The Perspective of a Service Provider Jorge Rodrigues WiMAX Program - - PowerPoint PPT Presentation

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The Perspective of a Service Provider Jorge Rodrigues WiMAX Program - - PowerPoint PPT Presentation

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WiMAX Evaluation: The Perspective of a Service Provider Jorge Rodrigues WiMAX Program Manager Network Evolution Strategy Department PT Comunicaes Workshop on Mobile WiMAX - Towards Ubiquitous Internet ISCTE, LISBON 27th September 2007

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 1

WiMAX Evaluation: The Perspective of a Service Provider

Workshop on Mobile WiMAX - Towards Ubiquitous Internet ISCTE, LISBON 27th September 2007

Jorge Rodrigues

WiMAX Program Manager Network Evolution Strategy Department PT Comunicações

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 2

  • 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

Agenda

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 3

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.

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 4

16e model and NLOS propagation model

Duplexing 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

  • No. Sectors / BS(cell)

3 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)

TDD

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 5

  • 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

Agenda

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 6

Base Stations CAPEX vs. AAS

  • Pop. Density: 6674 inhab./Km2

Dense Urban

Year 1 Year 2 Year 3 Year 4 Year 5 SISO

BSs - BEST CHOICE (CAPEX)

202 202 202 202 208

Type of solution

coverage coverage coverage capacity capacity

Channels solution - No. Channels/sector

1 1 2 4 4

Cost BSs - total cumulative

170% 170% 232% 356% 415% SIMO

BSs - BEST CHOICE (CAPEX)

137 137 137 137 162

Type of solution

coverage coverage coverage coverage capacity

Channels solution - No. Channels/sector

1 1 2 4 4

Cost BSs - total cumulative

124% 124% 166% 250% 287% 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 2 2 4

Cost BSs - total cumulative

126% 126% 169% 169% 253% 4-BF

BSs - BEST CHOICE (CAPEX)

92 92 92 92 106

Type of solution

coverage coverage coverage coverage capacity

Channels solution - No. Channels/sector

1 1 2 3 4

Cost BSs - total cumulative

100% 100% 128% 157% 208%

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 7

Base Stations CAPEX vs. AAS

Year 1 Year 2 Year 3 Year 4 Year 5

4-BF 2X2 M IM O SIM O SISO

0% 100% 200% 300% 400% 500%

CAPEX BSs vs. AAS

4-BF 2X2 MIMO SIMO SISO

CAPEX BSs vs. AAS

0% 50% 100% 150% 200% 250% 300% 350% 400% 450% Year 1 Year 2 Year 3 Year 4 Year 5 4-BF 2X2 MIMO SIMO SISO

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 8

  • 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

Agenda

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 9

Evolution of AAS solution with demand

  • The technology allows an evolution in the antenna solutions with demand
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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 10

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.

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 11

Evolution of AAS solution with demand

Year 1 Year 2 Year 3 Year 4 Year 5 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% Year 1 Year 2 Year 3 Year 4 Year 5 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% BS 2x2 MIMO, 3 sectors 100% BS BF, 3 sectors

118%

BS 2x2 MIMO, 3 sectors 100% BS BF, 3 sectors

153%

For MIMO to be a better solution would have to be 2/3 of the price of the Beamforming solution

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 12

  • 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

Agenda

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 13

BUSINESS SCENARIOS COMPARISON

Fixed/nomadic/mobile vs. Fixed/nomadic

(10,000 €) (5,000 €) 0 € 5,000 € 10,000 € 15,000 € 20,000 € 25,000 € 30,000 € 35,000 €

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

NPV Fixed/nomadic/mobile Fixed/nomadic

Fixed/nomadic/mobile vs. Fixed/nomadic

  • 30%
  • 20%
  • 10%

0% 10% 20% 30% 40% 50%

Year 6 Year 7 Year 8 Year 9 Year 10

IRR Fixed/nomadic/mobile Fixed/nomadic

Fixed/Nomadic/Mobile Adoption Rate

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% Y e a r 1 Y e a r 3 Y e a r 5 Y e a r 7 Y e a r 9 Fixed Nomadic Mobile

Fixed/Nomadic Adoption Rate

0.00% 2.00% 4.00% 6.00% 8.00%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Fixed Nomadic

WiMAX delivers higher returns on investment for convergent integrated services

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 14

  • 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

Agenda

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 15

2.5 GHz vs 3.5 GHz

Parameters used

Channel Bandwidth 10 MHz AAS 4-BF Frame Ratio DL/UL 2:1 CPE type Handheld Frequency Reuse 1,1,3 FRS 1,3,3 3 Spectral Efficiency DL 1.81 bps/Hz Spectral Efficiency UL 0.96 bps/Hz Frequency Band 3.5 GHz 2.5 GHz Area per BS (Km2) 0.92 1.35 cell radius (Km) 0.60 0.72 + 47% + 21%

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 16

2.5 GHz vs 3.5 GHz

3.5 GHz 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%

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%

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 + 17% For coverage-limited deployments 2.5 GHz requires LESS CAPEX than 3.5 GHz

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 17

  • Beamforming shows less difference when comparing 2.5 GHz to 3.5 GHz. Another

argument in favour of Beamforming.

2.5 GHz vs 3.5 GHz

3.5 GHz 4-BF

BSs - BEST CHOICE (CAPEX) 92 92 92 92 100 Type of solution coverage coverage coverage coverage capacity 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 Channels solution - No. Channels/sector 1 1 2 4 4 Cost BSs - total cumulative 104% 104% 133% 192% 226%

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 18

2.5 GHz vs 3.5 GHz

NPV : 3.5 GHz vs 2.5 GHz (for 2x2 MIMO)

  • 20,000 €
  • 10,000 €

0 € 10,000 € 20,000 € 30,000 € 40,000 € Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 NPV 3.5 GHz 2.5 GHz

NPV : 3.5 GHz vs 2.5 GHz (for 4-BF)

  • 10,000 €
  • 5,000 €

0 € 5,000 € 10,000 € 15,000 € 20,000 € 25,000 € 30,000 € 35,000 € Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 NPV 3.5 GHz 2.5 GHz

The advantage of Beamforming for 3.5 GHz Generally 2.5 GHz brings a better return on investment than 3.5 GHz

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Workshop on Mobile WiMAX - Towards Ubiquitous Internet 2007/09/27 PT Comunicações 19

Questions?

Jorge Rodrigues WiMAX Programme Manager Network Evolution Strategy Department PT Comunicações Tel. + 351 21 500 82 09 email: jorge.p.rodrigues@telecom.pt