Implications of 4G Deployments (MEF for MPLS World Congress Ethernet Wholesale Summit - Paris)
1. 1
Implications of 4G Deployments
MEF Workshop – Carrier Ethernet for Mobile Backhaul
A presentation for “Ethernet Wholesale Summit 2010”
January 2010
Presented by
Javier E. Gonzalez
MEF Representative
2. 2
Market Analysis, Scale and Trends
– Current trends in backhaul deployments
– Growth drivers and challenges worldwide
– Packet-based backhaul cost advantage analysis
– Implications of 4G (WiMAX, LTE) deployments
3. 3
Market Analysis, Scale and Trends
– Packet-based backhaul cost advantage analysis
– Implications of 4G deployments
• Backhaul market drivers + What’s driving 4G ?
• Economics of 4G Networks
• Carrier Ethernet for 4G solutions
4. 4
Packet-based backhaul cost advantage analysis
The Carrier Ethernet Backhaul Economic Driver
TDM backhaul for 4G is costly and unreliable
• Monthly TDM cost per tower for 10Mbps ~ $20K.
4G builds are capital intensive
• Fiber and microwave costs require significant
investment ($20-$50K per tower)
• Existing tree topologies are cost-inefficient
• Leased services can balance the CAPEX load
5. 5
Implications of LTE Deployments
Backhaul Market Drivers
Increased bursty data traffic and streaming video
• User Interface Improvements
• Additional cell sites, devices, and increased b/w (10-100x)
• Wildly varying traffic patterns
Rapid deployment is a must
• First to market captures market share (WiMax has a 2-3 yr.
lead over LTE)
• Rapid construction requires multiple strategies for backhaul
deployment (self-build, lease)
6. 6
Economics of 4G networks
Mobile backhaul is a COST issue!
Carrier Ethernet Backhaul Bends the Curve.
7. 7
Keys to Profitable Ethernet Services
• Bandwidth Control
– Flexible, granular service definitions
• Scalability
– Wide area coverage with simple, repeatable service
tagging
• Flexible Interworking
– Cost optimize the right technologies in the right place
• Resilience
– Robust service protection, high availability
• Manageability
– Clear diagnostics, service level agreement
• Low Touch Operations
– Time to service = time to revenue with lower OpEx
Raise
Revenues
With
Differentiated
Services
Improve
Service
Margins via
Lowered
Costs
Profitability!
8. 8
Carrier Ethernet for 4G
Operators need Ethernet for:
– Greenfield WiMax deployments
• Opportunities limited today but increasing
• All eyes on successful deployments (Clearwire/Xohm)
– ATM 3G Leapfrogs
• Developing world operators slow to adopt 3G technology
– Wireline Wholesalers
• May have separate PWE3 requirements (e.g. ATT, BT)
– 4G deployments (2-3 yrs from now)
• Evolution to LTE from GSM/UMTS family à 88% of market
• Key is to commence now during transition from TDM to Packet
• Ethernet + T1/E1
– Combined Ethernet + T1/E1 (ATM & TDM) over Ethernet backhaul
– Represent roughly 80-90% of today’s MWB
9. 9
4G (WiMAX) Transport Requirements
– Stable, redundant architecture
– Comprehensive management/provisioning system
– Optimized network utilization
– Scalability in MAC addresses, customers, sites
– Point-to-point and multipoint service models
– Microwave friendly
– Flexible “Best Practices” design
– MPLS / PBB-TE / VLAN (QinQ)
10. 10
4G (WiMAX) Transport Challenges
• Operators require a solution that provides:
– Scalability: Scalable MACs & customers
• Directly at tower site - no MAC learning network between towers
– Reliability: Redundancy & rapid restoration
• Dedicated Primary & Back-up tunnels from each tower with rapid
restoration
– Predictable QoS: Strict Priority settings
• Committed & Excess Information Rates per service
– Bandwidth Utilization: Efficient use of network resources
• Bandwidth engineering, no automatic path disabling for loop prevention
(STP)
– Simplified Provisioning: Reduce complexity
• Provisioning wizards with GUI interface for service creation
– Management: Comprehensive OAM capabilities
• Service assurance, Fault-Config-Performance Mgmt (802.1ag, 802.3ah, Y.
1731)
– Cost Effective: Economies of Scale of Carrier Ethernet
• Advantages of a Layer-2 Carrier Ethernet architecture
• Minimize costly Layer-3 devices at head-end.
11. 11
Carrier Ethernet OAM
Customer Domain
Provider Domain
Operator Domain Operator
Domain
Eth
Access MPLS Access
Customer CustomerService Provider
MPLS Domain MPLS
Domain
PW/MPLS OAM
Service OAM
MEP
MIP
Operator
Domain
MPLS
Core
Network OAM
IEEE 802.1ag CFM
Connectivity Fault Management
Operations, Administration, and Maintenance offering enables service
providers to use cost-effective Ethernet networks as the means to
reliably deliver high-bandwidth, profitable, retail and wholesale services.
IETF RFC 5357 TWAMP
Two-Way Active Measurement Protocol
Layer 2 SLA Monitoring & Metrics: Delay, Jitter, Frame Loss ITU-T Y.1731 Ethernet OAM
Enhanced troubleshooting, rapid network discovery IEEE 802.3ah EFM
Service Heartbeats, End-to-End & Hop-by-Hop fault detection
Layer 3 SLA Monitoring & Metrics: Delay, Jitter
• SLA Assurance
• Rapid Fault Isolation
• Minimized Downtime
12. 12
Key drivers for Carrier Ethernet Solutions
Ethernet is Carrier Class & Cost Less
– Universally accepted that Ethernet is less expensive and ubiquitous technology
– By 2008, 89% of providers believed that Carrier Ethernet is mature enough for
“carrier class” deployments
– Solid Ethernet OAM features that provide a comfort factor for providers (SDH like
characteristics)
– Connection oriented Ethernet (COE) solutions provide deterministic & resilient
services (VLANs, PBB-TE, etc..)
Enterprises & Providers want Ethernet
– Reported growth in the Ethernet services revenue ($14.9B in 2008 to $19.9B in 2011)
– Service Providers have lowered the price per bit for Ethernet services, making it
more attractive than legacy services (TDM, ATM, etc…)
Ethernet is integral to Network Transition
– Ethernet is the key component to many NGN packet network transformations
– COE is well-placed to replace legacy SDH applications
– Evolution of 40G and 100G are being driven by data centre applications and are
complimentary to Optical networks
Source: Infonetics Research
13. 13
Advantages of Carrier Ethernet
Advantage Benefits
Cost-
Effective
Ø Capex: Ethernet Economics
Ø Opex: Provisioning, Fault Resolution, Network
Engineering
Simple
Ø Flexible network topologies
Ø Avoids L3 routing complexity
Ø Transparent regarding IPv4, IPv6, IPSec
Secure
Ø No network-layer attacks
Ø No misconfigured Access Control Lists (ACLs)
Ø Inherent security of L2 EVCs
Carrier-
Class
Ø Resilient
Ø Ethernet OAM
Ø Deterministic “SONET/SDH-like”
Ø Convergence with business and residential traffic
14. 14
… further challenges
Packet bandwidth consumption continues to grow….
But revenue growth is slowing
2004 2006 2008 2010
10%
20%
30%
41%
3%
7%
13%13%
-5%-3%-1%
4%
Broadband
Wireless
Wireline
**
** Sources: Yankee Group and Pyramid Research
15. 15
IP-Ethernet Mobile Backhaul:
Preparing for LTE
February 9 MEF Workshop - Carrier Ethernet for Mobile Backhaul
Tuesday, 0915-1000 - Market Analysis, Scale, and Trends
Presented by
Michael Howard
Co-founder and Principal Analyst, Carrier and Data Center Networking
Infonetics Research
28. 28
Thank You
Michael Howard
Co-founder and Principal Analyst, Carrier and Data Center Networks
Infonetics Research
+1 408.583.3351
michael@infonetics.com
www.infonetics.com
29. 29
Accelerating Worldwide Adoption of
Carrier-class Ethernet Networks and Services
For more information regarding joining the MEF:
Visit: www.metroethernetforum.org
Email us at: manager@metroethernetforum.org
Call us at: +1 310 258 8032 (California, USA)
For in-depth presentations of Carrier Ethernet for business, Ethernet services, technical
overview, certification program etc., visit: www.metroethernetforum.org/presentations