MaRe RAN Service report
6 CLIENT CONFIDENTIAL Copyright © Maravedis-Rethink 2013 www.maravedis-bwa.com 6 The need for fiber January 2014 Copyright © Maravedis Inc 2013. dis-bwa.com • Widening gulf between fiber haves and have- nots • Small cell backhaul • Cloud-RAN fronthaul • Balance of power shifts to those with wirelines • Pace of innovation in alternatives 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2013 2014 2015 2016 2017 2018 primarysites Fronthaul links total Wireless fronthaul Fronthaul deployment Source: MaRe Cloud-Ran report
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Analyst Team Customer Engagement Miami Senior Analyst Video London www.maravedis-bwa.com CLIENT CONFIDENTIAL Adlane Fellah Caroline Gabriel Research Director London Robert Syputa Peter White Senior Advisor Seattle Claus Hetting Small Cells & WiFi Copenhagen Earl Lum Backhaul & Core Analyst California Basharat Ashai Market Analyst APAC and MEA India Luis Reyes Regulatory Research Mexico © Maravedis Inc. CLIENT CONFIDENTIAL
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2014 Research Offering © Maravedis Inc. CLIENT CONFIDENTIAL Service Description Deliverables Lead Analyst RAN Service • Covers Macro cells, small cells and Carrier WiFi. • Vendor Profiles & SWOT Analysis • Shipments and Market Forecasts • Carrier expectations & Trends. 2 comprehensive reports per year (PDF and Excel) 6 research notes Analyst Support Caroline Gabriel Backhaul Service • Covers PTP , NLOS and emerging backhaul technologies • Vendor Profiles & SWOT Analysis • Shipments and Market Forecasts • Carrier expectations & Trends 2 comprehensive reports per year (PDF and Excel) Analyst Support Earl Lum Wireless Watch Assess the impact of events which have happened through the week, in the world of wireless. 48 Weekly Research Issues Caroline Gabriel
2014 RESEARCH OFFERING (CONT.) Q1 – Global Macrocell BTS Transceiver Market Analysis – Global Macrocell Base Station Market Analysis – Global Microcell Base Station Market Analysis • Q2 – Global PTP Radio Market Analysis –– Global BTS Antenna Market Analysis • Q3 – Global DAS Market Analysis • Q4 – Global Picocell Market Analysis – Global Fiber Optic Cables/Connector Analysis – Various DNA-I Teardown Reports, Ex: Ericsson W-CDMA/LTE AIR21 17/2100MHz Semi-Active Antenna Unit to its DesigN Analysis Infrastructure (DNA-I) series of teardown reports. © Maravedis Inc. CLIENT CONFIDENTIAL
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Contact Information © Maravedis Inc. CLIENT CONFIDENTIALBROADBAND WIRELESS INTELLIGENCE www.maravedis-bwa.com www.linkedin.com/in/adlanefellah www.twitter.com/maravedis MaravedisRethink email@example.com http://www.maravedis-bwa.com http://www.rethinkresearch.biz/ (305) 865-1006 (514) 313-5656 Adlane Fellah Customer Engagement
16 Transport Network Strategy in Telekom Austria Group Alexander Schneider,
17 Content Table 1 Group Overview 2 Group Backbone 3 Convergent Network Strategy 4 Transport NW Development a IP/MPLS b c d Small Cell Backhauling DWDM Ethernet MW e Migration to All IP f g h SDN Security Synchronization
18 Telekom Austria Group: Who We Are > One of the leading communication providers in Central and Eastern Europe > We operate in eight countries. > Our almost 17,000 employees deliver > Products and services of voice telephony, broadband Internet, multimedia services, data and IT solutions, wholesale as well as m-payment solutions > For more than 23 million customers across our markets of operations. Home Overview Brand Facts OpCos History Innovation CSR Holding Vodafone
19 TAG International Backbone
20 Convergent Networks Strategy 20
21 TAG develops it´s companies differentiated based on market maturity, regulatory conditions and competitive situation towards full communication providers TAG MARKET EVOLUTIONARY PATH Single Brand Multibrand Mobile Only Convergent Segmentation MarketApproach&Offering Austria Slovenia Bulgaria Serbia Croatia Belarus Macedonia Full communication provider to exploit all growth opportunities Multibrand strategy to exploit new mobile market segments and protect the main brand • Push operations to achieve significant size. • Focus on mobile-only strategy & screen for convergence entry opportunity 21
22 TAG – Fixed Access Footprint 22 Austria / A1: incumbent >FTTEx/C/B: DSL & Vectoring >FTTH: GPON Croatia / Vipnet: Bnet acquired >HFC (Coax Cable) Network; >Bitstream (ADSL) - Wholesale Offer >Fiber connections to corporate customers Bulgaria / MTEL: Spectrumnet & Megalan acquired >FTTH (GPON) >Active Ethernet Slovenia / Si.mobil: >Bitstream DSL via Wholesale offering of incumbent
23 TAG Fixed Access Networks: Further Goals 23 > Reduction of leased lines > Faster connection of mobile sites through fiber > Consolidate the transport network > Reduce the number of PoP locations and network elements > Offloading Data traffic from cellular to fixed nw in home environment
24 Transport Network Development 24
25 IP MPLS for Core and converged Backhaul Telekom Austria Group issued an RFP in 2011 and selected 2 vendors for the group. Access Service Edge Internet Aggregation MSAN/DSLAM/ OLT Core Video Voice Gateway 10GE GE Customer Site FE E1/ MLPPP/TDM PW Customer CPE L2/L3 VPN VoIP TV 3-Play L2/L3 VPN xDSL/ FTTx MPLS VPN 40/100GE Mobile RNC/EPC PDH (microwave) chSTM1/MLPPP/ TDM PW Mobile BSC/RNC Core 1 Core 3 Agg 1 Agg 3Agg 2 Acc 1 Acc 2 nxE1 DHCP, Radius Core 2 S C O P E O F R F P 8 Node Types: Core1 Core2 Core3 Agg.1 Agg.2 Agg.3 Acc.1 Acc.2
26 Optical Layer Telekom Austria Group TAG issued an RFP in 2012 for Metro/Access WDM and selected 2 vendors for the group. The Core WDM Layer shows 3 vendors in TAG, no RFP last year and this year because book values still high compared to new investment. Cross layer optimization between the optical layer and the IP layer is done in order to optimize the transport cost.
27 Fiber vs. Microwave Decision Tree Fiber Invest < x AND possible to construct until T ? Build Fiber MW possible ? Build MW Copper possible? Build Copper yes yes yes no no no Fiber BC positive ? Build Fiber Do nothing yes no Fiber 60% - 70% MW 30% - 40% Copper 0% - 1% x= Microwave TCO Resulting Technology split for Mobile Backhaul in A1 (incumbent operator):
28 Ethernet Microwave Telekom Austria Group TAG issued an RFP in 2009 and selected 1 vendor for the group. Short Haul only Telekom Austria Group issued an RFP in 2012 and selected 2 vendors for the group Short Haul Long Haul E Band Fiber and Ethernet Microwave are the main pillars For Mobile Broadband 1Gbit/s1Gbit/s Fiber MW in the last hop for rapid and cost effective Roll out of mobile networks. Fiber Roll out for converged network.
29 Small Cell Backhauling Concept 29 TAG has defined a concept for Small Cell Backhauling Depending on the use case (e.g. capacity hot spot or indoor coverage) there is a toolset of technologies already defined in TAG (E Band MW, Fiber, TDD LTE, xDSL, Coax, Low Band MW) Additional focus needs to be put on V Band Microwave (60 GHz) • Higher attenuation reduces interference and allows frequency reuse of 1 • Wider beam allows fast mounting on lamp post and insensitivity to misalignment and wind • Low Cost all outdoor equipment with small footprint • Low installation cost with “auto alignment” for mass deployment
30 Migration of the Backbones from Legacy to IP 30 • All national Backbones in TAG are IP/MPLS capable • However in most OpCos SDH is still in place. • There are no new investments in SDH, new services are provisioned on the IP/MPLS backbonde, existing services are migrated from SDH to IP/MPLS whenever possible and as soon as possible. • Traffic reduction in the SDH network allows to reuse parts as spare. • Timeline SDH Phase out until 2018
31 Migration of the Backhaul from Legacy to IP 31 Hypothetical distribution of Backhaul connections over time if TAG goes to All IP (only IP) in the Backhaul Network by the end of 2017. The figures below the graph indicate the year. The distribution shown until 2013 reflects the real situation. Year 8 9 10 11 12 13 14 15 16 17 #BackhaulConnections SRAN IP 4G IP 3G IP 3G ATM 2G TDM
32 Security Strategy for LTE Backhaul 32 3GPP Technical Specification 33.401, recommends the following approach: “if your are using shared or unsecure transport networks you should encrypt traffic”. Transmission of LTE user plane and control plane data should be regarded as unsecure/untrusted in several cases: • transport domain/infrastructure (e.g. leased lines) not owned by OpCo • locations of eNodeBs are not owned by OpCo • Radio Access Network (RAN) or other network equipment is shared with other operators In such a scenario, an operator should deploy a VPN gateway (security gateway) in order to encrypt the LTE traffic in the backhaul network: • Backhaul traffic between eNodeBs and mobile core network • Backhaul traffic between eNodeBs
33 Security Strategy for LTE Backhaul 33 IPSec security gateway overview
34 Synchronization Strategy 34 Investment for synchronisation within TAG is mainly driven by the need to deliver accurate frequency to the air interfaces of ~20.000 Radio sites especially when migrating from TDM to IP. For TDM-based aggregation networks (SDH/E1) every site can derive frequency in sufficient quality via its network interface. For base station sites without E1-uplinks (eg. SRAN with GbE-uplink) there are today two standardised solutions for NodeB synchronisation. • Synchronous Ethernet - SyncE • Precision Time Protocol PTP - 1588v2 TAG shall use these two technologies in combination
35 Synchronization Strategy – Frequency 35 Migration from SDH to Synchronous Ethernet requires that all Network Elements in the chain support Synchronous Ethernet.
36 Synchronization Strategy - Time 36 • PTP 1588v2 will be needed at the point of time when phase- and time of day (ToD) sync is needed for some LTE_advanced features. SyncE will be also a backup for 1588 Time synchronization and it will improve the accuracy/robustness of the 1588 time synchronization. • Time/Phase source could be taken from national timekeeping organisations (e.g. for A1 from Austrian “Bundesamt für Eich- und Vermessungswesen”). This has got the advantage that the government has to make the strategic decision where to get the time information from which may affect the national security. • GPS based Time sources and NTP are not seen to be the future primary timing reference for TAG Transport Networks.
37 Phasing out legacy technologies PDH Microwave will be replaced with Ethernet MW in the next years. Today more Ethernet MW links in operation than PDH MW links. ATM will be replaced with IP/MPLS in the next years. Outphasing of SDH in the fixed network will be done later. SDH will be here to stay for some more years. Other technologies like Frame Relay, X.25 etc. have been phased out already.
38 Software Defined Networks SDN TAG introduces SDN and NFV (Network Function Virtualization) in the Core and IT (Datacenters) now and will introduce it in the Transport in the mid term future.
4040 www.maravedis-bwa.com Copyright © Maravedis Inc 2014 CLIENT CONFIDENTIAL Contact Information www.linkedin.com/in/adlanefellah www.twitter.com/maravedis MaravedisRethink firstname.lastname@example.org http://www.maravedis-bwa.com http://www.rethinkresearch.biz/ (305) 865-1006 (514) 313-5656 Adlane Fellah, Customer Engagement
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