LTE Series: Mobile Data Explosion – The Backhaul Perspective
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Webinar presenter: Ran Avital, VP Strategic and Product Marketing, Ceragon Networks
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Q&A
I am here and I think I answered your questions re ROI . Sorry you could not see that
Hi Ran. I’ve heard that operators are pushing more intelligence out to the backhaul layer in order to keep traffic away from the core. What are the benefits in doing this?
This is very similar to broadband networks – there is a huge advantage in proper load balancing, statistical multiplexing, and service differentiation across the network. As we all know – not all services are created equal. Operators that learn to apply differentiated service mechanisms – may provide higher QoE (quality of experience) at a lower total cost – i.e. higher profitability. In the backhaul, where up to 50% is based on microwave, saving on expensive spectrum has a major impact on the bottom line
What is the relative cost of installing say a 2km microwave backhaul link for LTE backhaul versus installing a fiber cable, and would this change for LTE-A?
The main questions you need to ask yourself are:
What is the required capacity?
What is the upside (you mentioned LTE-A so we are talking about 1 Gbps in the future)
The right of way cost
Cost of spectrum in your country etc.
For example, our IT wished to set up a fiber between 2 buildings. It cost 3500 USD – just to cross the plaza, not to mention 40 USD monthly – charged by the owners of our real estate.
Dealing with the local municipalities can be even more expensive.
On the other hand, there are many service provides that can provide you access to their fiber. So I am afraid the answer is “depends”.
Let us know the details and we can help you find the best fit for your needs and budget
How many month ROI would you say a MW backhaul would have compared to buying fiber capacity?
For licensed spectrum, ROI for microwave is usually within 2 years. For small cells, due to cost limitations, the usage of unlicensed spectrum may yield a very short ROI compared to fiber.
what percentage of small cells do you see connected to fiber vs. MW ?
In traditional backhaul it was 50% for Microwave. Some analysts forecast 87% for wireless in small cells environment. Our current assumption: It would start with a relatively high wire line connectivity ratio so something like 65%-60% for wireless in the beginning of small cells deployment