WiMAX Evaluation: The Perspective of a Service Provider Jorge Rodrigues WiMAX Program Manager Network Evolution Strategy Department PT Comunicações Workshop on Mobile WiMAX - Towards Ubiquitous Internet ISCTE, LISBON 27th September 2007 Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 1
Agenda 1. Mobile WiMAX (802.16 e) business analysis tool 2. Base Stations: CAPEX vs. AAS 3. Evolution of AAS solution with demand 4. Business Scenarios Comparison 5. 2.5 GHz vs 3.5 GHz Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 2
Business analysis tool based on 802.16e • The work being presented is supported by a business analysis tool based on a mobile WiMAX model. • It is our aim to isolate trends and draw conclusions useful for decision-making in terms of network evolution and business strategy. Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 3
16e model and NLOS propagation model Duplexing TDD Frequency Band 2.5 GHz 3.5 GHz Frequency Reuse 1,1,3 FRS 1,3,3 3 Channel Bandwidth 5 MHz 7 MHz 10 MHz Total Bandwidth Available 10 MHz 20 MHz 28 MHz 30 MHz 40 MHz 56 MHz 3 No. Sectors / BS(cell) AAS SISO SIMO 2X2 MIMO 4-BF Frame Ratio DL/UL 3:1 2:1 3:2 1:1 Spectral Efficiency DL 0.79 bps/Hz 1.18 bps/Hz 1.84 bps/Hz 1.81 bps/Hz Spectral Efficiency UL 0.31 bps/Hz 0.63 bps/Hz 0.86 bps/Hz 0.96 bps/Hz CPE type - worst case Outdoor CPE Indoor CPE Laptop Handheld COST 231-Hata, calibrated for WiMAX frequencies (up to 3.5 GHz) Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 4
Agenda 1. Mobile WiMAX (802.16 e) 2. Base Stations: CAPEX vs. AAS 3. Evolution of AAS solution with demand 4. Business Scenarios Comparison 5. 2.5 GHz vs 3.5 GHz Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 5
Base Stations CAPEX vs. AAS Pop. Density: 6674 inhab./Km2 Year 1 Year 2 Year 3 Year 4 Year 5 Dense Urban SISO 202 202 202 202 208 BSs - BEST CHOICE (CAPEX) coverage coverage coverage capacity capacity Type of solution 1 1 2 4 4 Channels solution - No. Channels/sector 170% 170% 232% 356% 415% Cost BSs - total cumulative SIMO 137 137 137 137 162 BSs - BEST CHOICE (CAPEX) coverage coverage coverage coverage capacity Type of solution 1 1 2 4 4 Channels solution - No. Channels/sector 124% 124% 166% 250% 287% Cost BSs - total cumulative 2x2 MIMO 137 137 137 137 137 BSs - BEST CHOICE (CAPEX) coverage coverage coverage coverage coverage Type of solution 1 1 2 2 4 Channels solution - No. Channels/sector 126% 126% 169% 169% 253% Cost BSs - total cumulative 4-BF 92 92 92 92 106 BSs - BEST CHOICE (CAPEX) coverage coverage coverage coverage capacity Type of solution 1 1 2 3 4 Channels solution - No. Channels/sector 100% 100% 128% 157% 208% Cost BSs - total cumulative Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 6
Base Stations CAPEX vs. AAS CAPEX BSs vs. AAS 500% 400% 4-BF 300% 2X2 MIMO 200% SIMO 100% SISO SISO SIM O 0% 2X2 M IM O Year 1 Year 2 Year 3 Year 4 Year 5 4-BF CAPEX BSs vs. AAS 450% 400% 350% 4-BF 300% 2X2 MIMO 250% 200% SIMO 150% SISO 100% 50% 0% Year 1 Year 2 Year 3 Year 4 Year 5 Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 7
Agenda 1. Mobile WiMAX (802.16 e) 2. Base Stations: CAPEX vs. AAS 3. Evolution of AAS solution with demand 4. Business Scenarios Comparison 5. 2.5 GHz vs 3.5 GHz Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 8
Evolution of AAS solution with demand • The technology allows an evolution in the antenna solutions with demand Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 9
Evolution of AAS solution with demand • Beamforming may be the best technology from the 1st year • Availability of equipment from the beginning is an important point for efficient business planning. Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 10
Evolution of AAS solution with demand BS 2x2 MIMO, 3 sectors 100% Year 1 Year 2 Year 3 Year 4 Year 5 118% BS BF, 3 sectors 2x2 MIMO BSs - BEST CHOICE (CAPEX) 137 137 137 137 137 Cost BSs - total cumulative 126% 126% 126% 169% 211% 4-BF BSs - BEST CHOICE (CAPEX) 92 92 92 92 100 Cost BSs - total cumulative 100% 100% 128% 157% 198% BS 2x2 MIMO, 3 sectors 100% Year 1 Year 2 Year 3 Year 4 Year 5 153% BS BF, 3 sectors 2x2 MIMO BSs - BEST CHOICE (CAPEX) 137 137 137 137 137 Cost BSs - total cumulative 100% 100% 100% 133% 167% 4-BF BSs - BEST CHOICE (CAPEX) 92 92 92 92 100 Cost BSs - total cumulative 103% 103% 125% 148% 182% For MIMO to be a better solution would have to be 2/3 of the price of the Beamforming solution Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 11
Agenda 1. Mobile WiMAX (802.16 e) 2. Base Stations: CAPEX vs. AAS 3. Evolution of AAS solution with demand 4. Business Scenarios Comparison 5. 2.5 GHz vs 3.5 GHz Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 12
BUSINESS SCENARIOS COMPARISON Fixed/nomadic/mobile vs. Fixed/nomadic 35,000 € 30,000 € Fixed/Nomadic/Mobile Adoption Rate 25,000 € 20,000 € 10.00% Fixed 8.00% 15,000 € Fixed/nomadic/mobile NPV 6.00% Nomadic 4.00% 10,000 € Fixed/nomadic 2.00% Mobile 5,000 € 0.00% 1 3 5 7 9 0 € r r r r r a a a a a e e e e e Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Y Y Y Y Y (5,000 €) (10,000 €) Fixed/nomadic/mobile vs. Fixed/nomadic Fixed/Nomadic Adoption Rate 50% 40% 8.00% 30% 6.00% Fixed 20% 4.00% Nomadic Fixed/nomadic/mobile IRR 2.00% 10% 0.00% Fixed/nomadic 0% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 6 Year 7 Year 8 Year 9 Year 10 -10% -20% -30% WiMAX delivers higher returns on investment for convergent integrated services Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 13
Agenda 1. Mobile WiMAX (802.16 e) 2. Base Stations: CAPEX vs. AAS 3. Evolution of AAS solution with demand 4. Business Scenarios Comparison 5. 2.5 GHz vs 3.5 GHz Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 14
2.5 GHz vs 3.5 GHz Parameters used 10 MHz Channel Bandwidth 4-BF AAS Frequency Band 3.5 GHz 2.5 GHz 2:1 Frame Ratio DL/UL Area per BS (Km2) 0.92 1.35 Handheld CPE type cell radius (Km) 0.60 0.72 1,1,3 Frequency Reuse 3 FRS 1,3,3 1.81 bps/Hz Spectral Efficiency DL 0.96 bps/Hz Spectral Efficiency UL + 47% + 21% Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 15
2.5 GHz vs 3.5 GHz 3.5 GHz YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 2x2 MIMO BSs - BEST CHOICE (CAPEX) 137 137 137 137 137 Type of solution coverage coverage coverage coverage coverage Channels solution - No. Channels/sector 1 1 1 2 3 Cost BSs - total cumulative 147% 147% 147% 196% 246% + 17% 2.5 GHz 2x2 MIMO BSs - BEST CHOICE (CAPEX) 93 93 93 93 99 Type of solution coverage coverage coverage coverage capacity Channels solution - No. Channels/sector 1 1 2 3 4 Cost BSs - total cumulative 100% 100% 133% 167% 211% For coverage-limited deployments 2.5 GHz requires LESS CAPEX than 3.5 GHz Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 16
2.5 GHz vs 3.5 GHz 3.5 GHz YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 4-BF BSs - BEST CHOICE (CAPEX) 92 92 92 92 100 coverage coverage coverage coverage capacity Type of solution Channels solution - No. Channels/sector 1 1 2 3 4 Cost BSs - total cumulative 117% 117% 149% 182% 231% 2.5 GHz 4-BF BSs - BEST CHOICE (CAPEX) 82 82 82 82 100 Type of solution coverage coverage coverage coverage capacity 1 1 2 4 4 Channels solution - No. Channels/sector Cost BSs - total cumulative 104% 104% 133% 192% 226% • Beamforming shows less difference when comparing 2.5 GHz to 3.5 GHz. Another argument in favour of Beamforming. Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 17
2.5 GHz vs 3.5 GHz NPV : 3.5 GHz vs 2.5 GHz (for 2x2 MIMO) Generally 2.5 GHz brings 40,000 € a better return on 30,000 € investment than 3.5 GHz 20,000 € 3.5 GHz NPV 10,000 € 2.5 GHz 0 € Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 -10,000 € -20,000 € NPV : 3.5 GHz vs 2.5 GHz (for 4-BF) 35,000 € 30,000 € 25,000 € 20,000 € 15,000 € 3.5 GHz NPV 10,000 € 2.5 GHz 5,000 € 0 € The advantage of -5,000 € Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Beamforming for 3.5 GHz -10,000 € Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 18
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